Ponzi Time: Who Blinks First?

In Ponzi World,  ongoing liquidity is a proxy for solvency, yet global liquidity has reversed. Without it, default is inevitable.

Emerging Market Dollar Debt is 175% of GDP and the dollar just rose 17%

Relative to 1xGDP, borrowing costs just rose 30%. That increased debt service cost robs the rest of the economy of demand, hence why the Emerging Markets are weakening faster than developed nations, so far. It's also why oil is collapsing i.e. because Emerging Markets are the marginal consumer of oil and all other commodities - the 'growth' segment.

Since October, three of the four major carry currencies have reversed

The dollar has reversed sharply and the Yen has rolled over (below). The Swiss Franc just did its part to monkey hammer carry traders. The Euro is trying to find a bottom here because speculators already front-ran the ECB to the tune of $800 billion to buy European Ponzi bonds, now featuring yields below 1%. 

Yen Dow: A reversal of fortune:

Global liquidity has reversed and liquidity has been a proxy for solvency. Without ongoing liquidity, debts can't be serviced.

Fear is rising.