Why Turkey’s Economy is (Still) in Crisis
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- Опубліковано 2 вер 2023
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Turkey's economy faces a prolonged crisis due to Erdogan's unconventional monetary policies. The lira depreciates, inflation soars, and efforts to raise interest rates fail... but can the lira ever be saved? We discuss if the crisis is beyond solving...
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1 - www.cfr.org/podcasts/israeli-...
2 - www.washingtonpost.com/busine...
3 - www.reuters.com/article/us-sa...
4 - edition.cnn.com/2019/10/11/po...
5 - www.france24.com/en/20191009-...
6 - foreignpolicy.com/2019/12/15/...
7 - www.nytimes.com/2023/07/27/op...
8 - www.axios.com/2023/08/22/saud...
9 - www.wsj.com/articles/saudi-ar...
10 - www.voanews.com/a/saudi-israe...
11 - www.wsj.com/articles/u-s-saud...
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Ignoring inflation for so long is nothing but cruelty and sadism. How are Turks supposed to improve their wages 75% in a year? Better to be in a downturn than work for nothing
Local prices dont rise as fast, so even though the ibflation is 75% (or more) the local prices only get raised by 30%
They DO rise as fast, even faster in some cases when they try to defend the lira. A bottlw of water is 6.50 TL now that euro is at 30. It was 0.50 TL when euro was at 3 a decade ago.
Most Turks I spoke to in West EU in several countries were simping hard for Erdogan, unaware of the damage done.
@@daveogfans413most Turks in Western Europe support Erdogan because they don't have to deal with his BS, and they don't plan on returning to Turkey anyways.
@@daveogfans413 We have the same problem here in the Netherlands. They really are clueless about how much of a wreckingball the new Sultan is.
So basically it's either saving Erdogan some embarrassment or saving the turkish economy... damn such a difficult decision! I see now why he's struggled with this one.
Bet he would sacrifice the entire country just to save his ass. And he will.
"Some of you may die, but thats a sacrifice Im willing to make"
@@kkkkawan9915- Erdogan probably
@@KGDHMFand those clowns still voted for him
half of Turkey freaking worships this dictator so it's just as much their fault. In my country every single Turkish guy loves Erdogan,
Some how they can even vote in Turkey, even if they live here. (they are not very good at assimilating)
As a young musician living in Turkey, it is very sad to watch this video at 4 in the morning. Today, we went out to dinner with my little sister because she got into university. When she saw the prices, she wanted to return home, so I insisted and bought it for her. On the way home, we wanted to buy meat from the market, but the employee at the butcher shop, who saw us looking at the prices for 15 minutes, offered us a "cheap" meat that was close to its expiration date, and we bought it and returned home, laughing at our dire situation. Even the protein bar she wanted to buy because she was hungry on the way to school could not buy it because it was 41 lira. I, on the other hand, was upset that I could not find a job even though I graduated from university and that I could not provide these things to my sister. We are even in a position to choose to live as a lower class person in any European country. Everything sold is of poor quality and very expensive.
Sorry you and your sister have to go through that, hopefully things get better for you two.
Sorry about what's happening to you, I hope things get better in the future.
I say get out of country you will get European visa much eaisly
@@aryankushwaha1964You're wrong
@@aryankushwaha1964
Why would you think Europeans will accept Turkish migRats
Right after the election Erdogan stops defending the Lira and it drops.... *Turkish electorate has suprised pikachu face!
because the Turkish electorate are morons, they bought into "the west are evil and we should uphold muslim values" nonsense and have become a country I barely want to visit now and this country previously even as a child was a country I always wanted to visit.
At least he is a good Muslim /s
@@daveogfans413such a good muslim 😇🥰 liar and thief ❤
@@ArdaSReal I never trust people who use religion to appeal to simple people. No matter what religion or what country. Turkey deserves better!
@@daveogfans413 exactly! I hate this theocratic shit they are such hypocrites and even Muslims or Christians or Jews on the right eat this populism up and downplay the authoritarianism and reduce their vote to lowest common denominator crap
Play stupid games, win stupid prizes.
play smart games, win smart prizes.
Explain the stupid game that only you can decipher i really want to know mr.economist
@@ibo148 it’s an idiom. You have clearly demonstrated your lack of intellectual prowess and your inability to comprehend
While i don't believe the opposition party could have fixed the economy quickly or smoothly but for people to vote for Erdoğan is to vote for their own impoverishment.
