Category: Richard De Graff

  • Poor Richard’s Report

    Poor Richard’s Report

    Geopolitical Diary: The Turkish and Iranian Balance of Power
    February 27, 2009Turkish President Abdullah Gul announced on Thursday that he will make a one-day trip to Iran on March 10 to attend the Economic Cooperation Organization summit. While the summit aims to improve economic and commercial relations among the member states, the leaders will also discuss bilateral relations and regional issues. Of the two items on Gul’s agenda, his bilateral meetings with the Iranians hold far more interest for STRATFOR than anything that the summit will generate.

    Both Turkey and Iran are on the rise. Until relatively recent times, both have been contained by various forces, most notably Iraq and the Soviet Union. Between the end of the Cold War and American defeat of Saddam Hussein’s Iraq, however, many restrictions on the power of both states evaporated. Both Turkey and Iran are looking for wider roles in their region. Both have grand imperial pasts. Both have ambitions. And both are somewhat oddballs in the world of geopolitics.

    Most nations are oriented around a piece of flat, core territory where the nationality was not just born, but has entrenched itself. For France, Germany and Poland, that core is their respective portions of the Northern European Plain. The core territory of the United States is the coastal Atlantic strip east of the Appalachians. Argentina is centered on the bountiful flatlands around Buenos Aires. The defining territory of China comprises the fertile regions between the Yellow and Yangtze rivers.

    Such flatness is critical to the development of a nation because the lack of internal geographic barriers allows the dominant culture to assimilate or eliminate groups that would dilute or challenge its power. Additionally, plains regions tend to boast river systems that allow thriving agricultural, transportation and trade opportunities that mountainous regions lack. Very few states count mountains as their core simply because mountains are difficult to pacify. It is very easy for dissident or minority groups to root themselves in such regions, and the writ of the state is often weak. Consequently, most mountainous states are defined not by success but by failure. Lebanon, Bosnia, Afghanistan, Kyrgyzstan and Laos come to mind.

    Turkey and Iran are different. Their core lands are mountainous regions — the Anatolian Peninsula for Asia Minor and the Zagros Mountains of Persia. Even though the Turks are not original descendants of their their Anatolian power base, they were able to secure their central lands when they swept in as conquerors a millennium ago and have since destroyed or assimilated most of the natives. The Persians ruled through a dizzyingly complex system of interconnected elites that succeeded in instilling a common Persian culture that extended somewhat beyond mere ethnicity, all while keeping the base of power in the Persians’ hands.

    But that is where the similarities end. As these two states both return to prominence, it is almost inevitable that Turkey that will fare better than Iran, simply because the Turks enjoy the advantage of geography. Anatolia is a plateau surrounded by water on three sides and enjoys the blessing of the Golden Horn, which transforms the well-positioned city of Istanbul into one of the world’s best — and certainly most strategically located — ports. Turkey straddles Europe and Asia, the Balkans and the Islamic world, the former Soviet Union and the Mediterranean Basin. The result is a culture not only incredibly aware of international events, but one steeped in trade whether via its land connections or —by virtue of being a peninsula — maritime trade. Unsurprisingly, for a good chunk of the past 2,000 years, Anatolia — whether under the Greeks, the Romans, the Byzantines or most recently under the Turks themselves — has been at or nea r the center of human development.

    By comparison, Iran got shortchanged. Although Iran has water on two sides, it has a minimal maritime tradition. Its plateau is a salt desert. The Caspian Sea is landlocked and boasts no major population centers aside from Baku — the capital of another country with a hostile ethnic group. The Persian Gulf coast of Iran is not only lightly populated, but it is easy for powers on the gulf’s southern coast to block Iranian water access to the wider world. While Anatolia has a number of regions that are well watered — even though it does not have many rivers — Persia is predominately an arid region.

