The question of whether the U.S. Federal Reserve's (Fed) interest rate hike on March 15 will have a negative impact on emerging economies like Turkey is being debated at the moment. Such debates should be left behind now. The markets have already priced in the Fed's interest rate hike, but even if it was not so, the dollar-based monetary system is being replaced by local currencies in developing countries that highlight trade in their national currencies.

Moreover, it is also very hard for the U.S. to continue with an overvalued dollar. The U.S. has had trouble with the export of even high tech products that have highly flexible global competitive power and that do not depend on prices, such as the pharmaceutical industry, over the past two years.

There are far-reaching structural problems behind the political troubles that Turkey and developing Asian countries are experiencing with the Western world and the U.S today. These basic problems highlight the far right and racist politics in the West -a dead end in the strictest sense. Democrats in the U.S. are complaining about Donald Trump now, but what did the two-term Barack Obama and Bill Clinton administrations bring to the U.S. and the world? What economic and political problems did they solve? On the contrary, these Democratic presidents bought about a war-based impasse. The Reverse Plaza Accord of 1995, which was the most important step that brought George W. Bush to power, was introduced by Clinton during a time of an appreciating dollar. Obama introduced politics that created the Daesh terror that has turned the Middle East into a bloodbath. It is the Obama administration's legacy to support terrorist organizations such as the People's Protection Units (YPG), which is no different from Daesh. Now, we are waiting to see whether Trump will reject this evil legacy and pursue a new path. In fact, there is a need for a new economic and political policy in order for both the U.S. and Europe to overcome this crisis. The rise of racist and fascist movements in Europe is not a coincidence, but a direct consequence of economic collapse.

The U.S. and the developed countries of the West are losing their privileged technological positions in technology-intensive areas. So, they need to create price competition in order to maintain their rent and global monopolistic positions. This is because Asia has reached a certain level of technology and has outperformed the West in many areas. However, the even more worrying thing for U.S. hegemony is the further maturation of this technological proliferation in the defense industry and cybersecurity areas. Developed countries are also losing their old power in the global trading system. The EU is no longer a union that is pushing up the economy of member states and increasing their share in global trade. The eurozone countries are experiencing serious difficulties in exports due to the currency they cannot manage and as such, they are leaving their competitive chance to countries like Turkey.

The U.S.-centric monetary system, which was founded after the second war on sharing, namely World War II, has also begun faltering. In other words, the Bretton Woods system, which accepted the dollar, and the euro after 2000, as reserve currencies with no gold or silver basis, has tottered. It is impossible for global trade to progress with this system. Free trade agreements that highlight trade in local currencies are becoming widespread among developing countries.

Turkey-Russia relations

Within this framework, economic cooperation between powerful countries in the region such as Turkey and Russia that will lead to a new union is becoming more of an issue. President Recep Tayyip Erdoğan will hold crucial talks in Russia today. The meeting between Erdoğan and his Russian counterpart Vladimir Putin will be a historic and crucial one. One of the most important topics to be addressed during the meeting is the trade that both countries will carry out with their national currencies and the cooperation in production and trade in strategic industrial areas.

This cooperation will not depend on dollar-based deals. Last year, Putin said at a press conference with Hungarian Prime Minister Viktor Orban, "We will not give up cooperation with Turkey. No matter what Europe offers us from now on, we will not forget the promise we have given to Turkey. The important thing is long term cooperation." With this statement, Putin undoubtedly meant the stage we have reached now.

I think Putin has correctly evaluated the whole process and figured out the crisis in Europe, and in the West in general terms. Putin foresees that, if the EU continues like this, a new union, which will start from the east of Turkey and in which Turkey will be one of the decisive powers, will emerge. This union might include Adriatic and Maghreb countries as well.

The German-centric European financial capital rejects the peaceful and inclusive EU that was dreamt up by Victor Hugo. Then, I do not see why there wouldn't be a new Turkey-centric union, including Southern Europe, the Middle East and the Caucasus, an as alternative to it.

Such a path will benefit the U.S. and the U.K. in the medium and long term. In fact, the economic stability ensured in the Mediterranean, the Middle East and the Caucasus means new markets, competition and a new economic dynamism that will push up the global economy. Unlike in the 19th and 20th centuries, it is no longer possible for a single country to control energy and natural resources in these regions. It is possible to create a new game that allows everyone to win. Perhaps, this is the only chance for both the West and the East today.