Turkey Central Bank Head Faces 2 Years In Jail For Not Lowering Interest Rates

Tyler Durden's picture

Having questioned the need for an independent central bank a week ago, saying that if they can’t cope with their duties, they will be held accountable, Turkey's President Recep Tayyip Erdogan has filed a lawsuit against the head of Turkey’s central bank, Erdem Basci. As Trend reports, the prosecutor accuses Basci of serious material damage inflicted to Turkey’s citizens as a result of an erroneous interest rate policy of the central bank.

As Trend reports,

A prosecutor of a court in Ankara, Serif Aydin, filed a lawsuit against the head of Turkey’s central bank, Erdem Basci.


Turkish news channel Haber7 reported that the prosecutor accuses Basci of serious material damage inflicted to Turkey’s citizens as a result of an erroneous interest rate policy of the central bank.


The prosecutor said that, in case of a trial, the Turkish central bank’s head can be imprisoned for up to two years.


On Feb. 10, Turkey’s President Recep Tayyip Erdogan criticized Basci’s work, saying that if the central bank’s head can’t cope with his duties, he will be held accountable.


“Despite the fact that the government has repeatedly demanded that the central bank lowers the main interest rates, the regulator hasn’t until today responded to this demand,” said Erdogan.


He said it is the inflation, which is due to high interest rates, but not the other way around.


However, Turkey’s deputy prime minister for economic affairs, Ali Babacan, said the central bank pursues right monetary policy.

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One wonders if that gives any ambitious American prosecutors any ideas?

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SethDealer's picture

I seen guys kill for less than that!! the nerve

Greenskeeper_Carl's picture

Why would American prosecutors need to get any ideas? Janet prints when she is told to print, and keeps the markets nice and high for her owners, which also allows the govts fraudulent GDP reports to be somewhat believable by the brain dead masses. After all, 'get to work me chairman' was the order given, and bernanke went over and fired up the printers. Yellen is doing the same, and wont raise interest rates too much , if at all, so she doesn't make Washington look bad to the plebes. Id say she is safe.

General Decline's picture

Politicians don't go to jail for "inflicting damage" on their citizens... Politicians go to jail for "inflicting damage" on other politicians...

thamnosma's picture

Billy Hayes: [voiceover] To the Turks, everything is "shurla burla", which means "like this, like that". You never know what will happen. All foreigners are "ayip", they're considered dirty. So is homosexuality, it's a big crime here, but most of them do it every chance they get. There are about thousand things that are "ayip", for instance, you can stab or shoot somebody below the waist but not above because that's intent to kill. So everyone runs around stabbing everyone else in the ass. That's what they call Turkish revenge. I know it must all sound crazy to you, but this place is crazy.


Defective machines from the Company walk counterclockwise.


Oh Billy!

ZH Snob's picture

negative rates would have gotten him a promotion.

aliki's picture

crazy the way shit works overseas. since our central bank is "independent", i guess that would be the equivalent to a ratings agency getting fined after say they downgraded the sovereign debt rating of the host country.

Mister Ponzi's picture

At least S&P learned its lesson and downgraded Russia to the level of Nigeria.

LoneStarHog's picture

What is an "American prosecutor"?

bonin006's picture

Someone who protects us from the horrible dangers of psychopaths like Martha Stewart, while correctly seeing that Jon Corzine was an innocent victim of circumstances beyond his control.

ThroxxOfVron's picture

I worked around Martha Stewart for awhile.  

Mouth like a teamster.  Eyes like a shark.

I carried a knife on me all day every day.   I'm not kidding.

begintowin's picture

An American prosecutor is the employee of the government who accuses your kid of selling lemonade by the side of the road without a license. He sends his thugs wearing badges and guns to arrest your kid in handcuffs and you must post bail in order for him to be released back into your custody.

You see your kid didn't realize that selling lemonade is not a "too big to fail" enterprise. That was the mistake he made. 

10mm's picture

Not a chance.

Bunga Bunga's picture

... so Bernanke was smarter?

LawsofPhysics's picture

Truth is treason in an empire of lies.

overmedicatedundersexed's picture

in 2008 ,Mr H Paulson has it covered: exempt from any legal actions now and in the future, congress ok'd it we just don't know who else or what organizations (FED) also got that protection..from the actions of international banks I would guess they all got protection from criminal prosecution.

saltoafronteira's picture

A central banker being menaced by a president of a nation ?

Preposterous !!!

css1971's picture

A narcissist vs a sociopath.

Interesting. A cage match would be good. Throw a couple of chivs in to spice it up.

savagegoose's picture

2000 quatloos on the new commer


Luckhasit's picture

So now Turkey is going after the head of it's Central Bank? 

I believe Turkey's pivot to Russia is now complete. That or they are playing both sides of the fence. I like option two.

Sanity Bear's picture

Have they considered beheading? I hear it's real popular in that part of the world.



Thirst Mutilator's picture

Which part? Langley? or Tel Aviv?

iceCube's picture

C'mon, you wouldn't find Turkey on a world map, would you? Ever left Alabama at all?

thamnosma's picture

I can't find it on my map, all I can find over there is the Ottoman Empire.

savagegoose's picture

and whats this Istanabul or someething, all i see is th capital of the eastern roman empir, constaninople, set up by great constantine himself, after the goths sacked rome., he was really glad he had a summer capital., but, ... ottomans? whats this i need a new map.


StychoKiller's picture

Ottoman's be whats ya put yer feetz up on! :>D

Keltner Channel Surf's picture

If Richard Fisher were Turkish, he'd be melted down and made into taffy.

Augustus's picture

Muslims now believe High Interest Raes cause inflation? 


Thirst Mutilator's picture

Actually I think it's the invisible Muslims hiding behind every rock that are causing the inflation. As such, no expense should ever be considered too high in the ongoing effort to eliminate this threat and ameliorate this evil inflation once & for all!

thamnosma's picture

Yeah, that was pretty funny.  On the other hand, ours has been lowering interest rates for years and getting deflation, so maybe they're onto something. 

oddjob's picture

Why should people be charged interest on a piece of paper that the Bankster class creates out of thin air?

Peter Pan's picture

And here I was thinking that Muslims were not allowed to charge interest. 

NordikAvenger's picture

Turkey is still a secular republic despite being 99% muslim.  Kind of like America being a secular representative republic with 95% of the people nominally Chrstian.  

All this means that the same criminal class runs the economy.

hoist the bs flag's picture

indeed...and oh yeah...up the irons!

El Hosel's picture

Its a start, has any central bank head ever been jailed?

hoist the bs flag's picture

"One wonders if that gives any ambitious American prosecutors any ideas?"

 So they wanna play Russian Roulette with nail guns?...go for it.


walküre's picture

I'm sure Goldman has a Turk in their alumni who can fix this and bring 'em into the fold.

WTFUD's picture

I think Bankers should serve two terms ; 50 years + 50 years to run concurrently.

Chuck Knoblauch's picture

Now that's independent.

Liberty2012's picture

Atlas Shrugged again -

We will force you to do the impossible

If we want it, then it is possible

Catullus's picture

I'm proving beyond a shadow of a doubt that your failure to command the market to accept lower interest rates hurt the economy. My Keynesian economics textbook says so right here!