Why Turkey's Currency Just Collapsed: The Lira Economic Crisis - TLDR News

  • 🎬 Video
  • ℹ️ Description

So over the last few weeks (months and years) Turkey's currency, the Lira, has collapsed in value. This is bad on its own, but combined with huge inflation and it's a recipe for disaster. So in this video we explain how Turkey found itself in this situation and what it means for President Erdogan and his theory of Erdonomics.



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💬 Comments on the video
Author

I live in Turkey. I'm actually an English teacher in a government school. Everytime the teachers have a break, the only thing being talked about is the economy, Erdogan, foreign currency etc. I feel suffocated even hearing about those things everytime, everywhere I go. Barbers, grocery stores, schools, bus stops. I've been a teacher for 2 years so I didn't have much time to save money for anything. I was saving to get my first car 'till 3 months ago. At that time dollar was 8 TL and Euro was around 10. Now dollar have passed 13 and euro 15. At the time I started saving money, the car I wanted to buy was an 2004 Audi A3 and it was around 90000 Turkish Liras. (I earn around 5500 a month). Now the car is 150000 Liras thanks to inflation and I earn around 4600 TL(around 330 dollars ). All my saving are gone trying to pay bills and such... Think about it. You study 16 years of your life and you can't even afford a 2000 model car..

Author — Ayberk Yeşil

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The 20% you quoted is the official figure. There are Turkish economists that say the actual inflation rate is 58%.
I moved here in 2016 at 4tl-£1, now it's nearly 17tl-£1. It's mad!

Author — tidge879

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Erdogan is a master expert economist who’s rewriting the world theory of economics, according to him. 🤣

Author — Chris X

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If there's one thing that Erdogan has shown it's that he's perfectly willing to stage or help steer major events to suit his political needs. He has a laundry list of things to choose from to distract people from the economy again in early 2023: it would not surprise me to see another coup attempt, some kind of Kurdish terror attack, a spat with Russia over their support for Ukraine/Azerbaijan, orrrr even an issue US over NATO membership. Anything to rally support behind AKP.

From what Ive read, and judging from his past behavior, this is practically guaranteed. Erdogan will not go down without a fight.

Author — MrChronicpayne

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20% inflation is just the official data which almost no one in Turkey trust. (about 80% of the population does not belive those figures are true). Because of that an independent group of academics calculates inflation by themselves (ENA Group) and they calculated the yearly inflation as about 50%.

Edit: These independent group announced new numbers for the month November. it's 58%

Author — ugrasergun

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i have been in turkey recently (2 weeks ago) and one year ago. During this small time frame i could see such a difference in the mood of the people. I feel really sorry for the turks having such an incompetent leader ... and i feel sorry as a german, since many turkish dual citizens living here voted him into power, without facing the results of his politics.

Stay strong people of turkey. And probably its not he worst idea to go into something that keeps its value if you wanna safe, like gold/silver and/or crypto.

Author — DrarosK

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I am Greek and what's happening in Turkey makes me really sad. I hate Erdogan and his warmongering party with all my heart, especially for what they're doing to the common Turkish people. Watching hundreds of people queue for a cheap loaf of bread, that's not how it supposed to be man. I hope to see Turkish people prosper once again in peace and Erdogan being punished for his hubris.

Author — altrogeruvah

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Erdogan has lost it. As many autocrats, Erdogan was overwhelmed by his power over time. Today he is convinced that he knows better than all experts. He sees sinister forces fighting against him, his majesty. In fact, his wrong belief in low interest rates to be good against inflation is getting stronger with raising criticism. This will get very bad, eventually.
Erdogan is a proof for the basic fact that democracy and separation of power is just better then almighty strongmen in charge

Author — Frank Neser

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Turkey's problems are self inflicted - there are consequences for government policies that should not have been ignored. Political considerations should be made with the economy in mind.

Author — nrich51

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I find it so terrifying this inflation business. Politics aside, I can't help think about millions of average families just trying to live, and in comes massive inflation to wipe out your savings and any plans of relative comfort. :'(

Author — Gregory A.T.

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Turkey's crisis is so self-inflicted it's frustrating.They have the blessing of geography, healthy demographics, strong industrial & agricultural sector, an A level metropolis(Istanbul), sizable military(2nd largesg in NATO), domestic manufacturing. Erdogan has misplayed all those advantages and has let Turkey's only disadvantage- energy/raw materials foreign dependence to outshine everything else.He's eroding all democratic checks and balances, cripple judicial separation from the executive power, purge public officials in the name of 'domestic terrorism'.After 2016 failed coup attemp, Erdogan has gone all Putin- style. Bring Russians to crucial turkish investment projects like the Akuyu nuclear power plant, the S-400 purchase and now they talk about joint production of Sukhois. I believe Turkey will ally with Russia & China in the near future, they already try to resolve existing issues and share influence(see Caucasus & Central Asia), the only BIG withstanding issue is Syria. If Russia & Assad commit to eliminate Kurds then Turkey will make peace with them too. Also, Turkey has influence over the Turkic peoples residing mainly in Russia and to a lesser extent China.

Author — Al Morcos

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I lived in Turkey for a year and it was one the best times I had in my life, the food, the culture the people but man when it comes to the uncertaintiy caused by economics and constant lira freefalling it creates this uneasy feelin sometimes you can feel it ine the air...
most of my Turk friends don't even have saving and all of them have loans, one even sold her car coz she cannot keep up with the gas prices.
Yet you see the military trying new high tech missiles in Northern Iraq or Libya
Hope something good will happen coz the Turks deserve better than constantly living in fear of going bankrupt

Author — Aymen Fayçal

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I'm under the impression that sanctions against Iran played a big role in Turkey's economic growth as the country basically plays the role of a transit port for goods and money into Iran. A huge number of businesses in Iran are simply buying goods in Turkey to resell in Iran (because they can't be imported directly into Iran) and I guess a big part of the stuff imported into Turkey are not destined to the Turkish markets. Thoughts?

Author — Hussein Bonaud

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As a Greek i know what the ordinary Turkish citizens is going through stay strong

Author — Dimitrios Zagreas

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Turkey has a great geopolitical position, it’s actually really hard to fuck up its economy this badly

Author — Johnny

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"What's behind Turkeys economic flaws?"
Easy, the president.

Author — Vlkn.TR4L

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When you have a collapsing currency like that, interest rates are pretty much irrelevant. Safest thing to do is get out of the currency entirely. Not even a good idea to borrow and convert it into assets or other forms of money because of the volatile inflation and interest rates, it could easily backfire on you.

Author — Chris

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I think Erdogan is Greece's greatest ally.

Author — STBiLL

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As a Turk, this is the most deppressing thing ever. With %60 of my portfolio I was able to hit %52 profit in Turkish stock market for 2021. He literally single handedly deleted all my gains in Stock market with one stupid move. Be thankful if you are living in western economy. These populist guys are just pain in the...

Author — Mehmet Öztürk

Author

I remember visiting Turkey as a tourist some 30 years ago. At that time you had to change money daily because the Lira depreciated every day. Some shops even priced their wares in USD.
If you don't learn your history, it will repeat itself. This is what's happening.

Author — ThewayICit