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
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.
@@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.
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.
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)
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.
@@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
@@daveogfans413 Who cares even lol, if he was a good Muslim then he should have fixed the economy long ago, he's hurting his people, and that is very unhalal
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.
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.
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
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
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
@@Bolognabeef hey ı am turkish ,born and raised here. people are dumb enough to vote for a politican just because they look like a good muslim. they believe that Erdogan is a very good muslim , so he wont make anything against the people. But believing a politician has power given by God is not a thing in Turkey. Not all muslim countries have the same culture. That's your prejiduce, ı m sorry.
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.
@@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.
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.
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.
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
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
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.
Yeah damn traitord and deserters. If things ever go back to normal, those who abandoned everyone else in these dark times should never dare to come back here. Fucking spineless cowards.
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. 🎉
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?
@@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.
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%
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.
@@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.
@@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.
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🎉
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. 🙄
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 🙃
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.
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
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 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
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.
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.
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
@@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
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.
@@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.
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.
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.
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.
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.
Finance and Business books have been so helpful. I’m 55 and my wife 50 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. No longer putting blames on FED for our misfortunes. Saving and investing lifestyle in the stock market made it possible for us this early, even till now we earn weekly.
You have done great for yourselves. I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
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.
Yes, Erdo can save it, after a destruction is inflicted
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The only thing keeping Turkey's economy from collapsing is Simsek's name. I don't know how did Erdogan conviced Simsek to accept the job :) But you can only go so far with just a name. We will see what will happen. It's fun Turkey's economy :)
It is so sad. When a bright young Turkish person sees what's happening, they have to make a choice to wheter stay in Turkey and try to save it or brain-drain. But seeing that the problems of Turkey are very deeply rooted and seeing how incredibly hard it is to fix these problems they just leave. Looks like a lost cause. 😔
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.
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.
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
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
@@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 .
Keep up the great work guys! I love that you guys cover news that most networks don’t, or won’t, cover and I can speak for us all in saying we appreciate it.
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.
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.
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.
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.
@@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.
@@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
Bohooo armenia scared 😱 very sad very sad indeed 😥 i hope they sleep well... poor armenians... i hope turki dont bomb cappytal!!!! Barber turki dont kil armennyyy ! Get f'ked kiddo nobody cares about your armenia, belirve me the people who recognize that genocide can not even point armenia on the map 😂, get off mainstream media.
Idk what people are smoking, but the expectation for Turkey is absolutely laughable and ridiculous. There is no magic button you can press to fix the economy. Mehmet Simsek had announced just a couple of weeks ago that fixing this problem is gonna take a few years. 3 years was mentioned. Add or take another year. One of the core reasons is financial trust, which can not be "recreated" within months. Investors are sensitive with their money, so they want financial security, for which financial policies have to be implemented and left untouched, so people have an incentive to invest. I also dont get this nonsense with the interest rates. You cant just indefinetly increase it and expect no downsides. If you want to cripple your economy: Yes, go ahead and put it double the inflation. However if you have 2 brain cells, you will consider your economic sectors, make a gradual increase and with balance in mind. Appearently everyone is an expert. Everyone knows the solution, just not the economic ministers of Turkey. They actually work with first hand data, but hey, just let you tell otherwise by the random dude in the youtube comment section. Surely that person has more knowledge than people dedicating decades to their profession.
This is a fair point, but Turkey's inflation situation is, while not quite hyperinflation, still far too high to allow a cap on interest rates being imposed by a man who's ultimately in it as a popularity contest, and not in duty to the economy. Remember, these same men have had a cap of 25-30% imposed by Erdogan.
@@GrammarNaziAUS "being imposed by a man who's ultimately in it as a popularity contest" It is imposed by Mehmet Simsek and he is an established and trusted economist. I am not sure where you get the idea, that this is an Erdogan policy at this point. "Remember, these same men have had a cap of 25-30% imposed by Erdogan." Because you cant get an economy running with crippling interest rates. You have to balance interest rate and economic output out. They dont pull these numbers out of their asses. They have actual data at hand they are considering.
