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Lira Plunges To Record Lows As Turkish Minister Addresses G20
On Thursday evening we noted - with more than a little amusement - that Brazil's embattled finance minister had cancelled an appearance at a G20 summit in Turkey in order to address his future in President Dilma Rousseff's government amid a plunging BRL and a horrendous fiscal situation.
Why is that amusing? Because Turkey isn't doing so well itself either politically or economically, and when it comes to plunging currencies well, Ankara is doing its absolute best to make things worse. Here's what we said yesterday:
Last month, Turkey’s central bank had a chance to give the plunging lira some respite by preempting the Fed and hiking rates.
Only they didn’t.
And not only did they not hike, they made it clear that tightening would only occur once the Fed tightened and then made matters immeasurably worse by proceeding to stumble through a "roadmap" of how they planned to deal with DM policy normalization. That, combined with political turmoil, an escalating civil war (and yes, that’s what it is), and pressure on EM in general has led directly to further weakness for TRY.
Don't look now, but the lira just plunged to a (new) record low:
Put simply: if we don't see aggressive emergency hikes sometime soon, this debacle is going get a whole lot uglier and that means more pass through inflation like we saw in August which in turn will do absolutely nothing to calm nervous traders let alone a nervous populace.
And the punchline (from just minutes ago):
- TURKEY DEPUTY PM CEVDET YILMAZ SPEAKS AT G20 EVENT: BHT
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Bitcoin + (many lira)
Stupid Female bartender: "I think I'll plan a trip with my friends to go to Turkey for Christmas this year." Me: "it's your funeral."
With the Lira crashing gold is getting expensive in Turkey. Not to mention Turkey is experiencing civil unrest.
I'm wondering if the G-20 meeting in Turkey will turn into an Archduke Ferdinand moment.
Does this mean my butterball will be cheaper this Thanksgiving?
discount gobbling?
Erdogan is a dictator. World is now seeing this polictical figure's evolution. Another leader with a moustache.
Not a dictator yet, but he's working on it......
he's a JV dictator, working on making varsity. most of the traits are there...and more boxes are getting ticked every month.
He doesn't really have the military behind him yet.....
things will be fine as long as putin doesn't destabilize syria. that's our job.
the 'picture of a drowned baby boy' seen around the civilized world on the shores of refuge[?] was a wake-up call to all those without a voice,... that this could be your child .
from libya, to syria... etel. that the hand of democracy has touched
shame
'ussa's ideological [foreign policy] genocide in the raw!?!'
I dont think that chart is correct. Isn't it TRY/USD?
It looks upside down, but it shows on the right side of the chart that for each US$ and increasing number of TRY. Get it?
G20 is in Turkey watching the complete and utter destruction of the fiat ponzi with front row seats.
FRONT.ROW.SEATS
Get your popcorn ready.
:)
record lows? Oh wait ... who the fuck reverses the Y axis? Oh yeah, nevermind. WTF.
This will send probably another wave of refugees to us. Putin is right. I am not saying more. But his recent comment is absolutely right. And the people he is talking about - they abandoned us.
I was watching the refugee crisis, on TV, as it was unfolding at the Hungarian border. There were refugees from Kobani, Syria which is a Kurdish border city shared with Turkey. Now there was much press about a year ago as the Persmerga ( the Kurdish Military) defeated ISIS and drove them away from Kobani. There was coverage of the really hot Kurdish woman taking up AK-47s to fight ISIS.
This story of a child who drown was featured all over the MSM this week.
http://www.cnn.com/2015/09/04/europe/syria-aylan-kurdi-funeral/
The boy and his family are are from Kobani were they were safe from ISIS , but not from our allies Turkey.
Now it seems the Turks are not attacking ISIS but are really lauching offensives against the Kurds, the defenders and enemies of ISIS.
US Foreign Policy is dead wrong again.
.
turkey is fucked! they depend on the iranian's for discount oil subsidized handouts and the (itp) iraq-turkey pipeline. ref: Kirkuk-ceyhan oil pipeline [which on apr/2014 the game plan was to raise oil-output to 1.2mln bpd]. http://en.wikipedia.org/wiki/Kirkuk%E2%80%93Ceyhan_Oil_Pipeline
yeah, they've got the euphrates and tigris, but syria's also got the lion's share of the euphrates which is as valuable as oil. iran has no problem with water because of location, locaton, and moar location-- perhaps the best location in all of the me? ref: http://en.wikipedia.org/wiki/Tigris%E2%80%93Euphrates_river_system
all turkey's got going for itself is geography-- the threshold of two-continents. big fucking deal! we all have seen AfPak develop into no man's l;and basically shutting down/ detouring the quasi silk`highway in the nascent 21st c.
now, back to the lira: turkey is fucked. erdogans gonna need to stop his bellicose tripe`ing!-- before istanbul becomes another a'le`greece'd monkey.
3 year olds are washing up onshore ..
http://www.veteranstoday.com/2015/09/03/the-responsibility-for-this-boys...
I'm a vet (USMC [cold war]). Next time you thank a vet for his service .......................
[face palm]