Turkey Issues Arrest Warrant For Second US Consulate Worker, Lira Plunge Accelerates

Tyler Durden's picture

One day after an escalating diplomatic spat, in which both the US and Turkey halted the issuance of non-immigrant visas to each other's citizens following last week's arrest by Turkey of a US consulate worker, on Monday Turkey issued another detention warrant for a second US consulate employee, Ahaber newspaper reports.

The market reaction to the rising diplomatic tensions has been dramatic, sending the Turkish lira crashing the most since the July 2016 failed "coup" attempt on Turkey's president Erdogan, while local stocks and bonds tumbled in sympathy, the local Borsa Istanbul 100 index sliding, and now in correction territory having dropped more than 10% from its late August peak. The news of the second arrest have led to some further weakness in the Lira this morning, which crashed to a record low against a basket of currencies including the euro and the dollar.

Turkish NTV broadcaster reported that the consulate worker is still being sought by security officials, while his wife and child are being questioned by Turkish police. The reason for the arrest warrant has not yet been revealed. The warrant follows the arrest of Metin Topuz, who as we reported last week, was a Turkish citizen who worked at the US general consulate in Istanbul. He is alleged to have ties to exiled Turkish cleric Fethullah Gulen, whom Ankara blames for a failed coup attempt last summer and literally everything else that is wrong with Turkey.

The US Embassy in Turkey said that it was "deeply" disturbed over the "baseless, anonymous allegations" undermining "this longstanding partnership" between NATO allies. In its turn, Ankara said that the employee of the US Consulate General in Istanbul arrested by Turkish authorities had no diplomatic immunity.

A court has ruled that Topuz will remain in custody while his alleged links to Gulen are investigated. it was Topuz's arrest that was the last straw, and prompted the US to suspend most visas for Turkish citizens. Hours laster, Ankara reciprocated in a tit-for-tat move.

That said, Ankara has yet to confirm the media reports. The Turkish justice minister said earlier he had no information about a new warrant being issued.

Media speculations of another arrest warrant comes amid the deterioration of relations between NATO allies over the arrest of a US consulate employee in Istanbul over alleged links to Islamic cleric Gulen, accused by Ankara of being behind the failed coup attempt in 2016. On Sunday, the US said it has suspended visa services in Turkey in all its diplomatic facilities in the country to "reassess Turkey's commitment to security" of the US mission. Shortly after, Ankara responded with tit-for-tat measures and suspended visa services in the US, while the following day the Turkish Foreign Ministry summoned the undersecretary of the US embassy over the issue.

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JoeTurner's picture

please stop all this #WINNING my boner is going to explode !

Aristofani's picture

stockholm syndrome. I could say tRumptards, but I am being nice today.

NoDecaf's picture

time to invoke NATO article 5. 

wait what?

 

BennyBoy's picture

 

Turkey Russia and Iran cooperate.

Lira plunges next day.

Coincidence?

Or CIA, PPT and GS?

philipat's picture

Yes, absolutely obvious. Just like the attack on RUB a few years back. Pathetic really...

overmedicatedundersexed's picture

turkey has been turned..but to which side? SA? russia? Iran?..look out EU, this means more terror attacks for you

cookies anyone's picture

no, its not turkey. thats the three letter agencies you are refering to

SoDamnMad's picture

After seeing Erdogen's goons beating up protesters in Washington, you know this guys face looks like hamburger about now. They WILL extract the truth from him even if it kills HIM.

overmedicatedundersexed's picture

turkey will send him to Noko, they know how to treat american visitors..

Fireman's picture

Never screw a coup, if you do you're screwed!

If this cracks NATO then I'm rooting for Erdoggy.

AG17's picture

Thanksgiving pushed to October? Turkey on platter in advance..?

Omega_Man's picture

every us embassy is cia murder outpost....best to board them up

mabuhay1's picture

Turkey was never a friend to the US, and never will be. We have supported them and protected them, and all we have ever got back is refusals for use of Incirlik airbase during the Gulf wars, and then harassment of our operations in Syria. It is time all of NATO withdraw from Turkish bases and cut all military and diplomatic ties with Turkey. If they interfere in any thing we do, hit them hard. It is time to stop playing softball with an opponent that is playing hardball.

Omen IV's picture

The USA is finished in the ME - Incirlick is gone - so is the base in Kurd country - with SA now joining Russia for close collaboration on Energy policy and pricing - the Russians have the circle - Afghanistan is next - US is leaving not in four years but in less than a year - Taliban plus Iran + Pakistan will kick them out

 

Israel must secure itself with Russia as their protector from Iran et al - which it willl do

 

we are witnessing the sunset of post WWII  - arrogance and hubris - by the USA - we dont have smart people we have yes men at every stage and dopey women for cover -

 

The Citizens are going to take it up the ass as the dollar collapses

flemsnopes's picture

BTFD! Wait, what? There is no dip? Then, BTFATH!