@@justsefa1843 No, Erdogan has, quite literally, artificially capped the interest rates they can impose. There's no evidence to suggest they wouldn't raise it higher without that cap, and your implication that they wouldn't means that you, yourself, believe you know better. This is a falsity, and a hypocrisy. All we know for a fact is that they have raised it to 25%, and very quickly, and that they have very little wriggleroom left, and that they have started trying to defend their currency again, which is what the central bank had to do before when they had limits imposed on what they could do with their interest rates. This isn't to say that without Erdogan's artificial handicapping of interest rates, that they would continue to rise, but that your statement that they won't/shouldn't keep raising them is not only based on misinformation, but also implies that you think you know better, when you know as little as the rest of us. You're a sanctimonious little shit, and I don't care for it.
inflation doesn’t mean anything for Turkey 😂 everything is relative.. they just adjust the prices and life goes on.. but as a US citizen I’m worried about how much debt the US has and How European people are getting old and lazier… there are a few counties in Europe that can compete with Turkey in the next decade, Poland is one of them because of their young population. Your strong money will not save you or your children when everyone is old and retired… Japan is completely F’d when it comes to debt and how old their people are… but their money is so strong compare to Turkish lira… like I said, everything is relative.
Turkey spends a lot of money on Azerbaijan and Cyprus . With conflicts like these , turkey is facing a bottomless pit . They get to be patriotic but they get to also loose money and comfort
You are Iranian, right? Turkish people have no problem with supporting Azerbaijan and North Cyprus. We have better tourism, industry, weapon industry, international trade than Iran. We have(and will have) many natural gas pipelines that help our economy. But on the other hand, Iran faces with many threat. Israel/Gulf Arabs alliance, Azerbaijan/Turkey alliance, western(mostly American) embargoes, shia enemy Taliban, rebelling Pashtuns in the east, secular rebel youth etc... Your politicans sell your country to the China and you are talking about Turkish economic problems. With global isolatation, very problematic economy, nationalistic and anti regime protests, waiting enemys from all sides... Iran have nothing to say about Turks. We can see your much worser situation. And we will never stop our plans like Iran will never stop theirs.
@@fatihersayn7877 as you can see from my name , i am not from Iran but Emirates. But don’t worry soon you will join iran in their situation . I was in north cyprus in 2014 , when dollar to lira was 1dollar=2.86 by the time i graduated it in 2021 it was 1 dollar= 7 tl . At 2014 Iranian GDP according to google was quite similar to yours with a downward trend of currency crisis apparent at 2018 your crisis was 2019 . I was a student in north Cyprus , very nice hospitable people there but extremely dependent on Turkey to the point that can not provide even their own electricity and water without turkey . Turkey unconditional support have spoiled their ecconomy to the point that they don’t even try . And with regards to azerbayjan there is no shame in helping other states security but to fund to fuel a war is not the right decision while ordinary turkish people can not keep up with inflation . But again i am sure you already know that you just don’t like my opinion because you think it is targeyed at turkey eventhough it is from heart abd love as i have had my best years of education there. And to compare turkey with iran is a mistake , before all this turkey was predicted to match the giants of economy in the world now they are predicted to face an economical implosion with currency failiure ! This trend needs to change
you forgot a key piece of defense strategy that erdogan used to keep lira value high. the currency protected deposits ( KKM ). the central bank needs to get rid of this too without printing too much money which looks like it is impossible when combined with rate hikes
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.
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
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.
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.
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.
Yes, and variants on "lira", "libra", "pound", &c., are common currency names. "Lira" is originally from the Latin word "libra", which is a mass equivalent to a pound.
Israel's old currency was also lira. "Lira" comes from the Latin "Libra". It has Roman roots. It means "pound" so technically the British pound also derives from the same word.
