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2.0 Politics 2.1 Watchlist
● Global liquidity: The Fed’s balance sheet is breaking fresh records.
A sharp reversal in the money printing is not expected soon. However, it is getting totally out of hand.
There is talk of the beginning of tapering in Q4 but whether the Fed will ever manage to grasp the nettle is questionable. Nevertheless, “tapering talk turbulence” in global markets is not good news for the lira.
Given that the money printing continues, such talk creates some short-term “juicy” volatility. However, the lira is too fragile and it can be broken easily.
Amid “tapering” talk, the Biden administration’s another package focused on $1 trillion worth of infrastructure investments was approved. A $3.5 trillion budget bill was also approved. The congress procedure continues.
7 TURKEY Country Report October 2021 www.intellinews.com
