Erdogan U-Turns: Why is the Lira Still Collapsing?

[@CylindricalCow]

Every time we see an update about the Turkish economy, it always seems that it's somehow reached a new low.

[@Omer1996E.C]

That's what the mainstream media wants to show you. Erdogan elected, bad Seculars got divided, bad Economic reforms arrived, bad Turkey made a nuclear reactor, bad Turkey manufactured it's weapons, bad There are new positive things in Turkey, bad

[@aspharmyx]

Never say it cant get worse in Turkey. It will.

[@Schaelpy]

Consequences of autocratic leadership

[@kevinboros7427]

Good. Maybe if Turkey crashes and burns the people will finally learn that borderline autocracies are not the best way to govern a nation. Also, maybe they'll stop blaming the US for everything and start looking at the people who are actually leading the nation for answers.

[@rowanwild8445]

@@SchaelpyWell it’s not even about autocracy here. It’s just very stubborn Muslim belief that interests are a Jewish banking demonic thing applied politics. It would be absolutely hilarious if Turkish people weren’t suffering as much.

[@youryoutubeyoda]

appearently interest rates are unislamic no more

[@kevinboros7427]

They are only unislamic until Erdogan gets re-elected, of course.

[@bzuidgeest]

Like any religion espousing figure. Islamic is whatever he wants it to be. And the religious idiots falling for it are beyond stupid.

[@QuarianGuy]

He released a brand new update for his religion

[@kamelkadri2843]

Islam had nothing to do with it, They just use it as a blanket to cover their mess, and people are stupid enough to cheer

[@Anverse-14]

​@@wakaisgoodlolololol Keep blaming "them" lol. Certainly Turkey had any policies to combat this evil of "them" Oh wait, they did.

[@kompatybilijny9348]

It is incredible how many things this year that everyone predicted would happen happened, yet everyone responsible for them was still absolutely baffled by the result.

[@kaplinbaa6609]

? This idiot predicted that erdogan would lose. Guess what he didnt. He also is saying that Turkiyes economy will colapse and still hasnt.

[@maximusasauluk7359]

I fact that Erdogan put the country in this state and people STILL voted for him. I mean, are people literally stupid or this is a suffering kink at this point? How daft can half of Turkey be? It's just so bizarre and intriguing, it's even more blizarre than Trump winning in the US lmao

[@dzcav3]

Wisdom has left the building, shortly after integrity. People don't vote based on any worthwhile values, just for the person who promises to steal more stuff from other people to give to them.

[@MSDGroup-ez6zk]

Good for Turkeye. The cheaper Turkeye goods, more dollars they collect. Imagine if at sudden Turkeye sold all the USD? Has any USA allies think about it? Of you haven't reached that point?

[@dzcav3]

@@MSDGroup-ez6zk Turkey has no excess dollars to sell. Even if they sold what they had, it would be a drop in the ocean. And if they did sell dollars, they would have nothing left to pay for their imports, especially energy. Please study economics.

[@Hames8]

I wonder if Erdogan will use this as evidence to revert back to lowering interest rate.

[@bzuidgeest]

I wondered that too. It would be interesting to see that. Like watching the titanic sink. So many lives destroyed, but spectacular from a distance

[@joelchee9308]

If he said interest rates are unislamic, appointing a female governor of the central bank is even more unislamic, probably he'll use that as a scapegoat , but the stupid thing would be why would he have appointed her in the first place, just to hike interest rates which he fired 3 central bank governors for doing so?

[@tomlxyz]

But they're running out of foreign reserves so keep going the old way will only make it worse faster

[@Hames8]

@@tomlxyz I know that is a bad idea. But it always was a bad idea to lower interest rate during inflation. That didn't stop Erdogan before, so why now? What exactly was the point of lowering interest rate in the first place and why did the policy change now?

[@justsefa1843]

@@Hames8 Why do you increase interest rates? To encourage saving money. But when your people save money in foreign currency, does high interest rate work? No. What does low interest rate encourage? Spending money. What does spending money do? Fuel the economy. Not that I agree with how the government handled the economic situation, but there is much more logic in what the government is doing than what people are suggesting in this video or in the comment section. Trade balance is going towards 0. The heavy import dependency is vanishing. Putting the damage aside, the economic policy did on the people, the idea still works. Even nominal GDP is on the rise.

[@m.aydogmus5834]

Hi, I am from Turkey. Despite the sinking economy because of Erdogan, people still chose him. Because People think Erdogan, who turned the economy upside down, manages the economy well. People who voted for Erdogan think that the economy is bad because other countries are attacking Turkey. There isn't much else I can say. I don't want to live in the country any longer. This level of ignorance is too much for me.

[@catdogmousecheese]

A person is smart, people are dumb, panicked, dangerous animals and you know it. Tommy Lee Jones

[@Daltarakis]

Dünyanın sonu gelmedi, sakat kalmadın veya özgürlüklerinden mahrum kalmadın. Orda burda ağlayacağına ülke veya kendi adına bir şeyler yap

[@Saturn-xr4zh]

aynen aynen ondan :D erdoğan destekçisi olmasamda erdoğanı halk (çomarlar hariç) kılıçdaroğlu hdp desteğiyle geleceği için(haklı olarak) erdoğana oy verdi.Kılıçdaroğlu popüler bir aday değildi hdp desteği üstüne tuz serpti %10luk hdp oyu için %20 lik küskün akp ve milliyetçi oyunu elinin tersiyle itti.

[@georgehfnm9623]

You know what buddy? It could be worse. For all the negatives Erdogan has at least in theory you are still able to choose your own way of doing things. Here in Greece we are essentially a protectorate. Brussels choose the economic policy we have to follow and it doesn't matter what we do. I don't want my family and me to live in this country either. But what can we really do? I wish the best for you and for your family neighbor....

