Turkey is a 'target of economic war', Erdogan says

[rooster59]

Turkey is a 'target of economic war', Erdogan says

By Humeyra Pamuk

 

Turkish President Tayyip Erdogan addresses his supporters in Bayburt, Turkey August 10, 2018. Murat Kula/Presidential Palace/Handout via REUTERS

 

ISTANBUL (Reuters) - President Tayyip Erdogan denied on Saturday that Turkey is in a currency crisis, dismissing a plunge in the lira as 'fluctuations' which have nothing to do with economic fundamentals.

 

Speaking after U.S. President Donald Trump doubled tariffs on Turkish steel and aluminium imports, Erdogan described Friday's 18 percent fall in the lira to a record low as the 'missiles' of an economic war waged against Turkey.

 

Erdogan said those who plotted against Turkey in a failed coup attempt in July 2016 were now trying to target the country through its economy, and pledged to fight back. He did not name any countries.

 

"Those who can't compete with us on the ground have brought online fictional currency plots that have nothing to with the realities of our country, production and real economy," Erdogan told a provincial meeting of his AK Party in the Black Sea coastal town of Rize.

 

"The country is neither crumbling, nor being destroyed or bankrupt or in a crisis," he said, and added that the way out of the 'currency plot' was to boost production and 'minimise interest rates'.

 

The Turkish lira has lost about 40 percent this year alone, largely over worries about Erdogan's influence over the economy, his repeated calls for lower interest rates in the face of high inflation and deteriorating ties with the United States.

 

The two governments have been at odds over a wide range of topics - from diverging interests in Syria, to Turkey's ambition to buy Russian defence systems, and the case of evangelical pastor Andrew Brunson, who is on trial in Turkey on terrorism charges.

 

Erdogan also appeared to allude to a 'deadline' for handing over Brunson, although he did not name the United States as having set any such deadline or say precisely when it might have expired. "(They are) threatening, saying you will send (him) until 6 pm ... This is not some random country. This is Turkey," he said.

 

A Turkish delegation visited Washington for talks this week but left with no signs of a breakthrough.

 

After almost 20 months in a Turkish jail, Brunson was moved to house arrest in July by a court. Since then Trump and his vice president Mike Pence have repeatedly called for his release while Ankara said the decision was up to the courts.

 

Washington in response sanctioned two Turkish ministers and Trump on Friday announced it was doubling the tariffs on steel and aluminium imports from Turkey, saying relations with Ankara were "not good at this time".

 

LANGUAGE OF THREATS

 

An important emerging market, Turkey borders Iran, Iraq and Syria and has been mostly pro-Western for decades. Financial upheaval risks further destabilising an already volatile region.

 

A meeting on Friday unveiling a new economic approach by Turkey's finance minister Berat Albayrak, Erdogan's son-in-law, did little to offer support for the free-falling lira as investors sought concrete steps such as an interest rate increase to restore confidence.

 

"I am asking you. What possible reason could there be behind the lira which was at 2.8 against dollar in July 15, 2016 to slide below 6 yesterday? During this period, Turkey has set records in its exports, production and employment," Erdogan said.

 

He repeated a long-standing plan to shift to trading in national currencies and said Turkey was preparing for such a step with Russia, China and Ukraine.

 

He also repeated his call to Turks to sell their dollar and euro savings to shore up the lira. "If there are dollars under your pillow, take these out... Immediately give these to the banks and convert to Turkish lira and by doing this, we fight this war of independence and the future," he said.

 

He also said it was a pity that Washington chose Brunson over Turkey, its partner in NATO, and in an opinion piece in the New York Times, he warned the United States that Ankara had other alternatives as allies.

 

Washington "must give up the misguided notion that our relationship can be asymmetrical", he said in the opinion piece.

 

Turkey, home to the Incirlik air base which is used by U.S. forces in the Middle East, has been a NATO member since the 1950s. It is host to a critical part of the Western alliance's missile defence system against Iran.

