1997 Asian financial crisis is replaying in the Middle East now. Here's why!

https://www.businessinsider.sg/turkey-probes-jpmorgan-for-lira-advice-before-currency-plunged-2019-3/?r=US&IR=T

JP Morgan is trying to start the spark of a financial crisis in the Middle East which has the same modus operandi as the 1997 Asian financial crisis.

The first step will be to devalue the currency and JPM has selected Lira because Turkey is a big economic with bad fundamentals.  Turkey is in a technical recession now.

https://www.nytimes.com/2019/03/11/business/turkey-recession.html

JPM had issued a shorting report on Lira just before the Turkey election and it was successful in creating a Lira panic.  The Turkey swap rates soared past 1200% at one point.

https://www.theguardian.com/world/2019/mar/31/turkey-votes-local-elections-seen-key-test-of-erdogan-rule

https://www.dailysabah.com/economy/2019/03/29/turkey-aware-of-currency-market-manipulation-ahead-of-local-elections

https://www.bloomberg.com/news/articles/2019-03-27/foreign-investors-are-trapped-in-turkey-days-before-elections

The intention of JPM is not to earn a huge windfall from the currency market but to force the Turkish central bank to hike interest rates or keep its high interest rates long enough to impact interest rate sensitive industries such as banking and finance, property, etc.  Consequently, the high interest rates will cause the Turkish stock market to crash and the US financial firms will earn the huge windfalls from shorting the index futures in Turkey and other affected countries as the contagion spreads.

Let's reminisce the 1997 Asian financial crisis in steps.

1. Steep currency devaluation.
2. Central bank hikes interest rates or keeps high interest rates long enough to prevent the steep currency depreciation.
3. Stock market crashes
4. Another big but weak economy is targeted (HK)
5. Contagion spreads like fire in Asia.

The Thai baht was first targeted by George Soros (GS) because Thailand had high non-performing loans in the banking and financial industries and the Thai baht was pegged to the USD back then.  The steep devaluation of the Thai baht forced the Thailand central bank to raise interest rates to prevent the steep Thai baht depreciation.  Subsequently, the high interest rates caused the Thai stock market to collapse and exacerbate its economy.  Thereafter, the contagion started to spread and Hong Kong became the next target for GS.  In 1997, HK was returned to China with limited coffer because the UK had siphoned the HK government funds.  Therefore, the new HK became the perfect target for GS.

Turkey is just like Thailand in 1997 now.  Currently, step 1 (Steep currency devaluation) has happened.  Turkey looks set to hike or keep its high interest rates long enough to protect its lira.

Let's see how this will pan out.

When step 2 and 3 have taken place, the next target will be one of the pigs (Portugal, Italy, Greece, Spain) in Europe.  My guess will be Italy because it is a big economy with high debts.