[@peterclarke7240]

Tends to be the way. Populist leaders are called that for a reason. They tell people what they already believe, doubled own on scapegoating, and refuse to admit they've made a mistake. And before too long, you have yourself a lovely cult of idiots who think if they retreat a century or two in terms of their civil liberties and education, and organise lynchmobs to deal with whoever is the current scapegoat, then everything will be fine. People are cowards, basically. They don't like their beliefs being challenged, and change terrifies them. It's all a bit tragic, really.

[@Martin-di9pp]

Sad to see how the economy of an entire nation goes down the drain because one man's ego prevents him from admitting he's wrong.

[@justsefa1843]

The economy is going up. Where do you get the idea that it is going down?

[@justsefa1843]

@hecktorrhyanm146 Of course Mr. economist. There cant be any other reason.

[@justsefa1843]

@hecktorrhyanm146 Man please spare me your bs. Exports are rising. Renewable energy production is rising. Turkey got new investors and the new gas field certainly helps out as well. You are being resentful for reasons beyond rational comprehension. So please... Keep your nonsense to yourself. I dont want to hear it.

[@TheFalseShepphard]

@@justsefa1843 Buddy whatever Mr. Soylu is paying it's not worth it, These people aren't like the ones around you they're educated for once and aren't gonna eat up your crap

[@justsefa1843]

@@TheFalseShepphard "If you dont agree with me, you must be a government supporter". Cut your crap. There is enough reason to dislike the government, the current development is not one of it. Educated my ass. You guys dont understand basic concepts and act like you figured everything out. Somehow people doing their jobs for decades know nothing of this magical tool that solves all of Turkey's problem. Yeah increase interest rates to 50% and see how your economy contracts.

[@luisdestefano6056]

Being Argentine, I know a thing or two about high inflation. How do you believe they keep depositors happy with an interest rate of 8.5% (now 15%) when inflation runs on a 75-100% annual basis (depending on whom you believe)? The guarantee to maintain the value of deposits is a fantasy! How is this huge difference paid? Very simply, they just print more and more lire, which fuels inflation higher and higher. I am very sorry to say that Turkiye is going straight into hyperinflation. Let me tell you, it is not nice.

[@riplikatlnloki5091]

Their schemes are helping to stay afloat but in the end, that’s just delaying it

[@tanerfurkanicoz4425]

Hiperenflasyon yok türkiyede. Türkiye yi arjantin ile karşılaştırma

[@mehmetgurdal]

"I know a thing or two about inflation " I chuckled because this reminded me of the video of a dinosaur that gave a speech about the climate change. :D

[@celestialcolosseum]

@@tanerfurkanicoz4425 Aynen, o yüzden 3 sene önceki fiyatlar şu ankinin yarısından daha az. Alım gücün kalmamış bir kölesin ve hala kendini kandırmaya çalışıyorsun, daha aciz olamazsın herhalde. Türkiye halkının asgari ücretle çalışan kesimi yaklaşık %60 ve asgari ücret açlık sınırının çok altında, bilmem anlatabildim mi.

[@anl8081]

@@tanerfurkanicoz4425 olacak diyor zaten, var demiyor.

[@gdlghdghslghsdghksdghk]

erdogan: yes vote me and i will put pressure on sweden one guy in the crowd: how are you gonna fix economy *he gets thrown away* erdogan: anyone else wanna ask questions?

[@jackholler3572]

Believe me Turks do not care about sweden or finland or quran. However we do care about support to terrorism. They will be accepted to NATO but you are insignificant as always

[@fictionindianspaceprogram-222]

People shouting Allahu Akbar.

[@JhoneWick-xy2ol]

Yes I Don't Any Question But I wish that Yunanistan or Greek Geek or Greece Oil Should be Soon merge with a Turkey to Expand The Turks Territory 😉 and I have No Doubt that, That Day will Come Before The Judgement day 🤗🙃🙃🇵🇰🇵🇰🇵🇰

[@SirDeadPuppy]

@@JhoneWick-xy2ol so you think that starting a war with the Greeks will fix everything ? LOL

[@MSDGroup-ez6zk]

Good for Turkeye. The cheaper Turkeye goods, more dollars they collect. Imagine if at sudden Turkeye sold all the USD? Has any USA allies think about it? Of you haven't reached that point?

[@apextroll]

The simple answer is that the market doesn't have any confidence in the new policy. Confidence comes with time and consistency. Had Turkey fought inflation with higher rates, they would likely be well on the right side of this.

[@ronnelacido1711]

The market are not totally sold to the idea that Erdogan will let his new appointees do their job freely without any intervention from him. After all, if he did it before, he can do it again.

[@gavinkalaher7314]

From somebody who lives here, food inflation is more like 300% over the past two years.

[@adelalmohtaseb5261]

In turkey it isn't 300

[@gavinkalaher7314]

@@adelalmohtaseb5261 I'm sure you'd know better than I.

[@notatroll78]

welcome to molla erdogan regime brother we have molla regime in iran for 40 years and its the same

[@JohnWick-hy1st]

Official inflation is always lower compared to true inflation due to eggs in basket theory. Here in Netherlands it is at around 12% while everyone knows it is much higher than that.

[@gavinkalaher7314]

@JohnWick-hy1st yes true, there's another metric called core inflation. The theory you refer to is the CPI, consumer price index (based on a similar basket of staple food goods), which has been heavily manipulated over the decades (to make believe inflation is less than it is).

[@homenj3897]

The Turkish voter’s/citizens recently re-elected their leader. Thus, it is difficult to criticize and complain about someone who you want as your leader. They have what they wanted.

[@immukoo9200]

52 percent doomed the 49 percent...

