The Islamist terror state tyranny is having a bad day in the financial markets.
Turkey’s lira took centre stage, pushing through the key 5 to the dollar level overnight to hit a fresh record low after Washington imposed sanctions on two Turkish ministers over the trial of an American pastor. Ankara has vowed to retaliate.
The battered currency has dropped nearly 5 percent in the past four sessions and has tumbled more than 25 percent since the start of the year. Turkey’s dollar-denominated bonds tumbled across the curve with many issues dropping nearly 2.5 cents, while credit default swaps soared to 6-1/2 year high.
The sharp deterioration in relations with Washington is just the latest tremor rippling through Turkish markets. Investors have been spooked by the president pushing for lower interest rates in the face of stubbornly high inflation and appointing his son-in-law to oversee the economy while ousting more familiar and market friendly faces, as well as a plethora of geopolitical tensions.
Turkey has never been this vulnerable. And Erdogan’s decision to pick a fight with America by holding our hostages could not have come at a worse time for the Islamic terror state of Turkey.
Instead of releasing Pastor Brunson, after Trump’s warning, Turkey’s Islamic regime doubled down.
Turkey “will never tolerate threats from anybody,” Foreign Minister Mevlüt Çavuşoğlu said after US President Donald Trump tweeted to warn Ankara about “large sanctions” over the arrest of Andrew Brunson, an American pastor being tried on terrorism and spying charges.
Earlier on July 26, President Trump said “The United States will impose large sanctions on Turkey for their long time detainment of Pastor Andrew Brunson.”
He described Brunson in his tweet as “a great Christian, family man and wonderful human being.”
“He is suffering greatly. This innocent man of faith should be released immediately!” Trump added.
U.S. Vice President Mike Pence also said on July 26 “the United States of America will impose significant sanctions on Turkey” if Brunson is not freed.
“To President [Recep Tayyip] Erdoğan and the Turkish government, I have a message, on behalf of the President of the United States of America. Release Pastor Andrew Brunson NOW or be prepared to face the consequences … If Turkey does not take immediate action to free this innocent man of faith and send him home to America, the United States will impose significant sanctions on Turkey until Pastor Andrew Brunsonis free,” Pence said in two consecutive tweets.
Turkey didn’t want threats. Instead, it’s getting consequences.
The White House announced Wednesday they have instructed the Treasury Department to implement sanctions against Turkey’s Minister of Justice and Minister of Interior for their roles in the arrest and detention of American pastor Andrew Brunson.
And that’s a start.
Article posted with permission from Daniel Greenfield