You make or sound like that's so uncommon but people vote against their own interests all the time.
@@user-uf4rx5ih3vJust look at most Republican voters in the U.S
Some investors might just not believe that Erdogan is able to make turkish economy stable and worth investing. So changing a president might help a bit
Im turkish this is what happend
1. The opposition thought that they had it in the bag and didn’t campaign as much. (Due to the earthquake and economy)
2. Erdogan burnt through all the reserves of the bank to fool people that the economy is fine
3. Erdogan called the opposition gay
I voted for for erdoğan and we are not in poor condition, inflation getting better but it will take up to 2028, central bank will increase the intrest, also I choose erdoğan for his political mind, we majorly clear pkk terrorist in these inflation rise after 2016, other opposition ones just pure idiots, there are so happly sell the country, so I don't regret
Other thing that I definetly not support the inflation but, this crisis was benefit for the industry, they did invesments in cheap intrest and it will show benefit in the long term
2:17 You've got the Lira and Dollar signs the wrong way around, unless you can get $20 for 1 Lira.
This isn’t the first video they made this mistake… probably done by the same editor 😅
That would be a nice world to live in
Damn, that's some impressive deflation!
that's the thought of what erdogan grinds to at night
ooh i see i think it should be 30$ for 1₺ for now😅
The poor elected Erdogan and they see him as a person sent by God.
As the old saying goes, "every country deserves the government they elect."
No they don’t they just see him has the best to lead
People do not see Erdoğan that way , they dont think he was sent by god . they just believe he is a strong man. ın turkey even the most religious people wouldnt believe that kind of shit
According to your logic. USA deserves Biden!!??
Turkey is one of the most liberal middle eastern countries, but it's still a Muslim country so these kinds of behaviours are unfortunately still the norm
You know nothing.
The good thing about living in turkey is. I have been unemployed for like 7 years and I have nothing. Literally nothing. Many of my friends have been working for at least 7 years and and they also have nothing. 🎉
I don't understand, have you tried to get even a simple job? What have you been busy with for the past 7 years to not get a job?
@@JayOz1 living with parents who have their careers started going back before erodgan
What is more unbelievable is the fact that with so much against him his opponents still aren't able to come to power. Absolute power at work.
International observers declared the election free and fair. Turkey's real economic crisis is the dollarisation of the economy which is exacerbated by high interest rates. Turkey needs to build trust in its currency to improve its value and for that the citizens of Turkey need to ditch the dollar.
well rigging the election is a great start to keep in power
more like fraude and corruption and jailing political enemys to win is dictator
It why the standard is Free and Fair elections, you need both. While free to vote, it definitely wasn't fair if you arrest the opposition and have a monopoly on the media.
Tbh, the opposition spent way too much time bickering and chose a mediocre lame duck candidate that has an exceptionally long history of election losses over a popular unifying candidate. This is 100% the oppositions fault.
At this point, I feel that Pakistan and Turkey are in a competition to see who can sink their economy faster.
Turkey is the only country other than China in g20 which hasn't seen a negative growth rate since the pandemic year, so 'economy' is not 'sinking'.
There was a more than expected 3.8% growth in second quarter, and is expected to grow by 4% this year despite earthquake and global slowdown. There was a record inflow of Foriegn investers to Turkish stock market a few weeks ago.
There is inflation and that is causing a decline in purchasing power of people, but manufacturing activity, exports etc are growing. There is a diversified economy in Turkey, tourism sector is also growing.
The reason why all the gloomy predictions this channel (and others) has been predicting hasn't come because of those reasons. And billions from gulf countries are expected to come by the end of this year.
Although Turkey has experienced the biggest earthquake in its history, its economy is growing much, much higher than expected. The GDP of Turkey, which was only 720 billion dollars in 2020 when the pandemic started, exceeded 1 trillion dollars in 2023. And that happened in just 3 years. Turkey has never gone bankrupt for 100 years since its establishment, and it doesn't look like it will go bankrupt anytime soon. I think Turkey will come out of this inflationary process even stronger.
Add Egypt to the list too
And then Zimbabwe comes in with the chair!
@@ij4674using GDP growth as some kind of benchmark of success shows you don’t know what you’re talking about.