[@ecnalms851]

@@immukoo9200 I wonder what the result would've been if the Turkish diaspora didn't vote. The influence they have on Turkey when they don't even live in the country

[@wta1518]

@@immukoo9200 You might want to double check that math.

[@bigjamal5229]

Almost half the country didn’t vote for him and the opposition was a pretty bad choice anyway. The breadth of things Erdogan did to try and sway the election was astonishing; from financial incentives for voters to controlling state news to sway the Turkish population. You really can’t say the Turkish population can’t complain about what Ergodan is doing, unless of course they stupidly voted for him.

[@MSDGroup-ez6zk]

Good for Turkeye. The cheaper Turkeye goods, more dollars they collect. Imagine if at sudden Turkeye sold all the USD? Has any USA allies think about it? Of you haven't reached that point?

[@brrkbtl]

For just a few weeks they gave the impression of there will be a u-turn and central bank will be independent. However, it is obvious that the financial policies are still determined by Erdoğan . That's why the collapse will go on

[@justsefa1843]

That is simply wrong. Interest rates got doubled. Lira devaluation =/= economic recession.

[@seadkolasinac7220]

@@justsefa1843 bro did you watch the video? The interest rates were barely increased given how high inflation is

[@justsefa1843]

@@seadkolasinac7220 They doubled. How is that "barely increased"? It is also expected to go up even further. How do you conclude from this that interest rate are low and where do you get your information on how high the interest rates have to be? Do you have the data of the turkish central bank at hand or what are you on about? The average assumption for interest rates by experts is at about 30%. This doesnt mean that it instantly has to be there.

[@justsefa1843]

@@Chucksss316 I am sure in your book Japan is poor. Afterall 1 EuRo iS +130 yEn, pOoR cUrReNcY!!?!?!?!? No one is saying that the currency is not an issue. It is not the primary issue. And either way nominal GDP, exports and wages are rising. So your entire smug nonsense is uncalled for. Especially when experts are looking at the future of Turkey quite positively. Especially with Simsek in charge. Whine more. Please.

[@spugelo359]

@@justsefa1843 "Doubled" isn't much when it was sitting at 8.5%. That's 6.5% increase. It was 19% before getting lowered to 8.5% and now 15%.

[@ReekyCheeks]

*You get what you vote for.* 🗳️

[@Saturn-xr4zh]

Opposition leader was worse than Erdoğan.

[@3three3]

but wasnt the west calling it rigged? The west flip flopping is why the entire world hates you

[@chrislouis7913]

I have a feeling that erdogan wouldn’t have won if was just Turks in turkey that voted. Should send all the Turks living in Germany back home and show them what they voted for

[@kaplinbaa6609]

Yes, Nucleair Energy plant thats wy I voted for Erdogan 😎

[@googane7755]

Except for those who didn't

[@Full-of-bs]

Going in reverse is not that helpful when you’re already two wheels over the cliff edge

[@justsefa1843]

So when I am knees high in the ocean, I should just keep walking into it, it will eventually get better? Got you. 10/10 advice.

[@Full-of-bs]

@@justsefa1843 Nah, but when you’re already in the deep ocean and cramped up, it’s gonna be pretty hard to swim back

[@justsefa1843]

@@Full-of-bs So I should just accept my situation and die. Got you. 10/10

[@Full-of-bs]

@@justsefa1843 My comment is pure ridicule towards the situation, not a suggestion on what to do. The majority of Turkey and Erdogan repeatedly chose economic stupidity; they’ve beaten the patient to an inch away from death and now they want to save her? Enjoy the comeuppance.

[@justsefa1843]

@@Full-of-bs You are ridiculing that actions are being taken thou. Even with the opposition in charge, I dont see how else you are suppose to fix the situation. You seem to have a better understanding about the economic situation than trusted economists in charge of the turkish central bank and the turkish economy. "The majority of Turkey and Erdogan repeatedly chose economic stupidity; they’ve beaten the patient to an inch away from death and now they want to save her?" Let's just take your words at face value: So what? We are suppose to let the turkish economy die? Where is the logic in that? You are being absolutely irrational for no reason.

[@concernedcitizens4110]

Congrats Turkish people you all voted for him don't go blame the West for this and if you want to join Russia and China and leave NATO then go on don't let the door hit you on your way out we will admit Sweden, Moldova and maybe Ukraine to the alliance. We certainly don't want a tin pot dictatorship operating in our democratic body.

[@hendrx]

I hope for the love of God you're not British saying that

[@vibhavburju1686]

Turkey isn't even a democracy anymore and hasn't been for the past 8 years or so. The election was rigged by Erdogan. It's like blaming China's problems on their people even though they have no control over their government.

[@SirAlph4]

@@WyrmsouI The US what a great country the Land of the oppressors, racists and LGBT sympathizers. Hopefully the downfall for such an arrogant country will also come soon

[@pjhgerlach]

​@@WyrmsouIThen they can help Putin to defend Moscow against Wagner.😂

[@bzuidgeest]

​@@vibhavburju1686the Chinese definitely have some control. They successfully protested zero Covid. They just enjoy the continued growth that they had for so long, so they just didn't do anything. If the Chinese economy collapses, that will change very quickly i suspect. Xi won't stay in power long after such a thing.

[@asdfghjklasdfghjkl321]

I don't understand how the heck he won reelection, he's a terrible leader. Like can someone explain to me why someone so bad can win again? Like I'm genuinely curious 🤨🤔

[@kazmahamza3115]

Don't believe the western media that easily.

