Zero Hedge

Behind Turkey's Gold Sales: The Biggest Ever Plunge In Foreign Reserves

Behind Turkey's Gold Sales: The Biggest Ever Plunge In Foreign Reserves

Shortly after the Iran war started, with gold unexpectedly tumbling, we showed that the reason behind gold's paradoxical move - after all, the precious metal has traditionally been a store of value in times of geopolitical stress - was the furious liquidation of gold by emerging markets, in this case Turkey, scrambling to obtain reserve dry powder so Ankara could cover soaring costs of energy imports.

And indeed, the latest central bank data showed that Turkey’s foreign reserves had their biggest monthly decline on record in March, as the Iran war triggered global selloffs in emerging market assets and strained the lira.

According to balance-of-payments data released on Wednesday, Turkey's official reserves cratered by $43.4 billion in March. Part of the decline reflected state intervention to offset portfolio outflows. The current-account deficit, meanwhile, widened to $9.7 billion in March from $7.3 billion in February as a result of soaring commodity prices.

A major energy importer, Turkey has been hit hard by higher oil and gas prices caused by the effective closing of the Strait of Hormuz and the resulting disruptions to world supplies of crude and refined products. Meanwhile, global banks have started changing their formerly favorable outlook on the lira, citing the exploding current-account deficit. Should inflation pressures persist, Turkey will have no choice but to pursue another accelerated devaluation of the Turkish lira. 

“As international institutions continue to raise their average oil price forecasts for 2026, disruptions in supply chains and ongoing regional tensions — and their potential negative impact on transportation and tourism revenues — keep upward risks alive in year-end projections” for Turkey, said Istanbul-based economist Haluk Burumcekci.

Turkish central bank Governor Fatih Karahan said last week that the ratio between the current-account deficit and gross domestic product would be “below historical averages” this year while acknowledging the upside risks.

Since President Erdogan’s reelection in 2023, a new economic team has sought to stabilize Turkey’s external finances by cooling demand through conventional tools such as higher interest rates and restrictions on credit growth.

The central bank has kept its benchmark rate at 37% for two straight meetings but has effectively lended from a costlier rate of 40% since the outbreak of the Iran war — a technical measure to tighten liquidity without instituting a formal rate hike.

Inflationary pressures persist, however, with annual price growth picking up to 32.4% in April, a number that is set to rise higher in the coming months. 

Tyler Durden Mon, 05/18/2026 - 05:45

Trump Tells Iran 'Clock Is Ticking, Move Fast' After New Peace Proposal As Analysts Predict Likely Return To War

Trump Tells Iran 'Clock Is Ticking, Move Fast' After New Peace Proposal As Analysts Predict Likely Return To War

Update(1410ET): President Trump has warned Iran on Sunday that the "clock is ticking" as Pakistani-mediated talks have not only stalled, but show no signs at all of restarting anytime soon. "They better get moving, FAST, or there won't be anything left of them," he wrote on Truth Social. "TIME IS OF THE ESSENCE!"

He spoke the same day with Israeli Prime Minister Benjamin Netanyahu, who along with Lindsey Graham has been calling for resumption of robust anti-Tehran action to ensure Iran can never go nuclear. Trump's words have been somewhat of a familiar refrain going back several weeks. 

As we detailed below, Iran says it received a counter proposal of '5 conditions' for peace from the White House. In many ways they are directly opposite the 5 conditions Iran sent to the US last week, which Trump had rejected as "garbage".

But as yet there's been no indicator that the US side has attached a timeline to its latest demands. Trump is perhaps pushing this new "clock is ticking" as a timeline threat of sorts. But again, there was no specific date included in the fresh warning.

Last week Bloomberg Intelligence circulated a report titled, Iran Rejects Trump's Offer - Return to War Likely. It concluded:

The diplomatic dance continues: the US and Iran exchanged offers yet again. But they remain far apart, shooting maximalist demands at each other. A comprehensive peace deal is unlikely to materialize. We think the US and Iran will likely return to strikes. But we expect an intense exchange of fire to be temporary and reduce to lower-levels of fighting – what we call the new normal in this protracted conflict. 

More from the Bloomberg Intelligence analysis: 

Short but Intense... and Costly

Trump doesn’t want long war. His popularity is taking a hit as its economic impact is being felt.

We think Trump will likely revert to a short air and missile strike campaign on Iranian infrastructure, military positions, and energy assets while simultaneously continuing the blockade. Tehran will likely respond with strikes of its own, both on US military assets and America’s regional partners. But we expect this to be a short bombardment, rather than the sustained, high-intensity strike campaign that marked the beginning of the war.

