By Michael Snyder: This time, the Federal Reserve has created a truly global problem. A
big chunk of the trillions of dollars that it pumped into the financial
system over the past several years has flowed into emerging markets.
But now that the Fed has decided to begin "the taper", investors see it
as a sign to pull the "hot money" out of emerging markets as rapidly as
possible. This is causing currencies to collapse and interest rates to
soar all over the planet. Argentina, Turkey, South Africa, Ukraine,
Chile, Indonesia, Venezuela, India, Brazil, Taiwan and Malaysia are just some of the emerging markets that have been hit hard so far. In fact, last week emerging
market currencies experienced the biggest decline that we have seen
since the financial crisis of 2008. And all of this chaos in emerging
markets is seriously spooking Wall Street as well. The Dow has fallen
nearly 500 points over the last two trading sessions alone. If the
Federal Reserve opts to taper even more in the coming days, this
currency crisis could rapidly turn into a complete and total currency
collapse.
A lot of Americans have always assumed that the U.S. dollar would be the first currency to collapse when the next great financial crisis happens. But actually, right now just the opposite is happening and it is causing chaos all over the planet.
A lot of Americans have always assumed that the U.S. dollar would be the first currency to collapse when the next great financial crisis happens. But actually, right now just the opposite is happening and it is causing chaos all over the planet.