Dec. 11—Some 90% of the debt of developing countries (often degraded with the term “emerging markets” or just “EMs”) is denominated in dollars and euros—overwhelmingly in dollars. The U.S. dollar is overvalued due to 20 years’ lack of real, and 12 years’ lack even of nominal productivity growth. U.S. technological productivity growth has been below 1%/year on average in this century, and even simple labor productivity growth has averaged only 1-2%/year since the 2008 financial crash. This is a far cry from productivity growth during this century in, not only China, but also India, for example.
