Turkey Will Be Ground Zero in the Next Global Debt Crisis



Turkey is a beautiful country with a rich history including Greek, Roman and Muslim influences that make it one of the most fascinating places on Earth. It is literally a bridge between East and West: The mile-long Bosporus Bridge just north of Istanbul connects Europe and Asia across the Bosporus Strait.

Turkey has been a magnet for direct foreign investment from abroad and dollar-denominated loans by international banks to local enterprises. This investment enthusiasm is understandable given Turkey’s well-educated population of 83 million and its rank as the 17th-largest economy in the world, with a GDP of just under $1 trillion. Continue reading

A major showdown awaits Palestinian leader in Riyadh

Palestinian Authority Chairman Mahmoud Abbas is on his way Tuesday to Riyadh where he faces a stern demand to break away from the Turkish-Qatari-Jordanian line-up fighting US political steps in the region. DEBKAfile reports that Saudi Crown Prince Muhammed bin Salman will not give way on this demand and, if Abbas holds out, the showdown could end in the Saudis cutting off assistance to the Palestinian Authority. Continue reading

New Rumblings In The Horn Of Africa Over Ethiopia’s Grand Renaissance Dam

Tensions are rising between Egypt and Ethiopia over the latter’s Grand Renaissance Dam. Continue reading

The Saudi-Iran Brewing War


The turmoil in the Middle East has been instigated in part by fiscal mismanagement. When the money was rolling in with high oil prices, it was assumed, as always, that whatever trend is in motion will remain in motion. Consequently, the government expanded their spending assuming money would continue to flow in. When oil broke, the fiscal mismanagement has been exposed for all to see if they care to look.

Falling oil prices have decimated revenues and trade in the region. Security worries about terrorism, particularly in the US, have led to cuts in airline routes. Then there has also been a long-running diplomatic and trade impasse between Saudi Arabia and its allies on the one hand, and Qatar on the other. Now the good-old-days of easy money and rapid growth has led to concerns about over-capacity, waste, and corruption that nobody cared about when money flowed like oil.

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Saudi Arabia’s Saturday Night Massacre

This weekend, while we here in the US were focused on the upcoming election and President Trump’s visit to Asia, a powerful drama with vast geopolitical implications played out in Saudi Arabia.

Mohammad bin Salman, the king’s son, is the de facto ruler of the country and has been making increasingly aggressive moves in an attempt to shift Saudi Arabia from its status as an ultraconservative oil-producing nation to a 21st-century manufacturing superpower with social mores to match. In doing so he has greatly perturbed a broad swath of the Saudi elite – many of them his near and distant royal family brethren – as well as the fundamentalist Wahhabi clergy. Continue reading

The Home Game Has Arrived: Lessons from the 10th Asymmetric Threat Symposium


Last week I was privileged to attend the 10th Asymmetric Threat Symposium. It’s not the first of these I’ve attended but was clearly the best. Maybe the participants felt less restrained by politics and thus spoke more directly to the issues we truly face. Or maybe the quality of experts is rising. For whatever reason, the event was candid and sobering, even for me. The event was held near our nation’s capitol and was sponsored by CACI International, the Center for Security Policy, and ISW (Institute for the Study of War). The title:  What Does It Take to Protect America? Combatting Global Asymmetric Threats.

While the rules of the event require that comments be shared without attribution, I’m pleased to offer a recap for our readers. You can read the agenda and see information about prior versions at www.asymmetricthreat.netThe speakers and panelists were impressive. In fact, I counted 36 stars on the shoulders (Admirals and Generals) of about a dozen participants, both active and retired, not to mention academic and civilian experts.

There were many important points covered and I’ll recap just a few:

First, the question was asked and answered. Are we already at war? Continue reading

Former Qatari PM: Four foreign governments, including US, orchestrated Syrian war

An interview going viral across Arabic social media quotes former Qatari Prime Minister Hamad bin Jassim bin Jaber al-Thani as claiming that his country, along with Saudi Arabia, Turkey and the United States, began shipping weapons to “jihadists” from the very moment that the Syrian civil war erupted in 2011. Continue reading

The World Is Creeping Toward De-Dollarization

The issue of when a global reserve currency begins or ends is not an exact science. There are no press releases announcing it, and neither are there big international conferences that end with the signing of treaties and a photo shoot. Nevertheless we can say with confidence that the reign of every world reserve currency has to come to and end at some point in time. During a changeover from one global currency to another, gold (and to a lesser extent silver) has always played a decisive role. Central banks and governments have long been aware that the dollar has a sell-by date as a reserve currency. But it has taken until now for the subject to be discussed openly. The fact that the issue has been on the radar of a powerful bank like JP Morgan for at least five years, should give one pause. Questions regarding the global reserve currency are not exactly discussed on CNBC every day. Most mainstream economists avoid the topic like the plague. The issue is too politically charged. However, that doesn’t make it any less important for investors to look for answers. On the contrary. The following questions need to be asked: What indications are there that the world is turning its back on the US dollar? And what are the clues that gold’s role could be strengthened in a new system? Continue reading

Syria is a ‘Laboratory’ for the Air War of the Future

A boom operator, assigned to the 340th Expeditionary Air Refueling Squadron, prepares to refuel an aircraft from a KC-135 Stratotanker above Southwest Asia, July 20, 2017.


