Could Bitcoin Replace the Dollar?
People continue to ask if Bitcoin will replace the dollar. They believe that the recent surge in Bitcoin indicates that it will topple the USD as the world’s reserve currency, [...]
QUESTION: Mr. Armstrong; Just to clarify, a continued rate hike in dollars will send Emerging Market debt into chaos and possibly default. Is this both public and private?
Thank you.
You are a voice in the wilderness
PK
ANSWER: Oh yes. Both public and private emerging market debt raised money in dollars. A 2% increase in interest rates could spark a sharp rise in the proportion of emerging market corporate debt issues at risk of default. This is true especially in Brazil, Turkey, and India.