Socio-Economics History Blog

Socio-Economics & History Commentary

What’s Really Behind US-Turkey Crisis?

  • RT America Published on Aug 17, 2018
    The crisis between the US and Turkey is worsening. Washington is threatening to impose further rounds of sanctions if Ankara does not release an American evangelical pastor held on suspicions of partaking in a failed 2016 coup attempt. But some are questioning if this fight between NATO allies is really about religious freedom as president trump claims. RT America’s Dan Cohen reports. For analysis, former Pentagon official Michael Maloof.

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August 18, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

Why Russia Will NOT Fall Victim to Emerging Markets Financial Crisis

  • The Duran Published on Aug 17, 2018
    The Duran – News in Review – Episode 81. The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris explain why, unlike the financial meltdown in Turkey, Russia is well equipped and properly prepared to weather the US sanctions storm… and may, in the end, come out of the latest emerging markets turmoil stronger and more independent from western petrodollar control than ever before.

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August 18, 2018 Posted by | Economics | , , , , , , , , , | Leave a comment

Trump Destroying ‘Old World Monetary Order’ By Signing Off on Tariffs, Sanctions

  • Trump Destroying ‘Old World Monetary Order’ By Signing Off on Tariffs, Sanctions
    by https://sputniknews.com/
    US President Donald Trump’s love of using tariffs and sanctions to get back at foreign governments is a game changer that is ultimately destroying “the old world monetary order,” economist Mark Frost told Sputnik.

    US Treasury Secretary Steven Mnuchin revealed during a Thursday meeting at the White House that the US was prepared to slap Turkey with additional sanctions if Turkish President Recep Tayyip Erdogan refused to release American pastor Andrew Brunson. This would be in addition to the US’ sanctions on two top officials in the Turkish Cabinet last week and tariffs imposed on Turkish steel and aluminum, which sent the Turkish lira on a bit of a tumble.

    Turkey and the US landed in an “it’s complicated” relationship status after Ankara refused to release Brunson, who is accused of backing the failed 2016 coup. Citing failing health, Turkish authorities have released Brunson from prison and placed him on house arrest.

    ​Frost told Sputnik Radio’s Fault Lines on Thursday that Trump is changing the game on how officials view the power of tariffs and sanctions.

    “What Trump has done is, he’s changed the game. Used to [be], the game was: let’s predict what other people are going to do,” Frost told hosts Garland Nixon and Lee Stranahan. “Now, people are saying, ‘We don’t know what people are going to do, so we’re going to take a different way of looking at how we expect currency movements and things like that to happen.'”

    “[W]hether you like it or whether you don’t like it, Trump has basically destroyed the old world monetary order of how the world works,” he added.

    read more.

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August 18, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

World Financial Markets Suffer as US-Turkey Ties Decline, Washington Vows to Keep Sanctions. Turkey Raises Tariffs on US as Court Rejects Pastor’s Appeal for Release

  • RT Published on Aug 16, 2018
    The US says economic sanctions against Turkey will remain in place even if Ankara releases an American pastor, whom it arrested on suspicion of terrorism offences. That’s after both sides imposed further tariffs on each other. Concerns over whether the situation has escalated too much, were raised at the US State Department. READ MORE: https://on.rt.com/9chm

  • Fox Business Published on Aug 15, 2018
    Kadina Group President Gary B. Smith and Investmark Advisory Group principal Mike Lee on how Turkey raised tariffs on U.S. imports and how a Turkish court rejected American pastor Andrew Brunson’s appeal for release.

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August 17, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

On The News Line – Dollar is Doomed

August 17, 2018 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

In Russia’s Footsteps? Turkey Dumps US Sovereign Debt as Political Rift Deepens

  • In Russia’s Footsteps? Turkey Dumps US Sovereign Debt as Political Rift Deepens
    by https://sputniknews.com/
    US Treasury reports previously showed that Russia has also drastically decreased its share in the US debt amid a deterioration of relations between the two countries and following a set of harsh sanctions imposed by Washington.

    In June 2018, Turkey significantly decreased its portion of US sovereign debt, having reduced its portfolio from $32.6 billion to $28.8 billion, according to the US Treasury report.  The trend in reducing US debt owned by Ankara started in November 2017, when the country held $61.2 billion worth of US debt.

    The reduction in Turkey’s possession of US sovereign debt is taking place amid a negative trend in bilateral relations between Ankara and Washington. This has been caused by among other things, the S-400 acquisition dispute, sanctions against Turkey’s officials over American pastor Andrew Brunson and tariffs the US imposed on Turkish steel (50%) and aluminum (20%).

    read more.

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August 16, 2018 Posted by | Economics | , , , , | 1 Comment

Turkey Crisis: Erdogan Vows to Boycott US Electronics

  • Al Jazeera English Published on Aug 14, 2018
    After days of heavy losses, the Turkish lira recovered some ground on Tuesday. But the row between Turkey and the United States seems to be escalating. President Recep Tayyip Erdogan has now called for a boycott of American electronic products, in response to what he says is an economic attack on his country. On Friday, Washington imposed new sanctions in response to the detention of an American pastor. The Turkish lira has fallen more than 40 percent against the US dollar this year. Al Jazeera’s Sinem Koseoglu reports from Istanbul.

