Erdoganomics: the Policy that is making Turkey collapse - VisualPolitik EN
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For years Turkey was one of the great economic promises. However, the last few years have been particularly hard. In 2021 alone, the Turkish Lira lost 50% of its value against the dollar.
Today the country's economy is dominated by extremely high inflation, capital flight and supply problems. And all because of a deliberate policy: Erdoganomics. A policy that, for example, argues that lowering interest rates helps to curb inflation.
In this new video that we have made in collaboration with Value School, we tell you all the details about Erdogan's plan that is pushing Turkey to the point of collapse.
Big thanks to Value School for making this video possible: valueschool.es
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It never ceases to amaze me how fast decades of hard work can be wiped out in an instant.
It shouldn't. Imagine building a house and then a drunk driver runs a 30 ton truck through it. The efforts to build something and to destroy it are not correlated - a simple barrel of nitrous chemicals can wipe out a lot of things or value.
Politicians work just 2-3 years in the real world and they think they understand it, then they make enormous mistakes and the common people pay the price.
@Zakaria93 Aghzaf64 ignoring that redundance, why don’t you explain the justification for the Turkish president’s lunacy (read: zealotry)?
Reminds me of the saying, a reputation takes years to build and a second to lose.
@@MidnightAspec Turkish president has not only lunacy.. but also a huge fortune of many billions..
Not only him.. his family and friends.. a Turkish elite of 20-30 men and some qatari companies.
One of his sons has received an important port, Ceihan.. one of his sons on law has Baykar, the company that makes Bayraktar drones.
"Friends" from Qatar have bought, after having indide information, when they were cheap huge pieces of land around the soon to be constructed "cabal instanbul".
Soon, turkey (not turkiye) will need "peacekeeping forces", like their friend, Kazakhstan..
At this rate, tomorrow Turkey will accept dogecoin as national currency.
Doggy coin 🤣
You think you're smart? Turkey already banned all cryto.
@@markn6941 banned but crypto being used underground.
@@markn6941 heck at this rate, doge coin might be worth more than the Turkish Lira ...wait Doge coin is more valuable than the Turkish lira these day LOL.
@@johnwalsh4857 Dogecoin is also worth more than e.g. the Japanese Yen. However, that's not a meaningful comparison.
This is why is never a good idea to centralize powers and decisions on one single person and you always want checks and balaces instead.
Has not done the US much good.
@@___Truth___ Ironically the US has far less effective govt. controls than parliamentary democracies do. The very existence of the presidency as a powerful institution is a statement in favor of strong leadership. And take note that the US is one of the few so far successful examples of this system. In other places where a powerful presidential system has been tried, it often just ends up slipping into autocracy and failing. America has just dodged that bullet, so far. But even in America, the President today is more powerful than he's ever been, or at least since the time of Lincoln...during the Civil War...
This channel Turkey obsession never ends! 😂 Turkey exports reached over 230 billion dollars first time in its history! Something you don't wanna mention do you ?
@@davidgreen7392 the dollar has resisted and mantained many bouts of quantitative easing other currencies could not have resisted. But that is mostly due to the fact that the US dollar is a world currency and very much in demand. All countries need it to buy oil. That is probably one of the reasons the US invaded Iraq, Saddam wanted to trade oil in other currencies. It is the same for Iran and Venezuela, both countries opposed and sanctioned by the US. China also would like the RMB to take the place of the US dollar. But nobody trusts the Chinese monetary policy because it depends on ideology and the whims of one powerful person, Xi Jin Ping instead of independent evidence based reasoning. Most countries trust the independence of US monetary policy from politics and changing fashionable ideas of the moment.
@@theancientsancients1769 I really don't think the channel has dedicated to Turkey a fraction of the videos they have to Argentina or Europe.
Here in turkey we love 50 cent
Or how we call it 2 Lira ...
I mean 6 Lira ...
Sorry 17 Lira
Pardon 59 Lira
Now 124 Lira
I feel you brother from izmir times have been tough.
@@hungerquest7862 did you mean tough? :P
Selcovoi that's hilarious 😂👍
@@ahmetardakavakci my apologies I don't speak English as first language
@@hungerquest7862 np i confuse a lot too
Nothing trashes a country faster than theocracy.
Left wing ideology
extremism of any kind - tending towards mindless stupidity , left right centre , religious , fascism .... anything.
Any kind of despot
@@HimanshuSharma-oe4mk agreed.
Agreed 100%.
Why does he keep saying “Ottoman” that empire has been defunct for a century. It would be like saying “Soviet” when taking about modern Russia, but three times weirder.
There is nor ever has been a clean break in a nation's history. Ottoman ideas and/or mindset is still woven into Turkish society. Traditions handed down in family stories. Islamic conservatives have never been comfortable with a secular Turkey. This is their chance to impose a small majority dogmatic worldview on the greater population of those just living a life.
Modern Russia is more Czarist than Soviet. Except in the sham of democracy. A former KGB Colonel, who has become President for Life, believing in the random chaos of free and fair elections.
Indeed, it is peculiar, but rather endearing 😊
@@willcityaway7971 and that's the downfall right there - " Ottoman mindset "
@@steelcrown7130 say that to the millions of locals lining up for a piece of bread 🍞
Erdogan is still in full Ottoman delusion (no wonder he had to play the "let's make Hagia Sophia a mosque again despite what the literal Father of Turkey did".
Isn't this why governments tend to have experts and advisors in various fields to help them make decisions? A single person can make many mistakes like erdogan is doing, hence...experts and advisors.
The experts are in jail or dead..... Only yes men have been running this country.
