Page 6 - TURKRptSep21

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. Even the traditional liquidity dry in August has not happened. Everywhere is flushed with money. Tapering is awaited to slightly begin in Q4 but market reaction should be seen.
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.
Discussions over the tax hike plans continue.
● Virus lockdowns and demand conditions in Europe. Delta variant is on the rise but no lockdowns yet. Spring and winter may bring new measures.
● Halkbank case: On April 12, a hearing was held at the 2nd US Circuit Court of Appeals in Manhattan, a higher court will decide whether Halkbank can be prosecuted by the US. The appeals court did not say when it will rule. The case stays politicised.
● Erdogan has managed to dig his claws into a “transactional” partnership with Joe Biden.
He has promised to take over the Afghanistan mission. Questions are many how he will serve his mission in such a hell.
The Biden administration is behind Erdogan now. Such are Erdogan’s growing difficulties, though, the Biden administration’s tentative support may not be enough.
● Afghanistan became the leading agenda item to watch in the coming period.
● THIS MONTH: September 26: Elections in Germany. There is a possibility that Germany, Europe and the rest of the world might be waving goodbye to the German Christian Democratic Union (CDU). Lately, German capitalists are on the stage to stop the green and leftist reaction, and chances of a government shift are low.
6 TURKEY Country Report September 2021 www.intellinews.com