“In our view this could be even more serious than the taper tantrum in 2013,” said Stephen Jen from Eurizon SLJ Capital.

Mr Jen said higher bond yields and borrowing costs may be appropriate for America in its current particular circumstances, but they are toxic for most emerging markets still struggling with the fall-out from debt bubbles.

“The US is out of synch with the rest of the world, and under Trump there will now be an ‘America First’ policy so they won’t to care what happens to anybody else,” he said.

The core problem is that global finance is more dollarized today than at any time in history, with $10 trillion of dollar debt trading globally outside US jurisdiction and beyond full control, up fivefold since 2002.

Aggregate debt ratios are at all-time high of 225pc of global GDP, with $152 trillion of outstanding liabilities. Nobody knows how much dollar tightening the world can endure. There is no blueprint. The new system has never been stress-tested.

The Bank for International Settlements says a complex web of global hedge contracts automatically forces banks in Europe and Japan to shrink their balance sheets when the dollar rises, cutting off oxygen for emerging markets and debtor regions. This invisible process is known as the global “dollar shortage” and can be extremely powerful.

Unlike previous spasms of trouble in emerging markets, this episode has not been accompanied so far by a general flight from risky assets. Wall Street is soaring, and European equities are holding steady.

But that may be the lull before the full storm. What is clear is that pressure is building across developing Asia, Latin America, the Middle East, Africa, and even parts of Eastern Europe.

Turkey was forced to raise rates to 8pc yesterday but failed to stem the slide in the lira, which has fallen 10pc since Mr Trump’s election. The country is the weakest link among the big emerging market states, under mounting trouble as the Erdogan regime eviscerates Turkish democracy and burns its bridges with the West.

Political risk has exposed the festering weakness in its economic model: a current account deficit of 5pc of GDP; short-term external debt above 108pc of foreign reserves; and a banking system funded heavily in dollars.

Mexico raised rates last week, while Malaysia, Brazil, and others have abandoned expected cuts. South Africa’s central bank warned on Thursday that rising US yields were leading to a sudden stop in capital flows to emerging markets that is all too like the trauma of 2013.

China is selling US Treasuries at an accelerating rate as it runs down its reserves to defend the yuan. It offloaded $28bn in September - the most recent official figures available - and perhaps a further $14bn through proxies registered in Belgium.