Can we see the same video about Hungary and its 20% inflation in the EU? That sounds less impressive, but this is a country inside the EU FFS. It is supposed to be close to the norm....
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.
@@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.
@@daveogfans413 I have met a staunch supporter about a decade ago. He sang praises yet wasnt aware of the loans & interest rates...
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)
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.
@@daveogfans413such a good muslim 😇🥰 liar and thief ❤
@@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
@@daveogfans413 Who cares even lol, if he was a good Muslim then he should have fixed the economy long ago, he's hurting his people, and that is very unhalal
@@daveogfans413 Oh I am sorry for not understanding
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
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.
@@PhthaloJohnsonJust 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
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
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.
@@Bolognabeef hey ı am turkish ,born and raised here. people are dumb enough to vote for a politican just because they look like a good muslim. they believe that Erdogan is a very good muslim , so he wont make anything against the people. But believing a politician has power given by God is not a thing in Turkey. Not all muslim countries have the same culture. That's your prejiduce, ı m sorry.
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
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😅
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.
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.
@lif6737they want power, but don't want to lose it. This is why term limits are needed.
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
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.
Yeah damn traitord and deserters. If things ever go back to normal, those who abandoned everyone else in these dark times should never dare to come back here. Fucking spineless cowards.
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
@@JayOz1because its not that easy to get a job and even if you do, you still have nothing.
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.
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%
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.
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
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🎉
O....... Çocuğu
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 🙃
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
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
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!
its hopeless and i though it could be saved but it gone worst
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
View from İzmir just made me happy =))
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.
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.
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
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.
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.
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 😂😂😂😂
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?
Finance and Business books have been so helpful. I’m 55 and my wife 50 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. No longer putting blames on FED for our misfortunes. Saving and investing lifestyle in the stock market made it possible for us this early, even till now we earn weekly.
You have done great for yourselves. I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
Thanks so much I was able to find her page and I already leave her a message.
Stephanie is a fraud
This comment section is quite fishy!. This is either a scam or a very intelligent ad.
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 think its time for a new leader for Turkey.
Yeah absolutely that's right 🇹🇷
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 🤌🏻
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
Turkey voted that guy back in let them live it
Thanks for adding subtitles for us non-English speakers.
Oh no wait...
ReligoNationalism is a hell of a drug.
Yes, Erdo can save it, after a destruction is inflicted
The only thing keeping Turkey's economy from collapsing is Simsek's name. I don't know how did Erdogan conviced Simsek to accept the job :) But you can only go so far with just a name. We will see what will happen. It's fun Turkey's economy :)
The cookie company?
It is so sad. When a bright young Turkish person sees what's happening, they have to make a choice to wheter stay in Turkey and try to save it or brain-drain. But seeing that the problems of Turkey are very deeply rooted and seeing how incredibly hard it is to fix these problems they just leave. Looks like a lost cause. 😔
Turkey’s been going down the toilet and yet they still voted for the same dude!!! 🤦♂️
Summarized very good.
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.
I’ve been to turkey,it was very expensive both on staying and eating. I guess people have difficulty in paying their rents.
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.
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.
Those inflation ratgs are no correct.
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
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
0:40 *1 new Turkish lira = 1 million old Turkish lira*
Turkey's going full Argentina mode with money printing hmnnn🤔
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 .
🇦🇷 🤝🏼 🇹🇷
😂😂😂😂😂
Both are collapsing📉📉📉😂😂😂
Keep up the great work guys! I love that you guys cover news that most networks don’t, or won’t, cover and I can speak for us all in saying we appreciate it.
I love it when Turkey suffers
great overview, could you make an overview about Turkish private business groups and how are they affected?
Bro wake up TL;DR News Global just uploaded
It is worrying that the Turkish economy is still in crisis.
Turkey need a young leader to lead them 😂😂😂😂😂
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.
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.
Brilliant News caster. So speed and agility.
did you open this channel to monitor Turkiye? So funny
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.
when someone want to run 21st century world according to 6th fictional century book
Answer is no- it can’t be saved.
