Nomura: China Unable To Afford Emerging Market Bail-Out As Domestic Economy Erodes

Since the financial crisis, central banks around the world have acted cautiously to nurse capital markets back to health. Their policies have not pleased everyone, but they did manage to prevent the crisis from escalating. Critics point to the increase in global debt (it hit an all-time high of $247 trillion during the first quarter of this year) since the crisis as evidence that low-interest rates and money printing have only kicked the can down the road, rather than solving structural problems within the economy. This increase in debt, they claim, will cause another crisis when interest rates return to…