[HN Gopher] Turkey's Financial Crisis
       ___________________________________________________________________
        
       Turkey's Financial Crisis
        
       Author : jseliger
       Score  : 99 points
       Date   : 2021-12-24 16:56 UTC (6 hours ago)
        
 (HTM) web link (adamtooze.substack.com)
 (TXT) w3m dump (adamtooze.substack.com)
        
       | darkhorn wrote:
       | In recent months it has appeared that some high ranking members
       | of AKP is taking over private businesses by arresting,
       | threatening or even killing the owners. Biggest media company in
       | Turkey was bought by Erdogan without spending a penny. They still
       | didn't pay. https://www.ft.com/content/3273aafc-4317-11e8-97ce-
       | ea0c2bf34... Also watch this one
       | https://www.youtube.com/watch?v=dvWOVToEmsA
        
       | kw-maller wrote:
       | Keep wondering if this is a panicking move or some weird long-
       | term strategy. Are there any benefits to what they're doing,
       | short- or long-term?
        
       | selimthegrim wrote:
       | Azerbaijan v. Georgia? To heal? Tooze is good but needs to hire
       | an amanuensis.
        
         | kingofpandora wrote:
         | Indeed ... that's a sizeable error and it jumped out
         | immediately. Hope the rest of the article is free of such
         | mistakes!
        
       | [deleted]
        
       | mrtksn wrote:
       | Erdogan pulled a huge pump and dump scheme a few days ago. He
       | kept repeating everything that makes the Turkish Lira weaker and
       | weaker, he and his government claimed that the plan is to lower
       | the lira and compete on price and the lira is not weak because
       | they failed but because that's the plan. We will be the next
       | China, they said.
       | 
       | Then on the night of Dec 20, he introduces a financial instrument
       | where the government offers %14 interest and guarantees to pay
       | the any difference if it happens that the lira devalues. With a
       | coordinated effort, government banks start selling $USD the whole
       | day and whole night when the markets are shallow and Turks are
       | asleep, selling off at least 7B$ of the reserves of the central
       | bank and who knows how much of other banks, lowering the $USD
       | from 18 the night Turks went to bed to 11 at the morning.
       | 
       | Look at that graph:
       | https://twitter.com/tashecon/status/1473065067914702852
       | 
       | Then they continued to sell off the national $USD reserves,
       | conducting a full blown media propaganda operation including
       | advertisement that is obviously produced at least days before the
       | event. Looking back, just the day before the stock market crashed
       | with %10 and there are rumours of certain businessman being
       | informed that the government will change it's stance and
       | intervene strongly.
       | 
       | Then we had the Economy minister bragging how they screwed up the
       | little guy who bought $USD at over 14 in an attempt to protect
       | their savings, adding that no institutional investors were harmed
       | in the process.
       | 
       | It's just a crypto-bros level of shake off organised and executed
       | by the government. They claim that the orthodox economists are to
       | be blamed for the losses, how silly they are for not accounting
       | for the government tricking the people. Imagine FED giving
       | guidance for interest rates decrease then out of the blue
       | dramatically increasing the rates at midnight once the pals of
       | the president position themselves correctly and saying that the
       | public shouldn't have listed to the economists.
       | 
       | At this very moment, Erdogan is having an "interview" that is
       | broadcasted by multiple TV channels and as expected they again
       | started selling off $USD as he began speaking, pushing the dollar
       | from about 12 to 10.
       | 
       | Take a look at that chart: https://imgur.com/a/CxYYfyL
       | 
       | That's %20 daily volatility.
        
         | wheelerof4te wrote:
         | The plan is to get rid of $US reserves and replace them with a
         | currency of some other country. Maybe China.
         | 
         | Bold move, and a smart one, considering the outright hostile
         | actions by the US towards the country. No dollar reserves,
         | means no more economic bullying by the US.
        
           | [deleted]
        
         | SilasX wrote:
         | Wow, that's bizarre. I don't recall governments ever
         | aggressively propping up their currency, usually they devalue
         | it as a silent tax or export subsidy.
        
         | bsanr2 wrote:
         | >Imagine FED giving guidance for interest rates decrease then
         | out of the blue dramatically increasing the rates at midnight
         | once the pals of the president position themselves correctly
         | and saying that the public shouldn't have listed to the
         | economists.
         | 
         | The Fed has done worse, just on a longer timescale. Alan
         | Greenspan may, in fact, be the devil.
        
         | janmo wrote:
         | I wonder how long their pump will last, their USD reserves are
         | now exhausted, their new savings plan will also cost a fortune.
        
           | darkhorn wrote:
           | They are going to continue selling land and military
           | companies to Qatar and other Arabs.
        
       | lvl100 wrote:
       | This is why you always hold real assets. And, no, crypto is not
       | real.
        
       | DSingularity wrote:
       | > The one thing that the central bank is not doing is raising
       | interest rates. This is at the heart of the entire crisis.
       | 
       | Okay am I missing something here? Europe has negative rates. The
       | US has negative rates. But when Turkey lowers rates from 19%
       | (!!?!!) to 14% it creates a "crisis"?
        
         | mghfreud wrote:
         | Until last year, US and Europe was desperately trying to raise
         | inflation. I do not remember any time in Turkish history when
         | this was the case.
         | 
         | Anyways, current Turkish PPI is >50% (and it will only increase
         | in coming months.). The real interest rate in Turkey is in far
         | negative territory compared to US and EU, where they are
         | desperate for inflation.
        
           | syshum wrote:
           | >> US ... was desperately trying to raise inflation.
           | 
           | Well good news, they succeeded beyond their wildest
           | dreams....
        
             | odonnellryan wrote:
             | Well. 7% inflation is not insane. Look at it over the last
             | 5 years. Average inflation is not crazy.
        
             | mghfreud wrote:
             | Right, but at least they said they know there is a problem
             | and they will address it. It is not like how it is in
             | Turkey where they said "inflation is high, let's decrease
             | it by printing far far more money and decreasing interest
             | rate further".
        
