Thứ Hai, 23 tháng 5, 2022

Conflict, politics and history: Why Turkey is standing in the way of Sweden and Finland’s NATO bids

 When Finland and Sweden announced their interest in joining NATO, the two Nordic states were expected to be swiftly accepted as members of the defense alliance. But joining NATO requires consensus approval from all existing members, and Turkey – one of the group’s most strategically important and militarily powerful members – is not happy. 

The reasons why are complicated, emotional and steeped in decades of often violent history.

Historic decision

Nonaligned up until now, Finland and Sweden last weekend announced plans to abandon that position and join NATO in the wake of Russia’s bloody invasion of Ukraine.

Official partners of the alliance since the 1990s, the idea that the Nordic states might actually join the group made Moscow bristle. NATO expansion is something it has previously cited to justify invading Ukraine, also a NATO partner. 

Now, Turkish President Recep Tayyip Erdogan has the power to determine the future of the NATO alliance — and its power and size in the face of Russia’s war.

In fact, Erdogan has already blocked an early attempt by NATO to fast-track Finland and Sweden’s applications, saying their membership would make the alliance “a place where representatives of terrorist organizations are concentrated.”

As of 2022, NATO has expanded to let in three former Soviet states and all of the former Warsaw Pact countries.
As of 2022, NATO has expanded to let in three former Soviet states and all of the former Warsaw Pact countries.
Bryn Bache | CNBC

The clash has sent Western diplomats scrambling to bring Turkey on side, as Ankara presented a list of grievances to NATO ambassadors about its issues with the Nordic states – Sweden in particular.

What are Turkey’s grievances against Sweden and Finland?

When Erdogan talks of “terrorists” in this context, he means the Kurdish Workers’ Party, or the PKK – a Kurdish Marxist separatist movement that has been fighting Turkish forces on-and-off since the 1980s. It operates mostly in southeastern Turkey and parts of northern Iraq.

The PKK is classified as a terrorist organization by Turkey, as well as by the U.S., Canada, Australia and the European Union.

In fact, Sweden was one of the first countries to designate the group as a terrorist organization in 1984.

However, Turkey says that Sweden has supported PKK members and provides protection for them. Sweden denies this, saying it supports other Kurds who are not in the PKK – but the details are more complicated. 

Sweden’s foreign ministry declined to comment on Erdogan’s accusations when contacted by CNBC.

Since 1984, between 30,000 and 40,000 people are estimated to have died in fighting between the PKK and Turkish government, according to Crisis Group. The PKK have carried out scores of attacks within Turkey. 

Members of Turkish Armed Forces (TSK) continue operations against the PKK, listed as a terrorist organization by Turkey, the U.S. and the EU, and the Syrian Kurdish YPG militia, which Turkey regards as a terror group, within Turkey's Operation Peace Spring in Ras Al Ayn, Syria on October 17, 2019.
Members of Turkish Armed Forces (TSK) continue operations against the PKK, listed as a terrorist organization by Turkey, the U.S. and the EU, and the Syrian Kurdish YPG militia, which Turkey regards as a terror group, within Turkey’s Operation Peace Spring in Ras Al Ayn, Syria on October 17, 2019.
Turkish Armed Forces | Anadolu Agency | Getty Images

When it comes to Finland, Turkey’s opposition to it joining NATO appears to be more by association – the country has a far smaller Kurdish population than Sweden, but its foreign policy tends to be similar.

Finland has also banned the PKK as a terrorist organization, but joined Sweden and other EU countries in halting weapons sales to Turkey in 2019 over Ankara’s military action against Kurdish groups in Syria.

Erdogan is demanding that Sweden extradite a list of people that Turkey has charged with terrorism. He also wants Sweden and Finland to publicly disavow the PKK and its affiliates, and to lift their weapons ban on Turkey.  

For Hakki Akil, a former Turkish ambassador, the Turkish perspective is “very simple.”

“If Finland and Sweden want to join a security alliance they have to give up to their support to a terror organization [PKK] and not give refuge to them. On the other hand they have also to accept Turkish requests of extradition of 30 terrorists, [which are] very specific cases.”