Usually the issues with dictators
All of his advisors whisper his ears what he wants to hear.
i cant make a mistake
@@NoMoReBoTz99 or ruining his country.
Erdoğan proved his theory: lowered rates, and caused inflation skyrocketing - as result
Who might argue else?
Economist must be kinda interested, a real life laboratory to test out how economic theories on _doing the wrong thing_ work out.
@@casbot71well, with enough brutal force, everything seem to fit in
@@casbot71 the way it is forced, is way beyond logical though
islamic economy goal is to prevents the rich from getting richer and the poor getting poorer
A new Constitution is the worst thing that could happen to Turkey.
Probably he'll seek to take over all the powers of the state and never leaves office. Hopefully I'm wrong
If Erdoğan makes the new constituon. then yes, the worst thing. But if the opposition makes it. Maybe the best thing that happened to Turkey after Atatürk? I guess we will see that in time.
We don't even need to see the 'new' constitution to know that's exactly what he intends to do. He's a mini-me Putin.
@Zakaria93 Aghzaf64 It is the backward religion of Islam that is the very problem. Atatürk was on the right path, it has gradually been destroyed
@Zakaria93 Aghzaf64 Saudi Arabia is a Islamic country and rather busy bombing. Saddam Hussein even used gas on his own population. And Erdogan himself ordered bombings on the Kurds.
@Zakaria93 Aghzaf64 Lol, didn't the Ottoman empire do genocide on the Armenians 😂
That's why the Central Bank of every country should be independent of the government and free of politics.
I feel thats easier said than done, unfortunately.
The counter-argument is that this makes it free of democratic control as well. The progressive removal of parts of the system of governance from democratic control (by creating independent government bodies / quangos) is a cancer on Western democracies. It is supposed to ensure professional governance, but it does so at the cost of shrinking the democratic space. This is, long term, what creates opportunities for men like Ergogan.
@@brucemirbella2215 it is up to economists to decide about the tax rate and not to people and politicians that know nothing about economy
lol, Erdogan was doing his best decision for its people,,Turkey Rusia China are doing deDollarization and next Saudi then Opec then the world and the Dollar will fall 🤣🤣, i think Erdogan already knew it, thats why he want its people to change Dollar with lira even if Lira value going down againts Dollar the government will pay the rest
Ah Islam, when ever its name touches anything both logic and reasoning fly out the planet
Fly me to the moon 🌝
On a flying horse 🐎
Religion in general really
Every belief is basically a form of religion, but even Atheism itself is filled to the brink with errors of logic.
@@martinusv7433 I'd rather have atheist than what ever Looney toons esk logic religions bring
@@martinusv7433 If atheism is a form of religion then Celibacy is a sex position
Some French friends came to Turkey for holidays and they all have a big respect for them.
They are social, kind and warm welcome.
Good luck for the citizens of Turkey
Thank you bro
Turkish people are very good people.its the government of Turkey that loves war and fights to get involved.
I feel sorry for the Turkish people for being betrayed can't even bay bread. God bless Imamoglou the Mayer of Istanbul 🙏
Stfu under chp the lira was the worst currency in the world
If Erdogan is thrown out of power, then Turkey has hope
If Erdogan somehow maintains power despite him ruining the economy with his idiotic economic policy, Turkey will be a lost cause
Turkey's economy was never good pre-Erdogan: in fact, the old Turkish Lira was even worse than today's Lira.
Some of us are old enough to remember.
Turkey will be annexed by the European it's long overdue
@@aloysiusprasetyo3737 ........ .......
you dont like Erdogan? Means he is doing something right...Crusader flag says all.
@@BoqPrecision yes , he is the best. Turks deserfe him as leader. Hihi
Shows that public policy (rule of law, stability, and sound economic policies) is a key factor for growth
Unemployment is still going down. Current account is now positive. I am mostly worried about the fact that Erdogan is piling debt upon debt. If he paid that off instead of being a lunatic he could get inflation back to normal levels.
My father worked and saved and invested whole his life, then on a winter morning in 1992 he was swimming across rivers, trekking over hills and end up in concentration camp. His house destroyed, his cars stolen and his life savings deleted. After the war he never worked a single day of his life, refused all job offers, watches tv all winter, goes to hiss cottage which is solarpunk to fish and BBQ all summer and doesn't give a fuck for the last 30 years.
I refer you to China
If Daron Acemoglu would write his famous book: "Why Nations fail?" say ten years later from today, he would definitely add Turkey to his book as an example.
true, It was a country with a lot of promise which has been failing since Erdogan.
Or Mexico (my country :( )
@@y4lnux it actually included by a lot)
I am not sure why one would include Turkey in such a book. What could be learned from it?
While reading it, I thought he was actually speaking about Turkey as well without naming it. Or the case studies he used to illustrate his points were so relatable to Turkey...
His policy would only work if Turkey was self contained i.e. if they didn't need to trade with the rest of the world.
There are economic benefits to devaluing ones currency, but I don't think this is equivalent to Abeanomics.
true to a certain extent but this is just another corpse left in the wake of the fiat currency experiment.
Devaluated lira hurts the people and the exporters, it is a lose-lose situation.
@@oguzhangezer4290 the comment states only if Turkey was self contained but as it isn't my comment was a theoretical hypothesis.
@@damyjuk I know, i am awere of that theory.
I hope he continues with his flawed policy to speed up his downfall.
He's made a hole in his boat but the whole country including his non-voters are sinking with him.
Same. At least when Erdogan's failure will be too big to deny Turkey will become a civilised nation again. Also the whole world is peacefully waiting for them to apologise for Hagia Sophia, by the way.
