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Turkish Lira Sinks After New Alleged Recording Reveals More Erdogan Corruption; Opposition Calls For Resignation

Tyler Durden's picture




 

Update: a tweet by Abdüllatif Sener, Former Finance Minister and Deputy PM of Erdogan, confirm the authenticity of the recording:

* * *

It is almost remarkable that it was a few short weeks ago when the Turkish Lira was crashing to new daily record lows against all reserve currencies, and when Erdogan, embroiled in a bitter political corruption scandal, was firing judges and police officers left and right. Since then, things have quieted down, on the back of the return to surface calm across the broader Emerging Markets (even if nothing has actually been resolved fundamentally in the post-Taper era), however the Turkish graft scandal refuses to go away. As a result, today the Turkish Lira soared by over 200 pips following the release of a new recording which is allegedly a leaked telephone conversation in which the premier discusses plans how to hide at least $1 billion in cash (an amount which would buy about 20 Yanukovich-style presidential palaces) in the period when the Police was raiding various affiliated venues as part of a corruption investigation.

From Today's Zaman:

In the new voice recording, Erdo?an and his son Bilal allegedly discuss during five wiretapped phone conversations on plans how to hide huge sums of cash on the day when police raided a number of venues as part of a corruption investigation that has implicated sons of three Turkish ministers, businessmen and chief of the state bank.

 

Today’s Zaman couldn’t immediately verify the authenticity of the voice recording. It was not clear if the sound that is similar to Erdo?an's voice is real.

 

Prime Ministry released a forceful statement late on Monday, claiming that the voice recording is a "product of montage" and it is "completely false." The Prime Ministry vowed in the statement to sue those who orchestrated this "dirty plot."

 

The voice recording is the latest in a series of leaked phone conversations of embattled Erdo?an, who has portrayed the graft investigation as a plot to overthrow his government. In the voice recording, published on YouTube late on Monday, Erdo?an seems to be warning his son Bilal about cash money stashed in several houses. It was not possible to decipher from conversations how much money is involved and in how many houses this amount of money is stocked, but an introductory note at the beginning of the video says the plan involves at least $1 billion cash stashed in five houses.

 

The conversation allegedly took place on Dec. 17, when prosecutors ordered police to raid dozens of addresses to collect evidence. Dozens of suspects were arrested, including an Iranian businessman Reza Zarrab and chief of state bank Halkbank, Süleyman Aslan. Some of the suspects were later released.

 

At the beginning of the phone conversation, the prime minister briefs his son Bilal about the raid and asks him to “zero” the amount stashed at houses of several people.

 

In the second phone conversation, Bilal Erdo?an tells his father that they decided to distribute money to several businessmen whom they owe and “melt” significant part of it by paying for different projects. Some of the businessmen mentioned during the phone conversations include Faruk Kalyoncu and Mehmet Gür. Erdo?an approves their plan and reiterates that it is “better if they completely zero the money.”

Those interested can listen to the recording below:

Naturally, the government promptly condemned the recording as a fake, and the Prime Minister's office released a forceful statement late on Monday, claiming that the voice recording is a "product of montage" and it is "completely false." The Prime Ministry vowed in the statement to sue those who orchestrated this "dirty plot."  Of course, since Erdogan has already eliminated any judges that are not sympathetic to his regime, the question of how much justice will be revealed is irrelevant. That said, we expect that someone will step up and vouch for the authenticity of the recording, in the process leading to even more political, and TRY, instability.

However, in the meantime, the Turkish main opposition Republican People's Party (CHP) has said the Turkish government has lost its legitimacy and called on Turkish Prime Minister to resign immediately after Erdo?an's voice recording surfaced online. CHP Deputy Chairman Haluk Koç said in a press conference on Monday that the government has lost its entire legitimacy from "this hour" and that Turkey cannot move forward with this "dirt." The remarks by Koç came during an emergency meeting of the CHP Central Executive Board (MYK), where they discussed a new voice recording published online about a discussion allegedly between the prime minister and his son on their plan to hide $1 billion cash stashed at several houses.

