On Monday, Rick Santelli and I unpacked a great deal in the few minutes we were allotted on CNBC. The Turkish story remains a key to the global financial markets. The U.S. equity markets interpreted that as all-clear, and the narrative of a dynamic U.S. growth story sustains itself.
(Click on the image to watch me and Rick talk Turkey.)
Tags:capital controls, President Erdogan, Turkey, Turkish lira, U.S. equity markets
Posted in Currency, Equity, Turkey | 19 Comments »
For a long time now, we at NOTES FROM UNDERGROUND have been discussing the danger of Turkish President Erdogan in his role as a potential disruptor to stability in the Middle East. Last week’s violent action in Turkey’s stock and currency markets is just one element of the instability for which Erdogan can be held responsible.
Tags:ECB, Erdogan, Kurds, Mario Draghi, Middle East, NATO, Turkey, Turkish lira, U.S. Dollar
Posted in Debt Market, Turkey | 7 Comments »
The question for the political uncertainty confronting global markets will be the rollback of the U.S. influence via the reduction of its presence in various regional treaty agreements. Trump’s “faux pas” over Taiwan should cause the entire NATO structure to be reviewed. The ONE CHINA issue was pledged by the Nixon/Kissinger framework forged during the détente with China. The People’s Republic of China maintained that Taiwan’s independence was a domestic affair and should be resolved by the Chinese people. But the bottom line for the U.S. was: Would Washington risk a thermonuclear war to maintain Taiwan’s independence? Well, a similar question is relevant today in regards to Turkey. Would the U.S. risk war with Russia if Vladimir the Magnificent attacked Turkey in an effort to further destabilize the Middle East, resulting in a greater Iranian presence and further strengthening the KURDS?
Tags:China, Erodgan, Euro, Kurds, NATO, SNB, Trump, Turkey, Turkish lira
Posted in Currency, Turkey | 10 Comments »
First, bravo to the Bernanke Fed for staying the course and learning from its September mistake: Don’t mislead the markets with a sudden change of direction. It appears that the Fed will provide investors with enough “forward guidance” if they wish to alter the market’s perceptions. FOMC members had plenty of time to dissuade traders if the recent slew of tepid data was going to steer Bernanke and Company away from another cut in QE purchases. The FED erred on the side of consistency rather than swerving to avoid the skidding emerging markets. Again, a FED pause would have further roiled a very nervous global financial market.
Tags:Brazil, current account deficits, Fed, FOMC, Mexico, New Zealand, Peso, QE, rand, Real, ruble, Russia, South Africa, Turkey, Turkish lira, Wheeler
Posted in Currency, Emerging Markets, Fed, RBNZ | 21 Comments »
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