Erdogan: Lira Is Falling But “We Have Got Our People, Our Law, Our Allah”

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Erdogan: Lira Is Falling But "We Have Got Our People, Our Law, Our Allah"

President Recep Tayyip Erdogan called on Turks not to panic amid a further fall of the Turkish lira against the US dollar due to mounting tensions between Washington and Ankara.

“Various campaigns are underway against Turkey, pay no attention to them. While they have dollars, we have our people, law and Allah,” Erdogan said, according to the state-run media. He added that “attempts to exert economic pressure on Turkey were futile.”

Erdogan went further describing an economic pressure on his country, including by means of destabilizing its financial system, as futile. Additionally, the Turkish president claimed that Ankara will respond to those who had started an “economic war” against it.

“We will not lose the economic war,” Erdogan vowed.

On August 10, the dollar grew as much as 13.5% thus pushing the lira to a record low of 6.3005. Experts already described this as the Turkish currency’s worst weekly slide since the 2008 financial crisis.

Erdogan’s recent remarks are mimicking Russia’s Prime Minister Dmintry Medvedev, who often makes colourful statements on economic matters. For example on May 23, 2016, he responded to criticizm of the government’s failure to index pensions by saying: “There is no money. But be strong. All the best. Have a good day, and good health”. Then, he turned round and left. This prompted several sarcastic memes.

Erdogan’s recent remarks on the Turkish economic growth risks to trigger a similar situation.

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  • Sencer

    Shut up man , shut up.

    • World_Eye

      lol

  • eako.baran

    this news is old already. (1 usd = 6.12 at the moment).

    • FleshGoredon

      Highest was 6.64, now it’s down to 6.43

  • Len Zegelink

    haha the turks are so domb ,erdogan the hero .haha erdogan the loser.fuck erdogan and his vote,ers haha domb ass turks and his dictator.you mny ,is gone haha

  • Lupus
  • Dmitry Lunyov

    I do not understand why people pay so much attention to the exchange rate, for example,$ 1 = 0.7 Jordanian Dinar, at the same time$ 1 = 66 rubles, Jordan’s economy is stronger than Russia ? ))

    • Feudalism Victory

      Just means theres a lot more rubles in circulation per person than dinars per person in jordon.

      • Dmitry Lunyov

        Therefore, nothing prevents Turkey from printing more money now, albeit slightly accelerating inflation

    • Promitheas Apollonious

      you understand it if you consider that before was

      1 USD = 1.5395 TRY Fri, 31 Dec 2010

      1 USD = 1.8879 TRY Fri, 30 Dec 2011

      1 USD = 2.1382 TRY Tue, 31 Dec 2013

      1 USD = 3.5288 TRY Fri, 30 Dec 2016

      1 USD = 5.4966 TRY Thu, 09 Aug 2018

      For the every day person they understand economics only in what they could easily afford before, now they facing prices x5. They know every time they go shopping, for the family. They may not pay so much attention, but they know trying to, know or not.

    • Pave Way IV

      The exchange rate is important to Turkish citizens because its a reliable measure of Erdogan’s mismanagement of their economy. It’s a good indicator of how bad things are going to get, just like it was for Argentine citizens.

      The exchange rate is important (or at least interesting) to everyone outside of Turkey because we’re curious how far the madman in charge will take them to the brink of ruin and how long the Turks will tolerate it. Western powers (yeah, the US) are probably doing their part to crush the lira, but most of the damage was done by Erdogan, himself.

      Most of Erdogan’s oligarch cronies are in construction, and Erdogan has kept interest rates as low as possible to fuel that sector. That has resulted in overbuilding and empty new houses. The average Turk is faced with punishing high inflation and mortgage rates somewhere around 12 – 14% (and only for 10 years). They can’t afford, and are not buying the empty houses, and banks don’t want to lend them the money anyway.

      Whatever power Erdogan had to contain inflation with higher central bank rates disappeared in the last few years. His brother-in-law treasury/finance minister is jacking up central bank lending rates to 18% or so, but it’s too little, too late.