Somehow we doubt that Erdogan will resign, however, this latest confirmation that the graft scandal that is and will continue to dodge the Turkish Prime Minister is not going away, may just be the catalyst that pushes the TRY, and with it some of the other recently pacified EMs, back into volatile mode.

 

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Mon, 02/24/2014 - 18:21 | 4472549 DoChenRollingBearing
DoChenRollingBearing's picture

At this point, whenever I hear any .gov guy say something like "it's a dirty plot" when under fire for sleaze, I will just automatically figure he is corrupt until proven otherwise.

"Guilty until proven innocent."

***

LOL re Turkey denying laundering gold for Iran...  Liars.

Mon, 02/24/2014 - 18:21 | 4472553 fonzannoon
fonzannoon's picture

The only thing I know about the Turkish lira crashing is that it makes the S&P go up.

Mon, 02/24/2014 - 18:23 | 4472561 Soul Glow
Soul Glow's picture

What turmoil?

Mon, 02/24/2014 - 20:00 | 4472981 Manthong
Manthong's picture

At least he isn't firing Generals like some messianic Kenyan, er, American, er, Indonesian leader we know about.

Mon, 02/24/2014 - 20:37 | 4473158 max2205
max2205's picture

Isn't that what Nixon said at first?

Mon, 02/24/2014 - 18:26 | 4472558 Soul Glow
Soul Glow's picture

Ergodon is so fucking corrupt.  No wonder the whole of the military brass resigned a few years ago.

 

Turkey's Entire Armed Forces Resign En Masse:

http://www.zerohedge.com/news/turkeys-entire-armed-forces-resign-en-masse

Mon, 02/24/2014 - 18:27 | 4472576 DoChenRollingBearing
DoChenRollingBearing's picture

Corruption..., was that ever banned in the Quran?

 

But, but, but..., it's OK to lie to non-Muslims according to "Muslim Scholars" (at least some of them).  

I now understand why France and others in the EU did not want them in the club.

Mon, 02/24/2014 - 18:33 | 4472597 Soul Glow
Soul Glow's picture

Interest is illegal in the Koran, and interest is also why Jesus picked up a sword and chased the money-changers from the Temple.  

As far as "scholars" take on lying, well, I think it depends on the definition of "scholar".

Mon, 02/24/2014 - 18:40 | 4472618 john39
john39's picture

no shit, I think he is confusing the talmud for the Koran...

Mon, 02/24/2014 - 20:30 | 4473093 ThroxxOfVron
ThroxxOfVron's picture

Look past the cut of the beards and the shape of the hats: the Jew and the Moslem are brothers.

Neither Issac nor Ishmael have ever denied their shared patrimony; they only argue over who was first-born.

Abraham was an asshole -and a criminal by both the existing secular and hebrew laws in place where he lived at that time.

Mon, 02/24/2014 - 18:54 | 4472688 WTFx10
WTFx10's picture

Yeah , there's a lot of Muslims in Hollywood whose careers are made as professional liars. Same as the Main stream media, more lying Muslims. Same as our financial system, loaded with lying Muslims.

 

Tue, 02/25/2014 - 01:32 | 4474228 TheReplacement
TheReplacement's picture

As one who defends jews, I up voted you.  I defend jews because I know a few and they are not a part of all of this.  I do not defend the gangsters amongst the jews, nor amongst anyone else for that matter.  Down with tyrants be they jewish, bankers, C-Levels, half white/half black hucksters, or Russian "Presidents". 

Mon, 02/24/2014 - 19:08 | 4472735 aVileRat
aVileRat's picture

....

Not going to nitpick but the parable of Jesus and the money lenders was a legitimate event (was one of the charges Herrod charged on him according to Antiquity). The lenders were not bankers per se, but people who set a barrier to entry and then charged a spread based on their own fake currency which had no proxy or base rate. A bitcoin for 800 BC. This currency was required to purchase blessed animals for ritual sacrafice to the temple. Markups were on the order of 80% for these animals, which was on top of punative exchange rates from Roman coinage. This prevented many good Heebs from being unable to "pay" for their sins. So thus salvation became a big deal, with wealthy farmers making a big show out of sunday donations and giving pledges ahead of time to the temples brokers. Those who did not have a few 10 Nero's in the pocket had to purchase salvation animals on credit. Often this would be payday loans of at least 4 months a blue-collar salary. Rome obv. got a sales tax off this tithe, and all was good, unless you were not in the club. If you were not in the club, then the belief was that your ticket would not be punched at the end of times. Heavy shit for literally illiterate carpenters.