Don't conflate economy and currency
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
turkey makes the TB2 drone. that is a good company to invest in
they had a chance to have a new president but they blew it
What should the new president do?
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.
Not with him in charge😂
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.
İ am from Turkey and i am reading all comment
Aferin
Innocent Kurds are being genocided🔪🔪 by Demon Turks in Turkey!!!😭😭 Free Kurdistan!!!🟥️☀🟩️
I am scared for Armenia 😢 dictatorship always try to start war when economy is bad. 🇮🇳💝🇦🇲
Considering armenia is about to sign a peace treaty with Azerbaijan, the chances of Turkiye attacking a country that poses no threat to them is 0%
Bohooo armenia scared 😱 very sad very sad indeed 😥 i hope they sleep well... poor armenians... i hope turki dont bomb cappytal!!!! Barber turki dont kil armennyyy ! Get f'ked kiddo nobody cares about your armenia, belirve me the people who recognize that genocide can not even point armenia on the map 😂, get off mainstream media.
Don't worry the turks are more worried about Kurdistan being born in Northern Syria and Eastern Turkey than anything else right now.
Free Khalistan🟨️🟨️🟨️!!! Stop Sikh Genocide🔪🔪🔪😭😭😭
on 2:20, why does the graph show an increase in the value of the Lira?
Hopefully it will get worse and worse
"Too Long Didn't Read" - News!! Funny name 😄
Idk what people are smoking, but the expectation for Turkey is absolutely laughable and ridiculous. There is no magic button you can press to fix the economy. Mehmet Simsek had announced just a couple of weeks ago that fixing this problem is gonna take a few years. 3 years was mentioned. Add or take another year. One of the core reasons is financial trust, which can not be "recreated" within months. Investors are sensitive with their money, so they want financial security, for which financial policies have to be implemented and left untouched, so people have an incentive to invest. I also dont get this nonsense with the interest rates. You cant just indefinetly increase it and expect no downsides. If you want to cripple your economy: Yes, go ahead and put it double the inflation. However if you have 2 brain cells, you will consider your economic sectors, make a gradual increase and with balance in mind.
Appearently everyone is an expert. Everyone knows the solution, just not the economic ministers of Turkey. They actually work with first hand data, but hey, just let you tell otherwise by the random dude in the youtube comment section. Surely that person has more knowledge than people dedicating decades to their profession.
This is a fair point, but Turkey's inflation situation is, while not quite hyperinflation, still far too high to allow a cap on interest rates being imposed by a man who's ultimately in it as a popularity contest, and not in duty to the economy. Remember, these same men have had a cap of 25-30% imposed by Erdogan.
@@GrammarNaziAUS "being imposed by a man who's ultimately in it as a popularity contest"
It is imposed by Mehmet Simsek and he is an established and trusted economist. I am not sure where you get the idea, that this is an Erdogan policy at this point.
"Remember, these same men have had a cap of 25-30% imposed by Erdogan."
Because you cant get an economy running with crippling interest rates. You have to balance interest rate and economic output out. They dont pull these numbers out of their asses. They have actual data at hand they are considering.
@@justsefa1843 No, Erdogan has, quite literally, artificially capped the interest rates they can impose. There's no evidence to suggest they wouldn't raise it higher without that cap, and your implication that they wouldn't means that you, yourself, believe you know better. This is a falsity, and a hypocrisy. All we know for a fact is that they have raised it to 25%, and very quickly, and that they have very little wriggleroom left, and that they have started trying to defend their currency again, which is what the central bank had to do before when they had limits imposed on what they could do with their interest rates.
This isn't to say that without Erdogan's artificial handicapping of interest rates, that they would continue to rise, but that your statement that they won't/shouldn't keep raising them is not only based on misinformation, but also implies that you think you know better, when you know as little as the rest of us.