Everyone in Turkey has been getting poorer. There is a housing crisis, amongst many other things.
Do you know any actual Turks living in Turkey? Have you even been there?
If you did, painting a picture of an economy doing well would make you insane.
This is THE dumbest economic crisis I've ever seen.
you can thank every and each dumb individual with cultish voting habits in turkey who made this possible
People asked for it
Egypt`s crisis is a strong contender
Let's not forget the brain drain this is causing. Young folk are leaving Turkey in droves to anywhere they can go while they still can. Many are coming to the UK at the moment, often to study, if they can afford it and then onto a graduate visa. Many also going to pretty much any EU country as well right now, particularly Germany. And despite the economies not being that strong, many have been moving to the non-EU Balkan countries (North Macedonia, Albania etc) because the barrier to entry is much lower and these countries are on a much better trajectory (very likely EU membership in the next 20 years, already have visa free travel to EU etc). From what i understand even former Soviet countries feel like a good bet for many Turks atm (Georgia and Kazakhstan for example).
The latest election result and inflation since then will only push people to get more desperate in the next couple of years and these smaller countries may be forced to limit the number of Turkish coming in
Im a Turkish student that just left for UK 2 weeks ago lol. Won't live in a country that likes to shoot themselves in the foot.
Yes you right about some of your thoughts but actually very very low percentage of people can afford going abroad for a new life or visa freedom. Young turks are trouble with Erdogan but most of them have no money even going for another city's bus ticket. There are lots of bachelors degree graduatees from universities but their departments and areas are majorly useless and not internationally eligible.
The Turkish economy is months away from following Argentina if they don’t take bold steps. The government has been spending too much for too long in unproductive areas of the economy (e.g. defending the Lira or issuing pensions for those that want to retire at age 42!!! - yes you read that right) and to fund those they need to keep printing and increasing taxes. Coupled with the uncontrollable spending of households because of FX devaluation and inflation, it is now difficult to change those norms. They have to take bolder steps. The earlier they put the economy into some level of recession the least painful it will be
😂😂 you're silly
@@skp8748that’s not a counter-argument or meaningful contribution.
@@skp8748Ok prove it
@@seadkolasinac7220 months away from Argentina yet its economy is growing 😂
@@skp8748it is growing so much that turkish gdp was 900 billion$ in 2013 and it is still around 900 billions in 2023
I;m not turkish but I currently live in Turkey, and I have to say that a very big part of Turks still love erdogan and think that the economy is fine and will get better when it will not. Sad to say it but they chose this fate by themselves.
They don't want to change their religious and far-right mentality, and even their opposite party from Erdogan's don't do enough work except blabbering nationalistic speeches and empty promises instead of actually working.
They don't actually believe the economy is fine, but they feel the need to say that in order to not to feel like idiots for defending Erdoğan for so long. Deep down, everyone's pretty aware that everything's went shit, but they either believe it is the foreign powers pushing agaisnt Erdoğan and Erdoğan ie actually fighting against them and that is the reason everything's going bad; or they think that the rest of the world is much worse and we're still better off, which is obviously not true.
Far right? 😂
i think it doesnt pass very much time from when you move to turkiye because you dont know anything about economical stuation before erdogan..and i think you may also think that other choices would be better than erdogan..no they are worser..we know them better than you..its not about religious and far-right mentality but its all about experiences and truths
@@sundancer06yep. Keep going like that
@@AtomicVoid95Yes, far right. Ultra-Nationalist authoritarian cult like entity
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2012: 1 USD = 1.80 Lira
2018: 1 USD = 4.00 Lira
2023: 1 USD = 28.56 Lira
At this point I am impressed with how they can run down the economy this fast!
The Lira has gone down by 1586% in the span of 11 years, that is insane!
Especially in recent 2-3 years.. idk why do the people still vote for this clown in charge?
Do they lack common sense of how economics works?
As a outsider I find this situation startling.
As someone who lives here, I find Turkey surprising. We are in a completely miserable situation...
@@Mrveistee Yes it's very sad to see such a resourceful country needlessly go through this meaningless crisis.
Hope that the situation changes over there.. First step is to higher the interest rates, or else nothing will change, and the Lira will keep on losing it's value.
