Cyprus-Forum.com

[DrCyprus]

The following video, all the way to its dramatic finale, is an accurate representation of what AKP is doing to Turkey at the moment.

[Demonax]

Emerging market rout threatens wider global economy

India’s rupee and Turkey’s lira both crashed to record lows on Thursday following the US Federal Reserve releasing minutes which signalled a wind-down of quantitative easing as soon as next month.
Dilma Rousseff, Brazil’s president, held an emergency meeting on Thursday with her top economic officials to halt the real’s slide after it hit a five-year low against the dollar. The central bank chief, Alexandre Tombini, cancelled his trip to the Fed’s Jackson Hole conclave in order “to monitor market activity” amid reports Brazil is preparing direct intervention to stem capital flight.
The country has so far relied on futures contracts to defend the real – disguising the erosion of Brazil’s $374bn reserves – but this has failed to deter speculators. “They are moving currency intervention off balance sheet, but the net position is deteriorating all the time,” said Danske Bank’s Lars Christensen.
A string of countries have been burning foreign reserves to defend exchange rates, with holdings down 8pc in Ecuador, 6pc in Kazakhstan and Kuwait, and 5.5pc in Indonesia in July alone. Turkey’s reserves have dropped 15pc this year.
“Emerging markets are in the eye of the storm,” said Stephen Jen at SLJ Macro Partners. “Their currencies are in grave danger. These things always overshoot.”

http://www.telegraph.co.uk/finance/fina ... onomy.html

[Kikapu]

The following video, all the way to its dramatic finale, is an accurate representation of what AKP is doing to Turkey at the moment.

The last 30 seconds says it all really!

[Viewpoint]

Doom gloom jow pow Turkey to explode and disappear forever....we have been hearing this for years and years and years yet Turkey good or bad it still around....what does that make the doom and gloom merchants? MORONS. Im bowing out of this thread not because I cant counter your stupidity but all it really appears to be is a stimulas for idiots who get off on claiming Turkeys doomsday which will inturn allow them to crush the TCs and get what they want...which of course is the GC morons way of influencing and winning people over....NOT.

[DrCyprus]

Doom gloom jow pow Turkey to explode and disappear forever....we have been hearing this for years and years and years yet Turkey good or bad it still around....what does that make the doom and gloom merchants? MORONS. Im bowing out of this thread not because I cant counter your stupidity but all it really appears to be is a stimulas for idiots who get off on claiming Turkeys doomsday which will inturn allow them to crush the TCs and get what they want...which of course is the GC morons way of influencing and winning people over....NOT.

You can always go to a Turkish forum and join their circle-jerks on how Turkey is a global power and the golden caliphate of Allah.

[Maximus]

Doom gloom jow pow Turkey to explode and disappear forever....we have been hearing this for years and years and years yet Turkey good or bad it still around....what does that make the doom and gloom merchants? MORONS. Im bowing out of this thread not because I cant counter your stupidity but all it really appears to be is a stimulas for idiots who get off on claiming Turkeys doomsday which will inturn allow them to crush the TCs and get what they want...which of course is the GC morons way of influencing and winning people over....NOT.

You can always go to a Turkish forum and join their circle-jerks on how Turkey is a global power and the golden caliphate of Allah.

We should stop paying him any attention. His last 10 post on this thread have been on repeat like a broken record because he has nothing to contribute. Each post is a different spin of the previous one but the message is more or less always the same.

blah blah the doom and gloom merchants.....blah blah you GC's are morons....blah blah the doom and gloom merchants are out in force again....blah blah you GC's are morons because you are morons and because you are stupid morons. Blah blah....

Bye Bye VP.

[Kikapu]

Some quotes from this Turkish analyst of the Turkish economy in his article.

EMRE DELİVELİ
[email protected]
August/23/2013

Turkish monetary policy broken

Turkish monetary policy is broken! Kaputt, chingado, cassé, bozuk! I’ve exhausted my knowledge of languages, but I think you get the idea. To see why that is the case, let’s go over the monetary policy developments of the last three days.

You may think this upwards revision is redundant, as the daily FX auction amount is a floor, but it seems the Bank is playing game of chicken with markets. They are hoping that if the amount announced in the morning does not stop lira depreciation, a higher amount will work. And if markets know that the minimum amount may be revised, they may not dare to bet against the lira in the first place.

The Bank has not learned the painful lesson that you cannot usually intimidate markets, especially with a small gun. The Central Bank has net reserves of only $50 billion. In fact, in line with the new rules, the Bank announced on the morning of Aug. 22 that it would sell minimum $350 million that day, and it ended up selling that amount. Lira dollar exchange rate hit an all-time high right afterwards.

If FX pressure were temporary, sales might have helped, but it is not. Given the Prime Minister’s dislike of high interest rates, the Bank is doing the best it can to delay a large hike, but we’ll probably end up with very high rates eventually.

http://www.hurriyetdailynews.com/turkis ... sCatID=430

[Viewpoint]

So when are the predictions that Turkey will explode and the GCs will take control of the whole island?

[Demonax]

I’m bowing out of this thread...

Looking forward to it...

[Demonax]

From the Wall Street Journal:

Turkey Plays Chicken With Markets

As the going gets tough, the fragile get left behind. Emerging markets are suffering as taper talk around the Federal Reserve grows. Countries with high current-account deficits that have become addicted to abundant global liquidity are suffering more than most.

Turkey is a prime example. Its stock market fell nearly 9% last week while the lira hit record lows against the dollar, despite the central bank raising rates and burning through foreign-exchange reserves.

The failure to stem the lira's slide reflects in part the deepening complexity of the central bank's own policy. For some time, it has operated an interest-rate corridor, providing funds between its one-week repo rate at 4.5% and its overnight lending rate. It just increased the latter by 0.5 percentage point, to 7.75%. But the higher rate will only apply to primary dealers on "extraordinary" days. On other days, they can get overnight funds at 6.75%, creating "an interest-rate corridor within an already existing corridor," as J.P. Morgan Chase puts it. Whether the central bank has actually tightened monetary policy depends on how often it decides a day is "extraordinary."

Policy makers are left in a quandary. The current-account deficit was running at 6.5% of gross domestic product at the end of June, and Turkey relies on portfolio inflows to fund nearly all of it. Higher rates would help keep capital flowing in and help tame inflation. The central bank should raise its upper lending rate by a further 1.5 percentage points this fall, Royal Bank of Scotland says. But that would put it at odds with Ankara, which doesn't want to choke economic growth and has railed against what it calls a foreign-backed "interest-rate lobby."

Emerging-markets investors shouldn't count on much delight emanating from Turkey.

http://online.wsj.com/article/SB1000142 ... 25142.html