               | slaw wrote:
               | I am not aware that US government is going to address
               | inflation issues. Interest rate should at least match
               | inflation that is 6.8% and that is not going to happen.
        
               | skybrian wrote:
               | The Fed isn't doing that because it's an extreme change
               | that would wreck the economy. Or at least, so many people
               | believe. Why do you think you know better?
        
               | slaw wrote:
               | I only say FED doesn't address inflation. Not if it is
               | good or bad.
        
               | odonnellryan wrote:
               | They obviously address inflation. Why do you think they
               | do not?
        
               | syshum wrote:
               | Have they? because last I checked they (both the Tresury,
               | and The Fed) still insist that this inflation is
               | transitory, supply chain issue not their monentary
               | policy... (they investigated themselves and found they
               | did nothing wrong)
               | 
               | And they are still claiming government spending trillions
               | is not the cause, and will not create new inflation..
               | 
               | So no, I dont believe they have acknowledged the problem
               | at all, nor are they really going to address is. Sure the
               | fed says they will wind down their buying, and signaled
               | they might raise interest rates VERY VERY VERY minimally,
               | they are acting as if demand caused by supply chain
               | issues is the root cause
               | 
               | It is not
        
               | odonnellryan wrote:
               | They have taken actions in response to inflation....
        
         | skybrian wrote:
         | High inflation and low interest rates in Turkey means that
         | depositors there lose more money than they would if it were in
         | Euros.
        
           | mastax wrote:
           | Therefore people are discouraged from holding deposits, and
           | encouraged to spend Lira - exacerbating inflation.
        
         | lumost wrote:
         | there is a "natural" interest rate which is roughly what a
         | lender would expect to earn when lending to a reputable
         | borrower. The Federal Reserve/ECB may lend at a slightly
         | lower/higher rate than this natural rate - but going far away
         | from it leads to a crisis as the money supply becomes
         | distorted.
         | 
         | There is a big difference between lending at 0% when "natural"
         | interest is .25% and lending at 14% when natural interest is
         | 20%. If inflation is 18% you're effectively giving consumers 4%
         | return on borrowed money, which means everyone will borrow as
         | much money as they possibly can and use it to purchase goods.
        
           | jbay808 wrote:
           | > Lending at 14% when [...] inflation is 18%
           | 
           | In the US, inflation is nearly at 7%, while savings accounts
           | yield around 0.05%. Doesn't that mean Americans are
           | discouraged from keeping money in savings accounts about the
           | same amount as Turks are?
        
             | lumost wrote:
             | Quite possible that the US is going down the same route
             | Turkey is. The US has an entrenched financial system that
             | might take an extra 6 months to enter a crises.
             | 
             | The current belief is that the fed will manage inflation
             | appropriately, and that the 7% headline number will vanish
             | in a few months. Housing increasing 20% last year is a sign
             | that the same incentive is there, getting a mortgage at 2%
             | and then earning a free 5% interest is too good a deal to
             | pass up.
        
             | JumpCrisscross wrote:
             | > _Doesn 't that mean Americans are discouraged from
             | keeping money in savings accounts about the same amount as
             | Turks are?_
             | 
             | If you believe American inflation will remain there, yes.
             | Few do. (Also, the Fed is tightening.)
        
             | skybrian wrote:
             | Yes, it is discouraging. This is a reason why fixed income
             | investments are quite unattractive right now. But there is
             | a lag. After many years of low inflation many people
             | haven't changed habits yet. We still don't expect that much
             | inflation.
        
         | financetechbro wrote:
         | US does not have negative rates. Every other central bank would
         | raise interest rates with inflation at the levels we're seeing
         | in turkey. They problem here is that Turkey is doing the
         | opposite
        
           | LatteLazy wrote:
           | The US doesn't have negative interest rates, but with
           | inflation over 6% and rates at 1.25% that's a pretty big
           | negative _real_ rate...
        
           | halpert wrote:
           | They have negative real rates.
        
       | 1cvmask wrote:
       | I looked up the core values of Turkey. And their debt to gdp
       | ratio is 40%. Neighboring Greece is 200%. The Turkish economy was
       | the second fastest growing economy last year in the G20 and is on
       | pace to be the one of the fastest growing economies this year.
       | Turkey has had record exports and been one of the most successful
       | in tourism both last year and this year helping the current
       | account deficit. Yet bankrupt Greece can borrow at almost 1%
       | interest rate with over 200% debt-to-GDP ratio. Meanwhile there
       | is an unofficial blockade on international lending to Turkey from
       | the US and its cluster of allies/subjects. That is the real story
       | of the attack on the currency and the financial system. The US
       | did the same to Chile by undermining its economy and killing its
       | financial system before staging a coup (Obama attempt to kill
       | Erdogan and stage a coup in Turkey failed in 2016):
       | 
       | https://youtu.be/EYrznlDTE_M?t=7576
        
         | howmayiannoyyou wrote:
         | You're looking at the wrong metrics. Instead:
         | 
         | - Change in foreign reserves.
         | 
         | - Private debt to GDP, particularly denominated in EUR and USD.
         | 
         | - Turkish private bank debt to FX reserves, particularly
         | denominated in EUR and USD.
         | 
         | Turkey's problem is having to pay for inputs in EUR or USD and
         | interest payments in EUR or USD at the same time such reserves
         | and the ability to acquire such reserves are in decline &
         | increasing in cost.
        
         | LatteLazy wrote:
         | I don't really disagree but... Greece is backed by Germany so
         | they're a bad comparison. Without that backing they'd be Turkey
         | right now.
        