@Zakaria93 Aghzaf64 America hunts Islamist terrorists.
Islamist terrorists are the cancer of the World and America is the chemotherapy for them.
@Zakaria93 Aghzaf64 well turkey IS causing economic downturn, just in their own country, not others. also dont group us with america, WE dont invade others for the sake of it, just america. also by anti-islam do you mean secular, like doesnt care what religion its citizens are and does policies based on facts, not faith.
@@farzana6676 😂
I remember when the Lira was almost equalled a dollar about 10 years ago..
He used to say national currency is the honor of it's citizens. The only way to survive now is, sending to exile in Saudi Arabia to practice his faith without involving citizens of Turkey.
This guy has a learning deficiency.
Vote him out
@@mayer14474 we're trying but there's a year and a half until the election
@@ninjakid186 are there any Islamist parties that are winning
@@ninjakid186 still better than nothing. In a lot of countries you can't change the leader ever. Vote them out bro. They're gonna make Turkey the next Iran.
@@karankapoor2701 what are the polls saying?
Sadly tho, Erdogans case proves that when a country is ran by an autocrat, it will crash eventually. It's crazy how one man can destroy his own country's economy which took forever to build up. People can't do thing about it, yet they are not even nearly responsible for any consequences that came after Erdogans foolish actions
Milennia of human history - Am I a joke to you?
Damm its almost like democracy was what destroyed the turkish nations and the Khalifa
@@WoulfContent dictator with theocratic ideas-
REEE DEMOCRAZY
lmao
Almost at if the turks where at there peak when there government and laws where based on religion yet when we added Western and democratic ideologes we saw major losses, deaths, and huge debt, yet when the turks under sultan abdulhamid han were more closely ruled under Islamic law we saw major improvements. Yet one final blow saw the democratic seclurisitc Zionists come and take controll, and destroy the turkish empire
@@WoulfContent what is ataturk
what is sick man of europe
lol
To the Turkish people who came to the streets in 2016 in support of an ideologist leader…Congratulations, you played yourself! 👏🏼👏🏼
Even though I am no fan of Erdogan, but democracy should not be scuttled using coups, assassinations. That failed coup gave Erdogan the excuse to change the constitution and turn into a lunatic dictator.
@@ankur.mahajan he did benefit a lot from that coup, that's for sure
Btw, the attempted assassination of erdogan was commuted by erdogan
Muslims work for the hereafter not this worldly life. We will not sacrafice the hereafter for riba!
@@nur-azhar Why not breed? We are not forbidden from having a life, but there are certain things we cannot do while we are, here such as dealing with riba. And having children does not mean they are destined for Jahanaam. Children will continue the message of Islam and which will help parents in the hereafter. And you are right, end times are near, if only you read the end times prophecies left by prophet Muhammad, you'd see that almost all of these prophecies have come true within your own lifetime in front of your own eyes.
As a Bulgarian, i am quite thankful for this whole debackle. It allows me and my compatriots to hop over the border and shop for real cheap.
Nice my gypsy friend - love you Borat
I would strongly advise you to stop shoping from Turkey. Stop helping this neonazi economy growing, instead if you want to buy something i m sure that you can find it either in your country or in Greece.
@@politicalcommentator656 Tell me you're Greek without telling me you're 🌝😏
@@adityaajit2120 tesla would kill himself if he knew that an average turk (guess his iq) would use his photo.
@@adityaajit2120 Do you disagree with my comment??
I am no expert in Turkey but based on what I have seen I get the impression Erdogan wants Turkey to be more like the Islamic states in the Middle East rather than being more like Europe. Also however well-intentioned he may be in following Islamic economics, basing a modern nation's economic policy on religious doctrine seems to be a massive mistake. Don't get me wrong I do see the benefit of having a low-interest rate but Turkey seems to be doing that without considering the impact on other aspects that make up the economy of a nation to its detriment.
The current interest based economic system is not a modern system rather an outdated one ! Turkey exports are at record levels currently at 230 billion dollars , something they had with more people in Jobs
he wants to shrink turkey to make it more controllable like enver hodjas albania.
damn him he is a reactionary
@@theancientsancients1769 The same year the import was 271 billion. Turkey is mostly dependent on import to export.
No matter what the government say, its a fcked up situation all around and they lost all the faith.
Her seyin hayirlisi...
You are right on this . If it was so simple and 0% interest rate was the solution to all economic problems there would be no need for economic theories, economic scientists and all the rest. Obviously reality is much more complicated than this. The Quran was dealing with people living in the primitive Arabian peninsula, it can not have any answers for the economic complexity of the modern world.
Arab countries are rapidly secularizing even in syria, 1 month ago the highest Islamic figure was disbanded. Stop aligning us with shitty Islamic laws, the whole arabic spring was meant for secularism.
This is the sort of thing that happens when leadership is never wrong.
The real question is..Do you really expect Erdogan to just give up his position?...He will probably cling on to power at any cost
He should do that. No good should come from him. He will be the next Ceaușescu, (ex Romanian leader, Google him) and he knows it...
There is no escaping that.
It saddens me so bad to see how pensions are being wiped out by a single men who doesn’t want to relinquish power .I foresee another case of Zimbabwe literally unfolding right in front of us.
why give up? Turkey Rusia China are doing deDollarization and next Saudi then Opec then the world and the Dollar will fall 🤣🤣, i think Erdogan already knew it, thats why he want its people to change Dollar with lira even if Lira value going down againts Dollar the government will pay the rest
Turkey doesn’t have an Ottoman economy, we abolished the Ottomans over a 100 years ago.
doesn't look like it lmao
I think he was more likely, talking about the foundation of it, that was set for modern day Turkey
Turkey: lowers interst rates, lira goes down in value
Erdogan: hmmm let's lower it again
Lira goes down ever more
Erdogan: hmmm interesting, let's do it again
Lira reaches 1usd=18 lira
Erdogan: hmmmm interesting let's sell some of our forex
Lire reaches 1usd=14 lira
Erdogan: hmmmm let's do the interest thing again.
