The potentially widening EM crisis and Turkey’s alliance with Russia and China

I don't think we are at a point yet where what's happening in Turkey can be called an emerging markets crisis. Right now, it's mostly about Turkey, though there are signs of contagion via currency effects and concerns about creditors of Turkish debtors.

But, unfortunately, the Turkish crisis has multiple dimensions from which contagion can occur. And so, the worry is that what happens in Turkey is a harbinger of worse to come. That was my thesis a month ago. So let's go through some of the latest issues.
That sucking sound is US dollar liquidity
First, let me say that this crisis has been building for some time. I actually flagged Turkey as "the country to watch in 2017" 21 months ago because of the deteriorating fundamentals there. But it's taken a long time for the poor fundamentals to ...

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