TR Economy & Updates

[TheInsider]

And is this plan good or Not?
Like, is it the right way to go or not since I read many posts on how it would be better to raise the interest rate massively the first time and keep it at around 40% for a while while the currency improves in value against the dollar

It won't happen overnight. He needs at least a year to consider shutting down FX-protected accounts. IMHO this is the best plan and best way to return orthodox policies, rein in inflation, and get rid of FX-protected bank accounts. It won't come cheap as the economy will stagnate. Expect worse growth rates and higher unemployment but this loss has to be taken now or we will literally go bankrupt. In the future, as the inflation rate decreases interest rates will also decrease. We should have never experimented with unorthodox policies. We should have paid a lower price earlier, we will pay a bigger price due to an unorthodox policy experiment.

 

[B_A]

It won't happen overnight. He needs at least a year to consider shutting down FX-protected accounts. IMHO this is the best plan and best way to return orthodox policies, rein in inflation, and get rid of FX-protected bank accounts. It won't come cheap as the economy will stagnate. Expect worse growth rates and higher unemployment but this loss has to be taken now or we will literally go bankrupt. In the future, as the inflation rate decreases interest rates will also decrease. We should have never experimented with unorthodox policies. We should have paid a lower price earlier, we will pay a bigger price due to an unorthodox policy experiment.

Unless we boost our export and reduce our import...

 

[Saithan]

https://twitter.com/i/web/status/1673699654276460547

USD reserve increased by 8,5 billion in one week

 

[Bozan]

https://twitter.com/i/web/status/1673271825642450944

They're going to sell the country to gulf/Chinese money before allowing Sweden into NATO in my opinion

 

[Lool]

https://twitter.com/i/web/status/1673699654276460547

USD reserve increased by 8,5 billion in one week

Hopefully it will increase even more with the beginning of the holiday season, Eid Al-Adha and the influx of tourism during the summer

Simsek seems to be fully committed to his orthodox policy and it seems that some are beginning to bear fruit. Hopefully, his other policies will follow suit

 

[moz68k]

https://twitter.com/i/web/status/1673271825642450944

They're going to sell the country to gulf/Chinese money before allowing Sweden into NATO in my opinion

Yeah, as if anyone else is above selling out to the Emirates or China.

GlobalFoundries, an American company, is the world's fourth largest semiconductor fab and is owned by the Emirati Sovereign Wealth fund.

Imagination Technologies (IP holder of basically all mobile GPUs and now even in high performance Apple Silicon desktop processors) is a British company literally owned by the Chinese government.

Money is money. They have a lot of it and it's important we get slice of the pie, seeing as we're in serious need of it.

In other news, the Lira has stabilized (for now) and TCMB reserves are up.

 

[Bozan]

Yeah, as if anyone else is above selling out to the Emirates or China.

GlobalFoundries, an American company, is the world's fourth largest semiconductor fab and is owned by the Emirati Sovereign Wealth fund.

Imagination Technologies (IP holder of basically all mobile GPUs and now even in high performance Apple Silicon desktop processors) is a British company literally owned by the Chinese government.

Money is money. They have a lot of it and it's important we get slice of the pie, seeing as we're in serious need of it.

In other news, the Lira has stabilized (for now) and TCMB reserves are up.

There's a difference between developed countries and developing countries when it comes to such sales.

In developing countries it leads to loss in sovereignty and control of strategic industries in addition to exploitation. America and Britain can enforce terms favourable to them in the case of a sale. Erdogan will not.

 

[moz68k]

There's a difference between developed countries and developing countries when it comes to such sales.

In developing countries it leads to loss in sovereignty and control of strategic industries in addition to exploitation. America and Britain can enforce terms favourable to them in the case of a sale. Erdogan will not.

I will agree with your point wrt loss of sovereignty and control of strategic industries in developing nations. However, I have to strongly disagree with your statement on whether the US or the UK can really enforce favorable terms when their IPs are swept away by two countries that have no regard for such matters. Especially when such countries already hold such power (natural resources, manufacturing, manpower, etc.) over them.

Turkey should never forfeit strategic assets, on that we agree, however it would be irresponsible to scoff at investments from non-western nations in an increasingly multipolar world.

 

[Chocopie]

Yeah, as if anyone else is above selling out to the Emirates or China.

GlobalFoundries, an American company, is the world's fourth largest semiconductor fab and is owned by the Emirati Sovereign Wealth fund.

GlobalFoundries lost the semicon tech race years ago. Many inhouse development projects failed and they ended up buying licenses. Their „latest“ node process technology (22 nm, 14 nm, 12 nm) is licensed from other major players. TSMC and Samsung are both technology leaders with 3 nm and a multitude of sales compared to GF’s revenues.

Wiki:
GlobalFoundries' 22 nm FD-SOI process is second-sourced from STMicroelectronics.
GlobalFoundries' 14 nm 14LPP FinFET process is second-sourced from Samsung Electronics. GlobalFoundries' 12 nm FinFET nodes are based on Samsung's 14 nm 14LPP process.