How are people this dumb incharge?
@@tequilamockingbird758 because people are dumb enough to vote them in. And keep them in power as long as they get 'free' stuff.
Erdogan is right! First interest rates in Turkey are at 14%! How much you want it to go huh? US rates are below 2% in comparison!
Second, It's not a closed system. People can borrow money into Euro with lower rates!
And Turkey is actually producing a lot of things, they just gone undercut a lot of European producers and businesses if this keeps going on.
@@raitiC1 So your argument is basicly that the value of the Lira can degrade as much as it wants because people can simply exchange them to euros.... which again increases inflation.... genius
@@tequilamockingbird758 turkey and Russia are very much alike with how they keep their regimes in charge by sucking up to nationalism, never backing down as to not seem weak and a ego above the skies
"Ottoman economy"?
Is Austria a "Habsburg economy? Is China z "Qing economy"?
Yes
Yeah wtf was that
Qing economy 😆 well kinda CCP says commuism with Chinese characteristics but its actually capitalisms with Chinese characteristics so pretty much Qing economy.🤣
Imo the problem is that you can't run a fiat currency like it were a commodity currency like gold.
I know some Turks, Kemalists/secularists all, who were already willing to tolerate an intervention to get him out. They called him Sultan Erdoğan, and they are opposed to civil government imposing religious laws. I presume that a revival of Kemalist secularism may result if this destruction of the Turkish economy continues. Thanks for an in depth look into the problems of a country I have fond memories of.
The secularist have had coups in Turkey before and actually stabilized the economy. Turkey is the only country in the world where military coups don't produce more uncertainty than the actual government.
FWI: I'm not endorsing a coup. I just find Turkey to be unusual in this regard.
It has nothing to do with religion/secularism
I can assure you that kemalists in the army is of no existence, and in public, nearly non- existent too. But secular people still exist of more than %30 of the country. So, the categorization you made is misleading (Kemalists/secularists), they are not the same thing. Yes, all Kemalists are secular, there's no doubt in that but not all secular people are as extremist as being a Kemalist.
@@user-hw8rl5lh1i You are correct, that I made a too general assertion that implies that all secularists are Kemalists. Despite the attempt by the Neo-Ottoman regime to purge the military and judiciary of secularists, it may be an equally poor assumption that the purge was complete.
Only time will tell.
@@plataoplomo9096 Having lived in Turkey myself, I am confident that your assertion is incorrect, at least insofar as politics and religion being interconnected is concerned.
I would like to have learnt more about Erdogen's failed policies. Usually Visual Politik is more informative than this. This episode was very brief - could you provide more examples of how Erdogen has stifled business, reduced competition etc? What about some economic indicators- how is employment and economic growth going?
How much has foreign investment fallen? What is happening to life expectancy, tourism etc?
It would've been nice but in fairness to VP the video was aimed to explain the Lira's collapse and not an evaluation of Erdoğan.
I am thankfull for Erdogan.
Love from Greece 🇬🇷
@@sm3675 why..?
They covered it, but weren't very clear at the beginning. Turkey were printing "new" money at an excessive rate (technically it is called "expanding the money supply"), just like the US has done (33% of all US dollars ever created have been created by the government in the last 21 months). Excessive money supply expansion leads to broad-based inflation in an economy. Then the government was spending the newly "found" money they printed. Then to stimulate more growth they cut interest rates to very low levels which is NOT what you do to stop inflation. That pours gasoline on the sky-high inflation and devalues your currency even further. Once it starts capital leaves your economy and things grind to a halt.
@@dylreesYT he thankful for erdogan because he wants turkey to be ruined
Only Lunatic would invest into anything that has the word Islamic in it
Lol
The risk is not too great, it's insanely huge and everything hangs on whether or not Erdogan stays in power. I would love Turkey to be a modern European country, one that would resolve conflicts with dialogue and genuine interest in resolving them, a country that would prosper and be a good neighbor. But this is never going to happen.
Why do you think it will never happen?
@@disobeyv2724 history
@@christoforospaphitis4090 We are in a different age and generation. Future can be different.
@@disobeyv2724 hopefully, but I'm not really optimistic
Turkey isnt European and never will be.
This is why you should have secular government. Turkey had that until Erdogan
He was secular until around 2013
@@Dotcando The military has kept Turkey secular since Atatürk. It was the people in 2016 that failed the nation, not the brave military officers!
@@bodyloverz30 People deserve their governments.
@@alatus7242 Your so right, they do indeed!
@@bodyloverz30 it was because back then, erdogan hasn't revealed his true intentions yet, and many still see him as a normal and secular leader. The coup plan was also half baked when it was executed. If the coup happens today, I'm sure the results would be different.
Greece couldn't ask for a better president for Turkey.
I think Erdogan is a Greco-Armenian asset
The Turkish researcher Cezmi Yurtsever, claims that Erdogan is a descended from a family of Christians who lived in the Pontus area of North Turkey and became Islamised.