         | hoffs wrote:
         | Really quickly went from 0 to 100 at the end there
        
         | wheelerof4te wrote:
         | You are correct. What many here don't realize is that the
         | current financial system is directly tied to the wimps and
         | wants of the USA.
         | 
         | Speculation abounds at Wall Street, London stock exchange and
         | other western financial institutions. They are the ones
         | dictating the price of money, the exchange rates and asset
         | bubbles. They have the power to financialy attack any country
         | in the world that does trade in US dollars and euros (almost
         | all countries in the world). As we can see, even their "allies"
         | are not spared.
        
         | genousti wrote:
         | You are 100% true. But erdogan did buy russian weapons after
         | the us forbade him to buy american ones. Turkey disobeid the
         | american golem and must pay the price
        
         | jcfrei wrote:
         | Any source on that claim that Obama was behind the coup attempt
         | in 2016?
        
           | ahelwer wrote:
           | There are never any sources on these things until 20 years
           | after the fact. So we really don't know. But if you'd gone
           | ahead and assumed America had a hand in every coup in the
           | Western world over the past century, you'd at least have a
           | pretty good batting average.
        
         | mghfreud wrote:
         | Dept to gdp of Turkey is 40%, if you believe official numbers.
         | But they are not publishing numbers for dollar denominated
         | guarantees to PPPs.
         | 
         | This is only one of the many unpublished "dept"s.
         | 
         | The more the Turkish lira devaluates, the more the public has
         | to pay for the PPPs. Hence, when considering for
         | creditworthiness, you need to account for all, not a single
         | number.
        
         | forvelin wrote:
         | is this unexpected ? erdogan literally buys weapons from russia
         | as a nato member, allies with putin at every occassion and
         | disregards any civilized values. he'd like to squeeze
         | minorities as he wants, oppress the opposition as he wants and
         | ally with whoever he wants. at that point, people might not
         | want to cooperate with you, a bit of diplomacy eh ?
        
           | fpoling wrote:
           | Erdogan may use Putin when it suits him, but when the
           | interests no longer allies, he has no problems acting very
           | much against Russia wishes. Like it was in the recent war
           | between Armenia and Azerbaijan or when Turkey sells weapons
           | to Ukraine.
        
             | wheelerof4te wrote:
             | In the case of Armenia, the country was becoming a hotbead
             | of CIA activity. So Putin wanted to make an example of it.
             | 
             | Russia allowed Azeris to win that war, just to show Armenia
             | how vulnerable it is without Russian help. Plus, they now
             | have troops patroling along the border with Nagorno-
             | Karabah.
        
           | baybal2 wrote:
           | > erdogan literally buys weapons from russia as a nato member
           | 
           | After US refused to sell PAC 3 despite Istanbul pleading for
           | it since even before Erdogun
        
             | forvelin wrote:
             | istanbul does not plead for anything, ankara may though.
        
           | wheelerof4te wrote:
           | So, he is acting like a leader who puts his country first?
           | How is that bad?
           | 
           | If US doesn't want to sell weapons to Turkey, its NATO ally,
           | is Turkey supposed to give up and stay defenceless against
           | terrorists that attack its borders?
        
             | JumpCrisscross wrote:
             | > _If US doesn 't want to sell weaoons to Turkey_
             | 
             | America is happy to sell to Turkey. Turkey wants to dual
             | source. The U.S., reasonably, doesn't want its latest
             | stealth tech painted by Russian radars phoning home.
             | Sometimes playing the middle ground helps. Sometimes it
             | gets you a raw deal. In Turkey's case, the people are
             | losing.
        
               | wheelerof4te wrote:
               | US refused to sell Patriot missile system to Turkey. It
               | also refused to sell it's F-35 fighter jets _before_
               | Turkey formally requested to buy S-400 anti-air missile
               | system.
               | 
               | US knows that it cannot keep Turkey on a leash like it
               | can, for example, France or Greece. So it does not want
               | to sell it weapons, in case Turkey ever becomes a
               | "problem" (read too powerful to control).
        
               | JumpCrisscross wrote:
               | > _in case Turkey ever becomes a "problem" (read too
               | powerful to control)_
               | 
               | Is this honestly the line Turks are being fed? The
               | concern is Turkey becoming a failed state and terrorist
               | hotbed, for the U.S. and Russia, and a new migrant
               | source, for the EU. If Turkey could reliably project
               | force in the region, it would solve a lot of American
               | strategic problems.
        
               | wheelerof4te wrote:
               | "The concern is Turkey becoming a failed state..."
               | 
               | Of course, there is a real danger of that happening.
               | Turkey can indeed become a failed state...if USA attempts
               | another coup or color revolution.
               | 
               | Look, there are multitude of concurrent attacks, both
               | military (inside Syria by using Kurds/SDF) and economic
               | being made agains Turkey for it's failure to be a "good
               | NATO ally". I don't like Erdogan, and I care not about
               | what happens to him. Turks do, though.
               | 
               | Many people will die if Turkey turns into another Iraq,
               | Libya or Syria. And I don't want that to happen.
        
               | JumpCrisscross wrote:
               | > _if USA attempts another coup or color revolution_
               | 
               | The article this thread attached to is about home-grown
               | economic orbital bombardment. If the Anatolian elite can
               | keep the populace distracted by phantom foreign threats,
               | they'll succeed in extracting their wealth before the
               | house falls.
        
           | 1cvmask wrote:
           | The US has always put arms embargoes and blockades on Turkey,
           | even having formal ones in the 1960s and 1970s. The US also
           | arms the terrorists in Turkeys south to attack and terrorize
           | the country. According to CIA agent John Stockwell and others
           | they have been arming those terrorists since the 1970s on
           | Kissingers orders to attack Turkey. The US also refused to
           | sell defensive systems to Turkey under the Obama blockade.
           | The Turks bought it then instead from the Russians. Other
           | NATO countries also have both Russian weaponry and the
           | S-class defensive system like Greece, Bulgaria and Hungary.
           | Turkey is clearly not competent enough to build it itself
           | which is why it bought it.
        