Liar detected, he obviously omit to say turkish lira was worth 1 million 650 000 lira for 1$ at the beginning of the millenium
Maybe do not invite people that aren’t your ethnicity into your country and eat away all your money and build free houses at your expense
Amazingly explained, thank you guys!
Simple. Because foreign investors just don't trust The Watermelon Seller, and why would they?
I like Turkish ice cream
@@internet_userrWe Turkish citizens can't even access the quality ice cream anymore, it gets exported to other countries and all we are left is low quality but equally expensive leftovers.
Thanks a lot -- now I want some watermelon.
@@yigithan.kilinc is there still ice cream left tho?
@@rayh.9130 mostly west. Foreign direct indestment was about 8 percent of Turkey's GDP in early 2010s if I am not mistaken.
Look at three indicators of Türkiye economy
-External debt as percentage GDP-45%
Inflation -48%
-Interest rate-25%
- Currency depreciation against $ in the last 2 years-100%
This is what happens when you delay the inevitable. At least he (mostly) reversed the policy though - imagine if the rates stayed at 8.5% LOL
Turks are like that, they collectively play for short term gains and wins. They aren’t a culture who thinks long term
In the graph describing monetary relations at ~ 2,15 minutes mark, you inverted the participants: "$8:L1" as opposed to correct "$1:L8" and "20" later.
Bruh, they did that exact mistake before.
Yeah I got mad confused. 20x the dollar's value didn't look so bad!
I am so happy to see Turkey's economy struggling; let it drop more🎉🎉
It's economy is not struggling this is currency 😂
Lool how's your country
Here is a Erdogan's fellow Arab brother
Our fellow al-qaida member yousefahmadfaozuzuie got ahold of a samsung s3 from 1995 to comment this!! Props to him for getting water and electricty in his mud built village to comment !!! Celebrate this by spanking your favourite donkey on the ass tonight yousef🎉
Turkey’s economic collapse feels like walking to a wall half the distance at a time. You get closer, and closer, and closer but never quite get there
Don't worry, they'll get there
😂😂😂😂
Well, using mathematics you can say that you'll arrive there at infinity
Well the economic collapse has sort-of happened, you just need to ask the right person I suppose, the ones most affected. To them it sure will feel like a collapse.
Turkey is not collapsing. How do you even come to that conclusion looking at data that was shown in the video, is beyond me. The currency is stable since June. Inlation is gradually decreasing and financial policies are implemented to regain trust of the investors.
One of the biggest reasons inflation rose that much in July is because they increased VAT from 1%,8% and 18% to 1% 10% and 20% as well as moving many products that were in the 8% cateogry to the 20% category. To decrease the budgetary deficit, the tax rate on petroleum products was massively hiked as well which raised gasoline prices and that effected all products as well.
Also I heard that the President artificially lowered prices on certain items prior to the election
Then it should be easy to calculate real inflation (decrease in value of money) by deducting the tax from each inflation basket component. Actually it's disappointing nobody cared to do so
@@yes12337 i mean, it doesnt really matter, does it? Even a toddler can see their economy is in the sh*tter lol
@@johnl.7754 it was more like the prices were kept lower than they should be to artificially decrease inflation, both as a ways to push the idea that the economy is recovering and to make the wage increases for public sector workers and minimum wage increases lower than what they should be to again help with the budgetary problems. The budgetary problems were made much worse by the introduction of an early retirement scheme before the election where if you worked for 15 years you'd qualify for a retirement so people retired at the age of 40, this puts a lot of constraint on the budget
@@yes12337 real inflation is based on the devaluation of the Lira as well because Turkey is an import heavy country
Hey guys, Turkish guy here. Thank you a lot; it is a really nice summary. But you miss one point, though. You assume that economics and natural welfare affect the elections in Turkiye. However, most (majority?) of the people in Turkiye are as unorthodox as Erdogan's economic policy when it comes to politics. If we have 100 elections tomorrow with a 200% inflation rate (since we already have seen 120%), Erdogan would win 99 of them.
Still, It is fun to watch how rational people try to interpret things in Turkiye from a logical and reasonable perspective. Thank you for your effort 😊
What would happen if erdogan wanted to close EU membership negotiations effectively killing any future possibility of turkey joining the eu?
Would people still vote for him?
@@nostro1940 Of course. We (the Turkish public) had no expectations of joining the EU for over a decade. We were not even discussing it in daily conversations until Sweden's membership in NATO. The public's opinion (good and bad) towards Erdogan has so little with the EU membership.
