Overall, the bulk of the world’s developed banks are now out of danger. The DXY is telling us this, as are loan-to-deposit ratios. The danger has now clearly moved to the developing world, led by Brazil, Russia, Chile, and to a much lesser extent, China (it is entirely self-funding, has a solid infrastructure and has rich central coffers). The global credit cycle is a lunar move with the high tide now in the US and the low tide now in South America, Russia and China.