Thursday, August 30, 2012
Nowhere to hide
With the US current account deficits already slowing down, no country can expect to increase its forex reserves. Now the three major South-east Asian economies of Indonesia, Thailand and Malaysia have started running down their reserves while Asia's two major powers, China and India are seeing their reserves increasing at a slower pace. China is the worst of the lot, with all sectors of the economy heavily in debt.
If you think that you can sleep soundly after moving your investment to these countries, you'd better put on a pair of good earmuffs. There are still many shoes waiting to drop.