Page 7 - TURKRptNov21

2.0 Politics 2.1 Watchlist
● Global liquidity: The Fed’s balance sheet is still breaking records.
The USD index (DXY) was moving within the 93s-94s. On November 3, the Fed’s open market committee will release the result of their rate-setting meeting. Some tapering talk is awaited.
The Fed will keep printing money until at least July 2022, just at a slower pace. Whether it will ever be able to permanently end its money printing business is questionable. The global markets will anyway remain unfavourable until the new year rally begins in December.
Amid “tapering” talk, the Congress procedure continues for the Biden administration’s expenditure packages, which include $1 trillion worth of infrastructure investments and a $3.5 trillion budget bill.
Discussions over the tax hike plans continue.
The plan is to pump money via fiscal policy instead of monetary policy. However, there is inflation now, which previously has been ‘stored’ in the form of asset price bubbles during the decade-long money printing frenzy. Via fiscal or monetary policy, the money printing must proceed, no-one can contemplate stopping it.
● Virus: On the rise but few care by now. Winter may bring new measures.
● Halkbank case: On October 22, the 2nd US Circuit Court of Appeals rejected Halkbank's bid to dismiss an indictment accusing the bank of assisting Iran in the evasion of American sanctions. Halkbank will appeal the ruling. The Erdogan regime takes any chance it can to slow the process while the US uses the case as a Sword of Damocles.
● Erdogan has managed to dig his claws into a “transactional” partnership with Joe Biden. He took over the Kabul Airport mission in Afghanistan. The question is how he can fulfil such a mission in such a hell.
The Biden administration is somewhat backing the Erdogan regime by now but Erdogan wants more photoshoots and Biden says No. Such are Erdogan’s growing difficulties, though, that Biden’s tentative
7 TURKEY Country Report November 2021 www.intellinews.com