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Turkey's Financial Crisis

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Re: Turkey's Financial Crisis

#81

Post by lostlogin »

wheelerof4te wrote: post #36
DSingularity wrote: post #9

Earlier quoted context omitted.

Throats were slit? I never read that. If you believe in democracy you would celebrate the failure of a coup. Even if you hate the surviving leader, you ought to prefer defeating him within the frameworks of democracy. You seem to really dislike Muslim culture. If the people of Turkey want their culture to closer to that of Syria instead of Germany, what’s the problem?

Westerners think that their culture is the greatest of all time, how could you not accept it? They are even exporting it together with their bombs and missiles in case you don't comply /s But seriously, if their "culture" consists of gender theories, Holywood movies, superhero novels and the like, they can keep their culture.

You’ve picked a subset of a subset of a subset.

There is a little more to it than that, and a similar style summary of your preferred culture would be pretty dark.

Re: Turkey's Financial Crisis

#82

Post by lumost »

jbay808 wrote: post #64
lumost wrote: post #13

Earlier quoted context omitted.

there is a "natural" interest rate which is roughly what a lender would expect to earn when lending to a reputable borrower. The Federal Reserve/ECB may lend at a slightly lower/higher rate than this natural rate - but going far away from it leads to a crisis as the money supply becomes distorted. There is a big difference between lending at 0% when "natural" interest is .25% and lending at 14% when natural interest…

> Lending at 14% when [...] inflation is 18% In the US, inflation is nearly at 7%, while savings accounts yield around 0.05%. Doesn't that mean Americans are discouraged from keeping money in savings accounts about the same amount as Turks are?

Quite possible that the US is going down the same route Turkey is. The US has an entrenched financial system that might take an extra 6 months to enter a crises.

The current belief is that the fed will manage inflation appropriately, and that the 7% headline number will vanish in a few months. Housing increasing 20% last year is a sign that the same incentive is there, getting a mortgage at 2% and then earning a free 5% interest is too good a deal to pass up.

Re: Turkey's Financial Crisis

#83

Post by costac »

mghfreud wrote: post #73
costac wrote: post #54

Earlier quoted context omitted.

Borrowing costs increased independently of the new savings product. They were rising well before it was announced and increased further because the market priced in a higher level of inflation following the sharp depreciation. The higher rate on deposits that the new saving scheme offers doesn't increase funding costs for banks in anyway. The Treasury literally pays the depositors the extra yield, not the banks.

Does it matter if it is direct result or second order? BTW, this week, the interest on private loans increased substantially, not gradually.

Independent is very different from second order.

And, yes I know interest on loans increased substantially but that has nothing to do with the new saving product and everything to do with the meltdown in the lira that preceded.

Edit: And in any case why would banks raise loan rates if they don't have to bear the cost of the new product?

Re: Turkey's Financial Crisis

#85

Post by wheelerof4te »

JumpCrisscross wrote: post #77
wheelerof4te wrote: post #71

Earlier quoted context omitted.

US refused to sell Patriot missile system to Turkey. It also refused to sell it's F-35 fighter jets before Turkey formally requested to buy S-400 anti-air missile system. US knows that it cannot keep Turkey on a leash like it can, for example, France or Greece. So it does not want to sell it weapons, in case Turkey ever becomes a "problem" (read too powerful to control).

> in case Turkey ever becomes a "problem" (read too powerful to control) Is this honestly the line Turks are being fed? The concern is Turkey becoming a failed state and terrorist hotbed, for the U.S. and Russia, and a new migrant source, for the EU. If Turkey could reliably project force in the region, it would solve a lot of American strategic problems.

"The concern is Turkey becoming a failed state..."

Of course, there is a real danger of that happening. Turkey can indeed become a failed state...if USA attempts another coup or color revolution.

Look, there are multitude of concurrent attacks, both military (inside Syria by using Kurds/SDF) and economic being made agains Turkey for it's failure to be a "good NATO ally". I don't like Erdogan, and I care not about what happens to him. Turks do, though.

Many people will die if Turkey turns into another Iraq, Libya or Syria. And I don't want that to happen.

Re: Turkey's Financial Crisis

#87

Post by forvelin »

baybal2 wrote: post #25
forvelin wrote: post #14

Earlier quoted context omitted.

is this unexpected ? erdogan literally buys weapons from russia as a nato member, allies with putin at every occassion and disregards any civilized values. he'd like to squeeze minorities as he wants, oppress the opposition as he wants and ally with whoever he wants. at that point, people might not want to cooperate with you, a bit of diplomacy eh ?

> erdogan literally buys weapons from russia as a nato member After US refused to sell PAC 3 despite Istanbul pleading for it since even before Erdogun

istanbul does not plead for anything, ankara may though.

Re: Turkey's Financial Crisis

#88

Post by jcfrei »

1cvmask wrote: post #5

I looked up the core values of Turkey. And their debt to gdp ratio is 40%. Neighboring Greece is 200%. The Turkish economy was the second fastest growing economy last year in the G20 and is on pace to be the one of the fastest growing economies this year. Turkey has had record exports and been one of the most successful in tourism both last year and this year helping the current account deficit. Yet bankrupt Greece c…

Any source on that claim that Obama was behind the coup attempt in 2016?

Re: Turkey's Financial Crisis

#89

Post by Andrew_nenakhov »

The worse crisis Turkey has now, the better it is for its future. The policies of a charismatic autocrat must publicly and catastrophically fail, vaccinating the country against such types and returning the county on the secular track.

In democratic countries, people can rebuild from any crisis, so any dark period is temporary. In theological autocracies darkness has no end, and future gives no hope.

Re: Turkey's Financial Crisis

#90

Post by Andrew_nenakhov »

smnrchrds wrote: post #18
hereforphone wrote: post #2

Erdoğan claims that lowering interest rates to zero or near zero is more in line with Islamic principles, which may be true (according to interpretation of Islamic principles, I assume). This is a bold move that reinforces what was already suspected: he is continuing to solidify his power by appealing to Islamic sympathies. During the recent coup calls to resist the belligerents were broadcast over mosque loudspeaker…

> Islam was acceptable (as Turkey was attempting to be a "free" republic), but not compulsory. Until Erdogan overturned it, there was a ban on women wearing hijab (the head covering , that the vast majority of Muslims consider a basic tenet of their religion) in universities in Turkey. I leave the judgment to you, but personally I wouldn't consider asking millions of people to choose between adhering to their religio…

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