Turkey says no to US, currency is down almost 15% in day

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SeekingAPolitic...
Turkey says no to US, currency is down almost 15% in day

https://markets.businessinsider.com/currencies/usd-try

Watch the graph above.

Erogand refuses US pressure, the lira collaspe.  Trump duoble steel and aluimum tariffs in tweet agaisnt Turkey.

WWWTT

Thanks for starting the thread!

This one has some history that's worthy of some research. And a bunch of different angles Kurdish peoples, NATO, European Union, Syria, Iran, Russia, Russian weapons, probably China, Shanghai Cooperation Organisation. And maybe another half dozen!

NDPP should be able to provide more?

NDPP

How Turkey's Currency Crisis Came To Pass

https://t.co/jLCvU0By7Z

"Here is a recap of how it came to this..."

NDPP

ECB Fears Contagion From Turkish Lira Collapse, Bank Stocks Plunge

https://www.nakedcapitalism.com/2018/08/ecb-fears-contagion-turkish-lira...

"Now even the ECB is beginning to fret about the political impact the plummeting Turkish lira may have on Eurozone banks that are heavily exposed to Turkey's economy via large amounts in loans - much of it in euros - through banks they acquired in Turkey. Given the plunge in the lira, companies have trouble servicing their euro loans and are beginning to default. And loans in local currency are plunging in value along with the currency. This is how the currency crisis in Turkey, which is turning into a debt crisis could set off contagion effects among banks in France, Spain and Italy - a risk we have been exposing for two years..."

iyraste1313

Thanks for this re the crisis in Turkey and contagion effects to Europe......

August 10 - Financial Times (Daniel Dombey): "Some analysts have long seen Turkey as a 'quantitative easing play' - a country that benefited from developed economies' huge asset purchase schemes. But as US and eurozone quantitative easing becomes history - at least for this economic cycle - the funds that Turkey needs are getting harder to come by. Those funds are far from negligible. An ABN Amro report on Thursday said investors were worried Turkey would not be able to finance its annual external financing requirement of about $218bn - which includes funds needed to maintain Turkish companies' foreign-denominated debt as well as the country's hefty current account deficit."

Unlike Greece and Argentina...Turkey will not bow to the dictates of the IMF to receive short term funding...

As I have been reporting in my other threads...the global financial system is coming apart...a 300 plus year year experiment is going bust.....debt globally is unserviceable....which means war.....

WWWTT

I found several links but this one gives a balanced (in my opinion) coverage info perspective

https://www.npr.org/2018/08/13/638162581/whats-the-deal-with-the-deepeni...

The US is definetely putting the boots to Turkey! I believe that Turkey is contemplating leaving NATO! And the EU isn't going to ever let Turkey join so why waste time with them? Another thing I have noticed is that Turkey has a high profile as a "dialogue partner" at the SCO and was invited to the last BRICS meeting in South Africa. According to Erdogan, BRICS are all for Turkey joining! But I can't see a NATO member in BRICS, but if Turkey parts ways with NATO???

https://www.rt.com/news/434685-turkey-join-brics-eu-nato/

NorthReport

The sooner President Erdoğan is gone the better. 

The Pastor will be released soon.

NorthReport

Turkey lira crisis: Six things you need to know

A breakdown of the events, causes and effects, as Turkey's currency collapses amid a diplomatic row with the US.

https://www.aljazeera.com/news/2018/08/turkey-lira-crisis-18081413260110...

NorthReport

Turkey lira: Ankara to boycott US electronic goods

https://www.bbc.co.uk/news/world-europe-45179673

Mr. Magoo Mr. Magoo's picture

Wow.  Turkey's currency has lost half of its value in only a year.

Maybe they should peg their currency to the Venezuelan "Sovereign Bolivar" if they want to prevent devaluation.

progressive17 progressive17's picture

Erdrogan is clearly using Mugabenomics. If the Z$ can go from Z$10 to $1 to Z$10 trillion to$1, who cares if the Turkish Lira does the same? Lucky for Erdrogan, he is not on the Euro, or it would be like Greece on steroids. 

As far as all the bwankers are concerned in the cultural capitals of Europe, the ECB can just bail them out as usual.