Why do the Kurdish people matter to Turkey?

The Kurdish people are often described as the world’s largest ethnic group without a homeland – an estimated 30 million people. Mostly Sunni Muslim, they have their own unique language and customs.

Nearly 20% of Turkey’s 84 million-strong population is Kurdish, with some Kurds holding important positions in Turkish politics and society, though many say they are discriminated against and their political parties face crackdowns from the Turkish state.

Spread out between Turkey, Syria, Iraq and Iran, they have been heavily persecuted, marginalized and even been victims of genocide in the counties where they live – see Saddam Hussein’s chemical gas attacks that killed nearly 200,000 Kurds in Iraq in the late 1980s. Various Kurdish groups have pushed for Kurdish autonomy and statehood over the decades, some peacefully and some, like the PKK, through violence. 

Kurds celebrate to show their support for the independence referendum in Duhok, Iraq, September 26, 2017.
Kurds celebrate to show their support for the independence referendum in Duhok, Iraq, September 26, 2017.
Ari Jalal | Reuters

Kurdish fighters in Syria linked to the PKK played a major role in the fight against ISIS, receiving weapons support and funding from the U.S and Europe, including Sweden. This sparked huge tensions with Turkey, which then launched attacks on the Kurds in Syria.

“You are talking about people who have been actively fighting with Turkey for more that 40 years and killing tens of thousands of civilians in the process,” Muhammet Kocak, an international relations specialist based in Ankara, told CNBC.  

“Turkey is not happy about the fact that they suddenly become good guys just because they came in handy against ISIS.”

Western governments hailed the Kurdish fighters as allies, and several EU countries put various embargoes on Turkey due to their targeting of Kurdish militias in Syria, highlighting the intractable differences between how each side perceived the fighters.

Sweden’s relationship with Kurdish groups

Underlying the tension between Turkey and Sweden is how each country defines “terrorist,” says Hussein Ibish, a senior resident scholar at the Arab Gulf States Institute in Washington.  

“It’s not just a matter of Sweden’s liberal policies towards Kurdish refugees and political dissidents and activists. It’s also a reflection of differing definitions over who and what constitutes intolerable Kurdish extremism,” Ibish said. 

“Turkey basically classifies all Kurdish groups it strongly dislikes as PKK front organizations. That includes many non-PKK Kurdish entities and organizations in and from Turkey itself, but also the Western-backed Syrian Democratic Forces (SDF) in Syria and a number of Iraqi Kurdish groups as well.” 

Sweden has a long history of taking in Kurdish refugees and asylum seekers, particularly political refugees. Several Kurds even have seats in Sweden’s Parliament. 

VIDEO01:26
Swedish foreign minister: We won’t be secure without NATO membership

While most of the Kurds living in Sweden – which local groups say number as many as 100,000 – have no affiliation with the PKK, the Swedish government has supported members of other Kurdish organizations, particularly the political wing of the PKK’s Syrian branch, called the PYD.

Sweden says the PKK and PYD are different – but Turkey says they are one and the same.

Stockholm also politically and financially supports the Syrian Democratic Council (SDC), the political wing of the SDF, a Kurdish-led militia group created with support from the U.S. to fight ISIS in Syria. Ankara says that the SDC is dominated by PKK terrorists.

In 2021, Sweden’s government announced an increase in funding for Kurdish groups in Syria to $376 million by 2023, saying it remained an “active partner” to Syria’s Kurds and that its funds were aimed at “strengthening resilience, human security and freedom from violence” and improving “human rights, gender equality and democratic development.”

What will Sweden do? 

With Swedish elections coming up in September, it’s unlikely that the government will make any major concessions to Erdogan that would be unpopular at home, according to some analysts. 

Others believe that Erdogan ultimately will not block Sweden and Finland’s NATO memberships, but instead is seeking to improve his waning domestic popularity.

“My suspicion is that Turkey, eventually, especially if it can extract a few concessions here and there from the Western powers and its NATO allies, will not ultimately seek to block Finland and Sweden from joining the organization,” the Arab Gulf States Institute’s Ibish said.

