Why TĂŒrkiye Is Not Fixing It's Hyperinflation Problem | Economics Explained
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- Äas pĆidĂĄn 14. 01. 2022
- Turkey is one of the largest economies in the world and was up until recently growing rapidly every year. Why is it now driving itself into a hyperinflation crisis? The first 1,000 fans to signup with this link will get a 1 month free trial of Skillshare đ skl.sh/economicsexplained01221
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No thank you
Bro you spelled "its" wrong
đđ„đ đđđđŠđș
Why Turkey Is Not Fixing It's Hyperinflation Problem.
Why???
So they could blame it on the USA/EU/Democracy/Neighboring Countries/International law
Anything but themselves
Why is the mistakes of 2021 taking so long, have you got a winner @economicsExplained ?
As someone from Argentina, that part about people trying to use US Dollars instead of Lira to avoid inflation hits too close to home.
This entire video is just the news of argentina of the past few years
Here in Venezuela we have basically replaced our currency, the Bolivar, for the US dollar. Prices are in dollars, you can pay with dollars. It has gotten to the point that Venezuelan paper money is more uncommon to see than a dollar bill. BTW, I'm leaving for Argentina sometime soon. My advice to you is, have your savings in dollars. Open an account in Uruguay, or the USA if you have that possibility, because trusting Argentina with your dollars is risky to say the least.
@@bensfons American sanctions and Maduro's bad reactive policies to those sanctions have made a mess of your country, and the people are now effectively helping to prop up the us empire by creating demand to its printed paper. Brilliant.
Old folks could have stuck to precious metals and the younger ones could have used cryptos, but no, you choose to pay this hidden tribute to the empire like a vassal.
@@bensfons what about saving in gold?
I see Chile going the same route
I don't know why but I just love his explanation of tourism of "people flying into a country, spending piles of money and then flying out again."
And the piles of money go into the pockets of rogue politicians abd their entourage.
Unless they are russian tourists, the definition is correct.
Lol I mean he's not wrong
Accurate, but way too glib. But then, he is an economist, and an Australian.
@@globetrotter5751 cyka blyat all inclusive means the whole buffet is included, does it not?!
Note: Turkey didn't change its name. It has been Turkiye for a rather long time, and the English name for it is Turkey. The same way Germany is Deutschland, Austria is Ăsterreich, Norway is Norge, Hungary is Magyar[orszĂĄg] and Finland is Suomi.
What changed, apparently, is that Turkey decided to use its local name internationally. For instance on products that will now say "made in Turkiye". That's all.
I wanted to write a mean comment, but then I noticed you're a T90 viewer.
@@ayush885
You are indeed a man of culture, I see!
@@sorsocksfake 11
Which was completely unnecessary seeing all the problems we have here and they are just trying to solve problems that do not exist.
@Scott Lambson what you said is true and i also liked the fact that you used football terms as an example , but Turkish is hard to learn and speak for foreigners . you have to hear it constantly so that you could adopt and understand Turkish , otherwise with minor interactions with the language you simply wont understand and cant speak .
still thats an insightfull info you gave and the Turkish parts are true :) and you can always learn the correct spelling of one word , that should be simple enough .
Turkey reminds me a little of Brazil. We had similar debt and inflation problems. They were two countries on the rise in 2010, but politics destroyed both of them. Here tourism is much smaller, but the oil industry is much more relevant.
I heard and witness similar stories, Brazil, South Africa, Turkey we're almost face the same consequances because of well doing country interrupted by politicians who do little care for their people.
Also Turkey was on its way to really rich country due to very professional handling in economics, law&order, democracy and freedom.
But this three country made a mistake instead slowing down the economic growth and protect the value of their currency, they choose keep on growth whatever it costs.
Growth comes with printing more money without regulating what sector will use that money and how it will bring more cash back to the circulation.
The worldwide dollar circulation began to slow down in 2014-5's which affected countries choosing to keep grow its economy with debt and interest hoping hot cash will flow as just like before began to crumble, inflation slowly rise then covid happened.
All those growth policies depends on cash flow literally devastated, left central banks with crumbling debts and without the money they thought it would come.
And after that, wrong take on national interest rates, not stopping down printing cash we're like giving the sick person a poison.
Its just sad at this point.
When i was a kid in the 80's inflation problem was worst in Turkiye, trlira/usd parity was in the millions, so 1$ was equal to more than 1million lira. I dont remember exactly but i think it was Erdogan that wiped the slate clean and made it 1to1. Now we are headed back in the same direction.
@@nyny1475 No erdogan did nothing good for the economy of Turkey. He just worsened it and still does the same. How is he still a president i wonder? How can a president lie to his own people?
it's more like mexico
"YOU ARE GOING TO TURKEY"
I sell Zimbabwe hyperinflation banknotes for a living (they're a big collectors item globally). When Zimbabwe's economy went completely bust in 2008 and they printed a 100 trillion dollar note, people used The Euro, South African Rand, and USD. Confidence in government is almost completely non-existent and most people keep their money under their mattress.
How much do you Charge for one of the hyperinflation banknotes? :D
Thats hilarious
@@_thereswaldo The 100 trillion dollars banknotes are very rare and now sell for about $200 each. It's quite comical how a hyperinflation note is rapidly increasing in value. The 50 trillion sells for about $75 and 10 trillion about $20. You can buy the billions and millions denominations very cheap, about a buck each in in bulk, or a few bucks a piece retail.
Seems like a problem for Bitcoin to solve.
Even Turkey's name is undergoing inflation.
Fun fact: We didnt fix our issue because we really wanted Economics Explained to rate our economy and this was the only way we could grab his attention. Now that he gave us a rating the government will increase the interest rates.
True fans of the channel đ€Ł
Plot twist: The video was actually about Iran but all the images and mentions of Turkey were actually mistakes.
unfortunately, that rating chart makes no sense at all, but you're on!
