Currency Crisis in Turkey: Erdogan Calls on Citizens to Sell Dollars and Buy Lira Amidst Collapse in Currency

Originally published at iBankCoin.com

This has become a big deal, seemingly overnight. Let's not over analyze it or delve into hyperbole and simply observe facts. The Turkish Lira is cratering and crashing in Wagnerian Opera fashion, off by 13% for the day on news that Erdogan is telling citizens to sell dollars and take the gold from under their mattresses and buy Lira. The fuck.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks. This is a domestic and national struggle," Erdogan said, according to an Associated Press translation.

The result is the Turkish stock market crashing by 4.5% and sharply lower European markets -- with Italy leading the fray down by 2.3%. It's worth noting, Russian markets are down 2.6% Over in the bond market, we are seeing an interesting development where Italian and Spanish bond yields are diverging from German and Swiss. This typically occurs during periods of financial distress, as investors parse thru the crap of Europe and gravitate towards the financially sounds. Although the Lira is crashing, it's worth noting there isn't a crash occurring in Turkish bonds today. Dow futures are -150, Nasdaq -55. Bitcoin is higher by 3%. I'm expecting safe haven to occur in TLT, which is traditionally a splendid place to park dollars during August. And here's a digital dump of some analysts discussing this new and exciting crisis.

And here is our President, incredulously dropping salt on the wounds of Turkey, tweeting that he's increasing tariffs on them and highlighting the run on the Lira -- which is hurting millions of Turkish citizens. NOT NICE! Sad.

My best guess -- keep your eyes on the USD-TRY cross for $7. If it breaks $7 in a fast way, you could start to see capital markets respond very negatively very quickly, as Turkish banks scramble to raise capital requirements.

Comments

COSMOS El Oregonian Fri, 08/10/2018 - 21:06 Permalink

They should ask the Iranians to print them a bunch of dollars so they can then satisfy the dollar demand within their national Turkish borders.  Any morons thirsty for dollars should get all the imitation KOOL AID they deserve.   Problem solved.  As far as settling accounts of trade between other countries they should join the Russians and Chinese and base it on gold deposits.  This should encourage them to have a zero trade balance account deficit.  Export as much as you import.  Hence your gold deposits stay stable.

In reply to by El Oregonian

wholy1 Fri, 08/10/2018 - 10:04 Permalink

Erdogan is just another moozie thug.  Would love to see "it" caged up with his arch-nemesis, Guillen.  They really deserve each other.

hestroy RTUT Fri, 08/10/2018 - 14:02 Permalink

OK, kike. Now go to steal something as usual instead of posting pathetic jooshit. Read this, you "chosen" piece of shit:

“Goyim were born only to serve us. Without that, they have no place in the world – only to serve the People of Israel.”

“In Israel, death has no dominion over them… With gentiles, it will be like any person – they need to die, but [God] will give them longevity. Why? Imagine that one’s donkey would die, they’d lose their money.

“This is his servant… That’s why he gets a long life, to work well for this Jew.”

“Why are gentiles needed? They will work, they will plow, they will reap. We will sit like an effendi and eat… That is why gentiles were created.”

In reply to by RTUT

sarcrilege Fri, 08/10/2018 - 10:17 Permalink

WTF? 

The result is the Turkish stock market crashing by 4.5% and sharply lower European markets

Erdogan's asking low IQ muzlims to take gold and dollars from under mattresses and buy Lira is the reason for collapsing Turkish stock market?  Another weak analysis from idontbankcoin.  Fundamentals dont matter.  Politics matter.  There are consequences for a NATO member aligning itself w/ russia, buying russian equipment and going against the filthy western zionists.  Foreign funding of Turks' deficit and debt was yanked.  Ask Soros.

SmittyinLA Mustafa Kemal Sat, 08/11/2018 - 09:03 Permalink

Breeding with family members does lower IQ, it also increases the incidence of mental illness https://www.washingtonpost.com/news/morning-mix/wp/2014/07/17/the-famil… in spite of all the Muslim cousin marriage Turkey does have a decent IQ thanks to their location next to Europe https://iq-research.info/en/average-iq-by-country/tr-turkey it's nothing that a long grinding war can't fix, they don't call it "selective service" for no reason an IQ of 90 is the bottom range for military recruits, Turkey is ripe for exploitation and debt slavery

In reply to by Mustafa Kemal

Mustafa Kemal SmittyinLA Sat, 08/11/2018 - 10:08 Permalink

Smitty, During my whole 4 months there I never once saw such people.  And many of the places such as Trabzon, Ankara  people walk very long and steep grades to get to work. As I said, my impression was that their physical health was generally much better than in the US and talking with many of them, I got the impression they were of similar intelligence. As someone who scores high on IQ tests, I dont take much stock in them, since they are well known to  have certain biases.  I  know, and work with, many "highly intellegent" people who arent very intelligent in some important ways.

As  for

"it's nothing that a long grinding war can't fix"

I thought we had enough of those on our hands already. 

Anyway, that was another impression I got from the Turks. I dont think one should really fight with them. THAT is something that I think they would do well. The US, not so sure. 

 

Anyway, here 

https://www.zerohedge.com/news/2018-08-10/lira-collapse-jump-mediterranean

is another take on whats happening there.

 

 

 

 

In reply to by SmittyinLA

harrybrown Fri, 08/10/2018 - 13:22 Permalink

Fiat currency.... only valid to those who still have faith in them...

Be they dollars, rubles pounds francs whatever... they all going down bitchez

Gold n silver are money, everyting else is credit....

Observingmen Fri, 08/10/2018 - 13:29 Permalink

Turkey is paying the price for maintaining its military base in Qatar - which was strengthened at the end of last year. That - rather than Tillerson's last minute intervention - is the reason why Saudi and the UAE didn't launch their planned invasion.

MoreFreedom Fri, 08/10/2018 - 13:42 Permalink

Turks elected Erdogan.  They deserve him, good and hard.  I do hope his supporters sell gold and buy Lira, because they'll learn their lesson good and hard.  Their religion will sustain them for awhile, until they starve.

francis scott … Fri, 08/10/2018 - 17:56 Permalink

It's all an act, Real Fly.  And it looks like you're a major

buyer.

 

Yes sir, Trump is beating the China, Russia, Iran, Turkey

axis the exact same way Hillary was beating Trump

until the Electoral College got together.

 

The pragmatic Deep State was responsible for 

Trump's victory over the wildly-ahead and

over confident Dems.

 

Today, they're responsible for the fake news that

Trump is crushing Russia, China, Iran and Turkey

with his Atomic Maginot Sanctions.

 

And pussy cats like you are licking up Trump's tactics  

like it's whipped cream on dirt.

POORICH Fri, 08/10/2018 - 19:55 Permalink

I've been to Turkey -- Ankara, Izmir, and Istanbul.  Didn't much like any of 'em or the peeps therein. 

My vote on tariffs?? 

Taste some American steel, you  NATO-wanna-be Islamist scum.

falconflight Fri, 08/10/2018 - 20:47 Permalink

Currency Crisis in Turkey: Erdogan Calls on Citizens to Sell Dollars and Buy Lira Amidst Collapse in Currency

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How many suckers waving the flag on the way down are in Taqiyya-Turkey?