Of course, these are my opinions, but I would not change my vote even if we would be accepted to the EU. To be honest, I even believe that Turkiye joining the EU is such a bad call for both sides. But it is a totally different discussion.
@@kabolat
Erdogan should focus on his country's economy instead of making rubbish statements against India and sending Syrian mercenaries to kashmir
@nostro1940 no one cares about joining EU in Turkey
@@kabolat its easier to go to Germany on false pretenses (study visa) and then beg for asylum. No need to join the EU
Result: over 50% visa rejection rate to turks
Why is Turkey's economy still in crisis? Could it be something to do with the Turkish people re-electing the same guy who mismanaged the economy to the point of collapse in the first place?
Yeap, just like Argentina and Spain, guess what they all share in common?!
Why is Wales alway in poverty. Because the Welsh think the UK benefits us
@@josekanashiro3610yeah. Average populist government that doesn't know how economics works
@@josekanashiro3610probably soon Poland to join the club 🥴
@@stefamart7 they all knows how it works, they ain't ignorant, they EVIL, they get saying that, they want equality for everyone and they make everyone equally poor, California is a great example of that.
two things are certain to happen every day, the sun will rise from the east and TDLR will release a video on Turkey's inflationary and economic crisis
great overview, could you make an overview about Turkish private business groups and how are they affected?
Turkey’s been going down the toilet and yet they still voted for the same dude!!! 🤦♂️
It should be clear that Turkey's economic problem is Erdogan: inflation is rising because the Lira is falling (and Turkey doesn't have a rubust local manufacturing infrastructure to handle isolation), and the Lira is falling because international markets don't trust Erdogan - who will put good money into the Turkish Lira with such a person at the helm? He obviously doesn't like sane economic policy.
Turkey can only get serious international money by pushing interest rates so high that it will be with the risk to bet on Erdogan, by obviously Erdogam wouldn't allow such high rates.
its hopeless and i though it could be saved but it gone worst
He is living in Ottoman dreams.
It’s hard to feel sorry for the Turkish people at this point when they had the opportunity to vote Erdogan out of office in the last election after knowingly how badly Erdogan have managed the economy for years and yet still decided to re-elect him back into the office. The conclusion is that the Turkish people like pain. Oh well. 🙄
Don't forget about the earthquake tax criticism
Even tho nearly half of Turkey didn't wote him, he won because the lack of Kılıçdaroğlu's courage
Do they realise _now_ that Erdogan played them and pumped the economy just to look better for the election?
1) His period saw the highest growth for the longest period in Turkish history, so people gave him 'another chance', inflation is not a new thing for Turkey. It was way worse from 1970s to 2003, and it stabilized during Erdo's earlier rule.
2) Opposition didn't properly conveyed their plan for economy. Turkey has a very bad history with IMF etc, oppo candidate's trip to western cities was utilised by Erdo and accused KK of going to 'London loan sharks'.
Except half of Turkey didn't vote for him. It's like me saying "I don't feel sorry for the Brits with this BREXIT disaster" and ignore all the regions which have overwelmingly voted remain. It's more likely that you carry a general dislike for Turks and only needed an excuse to express it 🙃
View from İzmir just made me happy =))
on 2:20, why does the graph show an increase in the value of the Lira?
The country had a devastating earthquake and managed the mess on it's own.
It's a major factor that stroke the country in a vulnerable time
i am from greece. i believe turkey will fix their situation, at the very least they have their own industry and can produce some stuff
Yes poor greece tho it basicly became thourism+ specaility food land
the situation looks fucked but thanks for your comment, all the best my friend
@@denizmergen418 better than being Turkey though. Turkey is probably one of the biggest failing countries at the moment
@@denizmergen418 Tourism services is actually Greece's 4th largest industry, after fuel processing, mechanical parts, and pharmaceuticals. Definitely not blaming you for thinking that or anything, since the view that Greece has nothing but tourism is so common among the Greeks ourselves.
Turkey right now has a decent home grown economy. It not the greatest but none of the Middle Eastern countries really have manufacturing. Only Iran and their technology and manufacturing isn't very good.
Summarized very good.