Turkish Prime Minister Recep Tayyip Erdogan, in a televised interview on NTV Channel, on June 10, 2011, on a related question about his origins, spoke in an insulting manner about the Greeks, saying the phrase that is commonly referred to when referring the word devil, ie "the one out here," when he spoke the word Rum (Greek). Anyway Turkish reasearchers have discovered that Erdogan is descended from the village of Potamia, Rizounda, Pontus. Researcher Cezmi Yurtsever reports that with the Islamization of the population, the demographic character of the Pontus changed, altering the Greek names of villages and cities with Turkish names. As he says, although so many years have passed that Fatih Sultan Mehmet conquered the Pontus, and he had alienated the inhabitants with firman (decree) that changed the names, until now the inhabitants of Pontos use the Greek names of their villages. Erdogan, on a recent tour of the Rizounta area (now RIZE), also visited the village of his parents, Potamia (River side in Greek). In the square of the village a large banner reads Potamya Hos Geldiginiz, that is Potamia welcomes you. He got off the bus, danced with his homies that were dressed in Pontic Greek traditional costumes and in his speech said that he is an expatriate from Potamia (calls it with the traditional Greek name Potamia and not with the Turkish name that is 'Guneysu' - southern water). Images of the Erdogan reception in Potamia were used by the leader of the Nationalist Party, Devlet Bahceli, in the election campaign to hurt Erdogan from being of Greek origin .
The Turkish researcher, in support of his findings, quotes figures from the Ottoman Empire's tax record for the inhabitants of Potamia village and found the details of the Erdogan grandfather, that he was the head of a guerrilla group against the Turkish conquerors. The surname of Erdogan's grandfather was Bakatdoglu Memis. The tax code in the national origin column wrote the word 'Islamized' and in the column name the new Islamic name. When in June 2009 Turkish Prime Minister Tayip Erdogan visited the village of Potamia in the area of Rizounda of Pontus, an ancient Greek village, was accused by the Turkish opposition of having Greek roots. The archivs of 1850 shows that Erdogan's grand-grandfather was rich, because all the villagers paid taxes 20-30 pence each and Erdogan's grandfather paid 38 pints. The family changed their surname in 1934 because the word 'Bakat', which was the family's surname, was considered to be absurd due to the fact that all Greek guerrillas were called 'Bakat'. In Pontus, therefore, this word had the meaning of a Greek rebel, a rebel against the Turks. From Pontus to Istanbul Erdogan's parents - according to the researcher - left their village Potamia and settled in a poor district of Istanbul in 'Kasim Pasa'. Erdogan was born in Kasim on February 29, 1954. In his interview with NTV, the Turkish Prime Minister said he is and feels a Turk and will go to court on writers who refer him as Greek. "When they ask you what is your ethnic origin, say that you are a Muslim and pull your way." Repeat Tayip, wanting to show that ethnic origin is a bit of a measure in his country and that Muslim faith is valuable, and he mentioned a conversation he had with his father years before. "I asked my forgiven father if we were Lazoi or Turks. He had told me that he also had asked the same question to his own father. And he said to him, "Look, my grandfather told me that when we die and go to the other world, they will ask us what God you believe, who your prophet is and what your religion is. They will not ask us for our ethnic origins
😂😂😂
It seems he cares much more for his afterlife, than fate of 80miilion peoples nation 😶
Erdogan achieved the longest sustained growth since the Turkish Republic! This plan is to get off interest based economy. Turkey current exports are at record high at 230 billion !
Erdogan's Otoman dream in a huge fallout nutshell 🤣🤣🤣🤣
He wants to follow Japan's old strategy, to boost Turkey's export. It can be successful in the future, if they have the technology, the human resources and sufficient funds/ resources to withstand the current problems
One thing that most people dont realised is that Japan is completely monopolizing automotive industry in Southeast Asia. Japan is selling millions of low end cars and motorcycle every year into a market with population up to 500 millions, and Japan have been investing heavily in region since early 70's, Does Turkey have the same advantage??
Japan used to have a fixed exchange rate to the dollar up until the Plaza accords though.
Well, bad for turkey that they have neither the technology, nor the funds, nor the human resources.
@@derriegel5705 but they only have us... An angry ethnic minority who is waiting for the Great opportunity to attack so puppet turkey can fall apart 😉
What Erdogan doesn't realize is that America invested heavily into Japan after World War 2. They also implemented favorable trade policies with regards to Japan. Essentially the US government incentivized Americans to import more from Japan between 1945 and late 1970s. This was because the US saw Japan as a valuable ally especially against communist China and Soviet Union and wanted Japan to rebuild as soon as possible.
Not to mention Japan already had a very well educated and technically sophisticated population before the war which massively accelerated their export oriented economy.
Given Japan already had strong fundamentals and received favorable investment and trade policies from the US, it was no surprise that Japan became a major exporter.
Turkey has none of the above benefits. It does have a deluded leader, 0 friends and a brainwashed Islamic population. Guaranteed recipe for success.
Islamic economy?
Bahahahaha 😂
You do realize Turkey is a Muslim country right? LMAOOOOOO
@@FlamingBasketballClub People are often extremly clueless...
@@tim3440 Yep, someone else in the comment section said Islam and Muslims are incompatible with economics.
@Lord Ass Politically they are secular. That's pretty much it.
@@FlamingBasketballClub turkey is a secular country. Also what is islamic economy anyway? Any islamic nation ever become rich by enacting islamic economy? Im pretty sure the big islamic empires in baygone era gained richess by conquering enemy territories and the big islamic nations today is getting rich by SELLING OIL IN MARK UP PRICES.
Ottoman has expansionist dreams, it’s not a friendly neighbour to have. We don’t shed any tears for Erdogan.
"all the progress made by the Ottoman economy" Uh.... they are not the Ottoman Empire any longer.