On any given day the world system could swallow a $1 trillion loss and no one would notice. This is peanuts.

WWWTT

Looks like China is going to provide some kind of minor help for Turkey

https://www.scmp.com/business/banking-finance/article/2159507/china-may-...

WWWTT

NorthReport wrote:

The sooner President Erdoğan is gone the better. 

The Pastor will be released soon.

From what I'm reading/hearing I wouldn't hold your breath. Turkey's president is very popular right now. The US is the perceived total bad guy.

As far as the Turkish charges of aiding a terror group against this religous figure, I don't know anything to make an opinion? But I do know that every country has their own laws and enforces as they see fit.

Michael Moriarity Michael Moriarity's picture

progressive17 wrote:

As far as all the bwankers are concerned in the cultural capitals of Europe, the ECB can just bail them out as usual.

Well, I thought the word "bankster" as a combination of banker and gangster was clever. But, wow, next to the banker and wanker combo, it's dim indeed.

Michael Moriarity Michael Moriarity's picture

WWWTT wrote:

The US is definetely putting the boots to Turkey! I believe that Turkey is contemplating leaving NATO! And the EU isn't going to ever let Turkey join so why waste time with them? Another thing I have noticed is that Turkey has a high profile as a "dialogue partner" at the SCO and was invited to the last BRICS meeting in South Africa. According to Erdogan, BRICS are all for Turkey joining! But I can't see a NATO member in BRICS, but if Turkey parts ways with NATO???

I think Turkey has a very real chance of leaving NATO and joining BRICS. Whether or not the CIA really did encourage the failed coup, Erdogan seems to believe that they did. He has spent the time since then purging the military, police, judiciary, press, and private sector of those he believes were against him. This puts him in a uniquely strong position to defy the U.S. and join an alternate power centre.

Of course, this is only happening because Trump is such an incompetent asshole that he forces Erdogan to consider other alternatives.

WWWTT

North Report posted a link upthread about the lira losing value. It touches on the Indian roopi dropping in value as well. After a bit of research, right now there's a number of emerging countries that are faced with there currencies devaluation.

Here's a list of them South Korea, Indonesia, Mexico, China, Russia, South Africa, Brazil, India, Venezuela, Turkey.

The main focus but not limited to is Asia.

Also apparently this has a lot to do with the strengthening US buck

WWWTT

Michael Moriarity wrote:

I think Turkey has a very real chance of leaving NATO and joining BRICS. Whether or not the CIA really did encourage the failed coup, Erdogan seems to believe that they did. He has spent the time since then purging the military, police, judiciary, press, and private sector of those he believes were against him. This puts him in a uniquely strong position to defy the U.S. and join an alternate power centre.

Of course, this is only happening because Trump is such an incompetent asshole that he forces Erdogan to consider other alternatives.

Looks like we agree on most of what's going on. But I still believe that Turkey is pretty much done with the European Union. And for a good 50 years I'm thinking. And that is the catalyst, not Trump (but who knows? I'll add more)

Here's a link (a little dated) simple and easy to read that pretty much puts the idea of Turkey membership in the coffin and 6' under

https://www.debatingeurope.eu/focus/infobox-arguments-for-and-against-tu...

Now you mention Trump's jack ass incompetence. Not so sure about this? Lots of people around the globe seem pissed off at him, but the US economy isn't hurting? If anything the US buck is surging ahead along with the economy. Trump is clearly a businessman and using his cut throat skills and levereging at every countries economy that the US trades with. Perhaps he's just riding an upturn cycle in their economy that would be there regardless even if the US president was nothing more than a pine cone or a blow up doll?

And if this is indeed the case, then Trump is making a lot of enemies that will come knocking at the US door when the US economy starts the slip end of the cycle.

NorthReport

Don't forget Canada or the UK either.

WWWTT wrote:

North Report posted a link upthread about the lira losing value. It touches on the Indian roopi dropping in value as well. After a bit of research, right now there's a number of emerging countries that are faced with there currencies devaluation.

Here's a list of them South Korea, Indonesia, Mexico, China, Russia, South Africa, Brazil, India, Venezuela, Turkey.

The main focus but not limited to is Asia.