[@soberman1520]

Nationalism, religious conservatism, and "Islamic value" and trend of desecularization in ME and of course that happens after falling autocratic regimes in ME

[@robertoalex4245]

Well during the election Erdogan had to hide his massive failures so he started this ideea that if the other guy wins Turkey will be a slave to the West. To you it might sound ridiculous, but Turkey actually swalloed it up very well :)) and they voted for him. There was economic grouth in the past few decades and people attribute that to him but most countries experienced that grouth because of the increased global trade.

[@Wozza365]

Control of 90% of the media for starters...

[@saltukkas]

I give you a small recap as an educated Turk escaped to Germany. Turkey is mostly an uneducated country with religious beliefs. By mostly I exclude the western Turkey and Mediterranean portion, where people are more educated and culturally close to Greeks (like consuming alcohol is a huge culture also for family dinners and so on). Unfortunately, the religious and uneducated eastern Turkey is prone to propaganda. And as you can guess, they are the majority (around 60 - 70 % in my opinion). Well, the propaganda is too powerful on uneducated people, kinda same as Russians believing they are trying to destroy evil Nazis in Ukraine. Therefore, they idolize Erdogan and vote for him. At the meantime they drag the educated western portion down with their votes and we also have to live under this shitty government. One of the more common sayings I heard from these people during the elections were: I rather eat bread and onions and not be a traitor (traitor meaning electing more western leaders...) I genuinely don't know how Turkey can fix the problem... I'm so grateful that my parents saw this coming years ago and sent me to Germany to study.

[@LiamNI]

The official inflation rate is the biggest load of bullshit. It's closer to 150%. I have been living in Turkey for almost a year now and I've seen a bottle of coke go from 14TL to 26TL in less than 6 months. Minced beef went from 40TL to 90TL. Bread, from 9TL to 26TL. The only saving grace for me is that I get paid in real money, so while there were a lot of increases, recently things have gotten a little cheaper for me, but I feel incredibly sorry for the locals.

[@celestialcolosseum]

What kinda bread are you buying man ? If it's 9tl i assume you're buying the supermarket ones but the bakery ones are way cheaper and healthier. Also minced beef is around 350tl/kg which is insane. No doubt the inflation is 3 digits but as for the official value, yeah it's nowhere close to that...

[@grahamstevenson1740]

It's pretty crazy when you let your religion determine interest rates.

[@grahamstevenson1740]

@@happydays4563 Go to hell.

[@Cute_carrot2004]

Just screaming lgbtq will ruin country.. religion fanatics will vote you😂😂😂

[@alfaalfi5866]

My turkish friend left turkey a year ago , he said many" highly skilled workers " left the country.

[@petrairene]

Germany is looking for highly skilled workers.....

[@NorbuWangmo-h6z]

Serves the turkish voters right

[@bokhans]

People recently had a choice and picked Islamist dictatorship over democracy and real economic theory. Just like the Brit’s choice was Brexit the Turks thought an idiot leader was the best option. Looks like it’s working out how the outside world knew it would! 🤦‍♂️

[@kevinu.k.7042]

When Türkiye can no longer get more loans it's economic balloon with come crashing down. As this video points out it is very overextended with foreign currency loans already. It's bizarre, Türkiye has such a good underlying economy with good tech development too.

[@kafkaesk_]

Erdogan established Turkic Republics Fund by gathering 11 Turkic republics and they will found a Turkic Republics Fund Bank, so we don't need to find money from other countries, we will use our common currency. Erdogan will need just 3 months to start to use the currency. In Kazakistan, there is the biggest space center, and they are renting the place for foreigns to launch space rockets. It provides the most income for us. I hope soon Turkiye will survive the economical troubles.

[@kevinu.k.7042]

@@kafkaesk_ Thank you for your informative post. Kazakhstan is a wealthy country. 60% of it's income comes from Crude oil and gas. The Space Station is not a major source of income, though it does matter. Can you please tell me how Kazakhstan figures in Türkiye's economic situation? I also have some doubts whether support form Turkic states would amount to much at all. Türkiye is in a completely different economic league being the 11th largest economy in the world. It might be like asking a group of children to club together to help their parents with a sizeable debt. A common currency with rampant inflation and growing devaluation will not help Türkiye. The Turkic Republics fund seems to be more for the purpose of supporting and developing Turkic areas rather than Türkiye. I see it more as something Türkiye is doing for others. Am I wrong? Yes, I too strongly hope Türkiye get's through this quickly. It has so much to offer to it's people and the world. Wishing you well.

[@vforvandetta8425]

there is a thief rats have tasted the barn

[@rosie9222]

@@kevinu.k.7042 kazakhstan is not a wealthy country it is a poor country

[@kevinu.k.7042]

@@rosie9222 Agreed, but it is a major producer of oil and wheat, both of which Türkiye needs. It also produces ferro alloys and copper. The Turkic countries as a whole have a lot of natural resources. Türkiye has a strong manufacturing centre and needs resources. Add to that that that general area is geopolitically very important. Not only does is border the Russian Federation, but China too and has a lot of oil and minerals. China has been trying to woo it and so attempts to push it's hegemony Westwards.

[@ronnelacido1711]

The effect when religion and governance were mixed together in the past are now making itself felt.

[@Square-ow7oq]

A lesson for America

[@mvn4514]

Thanks for the update.

[@SuperSanic..]

USA also has low interest rate but it's economy is strong. The reason is that people from other countries buys it's dollar and invest in the country to save their assets

[@bebestfamily9181]

You should start making video about Wagner and Russia. I need this plz

[@zarinamassaget6353]

It was just russian cheap show🤡🤡🤡

[@jonataneriksson6560]

Classic example of 'too little too late'

[@justsefa1843]

Hmmm... Inflation going strongly towards single digits, net minimum wage in Euro/USD is on the rise, nominal GDP increased last year and is expected to continue to increase for the upcoming years, a trusted economist is in charge... Hmmmmmmmmm... Yep, this means that Turkey is collapsing. 10/10.