Came for this...
A classic example of authoritarianism in action. Idiocy and incompetence takes precedence over rational thinking and carefully made decisions based on research and knowledge.
Americans may point fingers at Turkey, but the USA is not in great shape either. There are many, many people suffering from inflation in the USA too.
dude. Apples and oranges
Congrats!!! Great job. It is an amazing video. I´m follower of visualpolitik ES, i think this would grow the audience.
Gosh, it’s almost like the separation of religion and governance should be a thing.😏
Islaminomics indeed.
Separate religion from humans entirely should be a thing, it won't solve humans violence or emotions but it'll help.
@@Greezy2000 no
This is a classic case where reality doesn't give a s**t about faith. I'm very sorry for our turkish friends.
They're not as naif as you may think
I remembered my super patriotic friend claiming that Turkey will surpassed even Australia 8 years ago
@Zakaria93 Aghzaf64 At the rate erdogan is going, turkey will be a failed state by 2030.
Thanks for letting us know.
In my view, he is trying to remove turkey from the western economic controls... Intresting
West doesn't control Turkish Economy so your comment seems dumb
if china itself can't create its own complete bubble !
This is Turkophobia. Pure and simple.
hahaha ....Doggo is the best!!!! Thx ...could not have made it better myself
one of the major reasons for this is Erdogan's Islamic and extremist policies.
Such a beautiful country and friendly people do not deserve a ruler like him.
The people support him maybe they deserve it
Great video 👌🏼👍🏼
And still there are people that think Turkey is a European country....
Turkey is apart of the European continent, so yes, Turkey is also a European country. Turkey's not apart of the EU, the European Union.
Can we have an episode on Egypt’s agriculture and industrial leap???
I like how they mention Erdogan being voted out when we already know he will miraculously win in 2023 and then become the longest serving Turkish president since Atatürk.
Good video. Can understand easier now. Good improvement & good job
Your next video on the Turkish collapse, I hope, is its impact on the EU, the US, and the world economic system.
That will be a short video
Sorry, there will be no such video. (Re)-read the history but be more focused please. The majority of people in Türkiye knows the value of their land&history. We have a struggle and will cope with that as we used to before.
At 2023 up Turkey will be less dependence of energy import. This could be key point too, Low Interest could stimulated economy turn and balancing unemployment rate rather than economy shutdown. Regarding production material which imported all of them are intended for export goods so Dollar value that have been purchased to producing will be returned again in the form of value added goods.
How are we gonna be less dependant to energy import? Turkey's weight to worth ratio is very low in its exports, we do not produce ''value'' in our imported goods. Most stuff is just low value materials so the gap isn't about to close, particularly with this instability.
You think those imported goods are made into something 5 times move valuable?
@@subutaynoyan5372 Turkish weakness burden by Fossil energy and in 2030 world constantly will change from Fossil energy to pure electricity. Nuclear power plant, renewable energy power plant and panels will dominance in decade. I think you still degrade Turkish ability to produce quality goods, from defence sector, white goods even food and beverage starting famous in the world.
@@Yudha752007 Turkey does not have manpower, knowhow etc to create top tier defence sector, and it's not like we need it as a member of Nato.
Turkey's very big, 80 million people. You can't feed that many people with ''defence sector''
Turkey also has severe draught problems, global warming is hitting hard, and already limited amount of fertile lands are drying up.
There's potential, but not with current government and current economical model because people basically stand in lines to get fucking bread.
And there's literally nothing Erdoğan didn't fuck up, from education to justice system, everything is abysmal at this stage and licking the wounds of his destruction will take decades
@@subutaynoyan5372 Its all your opinion that has to compare with reality, in the matter of time they will succeed. Turkish industry is not just only defence sector but expand. Its not the matter of drought, every country has same problem but youth villagers came out to city looking for job this will happening shortages in stock.
@@Yudha752007 You're just making baseless claims about a country you're not even a citizen of.
I can easily disregard your bullshit with ''Thefuck you know?'', you know....
Thank you for the video)
This is the best and most impartial channel. Glad I know English Spanish and German
I like to send over my economics professors who I had in college few years ago for some tutoring. The one professor (for whom I am still very grateful) explained graphically without complex math how the whole thing works, and even my 12 year old niece could understand it. Perfect for the Turkish president.
Well, greetings from Turkey. It is a little bit more complicated. When the government decreased the intersest rates, they knew quite well that the turkish lira would be devaluated against the USD. They did it anyway because since nearly a hundred years, Turkey had the problem of trade deficit. There are many reasons for that but Erdogan s diagnostic is the overvalued Lira ( turkish currency) and high interest rates which avoid the homeland investments. To a degree it s true. Why to produce when to import is cheap and riskless? So, he begun to devaluate the lira and used the rate cut as a tool. He also did a political populist step by declaring a war against interest rates. When the USD sky rocketed, he took the most challenging move: The compensation of the losses of the Lira bank accounts against USD.
Well, that clearly means that Lira is now backed by USD, under the turkish state guarantee.
