Turkey Talk

A couple points about Turkey, first from  Monty L. Donohew at American Thinker.

When there is war, conflict, or instability, vulnerable human beings flee, seeking refuge in safer countries. […]

When there is war, conflict, or instability, vulnerable capital and wealth also flee. The “problem” of fleeing capital is different, however. Because capital and wealth are not as encumbered and physically restricted as are human beings, especially in the modern electronic age, capital moves far from the source of instability. Capital flight makes support of human refugees even more difficult, as capital often flees nations burdened with the obligation of support, nations in close proximity to the underlying cause of flight.

Unlike human refugees, who consume resources and capital, fleeing capital is welcome with inviting arms by safe havens. Capital and wealth must “go somewhere,” and if they land in the banks and markets of a particular nation, that nation reaps the reward of that investment.

Pretty much common sense to my mind, although it is anything but common these days.

And who is the strongest of all these days? I’d be inclined to say the United States, and it has the other advantages of being a known safe haven for money and people, with perhaps the strongest rule of law tradition in the world, the largest and most active markets, and by far, the strongest military (which it is strengthening) to back it all up.

Think some Turks (and Iranians, for that matter) are looking to get themselves and their money into America. Yep. Me too. And that also strengthens America, and against all comers.

Consider the many causes of the flight of capital in recent years. Are competing markets as strong and stable as they were seven years ago, and more importantly, are they as strong and stable as is the U.S. market? Capital is fleeing Canada. Capital is fleeing China (strange — people who command wealth get a bit skittish when several hundreds of their kind simply disappear). EU instability has caused capital to flee Europe (link behind subscription wall). Capital has flown from India. Capital has flown from Russia, although early indications are that new Trump sanctions may not encourage additional capital flight. Capital is fleeing Latin America. There are a multitude of examples, but the point is, too, that capital is not fleeing the U.S.

Not all capital flight winds up in the U.S., of course, but it’s safe to say that a good percentage is winding up here. Simple economics: more money chasing the same goods or investment opportunities causes prices to increase. With share prices high, companies can grow, expand, modernize, and invest. The investment increases the value of companies, generates returns for investors, and generates revenues for the U.S. government.

And this may well be where the conventional wisdom on tariffs and economics falls down, not my field, but it sounds rational, and people with money are usually somewhat rational.

Jed Babbin writing in The American Spectator also had a few things to say about the Sick Thug of Europe.

It [The Wall Street Journal] wonders why the United States, which usually intervenes to calm global markets, isn’t doing so to save Turkey from itself.

The answer is so simple that even the media ought to understand. Turkey, a NATO ally, has for over a decade treated us as an enemy instead of a friend. President Trump is beginning to return the favor. What Turkey has done, and Mr. Trump is starting to do, is all the result of the actions of Turkey’s President Recep Erdogan who has created an Islamic quasi-dictatorship where a secular democracy once stood. […]

Erdogan’s New York Times article concludes that, “Before it is too late, Washington must give up the misguided notion that our relationship can be asymmetrical and come to terms with the fact that Turkey has alternatives. Failure to reverse this trend of unilateralism and disrespect will require us to start looking for new friends and allies.”

Erdogan has already done so. His alliance with Russia and Iran to save Assad demonstrated conclusively that he is no longer America’s ally. It is entirely inconsistent with Turkey’s obligations as a NATO member.

President Trump has, so far, neither knuckled under to Erdogan’s demands nor taken all of the actions that he could to force Erdogan to stop acting as our enemy. That may be changing.

The Turkish economy is in shambles, almost in as bad a situation as Iran’s and Venezuela’s. The Turkish lira fell in its value against the dollar by about forty percent earlier this year. Last week, Trump announced that he was doubling the tariffs on steel (to 50%) and aluminum (to 20%) imported from Turkey, which caused the lira to sink by another twenty percent and made international banks that hold Turkish debt very nervous.

I don’t need to add too much to that although you should read all of both articles, they are excellent. But Erdogan would be well advised that one of the quickest ways to ruin a nation is to attempt to tell the United States what to do. Even King George, a quarter millennium ago, found that to be a bit more than the British Empire could accomplish. That’s a history lesson Erdogan could contemplate to the benefit of his citizens.

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About NEO
Lineman, Electrician, Industrial Control technician, Staking Engineer, Inspector, Quality Assurance Manager, Chief Operations Officer

10 Responses to Turkey Talk

  1. Scoop says:

    Well good luck with Russia as your new best friend, Erdogan. Maybe this song will rekindle the memories of your past relationship with Russia and the hatred between the two countries.

    Liked by 2 people

    • NEO says:

      Indeed, a weak reed to cling to.

      Liked by 2 people

  2. Scoop says:

    Yeah, there isn’t much love between those two peoples.

    Liked by 2 people

  3. the unit says:

    Leash laws have worked well in our community now for 30 years. Dogs used to be turning over our garbage cans nightly. ErDOGan. 🙂

    Liked by 1 person

    • NEO says:

      Indeed so. Applicable, too! 🙂

      Liked by 1 person

      • the unit says:

        Liked by 1 person

        • Scoop says:

          There are worse things than being a hound dog, Unit. My redbone hound Fred is very offended that you want to put him on a leash as well. He ain’t never caught a rabbit either but he’s still better company than most of my neighbors. 🙂

          Liked by 3 people

        • the unit says:

          I see your point. Best regards to Fred. 🙂

          Liked by 1 person

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