         | [deleted]
        
       | baxtr wrote:
       | Just a question: would it have been a good idea for a Turkish
       | person, say, a year ago, to invest in stable coins to prevent
       | suffering from Lira depreciation?
       | 
       | PS: This is a sincere question...
       | 
       | EDIT: some are asking why not real Euros or Dollars? I was
       | thinking convenience and availability. I'm not sure if you could
       | just easily get dollars in Turkey.
        
         | TimVulcanus wrote:
         | Well you could if you are talking about usd stablecoin, but you
         | could have also simply buy another currency be it euro, US
         | dollar... as long as its value compared to the turkish lira was
         | greater.
        
         | theNJR wrote:
         | Turkey banned crypto https://fortune.com/2021/04/30/turkey-
         | crypto-ban-erdogan-cry...
        
           | 1cvmask wrote:
           | Fake news. Turkey has some of the most active crypto
           | exchanges in the world.
           | 
           | https://www.reuters.com/markets/us/exclusive-turkeys-
           | cryptoc...
        
         | mertd wrote:
         | What extra advantages do they get from stable coins over simply
         | walking to an exchange kiosk and buying Euro or USD?
        
           | dehrmann wrote:
           | Bonus: local merchants are going to get really used to seeing
           | those currencies soon.
        
           | latchkey wrote:
           | In $100 bills, the weight of $1 million is about 22 pounds.
        
         | halpert wrote:
         | Not just stable coins, holding many types of assets would help.
         | It's very common in many countries to hold savings in US
         | dollars to avoid domestic currency fluctuations. Stable coins
         | may be a convenient way to do achieve this goal, but also has
         | counter party risk with the coin issuer.
        
         | dehrmann wrote:
         | Why not dollars, pounds, or euros?
        
         | deeviant wrote:
         | > Yust a question: would it have been a good idea for a Turkish
         | person, say, a year ago, to invest in stable coins to prevent
         | suffering from Lira depreciation?
         | 
         | > PS: This is a sincere question...
         | 
         | No.
         | 
         | PS: This is a sincere answer.
        
         | dehrmann wrote:
         | Nit: buying currencies shouldn't be an investment, but it can
         | be speculation or a hedge.
        
         | AlexCoventry wrote:
         | Why not straight-up crypto? Ethereum is up 647% from a year
         | ago.
        
           | sdasdasczxcxzc wrote:
           | Crypto is especially known for stability.
        
             | trophycase wrote:
             | More stable than the lira at this point
        
               | kingofpandora wrote:
               | Define stable.
               | 
               | The poster above you stated that his/her $100 investments
               | are now worth after 1 year:
               | 
               | > ETH: $899.22 (+799.22%), BTC: $320.77 (+220.77%)
               | 
               | The Turkish lira hasn't changed nearly that much in
               | value.
        
           | latchkey wrote:
           | I did a "dumb" crypto experiment to prove your question.
           | 
           | Just over a year ago (Nov 2020), I bought $100 of BTC and
           | $100 of ETH... on Paypal of all places. Didn't touch it at
           | all.
           | 
           | Today, it is worth $1221.37 (+510.32%).
           | 
           | ETH: $899.22 (+799.22%), BTC: $320.77 (+220.77%)
           | 
           | You're right mentioning ETH over BTC. =)
           | 
           | My plan is to donate this to charity.
        
         | [deleted]
        
       | aaron695 wrote:
        
       | marsven_422 wrote:
        
       | grouphugs wrote:
        
       | Andrew_nenakhov wrote:
       | The worse crisis Turkey has now, the better it is for its future.
       | The policies of a charismatic autocrat must publicly and
       | catastrophically fail, vaccinating the country against such types
       | and returning the county on the secular track.
       | 
       | In democratic countries, people can rebuild from any crisis, so
       | any dark period is temporary. In theological autocracies darkness
       | has no end, and future gives no hope.
        
       | markvdb wrote:
       | Large movements, high volume, in currency not stock. The powers
       | that be know the direction. How difficult could it be for them to
       | make piles of money out of this? How difficult would this be to
       | cover up?
       | 
       | I'm not very familiar with the mechanics of forex markets, but
       | I'm fairly certain that a small circle of well-connected people
       | has made a killing out of this. Which raises a question...
       | 
       | To what extent was plain and simple greed part of the motive for
       | setting up this unorthodox policy? Insider trading.
        
       | hereforphone wrote:
       | Erdogan claims that lowering interest rates to zero or near zero
       | is more in line with Islamic principles, which may be true
       | (according to interpretation of Islamic principles, I assume).
       | This is a bold move that reinforces what was already suspected:
       | he is continuing to solidify his power by appealing to Islamic
       | sympathies.
       | 
       | During the recent coup calls to resist the belligerents were
       | broadcast over mosque loudspeakers and throats were being slit in
       | the street. Praises to Allah could be heard.
       | 
       | Ataturk strengthened Turkey by moving it away from the regional
       | Islamic influences. He changed the alphabet and implemented laws
       | to guide Turkey toward a secular culture. Islam was acceptable
       | (as Turkey was attempting to be a "free" republic), but not
       | compulsory.
       | 
       | If Erdogan continues to mold Turkey's future Turkey will soon
       | look more like Syria in terms of culture, and less like Western
       | Europe, which it recently did.
        
         | midasuni wrote:
         | Paradox of tolerance.
        