Consequences: The inflation increased because the imports are much much more expensive now. ( Turkey is an oil and gas dependent country) The imports decreased whereas the exporters are thriving. As the purchasing power of the citizens is reduced with the internal demand shot dead, all is exported abroad, mainly Europe and USA. 2021 will probably be a surplus year for Turkey. Not to forget that debt/gdp of Turkey is less than 40 per cent. This situation makes the Turkish economy much sustainable because Turkish Lira is not a reserve currency and we can t do what the West does deliberately, that is stimulating our economy by printing money. However, this policy which is economically sustainable due to the stimulus of homeland investments, remains politically unsustainable. People do suffer...and we shall have the elections in June 2023. Erdogan says that it will be all right:) Better be so, or some ass kicking is on the horizon.😀
Another Turk here. The government tried so hard to keep the USD below 3 TRY first, then 5 then 7 then 10 then finally we saw 18. Before going to the municipal elections they literally burned 130~ billion dollars in order to save Lira's value while at the same time lowering the interest rates :D. There is no plan. As the crisis deepens and things get uglier they announce a different economic policy every day which fits to that day's situation. Erdogan is living in a imaginary world where he fights with imaginary enemies. It astonishes me how he went so mad and lost his mind after all these years of leadership. Instead of maturing him time wore him down and made him lose his senses. Unfortunately unless Erdogan is gone, there is no hope for the Turkish economy. As an ordinary Turkish citizen every single day on the street I realize how poorer I get for nothing.
Turkey should have followed China's footsteps of how to successfully devalue the currency ...
Very interesting
That's not how the economy of a country works. No one is going to invest in your country, and your citizens will only get poorer thanks to your policies.
The banking system will collapse, and with that, all future progress is pretty fucked.
Good luck with your "sustainable strategy".
I love the Visual Politik in English. Same style as the spaniard version. Gr8 job
What strikes me the most is solving economic problems with religious solutions. Unless this changes, it’s quite opaque for Turks.
Honest question: why would someone invest in Turkey? Everything depreciates so fast
Not land.
Turkey is a very strong horse with a drunk rider (for now) Erdoğan era is about to end. Those who invest in the Turkish stock market (which is very cheap now) will earn a lot in the future. Like BBVA
Common it's the only progress they have made since they came to Anatolia. Hahaha.....worthless!
@@juliadream261 BBVA already held an investment when they launched their takeover bid this year..
Dictators and single party systems are a nation's dead end. A genius dictator who does everything right and puts national needs before personal interests would be amazing. Dragons, Fairies, and Unicorns are also amazing. Both prior sentences are equally likely to exist.
Following 1,400 year old religious economic theory is madness.
Excelent video.
If the Fed raises interest rates. The stock market will collapse like in 2008. When the Fed raised interest rates and people lost their homes and life savings. If the interest rates rise the Turks will have a housing crisis and people will loose everything. Better to have a weak currency than a 1930's -2008 depression.
Not having measures in place to prevent your currency downfall means that every business out there that sustain it's production on cheap import will inevitably have to either close or drastically scale down production. And well without jobs you may have a worst situation than the 2008 or 1930 depression
Without hardship prosperity never comes I hope Turkey will solve all these problems.
Some hardship does not lead to prosperity, some hardship just leads to harder ship
Yeah man look at all the prosperity Venezuela is enjoying
That's the most typical excuse that all dictators have for their failed policies, lol.
Before that, he has to get rid of the Islamists in his country specially the muslim brotherhood members and enthusiast
The question is - when can we buy seafront apartments for $1000?
Omg!! Intro was amazing 🤣🤣🤣
I am not considering investing in Turkey at this moment. Oh who am I kidding, I don't have that kind of money. But thank you for the video.
We can always wish
You just need access to a internet broker to invest in turkey - MSCI TURKEY ETF
If only you know what the future says, you'll know that indeed cryptocurrency is the future, investing in it now will be the wisest thing to do. Hold!!! And you"'ll thank yourself
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i am so sorry for my Turkish friend.. hope for a better future for them
Funny how there is no mention of the current interest rate in all this analysis, only the change. The reason is because compared to most the western world economies it is eye wateringly high. Is there a possibility of moving towards adopting the euro to get out of the inflationary mess?
Joining Euro means joining the EU, and Turkey is far away from that. Furthermore, to join the Euro, your currency must be stable.
You could of course adopt the Euro without being a member (Montenegro style). But this would mean having no control over the currency.
@@neodym5809 You must also abide by certain human rights laws and that has led to many major European nations stamping down on the idea of adding turkey to the EU.
Finally, the curses my Armenian grandmother cast every single day towards Turkey as a whole is working
Tell your Armenian grandmother to sit down first and worry about the Azerbaijanis first. But I can't expect much from losers in war.
Turkey so competitive with Greece that they want to have a much bigger economic meltdown than the Greeks.
They already have a way more huge economic meltdown than Greece. And it’s even worse for Turkey because it’s not even in Europe.
@@DJ_Ichiyo Turkey is also in Europe.. It's a Eurasian country. I assume you mean European Union, which is true - Turkey's not in the EU, as aren't many Balkan, Eastern European and Caucasian/Eurasian countries.
The plan is to reduce Lira to worthless and then introduce cryptocurrency
Stop referring to Turkeys economy as the century’s old “Ottoman economy”. That’s like calling the German economy the Empire’s or the Reich’s economy.
This is good for Bitcoin. Literally take out a massive loan with negative interest, put it onto Bitcoin. Lira collapses, pay back, take another loan, rinse and repeat
Interest rate is not negative I think in Turkey taking a loan means in future u have to pay more as Erdogan will keep cutting
And that is precisely why the referendum was a mistake, because the one strong man (sorry girls) at the top can also be wrong and steer himself and everyone else into the abyss.
A prime minister under the old constitution would have lost parliamentary confidence months ago.
It would never have gotten this far, the damage would never have eroded so much.
Who was the last Prime Minister in Turkey again, Mr. Davutoğlu
Who was so deluded that he cheered and advocated to eliminate his own job?
Yes - parliaments are not that quick and compromises do not always taste good
and having at the top one strong man (still sorry girls) may sound plausible & seductive
and it might work until that person goes nuts.
