In recent weeks, the impact of domestic and foreign politics has been too overwhelming for the markets. The same goes for the United States. While Trump is currently being the subject of an impeachment inquiry, he faces problems in foreign relations as well.
It seems like Trump’s statements to get sympathy from the ordinary American citizens are welcomed neither by the Congress nor the Senate, and the “run with the hare and hunt with the hounds” policy used during the S-400 and F-35 crises is similarly not been embraced by the US politicians. I must admit that I begin to find a little bit risky for Turkey that Turkish theses are being defended by Trump himself.
Trump did not have any chance at all if the Democrats haven’t declared that they want to tax the wealthy. However, as the Democrats are embracing the “post-truth” as well, they continue to fool the people using populist policies, which greatly helped Trump’s failing campaign to breathe a sigh of relief indeed.
“Turkey must understand the nature of the current circumstances”
Nonetheless, no one can do anything to prevent the parity from moving towards the Dollar. That is to say, it seems unlikely that Euro’s exchange rate to dollar, which can fall below 1.10 anytime now, will not gather strength not even with the help of Fed’s rate cuts; because, rate cuts do spoil investors’ expectations in the long-term.
Consequently, the fact that investors keep trading in bonds, derivatives, and commodities etc. without tying up too much of their money causes sharp fluctuations. We may have a better process in 2020 than 2019, in terms of domestic and foreign politics, if we don’t encounter any unforeseen political or diplomatic risks, but there is political turmoil all the time across the world.
In short, the world will never achieve stability unless countries with the highest levels of GDP and Debt solve their problems. Accordingly Turkey must understand the nature of the current circumstances as fast as possible and become a self-sufficient economy. Obviously, this does not mean that Turkey must do everything on its own, and give up when it fails. No one succeeds alone. We should find the right domestic and foreign policy and use it to unite the people.