Yes when I wrote the blog entry the coup had started – but due to reading various items off mainstream media – it was obvious that this was not a full blooded coup – otherwise Erdogan would have been deleted at the hotel he was staying at – or in the air when he was transported to a safe haven – as two Turkey Air Force fighter jets decided to join the existing jets escorting the President.
There is no better plan for Erdogan now – to rid Turkey of all ‘his’ detractors – the process has started and it will be painful for those that do oppose him.
And with these events now crystalized – there will be no entry into the European Union.
Well Pierre’ – yes fully aware of the commotion on the Italian banks and their non-performing loans.
But please speak to an Italian ‘in the know’ and their comment would be “what’s new?”
Yes regret to inform all and sundry it is nothing new – I was amazed with the countries Debt to GDP ratio a few years back – after the research realized that for some reason this country just plods along with these debts – so ‘what’s new?’
Now of Deutsche Bank – yes derivative exposure high and share price low – not single digit yet!
When at single digit time to panic.
But I fear two things will happen – Germany will stand behind the Bank – as Switzerland did with Credit Suisse – or the European Central Bank will intervene in all European banks.
Why the Banksters win – Politicians corrupt – Osborne’s letter proof of the global ignorance and blatant corrupt attitude of politicians.
Image extracted from chrissprivey.org
I read the Guardian’s “HSBC escaped US money-laundering charges after UK intervention” (1) and realized all governments and all politicians are corrupted self serving arse-wipes.
How bad was the corruption to prevent actual prosecution?
“The US government decided not to pursue criminal charges against HSBC for allowing terrorists and drug dealers to launder millions of dollars after George Osborne and the UK banking regulator intervened to warn that prosecuting Britain’s biggest bank could lead to a “global financial disaster”.
On Monday, a congressional report published letters and emails from Osborne and Financial Services Authority (FSA) officials to their US counterparts warning that launching criminal action against HSBC in 2012 – could have sparked a “financial calamity”.
So that letter – how bloody blatant is the interference by the British government and the veiled threat within the letter – full copy below extracted from the 288 page report available through this link. (2)
Notice as to whom was involved in the U.S. – my favorite stupid central banker and the corrupt Timmy. Amazing that these people are still held in high regard – is it not about time that politicians were held accountable for their actions?
Content note: this post discusses border violence, benefits violence, rape, violence against women
It is looking remarkably like Theresa May might be the next Prime Minister, elected by the approximately 0.3% of the population that are members of the Tory party. I would have expected widespread terror at this option, but apparently most liberal white feminists simply seem excited that there might be A Lady in power: Suzanne Moore, for example, is excited:
The pathetic scope of the media feminism has never been more apparent. Theresa May as PM would be bad news for pretty much every woman in this country, and all that would trickle down from her would be death and despair. Let’s have a little look at some of the terrible things she’s done which are harmful towards women.
While Theresa May cannot be given full responsibility for having opened the place–that honour goes to Tony…
Abe and Bank of Japan deluded – another round of fiscal stimulus on the way.
Well – Yen dropped Nikkei soared – oil dropped and he won the upper house election in a landslide and immediately announced that he would add further fiscal stimulus – that is – “to continue Abenomics and try to succeed in his aim of bringing the Japanese economy back to life, as well as increasing inflation,” said Commerzbank currency strategist Thulan Nguyen, in Frankfurt. “That is causing the yen slide at the moment.” (1)
This stimulus is reported to be around 10 trillion yen – around $98 billion.
At this point I think Abe and Bank of Japan should study history – yes it is a historical fact that all stimulus programmers implemented in Japan have failed – akin to the definition of insanity – the full set of attempts are listed in Wikipedia (2) – in the -1990’s I counted ten then gave up.
Anyway good luck with latest the attempt against a backdrop of global trade declining – weak Japanese machinery orders – weak theoretical foundations plus – global inflation and trade well below expectations – it is called ‘global deflation’.
Now do not get me wrong – financial stimulus via Keynesian policies can work – even though this is contrary to Hazlitt’s dissection of Keynes General Theory (1959) – plus Misis and – but and you know I love buts – the stimulus as originally theorized should be implemented – without government interference whatsoever – well – good luck with that.
None of this however should be a surprise – Japan is different – there will be a short term benefit – one to two months – as demonstrated with negative interest rates – thereafter due to their policies and demographics failure will follow – they never learn and now I will label them stupid.
