Growing competition for global savings
All that means that the U.S. is likely to keep attracting an increasing share of international capital flows.
Emerging markets should also note that the euro area will be another strong competitor for world savings. In fact, the smart money has been there for some time, but the euro area's early stages of recovery still offer great investment opportunities in bonds and equities.
At the moment, the monetary union is continuing its painful process of fiscal consolidation, and, unlike in the United States, credit channels are still not working properly because the banking system is accumulating government bonds to rebuild its capital base.
(Read more: Emerging market opportunity in long term: Blankfein)
The euro area banks are also expecting stringent asset quality reviews (i.e., "stress tests") in the coming months and are not eager to acquire risky credit claims on businesses and households.
That partly explains the slow pace of the euro area recovery. But the European Central Bank (ECB) continues to provide ample liquidity, exports are growing and, to an obvious delight of German austerity advocates, falling production costs are bringing back foreign direct investments and previously outsourced businesses to erstwhile Mediterranean deadbeats.
Spanish sporting goods company Priviet is now profitably producing at home and Spain's largest retailers have turned to their domestic suppliers for lower costs and shorter delivery times.
Structural reforms in many euro area countries are also offering flexible employment outlets to people whose welfare cuts are forcing them back into the labor market. No wonder the German Finance Minister Wolfgang Schäuble had a rare word of praise last week for the euro area's fiscal and structural adjustment.
Clearly, the developing countries will now be facing a tougher competition for global capital flows. They will have to show sound economic management and a stable political and regulatory framework to attract direct and portfolio investments.
(Read more: Could emerging markets pay the price if Abenomics fails?)
Asia, in particular, will have to step back from the brink of military confrontations and civil strife. Asia's political meddling and electioneering on the back of key issues of economic policy will also take their toll. It would, therefore, be preposterous to blame the Fed for the havoc the arms race and political unrest are playing with Asian economies.