         | smnrchrds wrote:
         | > _Islam was acceptable (as Turkey was attempting to be a
         | "free" republic), but not compulsory._
         | 
         | Until Erdogan overturned it, there was a ban on women wearing
         | hijab (the head covering , that the vast majority of Muslims
         | consider a basic tenet of their religion) in universities in
         | Turkey. I leave the judgment to you, but personally I wouldn't
         | consider asking millions of people to choose between adhering
         | to their religion and getting a higher education to be treating
         | their religion as "acceptable, just not compulsary".
         | 
         | https://www.bbc.com/news/world-europe-11880622
        
           | hereforphone wrote:
           | I don't disagree with you but I'd like to provide some
           | context for how things have shifted, for others reading this
           | thread. The current headscarf culture in Turkey, as I see it.
           | 
           | The head coverings (various kinds) are associated with
           | modesty. They are often fashionable modesty (?!) in Turkey
           | now, as Armani and others advertise cutting-edge, expensive
           | headscarfs. Some women are using them as a status symbol.
           | They can also be used to signal pro-Erdogan, pro-Islamist (in
           | a government sense) sentiments.
           | 
           | Now, a woman not wearing a head covering (very many do not)
           | may be called a slut by women wearing them. Rare perahps, but
           | these things happen. There is often a palpable tension
           | between the groups of women who wear them, and the groups of
           | women who do not. It is as I said often a political symbol.
        
           | Andrew_nenakhov wrote:
        
             | Cyph0n wrote:
             | And the solution to that imaginary problem is.. to ban all
             | women from wearing hijab? Excellent logic.
        
               | Andrew_nenakhov wrote:
               | Of course, male from Saudi Arabia claims that this
               | problem is imaginary. What a surprise. /s
               | 
               | Just because you decided to consider this problem
               | imaginary, it does not mean that this problem does not
               | exist in the real world, bringing suffering to millions
               | of disenfranchised women.
        
               | Cyph0n wrote:
               | Wow, you're completely off the mark, buddy! But nice try
               | with the amateur OSINT haha.
        
               | istinetz wrote:
               | Well, yes. What solution do _you_ propose? Mass
               | propaganda? Perhaps possible in 2021, but it wouldn 't
               | have been as effective in the 1930s.
        
               | Cyph0n wrote:
               | Why did you use the word "propaganda"? Why not
               | "education"?
               | 
               | Regardless of the time period, I would simply propose
               | focusing on _educating_ current and future generations
               | that men and women have equal rights.
               | 
               | If you dig into history a bit, you'll find that state-
               | sponsored persecution - ethnic, religious, or otherwise -
               | is almost always guaranteed to backfire in the long run.
        
               | worik wrote:
               | But what is the problem?
               | 
               | It may have a religious origin but a headscarf is a
               | fashion accessory. Like trousers or shirt buttons. We
               | could ban them too, just for fun!
               | 
               | Up with skirts! Down with trousers!
               | 
               | See? What fun!
        
             | throwaway123x2 wrote:
             | lol this is so patently false. in a family very close to
             | me, the husband would very much like his wife to wear not
             | hijab and his wife tells him to mind his own business. both
             | are muslim.
        
               | Andrew_nenakhov wrote:
               | Tell it to this girl [1], or this [2] girl. You won't be
               | able to tell it to this [3] girl, because she killed
               | herself, rather than submitting to this barbarity.
               | 
               | If you have some anecdotal example of a person who does
               | this willingly (likely because of systemic
               | multigenerational indoctrination), it does not prove that
               | many other women are not willing to submit to this
               | requirement, yet, are powerless to resist it without
               | having to face severe consequences.
               | 
               | [1]: https://www.bbc.com/news/world-middle-east-56085734
               | [2]:
               | https://www.dailymail.co.uk/news/article-1348389/Muslim-
               | woma... [3]: https://english.alarabiya.net/News/middle-
               | east/2013/07/17/Eg...
        
               | worik wrote:
               | Because you can come up with people being psychotic
               | monsters, it does not mean people are psychotic monsters.
               | 
               | There are a lot of barbaric things that go on in families
               | all over the world in all sorts of families. What exactly
               | is your point?
        
           | Cyph0n wrote:
           | Yep. A lot of people seem to - willingly or unwillingly -
           | ignore the dark side of Ataturk's revolution. The fact of the
           | matter is that nothing in the real world is ever as rosy as
           | you would like it to be.
        
           | Bayart wrote:
           | I would feel extremely comfortable banning those head
           | coverings from all universities, if not all public venues.
           | Religious vestment simply has no place outside of ritual
           | occasions. But then again, I'm from the country Ataturk took
           | after. From our point of view, allowing religion to _exist_
           | is treating it with tolerance. Acknowledging religion as
           | something that deserves any sort of deference by the State
           | isn 't acceptable. And I say that as an otherwise religious
           | person myself (don't take it as the stance of some rabid
           | atheist).
        
             | smnrchrds wrote:
             | > _I would feel extremely comfortable banning those head
             | coverings from all universities, if not all public
             | venues...From our point of view, allowing religion to exist
             | is treating it with tolerance._
             | 
             | If saying "either stop adhering to your religion or you
             | cannot go to university/exist in public" is tolerance, what
             | is intolerance? Is everything short of prison, internment
             | camps, torture, and execution tolerance in your point of
             | view?
             | 
             | Also, if a government tells religious people "we are going
             | to make your life very difficult, but you should really be
             | thankful to us that we are not outright destroying you",
             | they should not be surprised when they don't end up being
             | thankful and instead vote for the other guy. That's one of
             | the reasons Erdogan is now in power.
        
               | Bayart wrote:
               | The assumption that asking for the removal of what is
               | essentially discriminatory somptuary laws amounts to
               | asking for apostasy is your own. Internal religious
               | regulations have no bearing on the law and whether or not
               | they're essential to religious practice is of no
               | consequence to civil society. Keep in mind I'm referring
               | to a system where universities are public institutions,
               | emanations of the State, rather than private foundations
               | as is usually the case in the US.
        