I'm sure Erdonomics will work next time, economic recovery is right around the corner, just keep voting AKP. 🤑🤑🤑
😂😂😂😂
@@simriths.s5976why you laughing half your country is impoverished 😂😂😂
@@skp8748 we are the 5th largest economy
@@skp8748 Turkish earthquake 🤣🤣🤣🤣🤣 made Turks poor
@@simriths.s5976 gdp per capita you're poorer than libya 😂😂😂😂
Turkey's going full Argentina mode with money printing hmnnn🤔
ReligoNationalism is a hell of a drug.
Brilliant News caster. So speed and agility.
I’ve been to turkey,it was very expensive both on staying and eating. I guess people have difficulty in paying their rents.
i was actually shocked when he won. didnt think anyone would be that stupid but...
you cant fix stupid
The stupidity of voters across the world is a shocking thing in and of itself.
People seemingly can't stop voting for populists who push neo-liberal policies if not even fascist ones, thus destroying the middle and lower class even further whilst shifting all the blame to an internal or external scapegoat. Classic divide and rule tactics.
There was an author called Aziz Nesin who said "60% of turkish people are stupid" and he was absolutely right
There's gotta be a hidren rope somewhere
Rigged
Thanks for adding subtitles for us non-English speakers.
Oh no wait...
01:25 this is when i completely broke down 😂😂😂😂😂
And there you have second reason for inflation not cutting expenses and adding to income of your government
0:40 *1 new Turkish lira = 1 million old Turkish lira*
Those inflation ratgs are no correct.
Turkey voted that guy back in let them live it
Goverment has almost increased public servant salaries as much as inflation. Minumun wage has incresead three fold in last two years. Take a note of that.
Bro wake up TL;DR News Global just uploaded
I hope this will continue
Their economy is growing 😂 dream on.
Why an ar*b cares about our economy so much. didn't like YOU ruined it?
@@skp8748how?
"Too Long Didn't Read" - News!! Funny name 😄
did you open this channel to monitor Turkiye? So funny
Dear tldr, there is simple problem in all of this case. Turkeys economy based on Textile and tourism sector heavily, and most of economy is based on loans from European banks, interesting that if turkey collapse you will see collapse of South Europe economy because biggest loan lenders for turkey is Spanish transnational banks bbva and santander, Spain collapse Portugal collapse and much southern America collapse cuz of bbva huge presence in those countries
turkey makes the TB2 drone. that is a good company to invest in
Important piece of information about why interest rate raises don't work in turkey is: the dollarisation of the economy. because Turkish interest rates are too high compared to European rates. turks are borrowing in dollars from European banks at low interest rates (significantly lower than Turkish rates). They then use the dollar to buy goods. this move away from the lira leads to depreciation of the lira and inflation (when calculated in lira).
Hence decreasing (not increasing) interest rates to European levels might actually solve the Turkish economy's apparent "basket case".
That is actually a very good understanding of the situation ...it is more complicated but this sum up actually is something I would agree with a hundred percent
You missed some very important details here. First, it makes no sense to raise the interest rates too fast because it can cause a 2008 style financial crisis in Turkey since a lot of credit has been pumped to the real estate market. Gaye Erkan should be particularly worried about this considering her experience with First Republic bank in the US. Second, the monetary policy committee has got two new and well-respected members replacing old inflationary ones. This replacement was approved by Erdogan. The 7.5% rate hike came right after this replacement, indicating that a new era of similarly steep rate hikes has begun. Investors understood this change and started pulling their bets against the Lira and the central band reserve: the 5 year CDS went down over 30 base points, and the lira and even the stock market are now more valuable than they were before the rate hike.
Islamic economic policy is terrible
Reasons why religion and politics are terrible bed-fellows. Politics should always be decisions based on what makes sense, leave spiritual matters to individuals in private. As soon as the two get mixed up those who are not of the 'state' religion get persecuted and decisions get based on the wishes of some fundamentalist rather than on what makes sense for a country.
Exactly 💯💯💯💯
Islamic policies in general tend to suck
@@hasansalihaktas 😆
You can't judge Islamic economic policy when there is no example of it today maybe except afghanistan, Islamic economy basically has low taxes low services and 0% intrests rates as usury is a crime punishable by law and the economy is linked to gold and silved standard using actual golden and silver coins as money.
And some taxes can only be paid for specific things like zakat can only be spent as government paid salary to those in poverty, other taxes though have freedom to be spent elsewhere.