US airmen are rapidly developing and remixing new technologies and techniques in the fight against ISIS, but sometimes you can’t beat the tried and true.

ISIS doesn’t have an Air Force, but the Syrian skies are nevertheless a rapidly evolving “laboratory” for air warfare, said U.S. military leaders, who described how the U.S. is fusing cyber attacks with real bombs and using open-source intelligence to find and strike targets.

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Australia Takes On Qatar For Top LNG Producer Status



Australia this week moved a step closer to becoming a real problem for Qatar on the LNG market, after the second floating production, storage, and offloading vessel for the Ichthys gas field reached its destination.

The Ichthys Venturer joins the Ichthys Explorer at the field operated by Japan’s Inpex, with the first LNG shipment from the field scheduled for next spring.

The Venturer has a capacity of 1.12 million barrels of gas condensate and will process, stabilize, and store condensate it will receive from the other FPSO, and then load it on tankers. Continue reading

The Saudi Power Balance Is On A Knife-Edge


The sweltering heat of Saudi Arabian summer will feel like a cool breeze compared to the geopolitical fire that could soon take over the country if ongoing internal power struggles destabilize the Kingdom’s Royal Family and national security in the coming weeks.

After his successful elevation to Crown Prince, Mohammed Bin Salman (MBS) has been appointed by King Salman to be in charge during his holiday to Morocco. The King’s holiday comes at a time of relative instability in the Kingdom, as the effects of the removal of former Crown Prince Mohammed Bin Nayef at the end of the Ramadan period continue to linger. Continue reading

State Dept. in ‘Open War’ With White House

See also: Report: Tillerson Tells Friends He’ll Be Lucky to Last a Year at State Department


Secretary of State Rex Tillerson / Getty Images


The State Department under Secretary Rex Tillerson has been locked in a growing power struggle with the White House that has angered officials in the West Wing and sparked claims that the Trump administration’s top diplomatic organ is now in “open war” with the White House on a range of critical issues, including the Israeli-Palestinian impasse, Iran, the crisis with Qatar, and other matters, according to multiple sources who spoke to the Washington Free Beacon about the situation.

The State Department is said to be in a state of “massive dysfunction,” with top officials working under Tillerson ignoring White House directives on critical staffing issues and key policy matters, according to multiple sources, including administration allies who are said to be increasingly frustrated with what is perceived as the White House’s inability to control its own federal agencies.

The tensions have fueled an outstanding power battle between the West Wing and State Department that has handicapped the administration and resulted in scores of open positions failing to be filled with Trump confidantes. This has allowed former Obama administration appointees still at the State Department to continue running the show and formulating policy, where they have increasingly clashed with the White House’s own agenda.

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Turkey Sends 200 Cargo Planes to Qatar Amid Gulf States Diplomatic Row

© AP Photo/ Doha News


Turkey sent 200 cargo aircraft, loaded with goods worth more that $20 billion to Qatar, subjected to an economic blockade by the Gulf countries since early June due to its alleged terror support, Economy Minister Nihat Zeybekci said Tuesday.

“Turkey is not helping [Qatar], it exports the goods, which had been already paid for. We have possibly made ever largest operation on goods delivery by 200 planes,” Zeybekci told the local TRT television channel, adding that the supplied goods were worth over $20 billion.

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At This Stage, The Trump Administration Consents To Iran’s Regional Expansion, Exchanges Messages Seeking An Understanding With Iran; Qatar Crisis, Escalation Of Conflict Between Iran And Its Axis And Saudi-Sunni Camp Are Outcome Of U.S.’s Incoherent Dual Policy


Recently, there have been significant developments in the conflict/rivalry between, on the one hand, Saudi Arabia and the Sunni axis that it established, and on the other hand Iran and the resistance axis. These developments concern not only the forces in the region but also the U.S. and Russia. Both these camps are vying for support from the U.S., which at this stage is striving for understandings and negotiations with Iran and, according to Iranian sources, is already conducting secret contacts with it; this is happening as the U.S. is, for now, coming to terms with Iran’s expansion in the region. These developments are impacting the reshaping of the Middle East as well as the power relations among the leading elements within it. The current Qatar crisis is a new manifestation of the generational geo-political Sunni-Shi’ite Saudi-Iranian struggle, and is the outcome of the policy of a U.S. administration in which two political camps are discernible. One is that of President Trump and his close advisors, who support Saudi Arabia and the Sunni axis, and the other is that of U.S. Secretary of State Rex Tillerson and Secretary of Defense James Mattis, who are showing sympathy for Qatar and acting to preserve the pro-Iran status quo of the Obama era. Continue reading

New Crown Prince Mohammed seen taking a harder line on Iran

Saudi Crown Prince Mohammed bin Salman


In elevating his son Prince Mohammed to next in line to the throne, Saudi King Salman approved a strategic realignment with the U.S. under Donald Trump and handed sweeping new powers to the 31-year-old who has been highly critical of regional rival Iran.

The decision by King Salman to promote his son to crown prince and consolidate his power was endorsed by 31 of 34 members of the Allegiance Council, made up of senior members of the ruling Al Saud family, Reuters reported on June 21. Continue reading