And, finally, the incident I've been mentioning for months in my columns happened. The U.S. Treasury "officially" accused China of manipulating "foreign exchange" in a written statement. According to this, referring to the relevant section of the Omnibus Trade and Competition Act that was adopted by the U.S. Congress in 1988, U.S. Treasury Secretary Steven Mnuchin – based on his power given by the U.S. President Donald Trump – said that he defined China as a "manipulator." The Beijing administration is being accused of keeping the value of the yuan low by interfering with the market. This development confirms that the core of the fight between the U.S. and China over "trade wars" is actually the "currency wars."
Because the essence of the U.S. negotiations with China over the trade wars was to move China's currency yuan towards convertibility; that is, to convince or force China to allow the determination of the value of its money in market conditions. China, on the other hand, did not want to give up the ability to manage the value of its money, which it considered as the biggest trump card.
With this development last Monday, it is expected that Mnuchin would get in touch with the International Monetary Fund (IMF) to take steps to "eliminate unfair competition conditions created by China's recent actions." The U.S. Treasury's statement also argued that China has taken steps contrary to its economic commitments made at the G20 and that these new steps violate the relevant agreements.
For China, such a vicious attack on its currency and economy is also a threat to its economic security. Tuesday morning when I was drafting these lines, the new development reflected on the global public from day to the morning was China warning Japan, South Korea and Australia for having U.S. missiles on their soil. This means that the South China Sea will be heating up. Both the U.S. and Far East stock exchanges negatively reacted to Trump driving the "economic war" with China to such a harsh extent.
Following Trump's statement last week on the addition of another $300 billion customs tax on exports from China, international market professionals have increased the probability of an interest rate reduction at U.S. Federal Reserve's (Fed) September meeting to 60%, up from 25%.
After the "manipulator" accusation on Monday night, the probability of an interest rate reduction one after another at the September and December meeting went up to 80%. Regarding the changing conjuncture in the global space, Turkey taking net steps towards the fight with inflation and continuing the interest rate discounts would both be the biggest supporters of the real sector and growth.
Global powers are against national energy
After the age of 50, sometimes I am swimming in deep thoughts, thinking of what is the thing that keeps this country going despite all the hurdles and treacheries, helping it to overcome coup attempts. This country has a magnificent, national root that exists in a handful of countries. From the right to the left tendencies, the thing that keeps us standing is the "love for country" or "nationalism" that affects a huge part of the society. However, this "national foundation" is under intense attack via the new global media network, be it digital or social media.
Turkey's societal and cultural values are one aspect of the issue. From my point of view, I will talk about the vicious attack on one aspect of the economic area as part of the struggle for "national sovereignty." One of the pillars of the Turkish economy's democratization is linked to becoming an economy that is self-sufficient in technology, financing, and energy fields, an economy that can maneuver with its national resources and capabilities. In energy, national resources and capabilities depend upon using renewable energy resources and developing its technologies. Turkey has recently commenced its most ambitious projects towards utilizing its renewable energy resources and producing national technology in the field.
With the steps we have taken in the fields of wind, solar, geothermal and hydroelectric, Turkey is getting closer to the point quickly zero in its energy imports. Not to mention as our nation moves towards the underground riches based on our legal and historical rights in the Eastern Mediterranean. Exactly at this point, global powers, interest groups of global energy discontented with Turkey moving towards becoming completely independent in energy, are constantly attacking us with manipulations to confuse our citizens as a response to our moves in the Eastern Mediterranean and national underground resources. Especially the insidious organizations in the Aegean region, the supposedly environmentalist operations are no longer tolerable.
We have to defend Turkey's moves towards renewable energy and its national root. With our national root, we can and we should carry out our renewable energy projects, underground projects, mining projects, forests, rivers, lakes while protecting our national assets. As long as we do not give credit to the sneaky organizations of global powers in the Anatolian steppes.