Thanks for the inside information!! hahahha
@@EatMyShortsAU đłâ ïž
Turkey is so unique in terms of many aspects (geopolitically etc.) .Huge respect and loves to Turkey from Australia đŠđș
thanks bro. greetings from Turkey!
loves from tĂŒrkiye, aussie brother
Last gentlemans â€
We need to get rid of the one person dictates. We have a chance election serves an opportunity for it for god sake. We need this. And hi from gallipoli
@@mehmetbolal493 TĂŒrkiyede çok vatan haini varmıĆ... Dik dur, eÄilme. Ću millet seninle! Recep Tayyip ErdoÄan! â€ïž
Living in a very international city in Europe, I met so many Turkish people that say they love their country and their culture but canât foresee a future there anymore. The current economic mismanagement is forcing a lot of them to leave the country and find their luck elsewhere, which is just gonna be another drop in the sea of problems they already face.
Yes, I'm a high school student in Turkey, a lot of us are working hard for the exams to leave the country after school or after university. Even the 6-7 year old kids are talking about economy now, it's terrifying
@@sf6454 But aren't a lot of the young people optimistic that Erdogan's party will lose in June 2023? And if he loses and the opposition can create economic stability, I think Turks will no longer be rushing to leave the country?
The ones you saw in Europe cities are the rats who left their ships early. And believe me they dont like their countries as they told you. We are here and working for our country. They just cant afford to buy iphone 14 pro max.
@@sf6454 evet cok calis ta git bu ulkeden. Senin gibi saticilara ihtiyaci yok bu ulkenin.
@@littlemissdimples88 I hope so. God I hope so.
As a white collar worker in Turkey, the last couple of months were quite devastating. Watching every price tag go higher every day by significant amounts and not being able to do anything about it certainly gave most people an increasing sense of insecurity day by day. Even though the official inflation rate is %36.08 for the last 12 months, independent studies show that it's simply %80, which I do confirm. On the other hand, the next election is expected to be held in no more than 1.5 years. The government will try to defeat or mask inflation as much as possible. Only time will tell what other genius ideas they will come up with.
My bet is they'll make a big deal about a "secret plan" to fix the economy, which conveniently can't be started until _after_ the election.
@Tmb1112 It's impossible since those islamists label the protests as treason and terrorism.
In the US, one-third of senators run for election every two years, the entire House of Representatives is up every two years. This needs to be implemented in Turkey. The elections for the Meclis should be held every two years. This would solve the problem of having an unpopular, ineffective government stay in power for years while the populace can do nothing about it.
*1) were 2) months 3) it's
Turkey is stuck in a "corruption ends in upheaval then reverts to corruption" cycle. One government takes it to the brink of economic disaster, is unseated by another which enacts reforms and brings temporary relief and growth and then becomes a victim of it's own success by doing the same greedy things it's predecessor did. Ordinary citizenry has become accustomed to it as well so they let it carry on with a shrug.
Tourist didnât stop going to Turkey in 2016 due to its inability to join the EU. That was irrelevant. In 2016 there were terrorist attacks in central Ä°stanbul and at the airport, in addition there was the failed coup attempt. These virtually killed tourism in 2016 which it didnât recover from for several years.
âFailed coupâ
And then CoVID hit everything related to tourism. Heck even the airline business hasn't recovered yet
@@hockey1freak yes. Failed coup
Death of the democracy
@@thewok516 literally hitler
Iâve been helping out a couple of Turkish friends since last June, and itâs unbelievably insane how dire their lives have become in such a short span of time. I havenât been back to Istanbul since 2017 to be honest. But I was there on 9 different occasions between May and November of that year. I still vividly recall, how one Emirati Dirham was equal to 0.94-1.02Turkish Lira during those six months. So, one would argue, that it was volatile even back then. Anyways, 30,000 TL would be the equivalent of 31,900 AED worst case scenario back then, or 29,400 AED on the best of days. Meaning, somewhere between 76.3% and 82.8% of my monthly income. Nowadays, 1 AED equals 5.09 TL. Meaning, 30k TL would cost me 5,890 AED or 15.2% of my monthly income.
Which makes it easier and far cheaper for me to help my Turkish friends since last June. As allocating 5% of my monthly income, equals a tad bit over 10,000 liras. Which goes a long way to help them out. Whatâs worth noting as well, is that since February last, an influx of USD rich Ukrainians and Russians have been a cause behind an increase in property prices across the city, not to mention rents as well, along with nursery/kindergarten and school fees.
One of my Turkish friends is married to an Azeri lady, and sheâs been offered a 30,000 TL a month job as a Russian Corporate Relations Officer or something, at a Real Estate Company, given that sheâs fluent in Russian, being born to Soviet parents and all. Whereas he makes 5000-7000 liras working as a security guard. It just shows you how much money those folks are bringing in, and how many people have been pushed out of their rental apartments, because they were offering large sums of money to landlords, sums beyond the grasp of your everyday Joe down in Turkey.
You're a very good man to want to help your Turkish friend. Thank you kind Emirati man. That's a beautiful gesture. May Allah grant you everything you need and want in life.
i am Turkish and Turkey is a perfect example of how a dictator can ruin a great country single-handedly and even ruin the next generation's future!
Single-handedly? you are talking like we were amazing back then. This country didn't see a proper leader since Turgut Ozal and before him, it was all terrible too. We have like a few decent and just two good leaders in the whole 100 years of history. Turkey is found on a shaky foundations,political system is just made by mix and mash since AtatĂŒrk didn't have enough time to perfect it and nobody after him even tried to perfect it, put corruptional laws or economical planning for the country. Erdogan was an inescapable consequence of previous leaders' laziness.
@@exosproudmamabear558 At least, before erdogan Turkey was so close to join the EU. But erdogan ruined it. all his fault. S400, its erdogan that created the gap between the NATO and turkey. because at that time, he need to take turkey away from the west and this makes his nationalistic fanatics happy. so he pick up the fight. and recently the interest rate issue.turkish economy was so well during 2014-2013. but its erdogan that ruined it. the world saw a rising fresh turkey. not the one you claimed in the comments. erdogan get turkey back from that booming economy .