Son of Captain Nemo's picture

Won't be long now when SWIFT gets completely erased by MIR (http://www.hurriyetdailynews.com/opinion/ugur-gurses/putin-suggests-mir-...) in the Middle East and of course everywhere else that wants a return on it's money that is genuinely tied to real wealth!...

fel.temp.reparatio's picture

summarising the article cited...

mir is an alternative cc payment platform used only in russia, which, if undertaken in turkey, will enable russian tourists/businesses to make cc purchases of goods/services in turkey using rubles (without foreign exchange) and vice versa using lira... that's it

how swift and the latter part of your post relates, i have no idea

east of eden's picture

Not sure how much people understand what is going on, but it appears that the Eurasians have the ME pretty much sown up now. It's not only Turkey, but Greece as well. And now SA. They know what's coming.

Too bad for the Israeli's. Looks like they are surrounded despite their best efforts at destroying every Arab country in existence.

Are you ready Bibi? Are you ready for 1 Billion mad and crazed Muslims knocking on your door? 

Back in the 1990 there was a series of articles on how Jewish women in NY City were marrying Goyim by the droves. They have seen this all before and want a Christian last name in the hopes of hiding out from the coming slaughter.

Too bad for them, that you can pick them out of a crowd from a mile away. They may be able to change their names, but not their looks.

TRN's picture

Greece is squarely on the European side.

east of eden's picture

What planet did you arrive from?

CriticalUser's picture

What a vile and uninformed comment!

You clearly missed the memo that Israëls reality is accepted in the Middle East by most neighbouring countries, Egypt Jordania and Saudi-Arabia foremost. Whereas a lot of these countries were united in trying to destroy it in the 70s (Yom Kippur War). Turkey (not an Arab country!) was an old ally of Israel, until Erdogan the Mad came to power.

Shame on your delusional "reality" and lck of historical knowledge.

 

Hongcha's picture

I am certain he is arresting native Turks.  He tries to arrest a white American, there would be instant repercussions.  But his own people are expendable in the his Kabuki Theatre.  For all his bluster, he's a Rice Christian deep down - a convert so long as the goodies keep flowing.

currency's picture

Erodgan is a sick man, he wants to reestablish and recreate the OTTOMAN EMPIRE and he wants to be the Big Sultan for life along with his Corrupt friends, family and associates with stickt fingers But, Erodogan is simply a sick little man. I feel sorry for the Turks who are against Erodogan and who want to live peacefully they are silenced by the NUT JOBS and Erodogan.

 

Erodogan and followers are the Sickman of Europe and the World.

 

US needs to pull out of Turkey, there are other places to have bases.

 

Hongcha's picture

We could do worse than the Ottoman Empire; in fact, we certainly have.  The Sykes-Picot Agreement and the Balfour Decl. were abortions that have doomed us to WW3.

In fact, had Mustapha Kemal not stood up to the Western powers, we would not have Turkey as a buffer zone today.  It would have been carved up with the rest of them.

east of eden's picture

Yeah, like in Kalamazoo, MI.

Omen IV's picture

Erdogan is neither sick or stupid - That label is Obama & Clinton - they screwed the poch with the coup de etat and the Syria was the biggest mistake of all - it showed a hapless overt /  covert operations couldnt be managed by the DoD & CIA

 

The USA is done - next Ukraine will fall and Hungary / Poland / Czech will start moving east

 

The great unraveling is a 72 years horizon - just seems like clockwork

NoWayJose's picture

If you like Turkish cotton towels and robes, or Turkish rugs, or Turkish dates and apricots - I suggest you buy them now.

Kendle C's picture

Yeah, Turkey is a sitting duck!

Cozy Vanilla Sugar's picture

Incorrect. If the lira weakens vs. your currency, the prices of these Turkish products will become cheaper in terms of your currency, so you should wait to buy them.

Turkish manufacturers have existing cost structures and are incentivized to continue producing despite falling demand. Oversupply leads to further price declines and soon there's a depression in Turkish production. Compounding the problem - everything Turkey imports becomes more expensive to the Turkish population as the lira weakens.

No worries though, Turkish friends, I'm sure Erdogan thought through these risks carefully before "pivoting" to Russia and antagonizing the US for publicly criticizing his tyrannical behavior.

 

africoman's picture

Okey-dokey, Erdogan is showing his shift practically the question is when is Merica gonna kicking turkey out of NATO?

That is the day party is over and enmity established for real, otherwise, half-assed diplomatic acrobat is not enough

Truthseeker20's picture

turkey will be fragmented next. That is the objective in the ME. Krdistan will get the land there.

east of eden's picture

I don't think Turkey is going to fragment in any way. The Saudi's are on board now and Turkey not only has a real 'army' with real weaponry, but Vlad sold them a bunch of S-400s'. You do know about the capabilities of the S-400's don't you? Those are the missiles that knock B-52's out of the sky at 65,000 feet, amongst other things.

Genby's picture

S-400 is capable to hit any type of existing aircraft including SR-71.

Aristofani's picture

I dont like the guy, but he definitely has bigger cohones than the dotard.

But we all know tRump-killary has tiny hands.

40MikeMike's picture

Turks vs Iranians....

 

Should be a heck of a match. 

 

Erdogan wrapping himself in the koran...