    The Turks also enjoy demographic advantages. Only one-fifth of Turkey’s population is non-Turkish, while roughly half of Iran is non-Persian. Iran requires a large army simply to maintain rule at home, while Turkey has the relative freedom to expend resources on power projection tools such as an air force and navy. The difference shines through in their respective economies as well. Despite having nearly identical populations in terms of size, Iran’s economy is only two-fifths the size of Turkey’s. Even in the battle of ideologies, Turkey retains the advantage. The Arab majority in the region prefer Turkey — a fellow Sunni power — to take the lead in managing regional affairs, whereas Shiite Persian Iran is the historical rival of the Arab world.

    Iran may be junior to Turkey in a geopolitical contest, but Iran is still a power that Turkey has to take into consideration. In a major historical reversal, the Iranians have regained influence over Iraq with the rise of a Shia-dominated government that they had lost to the Turks in the mid-1550s, bringing the two powers closer into contact. When two expansionary powers interact closely — as Turkey and Iran are now — they can be either driven to conflict or come to an understanding regarding their respective spheres of influence. In the present day, there are probably more causes for cooperation than conflict between Ankara and Tehran. Iran’s westward expansion gives Turkey and Iran good reasons to cooperate in order to contain Iraq’s Kurdish population in the north. Moreover, Turkey’s bid to become a major energy transit state would improve significantly through a better relationship with Iran.

    Given this dynamic, Gul’s upcoming trip to Iran is likely to be the first of many. The Turks and the Persians have much to sort out on the bilateral level as each seeks to expand their geopolitical influence.

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  • Poor Richard’s Report

    Poor Richard’s Report

    Israel: Apology Issued To Turkish General
    February 19, 2009Israel Defense Forces (IDF) Chief of Staff Lt. Gen. Gabi Ashkenazi issued an apology to his Turkish counterpart for critical comments made by an IDF commander about Turkish Prime Minister Recep Tayyip Erdogan, The Jerusalem Post reported Feb. 19. IDF Maj. Gen. Avi Mizrachi said in a lecture the week of Feb. 8 that Erdogan, who has criticized Israel’s Operation Cast Lead offensive in the Gaza Strip, should first look in the mirror. Ashkenazi told Turkish Gen. Ilker Basburg that Mizrachi’s comment was not the IDF’s official position, and that Israel valued its strategic relationship with Turkey.

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  • Poor Richard’s Report

    Poor Richard’s Report

    Poor Richard’s Report
    Over 300,000 readers
    My Mission: God has uniquely designed me to seek, write, and speak the truth as I see it. Preservation of one’s wealth while continuing to provide needed income is my primary goal for these unsettled times. I have been given the desire to study and observe global money progressions and trends for the last 50 years. I evaluate possible future trends in order to provide positive concepts for you to form your own conclusions. The main purpose of this letter is to warn you of possible financial sinkholes.
    Good Bye Stocks – Hello Bonds

