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Email this6:54 pm
April 18, 2022
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The Turkish Lira has crashed over the past few years why is their real estate market hot, or at least keeping up with their massive 50-75% annual inflation rate, shouldn't their real estate prices be falling by now with the collapse? Apparently if you own real estate in Turkey no pain and suffering you are ahead of the inflation collapse.
That raises the question what other tricks besides housing will the state bank use to inflate debt away, loan cancellation, grants and subsidy. Are they looking at the Loonie licking their chops thinking most people don't have savings anyway.
In Turkey interest rates have soared that has done little for the Lira so why are we celebrating higher interest rates. Maybe their plan is to crash the dollar causing massive inflation to wipe out public and private sector debt.
Is it a case of fool me once, shame on you; fool me twice, shame on me.
9:32 pm
July 5, 2019
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Re: In Turkey interest rates have soared
I thought I'd heard that they were not raising interest rates to the extent expected. Just Google'd it:
"Turkish President Recep Tayyip Erdogan is a self-proclaimed enemy of high interest rates and has pressured the central bank into lowering borrowing costs in his bid to boost growth. He believes high interest rates cause inflation though conventional economic theory says the opposite."
2:44 am
January 28, 2015
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Realestate prices are dropping here and its definately slowing down.There are 5 houses in my hood that have been for sale for over 3wks ,2 months ago the sign didn't even get in the ground and there were multi offers. Today there are no offers its going back to the way it use to be ,your asking 799k I offer you 785k.I believe they have already dropped 15 to 25% and will drop more after next rate increase july 13th
3:12 am
August 10, 2018
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I was in Turkey for 2 weeks in May. Locals are suffering to purchase foreign made goods. In 2 weeks, Canadian dollar went from 12 to 13 lira. Currently 13.3. That is a loss of foreign purchasing power of 10% in a little over 2 weeks.
7:45 am
November 8, 2018
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Meanwhile, in Russia, where they did aggressively raise interest rates to tame inflation, the story is different.
(Reuters) - Russia recorded its first weekly deflation for the first time since August 2021
When Central Bank does its job as it should, people suffer less. Even if country political leadership does something stupid.
7:52 am
February 7, 2019
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Alexandre said
Meanwhile, in Russia, where they did aggressively raise interest rates to tame inflation, the story is different.(Reuters) - Russia recorded its first weekly deflation for the first time since August 2021
When Central Bank does its job as it should, people suffer less. Even if country political leadership does something stupid.
Weekly data can be really noisy. Reading a few paragraphs down : "In annual terms, inflation slowed to 17.51% from 17.69% a week earlier amid a decline in consumer activity, the economy ministry said." Wonderful for Russians ...
| CGO |
8:56 am
November 8, 2018
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cgouimet said
Weekly data can be really noisy. Reading a few paragraphs down : "In annual terms, inflation slowed to 17.51% from 17.69% a week earlier amid a decline in consumer activity, the economy ministry said." Wonderful for Russians ...
Better than 50% inflation in Turkey, won't you agree?
We have a story of two countries, one that follows "can't influence inflation by increasing interest rates" and another that does dramatic interest rate increase to tame anticipated 25%+ inflation, with success.
According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will reach 18.0–23.0% in 2022, slowing down to 5.0–7.0% in 2023 and returning to 4% in 2024.
Not bad for the country that is sanctioned more than North Korea.
8:59 am
April 18, 2022
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kelbee said
Re: In Turkey interest rates have soaredI thought I'd heard that they were not raising interest rates to the extent expected.
That's right I stand corrected but still relatively high apparently. The feeling with inflation seems to be it eventually bites all hands including real estate. I read there is an affordable housing crisis in Turkey like Canada both countries having an influx of immigrants. Still doesn't fully explain the boom in housing there if the majority barely can afford day to day living expenses.
Alexandre said
Meanwhile, in Russia, where they did aggressively raise interest rates to tame inflation, the story is different.(Reuters) - Russia recorded its first weekly deflation for the first time since August 2021
When Central Bank does its job as it should, people suffer less. Even if country political leadership does something stupid.
Russian central bank Chairwoman is Elvira Nabiullina. Putin refused to let her quit. The ruble has been a top performing currency since the conflict started exceeding it's pre-war level. I keep 100 rubies in my wallet given to me by a friend. I actually inquired about buying a property in Moscow or St. Pete. I've been to Ukraine have a few friends there.
8:59 am
February 7, 2019
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Alexandre said
Better than 50% inflation in Turkey, won't you agree?
We have a story of two countries, one that follows "can't influence inflation by increasing interest rates" and another that does dramatic interest rate increase to tame anticipated 25%+ inflation, with success.
According to the Bank of Russia’s forecast, given the monetary policy stance, annual inflation will reach 18.0–23.0% in 2022, slowing down to 5.0–7.0% in 2023 and returning to 4% in 2024.
Not bad for the country that is sanctioned more than North Korea.
Sounds like Alexandre believes in Russian Kool-Aid and all associated forecasts. When are you moving to enjoy all Russian benefits?
| CGO |
6:10 am
August 10, 2018
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Bruford said
I was in Turkey for 2 weeks in May. Locals are suffering to purchase foreign made goods. In 2 weeks, Canadian dollar went from 12 to 13 lira. Currently 13.3. That is a loss of foreign purchasing power of 10% in a little over 2 weeks.
Current exchange rate 13.7 TL to Cdn , 14% depreciation in less than 1 month.
The western economies will soon be facing similar currency losses, if they continue with their profligate spending and reckless sanction policies. Economies built on services, and dependent on US$ hegemony are doomed. Hyperinflation is around the corner people, wake up and smell the coffee.
7:49 am
November 8, 2018
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AllanB said
Russian central bank Chairwoman is Elvira Nabiullina. Putin refused to let her quit. The ruble has been a top performing currency since the conflict started exceeding it's pre-war level.
I can imagine conversation between Putin and Nabiulina went like this:
Vlad: Elvira, why do you want to resign? I gave you excellent marks on your last performance review. Is something not to your liking?
Elvira: I can see hard times ahead. If I to do my job as I should, it is going to upset some powerful Russian people. Those oligarchs who keep their money in stock market.
Vlad: If it were for me, I would not care at all if those are dead or alive. Especially those who fled to London. Ha! You have my full backing whatever you plan to do, and that means I fully support your independence. As long as I approve what you plan to do. What's your plan?
Elvira: At the first sign of accelerated inflation, I will immediately increase interest rates to the level of forecasted inflation. That will make Savings accounts attractive, keep rouble strong, prevent capital flight and panic buying of crypto and sugar. We might have few rough days, but it'll all settle down, when people see what direction Central bank has taken.
As soon as forecasted inflation drops, so will interest rates that I set.
Vlad: What you are saying is...
Elvira: Middle class who have savings in local currency will be protected from inflation, rouble will overperform dollar and euro, imports from China and elsewhere will become cheaper for common folk, your approval rate will skyrocket.
Vlad:Tell me, Elvira, why wouldn't they do the same in Europe and North America, and undermine our rouble by their strong Euro and dollar?
Elvira: Because, they don't have there fearless leader like you are. Also, while we have budget surplus as an oil rich nation, they have enormous budget deficits which high interest rates could make a heavy burden. On top of that, they managed to convince their middle class and retirees, their electorate, put a lot of money in Ponzi scheme of US stock market.
Vlad:I like that. By the way, if any Russian oligarch gives you a hard time, let me know and I'll invite them for a cup of tea with one of my KGB operatives.
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