U.S. Pressures Turkey the Ol' Fashioned Way - Through its Currency

Zerohedge has a story out right now that is old news and new news. It involves the five-year old story that Turkey assisted Iran in evading U.S. sanctions by using gold to sell oil.

Back in late 2012, the U.S. put extreme sanctions on Iran which included, for the first time, the expulsion of a country from the SWIFT electronic payment system. SWIFT is the main way in which money flows around the world.

Housed in Brussels, controlled by the U.S., SWIFT is the financial equivalent of a nuclear-tipped MIRV. It is the kind of weapon that you only use it as a means of last resort. And Iran pushing the U.S., mostly over the IPI and TAPI pipelines as well as helping organize the resistance to the Syrian insurrection against Assad which was well underway at that point.

Cutting Iran out of SWIFT created hyperinflation in Iran overnight. The goal was regime change, an overthrow of the mullahs and installation of a pliant satrap government. It failed.

Part of the reason it failed was because Turkey, which had just liberalized its definition of gold as a reserve asset of the banking system, acted as the middle man between NIOC — National Iranian Oil Company — and its buyers.

During that period Iran’s oil output dropped by 50% from 4.5 million barrels/day to just above 2.

Enter Turkey. Iran needed access to cash. Erdogan needed to stabilize a banking system and cover up a surging current account deficit. And gold from oil buyers provided the conduit.

The scheme was laid to rest, but it allowed Iran a way to evade sanctions and sell oil while the U.S.’s ally, Turkey was on the one hand gearing up al-Qaeda in Syria to fight Assad and laundering Iranian oil money through its state bank.

In December the gold trader involved in this scheme was arrested by the U.S. and he’s naming names as to who was really behind it. Yup, Erdogan.

It’s really a poorly-kept secret because how does more than 200 tons of gold flow through the Turkish state bank under the eye of Ergodan’s Finance Minister without Erdogan knowing it?

Who does he think he is, Hillary Clinton?

But, as Zerohedge notes, the Turkish Lira hit another new low on the news. More hybrid war attacks on those that dare say no to U.S. dominance.

Don’t forget that Erdogan survived a coup attempt last July, most likely organized by the CIA and thwarted by Vladimir Putin. Putin, reportedly tipped off Erdogan hours before the coup which allowed him to escape and organize the counter-offensive.

Since then Erdogan’s ‘crackdowns’ have been in retaliation for those who were involved… and a bunch of his other political enemies for good measure.

The goal of these court records being released now is to put more pressure on Erdogan via the Lira and the value of Turkey’s debt. Why do you think Erdogan has been so willing to cut new deals with Russia, Iran and support Qatar against the Saudis?

Time to change sides and that will not come without a fair amount of pain.