Alternative Visions - Argentina & the 2018 Crisis in Emerging Market Economies - 05.11.18
The show leads with updates on latest evidence of stock buybacks in the US, which will exceed $800b in 2018, with another $500b in dividend payouts. Discussion then follows on the growing share of junk and near junk (triple BBB rated) US corporate bonds issued in the US. How BBB bonds may play a role in the collapse of retail stores like Sears, JC Penneys, etc. in the next recession (in 2019). Rasmus then discusses the latest on the state of US trade negotiations with NAFTA and China. (Read Dr. Rasmus’ latest article, ‘Is the US-China Trade War for Real?’, on his blog, or PRN website, Counterpunch, Znet, Global Research and other public blogs for the real reasons behind the US-China trade conflict). What’s happening in Argentina and EM economies in general is the focus of the rest of the show. How US interest rate hikes and a rising US dollar are now precipitating another crisis in Argentina and emerging market economies in general. How Argentina’s current descent into deep recession, following Brazil’s, is the direct consequence of US interest rate and US dollar policies and the runup in dollarized debt issued by those economies in recent years. How the three largest economies of South America—Brazil, Argentina, Venezuela—are being wrecked by US policies, causing the collapse of their domestic currencies, capital flight, rate hikes, import inflation, and rapid contraction of their domestic economies.
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