 

Appeals to thousands of ISIS retreaters from disintegrating Caliphate. The thousands givenvrefuge by Turkey.

 

A very good core to take on the equally bloodthirsty Shia militias.

 

Stay tuned...

Raul44's picture

Lol I love these interpretations :). NO, it have nothing to do with it, lira is in a downtrend for *years* and this is just a continuation of it. 

pc_babe's picture

Who is Lira Plunge? Sounds like Valerie Plame's half sister.

Grandad Grumps's picture

Start arresting bankers.

wonger's picture

Someone is selling lira driving down the price, this isnt good for turkey, now who would have the money to push this down and want to punish turkey i wonder? Im watching closely

Maestro Maestro's picture

Turkey unfortunately is not anymore pro-gold than the US or Russia or Germany or China. Just last week President Erdogan asked the Turkish people to turn over their gold held under the mattress to the bankers to put it "to work" instead of being an asset that's dead to the economy. We're talking about paper gold contracts that pay some interest and promise to return your gold somehow somewhere in the future. It's disappointing that Erdogan who complains about high interest rates also accommodates the bankers to the detriment of the Turkish nation. But all presidential advisers work for Goldman Sachs whether they are employed in America or Turkey, don't they?

The BRICs are all IMF member countries and are thus forbidden to monetize gold, or link their currencies to gold, or use gold as a trading or exchange mechanism:

http://m.beforeitsnews.com/silver/2016/04/how-the-imf-forbids-the-use-of...

http://www.24hgold.com/english/news-gold-silver-why-does-the-imf-prohibi...

India recently collaborated with Western bankers and following the West's instructions, temporarily destroyed the purchasing power of its own Indian population by demonetizing physical cash, under the guise of eliminating tax evasion and cash-only criminal activity. This has had the effect of crashing the gold price by temporarily removing the Indians from the gold market, exactly when the Trump inauguration lit a fire under the gold price.

The Russians never abstained from using dollars even at the time of the communist USSR! If they did not demand gold for their oil during the Cold War, why would the Russians do it now when the Russian central bank is owned and controlled by the City of London banking establishment since the creation of the new Russian Constitution under Yeltsin? The Russians are forbidden to issue their own currency the Ruble without permission from Western bankers and the Russians can only buy US Treasuries with the dollars they get for their oil, not gold. There are more dollar assets than Rubles in Russia:

http://anonhq.com/checkmate-central-bank-russia/

http://www.pravdareport.com/russia/economics/30-12-2014/129431-usa_russi...

The gold price would have skyrocketed if the Russians and the Chinese were buying gold hand over fist as alleged. Why do you think that Western bankers would give gold away at or below cost to their purported enemies?

Unless they were not enemies in reality, and just partners playing good cop, bad cop for the purposes of fooling and manipulating their unsuspecting respective populations?

http://www.mygen.com/users/ufo/Mao_was_a_Yale_Man_2.html

Why do the Russians never ask the Americans to leave Syria where the Americans are illegal invaders under international law? Why did the Russians never prevent the Israelis from attacking their allies the Syrians?

The Shanghai Gold Exchange is a fraud designed to legitimize the fraudulent COMEX "discovered" gold price. Goldman Sachs and JPM never could have manipulated the gold and silver prices lower without active Chinese collaboration. That the Shanghai Gold Exchange is a physical only market is a LIE:

https://www.sprottmoney.com/blog/the-new-shanghai-gold-exchange-does-any...

The Chinese government defrauded and stole from their own Chinese citizens by encouraging them to buy gold at the top. The Chinese bankers then colluded with JPM and Goldman Sachs to crash the gold and silver prices. Large amounts of physical silver were leased out and sold into the physical markets by the Chinese authorities as well:

http://www.silver-investor.com/charlessavoie/cs_july04.htm

http://m.digitaljournal.com/article/279166

http://www.dnaindia.com/money/column-china-urges-citizens-to-buy-gold-an...

Do not forget: It's the international ruling classes against the common folk. That's the real meaning of globalism.

Arrest Hillary's picture

One thing stupid socialist don't get .... gold is working 24/7 .... whether it's being loaned .... or being stored under a mattress .... it doesn't matter .... it's gravitas is always a factor .... if it's being hoarded .... it's value is being loaned free of interest to all gold that's in play .... economy is not a ZeroSum.game ?

Maestro Maestro's picture

"If it's being hoarded... its value is being loaned free of interest to all gold that's in play."

Nice...

ilovetexas's picture

It feels funny that Lira had to crash just because a US guy will be potentially arrested. I can't help wondering if the crash is politically motivated or, simply put, a punishment act from some US-gov related accounts. If it were 20 years, this crash would be real and understandable. But today? A significantly weakened US? The crash can be irrational. It is no longer a big deal to arrest a US diplomat. Who is US? I don't know. I hear people say it is one of the powers on Earth. Not sure if it is the strongest yet.

hanekhw's picture

Well rest assured that all this is in Edrogan's, not Turkey's interest. As long as ten years ago he had over a billion stashed in his own home and faced the quandry of building a larger home or becoming the God-Emperor of Turkey.