[@coolcool2117]

​@@justsefa1843Bro don't even bother with them. The propaganda is so strong here in Europe they aren't even aware of it.

[@islamaroc]

Like swedish gov

[@ilhanbayramoglu2811]

Lira was holding against foreign currencies with Central Bank selling enormous amount of Euro-Dollar-Gold. Erdogan won the election and guaranteed another 5 years. So he saw that he now has time to do something that makes sense instead of populism. So he called some creditable people to manage money situation(actually the lack of it). Turkey will probably suffer all three of high inflation/high interest rate/high exchange rate at the same time.

[@LizardSpork]

It's not the broth, it's the cook.

[@jeromefitzroy]

Who asked them, they could have voted for change but they didn’t, they deserve it.

[@alexanderg5092]

crazy that in 2023 leaders still use religion to calm the peasants

[@cazwalt9013]

In turkey

[@JitzyJT]

@@cazwalt9013 in most developing and uneducated world leaders use religion and superstition to calm the masses

[@danielharland1354]

Isn’t he basically ignoring the banks and just trying more of the same of what made inflation so high in true first place ?

[@napoleonibonaparte7198]

This is why Ataturk advocated secularism.

[@khalidmn9821]

Secularism destroyed the country for decades

[@khalidmn9821]

@tigran-khanabazyan türkye is still a secular democratic state, but making its way to become an industrialized self sufficient independant state from the west and the east and started to return to its roots as seljuks and ottomans with a bright vision for the future.

[@Abu_Shawarib]

Even Erdogan advocates for secularism. He couldn't give less of a damn on what is Islamic or not, he will just say whatever is more advantageous for the current audience like every other politician.

[@ale3hs]

@@khalidmn9821 Most people in Anatolia, especially the western region, are actually minimally, or unrelated to the seljuks and ottomans. They're ancestors have simply been oppressed over the centuries. Native Anatolians have a very long and significant cultural history, from the bronze age hittites and before, to the mycaeneas etc etc. All completely unrelated to the middle age seljuks/ottomans who invaded from the mongolian steppes. Their plunder and oppression have essentially transformed the region into what it is today. However, this particular region peaked far before the invaders arrived, and has not really conveyed any kind of prominance since....

[@khalidmn9821]

@@ale3hs why trying to hide that the romans were there for a thousand year before seljuks or ottomans after conquering the area? Anatolia has became a homeland for turks, kurds and some arabs as well, the ottoman empire was a multiethnic sultanate that ruled the whole area for six hindred years, the modern turkish state is built on turkish nationalism, it started now to include other ethnicities and keep an equilibrium between western liberalism and eastern communism as well as return to islamic values

[@_Anatolian_]

I can only hope that with new finance minister and central bank governer’s policies make the situation better.

[@TenTenJ]

Pray for your sick nation. Only crazy people vote for such a fool.

[@justsefa1843]

Nominal GDP and wages are on the rise and inflation is going strongly towards single digits. What people dont understand is that the currency doesnt necessarly correlate with the economic situation.

[@ramumanickam1643]

Anything related with islam will always fail

[@danushairan]

hahaha Found a mistake in your script. You meant interest rate, not inflation rate in 6:25. Keep up the good work brothers/sisters at TLDR.

[@carstengrooten3686]

I dont know a lot about economics, but I think they were right. Inflation is compensated for by interest. If both rates are equal, each lira on your bank account loses value over time, but through interest you get more liras, keeping the total value on the account stable. If interest is lower, the value of your liras decreases more than you regain through interest. In that situation you can feel the effects of inflation (you lose value and become practically poorer) and thus there is a 'net negative inflation'. I dont know if TLDRs phrasing was correct in an economic sense, but I think this is what they are trying to say.

[@danushairan]

​@@carstengrooten3686 Well. Brother. Negative inflation has a name it is called deflation. What you are describing is real interest rates and what you say is absolutely true about real interest rates. Nominal Rate - Inflation = Real interest rate. 15% -50% = -35% real interest rate which means your account loses 35% of its value. I am not disputing his argument or his logic because both of them are true. What he wanted to say was a negative interest rate but he made a small error. The TLDR team has a good grasp of real economics and real politics. I hope you do not take from my post that I doubt their competence because I do not.

[@chillijoe8264]

house price collapse in the UK... there have been small regional reductions nothing even remotely like a collapse... what the hell are you talking about...!

[@ORO323]

I wonder who Erdogan supporters blame for this mess. Certainly not Erdogan himself, right?

[@kamelkadri2843]

They blame "them" shadow people in other words anyone but the goverement

[@tabhesab3555]

Usa and its allies

[@ramumanickam1643]

Islam caused the fall of the turkish economy just like in Afghanistan, malaysia and Syria.

[@unkowngamer4070]

No Islam didn't cause it , don't blame the religion. Its the dictators that exploit and mismanage it.

[@jonathangurkin5296]

The crisis cannot be stopped in turkey, his chance to raise interest rates to curb rising inflation has went and passed. Now only a cold cut from his dumb and I mean duuuuumb economic policies, and new leadership (and new confidence that would bring) is turkey's only way out of this

[@hakeemnaa]

currencies are all about trust. It is gone and can not come back If i am Turkish, I would never save my money in Lira. it inflated more than 15X since last 10years. imagine saving for a house and end up not be able to buy broken car.

[@xcjsmith5310]

Please also cover Malaysia Ringgit please, with change in government, the Ringgit Malaysia is still collapsing FAST

[@nazodreemur8284]

As a Malaysian I agree

[@haggle196]

Malaysian banks are rising interest rate. Currencies all over the world are deprecating to dollar but that's just natural since US raised interest rate.