“The Russian invasion of Ukraine and the fact that the war now focuses on parts of that country that are adjacent to Turkey and of profound strategic and even historic interest to Ankara has reminded many Turks of the value of membership in NATO.”

Still, NATO may face gridlock for some time if Erdogan is not satisfied with Sweden and Finland’s responses to his demands. 


Chủ Nhật, 15 tháng 5, 2022

Amazon’s Bezos again blasts Biden administration on inflation, says it’s most hurtful to the poor

 

Amazon founder Jeff Bezos arrives for his meeting with British Prime Minister Boris Johnson at the UK diplomatic residence on September 20, 2021 in New York City.
Amazon founder Jeff Bezos arrives for his meeting with British Prime Minister Boris Johnson at the UK diplomatic residence on September 20, 2021 in New York City.
Michael M. Santiago | Getty Images News | Getty Images

Amazon founder Jeff Bezos tweeted on Sunday that inflation is most hurtful to the least affluent in the United States, and criticized President Joe Biden for the second time in a week for his comments on inflation.

“In fact, the administration tried hard to inject even more stimulus into an already over-heated, inflationary economy and only Manchin saved them from themselves,” Bezos wrote on Twitter. “Inflation is a regressive tax that most hurts the least affluent. Misdirection doesn’t help the country.”

The comments from Bezos were in response to a thread in which President Joe Biden claimed the U.S. was on track to see its largest yearly deficit decline ever, totaling $1.5 trillion. Biden also took aim at former President Donald Trump, who saw the deficit “increase every single year” in office, he wrote.

On Friday, Bezos called out President Biden over a tweet that said taxing wealthy corporations can help lower inflation. Bezos urged the Disinformation Board to review the tweet.

“Raising corp taxes is fine to discuss,” Bezos wrote on Friday. “Taming inflation is critical to discuss. Mushing them together is just misdirection.”

In both instances, the president did not explicitly name Amazon, though he has previously commented on the e-commerce giant’s tax record.

Comments from both President Biden and Bezos come as inflation in the United States sits near 40-year highs and Federal Reserve officials look to hike interest rates to combat the issue.

Thứ Sáu, 13 tháng 5, 2022

U.S. Treasury prices slip as investors pile back into stocks

 


TICKER COMPANY YIELD CHANGE %CHANGE 
U.S. 3 Month Treasury0.9760.0360
U.S. 1 Year Treasury1.9320.0360
U.S. 2 Year Treasury2.5940.0720
U.S. 5 Year Treasury2.8640.0820
U.S. 10 Year Treasury2.9060.0890
U.S. 30 Year Treasury3.0650.0940

U.S. stock futures jumped in early trading on Friday, with markets seeking to avoid falling into bear territory, after heavy selling in recent days.

Throughout the week, investors appear to have rotated out of stocks and into Treasurys in search of a safe haven, as persistently high inflation data has fueled recession fears.

Federal Reserve President Jerome Powell said in an interview with Marketplace on Thursday that he couldn’t guarantee a “soft landing” for the economy, despite the central bank’s efforts to control inflation.

Kristina Hooper, chief global market strategist at Invesco, told CNBC’s “Squawk Box Europe” that she expected the Fed to announce a “few more 50-basis-point [interest rate] hikes in relatively close succession.”

“But beyond that I actually anticipate the Fed will make another pivot and a get a bit more dovish,” she added.

In terms of data releases due out on Friday, April’s import and export prices are slated to come out at 8:30 a.m. ET.

The University of Michigan is then set to release its preliminary May consumer sentiment findings at 10 a.m. ET.

There are no auctions scheduled to held on Friday.

Thứ Ba, 10 tháng 5, 2022

Bitcoin investors are panicking as a controversial crypto experiment unravels

 WATCH NOW

VIDEO02:04
Luna’s bitcoin liquidation marks significant reversal: Castle Island Ventures’ Nic Carter

Investors in bitcoin are in panic mode as the controversial terraUSD stablecoin slips further from its intended $1 peg.

