Turkey is not an economic power, but rather a state whose credit bubble will be exploding any moment and bringing down its economy. The budget deficit of the collapsing Greece compared to its GDP stands at some 10%. At the same time, Turkey’s deficit is at 9.5%. (Israel’s deficit stands at 3% and is expected to decline to 2% this year.)
While Turkey’s economy grew by 10% this year, this was the result of financial manipulation. The banks in Erdogan’s Turkey handed out loans and mortgages to any seeker in recent years, offering very low interest rates. Turkey’s Central Bank financed this credit party via loans from overseas. Turkey’s external debt doubled in the past 18 months, which were election campaign months. Erdogan’s regime was re-elected not because of Islamic sentiments, but rather because he handed out low-interest loans to everyone. Now the date for returning the loans is approaching.
With a weak currency and with a stock exchange that lost some 40% of its value in dollars in the last six months, Erdogan wants to be the Middle East’s ruler?
(Guy Bechor – Ynet News)
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