Comments by "Sedna063" (@Sedna063) on "Turkish lira plunges, loses nearly 40% it's value this year | DW News" video.

  1. Just ask your local bank
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  2. Because if your economic growth is 9% but your inflation is 20%, you don't grow at 9%. Usually, economic GDP growth rate is given in nominal GDP growth rate. So this is your 9%. But this also includes the price hikes for everything. So if your prices rise 20%, this directly raises GDP without any additional productivity, which GDP measures. This is the "real GDP growth" which is corrected for inflation. This real GDP growth rate is far lower than 9%.
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  3. And how?
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  4.  @ziyadzerh1953  This is quite false. Banks are in the business to make money, like everyone else. Interest rates are a way to achieve this. The thing is, the Turkish economy is already heavily indebted in foreign credit (a lot of the boom was consumption driven on credit) - so people do not want the additional loans, they need to serve the existing ones first. The currency crisis began when the main thing; economic stability, eroded. The Turkish government sponsored the consumption boom and now that it was over, people didn't provide these loans anymore. Demand for Lira began to drop but orthodox economics would tell you to limit supply of the Lira, raising interest rates. But this wasn't done, instead, even more Lira was thrown on the market and the value continued to drop. People however don't buy Lira, since it is rapidly loosing value. This isn't the banks but common sense in people. Had they sold their dollars into Lira now, they would have made giant losses so far. Turkey can't break economics. You don't gain economic independence this way. You just impoverish your voters.
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  5. Economics 1.01
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  6.  @harukrentz435  People have this romantic 18th century agricultural superpower idea for a state...
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  7. The Lira tanks against any currency.
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  8. we don't
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  9. If they print, the dollar would loose value and your currency rises... Go learn economics.
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  10. We are talking about dozens of billions that need to be invested to stabilise the economy. I hardly think China has that much money around and it is definitely with strings attached.
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  11.  @adrianczaplinski7774  The US has significantly more assets it could sell to pay for the debt, plus, their citizens can be taxed much more to pay it off.
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  12. Best of luck.
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  13. The thing is that the Turkish government peddles some voodoo economic policy that fuels the Lira collaps.
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  14.  @mausenpai215  Even if it is Haram, things in the world luckily don't run on Islam... There is a more mundane reason though why he cuts rates. He wants to run on economic growth hitting 7+%. Trying to get businesses to invest.
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  15.  @mausenpai215  Yes exactly. Although he wants local businesses in construction (his buddies) to take on debt
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