    We are leaving the golden era of free enterprise due to unmitigated greed and chicanery. We can easily adjust if we accept the true meaning of what awaits us. If we fight to retain our old dreams and fantasies we will see ourselves being spoon fed by fat socialist bureaucrats for the “common good”.
    In this letter I will present some facts for your perusal and then you can make up your own mind in regards to your financial decisions. Those willing to change their offensive strategy can become winners in life’s never ending battles.
    The result of these recent price disturbances (all the bubbles bursting) is the falling value of the property that has been borrowed against. The value of the property’s income also falls. We have come from extreme over indebtedness and now find ourselves in a hole – we should stop digging.
    This is a hard lesson that our grandparents learned in the 1930’s, but sadly has been forgotten as satanic greed took over our souls. We now find ourselves caught between a recession and a depression. I call it a MESSYSESSION.
    All the corporations whose bubbles have burst must work down their inventories; since many are in the financial sector this will take time. Individuals must use their earnings to pay down debts to save their homes instead of spending money on frivolous purchases. The Rule of 72 has the deck stacked against them, unless the Usury Law is resumed. The lack of the Usury Law is quicksand for our economic recovery.
    The working down of inventories alone can be deflationary, however, the Federal Reserve has been pumping money into our supply pipeline at super speed. When an entity goes bankrupt, those debts do not go back into circulation, they go to money heaven. This is why the Fed has to keep the supply pool full and why this action should keep us out of a depression.
    Having to pay down all this debt slows down our economy and hurts our suppliers worldwide. This is why we have a world wide Messysession.
    Corporations that have borrowed from the Government will have a hard time maintaining their common stock dividends because their first priority is bond interest. Their second priority is preferred dividends. What is left over will then be distributed to common stock holders or used for debt reduction. Debt reduction means job security.
    Sooner or later the US Government will have to go on a massive borrowing campaign. This could weaken the dollar and send interest rates soaring along with the price of Gold – for a while.
    Some recessions are “V” shaped, which means stocks fall down hard and come back up quickly. Stocks tumble, but recover because there are people looking across the valley. If the recovery is like an elongated “U” or “L” one needs binoculars to see across the valley to a recovery. This could cause price to earnings ratios to shrivel, since analyst’s earnings estimates will be suspect at best. The economy can take a year or two to recover based upon how responsible Congress is. It will be years before our economy fully recovers from all the bubble bursting. What we need is a cheap new energy invention.
    The only period, since 1872, where stocks substantially outperformed bonds on a prolonged basis was the 1950s to 1960s. This was a golden era for stocks and it has taken many abuses to wind down.
    These are some of the many issues that President Obama faces on the home front. Now we shall look at some of his international problems.
    Europe is changing. It used to be that France and Germany were the major players, with Great Britain looking on. The United States has encouraged the expansion of the European Community to diminish the power of the two largest countries. Poland is emerging as an economic power and if Turkey is admitted, as they should be, they will bring new found political clout for the first time since the demise of the Ottoman Empire 90 years ago. Their inclusion could bring stabilization to the chaotic Middle East situation. Turkey has freedom of religion, a vigorous economy (17th largest), and a solid government. Their influence is growing. They also have a strategic location to insure peace long term.
    Then, there is Russia, who can throw all kinds of money around, but when it comes to signing on the dotted line – they cannot be trusted. Turning off gas supplies in mid-winter and canceling major contracts with world-renowned companies are actions that are hard to forget. Obama has pledged to focus US military power on the war in Afghanistan. The bulk of supplies must come from the north. Russia does not want a ballistic missile defense system in central Europe. It wants a halt to NATO expansion and reduced American influence in the Caucus and central Asia. They also want a broad renegotiation on non-trivial treaties that are terrible for Russia in 2009. (Anyone want to be President?)
    We must come up with a way to renew confidence for the consumer. First and foremost is the renewal of our Usury laws that were dropped because disintermediation was wrecking the banking system in the 1970s. Creating lasting jobs will not happen by just building roads. These programs must be done so that they promote or improve future growth. It is difficult to do this on a national level because there are too many fingers in the pie. Programs done on a state level are easier to control. It is more realistic to meet regional needs.
    Lowering corporate taxes when a corporation moves into intercity areas would mean better roads, and businesses to support them. Raising taxes invites tax avoidance schemes that only benefit the issuer. It also removes money from the private sector. Today, pricing power has evaporated.
    There must be global reorganization of the securities laws, most importantly the Uptick rule. Countries that do not participate should be banned from trading within the member countries. Today hedge funds and institutions have spent millions of dollars on sophisticated trading programs. This makes for an uneven playing field and has driven the small investor to the sidelines, as witnessed by declining volume on the exchanges. The large institutional investor becomes the ultimate bag-holder at the bottom of markets when they have no one to sell to.
    If a country’s Gross Domestic Product (GDP) is declining that means the average on corporate earnings will be declining also. This means fewer companies will be showing an increase in earnings and therefore there will be fewer securities that have an investment grade value. Since there are already too many mutual funds and they all cannot buy the same stocks, that game is over. I would sell your mutual funds while you can if you are over 55 years old. If they get too many orders for liquidation they have the option of delivering stock of the same value to you. That is an easy way to get rid of their losers. If you are under 55 and own a balanced fund where the income can be reinvested on a periodic basis you are in the catbird seat. Lower prices will mean more shares and 10 to 15 years from now when the market recovers you could be a wealthy person. Other low income on non paying funds should be sold. It could be 20 to 25 years just to breakeven and that is only if it is a survivor.
    First quarter earnings are going to be a disaster. I suspect this is when many will throw in the towel and give up.
    Gold should be considered a hedge – possible short term.
    Here are some moneymaking ideas. A successful portfolio can be 20% equities 50% fixed income and 30% cash.
    By equities I mean income-producing securities yielding over 5%. There are a few out there that are “stupid” cheap versus dirt-cheap. Then there are preferred stocks, many of which are 85% tax-free. Many are selling below their call price. This means if a company wants to improve its balance sheet, they can do that by calling your preferred from you by paying the call price. If they fail to pay a preferred dividend it becomes cumulative. To resume payments they must make up the back dividends first. One that falls into this category is: AMERCO Pfd A (NYSE) 20 (2-6-09) pays $2.125 which yields 9.41%. gives you a tax free yield of 8%. If they call the stock at $25 you will have a $5 gain which amounts to a 25% gain. You won’t be able to have this return with common stocks over the next several years.
    Tax free bonds were good when income tax rates were 55%-92%. The low tax rates today are beaten by preferred stock’s rates, such as the one I mentioned above. You have a ready market and real value. What you see is what you get. There was an issue on Long Island that defaulted in the depression. A default like that today would wreck havoc in the entire sector. For safety reasons, please avoid tax-free bonds.
    Since the US has to borrow around a trillion dollars or more, Government bonds could be an instant loss. For now, I would avoid these also. That leaves us with corporate bonds. Many corporate bonds have a better balance sheet than the United States. Buying bonds in the five year range is the safest place to be. As the bond gets closer to maturity the price fluctuations are at a minimum and easily salable. You are better off buying an individual bond than a fund. The fund will charge a yearly management fee as well as anything else they can get away with. Also, some funds simply dump bonds into a portfolio and walk away. There was a case where a fund dumped their holdings of an issue right at the very bottom, only to have the bonds called a few months later. Please remember that corporate bond holders have first lien on a corporation’s asset.
    I suspect that in a few months you will see a stampede out of many mutual funds and a proliferation of all types of bond funds trying to cash in on the new trend. Keep it simple- buy your own.
    I know I have thrown many ideas your way in this letter and I apologize, but I feel the times warrant such thinking. I will be available, free of charge, to anyone who would want to discuss any of these ideas at the addresses below.
    CHEERIO!!!!
    Richard C De Graff 2/10/2009
    256 Ashford Road
    RER Eastford Ct 06242
    860-522-7171 Main Office
    800-821-6665 Watts
    860-315-7413 Home/Office
    rdegraff@coburnfinancial.com

