By Rauf Baker, November 18, 2020
EXECUTIVE SUMMARY: Turkey’s relations with Germany have always been privileged, but Angela Merkel took that relationship even further by treating Recep Tayyip Erdoğan as a protégé in the international arena. Their relationship strengthened in parallel with a significant increase in German-Turkish military and trade cooperation. But Merkel’s term is coming to an end, and there has been a noticeable shift in tone within the Berlin political establishment toward Ankara. The Turkish president will not be able to count on German benevolence forever.
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Turkey’s lira hit new lows Tuesday, becoming the worst-performing emerging market currency of the year following a rise in inflation last month.
Turkish President Recep Tayyip Erdogan aims for social justice by distributing the loot to his favorite powerful elites at the expense of hardworking blue- and white-collar professionals.
By the end of the third quarter, China is outperforming the world. In an AEIdeas blog, Derek Scissors notes that, despite this rebound, money appears to be leaving China as it has for more than six years, even though the only large, growing economy should be drawing capital. Beijing reports a large merchandise trade surplus, but its official reserves do not reflect the money that is supposedly coming in. COVID-19 adds confusion to perennial credibility problems in the People’s Republic of China’s economic statistics. But one thing is clear: The Chinese people want to send money somewhere Xi Jinping isn’t. Continue here.
It's time to transform the US-Japan alliance. In a Nikkei Asian Review article, Zack Cooper and Hal Brands argue that Washington should jump-start a fundamental discussion about the nature of burden-sharing. As the geopolitical environment becomes more threatening and the challenge from China becomes more severe, the US needs Japan to do more. But Tokyo plays a key role in counterbalancing China, and it is a mistake to focus burden-sharing discussions on how much Japan spends on defense. The US should view Japan not as the junior partner it once was but as the equal ally it has become. Read more here.
ISTANBUL — The Turkish lira sunk to a record low on Thursday after the central bank unexpectedly kept its benchmark interest rate on hold, heaping pressure on the beleaguered currency as investors already worried about political risks continue to exit its markets.
The lira fell as much as 2.1% against the dollar to 7.98 — another all-time low for a currency that has lost about a quarter of its value this year — after the bank’s monetary policy committee announced its decision. It steadied to 7.93 in later trading.
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By JONATHAN S. TOBIN, Special to the Sun | October 22, 2020
President Donald Trump's approach to foreign policy has been subjected to harsh criticism since before he took office. His emphasis on criticizing past American interventions in foreign conflicts and his decision to employ the term "America First" to describe his intentions led many to believe that he was steering the country on an isolationist course. His beliefs about alliances seem, with a few exceptions, purely transactional rather than rooted in notions about common values.