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August 16, 2018 Posted by | Economics | , , , , | Leave a comment

Scarier More Dangerous Market Crisis Blowing Up Now – John Rubino

  • Scarier More Dangerous Market Crisis Blowing Up Now – John Rubino
    by Greg Hunter’s USAWatchdog.com
    Financial writer John Rubino says the currency crisis happening in Turkey is a stark reason for owning something a government can’t print more of at will. Rubino points out, “The function of gold and silver is to protect you against government mismanagement of your currency.   The emerging market countries (including Turkey) have screwed up their money. They borrowed a lot of U.S. dollars at low interest rates when the dollar was falling. They expected the dollar to keep falling and pay back their loans in ever cheaper dollars, but the dollar went the other way. So, now their loans are unpayable. Their currencies are blowing up, and you are seeing gold and silver rise in local currency terms. In other words, precious metals are protecting the citizens of those countries against financial mismanagement.”


    Rubino warns, “The crisis eventually works its way all the way to the middle, which is what happened after the housing bubble burst in 2007. It was just sub-prime mortgagees to begin with, which was not really a big deal, but eventually it became a near death experience for the entire global banking system. Since that time, instead of getting our financial houses in order around the world, we basically kept on borrowing money. Now, we have almost twice as much debt globally as we had in that debt driven global financial crisis. So, you can expect the next one . . . to be bigger, scarier and more dangerous. There are a lot of reasons to believe we are getting close, and one of those reasons is the emerging markets are starting to blow up.”

    Rubino also points out, “The “Crack-Up Boom” is the point at which everybody figures out it is the explicit policy of their government to make their currency worth less year after year after year, and they don’t want to hold the currency anymore. So, as soon as they get paid, they turn that money into real stuff. You see the price of real things spike because everybody is buying real stuff at whatever price they have to pay. That manifests as accelerating inflation, but it is really a loss of faith in the currency. I think that is the end game of this system. The central banks are bailing out so many different players with so much new currency that people figure out that is a bad deal for the holders of that currency. They start front-running the process, and the system breaks down. This could be the time that it happens because the amount of debt that would have to be bailed out by the central banks is immense. It was much bigger than the bailouts . . . in 2008, and that was multi-trillions of dollars. . . . The numbers could be so immense this time people might see it for what it is. People will figure it out, and that is the systematic destruction of these fiat currencies, and then all hell breaks loose.”

    According to Rubino, the long predicted so-called “debt reset” is getting much closer. How’s that going to work? Rubino explains, “It’s not clear that a currency reset (devaluation) will work unless it is coordinated. It’s not just the U.S. It could also be the European Central Bank, Bank of Japan and The Peoples Bank of China all making the announcement about their currency at the same time. If that happened, it would be really disruptive for a short time, but we would come out of it in reasonably good shape. That’s what we should be hoping for because there is no pain free option when you borrow too much money.”

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August 16, 2018 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

CONTAGION: Why Turkey Could Gobble Up the World by Lynette Zang

  • ITM Trading Streamed live 5 hours ago
    Turkey boasts the fourteenth largest economy and they’ve had easy access to global debt markets. If that debt were issued in terms of lira, no problem, it could be paid off with cheaper lira. Unfortunately, roughly $450bn of that debt was issued in terms of other fiat currencies, with USD denominated bonds making up a full third of that debt! Therefore, as the lira dies, that debt becomes impossible to repay. In terms of the USDs, spot gold has been hammered. In terms of lira, gold is at all-time highs. In reality, physical gold is simply providing its most important function, protecting wealth. If you want to know what to actually DO about all of this, that’s what we specialize in at ITM Trading. How do you protect your wealth for the next collapse and financial reset? Yes Gold and Silver, but what types? How much of each? What strategy? And what long term plan? If you’re asking these questions you’re already ahead of the game… We’re here to assist you, as it is our mission to safeguard the public from the inevitable downfall of the dollar.

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August 16, 2018 Posted by | Economics | , , , , , , , , , , , , , , , , , | Leave a comment

US-Turkey Get Deeper into Tariff Spat Over American Pastor Detention

  • RT Published on Aug 15, 2018
    Turkey has slapped tariff hikes on certain American products including cars and alcohol. The Turkish vice president called it a response to US attacks on Turkey’s economy. READ MORE: https://on.rt.com/9cf9

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August 16, 2018 Posted by | Economics, GeoPolitics | , , , , | Leave a comment

Russia Proposes Deal with Turkey to Ditch US Dollar for Lira-Ruble Trade Amid Currency Crisis

  • Russia Proposes Deal with Turkey to Ditch US Dollar for Lira-Ruble Trade Amid Currency Crisis
    by https://www.rt.com/
    Moscow is still interested in trading with Ankara using the Russian ruble and Turkish lira, according to the Kremlin. Both currencies have been falling against the greenback, with lira setting new record lows every day.