      The lira’s death spiral delights the blood-sucking IMF bankers to no end. They expect Turkey (like Argentina) to come begging on their knees for a bag of shekels to save their economy. And the IMF will only do that if Turkey imposes IMF-dictated austerity measures (= punishes the little people in Turkey for Erdogan’s mistakes). Sometimes, that goes south on the country’s leaders really quickly – no CIA ‘rebels’ or snipers needed.

      • ελευθεριος βενιζελος

        “Whatever power Erdogan had to contain inflation with higher central bank rates disappeared in the last few years. His brother-in-law treasury/finance minister is jacking up central bank lending rates to 18% or so, but it’s too little, too late.”

        Not true their excuse is that exactly that they are not jacking the rate up… Erdo believes il low rates…

        • Pave Way IV

          They only raised central bank rates from 8% to just under 18% a couple of months ago. Way too late in the overall scheme of things to control inflation, and doesn’t undo years of economic damage that is occurring now with more yet to come. Erdogan can wait it out (and fortify his palace) or go begging to the IMF.

          To make matters worse, many Turkish construction/construction material companies have substantial amounts of debt denominated in foreign currencies. If most of their revenue is in Turkish lira, then their foreign debt owed increased by 20% or so in the last few days. And nobody is going to loan them money, now.

          https://uploads.disquscdn.com/images/d0e5cce1d044bfd0de01aa35ff51fce688bd7f3289785fc18b89997a576064d0.png

          • PZIVJ

            The lending rate from 8% to 18% in short period of time. This sound pretty destructive to an economy. I assume the interest rate that banks pay to savers also goes way up, to suck up excess currency out of system. Or do all people become poorer by the week = economic panic and recession?

          • Pave Way IV

            Turkish people have a very low savings rate – something about trusting the banks. 18% interest wouldn’t nearly offset the devaluation of lira sitting in a bank account. And then there’s the premium you would demand to offset the risk of Erdogan rolling out capital controls or just seizing all your savings to prop up his failing scheme. So, paying 200% interest on savings? Well, I still wouldn’t bite.

            Those shrinking lira are never coming back to the banks as savings or investments – they’re on a slow, one-way trip to Turkish landfills. Bankruptcies will skyrocket, the banks still need new lira to stay in business, and the government has to print fresh ones for them. See the problem here? Erdogan will eventually add a few zeros to the existing lira or issue a magical New and Improved Lira! Neither one will help.

      • Sinbad2

        Exchange rates have nothing to do with economic management, they are simply another weapon in the US arsenal.
        The IMF, is actually the USA, those bloodsuckers have a New Jersey accent.

        • Pave Way IV

          I beg to differ. The US had nothing to do with Erdogan printing a shit-ton of increasingly debased lira and tripling Turkey’s money supply over the last seven years. Those lira made their way into the economy via the banks and low interest rates, or through the Turkish government’s social spending. This was done (in Gollum’s small mind) to stimulate the Turkish economy, and it kind of worked – for a while. He was delighted with the initial (very slow) lira devaluation because it made Turkey’s exports cheaper and more competitive.

          Never mind that those lira were not backed by gold, Turkey tripling its GDP, foreign investments or anything else of value during those seven years of a ballooning money supply . Those new lira were simply backed by Erdogan’s ego, and nothing else.

          Nobody wants to make loans in the constantly shrinking Turkish lira today because the high interest, even at 18%, doesn’t nearly make up for the plummeting value of the principal. The more lira Erdogan’s brother-in-law prints (which he has to keep doing now), the less anybody wants it, including the Turks. Nobody wants to put their lira in a Turkish bank even at 18% interest – they want to convert it to something else as soon as possible.

          I agree the money-grubbing U.S. deep state Khazar Mafia can bring a foreign economy to its knees – they have that kind of evil financial power. But Erdogan didn’t need a single bit of outside help taking his train off the rails. You can’t just print your way to economic might because – eventually – nobody wants your clown-bucks at any price.

          • Sinbad2

            All countries have printed large amounts of money since the US started it’s QE(money printing).
            The US debases its dollar, and if other nations don’t follow suit, the value of their currency rises, and they can’t compete in the global market.
            The US has been doing this since it defaulted on its pledge to pay in gold back in 1971.

