The United States' twin deficits are easily financed as long as emerging risk is high

The United States will again have twin deficits: a fiscal deficit leading to an increased external deficit. Will these twin deficits be hard to finance, which would lead to a depreciation of the dollar and a rise in US interest rates? As long as the emerging risk perceived by investors is high, they withdraw capital from emerging countries and mostly bring this capital to the United States, which makes it possible to finance the twin deficits without any problem. For a financing problem to occur in the United States, therefore, investors would have to become optimistic again regarding emerging countries and transfer capital from the United States back to these countries . Recent developments (Brazil, Turkey, protectionist risk) do not indicate that this is happening .