All things connected with emerging markets will become toxic waste. The emerging-market liquidity squeeze will intensify ferociously and, much to the shock of most commentators, recessions will unfold in the emerging-market universe.

Amid recent chaos, few realize that the next phase of de-leveraging has only just started. A key pump for global markets and emerging economies — global foreign-exchange reserve growth — is only now beginning to reverse. All things emerging-market related will crumble as the great unwind moves into a new phase.

Albert Edwards, global strategist at Societe Generale SA in London.