Monies flow out of EMs and that is a big issue but you can't simplify an extremely complex issue as currency fluctuations and money flows.
As far as sovereign debt costing more for sovereign governments unless the debt were held in USD it wouldn't but the cost of new money might.
Remember this: the FED is raising rates at a time when deflation is, in general, driving rates down. That is what is contemplated. Of course if raising rates would break up China US rates would be 5% but as I've said for years, the global economic structure is in a slow train wreck but I feel this particular period is pivotal.
If the FED can pull this off I'd expect another rate hike Q1 '17