Basically Islamic economy puts government watch over any corporation that may violate islamic law and judge it and dismantle it if it does thus it is not capitalism and gives very big importance to private ownership and focuses on private businesses thus is against communism and socialism.
when someone want to run 21st century world according to 6th fictional century book
ECB said the 25% of inflation is caused due to salaries the 40% due to companies profits and 35 due to cost of energy. So why raises the interests?
In contrary Turkey reduces interests so Lira is being devalued and turkish economy gains back the competitiveness loss due to inflation. Is the policy IMF suggested. Thus Turkey had deficit in trade balance for 2022.
Turkish government raised the salaries in order the citizens gain back the lost income due to inflation.
To cut a long story short ECB is doing the opposite of what has to do to overcome the inflation. Raises the interests so companies and citizens who owe loans will bankrupt and crisis will spread. Companies will close unemployment will rise red loans will be raised. Recession is out of the door.
Your channel is really good for following news about my country. Our journalist's news isn't about important things like you did
This is the crappiest news channel for following Turkish economy related news.
@@ij4674i agree. In general this channel is poor.
The reality is that interest rate raises take time, at least a few and more likely several months to take effect.
Further there are many exogenous effects like investors running to the dollar as a safe haven as global economies are falling into recession.
It is worrying that the Turkish economy is still in crisis.
Turkish LIra is 200% over valued...they have to devalue immediately
they had a chance to have a new president but they blew it
What should the new president do?
@@err5033 be better, try harder, stop failing.
The other one is infidel and anti muslim
@@err5033Erdoğan ne yapıyorsa tersini
@@err5033 do the oppisete that erdogan did, and stop mixing politics and religion.
Turkey need a young leader to lead them 😂😂😂😂😂
Still they spend millions on their trash 5th generation fighter jet
Lowering the interst isnt that bad always.
Undeed inflation is a serious problem but its exxagerated because of gas and oil prices and other factors such as pandemic aftermath.
Russia-ukraine war.
Chinese products getting expensive....
- the whole world is struggling.
I bet Erdoğan is staring at the Euro currency and wishing he had tried to join the EU. Türkiye will have to go through several years of economic pain to turn their currency around.
No. Because turkey would've been destroyed like Greece.
Turkeys economy is growing this is a currency problem.
You don't get to join EU by wishing. We would have never fulfilled the conditions anyway.
They have the dollar, we have Allah. - Tayyip Erdogan
This is what happens when you try to run a country by holy writ rather than modern economic theory.
But Allah won‘t buy you stuff or get you medicine 😘
@@ilovegaming114 Which is kinda my point 😘
@@guydreamr Ohh, i read it from a different pov
Sorry lol 😀😀😀
@@ilovegaming114 No worries, thanks for letting me know 👍
@@guydreamr no problems my dude!
I left a sub 🤌🏻
Positive nominal interest rates are inflationary
Don't worry, Turkish people aren't hungry, Erdogan feeds them with nationalism. He is so good about doing propaganda that their country is in danger from the west that people sees him as a protector so he re- elects every time
He’s not nationalist not at all lol,He use religion
I am 56 years old, I started working at the age of 10 and dealt with money and trade. The economy in Turkey has not changed much in the last 46 years that I can remember. We are used to living with inflation. This has become a way of life for us. We Love Inflation. Don't worry about us. In Turkey, no one goes hungry, everyone takes care of themselves.The Turkish economy experienced its brightest period in the last 50 years during the Erdogan period. The previous ones were a complete disaster. GNP per capita in Turkey increased from 3500 USD to 13500 USD in 2012-2013. Now it is around 10000usd. However, the main problem is the decrease in the purchasing power of the dollar.
Answer is no- it can’t be saved.
Don't conflate economy and currency
Love the moustache ❤
Im in a country having inflation of 100% sometimes and watching americans bitching about 6% inflation.
Skill issue. Have a better country.
The more valuable a currency is greater the felt impact of inflation will be on the individual, meanwhile if your nation's currency is worth less than dirt then it doesn't matter if it gets hit with incredibly high inflation rates as it wasn't worth anything to begin with.
@@S3Cs4uN8 thats where you're wrong. It would make sense for a western economy where you export more stuff than you import it. But we dont produce ANYTHING. So, buying everything that is foreign, which is everything is 2 times more difficult compared to last year. And this is what will happen this year.