 

In a separate opinion piece in the pro-government newspaper Daily Sabah, Erdogan's spokesman Ibrahim Kalin said Turkey's efforts to solve the crisis with diplomatic methods had been dismissed by the Trump administration, warning that "the U.S. runs the risk of losing Turkey" as an ally.

 

"The entire Turkish public is against U.S. policies that disregard Turkey's legitimate security demands. Threats, sanctions and bullying against Turkey will not work," he said.

 

 

-- © Copyright Reuters 2018-08-12

[pegman]

Brunson is likely CIA or maybe not. With the way the American gov has interfered in other countries since ww2 better to err that they are up to no good. Better odds.

[ezzra]

Turkey's Tayyip Erdogan,a megalomaniac and a tyrant in his own right, picked a fight with Trupp, even bigger maglomaic than him, and so far he's sourly losing the fight with the turkish lira losing 40% of it's value this year and the fight just began...

[canuckamuck]

17 minutes ago, pegman said:

Brunson is likely CIA or maybe not. With the way the American gov has interfered in other countries since ww2 better to err that they are up to no good. Better odds.

Nearly a sure thing.

[Bluespunk]

49 minutes ago, rooster59 said:

The country is neither crumbling, nor being destroyed or bankrupt or in a crisis," he said,

It is ruled by a dictator with no tolerance for dissent though.

[sammieuk1]

There is no Lira crisis for him his shoeboxes of cash were in dollars and euros . But on the bright side the pound has risen sharply against it in the battle of the junk currency ?

[Topdoc]

Keep in mind that the Eastern Roman Empire (Byzantine Empire) with Constantinople as its capital, was able to survive for centuries after the fall of Rome!

[canopus1969]

1 hour ago, Bluespunk said:

It is ruled by a dictator with no tolerance for dissent though.

Can think of another country that fits that description 

[Thian]

1 hour ago, sammieuk1 said:

There is no Lira crisis for him his shoeboxes of cash were in dollars and euros . But on the bright side the pound has risen sharply against it in the battle of the junk currency ?

The money changers even closed their doors, they don't have enough lira's...

 

I wonder how the tourists can change now..

[klauskunkel]

3 hours ago, rooster59 said:

He also repeated his call to Turks to sell their dollar and euro savings to shore up the lira. "If there are dollars under your pillow, take these out... Immediately give these to the banks and convert to Turkish lira and by doing this, we fight this war of independence and the future," he said.

Lead by example...

[BuaBS]

Make it go down like Venezuela .

[pegman]

With these favourable exchange rates it might be worth checking out a vacation there. I can see the Russians flocking there again.

[simple1]

1 hour ago, BuaBS said:

Make it go down like Venezuela .

To whose benefit? Not for NATO / EU, not for ME stability, but potentially for Russia. Comes across Trump is an empty barrel for new initiatives on the diplomatic front, rather more like an ignoramus.

[connda]

5 hours ago, rooster59 said:

Turkey is a 'target of economic war', Erdogan says

That's true.  Sort of the natural result of tying your economy to that of a mega-state and becoming it's supplicant. 

 

[sammieuk1]

29 minutes ago, pegman said:

With these favourable exchange rates it might be worth checking out a vacation there. I can see the Russians flocking there again.

Having spent a very long time there I can safely say there will be no bonanza on the exchange front dollars are the real currency the lira is for fools as I found out! The Russians stopped going when they had a plane shot down and Putin halted all passenger flights. as for the country with sultan erdog at the helm probably war after all if you can fake your own coup and get away with it your invicible?

[Srikcir]

6 hours ago, rooster59 said:

Trump on Friday announced it was doubling the tariffs on steel and aluminium imports from Turkey, saying relations with Ankara were "not good at this time".

Having "bad relations" with a country is not a legitimate reason under WTO rules to unilaterally impose import tariffs against another WTO member. Instead Trump has again relied on an exemption to the rule - national security. Once more against another NATO member for that matter!

