Turkish Lira, Bonds Crash As 'Secret Gold Trade' Trial Begins, Implicates Leaders

Tyler Durden's picture

For the first time in history, Turkish 10Y bond yields topped 13% this morning and the currency just plunged to a new record low against the dollar as the trial of the gold-trader at the center of the "secret gold trade" with Iran begins today and looks set to implicate Turkish leadership as we warned.

For full background on this stunning case, read here.

As Bloomberg reports, Turkish Deputy Prime Minister Bekir Bozdag is furious...

The U.S. case against Turkish-Iranian gold trader Reza Zarrab “has no legal basis."

 

The trial is nothing more than an execution through the U.S., of the “unsuccessful Dec. 17-25 coup attempt in Turkey,” by Fetullah Gulen’s organization, referring to a corruption probe in 2013 that was quashed

And according to Ilnur Cevik, a senior adviser to Turkish President Recep Tayyip Erdogan, U.S. attorneys and the judge overseeing the trial have accepted illegally obtained and tampered information as evidence.

There is an attempt to implicate Turkish leaders in the case, Cevik says in remarks on state-run TRT news radio.

 

Cevik then stated that Preet Bharara, the former U.S. Attorney for the Southern District of New York, “is the one who prepared this plot” and he is linked to Gulen, who is accused of masterminding last year’s failed coup attempt in Turkey, adding that Bharara’s successor Joon H. Kim is now continuing case in same manner.

 

Both prosecution and judge are linked to FETO, Cevik says (referring to the Turkish govt’s term for people affiliated with Gulen’s network that it considers a terrorist organization).

The case is an effort by Gulenists to come after Turkish govt after last year’s failed coup attempt, he added, saying:

U.S. Justice Dept. should immediately intervene in the case if it wants to “avoid disgrace.”

 

“The court of the Southern District of New York is seized by the people of FETO. Where is justice in this trial?”

Quite some accusations for innocent men?

And the impact of this uncertainty is clear. The Lira is tumbling to new record lows against the dollar - extending losses following Erdogan's anti central-bank-independence comments last week...

 

And Turkish 10Y Bond Yields topped 13% for the first time in history...

It seems time's up for delaying this...

“The Zarrab case is the one to watch in terms of U.S.-Turkey relations,” Tim Ash, a London-based strategist for BlueBay Asset Management LLP, said in an email to clients.

 

“Zarrab is thought to have been close to the Erdogan family and, indeed, he was given Turkish citizenship, alongside Iranian. This is a real stress point."

As Bloomberg notes, Erdogan tried to pressure U.S. officials during the Barack Obama and Donald Trump administrations to drop the prosecution of the trader and has complained in public comments that prosecutors were trying to extract a confession from Zarrab and turn him into an informant. He also claimed President Trump apologized for the prosecution in a phone call.

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y3maxx's picture

-America needs another war front.

Where's a false flag event when you need one?

WTFRLY's picture

It's coming, the Joomanji is here.

BobEore's picture

Ha ha ha!

"For full background on this stunning case, read here"///

after IGNORING THE CASE OF REZA ZARRAB for the ENTIRE YEAR,

EVEN after spirited readers made every effort to offer the needed catch up... to our crew of BLOOMBERG SUBSCRIPTION sub-distributors...

https://storify.com/SuaveBel/part-eight

...the case of the Century - just like the PHONY coup of 2016
continued to languish unnoticed in the news feeds of the 'alt' flavor of the ONEMEDIA.

Now that we have your attentions...

For full background on this stunning case, read here:
https://storify.com/SuaveBel/gold-for-oil-oil-for-blood-part-two

Mike Nomad Truth Jihad - watch the ONEMEDIA RUN HIDE under da bus!

Wage Slave 927's picture

This is the week to say that the Turkey is cooked!

y3maxx's picture

My popcorn is at the ready for this show of shows.

Arnold's picture

The King of Pop - forget Michael Jackson, there's never been a better name for a popcorn company - introduced a "Thanksgiving Feast" gift box this year, packed with an entire buffet spread of popcorn.

http://www.houstonchronicle.com/life/columnists/hoffman/article/Turkey-f...

Lanka's picture

Send Preet to Turkey.  Problem solved.

headhunt's picture

Who gives a shit what a muslim dictator thinks.

Pull our military and equipment before this moron confiscates it all.

