“The saving agent for the global recession that China proved to be back in 2009 is not only out of ‘ammo’ but is actively looking to slow down as it battles 6.4% domestic inflation and is attempting to leak air slowly from sundry bubbles floating all over its market skies. None of that is stopping the ever-optimistic Chin-dia preaching teams from continuing to disseminate the gospel of the “insatiable.”

This kind of pontificating is taking place even as several key indicators in certain emerging markets are flashing shades of crimson. India’s and Brazil’s yield curves have just gone upside-down and some keep wearing blinders in order to not notice the obvious. The inversion of the yield curve has (reliably, since the 50s) been a precursor to an official economic contraction. Emerging markets might soon turn to emerg-ency markets but the American drama is keeping investors too distracted to actually notice and run.”
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