Turkey braces for hard times amid currency crisis, US spat

Thursday, August 16, 2018 | Tag Cloud Tags: , , , , , , , , , , , ,

(Worthy News) - Some Turks are reacting with defiance to their plunging currency and an escalating trade and political dispute with the United States - an indication that they are ready to endure economic pain and risk further deterioration in a key, yet troubled alliance dating from the Cold War.

Analysts question the effectiveness of any Turkish boycott of U.S. goods and view Turkey’s tit-for-tat taxes - imposed Wednesday on American exports, including cars, tobacco and alcohol - as mostly symbolic because they have relatively little value to a global trade giant engaged in similar disputes with China and other major economies. But the Turkish government’s framing of its problems as an epic battle for sovereignty against outside enemies, particularly U.S. President Donald Trump, resonates among core supporters, even as fears grow that further falls of the Turkish lira could threaten bankruptcies among Turkish firms carrying high foreign currency debt.

While Turks who propelled Erdogan to election victory in June recognize they could face hardship, there is little domestic criticism of a leader who presided over years of debt-fueled growth that drew warnings of a looming bust and currency crisis. Turkey is deeply divided between Erdogan’s pious Muslim base and secular Turks who once held sway over the country, but opposition voices have been mostly muted as Erdogan, who has concentrated power in a new presidential system of government, projects an image of a righteous state under siege. [ Source: Washington Times (Read More...) ]

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