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Meanwhile In Turkey...
The Turkish Lira is tumbling this morning (+150pips at 2.22); rapidly devaluing back towards pre-emergency-rate-hike levels and Turkish bond yields have surged back to levels seen in mid-2009. The driver appears to be the release of several political prisoners, suggesting the President is starting to lose control and given that 'political stability' is the key factor for many of these EM debt markets. The government, however, remains adamant that an "operation" by some institutional holders of lira bonds to "threaten" Turkey's economy started after the probe into government corruption began in mid-December.
As Bloomberg notes,
Economy Minister Nihat Zeybekci says “operation” to undermine Turkey’s economy started after emergence of Dec. 17 probe into alleged govt corruption, state-run Anatolia news agency reports.
Zeybekci links lira volatility to “operation” by some institutional holders of Turkey’s lira bonds: Anatolia
Holders of Turkey debt dumped lira bonds, increased FX positions to “threaten” Turkish economy
Zeybekci says action against economy destined to fail
However one glance at the chart of Turkish bonds and it's clear the selling began amid Taper fears last summer and was merely exacerbated by corruption concerns and EM crisis flows (and who would lock in rates for an allegedly corrupt government)
It would appear the driver of today's weakness is an apparent loss of control by the President as several political prisoners are released by Turkey's 13th high criminal court:
Turkey’s 13th high criminal court rejects release of some suspects in Ergenekon trial today, while 21st criminal court released others in same case, saying parliament’s abolition of specially authorized courts meant they had to be set free, HT reports.
* 21st court decided today to release Ergenekon suspects Tuncay Ozkan, Levent Goktas and Sedat Peker, who were being tried for alleged involvment in the so-called Ergenekon plot to overthrow Prime Minister Recep Tayyip Erdogan’s govt
* 13th court, in contrast, didn’t release suspects, saying that parliament had no authority to dissolve the specially authorized courts that saw the cases, known in Turkish as OYMs
* HSYK, the body that appoints judges and prosecutors - and which was re-structured by the govt amid a corruption probe - says 13th court overstepped its authority and parliament does have the authority to open or shut courts down
* Nationalist lawyer known for suing authors including murdered Armenian journalist Hrant Dink and Nobel Prize-winning author Orhan Pamuk for “insulting Turkishness” freed today, state-run TRT reports.
* Kerincsiz among suspects freed after being jailed in so-called Ergenekon trial of people alleged to be plotting a coup against Prime Minister Recep Tayyip Erdogan
* Lieutenant General Mehmet Eroz also freed, TRT says
Chart: Bloomberg
»
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Just wait till Greylock Capital says its a no brainer trade. They nailed Greek bonds: http://www.zerohedge.com/news/greek-bonds-monkeyhammered-hedge-funds-sla...
Sounds fucking bullish to me....
It's always someone else, it's never corrupt government that's the issue.
Like Nixon, taking us off the gold standard "temporarily" because of "gold vigilantes". It had absolutely nothing to do with the Federal Reserve over printing US dollars compared to the gold backing it.
When it gets serious...._______!
This government is looking like it would be easy to "destabilize" with some "pro-democracy protests" that could then easily be shouldered aside by whoever had the biggest balls and the most guns. Maybe the new "appointed" "Prime Minister" could be "recognized" and the country would leave NATO, and the whole fucking Western scheme to control Russian / Caspian energy flows would be screwed.
Just sayin'.
P.S. at what point does Germany decide to cast aside its guilt and start acting like a country?
Cyprus central bank gov just resigned...
Expect this shit to continue in emerging markets thanks to the Fed.
We do export stuff here in the US - and that is economic failure
Just wait until all that exported eCONomic failure comes rushing back on to US shores. That failure is called the fiat US dollar.
so fucking simple:nothing for free...
blood sweat and toil for currency backed by something other than corruption...
All currencies in the world are backed by fraud now. Not one single one is back by honest money, gold/silver. The Swiss Franc was the last currency backed by something."As of 2013, no countries use a gold standard. From 1936 until 2000 the Swiss Franc was based on a 40% gold-reserve."
<< All currencies in the world are backed by fraud now. >>
Considering the furious rate at which both the People's Republic of China and the Russian Empire are purchasing gold bullion, perhaps that is about to change.
We can only wish, but for the people in the US, be careful what you wish for. It will be ugly when the US loses its reserve currency status.
It's Criminal system, owned by Criminals & run by Criminals.
US taxpayer money at work subverting another soverign.
Like Syria, Turkey has offshore mineral rights.
They are screwed.
Good thing we've got a global economy with loads of funny money.
Looks like we're going to get some more funny money.
A leading German institute has called for full-blown quantitative easing by the European Central Bank (ECB) to head off a deflation spiral, marking a radical shift in thinking among the German policy elites.
Marcel Fratzscher, head of the German Institute for Economic Research (DIW) in Berlin, demanded €60bn (£50bn) of bond purchases each month to halt the contraction of credit and avert a Japanese-style trap.
"It is high time for the ECB to act. Otherwise Europe risks falling into a dangerous downward spiral of sliding prices and declining demand", he wrote in Die Welt.
http://www.telegraph.co.uk/finance/financialcrisis/10687708/Top-German-b...
Atlam fo sthgink eht llik.
Civil unrest For the Win!
The Society teaches to tear them down, and help build them up again, in our image.
Just another leg dwn into an Islamist-controlled crap hole. I keep hoping the secular government spirit of Ataturk will rise in Turkey.
European markets are turning down. That's a shame.
This has to be bullish for US markets.
Print faster Yellen - it's a big secret what you are doing - only a few know.
Barry and Yellen working the farce again.
Turkey is getting "spanked" again by the Fed (or by the 'CYA', if need be), for being too impartial (and self-serving) between East & West?
"Must have that planned Pipeline go via Turkey to the EU!"
"Must get Turkey to stop buying Gold!"
Endless QE makes the Dollar weaker, but hey, let's all rush into the Dollar, if we make everyone else look bad or worse!
Here's a Hedge and an Insurance Policy that 95% of Advisers/Brokers (Wall St lackey) won't tell you about:
"Pack, Stack and Rack. And keep enough Cashish at Bank of Certa & Sealy."
They'd rather that you sink your 'assets' into something that Flies, Floats or Fornicates: "A fool and his honey are soon parted" - Kirk.
Is Turkey a major exporter of iron ore?
Importer of Gold. And a constant fence-sitter. Connect the dots.
Ya' can't soar with the eagles if yur thinkin' like a turkey!