@@jt-xk4vj I am not saying he is not bad or worse than most leaders out there. I am just saying we have a lot of candidates for being the worst.
Also no 2001-2015 economic boom was his success.Although It was a problematic one since the economic plan he had was extremely short sighted. It caused a huge boom in economy but had multiple problems. So all of the plan started to crumble in 2016.
Dictator.. seriously.. are you a Feto sympathiser by any chance..
@j t Im Turkish aswell, and you are just talking so biased. A dictator? Really dude?
It is absolutely incredible how Turkey at one point was considered a diamond in that part of that world economically and had so much investment from all over, especially South Korea. The US even considered Turkey such an important place that the govt wanted more Turkish speakers, and would pay you to go there to learn the language and culture due to its growing importance both militarily and economically. Erdogan truly tanked a diamond in the rough and its so sad to see. I have friends there that are in the process of leaving or planning to leave due to lack of opportunities, and these are well-educated and highly skilled folk as well. Just sad stuff all around and I do hope things improve there eventually.
Itâs called Islamic revolution. Just watch Iran in the 70s
@@Antares-vj7su its sad how a nation like Iran which was on its to progress was taken over by zealots
Populism will do terrible things, thats why the USA should stop clashing between the two parties... and also hopefully not elect another populist president or any representatives
@@pankajtyagi9911 I would not really call it a progress. Before the Islamic revolution in Iran, the dictator was a US puppet. Yes there was greater autonomy and freedom, especially for women, but having your country run by foreign puppets isnt exactly progress.
to be fair he also created this Diamond in the beginning.
The latest Turkish government move, January 3rd, is to require larger businesses to put 25 percent of their forex holdings into Lira. This will be a disaster for import reliant industries, as a convertible currency reserve is their lifeblood. Turkey should take a hard look at Argentina and ask if they really want to go there.
Erdogan wants to go there.
Donât forget the elephant in the room. IslâŠ
They actually did that?
In a time, when liquidity/cost of capital is an extremely important topic for any business but especially for bigger ones?
The problem is Turkish government is delusional. They don't want to see the truth.
No one in turkey wants to go there except erdogan and his dogs
Came back to watch this after the horrible earthquake in Turkey and Syria. I hope the government can react appropriately to both of these crises to help the people of Turkey after such a horrible tragedy :(
Such detailed and well supported explanation. I hope Turkey can manage their financial problems as soon as possible.
well I hope so, Imo until we get rid of current stubborn rule with next election nothing will get better
It didnt fixed last 100 year, I havent any hope
I have a feeling Turkey is going to become like Brazil; a rising power that saw its rise very suddenly turn into a cliff. Not just economically, but if skilled workers leave the country they arenât going to get them back easily, and that will also hurt any recovery or future growth.
Everyone who is able already leaving.
Maybe tourism can help turkey recover... But with incompetent president things will be difficult...
Brazil is still an emerging economy .
I think us Turks have a strong patriotic feelings since we know the hardship our country went through defending our lands. It is true that a lot of people are trying to leave the country as of now. but as soon as we see a light of hope most people who left the country, I think, will return. I'm a med student and I myself am trying to leave. But then again if I see a bright future in my own country, why leave?
@@omercik31 i think it all depends on who wins the election in 2023. If erdogan wins again the country will be in huge problem.. i really wonder if erdogan will leave without a fight if he loses.
Funny anecdote: my dad went to Turkey back in 1995 and on his return he had some spare lira. I think it was like a 10000 lira note and another one.
Anyway, I took the currency and stuffed it into a tin and didnât think about it till about 2013-14.
I checked the exchange rate and realised I had over $20000 worth of lira and thought life is amazing.
Only to do a bit more digging and realised these were the old lira notes and not legal tender anymore đ«đ«đ. Worthless.
Another funny anecdote. The old 50,000 lira coin was exactly the same size and weight as the GPB ÂŁ2 coin back in the early 00s. I pumped many a London parking meter full of these coins throughout this period! Cashback!
bruuh đ
Perhaps you can sell the old notes to collector? My country also have old versions of money, they are rare now and people love to collect it
What an emotional roller coaster!
@@dontrickett666 dude approx 3M Turkish people live in Germany and they come back to visit their relatives in Turkey almost every year. They'd stock up on those 1 lira coins since they're the same size and weight as 2 euro coins and use them in vending machines and whatnot back home!..
Some countries try to get a baker to fix a car and a mechanic to bake pastries.
Great video thanks for breaking it all down so nicely.
I have Turkish family and we visited often. I still remember walking to the local kiosk as a small child and buying ice cream with million lira notes.
That's so cute buddy :) yine bekleriz
As an Turk these are what I can say
-This crisis is not economic but political
-Guaranteed Interest system is an joke, it only works with periods of 3 months and more but 96 percent of the population has an period of 1 month
-Dollarization is itâs highest since 2002 even some companies, mostly tech based ones are using an system of Argentina to set prices.
-After the new system was announced by the Erdogan. Banks started to give interest rates up to 20 percent for a monthly period.
Basically they increased the rates, but to not be seen politcally absurd to his supporters Erdogan did this in a sneaky way. Everthing is same but he opened door for hyperinflation
If it's political problem then it's still an economic problem.
I think he meant that the finacial problem is caused by political problem thus cannot be fixed by just thinking about economics
@@yavuzcelik3987 Ahh I see, when it's put on that way.
Guranteed interest system works same way as hyperinflation.
As per guranteed interest scheme. The govt will pay the depositors extra money, if the lira prices gone down.
BUT, where did govt gonna get these extra money from? If it starts the money printing machine Go Brrrrr...And give that extra cash to guranteed interest depositors. Than it gonna create more money supply in system. Which means, more inflation.
erdogan did so well in his first 15 years, not sure why he became so stupid recently
:( insanların bizi böyle tanıması çok ĂŒzĂŒcĂŒ umarım birgĂŒn TĂŒrkiye duzelir
Onceden tanimiyorlardi bile bosver
@Mutlu Son mutlu son
@Mutlu Son DĂŒzeltilir yeter ki ĂŒlkesini seven insanlar iktidara gelsin
Aynen
@@fakabasmasa2529 jfkdkxlldl
DoÄru dedin
Sadece İstanbul vardı
That was on point! Thank you for sharing đ
If inflation isn't dealt with, no domestic policy can keep the currency from falling. Any decline in supply of Lira due to citizens no longer converting their savings into USD will be exceeded by foreign purchasers no longer willing to offer as much foreign currency for the same amount of Lira as the purchasing power of each Lira precipitously falls.