    This report has been prepared from original sources and data which we believe reliable but we make no representation to its accuracy or completeness. Coburn & Meredith Inc. its subsidiaries and or officers may from time to time acquire, hold, sell a position discussed in this publications, and we may act as principal for our own account or as agent for both the buyer and seller.

  • Good Bye Stocks – Hello Bonds

    Good Bye Stocks – Hello Bonds

    Poor Richard’s Report
    Over 300,000 readers

    My Mission: God has uniquely designed me to seek, write, and speak the truth as I see it. Preservation of one’s wealth while continuing to provide needed income is my primary goal for these unsettled times. I have been given the desire to study and observe global money progressions and trends for the last 50 years. I evaluate possible future trends in order to provide positive concepts for you to form your own conclusions. The main purpose of this letter is to warn you of possible financial sinkholes.

    Good Bye Stocks – Hello Bonds

    We are leaving the golden era of free enterprise due to unmitigated greed and chicanery. We can easily adjust if we accept the true meaning of what awaits us. If we fight to retain our old dreams and fantasies we will see ourselves being spoon fed by fat socialist bureaucrats for the “common good”.

    In this letter I will present some facts for your perusal and then you can make up your own mind in regards to your financial decisions. Those willing to change their offensive strategy can become winners in life’s never ending battles.

