In this video, I talk with author and economic analyst John Sneisen about the terrible state of the Turkish Lira.
As the Lira is about 17% weaker than it was at the beginning of the year, Erdogan and Turkey's central bank is raising interest rates. The late liquidity window rate has been hiked to 16.5% at a recent emergency meeting.
The Lira has fallen to a record low after falling 5.2%.
Turkey's central bank is attempting to do some "monetary tightening" but this is quite futile.
This was bound to happen. All fiat currency eventually reverts to its true value of zero. It always has, it always will, going back to 1024AD in China.
The monetary tightening is simply more centralization piled on top of already extreme centralization. It will postpone the crash all while making it worse.
As John mentions, it appears that Erdogan is hoping for a new Ottoman Empire. Of course we can't lay off blame on the west and the combination of other NATO countries entangled in foreign affairs, but central planning is central planning and it will always end up in a crisis.