            At another level, low US interest rates have flooded the global market with cheap US dollars. When the US raises interest rates, all the countries that borrowed find that the money goes back to the USA. The debtors are then faced with higher interest rates, and the US sells down their currency. The victim country, (and they are victims, because the US plans this, and does it every 10 years or so) finds itself unable to repay, and the IMF(US) forces them to sell their infrastructure for almost nothing to US companies.

            Now you might say, well they didn’t have to borrow, but if a country chooses not to borrow, the US removes the Government, and installs one that will borrow, as they did in Brazil.

          • Pave Way IV

            Oh, hell… do you realize that you just blurted out my government’s secret evil plans to take over the world?

            Paging CIA cleaning crew: Target is Sinbad2 on SouthFront – you know what to do.

          • Sinbad2

            It’s not just the rest of the world that gets screwed, they do you as well.
            Check out how much lower your wages are in gold since the 1960’s.
            http://pricedingold.com/us-wages/

            But you defend your oppressors, if that makes you feel good.

          • Pave Way IV

            They’re screwing me, too? [gasp…] Who would have thought! Thankfully, I have two powerful magic tools of Western Democracy to fight back: the law, and voting. Yeah, those should work. I’ll phone the police with this information on my way to the polls this afternoon to vote the crooks out of office. The steamroller of justice and honorable politicians will take over form there.

            Are you reading this, oligarchs? You bastards are going DOWN!

      • Ronald

        I think you just hit it , couldn’t bust up Syria, Turkey is plan C.

    • Rob

      If you moving away from Trump and Co. block then your currency value will go down but on the other side you will get self-reliance like China, Pakistan and Iran. So now the country leadership himself decide that what he wants independence and self reliance or be vassal and dependence on America. Learn from China and Pakistan.

    • ελευθεριος βενιζελος

      if you have your own currency and you import goods they are costing more… to follow western style of life you must follow their economic rules.. so…

    • Sinbad2

      You need fuel for your car? well it’s priced in US dollars.
      Want a cup of tea or coffee, well it’s priced in US dollars.
      Whenever you drink a cup of coffee, a US bank gets a small amount of money.
      Because the money changers are American banks, the US taxes the whole world, that’s why Americans pay so little tax, some poor person in Indonesia, or Sudan, pays the taxes America needs to bomb the world.

      The only thing that will peacefully stop these creatures, is gold.
      I must admit part of me likes the French solution, the guillotine, but gold would stop them without the bloodshed. Everybody who can afford it should buy some gold, if you can’t afford gold buy silver. If only a small portion of the people of the world bought gold, the US/UK financial tyranny would end.

  • occupybacon

    Bad news: Allah said He won’t sell his Dollars.

  • Hide Behind

    Economic warfare is but a carryover of old days blockades by invaders and their laying siege upon a weaker nation.
    It is not just US that is hurting Turkish coinage but the financials and banking interest of Europe, Japan, Australia, Britain and its teat sucking Australia and Canada as well.
    FOREX is where wealthy vultures can drive down any third world’s people’s into poverty.
    And then the wealthier vultures, WTO and IMF come in with high percent loans and steal a part of nations sovereign rule.
    IN truth most third world nations such as Jordan, Latin and South America and all of
    Africa have no real sovereign banking systems to back their currencies, all are pegged to dollar, and of course they who set
    value of dollar own their butts.
    Who wants to agree to trade their goods into Turkey, say copper, at todays Lira value, when tomorrow those Liras are not able to buy on open market 1/2 of what you sold copper for.
    Almost all international exchanges are controlled by British and US Houses, US Securities and British Securities, British is much larger, and they get a cut from every freaking exchange.
    That almost all loans to third world, yes Turkey is third world as is Egypt and every Muslim nation including Indonesia, come from Euro/ Centric concerns, such as US Federal Reserve system owners.
    Russia, if taken in totality, is no more than a third world nation, and it is finding this out on daily basis by US and Eurocentric tarrifs and devaluation of its currency.
    No nation or group of nations as of this date, China is floundering as well, has been able to divest itself away from the current worldwide banking systems.
    National politics is for the dumb as F’n rocks to be controlled by the few at top of any nations leadership.

    • Brother Ma

      So how do we change things? I see no benefit for average joes in america with this state of affairs anyway.

      • Sinbad2

        Read Marx, he explains it in great and boring detail.

        • Brother Ma

          👍