Monday, September 10, 2018

The US hurting itself by putting sanctions on Turkey

The US has slapped financial sanctions on two Turkish ministers and then doubled its steel and aluminum tariffs on Turkey. This has had the effect of Turkey's two ministers have their assets and properties under US jurisdiction frozen. Also the sanctions mean, US persons will be prohibited from engaging in financial transactions with them. Jim Rogers spoke with Anadolu Agency recently on the sanctions. Read his thoughts below in quotes.

"It is madness. I have no idea why America is doing this. Turkey has been a long-term ally of the U.S. and NATO. In my view, it is hurting America in the long run. And we will hurt ourselves more than we hurt anyone." 

"Throughout history sanctions had very rarely had much an effect for the long term. Eventually, markets have always figured out the way, get around the sanctions. Some people would call black market, some people call it parallel market, some people call it smart market." 

Sell off in Turkish asset prices could present a buying opportunity for sophisticated investors

"I have been noticing normally .... when something like this happens you take advantage of it by buying. It’s usually an opportunity to buy things. If you are smart enough to do it, it comes out very well, two years, five years later. I have not done anything yet. Just because I have been traveling a lot. But, I certainly see what is happening. I would be probably buying Turkey now. Normally smart people are buying now." 

US sanctions could help bring other countries together

"What America has been doing recently [is] making China great again. China, Russia and Iran and now Turkey are getting closer and closer together. This cannot be good for America. I mean, I am an American citizen. But I see Russia, China, Iran, Turkey are getting closer and closer. Five years ago, there were no Chinese. You go to the Red Square now, it is full of Chinese. I am sure it will be full of Russians and Chinese in Istanbul soon. Chinese have a lot of money these days. America has a lot of debt."