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With debt that low couldn't they stop printing money and instead increase government spending?

wwtrv 5y ago
Having a low debt to GDP ratio doesn’t help if nobody is willing to lend you money. The yoeld on 10 year Turkish bonds is ~20%. In contrast it’s way cheaper for Greece to pay interest on their debt despite having an over 200% debt ratio since they can borow with much lower interest (~1.3%).
- 1cvmask 5y ago
  The US since Obama has put many informal sanctions on Turkey to choke the economy. In fact Obama failed to overthrow Erdogan during a coup attempt in July 2016 where he even tried to kill Erdogan and his family. They even managed to bomb the Turkish parliament during the CIA orchestrated coup attempt. The ring leader of the failed coup attempt resides under protection in Pennsylvania and had his residency endorsed by Graham Fuller, CIA head for Moslem countries, and other neocons. https://www.bbc.com/news/world-europe-42198399 https://www.bbc.com/news/world-europe-42198399
  - WastingMyTime89 5y ago
    Please this is Hacker News not Erdogan daily. You are free to share the preposterous and outlandish propaganda used by Erdogan to justify his authoritarian reforms but don’t expect people to actually believe it. It’s even pointed in the BBC article you are citing despite it being overly sympathetic in my opinion: > To many Turkey-watchers, it smacks of outlandish conspiracy theories. But polls show a majority of Turks firmly believe that the CIA was involved in the failed coup.
  - illys 5y ago
    Your article: "More than 50,000 people have been arrested in Turkey pending trial over links to Mr Gulen. Another 150,000 people have been sacked or suspended from jobs in the public and private sectors since the coup attempt on 15 July 2016." So it is a "coup" organized by 200.000 people? Or the destruction of all political opposition supported by some nice storytelling? It is always a good strategy for candidate dictators to point out the evil foreigners... It guarantees the simple-minded people support.
    - _v7gu 5y ago
      A coup organized by a cult with 200.000 members, who mostly obtained positions in government via nepotism. That shouldn't look so outlandish considering what happened in South Korea. Also to say, sacking people with cult involvement had universal support. The opposition parties always held very strong anti-cult positions for ever. Funnily enough, the cult itself was involved in destruction of political opposition via conspiracy (the Balyoz case) back when they were besties with the ruling party.
illys 5y ago
In an open economy, the money is printed from the public demand. The more demand, the more printing, the more inflation... And the money demand is controlled down by raising interest rates, but Erdogan has ordered the central bank to keep them low, against the economists consensus. So massive speculation starts: People take a loan in lira (i. e. print money), turn the money into something else (buy an object, or turn to EUR or USD for people who can access this market), wait some time, sell back to pay the loan with a share of the value... They keep the difference and start again with more leverage. And the volume of liras increases more for a lower and lower value (inflation). The only way out is to raise the interest rates before it all goes out of control. The opposite of current policy. Inflation has passed 45% this year already.
- gruez 5y ago
  >In an open economy, the money is printed from the public demand. The more demand, the more printing, the more inflation... Not really? Most developed countries have a central bank that "prints" money by doing interest rate changes, which in turn is determined by inflation rate targets.
  - wwtrv 5y ago
    Still someone has to borrow the money for it to be “printed”/created so technically it’s correct.

Having a low debt to GDP ratio doesn’t help if nobody is willing to lend you money. The yoeld on 10 year Turkish bonds is ~20%. In contrast it’s way cheaper for Greece to pay interest on their debt despite having an over 200% debt ratio since they can borow with much lower interest (~1.3%).

1cvmask 5y ago
The US since Obama has put many informal sanctions on Turkey to choke the economy. In fact Obama failed to overthrow Erdogan during a coup attempt in July 2016 where he even tried to kill Erdogan and his family. They even managed to bomb the Turkish parliament during the CIA orchestrated coup attempt. The ring leader of the failed coup attempt resides under protection in Pennsylvania and had his residency endorsed by Graham Fuller, CIA head for Moslem countries, and other neocons. https://www.bbc.com/news/world-europe-42198399 https://www.bbc.com/news/world-europe-42198399
- WastingMyTime89 5y ago
  Please this is Hacker News not Erdogan daily. You are free to share the preposterous and outlandish propaganda used by Erdogan to justify his authoritarian reforms but don’t expect people to actually believe it. It’s even pointed in the BBC article you are citing despite it being overly sympathetic in my opinion: > To many Turkey-watchers, it smacks of outlandish conspiracy theories. But polls show a majority of Turks firmly believe that the CIA was involved in the failed coup.
- illys 5y ago
  Your article: "More than 50,000 people have been arrested in Turkey pending trial over links to Mr Gulen. Another 150,000 people have been sacked or suspended from jobs in the public and private sectors since the coup attempt on 15 July 2016." So it is a "coup" organized by 200.000 people? Or the destruction of all political opposition supported by some nice storytelling? It is always a good strategy for candidate dictators to point out the evil foreigners... It guarantees the simple-minded people support.
  - _v7gu 5y ago
    A coup organized by a cult with 200.000 members, who mostly obtained positions in government via nepotism. That shouldn't look so outlandish considering what happened in South Korea. Also to say, sacking people with cult involvement had universal support. The opposition parties always held very strong anti-cult positions for ever. Funnily enough, the cult itself was involved in destruction of political opposition via conspiracy (the Balyoz case) back when they were besties with the ruling party.

illys 5y ago

In an open economy, the money is printed from the public demand. The more demand, the more printing, the more inflation... And the money demand is controlled down by raising interest rates, but Erdogan has ordered the central bank to keep them low, against the economists consensus. So massive speculation starts: People take a loan in lira (i. e. print money), turn the money into something else (buy an object, or turn to EUR or USD for people who can access this market), wait some time, sell back to pay the loan with a share of the value... They keep the difference and start again with more leverage. And the volume of liras increases more for a lower and lower value (inflation). The only way out is to raise the interest rates before it all goes out of control. The opposite of current policy. Inflation has passed 45% this year already.

gruez 5y ago
>In an open economy, the money is printed from the public demand. The more demand, the more printing, the more inflation... Not really? Most developed countries have a central bank that "prints" money by doing interest rate changes, which in turn is determined by inflation rate targets.
- wwtrv 5y ago
  Still someone has to borrow the money for it to be “printed”/created so technically it’s correct.