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Apple stops all sales in Turkey after the collapse of the Turkish Lira (notebookcheck.net)
44 points by trymas 6 days ago | hide | past | favorite | 18 comments

The problem is not Apple, this is just symptoms of the crisis.

Erdogan developing his personal power and doing nonsense in all political fields (military, diplomatic, economic, democracy, minorities...) with the dream to restore the Ottoman Empire with him as a sultan is the major issue.

Turkey is a great country with a great people, but they are living difficult times. A harsh price to pay for following a megalomaniac.

While he has been oppressive, he seemed genuinely popular too.

It is scary how people can make these kinds of choices.

Turkey has a history of currency devaluations. The government is spending too much money on free universal healthcare (Covid did not help at all) and pensions (there are even retirements at the age of 45). So long as they spend more than they save they will have these currency turmoils. Although Government debt to GDP ratio is around 42 percent it is still not sustainable as the currency is not a reserve currency like the dollar or euro. Most of the Asian economies suffered a similar fate in 1998.

is spending money on free universal healthcare bad for people living in a country?

Are you neoconservative living in US? Then yes.

nope. struggling to survive in a hell hole made by the self proclaimed biggest democracy in the world.

Possibly yes, depending on second order effects (eg. more expensive debt in the future, depressed economy,draining savings of people on fixed income)

cool. i don't know what to say. this is like too much to process. you are willing to let the most vulnerable, the poorest of the poor die because they can't afford healthcare because you are concerned it will cause a rise in interest rates in future, economy?

no wonder i live in a third world country where you can get medical attention regardless of who you are.

yeah, last year or so, a scheme was launched. https://en.wikipedia.org/wiki/Ayushman_Bharat_Yojana

cover of ₹5 lakh (US$6,600) per family per year

for a country where unskilled labourers earn "Rs. 500" or $10-12 a day, this level of cover is like magic.

the 50 mil population, almost half the population is covered by this scheme alone, not to mention almost free government paid hospitals and dispensaries and other stuff. do you think for these many people, economy and debt and savings matter when their loved one is suffering and they don't have money to pay to a doctor?

No country or region should benefit from being a reserve currency. The reserve should be sorry to say a crypto currency that can't be willy nilly printed causing pain to those that aren't benefiting from having a reserve currency.

With debt that low couldn't they stop printing money and instead increase government spending?

In an open economy, the money is printed from the public demand. The more demand, the more printing, the more inflation...

And the money demand is controlled down by raising interest rates, but Erdogan has ordered the central bank to keep them low, against the economists consensus.

So massive speculation starts:

People take a loan in lira (i. e. print money), turn the money into something else (buy an object, or turn to EUR or USD for people who can access this market), wait some time, sell back to pay the loan with a share of the value... They keep the difference and start again with more leverage. And the volume of liras increases more for a lower and lower value (inflation).

The only way out is to raise the interest rates before it all goes out of control. The opposite of current policy.

Inflation has passed 45% this year already.

>In an open economy, the money is printed from the public demand. The more demand, the more printing, the more inflation...

Not really? Most developed countries have a central bank that "prints" money by doing interest rate changes, which in turn is determined by inflation rate targets.

Still someone has to borrow the money for it to be “printed”/created so technically it’s correct.

Having a low debt to GDP ratio doesn’t help if nobody is willing to lend you money. The yoeld on 10 year Turkish bonds is ~20%. In contrast it’s way cheaper for Greece to pay interest on their debt despite having an over 200% debt ratio since they can borow with much lower interest (~1.3%).

Having to visit Turkey in the past makes me wonder how far their economy has fallen since my last visitation.

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