"If inflation isn't dealt with"....oh its going to be dealt with....but you may not like the result.
@@jeanpaulfelix4095 Well I've shorted the Lira against the Yen so if inflation gets worse and it causes the Lira to plummet still further I'll be in the money.
Inflation can be dealth with easily, the issue is that the politicians (and the many monkeys that vote them) won't like the solutions.
@@vezax8505 The range of effective solutions shrinks depending on how bad the situation is. You have 6% inflation you can pull that in with just monetary policy. You have 25% inflation you'll likely need some serious fiscal contraction as well as monetary policy. You have four digit inflation or higher and you're probably better off abandoning your currency and using USD or Euros until the political situation stabilises and you can reintroduce a new domestic currency.
This video has many faults.
1. Turkey is a upcoming economy not a Industrial State, comparing it to Industrial states like Japan and USA which have to do economcs diffrent then a upcoming economy State is total nonsens and shows the western bais against a Islamic Government. Ergo cheap western proapangada.
2. Erdogan is in position of power since the early 2000 not since 2014, i just love how you dont mention him about the good stuff you mention in the early 2000s but somehow mention him in 2014 when its about to go talk negative. Again western propaganda BS against a Islamic leader, because of deep cultural rues of Islamophobia.
3. World inflation because of pandemic is completely ignored if Turkey is in question. Another western propaganda bias.
The government guarantee sounds like a horrible idea to me...
They will have to release new money into the market to do this. The higher the inflation, the more money they will be forced to create, increasing the money supply further.
Which raises the inflation... So the government is making a promise to keep increasing the money supply as inflation rises. A positive feedback loop! Am I right?
I also thought the same when he said that government is trying to do that.
Odd policies these are , if they want to lower their currency đ· then they could have done it slowly and over 3-5 years would have been better and would have let them transition easily.
the value of money does not directly correlate with its supply. It correlates with trust.
The funny thing is it has been tried before (in Turkey). And the guy who ended it said it was the dumbest and most hurtful idea to the nations future.
@@speckbacon9881 yes it does not but a currency depreciation over longer period slowly doesn't spark such mistrust that we are seeing now , it is all about trust and public opinion.
@@tunahanyaylan340 yeah i still don't understand what government is trying to achieve, just lower value of currency or growth .... đ
I've been binge watching your videos so fast, I'm not taking time to thank you but thank you!!
Always interesting, thank you.
âThe unemployment skyrocketed to 14%âŠ.â
I would love to have that unemployment rate! Ours in South Africa is officially above 30%, while the youth unemployment rate is about at 60%.
It is only that "low", because people leave the country towards the EU.
Goodness.
It's not that good compared to South Africa. The data is skewed. TURKSTAT, the agency responsible for inflation and unemployment calculation, is heavily influenced by the government.
@@Theactualstoic Yep, there's a sense of entitlement for high salaries in SA but the workforce is underkilled because all the skilled labor could see what was coming and have left. The SA government are a bunch of thieving scoundrel's the likes of which only introducing a death penalty for corruption will solve. The government now cannot get by on the few private entrepreneurs taxes and are facing disaster after living off the fat for 20 years without any infrastructure improvements. The future is bleak.
According to Turkish government, anybody who is not seeking a job through state agencies is not "unemployed". The real unemployment in Turkey is way above 30%,, nearly 60% youth unemployment
Turkey has some of the most dramatic and precious archeological sites in the world also. It's unfortunate they are having such issues.
same with middle east. Mesopotamia is one of the first places we know of that civilization existed, and good luck doing any further research on them
Most of them are actually ancient Greek & Byzantine sites, from way before Mongol Turks ever appeared in the area.
@@zadaofficial8091 Yes, that's true. Thank you for adding that.
Iâm currently in turkey on a 1 month holiday in Istanbul.
I can confirm my local kebab shop prices have risen as follows.
Day 1 - 50 lira
Day 7 - 60 lira
Day 14 - 75 lira
Thatâs a 50% increase in 2 weeks
Respect from Turkiye, you painted a totaly right and spot on analysis.
How much stock footage do you need for this video?
Economics Explained: Yes
I am Turkish and i live in Turkey. Current interest rate of 14-17% are well below the inflation. So if i deposit my money in a savings account, i lose my purchasing power. That is why most people stay on USD, EURO, GOLD etc.
Haha USD, EURO, there being destroyed, they have 0% interest rate for burrowing, do u know what that does to money
buy bitcoin to save your money
â@@MrJustin259 I am not saying buying USD-EURO is the best option. Thats what people do. I prefer stocks.
@@lukainteressado.3202 Exactly, for long term it's going to dominate almost everything else and cannot be stopped as it's non-centralized.
@@tolkien11 how are industry doing over there? Are stocks an option?
Can you make an updated video on this topic please?
Thanks for EE, would definitely connect with you in future..
As a Turk, i can confidently confirm that our current government is licking dog poo on economics, so much that a normal burger king menu is 100 bucks here
As a Turkish person living/working abroad right now (as an engineer) because of the economic issues, i really appreciate this video.
P.S.: in Turkish, the name of the country has always been TĂŒrkiye (which is kinda pronounced kinda like Turkeeyah)
Interesting. In Portugal we call Turkey "Turquia". That can literally be read as "Turkeeyah". No name change here I guess.
In Italy we have always called your country "Turchia" which is pronounced very similarly to TĂŒrkiye.
It seems TĂŒrkiye has so much potential, but the political class is being very confused, if not misguided at times.
