fxsoriginal

Trump accused Turkey of creating a humanitarian Crisis. Europe fears a flood of refuges. US nukes held hostage.

Tensions in Turkey keep rising. In response to US abandonment of Kurdish rebels in Northern Syria, the Kurds entered a pact with Syria to stave of a bloodbath at the hands of Turkey.

The invasion by Turkey went further into Syria than Turkey claimed it would, so Trump Responded with Steel Tariffs and threats of shutting of US dollar transactions for Turkey.

“Turkey’s military offensive is endangering civilians, and threatening peace, security, and stability in the region,” Mr. Trump said. “I have been perfectly clear with President [Recep Tayyip] Erdogan: Turkey’s action is precipitating a humanitarian crisis and setting conditions for possible war crimes.”

The administration’s sanctions plans are unfolding as pressure gathers on Capitol Hill for sterner action to punish Turkey. House Speaker Nancy Pelosi said she had spoken with Sen. Lindsey Graham (R., S.C.) about putting together a bipartisan, bicameral sanctions package that is stronger than what the White House is considering.

Treasury Secretary Steven Mnuchin said earlier in the day that his office was presenting Mr. Trump with retaliatory options against Turkey. “It is a complicated situation,” Mr. Mnuchin said, when asked if Turkey has moved further into Syria than initially conveyed to U.S. forces.

“On the one hand we have Turkey, who is a full member of NATO and an ally with us, fighting the Kurds who have helped us on ISIS,” he said, referring to the North Atlantic Treaty Organization and Islamic State. “And obviously we are very concerned about the humanitarian issues and we’re monitoring it very carefully.”

Another point of tension was Ankara’s purchase of Russia’s S-400 missile-defense system. Weapons experts say that system could compromise U.S. and NATO security by potentially giving Russia access to sensitive military information. Mr. Trump has in the past told his advisers he wanted to avoid punishing Turkey over the Russian missile-defense system.

US Nukes Held Hostage

The New York Times comments Trump Followed His Gut on Syria. Calamity Came Fast.

One day he was inviting Mr. Erdogan to visit the White House; the next he was threatening to “totally destroy and obliterate” Turkey’s economy if it crossed a line that he never defined.

Rarely has a presidential decision resulted so immediately in what his own party leaders have described as disastrous consequences for American allies and interests. How this decision happened — springing from an “off-script moment” with President Recep Tayyip Erdogan of Turkey, in the generous description of a senior American diplomat — probably will be debated for years by historians, Middle East experts and conspiracy theorists.

But this much already is clear: Mr. Trump ignored months of warnings from his advisers about what calamities likely would ensue if he followed his instincts to pull back from Syria and abandon America’s longtime allies, the Kurds. He had no Plan B, other than to leave. The only surprise is how swiftly it all collapsed around the president and his depleted, inexperienced foreign policy team.

Over the weekend, State and Energy Department officials were quietly reviewing plans for evacuating roughly 50 tactical nuclear weapons that the United States had long stored, under American control, at Incirlik Air Base in Turkey, about 250 miles from the Syrian border, according to two American officials.

Perpetual Engagement

With that Op-Ed, the NY times writer supports continual US troops forever, where they don't belong.

Erdogan Threatens to Release Millions of Migrants Into Europe

"Hey European Union. If you attempt to label our operations as an invasion, then it's simple: We will open out borders and send 3.6 million refugees your way," said Erdogan.

Operation Spring Peace

Erdogan calls this "Operation Spring Peace"

Indeed. What else could it possibly be?

Yes, Take the Missiles Out

Take the damn missiles out.

They never should have been in Turkey in the first place.

Some Allies

Some allies we have.

This is all part of the asinine sponsorship of the failed policy "The enemy of my enemy is my friend".

The NYT writer does have one thing right, albeit without saying so.

Trump is a Hypocrite

Trump pisses and moans, correctly so, that Syria is 7,000 miles away.

The fact of the matter is Saudi Arabia is even further. Yet check out these headlines.

fxsoriginal

Hell, not even Saudi Arabia knows where Trump stands.

I will tell you: Nowhere.

Mish vs Trump

  1. I favor pulling troops from Syria. Trump only did so when Erdogan told Trump he was going in. Trump backed down and labeled it a victory.
  2. I support pulling out of Afghanistan. So does Trump, in theory. But we are still there.
  3. Trump correctly complains Germany is not pulling it's NATO weight and threatens to pull out. Trump is correct. Germany is not pulling its weight.
  4. But what does Trump do about Germany? A: Nothing.
  5. I would pull troops out of Germany.

Political Insanity

Trump has gone from inviting his buddy Erdogan to the White House to threatening to “totally destroy and obliterate” Turkey’s economy, in short order.

Feel free to disagree. But if you support Trump's logic then you look as hypocritical as he does.

Playground Bully

Trump is nothing but a playground bully and a monstrous hypocrite at that.

Trade talks with China prove just that.

Turkey is icing on the cake. ​

Bring the Troops Home

Bring the troops home, all of them: From Syria, Afghanistan, Germany, Japan, Turkey, Saudi Arabia, everywhere!

The US cannot afford to be the world's policeman, nor should it try even if we could.

Out foreign policy has been nothing but disaster after disaster.

This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.

EUR/USD News

GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex Majors

Cryptocurrencies

Signatures