He flipped over the tables to show, very clearly that price fixing and cartel collusion to prevent all but a few from entering salvation was a dick move. It was also against the basics of the monotheistic faith. Holding untenable debts over populations too illiterate to understand what they were "robo-signing" was also a dick move.

Sadly, many, specifically the foreign occupiers who extended trade credit to these brokers disagreed with Jesus's concept and recognized that if the people did not pay back their debts then they would not be able to support the occupation of Israel if there was a tax revolt. Where a similar revolt was put down brutally 5 years earlier in Syria.

The rest is history.

Interest is not illegal in the Koran, only interest on Interest. ie. CDO2's or triple leveraged DRIP ETF's. Ironically the lack of hedged shorts to their long bond structure nearly screwed Dubai. So take that for what you will. But then again, Mohammad never had discrete calc.

I wonder if Home Depot will blame the weather on a lack of snow shovel sales.... or stuff.

 

Mon, 02/24/2014 - 22:34 | 4473559 Boxed Merlot
Boxed Merlot's picture

The rest is history...

 

 

Another aspect to the narrative was the preparation for the upcoming 49th and 50th years where no agricultural planting was to happen and a return of ancestral real estate was to occur, (Jubilee), with all record keeping being administered by these same folks in the temple.  The jew's King was crucified on the day before the Passover that kicked the festivities off a few years later.  Fullness of time indeed.

 

he poured out the changers' money, and overthrew their tables; and to them that sold the doves he said, Take these things hence; make not my Father's house a house of merchandise.  His disciples remembered that it was written, Zeal for thy house shall eat me up. The Jews therefore answered and said unto him, What sign showest thou unto us, seeing that thou doest these things? Jesus answered and said unto them, Destroy this temple, and in three days I will raise it up. The Jews therefore said, Forty and six years was this temple in building, and wilt thou raise it up in three days? But he spake of the temple of his body.

John 2:15-21 ASV

 

 

Mon, 02/24/2014 - 18:37 | 4472602 MarsInScorpio
MarsInScorpio's picture

Do:

 

If corruption (or rather the lack thereof) were the criteria for admission to the EU, Ukraine would not be a candidate.

 

And none of members who now belong would be able to stay.

 

Respectfully, the entire financial world is corrupt - it's only a matter of degree.

 

"Behind every fortune is a crime."

 

"It is easier for a camel to get through the eye of a needle than for a rich man to get into Heaven."

-30-

Mon, 02/24/2014 - 21:27 | 4473332 Antifaschistische
Antifaschistische's picture

Well golly, just one more time 76,667,864 people are kicking themselves because they didn't buy gold....bummer.

Mon, 02/24/2014 - 19:09 | 4472744 Kirk2NCC1701
Kirk2NCC1701's picture

Define "corrupt", in the context that it is not present in the US. 

Note that:

1. Repackaging/relabeling US corruption in the guise of "limitless political election contributions by NGOs" will not do.  This is still corruption.

2. A revolving door between Gov, industry exempt a country from being "corrupt". 

3. Additionally, giving "Foreign Aid" in the billions to oppressive but friendly dictators (in Africa), or billions (cash and weapons) to technologically advanced countries (Israel!) who spy on us and railroad US politicians, also counts as "corruption". 

4. And finally... creating trillions of USDs in fiat Debt out of thin air, whose debt-obligation (future taxation) is not happening via democratic representation, is corruption on a Cosmic scale.

So, in this context, I'll ask again: Define 'corrupt'.

Mon, 02/24/2014 - 20:37 | 4473159 ThroxxOfVron
ThroxxOfVron's picture

How about You get on the tricorder and beam us the fuck out of here.

It's only logical that we drop a few proton torpedos on these corrupt mothrfuckers, engage warp-drive; and get to the important bidness of exploring some feral green woman far far away from here.

