With the Turkish lira in free fall, just as Asia Unhedged has predicted this past year, Turkey’s stock market has shrunk to rounding-error dimensions.
The whole of the Istanbul 30 Index, the country’s blue chip gauge, is presently worth just 176 billion Turkish lira, or a mere US$33 billion. That’s the market cap of the Monster Beverage Company in the US.
US$33 billion is a rounding error in China’s global net asset position, and the likeliest outcome of the crash of Tayyip Erdogan’s kleptocracy is that Turkey will simply be a wholly-owned subsidiary of China. 1,500 years after the Han dynasty kicked the Turks out of Central Asia, it will buy them out as well.