US wages economic war on Turkey etc

Posted by in Development, Economics, Politics

The US has adopted sanctions as a standard tool for global economic aggression, with no consideration of the risks this imposes to other nations and likely global fallout. Turkey, subjected to sanctions due to a minor diplomatic dispute over the detention of a single American pastor, is now tipping rapidly towards a major crisis. With their currency down 30% this year, yields on (cost of) long term debt over 20% and annual inflation above 15%, the Turkish people are suffering – and this crisis will get much worse before they see any upside.

Crazy unilateral moves like this are the new normal in Trumpian America. It seems the US’s new rulers like the scenario of crumbling developing economies and global investment flowing back to US dollars for safety, keeping US deficit/debt costs low. This really is “America First”.

More detail on Turkey’s economic problems can be found here on

Related, see here on rising concern among investors that there isn’t enough liquidity in the global debt market, ie when they all rush to sell as risk rises there won’t be any buyers – then cost of debt will really rise…

Finally, the pressure on large European companies with global supply chains to comply with American-imposed sanctions is discusseded here in a discussion of America’s unilateral re-imposition of sanctions on Iran.