(We are not any better though)
Yea wikipedia says "Turkey adopted its official name, TĂŒrkiye Cumhuriyeti, known in English as the Republic of Turkey, upon the declaration of the republic on October 29 1923."
Im pretty sure most Arabs call it Turkia too
The name of a country in its own language does not always work in English, and insisting on having the native spelling be the official spelling of the country is not helping. Some times, there are significant differences, China being one of them, Spain, Italy, Norway, Sweden you name it. Deutschland is called Germany in English - so, I don't get why insist on a spelling that will confuse English speakers.
Really excited for some new videos!
Lovely work!
Yesterday i paid 100 liras (the financial equivalent to 100$ in the us in relation to buying power) to order the cheapest "menu" on KFC and a pizza from the local pizzeria. The burger was the size of my palm, the pizza was missing its toppings. Feeling robbed, today i decided to just get instant noodles for lunch from now on, since they were sub 1 lira last time i had checked, it simply couldn't have gotten as bad. The grocery store was out of instant noodles and feeling obligated to buy something before leaving, i wanted to buy some snack to keep myself from starving. With the 10 liras in my pocket, i could barely afford a "king size" bar of chocolate (apparently we call normal size bars "king size" now because even the chocolate bars have shrunk, they were the girth of a finger).
I don't even struggle financially (yet), it's that the economy has gotten so bad it's morbidly depressing for even the son of an above average salary household. I feel stuck in some sort of an experiment. I watch videos about life in Burundi to feel grateful that i have a roof over my head and i can still afford to have 2 healthy meals a day no problem.
Just move somewhere else. I know its your country and your home, but it wont help you if you are going to suffer that much. European industrial countries have large turkish communities and they need workers. So...
@@Gentleman...Driver the thing is we dont have money to move so we are just watching as time flies.
@@gamemaster54_TR You don't need money to move some other country. Companies that hire you will pay for your expenses. That's how it goes. In other words, you need to be qualified and educated to get a job abroad.
100 tl ye de gidip pizza hamburger alamıyosan o biraz senin ahmaklıÄın. Tamam Ćuan herĆey berbat ama iyice abartıp ele acındırmaya çalıĆmanın da lĂŒzumu yok
@@Gentleman...Driver OR instead of leaving, Turks should vote out Erdogan out of power and then stabilise the economy.
I live in Turkey and itâs a shitshow nowadays. Itâs scary to think that you may not be able to go to school next year cuz it will get so inflated that you wont be able to afford it.
Man im really sorry about your situation , makes me grateful abuot where I live
You pay to go to school ???
@@wankawanka3053 I go to a private high school because the public ones aren't exactly great
@@wankawanka3053 All public schools are turned into Imam Hatip (religious schools)
School ? you must be joking right ? who want to go to the psychologically created marxist antiwestern prison torture camp schools
Great video and awesome content, love economics explained. CIA says different about that total GDP/PPP for 2020 tho.
That inflation proof account was tried by Brazil on the 80s. It was called âovernightâ because the value was corrected dayly
Comparing yen to dollars value wise is a bit deceptive, their currency doesn't bother with decimals so one yen is roughly equivalent to one cent.
The point was, a hundred to one is something you can think of like that.
But no one takes seriously a currency that goes in tens of millions to get one dollar.
He was comparing the yen&dollar ratio to old lira&dollar ratio, which was a preface to renewing the currency into more manageable rates. :)
Watch again from 6:20 with that in mind
No, the yen was essentially the same as a dollar. When it was first introduced 1 yen was about 1 dollar. Even up until about the 1930s 1 yen was still worth about 50 cents US. They used to have smaller currency, called the sen (100 sen = 1 yen).
It's not that they don't bother with decimals, it's just that the value of the yen dropped so much, they removed the lower currencies from circulation.
Imagine if the US dollar dropped in value so much that 300 USD was equal to 1 Canadian dollar. Where it costs 900 dollars for a Big Mac, and you are making 3000 dollars an hour. Nickles, dimes, quarters, etc would be worthless, and cost far more to produce than they had in value, so they would be dropped.
@@SakuraKjp That's too far back though. Yen has only appreciated ever since Allied occupation of Japan ended. It used to be 300 yen per dollar 50 years ago
According to TRT everything is alright.
Trt is more fixated on other countries then its own country
I guess, it's the same in any country nowadays.
Our local mass media also like to say, that everything is good, even though local currency inflated for 300% in 15 years...
Hey , you here too đ€Łđ
Great video!
Avarage Ahmet in Turkey : Gov stop I am litteraly starving
Gov : Ha ha space go brrrr (space will not go brrrr , probably)
I don't think they care about space but prices are about to have a visit to moon.
Iâll say it again, I looked forward to retiring, moving to Turkey (which I love) and spending my latter years in the culture and ambience of the marvellous country. Then Erdogan was elected. I didnât think twice about postponing my move, I hoped his reign would be short, he amended the Constitution, had himself appointed for life, purged the Public Service. Now I know, Erdogan has ruined a generation of growth in Turkey.
Let me help you. Albania. You're welcome.
Tbh growth will come fast because this crisis is made by Turkey not by consequences and it can be reversed easily. I wish you come to Turkey but come after erdogan :)
I feel like Erdogan read a book about the Nazisâ rise to power and thought it was an instruction manual.
@@starwarzchik112 itâs more like the desperate gasp of the reactionary right as they feel the country evolving and slipping from their control, together with religious nut jobs and those who use religious nut jobs. Itâs very sad, millions of people will suffer, their savings will disappear along with their chances of a future for them and their children. Watch for Turkey to pick some fights with their neighbours, common tactic to take attention off the mismanaged economy and to justify the losses.
You are lucky that this didnât happen after you moved there.
I know a few people who have lost everything.
EE: âAnother yeahr is coming to an end.â
Meanwhile, it's January. :D
Ah, give or take a month...
