Turkey's Economic Crisis Gets Worse: Why They Want Your Gold - TLDR News

  • 🎬 Video
  • ℹ️ Description

Turkey has been going through a financial crisis for a while now, but the latest development is maybe the weirdest, with President Erdogan wanting to buy up your gold. So in this video we explain what's been happening and why gold is crucial to Turkey's financial plans.




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💬 Comments on the video
Author

It just breaks my heart to see a whole nation is going broke for the stubbornness of a single man. It sucks to live in a country where the economy is constantly unstable because of the government's hostile attitude.

Author — Mohammed Amayri

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So their brilliant plan is to purchase citizens' property which has real-world value (Gold) in return for their fiat currency. Yeah, THAT's not a total scam....

Author — NLTops

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Wow, our inflation isn't good, but at least, as far as I know, our government isn't trying to make it worse.
I wish you guys good luck from across the border.

Author — Bulgarian Production

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I live in Turkey, there's no way that my mother in law is selling her gold to the government! She wouldn't give it up even if they held my wife hostage, and I'm pretty sure that that's a fairly common attitude. For the older generation, their gold is their life savings and they'll go to the grave with it.

Author — tidge879

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When you mess up the economy so bad that your policy becomes Cash4Gold…

Author — Space Canuk

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I get the sinking feeling that if things gets worse for their economy they will stop asking for the gold and just start taking it by force…

Author — Red

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People are analysing this through the wrong frame. Erdogan's goal is not to stabilise the Turkish economy, it's to stay in power.

(As is the case for pretty much all heads of state, tbh. The only difference is that in democracies the goals "help your citizens" and "stay in power" are broadly aligned, because you'll be voted our of power if you can't persuade people you're doing a good job; whereas in dictatorships they are not.)

Author — Alex Potts

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Option 1: Sell your gold to the government in an attempt to protect the president with the risk of loosing its value to devaluation of the currency.
Option 2: Keep your gold without risk.

Author — estraume

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As a Turk, we no longer have the strength to endure. The whole world is experiencing economic difficulties, but we are also being tested by this insane administration. Things are getting worse and worse. These maniacs have completely lost their minds. I appeal to anyone who is faced with a religious or racial policy in their country. You must stand against it with all your might. Because they do not hesitate to torture their people for their political ambitions. Our people have been trained to obey since the day they were born. They are trying to endure until the day this nonsense ends. Anyone who speaks out is intimidated by being imprisoned, humiliated, and targeted. Only one war is enough for us to become a Nazi Germany.
As a lonely and helpless person in a herd waiting for this man to die, what I'm going to tell you is please try hard not to get into this situation. It's too late for us now. There is no place to run or hide. There is no one to stand next to you.They have torn apart the whole society and there is no longer even a social protest. A hatred is growing that people must keep inside. It's too late to even hope for anything good. we will be crushed, separated, maybe we will fight. But it is obvious that great pain is at the door.I am ashamed, angry and sad for my world, my country, my family, myself. For putting such bull shit in the middle of history.
I wish you all free, healthy and sensible days.

Author — Sosyal Münzevi

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I'm confused. Even if the Lira was perfectly stable and inflation 3%, would anyone give the government their gold BELOW market value? If they offered fair market value then they'd have to find the cash now either by printing money or raising taxes which brings them back to the same problem they started with. It'd also be risky as it would suggest to everyone the government doesn't think it can keep a lid on slipping exchange rates without hoarding gold like a dragon straight out of The Hobbit.

Author — xcw4934

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Erdogan: I'm an expert on the economy. Erdonomics is a wild success!
Also Erdogan: We need our citizen's gold to keep the economy from crashing.

Author — Jay Mann

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No sane turk would sell his gold in times of hyperinflation, especially for less than it is worth.
But there might be some Erdogan fanboys left, who will do so happily

Author — Kai Jäger

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When governments want your gold, keep it in your foreign banks.

Author — Nameless Somebody

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The question that TLDR asks is whether ordinary Turkish people will willingly give up the one financial hedge they have against the reckless fiscal policies of Recep Tayyip Erdoğan. People might be willing to make sacrifices for a worthy national cause, but propping up a dictator with low reserves of goodwill is not one of those causes, especially when what they are giving up is so directly related their personal well-being.

That of course answers the question. The Turkish people will not give up their gold to the Erdoğan government absent coercion.

Author — Oenopion Rex

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This is kind of the problem with having one nutcase autocracy ignoring or firing all their advisors. Hire people who know what they're doing, and then listen to them!

Author — David H

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So if I understand the Turkish story correctly:
- starts with Idiocracy
- then a Ponzi scheme
- now Cash4Gold. To fund said Ponzi scheme

Author — sixstringstyle

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Also Mussolini convinced Italians to give him the gold of their wedding rings to support Italian economy during the war. Unfortunately, when they captured him and his closest friends while fleeing to Switzerland, all these wedding rings were in big boxes ready to be taken abroad. This happens when people believe in dictators.

Author — eurotop40

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I would love to see a comparison on countries with heavy inflation like Turkey and Argentina. "Gold under the matress" (dollars in Argentina but same concept) seems to be a similar situation in both

Author — Artemys

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Usually i would feel sorry for the country but then i remember that Erdogan has still high support and a pretty good chance of being re elected.
After watching the USA for 5 years my point of view is "if people want to elect incompetent people they deserve the consequences of an incompetent administration"

Author — Francesco

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Who would be so stupid to convert gold into paper? I still remember the stories I heard from my granddad when they experienced hyper-inflation and I still have a bank note using trillions as unit. This memory must still be present in Turkey, considering that their last crisis is not that old.

Author — Michael Utech