[@xcjsmith5310]

@@haggle196 that is somewhat true, but it seems like we decline much much much faster than the rest of the world, it was 4.2 during Dec22 and now 4.7, an increase of 12%. That is not normal

[@user-op8fg3ny3j]

@@xcjsmith5310 did the government change recently again?

[@xcjsmith5310]

@@user-op8fg3ny3j We had an election last year Nov 2022, yes we changed but the economy is still very very very very very devastingly bad

[@0xCAFEF00D]

If anyone wants a great video recommendation Money & Macro has made a great video in may last year about the Turkish lira and why it's stinky. Joeri Schasfoort is a PHD of economics in Belgium and his videos are very clear and intuitive to the layman. I really like his videos and it's a deeper look at this topic.

[@Goch46]

😂😂😂😂 Nice advert He is remarkable though

[@skp8748]

England's economy is stinky

[@seadkolasinac7220]

@@skp8748 some angry bitter loser writing stuff like this

[@emildavidsen1404]

@@skp8748 The brexiteers do this as well you know - anytime someone dares to point out that they've shot themselves in the foot they go, without fail: wHaT aBOuT [insert whatever European country they think has it worse]

[@Omer1996E.C]

Finally, he realized that it's unislamic to (edit: excessively) lower interest rates by the central bank (actually it's unislamic for the government to control a central bank), because central banks are not individuals

[@user-op8fg3ny3j]

Any percentage of interest is haram. There's no difference in sin between taking a sip of alcohol and finishing the whole bottle

[@Omer1996E.C]

@@user-op8fg3ny3j yes, since there will be interest rates, then let it be an appropriate one. Islamically, a government shouldn't own a central bank to control people's money, but if they did that sin, then they have to try to print money with a goal of economic stability at least

[@_Anatolian_]

@@user-op8fg3ny3jfuck the haram, Turkey cannot manage by islamic rules sinci its a fucking secular republic. They’re certainly unlogical.

[@user-op8fg3ny3j]

@@Omer1996E.C exactly, every other Muslim governments knows this.

[@loneprimate]

It's garbage like this that makes me think Turkey's got not business being in NATO. Or the 21st century.

[@kara1599]

I truly doubt if Turkey is a proper democratic country. Why is someone allowed to be elected for the 3rd term?

[@Ionel714]

1:50 man TLDR really just woke up and chose violence didn't they

[@AnemosFPV]

Because I was right, that’s why. I wrote 7 years ago that Turkey will have massive inflation. This will do nothing as interest rates are bellow the rate of inflation. 15% on 55% inflation does nothing!

[@thehellyousay]

Authoritarians always tank their economies. The corruption can never be sustained.

[@tyman3331]

I’ve been living in Turkey as an expat for more than a year now. The prices went up 4x since I arrived. And they still elected him…

[@shubashuba9209]

I'm guessing when your economy is going through rapid inflation, it's easier to hide the dire state of your economy. A fiscal policy that properly manages inflation would make it more apparent if your economy is in decline. Maybe Erdogan kept interest rates low so he could brag that nominal gdp was rising while real gdp was actually stagnating or declining.

[@LegionIscariot]

Imagine putting on your bullet proof vest after getting shot 10 times... Or putting on your helmet after you have a motorcycle accident... Not gonna do much about the bleeding now 🤷‍♂

[@Misiok89]

25 try to 1 usd was normal in last month but in black market. Now on black market price are the same that are on official. Last time it was before 19 try to 1 usd.

[@marcanthony8873]

I can’t believe talking to the invisible man in the cloud didn’t work…again… 😅

[@Awesomewithaz]

Erdogan "I hAVe a MAndaTE fRom tHE pEoPLe!!!"

[@panathaninf]

Well, the old sell-off thinking was that Erdi was doing the opposite of what was required, now it is that the situation has turned so horrible that Erdi is desperate so the situation is irreversible

[@ggoddkkiller1342]

You missed one of the major factors on TL devaluation that the government keeps increasing minimum wage ridiculously. In 2022 minimum wage was 4253 TL / 227 dollars, in 2023 it was increased to 8506 TL / 455 dollars! So in a single day purchasing power for imports doubled and this puts insane pressure on TL value as export/tourism sector are the worst affected from it which bring foreign currency into Turkey. After recent devalution minimum wage is dropped to 336 dollars which is a lot healthier but it will be increased again in 1 July to 11402 TL which makes 451 dollars with current exchange rate. A significant part of export/tourism sector can not stay profitable with such high minimum wages which is the real danger for Turkish economy right now. Turkey isn't Venezuella, Argentina etc, unlike those countries 95% of our exports are manufactured goods which means Turkey is much more industrialized country and can survive as long as those exports can be sold with profit. So such minimum wage increase is actually extra harmful for Turkey, apart from inflation consequences..

[@Amitdas-gk2it]

Erdogan dream is to be the Khalifa of the islamic world 🤣🤣

[@ronnlina]

On the track of Mia Khalifa

[@thinktank8471]

India is now a superpower

[@mattilahde5220]

When Erdogan won, Turkey lost. Sometimes people choose to suffer.

[@Just4Kixs]

I hope the economy worsens in Turkey. It'll be great for tourists!

[@tifahefendijagaming9606]

@@Khanate1923 hahaha çok iyisin ya

[@jj-uo9ti]

​@@Khanate1923what about turkey prostitutes which start grabbing man instanbul is full of prostitutes

[@jj-uo9ti]

@tigran-khanabazyan yes brother actually one turkish girl just kidnapped me she is prostitute i was just asking location i dont know actually i am afraid because you know girls can also blame it on men

[@judeavision8807]

"Interest rate lobby" 😂😂😂😂 im using that from now lol

[@soundscape26]

These guys sure make a lot of videos on Turkey.