Time flies :)
EEâs Fiscal Year, bro!!
great video, congrats
thanks for information
Romania had the same borrowing issue up to 2007. after 2010 no loans under 200.000 EUR would be issued in currency other than the Romanian Leu
Around 17:00 - that's what Brazil did from the late 1970s until 1994. We did not use the US$ price but inflation: deposit accounts would receive interest rates plus "monetary correction". That created two problems: started the inertial inflation and caused wealth concentration since those with less money could not open deposit accounts. Later, when inflation got larger (300%/year) there were daily systems to insulate money from inflation (this required more than just a banking account but also a minimum deposited in the bank). All I can tell is: it did not work.
Congrats to everyone who contributed to the making of this video! It is such a good summary of what has happened and is happening the Turkey in the last years. A good source to get information. đđŒđđŒ
Are you from Turkey? Can I ask you a question?
As a Turkish engineering student, i am really upset... :(
Who doesn't same man
Islamic finance: "it's not intrest I promise, but the payments & terms will be the exact same"
Like "fasting " for a month with a huge meal at daybreakđđđ
@@cedriceric9730 đđđ
Islamic dating, islamic music, islamic weed and islamic cigarettes. Islamic bikinis, islamic porn and islamic wine.
Finally you made a video about the bullshit that is happening in my country. Thanks man!
So how does it work? Do they increase your salary every day/week/month to keep pace with inflation?
@@Wordsalad69420 Well I'm an university student so I don't work but as far as i can tell, everyone is having a similar paycheck. Right now, more than 50% of turkish workforce earns minimum wage. Private sector just gives you little above min wage for specialized work. So you get the same wage as janitor despite being an engineer or something.
The government increased min wage by 50 percent in december but it wasn't enough to balance the rising prices. Even though the currency kinda stabilized, the prices still go up and our purchasing power decreases. It's so bad that people started to took their lives.
Oh also we are having a huge brain drain obviously. The future is bleak but it's even bleaker for my country.
@@kesorangutan6170 what are your plans after university? Will you stay in Turkey to work or move to EU as part of the brain drain?
@Jan Luca Basile Gambino Uhh, I blame him.
â@@Wordsalad69420 ahaha good joke only label prices and taxes growth not salaries. Actualy salaries too 2800 to 4250 now but nobody give this money. All boss says samething "I give u 3500 or you leave, i can work with Syrians or Afghan workers" so now university graduated people working in markets. Really good educated people(graduated from better school & senior experienced people) leaving from Turkey. Doctors, Engineers and Teachers they are all gone. Now Turkey had less skilled, not smart, bad educated, inexperienced people. Most of them too prefer to clean uneducated western people bath like when Soviet Union last era. In Turkey now ignorance is bliss, being educated is a curse. Think like this 9 years old kids are talking about politics and economy, this is not casual thing.
Salam 'alaykum. Gecmis olsun, Turkiye. Ben Endonezyaliyim. Turkiye seni seviyorum.
Many moons ago I worked in the oil industry and if you sent a shipment to Turkey it was too much for the system to handle, so it was reckoned internally in kiloliras. I think a bit later they crossed some zeros off and introduced a new lira.
P.S. it's -> its
Finally, the long-awaited video on Turkey!
Nice video. However, there is one important piece of the puzzle that is missing in the video. While it is true that AKP has reduced public foreign debt since 2002, they have relied on massive privatization of valuable public assets such as factories, ports, mines and other economic enterprises that had been run by the state. Although I'm not against privatization in principle, I prefer to approach the government's privatization policy very cautiously.
Just want to give another perspective of state owned companies. My country have massive state owned company where I could say it almost looks like a socialist/communist state where it is SO big and widespread sector. The problem is that state owned is really prone to corruption and because they're in gray area where they can be said as half government entity half company, they're almost as if immune to corruption law. And without stockholders/investor who have their capital at stake, basically the stake holder just sucking all the company money. For example the airways here, despite one of the best in my country, NEVER gain profit and almost every couple years need government injection to keep it afloat. But still we cannot say if it happen in my country it surely will happen in other's. Have a good day
@@ilhamwicaksono5802 in Turkey they have the idea that governments should make factories and never privatize them. They know government led companies are prone to corruption, mismanagement and cliĂ«ntelisme. Still they want state owned companies. I think they donât understand that building a factory doesnât magically make money. That you have to compete with other factories across the world and that a factory could cost the taxpayer money instead of earning money for the taxpayer
@@lazgkhn
1. ATATĂRK
2. Kuran (Quran)
3. Allah (God)
4. DEVRÄ°M (Revolution)
5. HALK (People)
6. FABRÄ°KA (Factory)
7. YERLÄ° MAL (home product or domestic goods)
8. EĆÄ°TLÄ°K (Equality)
Bunları her yorumda, videoda, community de söyle senden iyisi yok (Say these all the comments, videos, and community nothing better than you.)
Privatisation always leads to higher prices for consumers and more money stuffed into the bags of capitalists. Although corruption is a problem, capitalism is also as corrupt as can be.
@@grygry12345 hayatimda okudugum en gereksiz ve otistik yorum.
To summarize, Turkey has a huge potential, but the president cannot use this potential. Even, knowingly and willfully leading to collapse.
Excellent.
For the national leader board, can you add the year the score was given to each individual country?
NZ's rating makes no sense, they will be clobbered by China's economic freefall.
This video has many faults.
1. Turkey is a upcoming economy not a Industrial State, comparing it to Industrial states like Japan and USA which have to do economcs diffrent then a upcoming economy State is total nonsens and shows the western bais against a Islamic Government. Ergo cheap western proapangada.
2. Erdogan is in position of power since the early 2000 not since 2014, i just love how you dont mention him about the good stuff you mention in the early 2000s but somehow mention him in 2014 when its about to go talk negative. Again western propaganda BS against a Islamic leader, because of deep cultural rues of Islamophobia.
3. World inflation because of pandemic is completely ignored if Turkey is in question. Another western propaganda bias.
@@ajdinyavuz7575 1.Islamaphobia is a fake term. Thereâs no Christianphobia because that would be retarded. Some people just donât like other religions simple as that.
2. Erdoganâs policies have without a doubt caused the current situation. Heâs a populist and they are almost always the ones to blame when it comes economic issues.