The war has already imposed a heavy economic cost. Oil markets flipped from an expected record surplus to historic supply disruption. Major central banks, facing fresh inflation risks, are turning more hawkish. Consumers now pay more for energy, while their borrowing costs also rise, and the future grows more uncertain.

The longer the Strait of Hormuz remains closed, the more it will drain the oil stockpiles cushioning governments, companies, and consumers today. Once inventories run thin, prices need to do the hard work: rising high enough to curb demand back in line with available supply.

Since that report was issued, nothing has changed, and both sides seem to have dug in their heels even more.

*  *  *

According to a Sunday report from Iran's semi-official Fars news agency, the United States has laid down a firm, take-it-or-leave-it ultimatum to Tehran. Both sides are still trying to patiently wait out the Hormuz crisis, hoping to inflict more economic pain on the other until they blink.

At the top of the list, the US is demanding a near-total dismantling of Iran's atomic ambitions, "allowing only one Iranian nuclear facility to remain operational." 

Anadolu Agency

The list includes direct rejections in response to Iran's own five conditions from a week ago, which President Trump said were "unacceptable" and "garbage".

For example the US is refusing to pay compensation for damage caused during strikes on Iranian territory - a 'maximalist' sticking point which Tehran had demanded previously.

Washington is also reportedly insists that 400 kilograms of enriched uranium be transferred from Iran to the US, while only one active nuclear facility would remain operational inside the Islamic Republic.

Iran for its part has recently vowed to never transfer its nuclear material out of the Islamic Republic, calling the issue a matter of national sovereignty and energy security which it alone has say over. This after even Russia offered to take it.

The newly reported five conditions by the US side further states that the US does not intend to release more than 25% of frozen Iranian assets. Tehran has demanded the dropping of all US sanctions as a key basis for lasting settlement.

Here are the five newly proposed Washington conditions, which some pundits have called 'wishful thinking':

  1. No war compensation from US
  2. Give up 400kg of Highly Enriched Uranium to US 
  3. Iran can only have on nuclear facility to remain active
  4. Not more than 25% of frozen assets to be unfreezed 
  5. Halting war on all fronts depends on negotiations

So this leaves a huge distance between the Washington list and Tehran's list, as the seemingly unbridgeable gulf remains, also as Iran is digging in its heels.

As a reminder, the below is the Islamic Republic's list, which it hasn't backed down from. It has offered the following as the only basis on which to restart talks:

  1. Ending the war on all fronts, including Lebanon
  2. Lifting all sanctions
  3. Releasing frozen Iranian assets
  4. Compensation for war damages and losses
  5. Recognition of Iran’s sovereign rights over the Strait of Hormuz

While a Pakistani-mediated ceasefire managed to take effect on April 8, subsequent talks in Islamabad completely collapsed, but then President Trump later extended the truce indefinitely, likely to buy time and to figure out "what's next" - while seeking a complete blockade of Iranian oil exports, and of all vessels entering or exiting Iranian ports.

With Washington demanding total disarmament and Iran demanding control over the world's most critical oil transit choke point, the stage is set for a likely coming renewal of direct clashes, given the zero sum demands of each side now on the table.

Tyler Durden Mon, 05/18/2026 - 05:10

So Where Does Wokeism Come From? (Spoiler Alert: The French, Of Course!)

So Where Does Wokeism Come From? (Spoiler Alert: The French, Of Course!)

Authored by Monica Showalter via AmericanThinker.org,

How did wokeism happen?

A French intellectual, who goes by Brivael Le Pogam on X, has written a tightly focused and brief explanation of it worthy of Eric Hoffer, putting his finger on the thinking of French philospher-historian Michel Foucault, French philosopher Jacques Derrida, and French philospher-literary critic Gilles Deleuze, the first of whom claimed there was  no such thing as truth, just power relationships, the second of whom claimed truth was malleable, and the third of whom made the really weird claim that seeds were greater than fully developed trees because becoming was more important than being, poor romantic devil.

Married to guilt-tripping academics of the U.S., he explains how wokery was the result.

His tweet is in French, but Grok translate kicks in on my site, so I will post the translation below the tweet.

Grok translate, (with censorship from me of one cuss word that means merde): (emphasis ours)

I want to offer my apologies, on behalf of the French, for giving birth to French Theory (which in turn gave birth to the worst of all ideological monstrosities: wokism).

