by Axel G. Merk, Gold Seek:
From the bully pulpits in São Paulo to the blogosphere in cyberspace, the Fed is blamed for the turmoil in Emerging Markets (EM). That’s a bit like blaming McDonald’s for obesity. Blaming others won’t fix the problems in EM economies, it won’t fix investors’ portfolios and it is an unlikely way to lose weight. Investors and policy makers need to wake up and realize that they are in charge of their own destiny. Let us explain:
The Blame Game
Talking to politicians around the world, they have a few things in common. One of them is that it’s always somebody else’s fault. However, few tears should be shed for countries that have missed the opportunity to take advantage of the good years to engage in structural reforms to make their economies (and, as a result, their markets) more resilient against the whims of the Federal Reserve.
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