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Meanwhile In Turkey...

Tyler Durden's picture




 

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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Mon, 03/10/2014 - 10:53 | 4530307 Capitalist
Capitalist's picture

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...

Mon, 03/10/2014 - 11:05 | 4530366 wallstreetapost...
wallstreetaposteriori's picture

Sounds fucking bullish to me....  

Mon, 03/10/2014 - 10:54 | 4530314 Colonel Klink
Colonel Klink's picture

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...._______!

Mon, 03/10/2014 - 15:46 | 4531631 SWRichmond
SWRichmond's picture

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?

Mon, 03/10/2014 - 10:55 | 4530316 papaswamp
papaswamp's picture

Cyprus central bank gov just resigned...

Mon, 03/10/2014 - 10:55 | 4530319 Shizzmoney
Shizzmoney's picture

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

Mon, 03/10/2014 - 10:58 | 4530331 Colonel Klink
Colonel Klink's picture

Just wait until all that exported eCONomic failure comes rushing back on to US shores.  That failure is called the fiat US dollar.

Mon, 03/10/2014 - 11:06 | 4530369 new game
new game's picture

so fucking simple:nothing for free...

blood sweat and toil for currency backed by something other than corruption...

Mon, 03/10/2014 - 11:17 | 4530408 Colonel Klink
Colonel Klink's picture

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."

Mon, 03/10/2014 - 11:22 | 4530433 Richard III
Richard III's picture

<< 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.

Mon, 03/10/2014 - 11:25 | 4530454 Colonel Klink
Colonel Klink's picture

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.

Mon, 03/10/2014 - 11:49 | 4530519 Chupacabra-322
Chupacabra-322's picture

It's Criminal system, owned by Criminals & run by Criminals.

Mon, 03/10/2014 - 10:58 | 4530332 sudzee
sudzee's picture

US taxpayer money at work subverting another soverign.  

Mon, 03/10/2014 - 11:05 | 4530363 q99x2
q99x2's picture

Like Syria, Turkey has offshore mineral rights.

They are screwed.

Mon, 03/10/2014 - 11:05 | 4530365 Youri Carma
Youri Carma's picture

Good thing we've got a global economy with loads of funny money.

Mon, 03/10/2014 - 11:12 | 4530386 Ness.
Ness.'s picture

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...

Mon, 03/10/2014 - 11:15 | 4530402 Chuck Knoblauch
Chuck Knoblauch's picture

Atlam fo sthgink eht llik.

Mon, 03/10/2014 - 11:19 | 4530418 MuleRider
MuleRider's picture

Civil unrest For the Win!

Mon, 03/10/2014 - 11:25 | 4530451 Chuck Knoblauch
Chuck Knoblauch's picture

The Society teaches to tear them down, and help build them up again, in our image.

Mon, 03/10/2014 - 11:20 | 4530424 gaoptimize
gaoptimize's picture

Just another leg dwn into an Islamist-controlled crap hole.  I keep hoping the secular government spirit of Ataturk will rise in Turkey.

Mon, 03/10/2014 - 11:22 | 4530430 Rising Sun
Rising Sun's picture

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.

Mon, 03/10/2014 - 11:39 | 4530464 Kirk2NCC1701
Kirk2NCC1701's picture

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.

Mon, 03/10/2014 - 11:29 | 4530467 Dollarmedes
Dollarmedes's picture

Is Turkey a major exporter of iron ore?

Mon, 03/10/2014 - 11:41 | 4530492 Kirk2NCC1701
Kirk2NCC1701's picture

Importer of Gold.  And a constant fence-sitter.  Connect the dots.

Mon, 03/10/2014 - 13:42 | 4530953 Itchy and Scratchy
Itchy and Scratchy's picture

Ya' can't soar with the eagles if yur thinkin' like a turkey!

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