Posted Aug 10, 2018 by Martin Armstrong
The Turkish President Recep Tayyip Erdogan’s economic policy is a disaster. This is reflected by his plea for Turkish citizens to search under their mattress for foreign banknotes and gold to convert into domestic currency. It has been his economic policies and dictatorship that is driving Turkey into an economic collapse. Of course, the only way to support the lira at this stage requires a change in government. That is unlikely on any voluntary basis. Meanwhile, President Donald Trump responded to the collapse in the Turkish lira by announcing a doubling of tariffs on steel and aluminum. His logic is that the collapse in the lira would allow them to sell steel and aluminum at cheaper prices. But the logic fails as Turkey in moving into hyperinflation and the economy is just collapsing.
Turkey began its meltdown on target in May. The next turning point was August. The Quarterly level shows a Directional Change in the 2nd Quarter of 2018 and that is when the meltdown began. We will update on the Private blog this weekend on the impact of other markets as the Euro has also collapsed breaking the 115 level. At this stage, there is no hope of restoring confidence in Turkey as long as Erdogan remains in power.