• "In a statement, deputy White House press secretary Lindsay Walters said, "Section 232 tariffs are imposed on imports from particular countries whose exports threaten to impair national security as defined in Section 232, independent of negotiations on trade or any other matter."
• "Walters did not offer any explanation as to how US national security is threatened by steel and aluminum imports from Turkey, which hosts a major US military base." (my italics)

https://edition.cnn.com/2018/08/10/politics/trump-tariffs-turkey-trade-steel-aluminum/index.html

 

Unlike some of Trump's targets for import tariffs, Turkey does not have a positive trade balance with the US. In 2016 Turkey imported $10.9 billion from the US and exported $6.6 billion to the US for a negative trade balance of about $4.2 billion.

https://wits.worldbank.org/CountryProfile/en/Country/TUR/Year/LTST/TradeFlow/EXPIMP/Partner/by-country

What is clear is that Trump's import tariffs against Turkey are politically-based and not about unfair trade competition or trade imbalance.

[puipuitom]

2 hours ago, simple1 said:

To whose benefit? Not for NATO / EU, not for ME stability, but potentially for Russia. Comes across Trump is an empty barrel for new initiatives on the diplomatic front, rather more like an ignoramus.

Russia has enough economic problems of its own to support another megalomanic dictator, with zero knowledge how economy works. And be sure Purtin is again pointed at the fact the Russsian economy depends on oil & gas exports. When these world proces go down, he is per direct in problems 

[The Theory]

Time to buy some Lira. ?

Turkey will be a great vacation spot with a new president. ?

[marqus12]

"He repeated a long-standing plan to shift to trading in national currencies

and said Turkey was preparing for such a step with Russia, China and Ukraine."

 

USA again attack an independent country. The US budget deficit is 690 b. YTD

so if they lose the possibility of pushing to other countries their crappy currency

then the USA will be a complete bankrupt .

[dirtynomad]

what is needed is a worldwide coalition to form against this usa.

 

 

[simple1]

1 hour ago, puipuitom said:

Russia has enough economic problems of its own to support another megalomanic dictator, with zero knowledge how economy works. And be sure Purtin is again pointed at the fact the Russsian economy depends on oil & gas exports. When these world proces go down, he is per direct in problems 

Leaders of Turkey and Russia are meeting tomorrow, Wait and see what if any agreement/s are announced for trade / defense matters

[Get Real]

10 hours ago, rooster59 said:

President Tayyip Erdogan denied on Saturday that Turkey is in a currency crisis

It´s settled then. Crisis it is!

[Cake Monster]

Many EU, and Soviet Bloc travelers will now forego their holiday in Thailand for a vacation with much more favourable exchange rates, and cheaper air fares.

[JemJem]

It is almost certain that things will go from bad to worse for Turkey. As you can guess, nowadays there are many articles on that in various publications. Here is one of them :

 

https://www.theguardian.com/world/2018/aug/12/turkey-crisis-widen-and-options-running-out-erdogan?CMP=twt_gu

[Tug]

Kinda makes me wonder what game trump is up to he could care less about 1 guy he is A sucking up to his base or B Putin issued other orders for what I don’t know

[candide]

The crisis was expected anyway. That's why Erdogan quickly hold anticipated elections before the economic situation would worsen.

[tomacht8]

I thought Trumpy is busy with his Star Wars diarrhea.

Erdogan is not good.

Where are all these journalists?

https://en.m.wikipedia.org/wiki/List_of_arrested_journalists_in_Turkey

And all the other people from the former modern turkey?

https://ahvalnews6.com/turkey/turkeys-new-prisoners

[sirineou]

17 hours ago, rooster59 said:

A meeting on Friday unveiling a new economic approach by Turkey's finance minister Berat Albayrak, Erdogan's son-in-law, 

 Why the son in law, the nephew was not available? 

[Small Joke]

Nice to see this unsavoury character get his come uppance through his own obstinate ego, and other defects of character.

He can either back down, or take an already fragile Turkey to economic ruin. And perhaps even trigger another GFC.

[Small Joke]

7 hours ago, Cake Monster said:

Many EU, and Soviet Bloc travelers will now forego their holiday in Thailand for a vacation with much more favourable exchange rates, and cheaper air fares.

Turkish Business Class leaves Thai for dead as well.