We gave the world Descartes, Pascal, Tocqueville. And then, in the intellectual ruins of post-1968, we gave Foucault, Derrida, Deleuze. Three brilliant men who forged, in the elegance of our language, the ideological weapon that today paralyzes the West.

We must understand what they did.

Foucault taught that truth does not exist, that there are only power relations disguised as knowledge. That science, reason, justice, the medical institution, the school, the prison, sexuality—everything is merely a staging of domination.

Derrida taught that texts have no stable meaning, that every signifier slips away, that every reading is a betrayal, that the author is dead and the reader reigns supreme.

Deleuze taught that we should prefer the rhizome to the tree, the nomad to the sedentary, desire to the law, becoming to being, difference to identity.

Taken individually, these are debatable theses. Combined, exported, and popularized, they form a system. And that system is a poison.

For here’s what happened.

These texts, unreadable in France, crossed the Atlantic. The departments of Yale, Berkeley, and Columbia absorbed them in the 1980s. They found there a soil that did not exist among us: American Puritanism, its racial guilt, its obsession with identity. French Theory married this substratum, and the child of that union is called wokism.

Judith Butler reads Foucault and invents performative gender. Edward Said reads Foucault and invents academic postcolonialism. Kimberlé Crenshaw inherits the framework and invents intersectionality. At every step, the matrix is French: there is no truth, there is only power, so every hierarchy is suspect, every institution is oppressive, every norm is violence, every identity is constructed and thus negotiable, every majority is guilty.

That’s how three Parisian philosophers, who probably never imagined their practical consequences, provided the operating software to an entire generation of activists, university bureaucrats, HR managers, journalists, and legislators. That’s how we ended up with a civilization that no longer knows how to say whether a woman is a woman, whether its own history is worth defending, whether merit exists, whether truth can be distinguished from opinion.

It’s sh** for one simple reason, and it must be stated calmly.

A civilization stands on three pillars: the belief that there exists a truth accessible to reason, the belief that there exists a good distinct from evil, the belief that there exists a heritage to be transmitted.

French Theory set out to dynamite all three. Not out of malice. Out of intellectual play, fascination with suspicion, hatred of the bourgeoisie that had nurtured them. But the result is there. An entire generation learned to deconstruct and never learned to build. An entire generation knows how to suspect and no longer knows how to admire. An entire generation sees power everywhere and beauty nowhere.

I apologize because we French bear a particular responsibility. It’s our language, our universities, our publishers, our prestige that gave this nihilism its chic packaging. Without the legitimacy of the Sorbonne and Vincennes, these ideas would never have crossed the ocean. We exported doubt the way others export weapons.

What is being built now, in Silicon Valley, in AI labs, in startups, in workshops, in all the places where people still make things instead of deconstructing them—that is the response. A civilization is rebuilt by builders, not by commentators. By those who believe that truth exists and is worth devoting oneself to. By those who embrace a hierarchy of the beautiful, the true, the good, and are not ashamed to transmit it.

So, forgive us. And back to work.

His viral tweet has been retweeted by Elon Musk, Javier Milei, and 20,000 other people on X, multiplied many more times by Musk and others. 

Eric Hoffer used to write about these guys in the '50s and '60s, the earlier wave of them, French and German intellectuals, plus numerous academics in the states, often noting that they have never having done a day of work in their lives. He linked their relativist and nihilist radicalism to antisemitism, too. Hoffer knew who they were and he  had their number.

So does this guy.

His tweet advances to the recent wave of them, which created an unholy fusion with U.S. academics to produce wokesterism, the reason we see in our culture the inability to define what a woman is, the collective racism charge that never, ever can be ended, and more rubbish that a whole industry has been built around.

Eric Hoffer, who died in 1983, loved those who could express ideas concisely. Since I knew him personally as a high school and college student, I think he would have enjoyed X.

I hope we hear more from this French guy, because knowledge of this kind is power -- that is why this tweet went viral. It's why, when I first discovered Eric Hoffer's True Believer book as a 12-year-old kid, I hid the book under my bed, because to a kid like me, it felt like it contained all the secrets of the universe. Hoffer has never been out of print, because what he tells is the truth. Truth like this French tweet is the same kind of truth, and the gives me the same kind of feeling: Exposes the liars is the strongest way to stamp the wokeism out. It's a reminder that Western Civilization must win this war on ideas.

Tyler Durden Mon, 05/18/2026 - 05:00

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