               | worik wrote:
               | Why would your secularism turn you into fashion police?
               | 
               | Why cannot a person wear a headscarf (it does not obscure
               | their mouth or eyes so does not inhibit communication) if
               | they want to? For what ever private reason they feel they
               | want to?
               | 
               | I know people who wear them for non-religious reasons.
               | Will they be exempt from your rules about fashion?
               | 
               | People get told all the time that what they wear is
               | unacceptable by others in power, and it is an abuse of
               | power. This is particularly true for women and a
               | "headscarf" ban another example of blatant misogyny.
               | 
               | What is particularly offensive is it is said it is one
               | for "liberating" those women. Often (usually not always)
               | it is non Islamic people lecturing Islamists.
               | 
               | The fight against misogyny in Islam is a fight for
               | Islamic women. When there is a cry from Islamic women for
               | non-Islamists to set fashion laws for Islamic women to
               | obey (and not just the odd lone voice) then maybe,
               | possible you might have a point. Is that ever going to
               | happen?
               | 
               | I do not think that Islamic women need misogynist,
               | sexist, Islamophobic, theophobic, bigoted, and
               | patronising rules and punishment. To liberate them, no
               | less! Perhaps they need the opposite
        
             | radycov wrote:
             | >> Acknowledging religion as something that deserves any
             | sort of deference by the State isn't acceptable.
             | 
             | What next, enforce a communist uniform on everyone and
             | strictly control their freedom to express their thoughts?
             | Do you realise how ludicrous you sound? I note you're
             | French and your religious expressions laws are not made in
             | the name of secularism, rather specifically intended to
             | discriminate against a sizeable minority.
             | 
             | Presumably your also include a Christian Cross necklace?
             | What about a symmetric cross that's visibly a cross but not
             | a traditional cross? A cross at an angle?
             | 
             | You're entitled to express your point of view, of course,
             | but please be more convincing and informed than a
             | nationalistically ideological charlatan (how ironic).
        
               | Bayart wrote:
               | >What next, enforce a communist uniform on everyone and
               | strictly control their freedom to express their thoughts?
               | Do you realise how ludicrous you sound?
               | 
               | You're making leaps in logic that don't make sense to me.
               | You're the one being ludicrous, as far as I can tell.
               | 
               | >I note you're French and your religious expressions laws
               | are not made in the name of secularism, rather
               | specifically intended to discriminate against a sizeable
               | minority.
               | 
               | At the time those laws were made, the absolute majority
               | of the country was made of church-going Catholics. That
               | _at the present day_ they 're mostly invoked in relation
               | to a religious minority doesn't make any difference.
               | 
               | > Presumably your also include a Christian Cross
               | necklace?
               | 
               | Sure.
               | 
               | > What about a symmetric cross that's visibly a cross but
               | not a traditional cross? A cross at an angle?
               | 
               | Is it a token of belonging to a religious organization ?
               | If so, keep it private. I don't see what's complex about
               | that.
               | 
               | > You're entitled to express your point of view, of
               | course, but please be more convincing and informed than a
               | nationalistically ideological charlatan (how ironic).
               | 
               | I'm informed about the political and religious history of
               | my own country, and as such transversely familiar with
               | the framework Ataturk tried to put in place in Turkey.
               | I'm less familiar with the ways it started breaking down.
               | And frankly, you're not in any position to demand better
               | argumentation on my part if you're not doing as much
               | yourself.
        
             | femiagbabiaka wrote:
             | Allowing people to dress how they please is hardly
             | deference.
        
         | beebeepka wrote:
         | Heh. I wasn't aware religious beliefs include monetary
         | policies. I just hope they don't start another war out of
         | desperation.
        
           | hereforphone wrote:
           | One big concern is that Erdogan will likely hold on to power
           | however he can. He's already circumvented the constitution
           | (and changed electoral law). I believe he will fight to
           | maintain his reign if necessary. He has about 50% of the
           | country behind him, and as far as I can tell the allegiance
           | is based on religious principles, which makes it a strong
           | allegiance indeed.
        
             | 1cvmask wrote:
             | Donald Trump only won 46.1% of the vote in 2016 and that
             | was enough. In fact no one got over 50%. Hillary Clinton
             | had a plurality with 48.2%
             | 
             | https://en.wikipedia.org/wiki/2016_United_States_presidenti
             | a...
             | 
             | In England David Cameron had a parliamentary majority with
             | only 38% of the vote.
        
               | adventured wrote:
               | That's actual voters of course, a subset of how many
               | people support a candidate or President in the US. The
               | parent has no idea how many people support Erdogan (the
               | claimed 50%), nobody does. It's just a guess in the wind
               | (if it's 42% that's a massive difference from 54%, as to
               | whether Erdogan remains standing). Like trying to guess
               | how many Russians really support Putin's dictatorship.
               | Getting honest answers on such questions is quite
               | difficult, as is accurately polling in nations the size
               | and complexity of eg the US, Russia or Turkey.
        
               | eynsham wrote:
               | In England in 2015, Cameron had 40.9% apparently
               | (https://www.statista.com/statistics/717022/general-
               | elections...). The point still stands--he had far more
               | than 40.9% of English seats!
               | 
               | On the other hand, the Turkish electoral system can fail
               | even more bizarrely than a simple single-member
               | constituency FPTP system--in 2002, only the CHP and AKP
               | cleared the 10% threshold, so the AKP had  2/3  of the
               | votes.
               | 
               | However, at the moment, the president is directly
               | elected, so anything <50% wouldn't suffice. (How those
               | votes are obtained, of course, is another matter.)
        
           | thatguy0900 wrote:
           | Many religions have laws about interest and usury. Catholics
           | were unable to lend with interest between each other for a
           | very long time. I suppose it's not a stretch to say if a
           | person can't charge interest the government shouldn't be
           | doing it either.
        
             | beebeepka wrote:
             | Your last sentence makes sense
        
         | DSingularity wrote:
         | Throats were slit? I never read that.
         | 
         | If you believe in democracy you would celebrate the failure of
         | a coup. Even if you hate the surviving leader, you ought to
         | prefer defeating him within the frameworks of democracy.
         | 
         | You seem to really dislike Muslim culture. If the people of
         | Turkey want their culture to closer to that of Syria instead of
         | Germany, what's the problem?
        