    The result of these recent price disturbances (all the bubbles bursting) is the falling value of the property that has been borrowed against. The value of the property’s income also falls. We have come from extreme over indebtedness and now find ourselves in a hole – we should stop digging.

    This is a hard lesson that our grandparents learned in the 1930’s, but sadly has been forgotten as satanic greed took over our souls. We now find ourselves caught between a recession and a depression. I call it a MESSYSESSION.

    All the corporations whose bubbles have burst must work down their inventories; since many are in the financial sector this will take time. Individuals must use their earnings to pay down debts to save their homes instead of spending money on frivolous purchases. The Rule of 72 has the deck stacked against them, unless the Usury Law is resumed. The lack of the Usury Law is quicksand for our economic recovery.

    The working down of inventories alone can be deflationary, however, the Federal Reserve has been pumping money into our supply pipeline at super speed. When an entity goes bankrupt, those debts do not go back into circulation, they go to money heaven. This is why the Fed has to keep the supply pool full and why this action should keep us out of a depression.

    Having to pay down all this debt slows down our economy and hurts our suppliers worldwide. This is why we have a world wide Messysession.

    Corporations that have borrowed from the Government will have a hard time maintaining their common stock dividends because their first priority is bond interest. Their second priority is preferred dividends. What is left over will then be distributed to common stock holders or used for debt reduction. Debt reduction means job security.

    Sooner or later the US Government will have to go on a massive borrowing campaign. This could weaken the dollar and send interest rates soaring along with the price of Gold – for a while.

    Some recessions are “V” shaped, which means stocks fall down hard and come back up quickly. Stocks tumble, but recover because there are people looking across the valley. If the recovery is like an elongated “U” or “L” one needs binoculars to see across the valley to a recovery. This could cause price to earnings ratios to shrivel, since analyst’s earnings estimates will be suspect at best. The economy can take a year or two to recover based upon how responsible Congress is. It will be years before our economy fully recovers from all the bubble bursting. What we need is a cheap new energy invention.

    The only period, since 1872, where stocks substantially outperformed bonds on a prolonged basis was the 1950s to 1960s. This was a golden era for stocks and it has taken many abuses to wind down.

    These are some of the many issues that President Obama faces on the home front. Now we shall look at some of his international problems.

    Europe is changing. It used to be that France and Germany were the major players, with Great Britain looking on. The United States has encouraged the expansion of the European Community to diminish the power of the two largest countries. Poland is emerging as an economic power and if Turkey is admitted, as they should be, they will bring new found political clout for the first time since the demise of the Ottoman Empire 90 years ago. Their inclusion could bring stabilization to the chaotic Middle East situation. Turkey has freedom of religion, a vigorous economy (17th largest), and a solid government. Their influence is growing. They also have a strategic location to insure peace long term.

    Then, there is Russia, who can throw all kinds of money around, but when it comes to signing on the dotted line – they cannot be trusted. Turning off gas supplies in mid-winter and canceling major contracts with world-renowned companies are actions that are hard to forget. Obama has pledged to focus US military power on the war in Afghanistan. The bulk of supplies must come from the north. Russia does not want a ballistic missile defense system in central Europe. It wants a halt to NATO expansion and reduced American influence in the Caucus and central Asia. They also want a broad renegotiation on non-trivial treaties that are terrible for Russia in 2009. (Anyone want to be President?)

    We must come up with a way to renew confidence for the consumer. First and foremost is the renewal of our Usury laws that were dropped because disintermediation was wrecking the banking system in the 1970s. Creating lasting jobs will not happen by just building roads. These programs must be done so that they promote or improve future growth. It is difficult to do this on a national level because there are too many fingers in the pie. Programs done on a state level are easier to control. It is more realistic to meet regional needs.
    Lowering corporate taxes when a corporation moves into intercity areas would mean better roads, and businesses to support them. Raising taxes invites tax avoidance schemes that only benefit the issuer. It also removes money from the private sector. Today, pricing power has evaporated.