-You have the com.

Mon, 02/24/2014 - 19:28 | 4472824 bitHedge
bitHedge's picture

Let's not forget that Erdogan got screwed by the west with the whole Syria clusterfuck.

Then he, a NATO Turkey, bought military weapons from China.

Then he had Turkey become an observer of the Shanghai Cooperation Union after Putin invited Turkey as a member.

Then he had Turkey launder gold bullion for Iran skirting NATO sanctions

Follow the dots...

Now it seems it's time for him to go according to DC. Wonder if Snowden knew the guy that hacked Erdogan's phone

Mon, 02/24/2014 - 18:21 | 4472552 666
666's picture

Absolute power corrupts absolutely.

Mon, 02/24/2014 - 18:29 | 4472584 Josh Randall
Josh Randall's picture

"...he came to fight the Turkish....meep meep, meep meep"

Mon, 02/24/2014 - 18:32 | 4472587 tony wilson
tony wilson's picture

that  jewish bitch er dog gan must be so pissed.

he did as he was told helped rape syria and destroy an ancient civilisation.

let the cia,mi6 and the soros rothschilds steal children for blood ritual.

bent over and took a pounding from any satanist with power.

he did what was asked and told  and more.

and now soros wants a turkey balkanisation rape party.

soros is like the rolling stones constantly moving on tour and hoovering up the children and the local gold.

Mon, 02/24/2014 - 18:39 | 4472616 MarsInScorpio
MarsInScorpio's picture

Tony:

 

You are truly insane.

-30-

Mon, 02/24/2014 - 18:41 | 4472632 john39
john39's picture

yes, but the truth is insane.  or, at least will render you insane as you start to see it.

Mon, 02/24/2014 - 19:12 | 4472759 Kirk2NCC1701
Kirk2NCC1701's picture

+1.  I can honestly say that I was happier before I swallowed the Red Pill. 

Now I can't go back, even though I want to.  Damn you, Tyler!   ;-)

Mon, 02/24/2014 - 18:47 | 4472662 world_debt_slave
world_debt_slave's picture

“All animals are equal, but some animals are more equal than others.”

-Animal Farm

Mon, 02/24/2014 - 19:14 | 4472770 disabledvet
disabledvet's picture

from "all roads lead to Damascus" to "all roads lead to war."

so much for the theory that just letting the Americans just go home was the way to go here.

now we're "just following orders."
How the hell did we wind up here again?

Mon, 02/24/2014 - 18:49 | 4472669 Kirk2NCC1701
Kirk2NCC1701's picture

As I posted earlier today (4471442) PIIGS ---> UPIIGS ---> TUPIIGS

Where U=Ukraine, T=Turkey

Now I'm waiting for TUPIIGS, since Turkey has gold and is the perfect alternate rout for NatGas from the Gulf.  Which allows for NatGas to be priced in USDs also, thus completing the NWO world rule via the USD.

Prediction:  "When the NatGas + Oil flows from the ME to the EU via Turkey, it will cease to flow via Ukraine. Check Mate, Boris".

Wax on, wax off.  Pipe On, Pipe Off.

Mon, 02/24/2014 - 19:05 | 4472730 Winston Churchill
Winston Churchill's picture

Looks like the neo nazis in Ukraine have hijacked the revolution from

the US/EU approved participants.

Paul Craig Roberts is all over it today with sources.

That would screw up your scenaio pretty well., plus give Putin a free hand in the

region.

Mon, 02/24/2014 - 19:29 | 4472828 disabledvet
disabledvet's picture

possibly.

we really don't know who gave the order to start sniping protestors...or who that sniper was even. what we do know is that the President never denied being responsible for it and then they released that chick he hated from prison.

And "when the President fled he was detained at the border."
that sounds like someone is in fact running the country actually.
good luck undermining it if your example is "sniping more kids with baseball bats."

God forbid if your "Russian" (Muscovy) and are ordered to set up defensive positions in Sevastapol. Against "Ukrainian subversives"?

