The same time that Erdogan threatens everything and everybody, provoking and dreaming of the new ottoman empire, international press reports are swarming about the “bankruptcy procedure of Turkey, that has already began”.
Yesterday, for example, this was mentioned at the German newspaper Neue Zurcher Zeitung: “Erdogan”, it was mentioned, “it will not be too late that he will have to impose capital controls and pursue growth with low interest rates, meaning de facto bankruptcy. Financial institutions of Europe have a great presence at Turkey and they will have to be protected”, is noted in the same report. And is added : “ The massive devaluation of the Turkish pound, however will be inevitable and this will cause credit crisis in France and Italy.”
The same time Bloomberg reported that foreign investors appear more and more negative at the possibility of a new victory of Erdogan.
The information from Turkey and the economical field report that liquidations at the Turkish stock market have increased before the election and the exchange rate of the pound records historical lows, while the yields of the long term bonds are on the increase.
The same time, as a reply Erdogan, mentioned that the Turkish economy in 2017 has grown faster even than China’s economy. However, the economical analysts claim that growth rates like this are neither viable nor healthy.
At Turkey the measures for budgetary motives had already been announced. Those that, inevitably grow concerns. While the deficit of current transactions is considered to be non viable and the inflation runs at double digit percentages.
Except of all this, Erdogan’s Turkey, has open battlefronts with all the traditional allies of the West, since the authoritarian regime and the megalomania of its leader alienates Turkey, from the USA as well as from Germany and France.
Shortly before the elections in Turkey, nothing has been put on the table. Erdogan has carefully hidden the troubles of the economy under the rug, has not talked about the measures needed to support his country’s economy and, of course, continues to send threatening messages to the West that he will open the border and fill it with refugees and immigrants ..