Some of the world's authoritarian rulers like to dress up as heavenly giants. Of course, Biden, the president of the United States, the world's number one power, is not among these people. From the moment he took office, rumors of brain dementia have been with him. However, these countries that like to dress themselves as heavenly giants are generally rich in their ancestors, or they are inheritors of great empires.
For example, Russian President Vladimir Putin, and the other is Turkey's President Waldogan. Turkey's predecessor is also the Ottoman Empire that once emigrated Europe, Asia and Africa, and its ruler is Sudan. Although Aldoan is known as President, in fact, he also considers himself Sudan. When Turkey met with foreign guests, Turkey also asked its honor guard to change into the costume of Turkic warriors of various historical periods to greet the guests.
What is incredible is that the oldest can be traced back to the Huns. In Turkish textbooks, it is even written about the remnants of the Xiongnu Mao Dun, and the remnants of the Xiongnu Mao Dun, who dealt with Liu Bang, are their ancestors, but this is all a political trick to build up a sense of national pride. it's just a political trick to win the hearts of the people. of course, if a regime can survive, it still has to produce a good report card economically.
Let's talk about Turkey's economy today. Turkey's predecessor, the Ottoman Empire, straddled the three continents of Europe, Asia and Africa, and also had large tracts of territory in Europe. Today's semi-dry islands and Romania, even Crimea, which triggered the Russian-Ukrainian War, and Crimea on the north shore of the Black Sea, were once Turkish territory, but the empire disintegrated after World War I.
Now there is only a small piece of territory left in Europe, Istanbul, the capital, so he has some contradictions about his identity. Is it an Asian country or an European country? he naturally wants to move closer to Europe economically, and the foreign debt borrowed from the European Union is also the main means for Turkey to develop its economy, but Turkey's own manufacturing industry is not developed, and its dominant industry is tourism.
Moreover, it is not self-sufficient in grain, so in foreign trade, it is a country with a large deficit, so it cannot obtain enough foreign exchange to repay the debt borrowed from the European Union through foreign trade, so the only way is to print money to repay it. So Turkey's currency has always been overissued, and to a certain extent, it will cause huge inflation.
For a time, the news of the collapse of Nila in Turkey occupied the main page of the world financial news. Turkey's exchange rate against the US dollar fell by more than half in just a few months, but the slogan Erdogan shouted at that time was to ask people to take out their own dollars and gold to support Turkey's own currency. Of course, apart from being brainwashed to believe that the Huns were haunting their ancestors.
Apart from a few people, most people hurried home to hide their gold dollars, so this trick was completely useless, so Turkey's central bank began to raise interest rates in accordance with the operation in economics textbooks to curb inflation. just like the Fed operates now, but this move has been strongly criticized by Erdogan, which is different from the traditional Western countries that boast the independence of central banks and the cover of central bank independence.
Turkey, as a late-developing country in transition, is much more simple and robust. Erdogan opposes the policy of raising interest rates, and the central bank governor is disobedient, so what should we do? instead, a central bank governor found that inflation could not be controlled without raising interest rates. Erdogan still proposed to raise interest rates. Erdogan replaced it again, several times a year, and finally found a completely obedient one. Erdogan opposed raising interest rates.
On the one hand, it is because he was born poor when he was young, worked as a peddler and hated usury, on the other hand, it is also the main religion in Turkey, Islam is also opposed, and the doctrine of Kislan is also opposed to using money to generate money. I think that it is evil to borrow money and charge interest, of course, it does not mean that after we have finally found a central bank governor who can fully obey.
Finally, we can implement the so-called Erdogan economics, that is, cutting interest rates to control inflation. in fact, although those central bank governors who insist on raising interest rates are in the form of economics textbooks, raising interest rates may not be correct or correct. the so-called interest rate is only the so-called interest rate, of course, Erdogan is the evil interest rate, but also overkill, the so-called interest rate is just the price paid for borrowing money.
Just like buying things, you have to pay the corresponding price, the price of the commodity should fluctuate with the market, if you artificially control the interest rate, you are actually forced to manipulate the price, which will inevitably damage the interests of some people. The reverse operation of forcing interest rate cuts to maintain low interest rates is also destructive, but after more than a year of practice anyway.
Erdogan economics seems to beat the mainstream economy. In 2002, Turkey's stock market rose by 50% and GDP by 5%, which is much faster than that of most countries, and only Vietnam in Southeast Asia can compare with one. But the statistics of economics are actually meaningless, and it will not see those groups whose interests have been harmed, which can not be seen from the numbers, because although under the glamorous figures.
A cold fact is that a large number of young people in Turkey want to leave the country. Hundreds of thousands of Turks go to Europe and other places every year. Only everyone knows what real life is like. These cannot be counted from medical figures. Instead of focusing on the numbers, where people who can vote with their feet is the best barometer of a country.