Also apparently this has a lot to do with the strengthening US buck

Michael Moriarity Michael Moriarity's picture

WWWTT wrote:

Looks like we agree on most of what's going on. But I still believe that Turkey is pretty much done with the European Union. And for a good 50 years I'm thinking. And that is the catalyst, not Trump (but who knows? I'll add more)

Here's a link (a little dated) simple and easy to read that pretty much puts the idea of Turkey membership in the coffin and 6' under

I agree that the idea of Turkish membership in the EU is dead. The reason it didn't go through decades ago was, in my opinion, european white supremacist and anti-islamic sentiment.

WWWTT

I'm going to keep an open mind here MM. I have before in the past believed your view about the EU being racist and Islamaphobic towards Turkey and their admitance into the EU.

But really MM, issues like Brexit and Greece fiasco nearly ripped apart the EU! If a fiasco with one of the smaller nations like Greece can jeopardize the very existence of the European Union, then a much larger country like Turkey with much more risk/potential for upending would surely throw the EU and their relating markets and confidence in those markets into freefall chaos!

From my understanding, one of the EU mantra's has always been taking micro baby steps in progressing the unification process.

The EU can only expand in so many physical directions (meaning north south east west) It's already gone as far North (Iceland, Noreway?) and West. Going East has been where their expansion focus has been because of all the smaller former eastern block nations are smaller and more willing to bend to the will of the EU making them ideal candidates.

So far I can only believe that the cultural/political gap between the EU and North Africa and a big chunk if not the rest of the geography moving east is far too great/risky for the EU to seriously consider.

The emergence of BRICS and the SCO has some unique distinct alternative potentials that Turkey appears very interested in!

BRICS and the SCO are very much more diverse and do not mandate that all the members become as closely intertwined as the EU. Each nation keeps their autonomy.  But the chance for benefits are greatly less vs the EU

And currently there is no Muslim nation in BRICS. I believe that India will block/veto Bangladesh and Pakistan, but if they are open to Turkey, I can see Turkey joining! 

If Turkey joins and there is a rebound in the Turkish financial prospects/economy, for sure Indonesia will jump in! Followed by Iran, latter Pakistan Bangladesh? Then there's other countries as well that do not have Muslim majorities, not sure where Nigeria fits in this, but I'm sure Nigeria must be on the potential BRICS expansion list.

Keep in mind that the Trump attack on the Turkish economy comes after the clear signals from Turkey that they could be leaving NATO and joining BRICS and the SCO. Pretty much like saying "well if you're going to leave us then we're going to fuck you up as much as we can just to piss you off". Just like an ugly divorce or break up

NDPP

The Global Implications of the Turkish Lira Crisis

https://www.wsws.org/en/articles/2018/08/16/pers-a16.html

"...In fact, the very measures undertaken by the governments and central banks of the major capitalist countries in response to the meltdown have exacerbated them. This has set the stage for the eruption of another financial disaster, potentially even more significant than that of a decade ago..."

NDPP

Trump Just Triggered A New Financial Crisis. Here's Why

https://on.rt.com/9cku

"Trump's attack on the Turkish lira, combined with recent Federal Reserve moves to choke off dollar supply, is pushing the world towards a re-run of the 1997 currency crisis. This may well be the whole point. Turkey's currency was already struggling, but these new sanctions are the straw that broke the camel's back. The effects are already being felt far beyond Turkey's borders..."

Mr. Magoo Mr. Magoo's picture

Quote:
The Global Implications of the Turkish Lira Crisis

Turkey isn't really a domino.  But if your Christmas cake recipe calls for dates, buy them now before they're 50 cents more expensive.

WWWTT

Mr. Magoo wrote:

Quote:
The Global Implications of the Turkish Lira Crisis

Turkey isn't really a domino.  But if your Christmas cake recipe calls for dates, buy them now before they're 50 cents more expensive.

Hi Mr Magoo, I got a question that's off topic. But how many beers have you had so far tonight?

NDPP

Fisk: A US Trade War With Turkey Over A Little Pastor? Don't Believe A Word of It.

http://www.informationclearinghouse.info/50052.htm

"So you can see how things are lining up in the Middle East right now..."