[@SelfProclaimedEmperor]

Well its one of the worst economies on earth

[@hughjass1044]

They go where the news is.

[@samigo7]

​@@SelfProclaimedEmperorno its not even close.

[@soberman1520]

​@@samigo7one of the worst economies not the worst

[@bzuidgeest]

​@@samigo7is one of the worst, without wars or anything. It is purely self inflicted.

[@bokhans]

Erdogan theory of economics is opposite to every other economist in the world, one side is wrong, thousands of economists or Erdogan. lets look how the Turkey economy is developing and you might have an answer! 🤦‍♂️

[@maxpowell23]

150% in two years? as an Argentinian this looks adorable. Wake me up when you have real hyperinflation, you sweet summer children.

[@minimaxmiaandme.4971]

Turkey was doing just fine before Erdogan, they get what they voted for. All those Turkish rural people want an Islamic country and those that want to be a European country are suffering. If they are suffering now, it is on them. A country should be run by a economic leader not a religious leader. Big mistake. 🇨🇦

[@09csr]

Wow, that currency sure innovates in how low you can go! We dig and dig and think we've reached bedrock, only for Erdogan to hand us a diamond-tipped shovel while saying "Keep going"!

[@Tyler-qr7rd]

They voted for him numerous times and now it is their own fault that their economy is collapsing . And because of the foreign policy of erdogan , Turkey has almost no allies who would support them . The only reason they are in nato is because of their strategical location . The EU should stopp giving them the EU candidate status completly. The behavior of their "dictactor" and the constant conflicts with different countries because of them is a sign, that they do not belong to europe.

[@Mustafa-wc1gb]

EU is worthless. British people proved it 😂

[@gdlghdghslghsdghksdghk]

@@Mustafa-wc1gb "worthless" while going through crises when leaving EU LMAO

[@Mustafa-wc1gb]

@@gdlghdghslghsdghksdghk yeah, crisis 😂. I live in the middle of Europe and have visited a couple of EU countries. Recently i visited London, as far as I saw, global economic crisis didn't even affect their people however in Europe inflation goes higher and higher

[@gdlghdghslghsdghksdghk]

@@Mustafa-wc1gb imagine trying to live in uk when housing prices go up and away LMAO oh eu could have maybe lended some help

[@Saturn-xr4zh]

Opposition candidate(Kılıçdaroğlu) was worse and less popular than Erdogan.And Kılıçdaroğlu made wrong choices like getting support from HDP and not letting İmamoğlu and Mansur Yavaş(much more popular) become candidates

[@ks19841984]

4:15 what you see in this graph, we call it “Shahap Formation” in the honor of Ex-Economy Minister Şahap Kavcıoğlu 😂

[@saleemy-s-e3397]

The finance minister is called Mehmed Shimshek. Ş = Sh in english

[@cazwalt9013]

Not everyone is a turk

[@zarinamassaget6353]

@@cazwalt9013 that is stupid

[@coolbuddydude1]

Turkey don't like interest rates yet love to borrow...

[@turkialsul7847]

Yes interest is unislamic but so is fiat currency. So if gonna do it you either do it right or don’t. Half-assing doesn’t work.

[@prembagui7104]

Hiking Interest Rate After a Certain level doesn't work Specially if it goes above the the 45% mark so, the Central Banks and the people who are responsible needs to be Cautious when the Interest rate and Inflation Rate is above 25%, because after that very few countries are able to stabilize their Currency without going to Civil war or essentially shutting the economy all together. Turkey's other Schemes are really out of the box but we still don't know how it will pan out in the Future for Turkey as there are going to be multiple shocks waiting to be seen specially what happens to the dollar stabilized accounts and how the people spend their money after the money is restored to their same value.

[@cl8804]

so he could have saved shurkey a few trillion by just... not refusing to raise rates from the start

[@fauzirahman3285]

Oh how shocking 🙄

[@beluga9596]

Good They deserve worse

[@zarinamassaget6353]

What's happened?! Turk man .... your mom)))))

[@sarkismasrian2151]

The natural result when a leader decides to spend all his resources on the defense industry and the military budget becomes tripled due to his aggression and hostilities towards all neighboring countries.

[@marengoczar5035]

He could of increased taxes or increase bank deposit rates.

[@09csr]

He could, but that isn't generally how elections are won these days.

[@ahmetmutlu348]

Reason is simple... printing money without putting anything in reserve...thats itv

[@sumitomoO0O]

much more accurate than any investment houses's assessment of turkey....Turkish lira is still over-valued by 35%. they still pressure capital controls, they still force banks not to sell USD, they still ask exporters to return the forex....much more devaluation is desperately needed

[@CengizTheBand]

The real problem of Turkiye, now and always have been, is the deficit of export import. Turkiye last year spent £100 billion dollar to buy gas and oil from abroad. That’s the main reason Turkish economy has always been struggling. That’s why Erdogan has been focusing on gas and oil in Black sea, mediterranean and other parts of Turkiye. So central bank interests rates goes up or down, it won’t matter much. never did. Erdogan just didn’t want to slow down economy so he kept them low. He is waiting until the gas and oil is available for the country and no need to buy anymore. Then things will change.

[@aswientj.tj.1446]

It 's time for Turkish to join BRICS + & de-dollarization...

[@debater452]

BRICS is an irrelevant joke. Also de dollarization isn't happening

[@hhjj621]

They can ALL join chalcolitic age&head for Maud Queen Land!

[@shavho]

He is bus driver like Maduro 😂

[@kbram7363]

they voted him back in office so they get what’s coming.

[@wcoenen]

5:40 "24 per lira" - this should have been "24 per dollar". 6:20 "large negative real inflation rate" - this should have been "large negative real interest rate".

