Turkish lira banknotes are pictured at a currency exchange office in Istanbul, Turkey, Aug. 13, 2018.
Reuters: Erdogan has limited options to save Turkey from financial crisis
ISTANBUL (Reuters) - After 15 years in power as prime minister and president, Tayyip Erdogan faced down a weak opposition in June elections that swept away any checks and balances to the unchallenged rule he wanted. In Turkey he appears lord of all he surveys.
But his victory could become a poisoned chalice if he cannot resolve an angry feud with President Donald Trump that is pushing his country towards financial crisis.
Erdogan has limited options. Most involve a loss of face or a loss of sovereignty for which he alone would be blamed, having successfully marginalized not just a divided opposition but his own Justice and Development Party (AKP).
Read more ....
Update: Turkish Inflation Soars, Fueling Fears of Economic Crisis (VOA).
WNU Editor: Turkey will need to refinance tens of billions of dollars in the coming months. The problem is that even if Ankara could cobble together a number of governments and banks to assist the Turkish treasury, it will be at sky-high interest rates that will only postpone the inevitable. Turkish President Erdogan will need to make up with President Trump, and to convince the White House to lift sanctions. But this may not be enough. Turkey has borrowed too much, and current government economic policy is not encouraging.
Erdogan may be encouraged by Maduro of Venezuela and his staying power despite the economic pillage he and his cronies have committed.
ReplyDeleteTurkey, unlike Maduro, has not yet hocked his country to China and Russia. Turkey has much to offer Russia, China, Qatar and Iran in terms of geopolitics so I expect significant funding will flow to Turkey in exchange for Turkey turning its coat from West to East. I expect a Maduro outcome, but that will be years down the road.
Think of a new order in the Middle East with Qatar, Turkey, Syria and Iran anchoring the Middle East with Russia and China replacing the US as Qatar and Turkey's allies.
ReplyDeleteI wonder what the Turkish man on the street has to say about all this?
You will only hear about them if they are anti trump...then they'll get media exposure like crazy. And CNN will report on the plight of Erdogan, the misunderstood Messiah, the backbone of Eurasia, this poor poor soul. And he'll get 10 easy questions per interview and if he sticks to the script and call Trump a bigot, racist, fool in at least 5 of his answers, there won't be any follow up questions. Oh and no questions about torture - certainly not with a follow up question. ..no no no :)
Delete