3. Turkey’s lira sinks to 8 against US dollar for first time

Turkey’s lira sinks to 8 against US dollar for first time

If anything, it can afford to take out more debt. So, in statistics, if there are no explanatory variables, it means that the dependent variable is being manipulated. The most likely explanation is that the US is using its reserve currency status to manipulate the Lira downwards. Why would it do that? Well, looking at the fact that there are no fundamentals to justify a downward moving Lira, the US could create one. It could for example, create a debt crisis by manipulating the Lira downwards and then tell everyone that Turkey is experiencing a spiraling external debt crisi and then say that the Lira is depreciating because of the debt crisis and then rig the Lira downwards again and then...and so on. You then have a weakening Lira because of a debt crisis... even if the debt crisis does not even exist.

This is very interesting. Can you please explain me how the US can manipulate the lira downwards using its reserve currency status without any fundamentals leading to devaluation?

/r/europe Thread Parent Link - ft.com
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