Article Review #4: Global Deflation Alert: Hidden EM Debts To China Could Be Immense

Surprisingly, this week's article was relatively short compared to previous times. This article, written by Carmen Reinhart, is discussing the hidden debts from the merging countries and how they can have a vulnerable effect at a global level. For starters, the article mentions how the conversation headlines at the International Monetary Fund’s annual meetings have changed from the recovery from the 2008 financial crisis to the potential financial crisis within the emerging nations, such as China. China was mentioned in this article to serve as an example of how a potential economic crisis can lead to negative effects towards others, such as the US, Brazil, or Argentina. They can create international damage since the major funding of their projects were made through the US dollar currency, thus lowering the dollar value if a crisis happened. By lowering the value of the dollar, that would decrease the revenue collected by the US government and would reduce our economic growth and power. Another important element about the article was the uncertainty of how to find the hidden debts within the records. The main problem that arises when discussing hidden debts, is the unavailability to quickly access exact figures of money trading since the records at major-level international organizations keep no track on this business.

Overall, the article was fairly easy to read and understand since it was short and it didn't contain many high-economic vocabulary words.