           | luckylion wrote:
           | > If you believe in democracy you would celebrate the failure
           | of a coup.
           | 
           | That depends, I suppose. Hitler was democratically elected.
           | Hard to say what might have happened, had one of the many
           | plans to assassinate him had worked, but I'm not sure we'd
           | look at it retrospectively as an attack on democracy.
        
           | nickff wrote:
           | > _" If you believe in democracy you would celebrate the
           | failure of a coup. Even if you hate the surviving leader, you
           | ought to prefer defeating him within the frameworks of
           | democracy."_
           | 
           | You are supposing that the once freely-elected leader will
           | permit a reversion to 'free' democracy. In fact, rigged
           | elections form the basis of stable autocracies. Outright
           | juntas and dictatorships are actually more likely to
           | transition to 'free' democracies.[1]
           | 
           | [1] https://en.wikipedia.org/wiki/The_Logic_of_Political_Surv
           | iva...
        
           | wheelerof4te wrote:
           | Westerners think that their culture is the greatest of all
           | time, how could you not accept it? They are even exporting it
           | together with their bombs and missiles in case you don't
           | comply /s
           | 
           | But seriously, if their "culture" consists of gender
           | theories, Holywood movies, superhero novels and the like,
           | they can keep their culture.
        
             | lostlogin wrote:
             | You've picked a subset of a subset of a subset.
             | 
             | There is a little more to it than that, and a similar style
             | summary of your preferred culture would be pretty dark.
        
           | ardacinar wrote:
           | I remember there was an instance of a soldier being beheaded
           | on the Bosphorus bridge. Not sure about the plural though
        
           | grenoire wrote:
           | The problem is that people suffer the transition's
           | consequences.
           | 
           | The current state of affairs has driven a _rather large_ part
           | of the country 's population, who share Western ideals and
           | want to pursue them for their nation, prefer a coup over
           | whatever this ongoing messy loss of wealth and human capital
           | is (certainly not 'democracy,' though). That should be
           | telling, but it's hard to have Westerners empathise, I guess?
        
         | wheelerof4te wrote:
         | Syria was a prosperous and deeply secular country, with many
         | cultural sites dating back to the ancient world. At least it
         | was until imported wahabbi terrorists from you know where
         | started to split the country up, turning parts of it into a
         | Islamic State caliphate.
         | 
         | Today, Syria is being plundered by the same countries that
         | helped the terrorists sell the stolen oil. We all know which
         | country smuggled truckloads worth of oil then, and which
         | country does the same now.
         | 
         | Comparing Turkey's and Syria's cultures is like comparing an
         | ugly frog to a beautiful marmaid.
        
           | hereforphone wrote:
           | They fall like dominoes. Where does the chain lead?
        
           | justicezyx wrote:
           | That country is Russian, right? Or Saudi Arabia?
           | 
           | I am not very familiar with Syria situation. Purely a honest
           | question.
        
             | lucian1900 wrote:
             | Saudi Arabia as the direct source of Wahhabis, with the US
             | funding and arming them.
             | 
             | Russia has been supporting the secular Syrian government.
        
               | AnimalMuppet wrote:
               | I fail to see how the US is funding the Saudis. Arming,
               | maybe. Funding? Not so much.
        
               | lucian1900 wrote:
               | The US funds Wahhabis all over the world, from Syria to
               | Kosovo to Iraq to Xinjiang.
        
               | objektif wrote:
               | Not necessarily Saudis but the so called "rebels". Turkey
               | openly aided ISIS and other violent rebels in the region.
               | I can tell you Turkey did not do this alone as a Nato
               | member.
        
               | finikytou wrote:
               | and turkey host more than 3 millions syrians. how many
               | the US do after starting the war?
        
               | finikytou wrote:
               | ask the clinton fundation
        
             | HideousKojima wrote:
             | Saudi Arabia. Russia supports Assad and has no interest in
             | destabilizing the country because they want to maintain
             | their naval base at Latakia etc.
        
               | sudosysgen wrote:
               | Turkey is at least as much at fault as Saudi Arabia. They
               | literally straight up pay salaries to wahabbi terrorists.
               | The US also financed a lot of them.
        
               | worik wrote:
               | > They literally straight up pay salaries to wahabbi
               | terrorists
               | 
               | Really? I did not know that. Have you a source?
        
             | SuoDuanDao wrote:
             | The Syrian conflict, though deliberately obfuscated, was
             | probably primarily a conflict between Russia-backed Iran
             | and US-backed Saudi Arabia. Wahabism is an arm of the
             | latter.
        
               | objektif wrote:
               | Well you conveniently skipped another very important
               | country in the region.
        
               | lostlogin wrote:
               | For those of us interested but less informed - could you
               | name the country directly?
        
               | throwaway123x2 wrote:
               | It's a different axis. The Turks are fighting the Sauds
               | for influence in the Islamic world, while the Sauds are
               | fighting the Iranians in their imagined Shia vs Sunni
               | conflict.
        
               | melony wrote:
               | The one in the title post.
        
             | pphysch wrote:
             | Northeastern Syria (major agriculture/oil region) has been
             | actively occupied by USA for the better part of a decade.
             | Turkey occupies Northwestern Syria (Idlib) along with US-
             | backed HTS.
             | 
             | Arguably the only reason Syria didn't collapse like
             | Libya/Iraq is because Russia was there to balance against
             | US interests.
        
             | wheelerof4te wrote:
             | Russia is invited by the government to help in the fight
             | against wahabbi terrorists imported from Saudi Arabia and
             | Turkey.
             | 
             | Turkey used to smuggle Syrian oil, but today that "job"
             | belongs to the USA.
        
             | sudosysgen wrote:
             | Turkey and Saudi Arabia.
        
