Erdogan's Growing Economic Woes
Some would call this a bubble:
Since late 2009, Turkey has lost $20 billion of foreign bank assets and taken on $50 billion of foreign bank debt
As we reported Aug. 3, Turkey's banks are still churning out consumer loans at a 30% annual rate, probably to capitalize the interest on loans bearing an 18% interest rate. The current account deficit is running at about $70 billion a year, which means that Turkey's banks will have to double their net external debt position to finance it. The Bank for International Settlements data (whence the chart was drawn) show no lending to Turkey from the rest of the OECD. We believe the money is coming from the Gulf states, whose largesse is not infinite.
Turkish exports declined last month as contracting European markets and adverse exchange rates mainly affected the performance of key automotive and textile sectors.
Turkey's exports declined 5.5 percent year-on-year in June to $10.85 billion, the Turkish Exporters Association (TİM) revealed yesterday, while exports posted a year-on-year increase of 3.6 percent in June.
"The biggest reason for exports decline in June was the shrinking demand in the automotive market. Automotive exports plunged by 22.3 percent. Also the ready-to-wear [retail] sector declined 12 percent as a result of shrinking demand. We are carefully following the declines in our flagship exports," Economy Minister Zafer Çağlayan said yesterday, according to Anatolia news agency.
Erdogan's authority stems first of all from his reputation as an economic wizard, a story which the world continues to buy. Why anyone would buy Turkish banks under the circumstances is a mystery to this former banker, but bubbles, as they say, last until they feel like fundamentals.
An imploding domestic credit bubble, constraints on foreign borrowing, soaring food prices and declining exports look like a toxic combination for Erdogan.
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by Ben Cohen
Now, with the Islamic State's self-proclaimed caliphate having captured key oil wells in the Middle East this year, foreign oil has become an even more lethal financial weapon-of-choice for those seeking to destroy democracy and further escalate the War on Terror.
That President Barack Obama failed even to mention oil as a critical factor in the war against IS during his speech to the nation on September 10, is an omission both revealing and dangerous in terms of how his administration wants to depict the stakes involved in this latest confrontation with the jihadis.
by Lawrence A. Franklin
One Pakistani recruiter of child suicide bombers describes these children as "tools provided by God."
Another Muslim cleric in a madrassa [Islamic boys' school] describes child suicide bombers as "a gift from Allah that we have an unlimited number willing to be sacrificed to teach Americans a lesson."
Using children as suicide bombers will stop when... they stop "condoning the killing of innocents."
by Denis MacEoin
"No religion condones the killing of innocents." — U.S. President Barack Obama, September 10, 2014.
"Islam is a religion of peace." — U.K. Prime Minister David Cameron, September 13, 2014.
"There is a place for violence in Islam. There is a place for jihad in Islam." — U.K. Imam Anjem Choudary, CBN News, April 5, 2010.
Regrettably it is impossible to re-interpret the Qur'an in a "moderate" manner. The most famous modern interpretation by Sayyid Qutb (d. 1966), the Muslim Brotherhood ideologue, leads the reader again and again into political territory, where jihad is at the root of action.
If they deviated from the true faith -- as we are seeing in the Islamic State today -- "backsliders," like pagans, were to be fought until they either accepted Islam or were killed.
In India alone, between 60 and 80 million Hindus may have been put to death by Muslim armies between the years 1000-1525.
by Yaakov Lappin
Hamas's long-term ambitions are indistinguishable from those of Islamic State and al-Qaeda.
Hamas will now focus on its next goal -- trying to strengthen its presence in the West Bank and eventually toppling the Palestinian Authority from power there, just as it did in Gaza. If Israel were to withdraw from the West Bank, Hamas would certainly find such a goal easier to accomplish.
Nothing keeps the flames of jihad alight, and Hamas's popularity secure, like frequent wars.
by Alan M. Dershowitz