London Press "Attacking Turkish Economy"

Article Summary
Suleyman Yasar here accuses London-based profiteers of leading a media campaign designed to to sabotage the Turkish economy and manipulating the Turkish Central Bank. They will not succeed, he claims, because financial discipline in Ankara remains strong.

You might have noticed that most of the recent attacks on the [strength of the Turkish economy] have originated in London. Ahead of the June 2011 elections [in Turkey], The Economist and Financial Times tried to sour Turkish economic expectations to the point of trying to tell Turkish voters who to vote for. They assured us that the elections would result in the formation of a coalition government.

As soon as these [prophecies] failed to materialize and we ended up with a single-party government, they suddenly discovered a new problem: Turkey’s current deficit was too high and interest rates therefore had to be raised. They mobilized credit-rating agencies to pressure Turkey into increasing its interest rates. They have attacked the [Turkish] Central Bank’s new management, criticizing it viciously. [The critics] said [the government] did not understand the interest rate corridor, and that the foreign exchange rate would explode by January 2012. Their local agents threw around rumors of 2.5 [Turkish] Lira to the dollar [the exchange rate is now at 1.82 lira to the dollar]. Naturally, things did not go as they planned, and they are now launching a new wave of assaults.

A journalist at The Independent newspaper wrote that a horrendous economic bubble is looming in Turkey, and that it could result in a disaster like the one that occurred in Greece and Ireland. Fine, but does the writer of this piece have data to back up his predictions? None whatsoever. Turkey is quite different from Greece and Ireland; Greece and Ireland fell into a public financial crisis because they could not sustain their budget deficits and debts and were forced to ask for bailouts from the IMF and the EU. The Greek budget deficit-to-national income ratio stands at 9.5%. Public debt is at 160% of national income. In Ireland, these figures are 9.5% and 102% respectively.

Let us look look at Turkey: The budget deficit is at 1.4% of national income, and public debts are at 39% of national income. This means that it is impossible for Turkey to fall into the Greek and Irish [trap] as long as financial discipline is maintained. Regardless, the data-starved writer from The Independent still sounds his alarm. Assuming that this was not out of pure ignorance, we can assume that his aim was to to manipulate [the Turkish Central Bank], but why?

London has become a center for financial con men. This [dishonest attitude] is in line with how the British are forever evading EU financial regulatory efforts.

Let us remember all of those who fell alongside AIG, MF Global, Lehman Brothers and Bernie Madoff. All of these operations were run out of London.

Similar con men continue to operate in London. They arrange for manipulative articles to be printed about the economies of their target countries. As long as our financial discipline remains strong and the chaotic environment they seek does not materialize, their publications and writers will persist in writing defamatory articles. Their goal is to make easy money off of Turkey by bringing in cheap, fast money from the outside and selling it for seven or eight times more. To make things clear: The lobby working for those who are used to making easy profits does not sit idle - it assaults Turkey from within [its borders] and beyond them. But this interest group will not succeed so easily.

[They will have a hard time because] financial discipline prevails in Ankara, and they face a Central Bank that is independently managed and not accountable to profit-seeking businessmen.

Whatever [these con artists] do, there will be no return to a high-interest, low-parity economic policy.

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