Excellent Vlog. Thanks for your hard work.
I think we need to discuss the real issue here; the moustache.
I want to go to Marmaris on holiday
There really is an alternative way of financing than to use interest and having to keep increasing it. Economies are too short sighted and focused on short term fixes towards instant stability, whereas wisdom is to look for a more stable and long term fix and he is on the right path by trying to elimate the effects of interest on an economy.
Turks got much poorer because of his poliçesi.
@@colaturkalures Guess what so is the UK brits have gotten soo much poorer by increasing interest rates. In the long a country that is free from interest will flourish.
Every decision he has made was a short term fix that ultimately made things worse, he does not have the best interest of the Turkish population.
@@scottkingham5704 how is not increasing interest rate a short term fix? If anything it will make things much worse in the short run, please explain I don't understand
Hopefully it will get worse and worse
4:11 military policy?
monetary
The Turkish electorate had an opportunity to make changes. The majority keep on falling for the same sh$t. Seem this is in correlation to the continuous decline of education outcomes.
Still hasn’t collapsed as everyone said it would. Can someone explain why
I believe it will not collapse soon too. Income equality gets worse year by year. But somehow they manege to control total collapse.
Collapse happens gradually. It's not black and white.
I love it when Turkey suffers
Is this an analogy for the previous video discussing how labour basically want to do this for the uk if we vote out the tories next GE
Short answer Yes. Thank you for watching TLDR
🇦🇷 🤝🏼 🇹🇷
😂😂😂😂😂
Both are collapsing📉📉📉😂😂😂
Could you do a video about Japan? They seem to be doing the same thing Turkey is. Keeping rates low and refusing to raise them even with high inflation.
Japan has an issue of stubbornly low consumer spending. In recent years, it's seemed they may finally be fixing that, and so, raising rates is exactly the opposite of what they want. Similarly to this, Japan's currency has stubbornly fought inflation, which is the exact opposite of what an export-based nation like Japan could desire.
Basically, inflation for Japan isn't that bad, and fighting against it could be detrimental.
Japan is DEFLATIONARY NOT INFLATIONARY
Comparing Japan and Türkiye is a crime😂😂
Regime security is all autocrat's main priority so we all know what's gonna happen.
Erdogan will never let Simsek and Erkan do what needs to be done. He is a strong believer that interest rates are actually the reason for inflation, not solution.
For the upcoming elections he will start easing the monetary policy and printing more money which will further devaluate lira.
Nothing will happen in the municipal elections. No matter how much the West tries to brand Turkey as part of Europe, it is still wrong to predict Turkish voter behavior based on western mentality.
Their economy was in ruins long before the presidential election and on top of that two catastrophic earthquakes killed 50000 people. The state response was slow and inadequate, and the majority of buildings that collapsed was due to poor building standards and circumnavigation of the construction code because of contractors' connections with the ruling party.
People still voted for Erdogan, and not only that, he won a majority in the earthquake affected areas. He is seen as an Islamic crusader, that goes against the Christian West imposed world order and that's why he and his country gets punished in retaliation. On top of that there is a deep-rooted belief of kismet, especially among Erdogan's conservative electoral base. Kismet is fate, what Allah has on His books for you, for the society, for a nation. You cannot change fate, only pray to go through whatever your fate imposes on you. So who is to blame? The West and fate. Not Erdogan.
Whenever i see another video from TLDR shitting on Turkeys economy : Ah shit here we go again
New day, same bike….
😄
If Erdogan keeps dropping it to the bottom of the toilet, what do you expect?
@@old_grey_cat Bro , erdoğan is a constant we were born into and will live with some more time and yes our economy is bad but every 2 months i see a new video like ok we get it .
@@SwagonsSwaglordy'all voted him in again it's not like there aren't opportunities to stop this 🤷
@@jaydowg1914 i didnt , neither %48 of turkey did we are just living through it .But what i said dont has anything to do with this anyway .
0:09 Tell me about your thoughts on this frame please. Just the funny ones.
women selling vegetables.
Wowww… so quick to ignore that literally every major economy right now is experiencing crisis and inflation…
You should really start using "stupid" as the real meaning for the euphemism "unorthodox".
My rent has gone up 500% in just two years.