TR Economy & Updates

[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.

 

[TR_123456]

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).

Maybe because we dont buy from others anymore?

 

[Tuncay]

Maybe because we dont buy from others anymore?

If i remember correctly the defence budget includes all spending including personel wages, equipment procurement and R&D. It doesn't change if the product is local or foreign , the product maybe given at a discounted price but is not given free of charge and that expense is documented and added to the defence budget. A drop in budget means less budget for procuring products local or not. There is no correlation between budget and localised products . Take the US as an example the biggest economy in the world and the largest producer of weapons has allocated a share of 3.49 , they certainly do not procure foreign weapons not including anomalys like the L118 howitzer which is solely to boost/support allies defence industry they produce everything they need.

 

[Afif]

If i remember correctly the defence budget includes all spending including personel wages, equipment procurement and R&D. It doesn't change if the product is local or foreign , the product maybe given at a discounted price but is not given free of charge and that expense is documented and added to the defence budget. A drop in budget means less budget for procuring products local or not. There is no correlation between budget and localised products . Take the US as an example the biggest economy in the world and the largest producer of weapons has allocated a share of 3.49 , they certainly do not procure foreign weapons not including anomalys like the L118 howitzer which is solely to boost/support allies defence industry they produce everything they need.

I think it has been discussed before. Afaik, R&D bugdet is seperate.

Also, I don't think it is fair to compare developing country's defence budget with developed countries defence budget. (Let alone with USA)

For example, China despite being the only true contender in great power competition with United States only spends 1.7% percent of its GDP on defence. (Because, it is a developing nation)

 

[TR_123456]

If i remember correctly the defence budget includes all spending including personel wages, equipment procurement and R&D. It doesn't change if the product is local or foreign , the product maybe given at a discounted price but is not given free of charge and that expense is documented and added to the defence budget. A drop in budget means less budget for procuring products local or not. There is no correlation between budget and localised products . Take the US as an example the biggest economy in the world and the largest producer of weapons has allocated a share of 3.49 , they certainly do not procure foreign weapons not including anomalys like the L118 howitzer which is solely to boost/support allies defence industry they produce everything they need.

You cant compare it to the US,in the US everybody makes money on domestic weapons sales.
In our country that is not the issue,the Turkish Armed Forces buys everything almost at cost price,the margins are small.

 

[Tuncay]

You cant compare it to the US,in the US everybody makes money on domestic weapons sales.
In our country that is not the issue,the Turkish Armed Forces buys everything almost at cost price,the margins are small.

everything aside , the decrease of budget and for the share of GDP for defence to be 1.31 when the NATO guidline is 2 is nothing positive . With a budget of +- 15 bilion where 52% is spent on personel wages its going to be dificult to replace aging tanks , ifv etc. Localisation of products is not the reason for this the economy is. Still in these conditions the defence industry is excelling , only if there was a budget to procure these products in much larger numbers

 

[Rooxbar]

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

View attachment 58971
View attachment 58972

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

View attachment 58971
View attachment 58972

Now do that but in a stable currency, you can choose any one of them; dollars, euros, yens, yuans, whatever. What's Bors Istanbul's yearly performance based on its value in a currency that isn't nosediving? -30%, worst in the whole wide world. (well maybe not worse than Zimbabwe's second city's stock market, but everybody knows what I mean).

 

[Rodeo]

Now do that but in a stable currency, you can choose any one of them; dollars, euros, yens, yuans, whatever. What's Bors Istanbul's yearly performance based on its value in a currency that isn't nosediving? -30%, worst in the whole wide world. (well maybe not worse than Zimbabwe's second city's stock market, but everybody knows what I mean).

The economy has to slow down. The citizens know that their money won't worth the same tomorrow and they rush to the shops to spend whatever they have in their pockets. This demand cause the shopkeepers to raise the prices to their liking. If minimum wage increases by 30%, they increase the prices 50%. Because there's no price stability. Everyone is in craze and buying stuff without thinking. This behavior corrupts the shop-owners. There are huge price differences for the same products among the sellers. The smidgen of business ethics that they had has eroded thanks to the never-ending wage increase-inflation loop. The interest rates should be hiked till the water clears and the prices stabilize.

If you were a businessman with capital, you would have to be insane to invest in this environment. Why would you setup a factory and go through all that hassle and risk your capital when you can earn huge sums of money just by buying stuff(land, residence, fleet of cars etc.), storing and later selling. It's even better if they can take out loans cheaper than inflation rate. That's effectively, giving them the license to print money.

This DUMB experiment has to stop. What I fear is that because of the incoming local-elections, Erdogan will interfere and remove the head of CB and the minister of economy for in favor of his "unorthodox" views of economy.

 

[Bozan]

https://twitter.com/i/web/status/1677355197050355712

Food prices around the world (red line is Turkish). At the same time, taxes on some goods up by 20%. As it is every year for years now, most difficult years are ahead of the country.

 

[Bozan]

Potentially huge problem in the future if this is widespread.

https://twitter.com/i/web/status/1678338789440118785

 

[I_Love_F16]

Potentially huge problem in the future if this is widespread.

https://twitter.com/i/web/status/1678338789440118785

Unfortunately this was meant to happen :/