Turkey ‘saved 442 billion lira’ with low rates"The low interest rate environment of the past 11 years has saved Turkey from paying 442 billion Turkish Liras of additional cost ... "
[paid to itself?]
Maybe they need a Presidential pardon, so that they can go back to denominating ALL necessary transactions ... not just some of them? Let's just hope that they don't run out of public initiative before everything that needs to get done ... actually gets done. It'd be a shame for a whole nation to collapse, all for want of enough public fiat. (Ya just can't make this stuff up fast enough.)
'The low interest rate environment of the past 11 years has saved Turkey from paying 442 billion Turkish Liras of additional cost, Deputy Prime Minister Ali Babacan has said.[Cost to whom, and paid to what recipient?]
“We [the ruling Justice and Development Party (AKP) government] have lowered interest rate spending and we provide services with the resources yielded from this,” Babacan said during a rally held for Rıza Gezer, AKP’s Etimesgut district candidate in Ankara on March 23.[BMHOTK! Parasitic fungi have nothing on bankers! In the hunt for more bizarre, opportunistic organism & cultural sub-types, it's surprising that ecologists don't study co-parasitism by bankers and de-co-regulators AND LOBBYISTS. :( ]
“We would have had to pay 442 quadrillion [billion in today’s currency] more, if the interest rate hadn’t declined over the past 11 years and the state would have continued to pay 66-percent interest rates,” he said.
The AKP government has been vocally against high interest rates, which are blamed for hampering economic growth.[It couldn't be their fiscal & tax policies, right?]
Prime Minister Recep Tayyip Erdoğan, who is also keen on maintaining economic growth ahead of an election cycle starting with the local elections on March 30, has been a vociferous opponent of higher borrowing costs, rallying against what he describes as an “interest rate lobby” of speculators seeking to stifle growth and undermine the economy.Emerging market sell-off? Who owns the assets of these countries, who's buying and who's selling .... and WITH WHOSE PERMISSION?
The abundant liquidity environment that is supported by the United States Federal Reserve’s bond purchasing program and investors’ interest in emerging markets after the 2008 global crisis made the low interest rate policy sustainable. However, the analyst and the economy policy shapers of the government have been saying this era has come to an end with the Fed’s announcement of decision to cut its bond-buying that led to a huge emerging market sell-off. After resisting for months, the Central Bank of Turkey also hiked all of its key interest rates at the end of January." '
Whatever. Just another day of breaking news from down the Rabbit Hole. Add Mad Turks to Mad Hatters. Or can someone just ask them to define "Economic Growth?" Or instead, just ban twitter. That'll fix it!
1 comment:
Part of any country's debt is held by foreigners, so to that extent a high rate of interest makes a country worse off. But that point just supports the point made by Warren Mosler and Milton Friedman that all government debt is pointless. That is, governments should issue base money in whatever quantity induces the private sector to spend at a rate that brings full employment. But as to debt, s*d it.
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