Son of Captain Nemo's picture

Well when you come right down to it... How much of an abrogation of U.S. law can it be when you are capable of killing your own (http://www.ae911truth.org/) to loot 1/2 of the World's most important viable and cheap oil resources?!!!

Where is Congressman of Illinois Denny Hastert to defend the Turkish government for all the illicit drug money and little boys he "wrestled" when Turkey was on our side in the "war on terror" right before Erdogan got betrayed?!!!

Or for that matter The "Dick" Cheney and G.W. Bush???!!!

Son of Captain Nemo's picture

And these just in which certainly "are not" coincidence!

https://www.rt.com/news/410395-turkey-nato-membership-reconsider/

https://www.rt.com/politics/410382-foreign-ministry-warns-russians-on/

Turkish Lira ain't the only thing(s) that will be "crashing" once the "League of Extraordinary Gentlemen" pull the tablecloth from underneath the dinner guests "plates"!

https://www.rt.com/business/410375-merkel-euro-drops-coalition-germany/

shizzledizzle's picture

Did they ever find the guy or is he still MIA?

SybilDefense's picture

Call me when they expose (or should I say Prosecute) the secret gold manipulator bank bastards.  There would be a story I would care about

Arrest Hillary's picture

Gold must really be feared by the Ponzi masters .... they suppress it so .... then they deny the suppression (suppress news of the existence of the suppression) ?

bshirley1968's picture

Turkey has been cozying up to Russia just a little too much.

Their currency and i.e. bonds are getting the "Venezuela" treatment.  Another secondary player that will be pushed into the arms of the Russian/China alliance?

If war doesn't break out soon, I am going to start thinking this is all an intentional plot by TPTB. 

P.S. This stuff happens when our let brown skinned people named Preet into your legal system.

Herodotus's picture

Turkey needs to re-establish its rule over Saudi Arabia.

11b40's picture

Yep, and Preet Bharara’s successor "Joon H. Kim" is now continuing case in same manner. 

 

Another fine WASP family member upholding the Western justice system.

Arrest Hillary's picture

Trofim Lysenko thought wheat would learn to grow on frozen earth .... the FED thought people would forget about gold if we gave our gold reserves away .... socialists thought people would learn to love socialism if they were forced to live it .... Democrats think violence would go down if guns were illegal .... sociologtists thought we would learn to like niggers if we were forced to live with them ?

Grandad Grumps's picture

Satan thought we would forget God ...

Grandad Grumps's picture

Any.way you slice it, the problem is corrupt government. Should I really care which one?

Enginer01's picture

A New  Kind of False Flag

I often dissagree with The Washington Post, but in this case they are correct.   Fethullah Gulen, may have had in mind a coup, but Erdogan let it proceed even tho he knew it was developing.  Then the swift response, the thousands of arrests, the taking over of all power, directed carefully to let Erdogan become the latest Islamic dictator, destroying a secular country to promote one religion.   The latest "Designated Survivor" shows how trump SHOULD handle the destruction of Turkey and the attack on Gulen.  

66Mustanggirl's picture

Ahhh yes.....Fetullah Gulen. The guy with a $50 billion organization who has his tentacles wrapped around every aspect of American life, from ties to national, state, and local politicians to every entity of the Deep State and Washington Establishment, he makes George Soros look like a rank amateur choir boy. Never heard of him? Don’t know anything about him? You should probably ask yourself why. And then do some research.

I would start with anything by Sibel Edmonds. Mr. Gulen and his 50 billion dollar organization just placed her squarely in their crosshairs this weekend. You might want to find out why that is.

shortonoil's picture

Gulen, is that a Russian name? According to the new Matrix standards it has to be Russian to be a foe of the US. One would think that Erdogan would know that?

fearnot's picture

Lest we forget that SDNY is same district of NY Fed.
Perhaps Dudley will testify and reveal that the gold Turkey
sent to Iran was gold the cabal had planned to steal
From Erdogan had the failed coup attempt been successful

https://en.m.wikipedia.org/wiki/United_States_Attorney_for_the_Southern_...

Brazen Heist's picture

The entire premise of a bunch of self-important chosenites imposing sanctions on countries like Iran, who have been at the receiving end of much Neocon bullshit, is ridiculous.

US sanctions are sanctimonious horseshit.

Hopefully cryptocurrencies will enable everyone to bypass them much easier in the future.

The empire can't hold a candle when it comes to the hypocrisy of terrorism support.