{"id":37233,"date":"2018-09-01T10:38:08","date_gmt":"2018-09-01T15:38:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37233"},"modified":"2018-09-01T10:38:08","modified_gmt":"2018-09-01T15:38:08","slug":"tipping-point-these-charts-show-some-of-the-worst-currencies-of-2018","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37233","title":{"rendered":"\u2018Tipping Point\u2019: These Charts Show Some of The Worst Currencies Of 2018"},"content":{"rendered":"
\"\"<\/div>\n

\u2018Tipping Point\u2019: These Charts Show Some of The Worst Currencies Of 2018<\/a><\/h3>\n

Foreign currencies \u2013 especially the Emerging Markets<\/em> \u2013 are having one of their worst years on record.<\/p>\n

And investor anxieties aren\u2019t easing up. . .<\/p>\n

I wrote two weeks ago about the strong dollar and the chaos<\/a> it\u2019s creating for the Emerging Markets. But many don\u2019t realize just how bad things have gotten. And it\u2019s all thanks to the Federal Reserve\u2019s tightening and quantitative tightening.<\/p>\n

For starters, let\u2019s just take a look at some of the worse performing currencies this year. . .<\/p>\n

First \u2013 The Turkish Lira <\/strong><\/h4>\n

I wrote a very bearish assessment of Turkey<\/a> and their currency \u2013 the Lira \u2013 back in early March.<\/p>\n

And since then, the crisis in Turkey has dominated the news stream.<\/p>\n

A big reason for Turkey\u2019s currency crisis stems from the fact that their external debt burden has soared over the last few years. This means that Turkey borrowed significant amounts of U.S. dollar denominated debts (and euros).<\/p>\n

Remember: when the dollar gets stronger<\/em> \u2013 and when the Federal Reserve raises rates \u2013 the external debt burden gets harder to service.<\/p>\n

And because the country has had a plaguing inflation problem over the last couple of years \u2013 this caused the Lira to slowly depreciate on foreign exchange markets.<\/p>\n

But due to the U.S. dollar\u2019s shocking rally since March 2018, the Lira really<\/em> started to collapse. For instance, more than a third<\/em> of its value got wiped out in just the last 30 days.<\/p>\n

\"\"<\/p>\n

Making matters worse \u2013 the Turkish Central Bank Deputy Governor is rumored to resign. And Moody\u2019s just downgraded the credit ratings<\/a> of 20 Turkish financial institutions \u2013 such as banks.<\/p>\n

Turkey\u2019s increasingly fragile economy and currency signals that things are still far from over. . .<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

\u2018Tipping Point\u2019: These Charts Show Some of The Worst Currencies Of 2018 Foreign currencies \u2013 especially the Emerging Markets \u2013 are having one of their worst years on record. And investor anxieties aren\u2019t easing up. . . I wrote two weeks ago about the strong dollar and the chaos it\u2019s creating for the Emerging Markets. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[19913,951,541,19915,9740,818],"class_list":["post-37233","post","type-post","status-publish","format-standard","hentry","category-economics","tag-adem-tumerkan","tag-currency","tag-moodys","tag-palisade-research","tag-tipping-points","tag-turkey"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37233"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37233\/revisions"}],"predecessor-version":[{"id":37234,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37233\/revisions\/37234"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}