         | forvelin wrote:
         | It has nothing to do with religious beliefs, its all about
         | gathering capital on his side. He is just abusing peoples'
         | religious beliefs. Everybody knows the new savings scheme he
         | introduced is essentially increasing interest rates.
         | 
         | Contrary to popular belief, I do not think that Erdogan will
         | continue to mold Turkey's future. So far Turkey always had
         | 40-50% opposition which could not unit, but now they are all
         | united and next time it is certainly going to tip the scale in
         | the right way. He will do everything to delay the elections or
         | call them at the right time -like now ?- but his plans don't
         | always work out -not far, look to recent Istanbul elections he
         | lost.
        
           | 1cvmask wrote:
           | He lost all three of the biggest cities of Istanbul, Ankara
           | and Izmir. Yet his coalition actually increased their total
           | votes in the municipal elections by getting more votes in
           | other cities.
        
           | [deleted]
        
           | costac wrote:
           | > Everybody knows the new savings scheme he introduced is
           | essentially increasing interest rates.
           | 
           | This is not true. Raising interest rates would mean raising
           | the cost of funding for the banking system. Under the new
           | saving scheme, since the Treasury pays depositors the extra
           | yield, the cost for banks remains unchanged. As does the
           | marginal cost of borrowing from the central bank.
           | 
           | The new saving scheme is a free dollar call sold by the
           | country's Treasury to depositors. And it will pay it out by
           | printing money.
        
             | mghfreud wrote:
             | Borrowing cost for both companies and individuals increased
             | substantially this week. Yes, it is true.
        
               | costac wrote:
               | Borrowing costs increased independently of the new
               | savings product. They were rising well before it was
               | announced and increased further because the market priced
               | in a higher level of inflation following the sharp
               | depreciation.
               | 
               | The higher rate on deposits that the new saving scheme
               | offers doesn't increase funding costs for banks in
               | anyway. The Treasury literally pays the depositors the
               | extra yield, not the banks.
        
               | mghfreud wrote:
               | Does it matter if it is direct result or second order?
               | 
               | BTW, this week, the interest on private loans increased
               | substantially, not gradually.
        
               | costac wrote:
               | Independent is very different from second order.
               | 
               | And, yes I know interest on loans increased substantially
               | but that has nothing to do with the new saving product
               | and everything to do with the meltdown in the lira that
               | preceded.
               | 
               | Edit: And in any case why would banks raise loan rates if
               | they don't have to bear the cost of the new product?
        
               | mghfreud wrote:
               | You are asking the correct question, it does not matter
               | if the cost is financed by banks or public. The cost of
               | borrowing increased substantially, even though exchange
               | rate decreased in the last one week.
               | 
               | Access to TL got harder by the actions of the government.
               | This is why interest rates increased.
        
               | costac wrote:
               | Of course it matters. If banks bare the cost, they have
               | to pass it on to their customers by raising rates. If the
               | public pays for it, the government and central bank will
               | end up printing money --one way or another -- to pay
               | depositors.
               | 
               | And all this mind you only IF people move a substantial
               | amount of their lira deposits to the new product AND the
               | lira depreciates more than the rate on the underlying
               | lira deposit account (only then are savers eligible for
               | the kicker rate).
               | 
               | So far, savers have moved around 10b liras into this
               | product, out of a total 4.3 trillion lira of deposits.
               | 
               | You're telling me banks raised rates because of that
               | marginal shift? And even though, I repeat, they don't
               | have to pay for it?
        
               | mghfreud wrote:
               | I am saying that the government raised interest rates
               | substantially, one way or the other. It used couple of
               | tools to do it, one of them is promising expected dollar
               | appreciation as interest. (Tl is expected to depreciate
               | at least at the rate of inflation, which substantially
               | higher then central banks overnight rate, hence they have
               | increased interest)
        
             | howmayiannoyyou wrote:
             | > printing money
             | 
             | Something it cannot do without increasing its own borrowing
             | costs, and reducing the import purchasing power of its
             | currency. This has been tried and doesn't work:
             | https://en.wikipedia.org/wiki/Black_Wednesday
        
               | selectodude wrote:
               | Anybody with even a cursory knowledge of macroeconomics
               | knows it won't work. Erdogan just doesn't happen to be
               | one of those people. It's tragic.
        
         | csomar wrote:
         | Erdogan is a Ottoman and not an Islamic leader. He is using
         | Islam to reach his goals but he is not married to it. He'll
         | move away from Islam as soon as it no longer serves his
         | purposes.
        
           | justicezyx wrote:
           | Even a fictional character, Paul Atriades, knows that
           | religious zeal is a beast that cannot be contained. I am more
           | inclined to believe that as a skilled politician erdogan
           | should be well versed in history and politics to see that
           | danger. And I believe that he indeed is a believer of Islamic
           | religion.
        
           | midasuni wrote:
           | But will the country. Like other populists found out, once
           | you unleash the beast you have a job on taming it again
        
             | csomar wrote:
             | Islam is flexible. He'll bullshit his way out of it. Seen
             | it first hand. Also most of his target countries for
             | influence are already Muslim Sunni. So that should work
             | out.
        
           | hereforphone wrote:
           | What is an "Ottoman leader"?
        
             | csomar wrote:
             | Basically he still believes in the Ottoman empire and that
             | his country should turn into a super-power that controls
             | the Mediterranean. Many Turks share this idea, too.
        
             | throwaway123x2 wrote:
             | Essentially a Turk first and then a Muslim. Ottoman because
             | it allows him to project hegemony because the Ottomans were
             | the last Islamic "Caliphs".
        
       | throwaway123x2 wrote:
       | Can anyone cite Muslim economists or theorista who endorse
       | Erdogan's scheme? A vague "we don't do interest because Islam
       | bans usury" hardly sounds like good policy. What is the Islamic
       | alternative to the current macroeconomic framework?
        
       | pmayrgundter wrote:
       | Nice up-to-date overview of Turkey/US relations:
       | 
       | https://sgp.fas.org/crs/mideast/R44000.pdf
        
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