Monday, September 26, 2016

Waging Financial Warfare Against Turkey- Downgraded to Junk Status

This was in the news late last week: 
Couldn't get to it then, however, it's important and worth addressing now!

September 23/2016- Moody's Downgrades Turkey's Issuer and Bond Ratings

Fortune
Credit ratings agency Moody’s Investor Service has downgraded Turkey’s sovereign credit rating to non-investment grade citing worries about the rule of law following an attempted coup, risks from external financing and a slowing economy.
Turkey's GDP has been excellent compared to the US (no exact figure, but am certain it's poor) & Canada ( Canada: 2ndquarter:  - 1.6, yes that negative 1.6 )... So why did Moody's undertake this action against Turkey.  It's purely political!  Surprise!
“Despite all of the global and regional risks, the Turkish economy’s pace of growth is among the top five economies,” he said in a statement.

Gross domestic product slowed to 3.2% growth in the second quarter. Turkey may cut its official target for 4.5% GDP growth this year as the impact of the coup attempt takes its toll on the economy.

Moody’s downgraded Turkey to “junk status
Turkey has seen little outflow of funds following Moody's decision to cut its sovereign debt rating to "junk" and sees the possibility of such outflows as remote, Deputy Prime Minister Numan Kurtulmus said on Monday.

Kurtulmus, the main government spokesman, made the comment at a news conference following a cabinet meeting in the capital Ankara.
Moody's late on Friday cut its rating on Turkey's sovereign debt to non-investment grade, citing concerns about the rule of law following a failed coup in July and risks from a slowing economy. Kurtulmus said the move was political motivated.
Obviously the move was politically motived! Turkey is under attack on many levels, as stated here for so, so, so very long now!

Of course today Turkish Assets were hit in early trading
Turkish assets were hit in early trade on Monday, with the benchmark BIST 100 index falling more than 4 percent and the lira currency weakening.
 Financial warfare waged against a targeted nation! We've all seen this type of news previously!

In case you missed the UN show on Sunday:

 

 

7 comments:

  1. I noticed the S&P action earlier, but missed the Moodys effort. Of course it's pressure !

    Kremlin
    "We point out that the tone of rhetoric by some British and US officials is generally unacceptable. "We believe that such rhetoric can cause great harm to the settlement process and our bilateral relations."

    http://tass.com/politics/902206?_ga=1.176448293.1024142884.1474892107

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    Replies
    1. worrisome is my word for that over the top rhetoric!

      Delete
  2. https://sputniknews.com/middleeast/20160926/1045706456/us-airstrike-daesh-army.html

    Reminds of the alleged tapes that Assad had of a Middle East Royal that it threatened to release many years ago. Also reminiscent of the Turkish transcripts leaked about the planned Turkish operation on the tomb

    2014, March
    http://www.ibtimes.co.uk/turkey-youtube-ban-full-transcript-leaked-syria-war-conversation-between-erdogan-officials-1442161
    http://www.cnn.com/2014/03/23/world/meast/syria-civil-war/
    https://en.wikipedia.org/wiki/2014_Latakia_offensive

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    Replies
    1. Just an appetizer. BBG all over the China capital flight stories again and the housing echo bubble with rogoff who just wrote a book on banning cash says China hard landing the latest 'new' risk to the world. UN gets it right.

      o “The next economic crash may be the last warns trade economists at the United Nations cautioning that the next global recession could quickly get out of control plunging the world into an economic depression and resulting in a post-apocalyptic failing of major governments as the world’s bond market teeters on the precipice of a full-on meltdown.”

      Delete
    2. The spokesperson said the terrorists have set on fire oil fields in and around the city of Qayyarah, located south of Mosul.

      Read more: https://sputniknews.com/middleeast/20160923/1045645435/daesh-us-mosul.html

      Delete
    3. KYIV CONCEALS INFO ON BOEING 777 DISASTER, FLIGHT WAS FOLLOWED BY UKRAINE'S RADARS, AIR DEFENSE FORCES - RUSSIAN DEFENSE MINISTRY

      on topic of airstrikes

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    4. Anonymous: thanks for all the comments

      and this in particular

      "The next economic crash may be the last warns trade economists at the United Nations cautioning that the next global recession could quickly get out of control plunging the world into an economic depression and resulting in a post-apocalyptic failing of major governments as the world’s bond market teeters on the precipice of a full-on meltdown.”

      shudder

      Delete

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