Putin should be able to walk on in here.
This looks an awful lot like "divide and conquer."
Well...let me ask you this "Winston"...if you're ordered to go in here how do you just "walk away"?
Name calling is one thing...but in all matters martial establishing causii bellum is paramount.
"not in my back yard"?
sure...go for it.
but "good fences make good neighbors" too.

in others smack talking is one thing...but being prepared to act on those words is quite another. I'll say this about the Nazis...there was never any confusion over "language" or "intent."

Is our goal merely to "replicate" that feeling?

Mon, 02/24/2014 - 19:00 | 4472713 usednabused
usednabused's picture

I have to wonder where the billions come from thta these assholes steal so easily. You suppose the CIA threw a few footballs his way? Those are the crooked fuckers that should be hanging right with the goons they pay off to do their torturing.

Mon, 02/24/2014 - 19:06 | 4472724 earleflorida
earleflorida's picture

Gulen the Islamic radical seeking and getting safe-harbor in USSA is indicted by Erdogan on 'snowden'd`esqued phone hacking,... starting as far back as 2008(?)? 2008!?!

`"Parallel State"-- phone-tapped thousands in Turkey: Officials"       2/24/14  byOrhan Coskun

http://www.dailystar.com.lb/News/Middle-East/2014/Feb-14/248356-parallel-state-phone-tapped-thousands-in-turkey-officials.ashx#axzz2uHItNWUO

another terrible covert intrusion, if true... by a terrorist organization under the nexus-umbrella of  a paranoid, trepidatious and psychotic ussa foreign policy...

fail!!!

jmo 

 

Mon, 02/24/2014 - 19:20 | 4472789 Kirk2NCC1701
Kirk2NCC1701's picture

Why do the Neocons/NWO Globalists hate the countries* with Barbaric Relics so much?

And if they truly want to liberate people from oppressive regimes/dictators, then why don't they start with in the ME?  E.g., KSA, Bahrain, Kuwait, Qatar, UAE.

"Hyprocisy is as hypocrisy does".

* http://www.zerohedge.com/news/turkey-russia-ukraine-and-kazakhstan-furth...

Mon, 02/24/2014 - 19:35 | 4472861 disabledvet
disabledvet's picture

you're a phucking wacko. "Ukranian gold"? REALLY?
I hope you're prepared to go down with your ship "Captain" cuz that's all this fight has ever been about.

Wall Street will of course pick your pocket of all that "useless fiat" along the way.

Mon, 02/24/2014 - 19:42 | 4472898 Cacete de Ouro
Cacete de Ouro's picture

Ukraine has 31 tonnes of gold. Most kept in the local Treasury, some on term loans with bullion banks, so presumably 'used to be' in the Bank of England (before being sold by the bullion banks).

"During 2012 the monetary gold volume grew by 0.24 million troy ounces. The larger portion of the monetary gold of the National Bank of Ukraine was kept in the vault of the State Treasury, and the rest was placed as term deposits." "Monetary gold consists of the stocks of gold bars of the international standard held in the State Treasury of Ukraine. Monetary gold represents a part of the international reserves. Monetary gold is recorded in physical weight in troy ounces and is valued in hryvnias at the official exchange rate of the NBU." "Interest-bearing placements in gold with foreign banks are included in foreign
currency and bank metals funds and deposits and

http://www.bank.gov.ua/doccatalog/document?id=2150786

Mon, 02/24/2014 - 19:35 | 4472843 Cacete de Ouro
Cacete de Ouro's picture

Never trust a Turk in important matters, especially a Turkish taxi driver (lying scoundrels), or a Turk trying to sell you a leather jacket or a carpet. And ladies, never trust a Turkish gigolo (they are just after a visa).

Mon, 02/24/2014 - 19:42 | 4472903 shovelhead
shovelhead's picture

Turkish taffy will steal the fillings from your teeth.

Mon, 02/24/2014 - 20:08 | 4473013 paint it red ca...
paint it red call it hell's picture

Who would have guessed that the CIA would need a new puppet?

Oh, I guess Sibel Edmonds did...

http://www.corbettreport.com/interview-809-sibel-edmonds-explains-erdoga...

Do NOT follow this link or you will be banned from the site!