    There must be global reorganization of the securities laws, most importantly the Uptick rule. Countries that do not participate should be banned from trading within the member countries. Today hedge funds and institutions have spent millions of dollars on sophisticated trading programs. This makes for an uneven playing field and has driven the small investor to the sidelines, as witnessed by declining volume on the exchanges. The small investor becomes the ultimate bag-holder at the bottom of markets when they have no one to sell to.

    If a country’s Gross Domestic Product (GDP) is declining that means the average on corporate earnings will be declining also. This means fewer companies will be showing an increase in earnings and therefore there will be fewer securities that have an investment grade value. Since there are already too many mutual funds and they all cannot buy the same stocks, that game is over. I would sell your mutual funds while you can if you are over 55 years old. If they get too many orders for liquidation they have the option of delivering stock of the same value to you. That is an easy way to get rid of their losers. If you are under 55 and own a balanced fund where the income can be reinvested on a periodic basis you are in the catbird seat. Lower prices will mean more shares and 10 to 15 years from now when the market recovers you could be a wealthy person. Other low income on non paying funds should be sold. It could be 20 to 25 years just to breakeven and that is only if it is a survivor.

    First quarter earnings are going to be a disaster. I suspect this is when many will throw in the towel and give up.
    Gold should be considered a hedge – possible short term.

    Here are some moneymaking ideas. A successful portfolio can be 20% equities 50% fixed income and 30% cash.
    By equities I mean income-producing securities yielding over 5%. There are a few out there that are “stupid” cheap versus dirt-cheap. Then there are preferred stocks, many of which are 85% tax-free. Many are selling below their call price. This means if a company wants to improve its balance sheet, they can do that by calling your preferred from you by paying the call price. If they fail to pay a preferred dividend it becomes cumulative. To resume payments they must make up the back dividends first. One that falls into this category is: AMERCO Pfd A (NYSE) 20 (2-6-09) pays $2.125 which yields 9.41%. gives you a tax free yield of 8%. If they call the stock at $25 you will have a $5 gain which amounts to a 25% gain. You won’t be able to have this return with common stocks over the next several years.

    Tax free bonds were good when income tax rates were 55%-92%. The low tax rates today are beaten by preferred stock’s rates, such as the one I mentioned above. You have a ready market and real value. What you see is what you get. There was an issue on Long Island that defaulted in the depression. A default like that today would wreck havoc in the entire sector. For safety reasons, please avoid tax-free bonds.

    Since the US has to borrow around a trillion dollars or more, Government bonds could be an instant loss. For now, I would avoid these also. That leaves us with corporate bonds. Many corporate bonds have a better balance sheet than the United States. Buying bonds in the five year range is the safest place to be. As the bond gets closer to maturity the price fluctuations are at a minimum and easily salable. You are better off buying an individual bond than a fund. The fund will charge a yearly management fee as well as anything else they can get away with. Also, some funds simply dump bonds into a portfolio and walk away. There was a case where a fund dumped their holdings of an issue right at the very bottom, only to have the bonds called a few months later. Please remember that corporate bond holders have first lien on a corporation’s asset.

    I suspect that in a few months you will see a stampede out of many mutual funds and a proliferation of all types of bond funds trying to cash in on the new trend. Keep it simple- buy your own.

    I know I have thrown many ideas your way in this letter and I apologize, but I feel the times warrant such thinking. I will be available, free of charge, to anyone who would want to discuss any of these ideas at the addresses below.

    CHEERIO!!!!
    Richard C De Graff
    256 Ashford Road
    RER Eastford Ct 06242
    860-522-7171 Main Office
    800-821-6665 Watts
    860-315-7413 Home/Office
    rdegraff@coburnfinancial.com

    This report has been prepared from original sources and data which we believe reliable but we make no representation to its accuracy or completeness. Coburn & Meredith Inc. its subsidiaries and or officers may from time to time acquire, hold, sell a position discussed in this publications, and we may act as principal for our own account or as agent for both the buyer and seller.