Besides all this, IP owned by US and UK companies are protected with a fine web of national and international legal frameworks from exploitation via foreign investors. They ain‘t that dumb to sell out core trade secrets blindly.

 

[moz68k]

I never said anything about GF being any good, just that their Chairman is an Emirati.

Besides all this, IP owned by US and UK companies are protected with a fine web of national and international legal frameworks from exploitation via foreign investors. They ain‘t that dumb to sell out core trade secrets blindly.

I don't agree at all. If push comes to shove and the world really does break in two, those international and legal frameworks won't mean a thing. SMIC and Moore Threads may be behind the curve, but they are already sufficient for defence. Consumer tech is another thing, but I was thinking about defence.

As for the intelligence of business executives and governments, I leave that judgment up to you.

 

[Chocopie]

I never said anything about GF being any good, just that their Chairman is an Emirati.


I don't agree at all. If push comes to shove and the world really does break in two, those international and legal frameworks won't mean a thing. SMIC and Moore Threads may be behind the curve, but they are already sufficient for defence. Consumer tech is another thing, but I was thinking about defence.

As for the intelligence of business executives and governments, I leave that judgment up to you.

As this is an economy thread I thought about general consumer tech and business practice unrelated to defence.

Ofc, if the US dominated world order breaks down in a global conflict, IP legal frameworks mean not much. Up until then I like to remind that powerful Western bloc-countries like US and UK have the political muscles to enforce those legal frameworks globally, also binding countries like China.

The economic consequences of breaking those rules would wreak havoc on Chinese or any other nation’s business relations to other countries.

 

[TheInsider]

AKP sold the Izmir Alsancak Port which is one of the biggest passenger and cargo ports of Turkiye to the UAE-based Abu Dhabi Port. It is not announced yet.

 

[YURT]

Türkiye's Borsa Istanbul (BIST 100) hits all-time high​

 

[Lool]

AKP sold the Izmir Alsancak Port which is one of the biggest passenger and cargo ports of Turkiye to the UAE-based Abu Dhabi Port. It is not announced yet.

Damn that is horrendous
It seems that the economic situation is horrendous and the current plan isnt working

By selling.... do you mean that is now a UAE owned port or did they just sell the administration part of the port

 

[TheInsider]

Damn that is horrendous
It seems that the economic situation is horrendous and the current plan isnt working

By selling.... do you mean that is now a UAE owned port or did they just sell the administration part of the port

UAE owns the port now. It might be for a set time like 49 years. More info will likely surface in the following days.

 

[Bozan]

AKP sold the Izmir Alsancak Port which is one of the biggest passenger and cargo ports of Turkiye to the UAE-based Abu Dhabi Port. It is not announced yet.

The first amongst many!

 

[Bogeyman]

https://twitter.com/i/web/status/1676114210516762626

A €100 vehicle in the EU is €144 in TR, about 50% more. This shows both the size of the tax and that in some sectors prices are rising faster than the exchange rate (the profit margin is very high). In other words, both the state and the private sector benefit from this work in an inflationary environment.

 

[what]

Bloomberg - Are you a robot?

Alsancak is being sold, not even a tender this time. The price was 1.2 bln € in 2007, let's see how the terms will look like today and for how long it will be operated by the new owner. I hope the deal includes expansion work.

 

[Tuncay]

What is the reasoning behind such a small share of GDP allocated for defence ? Is this a joke ? Turkiye has the most active armed forces and is constantly in conflict and has the highest risk of war yet is allocating a lower share of gdp then norway and canada . It is also one of the 3 countries to decrease their defence budget ( in terms of % of GDP) despite increasing global tension. An armed force that already had insufficient funds to procure/upgrade vehicles/ equipment has only just gone and further decreased the budget ...
this has really trigerred me to be honest , any reasoning behind this ? or something that I missed like jandarmas budget being seperate from this ( still not a good enough reason as the armed forces are responsible for the defence of the nation and thus needs a much higer share of GDP, jandarma , as much as they are effective at anti-guerilla operations, are not capable/expected to engage an armed force such as iran or syria).

 

[Bozan]

View attachment 59060
What is the reasoning behind such a small share of GDP allocated for defence ? Is this a joke ? Turkiye has the most active armed forces and is constantly in conflict and has the highest risk of war yet is allocating a lower share of gdp then norway and canada . It is also one of the 3 countries to decrease their defence budget ( in terms of % of GDP) despite increasing global tension. An armed force that already had insufficient funds to procure/upgrade vehicles/ equipment has only just gone and further decreased the budget ...
this has really trigerred me to be honest , any reasoning behind this ? or something that I missed like jandarmas budget being seperate from this ( still not a good enough reason as the armed forces are responsible for the defence of the nation and thus needs a much higer share of GDP, jandarma , as much as they are effective at anti-guerilla operations, are not capable/expected to engage an armed force such as iran or syria).

The country has a severe budget (10 billion dollars in the first 5 months so far) deficit and can barely afford anything.