@@ajdinyavuz7575 Lol interest rates in other countries went from 3-5 to 8-9 percent meanwhile in turkey it went from %18 to %36 (most independent sources claim %80 infliation)
@@ajdinyavuz7575 erdogan n his first 4 years followed the derviĆ plan which he had nothing to do with. After he started making his own policies country's economy declined incredibly.
A correction: The new savings account gov. just launched, itâs not usd value change over interest, it is either interest rate (%14) or the converted usd value (at the end of the term), whichever is higher. It would be nice to have both on top of each other, the system might have actually worked though. đ Thanks for the great content. đđ
Double stacking seemed insane! 200%+ doesn't seem sustainable at all.
They wouldn't go up to 25%? That's the incentive that would pull in foreign investment overnight đ©âđŒđșđČâïžđ·đș
Make Turkiye Islamic and we will see the good outcome.
@@arolemaprarath6615 You wanna ask the audience or lock your answer? đ€Ł
@@piuthemagicman Turkey is islamic
Please add date of the video in pinned comment. Sometimes YT doesn't show date video was released and for such dynamic stories like this one it is very relevant. Thank you for content! Huge fan!
Ah yes, smoothbrain dictator is always a timebomb.
A devaluation of currency can be a strategic advantage for exports as long as livelihood for citizens isn't impacted which in the case of Turkey it has been devastating.
Not when your primary inputs are imported materials and energy.
Why Turkey Is Not Fixing It's Hyperinflation Problem.
Why???
So they could blame it on the USA/EU/Democracy/Neighboring Countries/International law
Anything but themselves
It is weird thing to do in times when there is basically lack of supply of everything and people are waiting more than a year for single car
@@upvotecomment2110 I definitely donât think thatâs why, I donât believe they would do that if it negatively impacts there citizens which it really has. Besides they donât get anything out of blaming other countries, those countries arenât going to do anything about it.
@@I_like_Plants130 Better question - Is the ruling party conserrvative? Then there you go.
Dude the footage is so nice i find it hard to listen.. and the tiny little part of my brain that can do economics can't keep up. would love to see some explanatory diagrams interspersed. But great vides overall really like them :)
Hey bro, I just wanted to mention you're the first person to show Izmir in a video about Turkey
It's interesting how English is the only language in the world where people from a country can decide what their country is called in it. They declare that the English name is Turkiye now, but it'll still be called the local variant i.e. Turcia/TĂŒrkei/Turquie/TörökorszĂĄg/etc everywhere else.
It can't. It's just a stupid thing to make headlines in nationalistic papers
Sweden currently has a debate if we should call Belarus Belarus or Vitryssland(White Russia)
English is very commonly used (almost everywhere). In fact most world leaders donât even need translators anymore.
Although I assume it was because different languages pronounce things differently, so they changed it to be more closer to the nations first language.
@@Dhjaru belarus also means white russia (BДлаŃĐ»ŃŃĐžŃ)
@@Arturo005100 yeah i know but from what i understand they have slightly changed the pronounciation inside belarus to change it from what white rus would be
âCould this be a sign of things to come in our own economiesâ. - Interested to hear more on this topic
ja
Not from this kind of channel. I mean, come on, if you're surprised about Turkey, you haven't looked at it for a decade.
Did you know Ukraine now hates Russia? Because they literally annexed part of their country and are supplying weapons and actual troops to two other parts of it?
Wow, what a surprise, could this be a sign of things to come to our own parts of the world?
As a Turkish citizen, I can pretty much say this was on spot...
Greetings from Turkey, thanks for this wunderful video.
Metin have some dignity. And respect yout parents. The Collonial Masters would slouther you last.
Think about it. Where was progress
in the last 50 years when they controlled the Army from outside ??
I like the structure of chapters in the video as guiding questions structure, but could you add those chapters also in the timeline for the video, especially when answering them. That would be super nice.
As a person living in Turkey, I can say that the country is beautiful, there are many places to visit in terms of geography.but the country is in an economic crisis, I cannot travel as a person living in turkey, but if you come, you should visit because your money has value :)
profil fotosunu alabilirmiyim senden?
Adana???
Take it chronologically :
financial and military crisis in eastern Mediterranean
Tunisia
Egypt
Greece
Cyprus
Syria
Libya
Lebanon
Turkey
You donât need money
I last visited in 2018, looking at hotel and resort prices it is slightly more expensive now strangely.
Whatâs the reason that makes you think Turkey is in a hyperinflation problem??? We have an extremely courageous president. We know everbody is afraid of him, donât need to hide it. You uploaded that kind of video so that everybody can think Turkey is not as powerful as past but we are much more đȘđŒ
Despite the high inflation rate, they are still developing pretty well.
It also needs to be pointed out that inflation has a long history in Turkey. From the early Ottoman times, Turkish currency has been under pressure by both influx of precious metals from the West and debasement practices of Ottoman government. This is claimed to be the underlying reason for Turkish people's unwillingness to keep their savings in lira, which could mean the new measurements were doomed from the start.
Also, thanks for using visuals from my home city, Ä°zmir! It is so sad that whenever a video is made about Turkey, all we see is Istanbul.
debasement of coins? What a long-standing Roman tradition.
Sanayi devrimini kaçırmamalıydık...
Turkey has an even bigger problem and it's its obsession of making almost all of their regulatory requirements (food, export, import, chemical, etc) having to be certified by a local body. A lot of big corporations try to avoid Turkey at all costs.
Worked for the UK..
Surprisingly the UK is very lax with regs and that went both before and after brexit.
But they don't require you to have a UK certified resident to approve every single one of your regulatory documents.
Turkey will stop a shipment if it doesn't see that without even reading the docs. It is insane and as i said several multinationals just avoid Turkey altogether.
It's called systematic corruption ^^
That's not a major issue at all
I honestly hope that works out for them.
like the Australian humor. thanks mate
You need to put the chapters in your video line most other CZcamsrs do these days
I've heard and seen a few things about Erdogan not raising interest before, but only with "it's a bad idea" as a foregone conclusion. Thanks for providing a different perspective on why it might be a reasonable choice in the circumstances.