TerraUSD, or UST, sank below 70 cents for the first time late Monday, as holders continued to flee the token in what some have described as a “bank run.” The token fell as low as 62 cents before regaining ground to trade at 90 cents Tuesday, according to Coinbase data.

Created by Singapore-based Terraform Labs in 2018, UST is what’s known as an “algorithmic” stablecoin. Part of the Terra blockchain project, it’s meant to track the value of the dollar, like fellow stablecoins tether and USDC.

However, unlike with those cryptocurrencies, Terra doesn’t have cash and other assets held in a reserve to back its token. Instead, it uses a complex mix of code — alongside a sister token called luna — to stabilize prices.

UST is important for bitcoin investors as Luna Foundation Guard, an organization supporting the Terra project, is sitting on billions of dollars in bitcoin that could potentially be dumped onto the market at any point.

Every professional investor in crypto has one eye on UST today, watching to see if it can maintain its peg to the dollar,” said Matt Hougan, chief investment officer at Bitwise Asset Management. “There’s clearly significant risk in the market.”

VIDEO05:18
Genesis’ Noelle Acheson on why Bitcoin sell-off is ‘necessary’ for long-term holders

In simple terms, the Terra protocol destroys and creates new units of UST and luna to adjust supply. When the price of UST falls below the dollar, it can be taken out of circulation and exchanged for luna, making UST’s supply more scarce and boosting its price — at least, that’s how it should work in theory.

To further complicate things, Terra’s creator, Do Kwon, bought $3.5 billion worth of bitcoin to provide a backstop for UST in times of crisis. The theory was that UST could eventually be redeemed for bitcoin instead of luna, but this is untested and hasn’t yet been put into practice.

Deposits into Anchor, Terra’s flagship lending protocol, have declined from 10.3 billion tokens on May 6 to just 6.4 billion Tuesday, according to data from blockchain analytics platform Nansen. Anchor offered users an almost 20% annual percentage yield on their UST holdings, a rate many analysts believe was unsustainable.

On Monday, Kwon’s Luna Foundation Guard said it would lend $750 million worth of bitcoin to trading firms to “help protect the UST peg,” while a further 750 million UST will be lent out to buy more bitcoin “as market conditions normalize.”

In a follow-up tweet, the organization said it had withdrawn 37,000 bitcoins — worth more than $1 billion at current prices — to lend out. “Very little” of the borrowed bitcoins have been spent, Luna Foundation Guard said, but it is “currently being used to buy” UST.

Several crypto investors are worried that Luna Foundation Guard might have sold, or will sell, a large portion of its bitcoin to prop up UST — analysts pointed out that the group’s bitcoin wallet is now completely empty.

Amid all of this uncertainty, UST’s decline has sent shock waves throughout the crypto market.

Bitcoin, the world’s largest digital currency, briefly fell below $30,000, hitting its lowest price since July 2021. As of 7:00 a.m. ET, bitcoin was trading at $31,324, down around 5% in the last 24 hours. It’s now down more than 50% from its November all-time high.

Luna, UST’s counterpart, has roughly halved in value in the past 24 hours. It was last trading at a price of $32.

Adding to UST holders’ woes, Binance, the largest crypto exchange by market volume, temporarily suspended withdrawals of both UST and luna “due to a high volume of pending withdrawal transactions,” citing network congestion.

Binance has since resumed withdrawals, and says it “will continue to monitor” network conditions.

“I think the market is expecting some forced selling here on the part of Terra and the reserve,” Nic Carter, co-founder of Coin Metrics, told CNBC. “It is a calamity but very expected. No algorithmic stablecoin has ever succeeded and this is no exception.”

He added that the problem with UST is that it’s largely “backed by faith.”

“It’s not fully guaranteed, it’s certainly not fully backed by reserves,” he told CNBC. “It was really just backed by faith in the issuer effectively.”

Terraform Labs did not respond to multiple requests for comment.

Conflict, politics and history: Why Turkey is standing in the way of Sweden and Finland’s NATO bids

  When Finland and Sweden announced their interest in joining NATO, the two Nordic states were expected to be swiftly accepted as members of...