Yes stupid is as stupid does – one of the most stupid central bankers Ben Bernanke is giving Abe advice – and notice I said one – there are plenty of stupid central bankers out there.
And on a final note – I understand that Abe did not get the absolute majority to change Japan’s constitution – so the warmongers can stop partying – it is now all about the Yen.
One wonders whether the phrase keep your friends close but your enemies closer is apt in the circumstances.
Sanctions hurt both ways – granted the sanctions imposed by the EU and USA on Russia are illegal – as these were never ratified by the United Nations with the financial impact of Moscow’s retaliation – reported to cost Europeans in excess of 100 billion euros in economic development and jeopardize up to 2.5 million jobs – a study by Global Research disclosed in June 2015. (1)
When Turkey duck-dived and shot down a Russian jet in Syrian territory – in November last year – Russia imposed economic sanctions against Turkey – something that Erdogan – President of Turkey – nor one President Obama – did not calculate into his equation.
Turkeys actions were tantamount to a declaration of war – but the political outcome by Russia served Erdogan – ‘roasted’ turkey for Christmas – Putin and Medvedov tack – of imposing sanctions on Russian tourists to Turkey – and import of fresh fruit and vegetables from Turkey – created huge economic consequences in just December 2015 alone – the subsequent impact of which was that the US State Department became involved – in late December – imploring Russia to cease these sanctions. (2)
Yes slightly hypocritical of the US State Department and Obama – and reported as such in the Russian media – keeping the anti-Russian sanctions in force ‘to ensure the fulfillment of the Minsk agreements on the Ukraine. (2)
Turkey was suffering – and 2016 and the Economic Policy Research Foundation of Turkey (TEPAV) study – calculated that Russia’s economic sanctions on Turkey will cost Turkey’s economy a (real) loss of $2.3 billion to $8.3 billion in 2016.
“The sanctions are expected to have indirect effects also. While the direct effect in exports, tourism and the suitcase trade is expected to be $2.5 billion (real), the loss in incomes will be double, economists have said.” (3)
Erdogan and Turkey were in a dangerous situation economically – and it was obvious that something had to be done – increase in unemployment – bankruptcies within the tourism industry and ‘that request’ by the big brother to Russia in December 2015 – via the US State Department – falling on deaf Russian ears.
Erdogan had to eat humble pie and in June – mind you it took 7 months since the initial incident took place – that he wrote to the Russian President and apologized for shooting down the Russian plane and the death of the pilot. (4)
So Erdogan realized the folly of his ways and apologized – Russia however has the ball in their court – that apology was one thing – security for its citizens who visit Turkey is another.
“Russia will remove the economic sanctions against Turkey “on a gradual basis,” Russian Prime Minister Dmitry Medvedev said on Thursday.
Speaking at a meeting of the cabinet of ministers in Moscow, Medvedev said economic sanctions against Turkey would be lifted in accordance with the instructions of Russian President Vladimir Putin.” (5)
Gradually – this is an interesting state of affairs – especially in light of the recent terrorists attack at the airport in Istanbul – those terrorists having been by ‘Russians’ who sought refugee status in the EU – principally Germany and Austria – and the EU denied constant extradition requests by Russian authorities on terrorist charges. (6)
Take the EU actions in denying these extradition to Russia – coupled with both the EU and NATO playing silly war games on the Russian borders – with the obvious consent of the US authorities and Obama – then to top that off – the Ukrainian authorities permitting the excursion by right wing soldiers and the Ukrainian military into the Donetsk region of Ukraine – which is against the Minsk agreement. (7)
Mind you the United Kingdom – may well be exiting the EU but as a member of NATO are joining the war mongering folly – by sending troops to the NATO war games regions. (8)
This saber rattling by the NATO will not bode well for those countries involved including Poland – Romania – United Kingdom – Europe and America – whilst both Putin and Medvedev play diplomacy with Turkey – they both are not interested in playing diplomacy with anyone else.
Traditional factors are at play – the game is on a war footing now – just in case you all missed the single important factor on the Russian side – the dismissal of 50 senior officers amongst Russia’s Baltic Fleet – this seems to be a regular historical precursor by the Russian authorities prior to war – the removal of the doves – replacement with the hawks. (9)
As I said – game on – the writer is wondering as to where the initial flashpoint will occur and by whom – regardless of the spark – Putin has already indicated – last September – in Sochi – that their retaliation will be nuclear.
Then we shall see whether the current belated diplomacy by Erdogan – Turkey being a member of NATO – will be all for nought.