"Reasonable choice" is poor wording. You don't go around pleading Turkey to make a "reasonable choice" with their other articles of their faith, so why would the ban of usury be any different? Going against your faith isn't some economic choice, your faith is literally meant to be a value base that transcends what is economically profitable.
He isn't wrong. Sooner or later the interest will cause problems. It might float your economy temporarily but will result in economic crash. Simplest explanation is understanding what actions generate value. A shop keeper earns because he is providing service/value to its customers. On the other hand interest is money out of thin air. You just need to have money to earn money. Provides no service/value to economy.
@@returndislikes6906 Interest does provide value. It is the same idea as rent. Even though I charge someone $1000 a month to live in my apartment, at the end of their stay I still get my apartment back. If I have a car and let tourists rent the car, I get the car back still. Sure, I have to pay amintenance/gas, but of course I charge more than my costs to make a profit. Interest is simply renting money. I still provide a service to my customer.
....ok, that's terribly reckless if you ask me.
he has no reason, trust me.
My friend once invited me to an Islamic finance convention and all the while listening to how it works, I kept saying to myself that was simply interest masked up with bullcrap.
They disguise interest as "profit sharing"
Just because they call it "inlamic financing" doesn't mean it is. Profit is not allowed to be added on a loan in real Islamic financing - that's your first clue.
nice content! make a video about Greece too thx
Just to clarify things, Turkey didn't actually suddenly change it's name, in Turkish the name has been TĂŒrkiye for centuries. They just passed a law requiring all foreign spellings of the name must be the same as the local one, just as the Czech Republic (now Czechia) did a while back. It's the same story, same reason.
Only 1 century actually
If your nation exports more than it imports or it is self-reliant then it is not so bad to devaluate your currency. It makes your goods cheaper to foriegn countries, which brings in foreign currency. Turkey is non of the above.
The sad thingis turkey used to be self reliant. Mostly. But the AKP from 2001 completely devestated farming and idk the english word for it but the best way I can describe is 'animal farms?' Between privitazations , import over export and no government help to these areas they effectively crippled argiculture. It will take years before we can get these back to normal again.
@@berilsevvalbekret772you should farm esrar
@@babagandu what??
spot on, thats what i commented above, only a exporting/ manufacturing powerhouse can do it, like china did that & it didnt harm them infact benefitted them
Good content as usual, mate. Congratulations. However some facts are not correct. Erdogan became president of Turkey in 2014, but he came to power 2003 as a Prime Minister. He has a huge role of the Turkey's economic growth since then. In 2014 he managed co change the constitution and Turkey bacame presidential republic. So he is in power from 2003 till now. It is fair to give Erdogan the credits for the high economic growth as well.
More points than it deserved
I don't understand why every western economist thinks that their version of handling things will fix other countries problems when it's caused by same people
A lot of westerners think that if a non western country legalizes homosexuality and opens transgenders clinics for children, then they achieve the same economic prosperity as western countries.
As a Turk i can safely say that after Erdogan we will face great difficulties. Thank god that i get my wage as Euro and im quite stable but as i look at my friends take a knee because of the incompetent people i feel great shame.
Why is a turk obsessed with American politics? Go spend 100000000 lira on a slice of bread, larper
@@tybahza5643 why is America obsessed with other foreign affairs? Stfu
Reminds me of Malaysia
Maybe he will lose the next year's election.
@@seneca983 if he improves the economy then maybe he can win. Anyways in 2023 turkey can take out its own oil and gas and also charge taxes from ships
This new deposit scheme of the central bank of adding Lira to the pile in case its value has decreased over the period of deposit in a bank is also in a way known in Iceland. Money could be placed into price index tied accounts that would grow or shrink with the fluctuations in prices and currency valuation. Loans have historically also been tied to the index in this way, and the borrower will add extra amounts to the amount due (on top of the percentage interest negotiated in the beginning) to make sure the buying power of the amount payed is never reduced due to inflation. These has historically been the only loans available to Icelanders, but in the recent 6-8 years new loan structures have been available where this index connection is not used. They come with higher interests but the idea is that they are more stable during high fluctuations in the currency.
Didnt this blow up in 2008?
@@gplusgplus2286 it blew up because so much foreign money had flown into Iceland that it surpassed what the Iceland government could do about
The video is great and you did a great job explaining those situations, but my only problem with it is you calling Turkish culture "Middle Eastern". The Middle Eastern Culture is beautiful in and of itself but if you've ever been to a Middle Eastern nation, you would see how different these both cultures are. It is like comparing English and Celtic cultures. Sure, in both cases, two cultures borrowed a lot of aspects from one another but still, they are distinct cultures coming from two different geographies.
True. Thatâs what has been implied in the video I believe, by Turkey making it possible for âWestern societies to experience middle eastern culture without stepping too far away from their comfort zoneâ as Turkey over time partially adapted to the European/Western culture more than other Middle Eastern countries due to its geographic advantage. This created the perfect balance of uniqueness and familiarity for tourists
*Turkey* đčđ·
*Lebanon* đ±đ§
*Sri* *Lanka* đ±đ°
*Pakistan* đ”đ°
*Venezuela* đ»đȘ
*Zimbabwe* đżđŒ
All these countries faces same issues in more or less similar extent
Keep Lebanon and Venezouela, out of your ceepy little group, please. Not same!
That is a brilliant analysis of the situation. Well done and thank you. đđđ
... with brilliant lies maybe
@@Knightfire66 A vague and cheap comment without providing any explanation or any substance. That just shows your level.
I am a Turk and I am 13 years old. The economic situation is very bad. inflation is called 80%, but independent studies say 150%. Even 80% is too much, inflation is increasing day by day and our purchasing power is decreasing. my family earns between 5000 and 5500 dollars a year. some families earn between 3000 and 3500 dollars.
İngilizcem yetmedi acaba ne anlatıyor videoda kısaca.?
What matters is the king got his 1100+ room castle
Here before he changes the title from "it's" to "its"