    “The issue of using national currencies in bilateral trade operations is a topic that has been raised by the Russian side for a long time and consistently at various levels, including at the top level,”
    said Kremlin spokesman Dmitry Peskov.


    “This is what we are striving for in our bilateral trade and economic relations, and what has been repeatedly mentioned at the bilateral Russian-Turkish talks,” he added.

    The lira plummeted to a record low of 7.20 against the dollar before strengthening to 6.16 on Wednesday amid mounting pressure from new US sanctions. Washington began to apply economic pressure on Ankara after the detention of American pastor Andrew Brunson in Turkey. Brunson is accused of aiding the failed military coup in 2016. He is facing 35 years in a Turkish prison.

    The US also introduced new sanctions against Russia last week over the poisoning of double-agent Sergei Skripal. Washington has refused to provide any proof to support allegations of Moscow’s responsibility for the incident. The Russian ruble fell to its lowest level since 2016 against the dollar following the news.

    According to the Kremlin spokesman, the financial and economic situation in Turkey was not yet affecting the implementation of joint projects with Russia.

    “I do not know that this situation may somehow affect the development of projects. Everything is proceeding as usual,”
     Peskov told reporters.

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August 15, 2018 Posted by | Economics | , , , , , | Leave a comment

Turkey’s Solution to Lira Crisis Will Be to Dedollarize Its Economy – Economist

  • Turkey’s Solution to Lira Crisis Will Be to Dedollarize Its Economy – Economist
    by https://sputniknews.com/
    Turkey’s currency continues to tumble amid escalating US pressure on Ankara. On Sunday, Finance Minister Berat Albayrak assured Turks that the government was preparing a plan of action to respond to the crisis. Speaking to Sputnik, geopolitics and finance analyst Tom Luongo explained some of the possible knock-on effects of the lira’s drop.

    Sputnik: Turkey has been struggling with the decline of the lira for a while, with fears that the currency could weaken even further. What’s your prognosis, and what do you make of hopes for a reversal of this trend?

    Tom Luongo:
     I think that when we get to a point where everybody’s talking about it and it’s front page news, we’re probably going to be pretty close to the bottom.


    We’re getting close to max pain, and I think that President Erdogan’s position here is going to be ‘If you’re going to take Turkey down, we’re going to take everybody with you’. Because when the lira dropped precipitously, we saw immediate reaction from the Financial Times, Zero Hedge and other places that this was creating contagion effects into Europe…

    read more.

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August 15, 2018 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

Erdogan Calls Lira’s Collapse ‘Currency Plot’ Amid Spat With Washington

  • Erdogan Calls Lira’s Collapse ‘Currency Plot’ Amid Spat With Washington
    by https://sputniknews.com/
    Earlier, in response to Washington’s move to double the steel and aluminum tariffs already in place against imports from Turkey, President Recep Tayyip Erdogan said in a speech that while the US has its dollars, “Turkey has its God.”

    Erdogan has called lira’s tumble a “currency plot,” noting that “those who move the currency think that they can destroy Turkey.” Earlier in the day, addressing supporters in the Turkish town of Unye, the president urged people in Turkey to sell dollars and euros to support Turkish lira. “It is wrong to dare bring Turkey to its knees through threats over a pastor,” Erdogan stressed.

    The Turkish President stated the recent US policy toward its strategic ally Ankara “annoyed, upset” the country. “I am calling on those in America again. Shame on you, shame on you. You are exchanging your strategic partner in NATO for a priest,” the president added.

    Following Washington’s announcement, the exchange rate of the Turkish lira reached the all-time low, collapsing by more than 16 percent to the US dollar.

    read more.

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August 15, 2018 Posted by | Economics, GeoPolitics | , , , , | Leave a comment

US is Seeking to Stab Turkey ‘in the Back’: Erdogan

August 14, 2018 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

Erdogan Calls Lira’s Collapse ‘Currency Plot’ Amid Spat With Washington

  • Erdogan Calls Lira’s Collapse ‘Currency Plot’ Amid Spat With Washington
    by https://sputniknews.com/
    Earlier, in response to Washington’s move to double the steel and aluminum tariffs already in place against imports from Turkey, President Recep Tayyip Erdogan said in a speech that while the US has its dollars, “Turkey has its God.”

    Erdogan has called lira’s tumble a “currency plot,” noting that “those who move the currency think that they can destroy Turkey.” Earlier in the day, addressing supporters in the Turkish town of Unye, the president urged people in Turkey to sell dollars and euros to support Turkish lira. “It is wrong to dare bring Turkey to its knees through threats over a pastor,” Erdogan stressed.

    The Turkish President stated the recent US policy toward its strategic ally Ankara “annoyed, upset” the country. “I am calling on those in America again. Shame on you, shame on you. You are exchanging your strategic partner in NATO for a priest,” the president added.

    Following Washington’s announcement, the exchange rate of the Turkish lira reached the all-time low, collapsing by more than 16 percent to the US dollar. Earlier, US President Donald Trump authorized a doubling of tariffs on steel and aluminum imports from Turkey.

    read more.

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August 14, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment