Why Turkey’s Economic Crisis is (Still) Getting Worse

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Despite substantial rate hikes, Turkey's economic crisis continues, raising concerns. This video explores the persistent challenges, complexities, and potential responses from Erdogan.
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1. www.france24.com/en/live-news...
2. www.ft.com/content/01d18b02-1...
3. enagrup.org/
4. www.bloomberg.com/news/articl...
5. www.ft.com/content/01d18b02-1...
6. www.bloomberg.com/news/articl...
7. www.ft.com/content/ba88f540-9...
8. www.ft.com/content/ba88f540-9...
0:00 Intro
1:40 Turkey’s Economic Crisis
4:16 It’s still getting worse
6:25 What happens next?
7:58 Sponsor

[@cokolberk]

Because we have a mighty Sultan who thinks he knows literally everything.

[@SzudemNMC]

May you soon have a good government.

[@swapnadeepkapuri1589]

May your people get better perceptions about rulers of your country!

[@cokolberk]

nah i lost my hope long time ago, if erdogan goes they will elect another one.@@SzudemNMC

[@SzudemNMC]

@@cokolberk we must believe in the democratic institutions.

[@danushairan]

Oh we also had one of those. Do you know what was the consequence of it? Islamic Republic :)

[@azahel542]

Turkey's economy is the gift that keeps on giving (except to its population ofc, from whom it just keeps taking)

[@FernandoPerez3h]

kinda

[@iamnotamushroom2880]

Kinda like the US economy

[@iamnotamushroom2880]

@@user-1rg9f2-g3l6d yuppers

[@bradlyfan]

They keep voting for a clown it’s their fault

[@bradlyfan]

⁠​⁠@@user-1rg9f2-g3l6d3.1% gdp growth for 4th quarter. Dollar is stronger then ever. Inflation is nowhere near turkey… U.S. economy is going strong

[@wrathford]

I 'm a Brit. I spent three months living in Antalya, and spoke to many locals while travelling around the country. Erdogan still has a lot of support with the over 40s, but he's unpopular with the younger people.

[@gameswithblues8655]

Internal politics are on a different level in Turkey, mate. They really know what kinds of propagandas they are doing against over 40s old people. Everyday, in my home my father and I are arguing about the problems that Turkey is having but he's still insisting that Erdogan is the right man for this country and I'm going hella crazy... After the election which is held in May 2023, I nearly lost my interest in politics because what can we do? I consider myself like a liberal democrat (libertarian in US) but can't influence anything, anyone. Stubbornness of those kinds of people, you know...

[@pixelartenjoyer]

@@gameswithblues8655 me too, i stopped giving any sh2s

[@GenjiShimada.]

@@gameswithblues8655 I had same with family over there when I visit. Like talking to wall just blank in one ear and out other. So long as that 4 finger waving monkey is there and breathing rest is unimportant. They just want Emperor of the Sith.

[@ragael1024]

the younger ones are going to the EU for work. to bring money back home to the elders, who support Erdogan. nice :))

[@dh1380]

My barber hates him 😂

[@MarktYertd]

"That is what happens when you choose a leader who focuses on religion instead of innovation, economy, and technology."

[@FernandoPerez3h]

yes

[@jessefisher1809]

Yeah, and the confidence in the lyra has already been shattered. Its a lot harder to rebuild that trust, than to prevent losing it in the first place.

[@dayforit1750]

Sounds like most of the middle east.

[@Yasininat]

Well, so much of a surprise! But Ruling party's decision to fight with interest rate has nothing to do with religion only but a facade or rather using religion as an excuse here. What's going on is changing socioeconomics, Ruling Party is creating it's own bourgeois for the last two decades. Already have an army of conglomerates mainly running construction and transportation business. Symbiosis with all major names of Ruling party, directly or indirectly connected to this conglomerates. Low interest rates provides dirt cheap loans to these conglomerates to invest and grow. Also control over currency which another side business to make profit. Calling it religious is not just pointless, actually works for Erdogan's agenda.

[@khalidmn9821]

You are just vomiting western dogmatic nonsense

[@nijadbahnam9859]

I am seeing Argentina scenario all over again . A country with every asset to succeed except a ruling government with less then two brains cells .

[@johnhughes2124]

Except this time its government lives in a perennially volatile region and is governed by a religious nutcase

[@dulguunjargal1199]

Elon Musks true spirit Runs Argentina for 2 Years Asked to leave Earth

[@danguee1]

Argentina seems to have an electorate who are a) gullible and b) all want something for nothing. While Turkey seems to have a), I see no sign of b) there..... Argentina's electorate have been self-harming since Peron

[@melo1174]

The difference is that Argentina has enormous natural resources that can easily give them hard currency, like exports of soy, wheat, corn, beef and most recently lithium, oil and gas. This makes it easier for a country to pay off debt or to increase foreign exchange reserves. which means they can turn the country around relatively easy through fiscal consolidation measures. turkey doesn’t have that luxury, they are a net importer of everything, in the case of hyper inflation or even default, the country will never be able to recover.

[@nijadbahnam9859]

@@melo1174 Anatolia have a lot of ressources. It take a staggering amount of incompetence and criminal behaviour to run down a State situated there like say Byzantine Buraucracy and Erdogan . The saving grace for Byzantine it took them 400 years to ruin their state Erdogan is doing it in one lifespan.

[@notusneo]

Shoutout to all turks that keep voting Erdogan in the office we couldnt do this without you all 😘😘

[@ayoCC]

real life economics lesson

[@meenyheany]

As AKP election catchphrase: It was a dream that became reality. Even enemies can't harm this much

[@RP-16]

@@ayoCCthey still received an F. Because they don’t learn.

[@chefnyc]

Turkey is becoming Saudi Arabia or Iran (minus the oil and gas).

[@AK-cr5pe]

Turkey speedrunning how fast can a country make its currency worthless through hyperinflation with their best zimbabwe cosplay. just waiting for the 1 billion lira notes so i can grab one off ebay.

[@malcolmy3413]

Turks shouldnt have elected Erdogan. I feel bad for those who voted for Kilicdaroglu

[@TheElegantGent]

Believe me, I haven't met a single Turkish person in any big city here in Turkey that voted for him. Erdogan is 'importing' millions of dirt poor immigrants, giving them a tiny bit of money and in return they vote for him. These immigrants don't understand how beautiful and progressive Turkey used to be, so they really don't care about us and treat Turkey like their home country they ran away from, including their backwards culture and religion. The only solution is for the Turkish people to rise up and say enough, but since the economy is so bad, they just keep on working and trying to make money...

[@anormalmonkey9702]

Kilicdaroglu was worse bro 😂😂 they both sucked ass

[@DoofyGilmore1299]

Personally I supported the Kılıçdaroğlu but he was bad as erdogan, same thing with US we had to choose which old man is going to destroy the country

[@malcolmy3413]

@@DoofyGilmore1299 US economy is booming again under Biden bro

[@theanglo-lithuanian1768]

Turks living outside of Turkey screwed over those in the mainland it seemed

[@ercnsmsk84]

Being born as a Turk is like starting a game with no experience on hardcore difficulty with 1 life only.

[@LevisH21]

at this point even North Korea or Cuba have a much better economy compared to Turkey. lol 😂

[@ercnsmsk84]

@@LevisH21 Cubans do live better than us, atleast they can enter US or foreign countries, our visas to EU always gets rejected, even my work visa to germany (despite being invited by a german company) still got rejected for not being believable enough. Other countries most of the time reject our visas, due to our ""great"" "leader" funnelling in refugees for sake of getting "free votes". Not to mention that EU pays him to do that.

[@LevisH21]

@@ercnsmsk84 well, Erdogan is a fundamentalist wannabe sultan with a fetish for the Ottoman Empire. he even used Turkish taxes to build himself a "presidential palace". of course we Europeans are pissed at what he does and says. also, so absurd that Turkey was considered to join EU at some point. Turkey should also not be part of NATO. Erdogan is like a dog that barks a lot but doesn't bite. I'm not German but it so happens that I live in Germany as a foreigner myself. Turks in Germany are a mixed bag. old generation is very pro-Erdogan but they still live here in Germany. German benefits and welfare are emuch better compared to Turkey. young generation of Turkish Germans, many of them are good but some also have the same mentality of "Turkey is the best and Islam will take over the world" type of nonsense in them. these guys seriously are asking for some sort of holy war. a jihad. Islam and Western civilization are not compatible with eachother. and even in Asia, Hindus and Buddhists don't tolerate Islam that much. anyways. I don't blame all people to be bad. I'm sorry for your situation. people that can come and contribute positively to any society are more than welcomed.

[@ChandranPrema123]

​@@ercnsmsk84Im Indian Btw. And how are You Turks doing like our Neighbour Pakistan is still spending 50% of National Budget on Defence is this the same for you like you guys are in War against Terrorism in Syria. Im just asking because your country is very beautiful

[@danushairan]

Lol welcome to the club pal. But yeh. Sad to see that turkey becoming like Iran.

[@icephoenix5466]

Normaly turkey tries to have the best of Both worlds. Ergdogan though wants to Create his own world, and that will cost them dearly

[@ChandranPrema123]

Problem is Geographically it cant create its own world

[@khlaps]

Create his own world is a bit strong. Just wants a more Islamic world and interest rates are considered unIslamic.

[@TheGetout04]

@@ChandranPrema123 Turkey has an incredible geography, their economic policies are just a mess

[@Kelpie-sb5bi]

@@ChandranPrema123They have fantastic geography, Islam is the problem.

[@freedomgoddess]

@@TheGetout04 as a greek, _yes._

[@magolbrr]

A big issue for Turkey is that Erdogan keeps being elected due to all the religious Islamic Turks living in Germany, which don't really care about how life's in Turkey (since they enjoy the German economy and welfare system), but still vote for Erdogan from abdroad due to his Islamic government and policies.

[@danguee1]

Brilliant, isn't it?! German Turks with a big TV, kids at university, dishwasher and smart car back home in Germany - but with 'an Islamic heart' voting for a medieval system in the 'homeland'

[@TheKing-uu7jn]

WHAT

[@GD-jc3wx]

I heard once: Muslims always vote for the Islamists and move to the secular country.

[@eren3390]

@@danguee1300k voters in Germany only. Stop crying.

[@tea-bd3gb]

not to mention the immigrants he gave citizenship to, around 1 million of them or so voted, but I doubt its that small of a number.

[@arrow1414]

I analogize it to this: He let the car coast down a steep hill without applying the brakes (raising interest rates) so the car coasted faster and faster. Now he has hit the interest rates brakes hard but now the mass of the car is rolling extremely fast, so fast the brakes are failing, smoking under the car's momentum. Now he has to throw out the economic equivalent of a boat anchor to stop.

[@justsefa1843]

That is not how economics work.

[@arrow1414]

@@justsefa1843 I am talking about this narrow part of it, although yes oversimplified for clarity, in this case why hiking interest rates isn't tamping down inflation. I know overall it is about expectations and different kinds of interactions, including how much Turkey is printing money.

[@justsefa1843]

@@arrow1414 I dont know what narrow part you are talking about, but the dollariztation of the economy has nothing to do with your analogy. The EU is also dollarized (this is a term, does not necessarly mean USD). By your logic the EU is heading towards total crash, which is simply not what is going on. The dollarization of the turkish economy came with great benefits. In the first 10 years, the turkish economy grew by over 300%. Having a dollarized economy is not automatically bad. However when FED increased rates and global conflicts appeared around Turkey, shit hit the fen. You cant "undollarize" an economy in mere months or 1-3 years. The current financial team was speaking about 3 years. GIve or take another year. So by what logic is Turkey crashing? Especially when you consider the fact that nominal GDP is increasing for the past 2 years and expected to continue increasing. 2023 GDP is a new all-time high for the turkish republic. Like there is no economic crises. There is a currency crises, the reasons of which are not how much money people are printing. People are not morons. They know what they are doing and among all the nations on earth, Turkey is one of, if not the only country that never went bankrupt. Turkey actually has very good economists and financial experts.

[@arrow1414]

@@justsefa1843 I didn't mention anything about dollarization in my post.

[@justsefa1843]

@@arrow1414 Yeah I did. It is the current issue of the currency crises and it doesnt fit your analogy. Or to explain it differently: How does the car go down in the first place, when the policy resulted in a 300% nominal GDP increase and how are there no breaks, when past attempts were taken?

[@user-iz2tq3dx5d]

The definition of insanity is try the same thing again and again and expect a different result. Albert Einstein

[@slax4884]

Einstein praised compounding interest as well sadly

[@quacksayssquawk2899]

Einstein didn't actually say that

[@Noidonteatbabiesstopasking]

‘I never said that’ -Albert Einstein

[@hakikat_ler]

çıkmışsın yenmiş çıkmışsın yenmiş, yine yenmiş tekrar yenmiş. e sonra gidip yine kk'ya oy verip bu sefer başka dediniz ya alemsiniz kronik muhalifler :)))))))))))))))))))))))))))))))))))))))))))))))))

[@Dagoth99]

Bro Vaas is say that in far cry 3 lol

[@Cunnysmythe]

"Erdoğan apparently considers interest rate hikes to be un-Islamic" They are, It's hard to argue otherwise. Whether that's what you want to base your economy on is another question.

[@Kalimdor199Menegroth]

Problem is that economy and Islam do not really match very well. Because you see, religious views have 0 influence in the grand economic game.

[@Kelpie-sb5bi]

@@momytikBrunei is a petrol state, that’s the only way for an islamic country to be succesfull.

[@kaanboztepe]

it is not only un-islamic but also un-catholic too

[@chaosXP3RT]

​@@kaanboztepeIt's un-athiest and un-pagan as well

[@Cunnysmythe]

@@kaanboztepe I'd thought it was unChristian in general. Only unCatholic?

[@fernbedek6302]

Got to love economists saying not to raise minimum wages during inflation. “The poor need to starve for the sake of the economy.”

[@etienne8110]

Well, economist are serving the rich, what else would you expect them to say?

[@Ikbeneengeit]

​@@etienne8110 why bother understanding economics when you can just make up a conspiracy theory, amiright?

[@fernbedek6302]

@@Ikbeneengeit It’s not really a conspiracy theory to go ‘hey, lots of big name economists work for/with banks, think tanks, and investment firms that are run by rich people, so are going to say things that make their bosses happy’. There’s definitely legitimate experimentation out there, but there’s a *lot* of spin and theorizing based on limited data.

[@etienne8110]

@@Ikbeneengeit woah, you are about to discover class struggle. Most economists stem from rich families, most work for rich bosses, most have stakes in orthodox economy... No conspiracy, just society.

[@cxzact9204]

If you raise minimum wages during high inflation, the production cost of each locally manufactured or assembled product goes up. The cost of unloading cargo in ports and distribution from port to elsewhere (both labor intensive activities) also goes up. This will fuel inflation for locally produced and imported goods, and people will starve quicker, with higher wages that are worth less. As a bonus it will also increase costs for exported goods and make them less competitive cus China will always be cheaper. Economics are often inconvenient.

[@MetallicaDoruk]

Erdoğan may say that "interest rates are un-islamic," but that doesn't mean that he actually believes it. His main (hidden) purpose was to shift the capital accumulation from ordinary turk to anyone else by preserving growth for big capital and small self-employed (bakkal, kahve, galerici, etc.) in an economic recession state while letting white (and some blue) collars wages' to melt down. He created a new unqualified merchant class who argued in favor of him while all the big capital stood silent and earned their profits. erdoğan is a huge shape shifter, dominating politics for 10-20 years by using any means, including religion. You should expect any populist idea (militarism, gaza, nationalism, refugees) from Erdoğan, but that doesn't mean that he or his surroundings believe it. Additionally, turks doesn't elect him because they are stupid. There is a huge backsliding in democratic institutions and increase in erdoğan's consolidation of power since constitutional separations of powers was (nearly) abolished by 2017 referandum and there still is a huge media blockage for anyone besides erdoğan's circle due to uncompetitive merge of a media giant in turkey, around 2013-14~. Thus, although elections are (or seams) democratic by means of voting, eligibility or government adi etc..., it is never fair.

[@nectanbo]

A very interesting and well thought out set of hypotheses

[@yahyaaabdelmoez553]

I strongly agree

[@allienmecaca]

All that matters for them is that they stay in the power. Everything else is a tool. If it suits their purpose, they will become conservatives, nationalists, liberals, minorities or even Kemalists.

[@VYCanisMajoris09]

Yeah, Turkish economics are dominated by trying to gather votes primarily before any ideological struggle

[@lazmanyacanavar5888]

On top of that: A huge chunk of the opposition is most likely controlled. 25% at minimum

[@lorenzo6868]

Yet they keep voting for a guy who doesn't understand economics.

[@khlaps]

They like Islam more than economy.

[@Kelpie-sb5bi]

The average Turk doesn’t think very far beyond ”Islam = good”.

[@gameswithblues8655]

Look up to the propagandas they are making for internal politics, bro. They really know what they are doing with that. Even in my close IRL circle, there are lots of people who support Erdogan even though what he has done wrong for this country for many years...

[@wexqlp3863]

It’s rigged

[@pixelartenjoyer]

i wonder why he is always elected, because elections are rigged!

[@scottn2046]

The missing issue is that Turkish industry is massively indebted, there's a fear that if interest rates go to high (45% seems high but if inflation is 60% then that's nothing) then lots of Turkish businesses will go under then that's the scariest economic crisis. And if too many many businesses go under that will hit the supply side of the equation pushing up inflation even more. Raising interest rates isn't the easy solution that some people say it is. There is no easy solution.

[@Kelpie-sb5bi]

I can’t see any way Turkey will be able to get out of this hole they’ve made for themselves. The only plausible trajectory is downwards.

[@MasterGhostf]

@@Garrus-nu2hh I'm personally all for strong central governments, workers' rights, and social benefits. But that can only be backed up by a strong economy. I see so many countries trying to get the wealth and prosperity that Europe and the US has. We went through painful industrializations where corporations ruled, and labor rights were non-existent. If countries wish to industries without those growing pains, they must understand growth will be slower. Turkey grew too fast. I agree with everything you say, do audits; find out which branches you can cut, pay off debts. Invest in local manufacturing, local media such as movies, arts, and etc. invest in education and invest in businesses that can take advantage of those students, such as IT, software development, manufacturing, and etc.

[@slax4884]

Very cogent points

[@blackoak4978]

Your need to remember that he is part of the corruption problem. He let companies buy exemptions to regulations that were necessary to keep people safe. His problem is that instead of spending his government's reserves on creating jobs through infrastructure projects he tried to buy up the Lira and burned his backup. Now if he wants to do that he has to borrow money. The guy saying that he needs to cut spending and pay off the debt has obviously not learned from The Great Depression or played colony builder games. The strategy you're talking about inherently leads to a massive loss of population as people left to fend for themselves starve or leave. Considering economies are built and thrive off of the movement of money through value added interactions, loosing people means loosing economic growth potential. He needs to empower his people to spend money. First on necessities, but also on luxuries. He does that by ensuring that people have jobs, by securing food and water availability, and by ensuring that housing is available and safe. Without those key factors, his economy is fkd

[@BOZ_11]

​@@Garrus-nu2hh turkey only spends at 30% of GDP, that's low. if they cut to 20% it'll be a 3rd world country. you have no idea wtf you're talking about

[@caseclosed9342]

I visited Turkey last year and I loved it. Great country, just lousy government.

[@injest1928]

Erdoğan was born with a talent. Not a unique talent, but a talent none the less. Erdoğan could kick things. Even as a toddler, he'd kick things, people, toys, anything and everything, he just loved kicking. Growing up in a poor neighbourhood of Istanbul, he found the streets littered with cans. He'd kick them down the street from dawn till dusk. As he grew older, he managed to sign for Camialtispor FC as a semi-professional footballer. He loved his time there kicking footballs, but he always had a kind of nostalgia for simpler times, kicking cans down the road. Eventually, his chance to kick cans came from an unlikely place. Politics. In politics, you could kick metaphorically. It was a different, more evolved kind of kicking. He'd kick his opponents. He'd kick the media. But most importantly, when it came to the economy, he'd once again kick the can down down the road to his hearts content.

[@rishikachaudhary512]

Wow😊😊

[@barrydaemi6287]

Bravo bravo! That was splendidly written!

[@rishikachaudhary512]

Seriously?? Are you a writer? This was so good.

[@injest1928]

🥰 Thank you guys, you flatter me! I don't do any professional writing, but I occasionally attend fun writing groups in which you have a short time to write about a subject. They are quite challenging and enjoyable.

[@BOZ_11]

poets don't balance books. they're usually starving

[@cazwalt9013]

OMG the sultan is recreating the ottoman economy 😍

[@solsunman383]

Reclaiming Türkiye's status as the sick man of Europe! Those pesky Brits will be so disappointed!

[@sstff6771]

😂😂

[@believeroflight9888]

yup pre ww1 ottoman economy

[@Leonardo_dada_vinchi123]

😂😂😂😂😂

[@shruikan5528]

One of the reasons for the current inflation is the 50% increase in the minimum wage, now we have to accept that we are impoverished and make normal increases, otherwise inflation will not decrease.

[@Kelpie-sb5bi]

Erdogan making Turkey a third world country lol. Guess the Islamists got what they wanted, now they can live like it’s the dark ages again.

[@Kwippy]

People get the government they deserve.

[@Kelpie-sb5bi]

@@Kwippy True

[@iambicpentakill]

@@Garrus-nu2hh I feel like you stopped after Econ 101

[@zhanzo]

Turkey is being transformed into oligarchy. In that regard, ecomic program is working perfectly, there is no crisis. Oligarchy requires zero middle class, and few rich that are closely contorlled by the oligarch. Middle class is officially dead, pracrically everyone is at official poverty limit. And %5 control %90 of the economic output. İ.e. ib order to be a textile exporter, the only way is to get permission from a single industrialist that is close ally of Erdogan. So, no crisis from Erdogan's perspective.

[@Kelpie-sb5bi]

This is obvious to anyone with half a braincell. Yet the Turks keep voting him into office, really says alot about them.

[@Hasssbi]

It's the ugly truth that happened in almost all countries

[@Kelpie-sb5bi]

@@Hasssbi Turkey elected him in free elections. What has happened in Turkey doesn’t happen in most other countries because the people don’t elect corrupt religious fanatics.

[@jgw9990]

​@Kelpie-sb5bi Oligarchy and economic concentration in elites is happening across all countries. Turkey obviously has the dumb interest rate policy, but the broader destruction of the middle class is happening globally. Increasingly there are two types of people - elites and servants.

[@Haz3dNightfall]

More Autocracy than Oligarchy actually, considering Erdogan is pushing for one man rule.

[@Antiocherr]

And today central bank governor Hafize Gaye Erkan quit his job

[@VYCanisMajoris09]

More like forced to resign

[@jeddgangman4502]

The “interest rate lobby” huh?

[@PanzerkampfwagenTV]

This might be coming from a wrong translation. In turkish the word interest is diffrent from the english one. Earning money from money and and having benefit or attention of someting is diffrent word. First one is "faiz" and second one is "ilgi" or "çıkar" So IMO this could be erdogan and people around him mixed the words and tought interest loby meaning people wanting to raise interst rates and not like group of people lobying for someting. Erdogan doesnt know english .

[@dreamofstone]

it's a result of a mistranslation of "interest lobby" into turkish lol

[@Kickboxer7267]

Just call them by the name already J…

[@LoneWolf-wp9dn]

The Lira has been a basket case going back many years... an interesting comparison can be made between the Lira and the Romanian Leu... in 2005 both currencies got redenominated with the Lira ending up at about 2 Lira to the dollar and the Leu at about 2.8 to the dollar... nowadays the Lira is at about 30 to the dollar and the Leu at about 4.2... So a much bigger country with much more industry couldnt keep their currency stable even for a little bit

[@Kelpie-sb5bi]

Guess the real difference is between the people who make up the respective countries.

[@LoneWolf-wp9dn]

@@Kelpie-sb5bi well the elites in neither country are what you could call principled or caring towards the masses... but what i think it is is that the turkish elites could afford to fuck over their populace because they are getting way more foreign currency from turism, remittances, major exports like cars, major foreign business ventures like construction

[@MegaRedsword1]

@@Kelpie-sb5bi isnt the leu pegged to the euro?

[@LoneWolf-wp9dn]

@@MegaRedsword1 no... the bulgarian leva is

[@MegaRedsword1]

@@LoneWolf-wp9dn thx for the info

[@tarihimanyak9787]

2:50 That's not true, said chart contains data taken from TÜİK (Turkish Statistics Institution) unfortunately an unreliable source of information in Turkey which Erdoğan also controls and purposefully made it so they publish lower interest rates. The real interest rates for this reason can't be pinpointed easily but the highest shown in the video(85%) really should be between 155% and 175%.

[@channheng5197]

Inflation in Canada dropped. Not everything is perfect here but at least our central bank knows how to manage his economy

[@theanglo-lithuanian1768]

Turns out relying on a 1400 year old book for economic advice is not a great idea

[@Turkish_Productions2007]

As if relying on any so-called "holy" book is a good idea.

[@MaximusAugustusOrthodox]

@@Turkish_Productions2007yeah the Bible is reliable as you can see

[@Turkish_Productions2007]

@@MaximusAugustusOrthodox lol it isn't.

[@realkekz]

​@@Turkish_Productions2007And yet the people of the cross have emerged victorious over the entire world.

[@whatthebeepvideos]

​@@Turkish_Productions2007 Islam is one of the younger religions. OP was clearly making an antitheist jab.

[@monarchist1838]

I’m currently working in Cyprus. Whenever I visit the north, more businesses in Northern Nicosia are accepting Euros as their first preference. Pound Sterling’s are also welcome, and one shop even accepted my US one dollar coins, which seldom circulate back in the states.

[@ThomsonFrench]

They don't like the Turkish Lira anymore?

[@CIHANOZEL-ij6vd]

you can use euro in Turkey also

[@uweinhamburg]

@@CIHANOZEL-ij6vd Why not - it's a win-win game. You have Euros which will gain faster wins by the inflation of the Lira than any real-world economic activities.. It's the same in any of these islamic countries - everybody tries to get rid of their Mickey Mouse money and change it into Euro or Dollar as fast as possible. The 'real' Euro area must be over a billion people right now!

[@monarchist1838]

@@ThomsonFrench Liras are still acceptable in every business I’ve visited, but Euros are definitely preferred in most. In a bar I tried using Lira coins but they were refused. Whenever I pay in Euros I usually ask for change in Lira as it helps them a little.

[@captainvanisher988]

Imagine if the Turks hadn't invaded and economically devastate Northern Cyprus. The economic development is incredibly stark.

[@mxr572]

why isn't Allah helping the Turkiye economy governed by his devoted servant, Erdogan? religion and economics don't mix.

[@sirarthur6463]

Ergdogan wants to create a Turkish Empire and rule as a Sultan like the Ottoman Empire

[@theanglo-lithuanian1768]

Oh he created the Ottoman Empire alright... Its the Ottoman Empire of the 1800s "The sick man of Europe"

[@snowcelica001]

That Turk bum is a legend in his own mind.......

[@sagartomar3461]

Well that's what majority of Muslims in India believe I don't know he can fulfill their wish of khalifa

[@CIHANOZEL-ij6vd]

he is 70 years old

[@firefly9700]

And yet, despite all these issues, Turkey still continues to vote for erdogan. I only feel bad for the 47% who didn't vote for him.

[@aykutbozkurt6203]

elections are rigged

[@Naturenerd1000]

45% interest rates are insane!!

[@ph8077]

Do some quick mortgage examples on the Right Move calculator

[@believeroflight9888]

and so is 85% inflation.

[@MehmetSurmeli]

unofficial (hidden) inflation is min 129% /year. So, real effective interest rate is fairly low.

[@oguzhan9424]

%45 inflation rate and %49 raise of minimum wage for the last half year… but that is not interresting to tell for TLDR and their audience!

[@anissyahromi5671]

It's amazing how is this guy is still allowed to lead the country lol

[@Blackadder75]

same reason that many americans still blindly follow cult leader trump

[@kemalerdemsahin410]

Thanks to immigrant turks and old people

[@oguzhan9424]

And he will lead as long as he is ready to work! Erdogan is the best what Turkiye has got after Atatürk!

[@oguzhan9424]

@@kemalerdemsahin410 Ah an idiot? You didnt dare to mention that the opposition in Turkiye is useless or the mouth of terrorist organizations?! Can you (if you will) explain for example what Ekrem Imamoglu (mayor of Istanbul, member of the opposition) has done the past 5 years?

[@Blackadder75]

@@oguzhan9424 you like hyperinflation?

[@Pblaze12]

The point of increasing interest rate is to prevent people from borrowing money excessively. However, by raising wage by 50%, the government of Turkey of course, will have to "borrow money - print" from the central bank to do that. The interest rate alone doesn't cause decrease in inflation, it's the stopping of printing money that causes the decrease. If the government keeps "borrowing money" from central bank, regardless of how high the interest rate is, the inflation will still continue anyway. And that's what the US currently does anyway.

[@maxwellhiggs]

Also good to see their rebrand going well.

[@edezigner]

This is the problem with inflation...your buying power is less so you want to get paid more. Paying you more means the cost of things you sell rises as well...increasing inflation. Doesn't matter how high you raise the interest rate...if you raise minimum wage by 50% inflation is going to grow.

[@oguzhan9424]

But Turkiye’s purchasing power is rising gradually for the past few years…

[@doodle9286]

no ?@@oguzhan9424

[@Lords1997]

Wow it’s almost as if authoritarians are always endemic to the survival and security of a free market…

[@marvinamann4969]

Problem with interest rate hikes in Turkey: Marginal interest rate hikes don't really have an affect anymore. This is because interest rates filter though into the real economy via the credit market. However the lira credit market is essentially non existent at this point. Noone is willing to keep savings in lira, so getting a loan in lira is rare. Most large loans in Turkey are Dollar/ Euro denominated. So interest rate hikes dont have any effect on the majority of the credit market. You would first need to increase the interest rate beyond what people expect the lira exchange loses will be within a year before people would be willing again to have savings in lira. Right now inflation is mostly driven by excess fiscal spending

[@mosesgl27]

The parallels with the FX situation in Nigeria are quite striking

[@hz.corona]

Let me explain the problem by using just three words, ""Islam and Islamists"

[@Mosern1977]

This is why you disconnect politicians from the central bank.

[@davidanalyst671]

FEDERAL RESERVE BANKS!!!! AFUERA!!!!

[@IOADESTOYER]

Watched the add part just because it was at the end. Thank you for giving viewers the option.

[@catalinchifo8172]

Once again the dispute between the orthodox economista and islamist head of state was won by the righteous☦️

[@ThatGuy-bz2in]

I honestly can't tell who you think is "righteous" in this scenario.

[@catalinchifo8172]

@@ThatGuy-bz2in Nah it's just a joke made beacuse of his use of the term "orthodox economist" more in an antithesis with the leader of turkey who is incluned more on the islamic way of handling politics and yeah orthodox christians were like enemies of the turks for some hundred years

[@RoyBryant-zj3ym]

Hello 👋 , how are you doing today dear I’m Roy Bryant form Tampa Florida and I’m looking for a friend hope you don’t mind us knowing more about each other if that’s ok with you ?

[@Goyim-phobic]

Turkey was far worst before Erdogan became Erdogan. You Islamophobs in the comment section have no arguments

[@tessjuel]

The problem with the idea of increasing interest rate to reduce inflation is that it only works up to a certain point. When the inflation is as high as 65% anything you do with the key interest rate is about as effective as pouring a glass of water onto a burning house.

[@danspencer4235]

If you spend more on imports than your income on exports, you are living on debt. Ask Sri Lanka how that works out.

[@oguzhan9424]

Turkiye has a very acceptable debt. Way lower than most countries with established economies.

[@danspencer4235]

@@oguzhan9424 What you are saying is "we are going to drown more slowly than most..."

[@oguzhan9424]

@@danspencer4235 Yes exactly. There is no need for panic about debt in a world that has more debt than you. And this channel is explicitly trying to create panic over and about Turkiye! Turkiye has a growing GDP and PPP eventho the inflation is high and his currency is losing value. Cant say the same about most of the countries worldwide. Can you imagine how the GDP and PPP would have grown if the inflation was low and the currency did not lose value? Well that time will come too!

[@orwayounis7840]

​@@oguzhan9424don't forget that that problems is that ot imports all of its energy this will change in a few years due to discovery of gas in turkey

[@heinkle1]

When you manage your economy around 7th century religious principles, what do expect?

[@skp8748]

So explain why their economy has grown every year under Erdoğan 😂 Explain how the economy is IN ANY way being managed according to islam... name just one

[@Exocrotic-yn2ck]

Turkey economy isnt based on Islamic principals. The Islamic principals of economy is alot different and the closet country to it is Russia and there economy is thriving now

[@gokalpcakar5158]

Erdoğan making his economic decisions based on religion. That's a fact. I'm living in Turkey. I'm experiencing this shit. Don't tell me he isn't.@@Exocrotic-yn2ck

[@krishm7812]

using any sort of religious principles to govern a country is just dumb

[@Bayard1503]

Isn't that exactly what GOP is trying to do in US?

[@Kalimdor199Menegroth]

@@Bayard1503 No. GOP is socially conservative and they apply religious principles in social policies, but not in economy.

[@Kalimdor199Menegroth]

@@momytik Brunei is fine because of oil and the fact that it is small, both territorially and population wise. Comparing Brunei with Turkey is like comparing an ant with an elephant.

[@notusneo]

​@@momytikBrunei only looks fine because its a petrol state with low population

[@krishm7812]

@@Bayard1503 sort of, if anyone disagrees with me please watch a video or read for yourself about project 2025 which is a plan for the near future made by the party that will be carried out (or attempted to) by the party following the election of Trump (though the plan doesn't hinge on him, it would work with any republican president)

[@waltermesser9737]

This guy is too busy making friends with Hamas and blaming Israel/jews for all problems in the world.

[@jormungandrtheworldserpent8382]

Erdogan doesn't seem to realise that years of terrible economic policy cant just be fixed because he said so the economy in many ways relies on confidence and when somebody is changing policy on a whim it doesn't tent to inspire confidence

[@anngo4140]

I remember watching a similar video back in early 2022

[@gtw4546]

What is shocking is that Turkey’s “low” interest rate after all the cuts was 8.5%! When already 19%(!) at the start of the troubles, I can see why raising them even further to combat inflation may have been perceived as too painful to consider.

[@iainawatson]

There are a lot of interesting ideas about unorthodox ways to reduce inflation without massively hiking rates, so I was intrigued about what Erdogan had planned. I didn't expect his plan to be "Just do the opposite lol"

[@moyo2850]

"interest rate hikes cause real economic pain." This statement is just crazy. Interest rate hike in the USA=strongest post covid recovery in the world and the S&P is at an all time high. Cutting interest rates in Turkey and every other nation that has tried it has caused the economy to shrink. Its hard to think of a worse statement anyone could make on the subject.

[@Rainbow_Oracle]

The US economy is in shambles. Business has slowed down to a crawl in most sectors. The job market which seemed to be getting better for a change during COVID is tightening back up again and offered wages are going down again even though cost of living hasn't budged. Housing is still unaffordable and the people are facing astronomical increases in property taxes and home insurance rates, so the many people who are already tight with the cost of living hikes are now screaming. Never mind what the S&P does, that has nothing to do with your average Joe. The economic pain has been astounding. The miracle is that it hasn't been worse. Still we are coming out of a huge housing bubble on top of a nonexistent market and frankly the potential crash is looking to be worse than the 2008 financial crisis. At this point I'm just waiting for the ball to drop.

[@moyo2850]

if you look at the actual economic data you will see that things like home prices have been inflating at a lower rate starting at the time when the fed raised rates. You crazy conservatives with your just give unlimited money to the bank policy are wrong and crazy.@@Rainbow_Oracle

[@mauriceruttimann7204]

Yayyyy!! Love the pronunciations!!! Yay! Sorry for giving you guys so much shit in the past but I feel it’s super important. Love the non-butchered Turkish names ❤❤

[@RoyBryant-zj3ym]

Hello 👋 , Good morning how are you doing today ?

[@barney4512]

Now im used to the prices doubling every year.

[@danushairan]

Well. Nominal interest is of no concern. What should be concern is the actual interest rate. Sure the nominal interest rate is 40% but what about the actual interest rate? You said inflation is around 60% this means the effective interest rate is negative. This is why their action did not work. also Increasing interest rate do not work if you keep adding to your money supply.

[@inbb510]

Erdogan: You have dollars, we have Allah. ☝️ Interest rates are haram because Islam (blah blah blah) Allah: Jokes on you 😜

[@whatthebeepvideos]

Allah: *continues to not exist*

[@inbb510]

@@whatthebeepvideos , I mean yh.

[@drunkenpumpkins7401]

Well actually, most Turks are using dollars or Euro's as their main saving currency because of Erdogans terrible policy makes saving in lira literal economic suicide.

[@mattirae4191]

Loss of trust in Lira (and in Turkish economy)-> people don’t wait for the ultimate collapse -> sell Liras and get Euros or USD.

[@pointy7771]

They just fired that new intrest raising lady.. 😂

[@rowinrowinson8455]

bro how does this channel not know the classical dichotomy in economics? having high inflation doesn't mean you're in an economic crisis. a 2% inflation rate and a 20% inflation rate are the same if they are not unexpected

[@skp8748]

Exactly. It's blatantly biased and the fact they've done a dozen videos CONSTANTLY misrepresenting it leads me to believe it's intentional. How can you constantly conflate currency issues which result from external currency speculators with economic crisis that's a result of monetary policy. It's just blatant biased reporting. Turkey has JUST had a record year for exports and its directly addressing the REAL issue which is energy self sufficiency with one of its multiple nuclear power plant projects coming online, it has multiple gas projects from pipelines, to storage and lng terminals coming online. All to address the real issue of their dependency on foreign energy paid in foreign currency all which liable to fluctuations and external pressures is costing 10s of billions a year but worse is directly effecting their currency which they have to exchange for foreign currency leaving them vulnerable to speculators profiting from that.

[@selcal1948]

​@@skp8748 you are so wrong its actually crazy. Also i hear a lot of erdo propaganda. Fossil fuel never makes a country rich. If it would, russia and iran would be extremly rich. Also, turkey may have record exports but they also have record imports.

[@skp8748]

@@selcal1948 Russia and Iran are rich.

[@selcal1948]

@@skp8748 lol ok. I mean, they are probably richer than turkey atleast but they are not really rich. Richness can be measured in, how much the national currency is worth and how much the middle-class can buy with it.

[@skp8748]

@@selcal1948 currency is not the same as economy lmao 😂

[@PeterSedesse]

The most important trait a politician should have is humility. This guy thought he was smarter than every economist in the world and did the exact opposite to what everyone was telling him to do. And that is the problem with dictators and semi-dictators... It is the reason I like Biden, because I am 100% sure that on every decision he is listening to the advice of the smartest people.

[@clarenceonyekwere5428]

Doing a similar story on Nigeria and maybe Ghana would be interesting. What country in the world is having a good time economically or feels that way?

[@JitzyJT]

nobody gives a f about wakanda nations......

[@Dagoth99]

@@JitzyJT I give actually, watch their offical action movies made by "wakaliwood" funny stuff lol

[@WifeWantsAWizard]

In your thumbnail, "never-ending" gets a hyphen.

[@infoonity3175]

It's interesting that the economy is still going though.

[@marcdc6809]

it switched for a good part to dollars and euros

[@jackvalior]

It is an interesting case study. Does it prove Erdogan correct? Not in his logic but in his conclusion that raising rate will not actually help the currency, at least not with Turkey culture. It might be the case that once the country lose confidence in the currency and the economic system of the country as a whole, lowering or raising interest would be meaningless. Would the opposite be true as well? If confidence in the economic of the country is high, it is meaningless if the interest rate is zero. It could explain American long term zero interest environment before. Confidence is harder to build though.

[@Blackadder75]

turkish culture has little to do with it, the issue is with the big investors which are either foreigners or rich turks who live and act like foreigners economically

[@patrickjanecke5894]

IIRC, the effect of raising rates takes about a year to 18 months before inflation can react. Maybe in a smaller economy, the inertia is less, but not by much.

[@michaelthomas5433]

Basically start swimming while the shore is still in sight not when you are in the middle of the Atlantic.

[@vamankirtany7789]

Turkish people have elected Don Quixote. 😂😂😂

[@huseyintunc7753]

Thats spot on 🎯

[@dubbingpros]

You should see the Egyptian economy under our military coup president :) we're literally getting f***ed

[@fatemad4012]

How is it?

[@dubbingpros]

Egypt is about to go bankrupt and the black market's price for USD is 120% more than the official rate (72 EGP for 1 USD - as opposed to 31 in the official bank rates) Prices in the market change "DAILY" most people don't want to exhange services in EGP, as it drops in value by the time you get paid. @@fatemad4012

[@nectanbo]

It's absolutely tragic

[@clarestucki5151]

The problem with cutting interest rates to fight price inflation is that they only do so indirectly, through reducing GDP. Because current price inflation is mainly a result of monetary inflation (raising the ratio of amount of money in circulation to GDP), raising interest rates can and does, often turn out to be counterproductive.

[@skp8748]

EXACTLY. It would destroy a growing economy and for what?? Satisfy currency speculators and subsidise upper middle class by destroy their production and condemning millions to unemployment 😂

[@MSNL123]

While leaving the minimum wage raise to the very end of the video may have made sense presentation wise, that is part of critical context to the news. Inflation inexplicably going up for months after rise in interest rates? Highly unusual. Inflation going up for weeks after a rise in interest rates and then keeping up after a HUGE minimum wage increase? Kinda mysterious but with a lot of intuitive hypotheses that can be tested.

[@ThatGuy-bz2in]

I mean, interest rate rises are supposed to be used to keep inflation under control as it rises. Spending years actively making the problem worse before trying to solve it makes the interest rate rises much less effective.

[@harryallen1175]

Its not really a problem, the Turkish people voted for this incredible mismanagement so I can only assume its what they wanted.

[@StalkerX426]

As a turkish guy, let me explain a bit about turkish politics: Erdoğan win the election with %52 Kılıçdaroğlu was only candidate can lose The CHP (Atatürk's party) is full of terrorists and enemies of Atatürk Almost all of the media is in the hands of Erdoğan The Constitution has been violated many times and continues to be violated Erdoğan does not shut down the DEM party (the party of the PKK, that is, the terrorists) and DEM still has authority in the parliament. Extras: 3 days after the Southeast Earthquake, only the teams could come and the Red Crescent (the country's official disaster organization) sold earthquake tents. The people helped the people in the earthquake with their own hands The country has about 10 million illegal refugees, some of whom have been granted citizenship by the government Many people were detained for their opposition to the government (example: Saying bad things about the government). Even a 14-year-old boy was taken out of school and detained. Because of saying "bad" thing about Sharia ( and yes it is against the constitution of the country to defend Sharia but this government does not care) Purchasing power is too low and inflation is too high And most of the people is uneducated

[@samuxan]

There are other ways to control the money supply and control inflation besides interest rates. I wonder way the media don't report on that. M3 in particular can be regulated with other policies

[@gamerforever4837]

Maybe replace president urin with someone who isn't pludin's puppets yes?

[@zUJ7EjVD]

A 45% interest rate means that if you have a mortgage, you have to pay off the full value of your house every 2 years. That's insane. EDIT: That's not exactly how it works. I was wrong.

[@JenniferA886]

Good point, however if I was Erdogan, I would just pack my bags now, and leave- while he still can 👍👍👍

[@scottn2046]

45% sounds a lot but when Inflation is 60% then it's actually NEGATIVE and a whole bunch of weird stuff is happening .. You're not paying off the "full value" of your house because that's going up 60% but the 'book' value of your loan is stuck at the original amount. The bank might even lose money on this arrangement.

[@ThatGuy-bz2in]

@@Garrus-nu2hh maybe, but if the government wasn't involved people probably wouldn't be able to buy houses at all in this scenario.

[@reddog5031]

Thats right, high inflation is bad for banks, pension funds and financial organisations. (I don't really like banks though and realise why their considered unIslamic.

[@Kelpie-sb5bi]

Couldn’t have happened to better people!

[@Dicka899]

The Azeri flag flies proudly over Hankendi, the capital of Karabakh. The Turkish flag waves on mount Ararat. And friday prayers are held in the mosque of Hagia Sophia. These things are forever, while economy will pass. They are already fixing it in fact.

[@Kelpie-sb5bi]

@@Dicka899 Cope harder, you are a nation of thieves and usurpers.

[@ThijquintNL]

Congrats on 600k

[@oguzhan9424]

600.000 brainwashed people who need to be feeded by charlatans!

[@ozimantv]

Not mayors. In Turkey Mayors are called Vali. They are government officials. The election is for Belediye Başkanı or roughly translated elected head of municipality.

[@sumuraikuithuhotu3819]

yes, yes. It's keep going worse alright for Turkey. I'm just too tired hearing the same downward spiral every month.

[@GetOutsideYourself]

Religion is a great tool for control, and Islam is the best since it purports to be the answer for everything.

[@alexchapman7287]

The religion of peace doing its job.

[@92WayToTheMoon]

Nice uneducated take, I love how npc's just keep quoting npc's and think they have the world figured out

[@d.b.2215]

​@@92WayToTheMoonYou religious Muslims are just salty that other people and cultures have finally seen through you and understood what you are.