"Power tends to corrupt and absolute power corrupts absolutely"
-Lord Acton-
I still adhere to power doesn't corrupt, it reveals and absolute power reveals absolutely.
no such such collapse, you tell what you not knowing for sure. the future of turkey is brighter than ever by this new economic measure.
I have a question to everyone, I am curious how do you compare this to Australia strategy on the currency? The Australian dollar was made weaker over the years which has contributed in Australia being competitive for its resources exports.
So has turkey tried to do the same or not really? Interested to see your comments?
Well, turkey doesn't really have as many natural resources and even if that's the plan, alot of turks would have to go into poverty as their neighbours (central asian and arab countries) have the same resources with cheaper labour.
Australia is a net exporter so exports more than it imports. I think turkey was a net importer hence they are suffering the pain of increased prices on imports more. This turned into reduced confidence in the Turkish lira. I believe it is fear of economic destruction through government intervention not lower interest rates which are causing the lira to collapse and foreign investors to be cautious. As they export more this may help fix the situation but it may be too little too late.
this is exactly what happens when religious fanatics become ruler's. 😞
Sad that a whole country is subject to out of date and irrelevant concepts of an egomaniac. Democracies around the world are a lot closer to such calamities than they realise. Just takes a manipulative grifter, lazy institutions and an apathetic public.
This battle was indeed expected and has not ended yet, therefore the question remains: who is going to get the last laugh in this intensive war against usury?
This is what absolute madness looks like.
That's what happens when you take economic advice from a 1400 year old religious book
This is normal in countries ruled by religion. May God save us from this administration soon. Let a nationalist, modern government come.
Tf are u talking turkey is secular there is no relgious rule
It is a state founded ataturk
@@seren1628 does current turkey government follow secularism? I don't think so
@@syhuhjk of course they are just speaking religous but there is nothing in action
just realized you can play a drinking game on visualpolitik videos, you can take a shot every time you hear "check this out" or "take a look at this"
At this rate, turkey will start selling hair plugs for $1 a wig...bald men and women of the world, unite
I think that the intent behind the religious aspect of this policy has a right to be thought of.
But to force it in such a way without proper understanding is just like asking your barber to do a medical prosedure.
It just wont come out right.
Maybe it work if private banks had very high interest rates (or even could not do it for profit), but Citizens could borrow from Govt Bank which lend at zero interest rates.
But Caveate was that the Govt would lend for socially & economically responsible things.
E.g.
your first house to live in, but not property investments;
Small & Medium Bussiness;
New business, etc
And only a certain amount of this zero interest lending each year.
Yeah, that was my response. The minute he said the word usury, I suddenly had more sympathy for the underlying idea... But to apply a medieval/ancient moral idea to the modern economy would be really complicated; this lowering interests rates idea just seems pasted on.
@@chris7263 It could be practical: a Public Bank that would only lend at zero interest to only things of net public value. So not used for speculation.
I went to Turkey in 2013, such a beautiful country. I had the chance to speak to a local, a wise older woman, and she more or less predicted this mess. Theocracies don't have a place in today's world.
@@FelixBat that the reason the numbers of Native Americans today just 0.01 % of total US population, you have such a great holy book
Do you or can you add a list of the tracks used as backing music to these videos. I really enjoy some of them and would like to hear the originals.
For the soundness of Erdogan's policies, just look at all the dynamic Islamic economies in the world...
Decent content although this explanation could have taken 2min.
If you want to be more nuanced you could have laid out the scenario of this policy being (deliberate) back door currency devaluation. Erdogan wants Turkey to be the most competitive exporter in the region and to do that he wants importers (of capital and other things) to become self sufficient. Obviously there’s a point where things become untenable but the policy still can work if done methodically over a long time line. The main issue is that he wants the economy to shift tomorrow!
I think the religious excuse is just a distraction because Turkey still borrows from the international bond market and …guess what? Pays interest.
Turkey started falling behind when its southern neighbor started waking up. Egypt has more skilled manpower, natural resources, allies, & most importantly strategic location.
Lol No, it has nothing to do with Egypt, completely Erdogan's wrong policy and foreign embargoes
You are right. Many people fail to understand how much turkey was promoted from western counties during the period 2003-2013. Anyone who disagrees with it can watch obama speech in Turkish parliaments, he proposed to Turkey a to-do list acting something like the "protestant" Muslim country, on sunni Shia Muslim world.
@Rüçhan Ok I am egyptian living in USA and my Turkish friends are all very intelligent & hardworking. But guess what? They all left Turkey. Very few skilled workers remained in Turkey when they can earn more in the EU.
As far location? Who controls the most strategic trade route in the middle east? Didn't the Evergreen accident show you EU dependence on the Suez Canal?
Finally, who owns most of the Natural gas infrastructure in the region? Who has more proven natural reserves? Lastly, why does turkey currently import gas from Egypt?
I'm not sure the Egyptian economy or geography or government is particularly S-tier or even B-Tier but fair doos to the Egyptians for taking advantage of their superior demographics and going toe to toe with their more geographically blessed regional neighbours. It's true the Egyptians are intelligent and hard working and seem hell bent on turning their sliver of inhabitable land into something potent on the world stage.
@@peterhermina656 Turkey is far more geo strategic than egypt, Control of turkish straits very important for europe and western world in general,if russia access Mediterranean that means catastrophy and also egypt is 80 percent desert and overpopulated (100+million) and fertility rate is near 3 ,that means egypt will be not prosperous in future
8:12 Good job editor
One can deny reality, but one cannot deny the consequences of denying reality. I fear for the people of Turkey.