  • Poor Richard’s Report

    Poor Richard’s Report

    United States: Treasury Calls Anti-Iranian Kurdish Group A Terrorist Organization
    February 4, 2009The U.S. Treasury has labeled the anti-Iranian Kurdish group Free Life Party of Kurdistan (PJAK) a terrorist organization and will freeze any assets the PJAK has under U.S. jurisdiction, Reuters reported Feb. 4. PJAK is a front for the Kurdistan Workers Party (PKK), which has been fighting against Turkey’s government for 25 years. PJAK members fight

  • Poor Richard’s Report

    Poor Richard’s Report

    Geopolitical Diary: The World’s Pivot
    January 30, 2009Turkish Prime Minister Recep Tayyip Erdogan created a stir at the World Economic Forum in Davos, Switzerland, on Thursday with a lengthy condemnation of Israel’s recent actions in the Gaza Strip.

    Erdogan’s speech was clearly prepared beforehand — read directly from papers he was holding — so this was no off-the-cuff comment that could be written off. And sitting right next to the Turkish prime minister the whole time was none other than Israeli President Shimon Peres. After Peres delivered a counterpoint, Erdogan went on what detractors would probably label a rant, which ended with a brief argument with the moderator about time limits before he abruptly walked off the stage, having said, “I do not think I will return to Davos.”

    Back in Turkey, the response was mixed: Some were surprised by their leader’s actions, and some were thrilled to see him lambaste both Israel and the European elites at Davos. Indeed, it is a matter for debate both within and outside Turkey just where Erdogan and his Justice and Development Party are taking Turkish policy in the near future. There are those who see his bold criticisms of Israel as a clear bid to seize a leadership position for Islamic sentiment throughout the Middle East. Others see Turkey asserting itself in order to counter, or perhaps collaborate with, a resurgent Russia. Still others see Turkey pushing to join, or perhaps utterly reject, the European Union. The one thing that is clear is that Turkey is moving more assertively than it has in decades.

    It has been almost 90 years since the world has seen Turkey as a place that projects any power on its own. Since the fall of the Ottoman Empire, the Turks have been extremely insular, dabbling only rarely in events beyond their borders. Granted, Turkey was a key participant in the NATO alliance during the Cold War, given that it shared borders with the Middle East, Iran, the Soviet bloc (Bulgaria) and the Soviet Union itself. It has been a long time, however, since Turkey pursued an activist foreign policy — and most of the world has forgotten just what that means.

    Turkey occupies on some of the most valuable real estate in the world. The Anatolian plateau is high and easily defensible, and as a peninsula it also supports a thriving maritime culture. Both are excellent assets for growing a successful state. But Turkey’s most important feature is its critical location. It sits astride the land routes connecting Europe, the former Soviet Union and the Middle East — not to mention the straits connecting the Black Sea and the Mediterranean. It is the only country in the world that is positioned to project influence readily into all of these regions.

    A deeper look reveals that the territory that comprises modern-day Turkey has been at or near the center of the human story for thousands of years. It was the home of the Hittite empire some 3,300 years ago, and afterward its Aegean coast was part of Classical Greece. Not only was Anatolia a key component of the Roman Empire, but Byzantium — based in what is now Istanbul — was Rome’s immediate political, cultural, religious and economic successor. That entity in turn was succeeded by the Ottomans, who crafted what was at the time the world’s greatest empire — which almost unilaterally enabled humanity to emerge from the Dark Ages, even at times conquering a good portion of what would eventually become Western civilization. For about half of the past two millennia, Anatolia has commanded the world’s most powerful economic and military forces.

    The bottom line is this: Any time in human history that the Anatolian Peninsula has not been a leading force in geopolitics has been an aberration. The land that links Europe to the Eurasian steppe to the mountains of Asia to the Mediterranean basin and the deserts of Arabia is geographically destined to play a major role on the global stage. If the world has a pivot, it lies in Turkey.

    And although the direction of its movement remains up for debate, Turkey — after more than 90 years of quiescence — is moving again.

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