Turkish Lira Tumbles As Erdogan Threatens Moody's With An "Operation"

While S&P faced being 'black-called' after daring to downgrade US sovereign rating in 2011, Moody's decision to (rightfully) downgrade Turkey to 'junk' (and warn on its banking system) has prompted a direct threat from the country's strongman leader.

In September 2016, rating agency Moody's cut Turkey's sovereign credit rating to Ba1 or "junk" from Baa3, citing worries about the rule of law after an attempted coup and risks from a slowing economy, in a move that could deter billions of dollars of investment. "The drivers of the downgrade are ... the increase in the risks related to the country's sizeable external funding requirements (and) the weakening in previously supportive credit fundamentals, particularly growth and institutional strength," Moody's said in an e-mailed statement.  "The government's response to the unsuccessful coup attempt raises further concerns regarding the predictability and effectiveness of government policy and the rule of law."

The cut is Turkey’s second since a failed (or as some claim orchestrated) coup in July threatened to destabilize national security.

And since then the capital flight has been significant and the currency has collapsed, not helped by Moody's decision in to put Turkey's Ba2 rating on review for downgrade...

Which has pissed Erdogan off and today he lashed out in the most aggressive manner yet.

“God willing, we will conduct an operation against Moody’s after June 24. Moody’s is making unnecessary statements despite the fact that we are not a member of it. What a shame,” state-run Anadolu Agency cites President Recep Tayyip Erdogan as saying.

"Moody’s is taking steps to defame Turkey, to put it in a difficult situation...It will not succeed”

The response in the market was quick - selling of the Lira - erasing much of the spike from the big rate hike...

We would stroingly suggest any local Moody's reps leave the country - Erdogan seems to have no problem arresting and detaining anyone for anything.

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Comments

A Sentinel sheikurbootie Thu, 06/14/2018 - 12:01 Permalink

And 

an Albanian 

a Macedonian 

A Bulgarian

a Croat 

a serb

a Montenegrin

a Hungarian 

and oh so many more.

fuck erdogo and fuck turkey.

[edit for those of you morons that don’t get it, those are just a FEW of the countries who’s populations were raped, enslaved and murdered by the Turks - some under their boot UNTIL world war 1.

Assholes.]

In reply to by sheikurbootie

inhibi RedBaron616 Thu, 06/14/2018 - 19:24 Permalink

You really only see fiat worth nothing in 3rd world countries, or after massive upheaval like war/famine/revolution.

Pretty rare for fiat to be worth nothing for long periods of time. Barter economies dont work out that well, especially these days.

And no, BTC wont stop anything in this case. If SHTF, like real SHTF, all cryptos would be worthless 1st and foremost since they rely on servers and stupidity, two things that are worthless in a post-apocalyptic world.

In reply to by RedBaron616

silverer Thu, 06/14/2018 - 11:58 Permalink

Hey Erdogan. You broke the NATO rules, so now you have to play by the new hardball rules. You will now be treated like a US citizen, lol. I'm curious to see what happens next. You should have waited about four more years for the US civil war, your moves would have been easier to pull off.

EddieLomax Thu, 06/14/2018 - 12:07 Permalink

But last week he told everyone to change their money into lira to spite the foreigners?

Didn't that work?  I'm confused, I'm sure he was first to transfer his wealth across out of the evil US dollar too.

owencamo Thu, 06/14/2018 - 12:42 Permalink

Sell your gold and buy the Lira why dont ya Ergo? Otherwise, shut up and focus on more important problems, like organ harvesting off the Syrian boarder.

pocomotion Thu, 06/14/2018 - 13:06 Permalink

Trade wars abound.  Get your relatives mentally ready to be drafted into military services, very soon.

Like clockwork -- the repeatable plan for world war takes flight.