You're a sanctimonious little shit, and I don't care for it.
inflation doesn’t mean anything for Turkey 😂 everything is relative.. they just adjust the prices and life goes on.. but as a US citizen I’m worried about how much debt the US has and How European people are getting old and lazier… there are a few counties in Europe that can compete with Turkey in the next decade, Poland is one of them because of their young population. Your strong money will not save you or your children when everyone is old and retired… Japan is completely F’d when it comes to debt and how old their people are… but their money is so strong compare to Turkish lira… like I said, everything is relative.
So you think if prices go up by 100%, you can just increase the salaries 100% too and it will be aaaaaall fine? Bruh... Are you for real?
Turkey spends a lot of money on Azerbaijan and Cyprus . With conflicts like these , turkey is facing a bottomless pit . They get to be patriotic but they get to also loose money and comfort
You are Iranian, right? Turkish people have no problem with supporting Azerbaijan and North Cyprus. We have better tourism, industry, weapon industry, international trade than Iran. We have(and will have) many natural gas pipelines that help our economy. But on the other hand, Iran faces with many threat. Israel/Gulf Arabs alliance, Azerbaijan/Turkey alliance, western(mostly American) embargoes, shia enemy Taliban, rebelling Pashtuns in the east, secular rebel youth etc... Your politicans sell your country to the China and you are talking about Turkish economic problems. With global isolatation, very problematic economy, nationalistic and anti regime protests, waiting enemys from all sides... Iran have nothing to say about Turks. We can see your much worser situation. And we will never stop our plans like Iran will never stop theirs.
@@fatihersayn7877 as you can see from my name , i am not from Iran but Emirates. But don’t worry soon you will join iran in their situation . I was in north cyprus in 2014 , when dollar to lira was 1dollar=2.86 by the time i graduated it in 2021 it was 1 dollar= 7 tl . At 2014 Iranian GDP according to google was quite similar to yours with a downward trend of currency crisis apparent at 2018 your crisis was 2019 . I was a student in north Cyprus , very nice hospitable people there but extremely dependent on Turkey to the point that can not provide even their own electricity and water without turkey . Turkey unconditional support have spoiled their ecconomy to the point that they don’t even try . And with regards to azerbayjan there is no shame in helping other states security but to fund to fuel a war is not the right decision while ordinary turkish people can not keep up with inflation . But again i am sure you already know that you just don’t like my opinion because you think it is targeyed at turkey eventhough it is from heart abd love as i have had my best years of education there.
And to compare turkey with iran is a mistake , before all this turkey was predicted to match the giants of economy in the world now they are predicted to face an economical implosion with currency failiure ! This trend needs to change
@@fatihersayn7877 It is explained so well. Thank you.
@@siramina I am glad you liked my comment. Thank you.
Positive nominal interest rates are inflationary
you forgot a key piece of defense strategy that erdogan used to keep lira value high. the currency protected deposits ( KKM ). the central bank needs to get rid of this too without printing too much money which looks like it is impossible when combined with rate hikes
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.
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
Turkish LIra is 200% over valued...they have to devalue immediately
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.
Erdy ,the Adam Smith of turkey 🦃
My rent has gone up 500% in just two years.
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😂😂
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.
Excellent Vlog. Thanks for your hard work.
Still they spend millions on their trash 5th generation fighter jet
This is what happen when you try to re-establish Radical Islamist policy and rejuvenate Ottoman Empire,and becomes becon of muslim ummah
Turkey has a currency that sounds like Italy was?
Yes, and variants on "lira", "libra", "pound", &c., are common currency names. "Lira" is originally from the Latin word "libra", which is a mass equivalent to a pound.
Israel's old currency was also lira. "Lira" comes from the Latin "Libra". It has Roman roots. It means "pound" so technically the British pound also derives from the same word.
Can we see the same video about Hungary and its 20% inflation in the EU? That sounds less impressive, but this is a country inside the EU FFS. It is supposed to be close to the norm....