Turkish Lira Crash – This Is Just A Symptom, The Disaster Has Already Happened

When a currency collapses, as the Turkish Lira is right now, there are always questions about, well, what is happening to make it so? The answer, almost always, being no, what has happened? That is, not that there’s a disaster happening, but which disaster happened? The answer here, essentially, being Erdogan’s taking ever more control over the economy. It’s not that everyone sees some looming problem. It’s that having the one authoritarian controlling the direction of the economy makes a disaster near certain to happen, thus the disaster is that authoritarian control over the economy:

The Turkish lira has collapsed to an all-time low against the dollar, but the country’s leader has brushed aside concerns, telling Turks “we have our God.” The Turkish President Recep Erdogan then followed those comments up Friday by urging Turks to sell dollars and gold and buy lira.

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At Least Erdogan’s Son In Law – Turkey’s New Finance Minister – Has Run A Real Business

It’s possible to view Turkey as retreating – advancing if you prefer – to something like the power and economic status it had as the Ottoman Empire. The point being back then that just everything depended upon the Sultan. Sure, sometimes it was the Vizier who had the real power, but the legal status was that the entire thing belonged to said Sultan. State employees were in fact slaves – quite literally in law – of said Sultan.…

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Erdogan Closes Down Uber In Turkey – Missing The Point Of Market Economies

The Turkish President, Tayyip Erdogan, has just closed down Uber in that country. In the process he’s shown, once again, that he doesn’t really quite get how market economies work nor why we use them. The aim is to find out what the consumers want, not what the producers do. Thus if someone launches a service, produces a good, which people want we should let them get on with it. Not close it down because other producers complain.…

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What Erdogan Misses – The Turkish Lira Should Be Falling In Value

We’ve another of those complaints by a politician that reality is just such a bitch. Here it’s Erdogan in Turkey complaining that the Lira is falling in value. But then the lira should be falling in value given the economic policies being pursued by Erdogan. Hmm, OK, so we can see why Erdogan doesn’t like the markets here but also we should see the reason why we use markets. For we prefer reality to the dreams of politicians.…

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