TR Economy & Updates

Blank1

Guest
Messages
3,273
Reactions
5,751
If you want low interest make sure there is 1-2 trillion usd in the central bank, and keep adding to it.
Why not gold and silver ? Russia and China have a stockpile of gold, last i checked was some 2000 ton and were still buying more. USA have some 8000+ ton or they say they have.
Turkey is a gold producer and a buyer, State must have at least 2000 ton of gold it is a universal currency. If god is useless in the dollar dominated world why did the champions of humanity looted Iraq, Syria, Libya and Afghanistan gold reserves ?
 

Saithan

Experienced member
Denmark Correspondent
Messages
8,594
Reactions
35 19,665
Nation of residence
Denmark
Nation of origin
Turkey
Why not gold and silver ? Russia and China have a stockpile of gold, last i checked was some 2000 ton and were still buying more. USA have some 8000+ ton or they say they have.
Turkey is a gold producer and a buyer, State must have at least 2000 ton of gold it is a universal currency. If god is useless in the dollar dominated world why did the champions of humanity looted Iraq, Syria, Libya and Afghanistan gold reserves ?
It was just an example. Gold would work too. Point is you should have 2-3 times your gdp in cash/gold in deposits, and never spend more than you can pay off. Strictly budget discipline.

Stable economy that you can’t screw around with will ensure fdi in trillions regardless of how politicians go fucking around with each other.
 

Timur

Well-known member
Chilli Specialist
Messages
314
Reactions
4 682
Nation of residence
Germany
Nation of origin
Turkey
You cannot make this comparison. It was not a government-imposed embargo. A private company is always free to choose its business partner.
lets hope I am wrong and too pessimistic..
 

Nilgiri

Experienced member
Moderator
Aviation Specialist
Messages
9,738
Reactions
118 19,732
Nation of residence
Canada
Nation of origin
India
It was just an example. Gold would work too. Point is you should have 2-3 times your gdp in cash/gold in deposits, and never spend more than you can pay off. Strictly budget discipline.

Stable economy that you can’t screw around with will ensure fdi in trillions regardless of how politicians go fucking around with each other.

I like where you are coming from, but 2 - 3 times GDP (given GDP is a year total measure) is too extreme (for say setting as law/institution) or something...for Turkey and most countries.

Even complete gold standard is effectively just for 1 year (assuming money circulation velocity of about 100% of GDP).

Climb back up that ladder (and being only country to do it, since swiss left it in mid 90s iirc)...would mean repeal of FBR (fractional banking reserve) etc....that would be too painful for Turkey for little benefit imo (as current world system operates quite differently now post-brettonwoods which is really long story).

Lot of (well run and not well run w.r.t their development level) countries are across the board from top to bottom here:


Vietnam = 18%
Japan = 220%

(Just as one example of disparity between countries well run compared to their dev level)

When you go past 100% (rare, you can see most countries are below) there is another phenomenon happening that takes longer explanation to get into (its off topic)....but its largely result (of being financial hub supplier) rather than policy driven (for the public benefit).

Public benefit/drive number is more how much the country saves each year as % of GDP (that year too)....rather than simply what sits accumulated (this integral is not that important compared to its yearly derivative and vectoring).

Striving for balanced govt budget (legislation, institution or firm-policy wise) is excellent vein on this that you suggest as govt should (IMO) minimize debt as they are operating on public mandate (costs are collectivized).

This is why credit rating is largely based on such thing too (taking into account the income/productivity of ppl as well etc), the govt is fundamentally showing it is not borrowing beyond its means.

Gold reserve + forex is just one recourse (for public investment by govt) btw, there is lot of other things to invest into as "sinks" that will always be needed ....land, real estate, well-run corporations etc.

Singapore Temasek is good one to study...for how Singapore govt does it.

Again it needs good discipline by the govt itself to recognise its role in the country and keep it minimized (and concentrated in those essential areas, law+order+basic welfare+public institutions etc)...and keep sound financial minds for its policy in long term investment/hedge for the public welfare at large.
 
Last edited:

Nilgiri

Experienced member
Moderator
Aviation Specialist
Messages
9,738
Reactions
118 19,732
Nation of residence
Canada
Nation of origin
India
On the other hand high interest rates cuts down investment, unemployment soars.

This suggests a deep structural issue present in Turkey (and the current account deficit is quite telling)...and interest rate is being used as raw hammer for steering it (when really current account deficit will do this over time by itself if govt let it operate with enough transparency).

I say this because high interest rate ought to increase investment....as you are soaking up liquidity (and preferring it to be saved to be leveraged rather than loaned) and making returns (to both local and foreign investors) higher from the very 1st "base level" setting govt is deploying.

It essentially means Turkey is too unbalanced in getting loans to try fix its current account problem....i.e increasing interest rate just ends up increasing what you got to pay back on the loans you already made, making and will make because its easy for govt....and this takes away money quite horribly from more productive investment (I am assuming) that provides best returns and jobs etc.

Govt basically stepping in and saying we (by loans) can handle this better than you (private sector + individuals)...and for latter to get out of the way...*points to stadium* etc. (When Turkey needs way more factories etc. that arent so great for brochures)
 
Last edited:

Nilgiri

Experienced member
Moderator
Aviation Specialist
Messages
9,738
Reactions
118 19,732
Nation of residence
Canada
Nation of origin
India
@Saiyan0321 if you like to read some economics theory/application to muse over on top of what you got already, here ya go ^^ (above two replies :D )
 

Constan

Active member
Messages
135
Reactions
211
Nation of residence
Turkey
Nation of origin
Turkey

Tornadoss

Contributor
Messages
1,374
Reactions
4 2,619
Nation of residence
Czechia
Nation of origin
Turkey
Turkey is big in construction work, comes second after china. It is good to see the government working in spacious offices as it shows the resourcefulness of the nation and builds confidence in the government.
Are you kidding?
 

mulj

Experienced member
Messages
1,989
Reactions
3,245
Nation of residence
Bosnia & Herzegovina
Nation of origin
Bosnia & Herzegovina
Turkey is big in construction work, comes second after china. It is good to see the government working in spacious offices as it shows the resourcefulness of the nation and builds confidence in the government.
Well, only if opposition promise that it will sold those mansions once their candidate win elections, this critique would have some merit, now it looks like ordinary jelaousy.
 

what

Experienced member
Moderator
Messages
2,155
Reactions
10 6,384
Nation of residence
Germany
Nation of origin
Turkey
Turkey is big in construction work, comes second after china. It is good to see the government working in spacious offices as it shows the resourcefulness of the nation and builds confidence in the government.

Yeah exactly, the Soviets did the same.

No better way to show the resourcefulness of a country then buildings palaces. Feeding the poor is not nearly as resourcefulness showing.
 

Follow us on social media

Top Bottom