America’s Syrian humiliation is worse than it looks Turkey’s attack

Republish
Reprint

A Syrian opposition fighter takes a selfie as fighters walk through Syria in front of Turkish troops near the Syrian border at Hassa, Hatay province, on January 22, 2018. Photo: AFP/Bulent Kilic

A Syrian opposition fighter takes a selfie as fighters walk through Syria in front of Turkish troops near the Syrian border at Hassa, Hatay province, on January 22, 2018. Photo: AFP/Bulent Kilic
Middle EastSyria

America’s Syrian humiliation is worse than it looks

Turkey’s attack on US-backed Kurds this week comes as a new set of economic relationships emerges to bankroll Ankara’s regional ambitions

By David P. Goldman

Turkey’s “Olive Branch” incursion against Kurdish positions in Northern Syria this week looked bad for Washington. It’s worse than it looks: Turkey cemented a new set of strategic and economic relationships after defying the United States, its erstwhile main ally. Ankara now has financial backing from China and Qatar and the strategic acquiescence of Russia and Iran. Most of all, it has the financial backing to pursue its regional ambitions.

Turkey reportedly killed several hundred Kurdish and allied Arab fighters this week, reducing an American-supported force that had done most of the fighting against ISIS in Syria. US-Turkish relations are at an all-time nadir, but Turkey’s financial markets remain unruffled. Washington has hard words for Turkey, but no sticks and stones.

Money is the decisive variable for Turkish President Recep Tayyip Erdogan, whose domestic position depends on his ability to hand out economic benefits in the traditional style of third-world dictators. During 2016, Erdogan spurred Turkish banks to increase their lending to business and consumers, and set in motion a credit boom that inevitably led to a bigger trade deficit.

Turkey loan growth soars

Turkey’s trade balance widens

Import booms driven by credit-fueled demand have been the undoing of Turkish markets in the past. This time is different. Turkish stocks have risen during the past month, right through the week of the “Olive Branch” offensive, and the cost of hedging the Turkish….More Here

Click here for reuse options!
Copyright 2018 Hiram's 1555 Blog

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.