[@richdobbs6595]

At those interest rates, who is borrowing Lira? I would assume that any borrowing for commercial purposes would be Euro denominated.

[@kaanyamaner]

I was fed up with the economic crisis, the collapse of the justice system and the destruction of the education system. The rulers of Turkey are making fun of the people. I moved to Europe and got rid of all these problems.

[@heisenberg_9000]

As soon kaan brother this country gone collapse.

[@prateekbhurkay9376]

Hello everyone!

[@zarakkhan9625]

To expect Turkey's economy to rebound is stretching things a bit. I believe Turkey will continue to take it's orthodox path towards monetary stability. Other than Simsek and Erkan, other members of the orthodox team are also part of the government playing an active role in policymaking. Although the team also has to make compromises in order to accommodate Erdogan's demands such as hiking minimum wage. The results are already emerging. Despite inflation high, prices of cars and houses are already stabilising. This doesn't mean that there is light at the end of the tunnel, Turkey still has a long road. Other than that targeted credit towards exporters has also helped in increasing exports and decreasing current account deficit. In my opinion the biggest risk for Erdogan is local elections. If he loses major cities, that will severely undermine the credibility of Mehmet Simsek. To Erdogan's relief though, the opposition is quite fragmented and demotivated possibly allowing Erdogan to retake those cities. A win for Erdogan will increase the prestige of Simsek's team allowing him to not only maintain the current policy but also to possibly enact additional structural reforms therefore solidifying growth and stability.

[@Kelpie-sb5bi]

If Erdogan gets voted into power again he will just continue destroying the country, there is no way Turkey will ever recover with him as it’s leader.

[@sktt1488]

Gibberish Completely unrelated things

[@fateenshareef8716]

This kids is why central banks should be out of political control.

[@j158]

there is a lag for interest rates to effect inflation via the phillips curve

[@gelzamangitzaman1482]

Hele ya bak suna nas var nas sana ne oluyor euehehe

[@sercantor1]

The inflation jumped because of the minimum wage hikes, and the government officials already said that the inflation will not be slowed down until 2025. I am glad that at least we have some people in the central bank that have some sense in their brain

[@ThatGuy-bz2in]

arguing for keeping wages low is basically saying that we should starve poor people to make sure the rich can eat. Wages certainly have an effect on inflation, but there are many, many factors. Keeping wages low while inflation rages out of control is just going to destroy the poor and middle class in order to get marginal benefits (in in this case things getting marginally less bad) for the economy. It is horrifying policy.

[@gbadspcps2]

I think what they need to do is just keep a consistent policy instead of such drastic unpredictable shifts.Currently it is impossible to predict what rates will be like which makes investment and lending difficult.

[@melihyllar9771]

Generally, most people are still economically content. Wages have increased significantly overall. Earning 100k was merely a dream three years ago, but now many individuals attain this income and perceive themselves as affluent, despite the declining purchasing power. Additionally, the prices of goods have risen, affecting more than 60% of homeowners in Turkey; however, they too express satisfaction. This scenario aligns with the outcome of the Turkish lira devaluation. Winning the critical election was pivotal in this regard.

[@umurkaragoz]

This country should be a lesson to every other out there: if you have a medieval mindset, you will get medieval results.

[@denisdulici]

I've lived in Turkey for 23 years and moved to the UK last year, and I can confidently say that this video is either biased or the creator lacks information. Since September 2023, the Central Bank of Turkey clearly stated that inflation will start decreasing in June 2024, so no one expects inflation to go down right now. Same for the Turkish Lira.

[@shafsteryellow]

Exactly. It's blatantly biased and the fact they've done a dozen videos CONSTANTLY misrepresenting it leads me to believe it's intentional. How can you constantly conflate currency issues which result from external currency speculators with economic crisis that's a result of monetary policy. It's just blatant biased reporting. Turkey has JUST had a record year for exports and its directly addressing the REAL issue which is energy self sufficiency with one of its multiple nuclear power plant projects coming online, it has multiple gas projects from pipelines, to storage and lng terminals coming online. All to address the real issue of their dependency on foreign energy paid in foreign currency all which liable to fluctuations and external pressures is costing 10s of billions a year but worse is directly effecting their currency which they have to exchange for foreign currency leaving them vulnerable to speculators profiting from that.

[@KurtJohn3]

Increasing interest rates does not stop inflation. Inflation is caused by government overspending. Raising interest rates reduces government spending in the economy, which reduces inflation. Inflation will stay with a country indefinitely until government spending decreases (not counting interest).

[@DeanFWilson]

This is exactly why Erodgan needs to be voted out. He cares more about retaining power than actually helping his country. If he had listened to economists from the get-go and raised rates and stuck with it, they likely wouldn't be in this situation. Likewise for now, they simply have to ride out the storm. If he keeps undoing the work of those he appoints, the situation will only get worse. People need to realise that as painful as high interest rates are, the alternative of letting inflation get out of control is much, much worse.

[@User_14043]

You are absolutely right 💯

[@jovan-noble-guy749]

0:46 What type of Orthodox were his appointed ministers? Serbian, Greek, Macedonian, Albanian, Bulgarian or Romanian Orthodox? Man, that 's a historical moment. Last time there were so many Orthodox leaders was way back in the Bysantine times. 😯

[@Frammdo]

Orthodox simply means conservative or traditional.

[@Dicka899]

none of them will likely ever be appointed to any office in Turkey, except possibly Greek orthodox if some miracle happens

[@CozyJoney]

Interest, in Islam, is called ‘riba’ and is prohibited as a means to discourage inequity of contract stakeholders (such a large bank collecting interest off loans to impoverished individuals). Islamic Finance is a growing study and industry, not just in the middle east, but it’s largest enclave outside of Bahrain is London! Would love to see you all make a video about Islamic Finance.

[@toxichuman208]

Islamic finance = bullshit

[@VYCanisMajoris09]

Interes in modern means, especially if you are talking about a country; is not the same though. Interest is banned in Islam because rich people used to exploit poorer people with loaning them money and getting back much larger amounts. Running an economy with %0 interest is literally impossible.

[@yorutamashi]

the interest rate raise is not a cure-all... here in poland we've had them increased a lot since the pandemic and inflation hasn't gone down a lot... and we are still paying 100% more on our credits than we did when we got them...

[@ThatGuy-bz2in]

It certainly isn't a cure all. But a quick google search tells me inflation in Poland fell from 17% to 6% in 2023. That is pretty good.

[@MacTac141]

@@ThatGuy-bz2inHe’s Argentinian, good monetary lessons aren’t exactly something they grow up with down there. Guess he left for Poland but took his poor understanding of economics with him lmao

[@AZXY0]

That is beacause too much money is going to corruption.