We might get to see another country go down this road,
There is an article in WSJ:
ISTANBUL—Turkish President Recep Tayyip Erdogan replaced the head of the state statistics agency weeks after it reported record inflation, which added to anger in the country….
The Turkish president has fired a series of senior officials who opposed his unorthodox approach in which he has insisted on cutting interest rates to spur economic growth despite rampant inflation.
Independent economists have also calculated that Turkey’s true inflation rate could be as high as 82%.
I spent a fair bit of time in Turkey between 1996 and 2005. In 1996 the exchange rate was about 80,000TL to one USD. By 2004 one USD got you well over a million TL. My understanding is that when the New Turkish Lira was introduced in 2005, that is was essentially pegged to the Euro (They were still trying to gain entrance into the EU at the time). But that peg didn't last long.
Just saying that the Lira has been unstable for a long time. I can't imagine how hard it must be to save and invest in an economic environment like that.
MangoMan wrote: ↑Sat Jan 29, 2022 12:05 pm
What have 'independent economists' calculated the true inflation rate in the US to be? Cuz it's gotta be higher than the BS figure of 7%
I'm curious if anyone on here tracks expenses closely enough to know what their "personal" rate of inflation is. It sure seems like the things my wife and I spend money on have gone up more than 7% over the last year. We don't track this stuff so I really don't know how much more we are paying. It sure feels like a lot more than 7% though.
barrett wrote: ↑Sat Jan 29, 2022 12:04 pm
I spent a fair bit of time in Turkey between 1996 and 2005. In 1996 the exchange rate was about 80,000TL to one USD. By 2004 one USD got you well over a million TL. My understanding is that when the New Turkish Lira was introduced in 2005, that is was essentially pegged to the Euro (They were still trying to gain entrance into the EU at the time). But that peg didn't last long.
Just saying that the Lira has been unstable for a long time. I can't imagine how hard it must be to save and invest in an economic environment like that.
I Shrugged wrote: ↑Sat Jan 29, 2022 10:51 am
We might get to see another country go down this road,
There is an article in WSJ:
ISTANBUL—Turkish President Recep Tayyip Erdogan replaced the head of the state statistics agency weeks after it reported record inflation, which added to anger in the country….
The Turkish president has fired a series of senior officials who opposed his unorthodox approach in which he has insisted on cutting interest rates to spur economic growth despite rampant inflation.
Independent economists have also calculated that Turkey’s true inflation rate could be as high as 82%.
What have 'independent economists' calculated the true inflation rate in the US to be? Cuz it's gotta be higher than the BS figure of 7%
It’s pretty funny that his plan was to fire the guy who is in charge of the numbers. Tyrants be tyrannical.
I Shrugged wrote: ↑Sat Jan 29, 2022 10:51 am
We might get to see another country go down this road,
There is an article in WSJ:
ISTANBUL—Turkish President Recep Tayyip Erdogan replaced the head of the state statistics agency weeks after it reported record inflation, which added to anger in the country….
The Turkish president has fired a series of senior officials who opposed his unorthodox approach in which he has insisted on cutting interest rates to spur economic growth despite rampant inflation.
Independent economists have also calculated that Turkey’s true inflation rate could be as high as 82%.
What have 'independent economists' calculated the true inflation rate in the US to be? Cuz it's gotta be higher than the BS figure of 7%
It’s pretty funny that his plan was to fire the guy who is in charge of the numbers. Tyrants be tyrannical.
How much different than a business owner threatening to replace it's auditors with a new set of auditors if the auditors do not go along with this business owner's conception of what the financial statements should portray?
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
barrett wrote: ↑Sat Jan 29, 2022 12:04 pm
I spent a fair bit of time in Turkey between 1996 and 2005. In 1996 the exchange rate was about 80,000TL to one USD. By 2004 one USD got you well over a million TL. My understanding is that when the New Turkish Lira was introduced in 2005, that is was essentially pegged to the Euro (They were still trying to gain entrance into the EU at the time). But that peg didn't last long.
Just saying that the Lira has been unstable for a long time. I can't imagine how hard it must be to save and invest in an economic environment like that.
Buy gold.
Sure, that would work for someone who already has considerable investable assets, but only for a portion of their wealth, right?. But it's almost impossible to build wealth in the first place when a currency is being eroded by 95% over eight years. Look how hard it is here in the US to keep ahead of inflation when it runs hot even for just a year or two.
From what I understand, Erdogan is trying to reduce Turkey's dependence on foreign capital, mostly from the Eurozone and the US, who he blames for the 2016 coup attempt.