[@pzl1711]

You must be fun to hangout with

[@jsthereforfun1648]

Islamic countries can't run country

[@unkowngamer4070]

It's not the religon's fault, it's the leaders that exploit and mismanage it.

[@jsthereforfun1648]

@@unkowngamer4070 many Islamic countries are like that

[@yadrani4265]

Sir like ur video u are master in finance economy I was economic student from 1967to1974 Thank

[@maxwellhiggs]

This is why when something is foolish or worthless it's said to be a Turkiye.

[@zarinamassaget6353]

wrote alternatively gifted

[@darthplagueis13]

"Why is the lira still collapsing?" *Gestures in the general direction of this years election outcomes*

[@shivendraupadhyay1565]

Erdogan, didn't do it earlier, because elections were one the horizon, and he didn't want to give his opponents a solid point to target him. So he refused to increase the interest rates, now that the elections are over, he would increase the interest rates, and do other essential stuff so that economy would be back on track.

[@unkowngamer4070]

"Back on track" after so many years huh?

[@EnriqueAguilarUrrutia]

i think the country will end up losing its currency

[@Valkyraw]

we will end up losing our country to refugees.

[@Valkyraw]

@tigran-khanabazyan almost 20%

[@Valkyraw]

@tigran-khanabazyan Syrian, Pakistani, Afghans, and Africans.

[@AP-dd3xp]

They deserve it. 😂

[@LCTesla]

Erdogan: HAH I U-turned and its still collapsing!! you see I was right!@!

[@thejedicounciloffical]

Well, the people chose Erdogan, so they have to face his tyranny again.

[@MooohGX]

If they won’t raise interest they should raise taxes to support the Lira otherwise everyone gets poorer…

[@irtwiaos]

I have 0 sympathy for Turkey. They choose this.

[@zacharie2334]

That 53% of citizens deserve to starve and can't being able to afford basic needs in life. I won't feel any sadness for those people. But the rest 47% is what makes me sad.

[@zarinamassaget6353]

you are probably the second after god that your sympathies are so .... to someone)))

[@zarinamassaget6353]

#f###ed up

[@ekremvkilic]

Just to be clear, the reason for cutting rates despite the high inflation was not because of some islamic reasons, it was to prop up the economy in expense for making poor poorer. In order to sell this to the voters, you need a good story, a story that exploits religious and nationalistic feelings. Turks are proud people for a good reason (a rich history). Unfortunately now, the most happen to be a bit ignorant and some to be a bit greedy

[@euroschmau]

Can't say I feel sorry for the Turkish people, they voted that dog back into office.

[@zarinamassaget6353]

Nobody don't needs your sorry🤡😬

[@JinKee]

Hyperdollarization

[@Omer1996E.C]

No, you don't understand economics then Any economy will suffer when interest rates rise, but that's just a short term pain, it's good in the long run. It is like a WITHDRAWAL PAINS FROM AN ADDICTION, as many economists say This is a great step towards economic reforms

[@RedstonerD]

You know it's a good argument when part of it is in all caps!

[@brrkbtl]

yes it was 8 per cent , now 15 per cent .What an amazing reform.

[@Kapito13]

Lol. It's still well below inflation so interest rates will remain negative.

[@Omer1996E.C]

@@Kapito13 it's unhealthy to explode interest rates. Whether you want to hike or cut interest rates, you should to do it gradually, and as you might have heard from the video, most economists expect the interest rates to increase further in the coming times

[@Kapito13]

@@Omer1996E.C Actually it's very dangerous to gradually increase interest rates because you risk to constantly be a step behind the market. Turkey has no time, as the crumbling lira shows.

[@SD-SD-SD]

Either way, the Turkish nation is in for another 5 years of self inflicted financial misery !! As of today: 1 USD = 27 TURK LIRA Good Luck Turkey :-)

[@mike4393]

Who cares? it doesn't matter. Exchange rates are already set to suffer in countries outside of continental Europe.

[@sergiodasilva6505]

I thought that interest rates was near 0. It never touched 6 percent. Yet other countries had lower interest rates than turkey but no where near the amount of inflation compared to turkey. Why is that?

[@thomastakesatollforthedark2231]

Turkij's economy suffered from various factors going terribly for it. Interest Rate is more a way to rectify inflation than to prevent it

[@ambrose1724]

The interest rate a country sets is not going to have universal effects across all countries. That would mean there is some magical, optimal amount of interest rate at any given time that works for everyone. And obviously there is not. They have different economies that need different amounts of intervention. If your economy isn't inflating, you do not need to raise interest rates to counter an inflation that doesn't exist.

[@Kapito13]

You have to take into account that interest rates are practically negative in Turkey for years now if we calculate inflation.

[@azzockmagnahail6013]

As I understand it that kind of economics is relative. So a fictional Country A may have an interest rate of 10%, and Country B an interest rate of 20%. However, to start off with they happen have the same inflation rate (due to other economic factors). In both cases if inflation starts to increase then both A and B should raise interest rates. In analogy to what you're describing, if Country A raises their interest rates to 12%, but B actually cuts theirs to 18% then you'd expect B to have far higher inflation than A despite the higher interest rate. tldr: I suspect it depends on the relative nature of those other countries versus Turkey, those other countries get away with lower inflation despite lower rates, and so even after they increased those rates when inflation started to rise the end result is still a rate lower than that seen in Turkey.

[@sergiodasilva6505]

Thanks to @azzockmagnahail6013 @Geref @thomastakesatollforthedark2231 @ambrose1724 for giving me those explanations it helped me understand the subject a bit more.

[@Osquar]

Ghost of Ankara. Shoots down Turkeys economy all by himself