I gave the cow market for instance… For many who do not bear in mind, learn my few weeks outdated articles. Actually, should you have a look at the articles for a couple of weeks, you possibly can see that I’ve written the pressures and contrasts within the markets.
Let’s remind briefly what was the story of the COW market: MILK obtained from cows was stored low by public strain beneath the identify of preventing inflation. When the milk value was stored low, the factories stored the costs of merchandise resembling yoghurt and cheese produced from milk comparatively low.
However one thing was going flawed.
Farmers had been sending their dairy cows to slaughter and promoting them as a result of they misplaced cash from milk manufacturing. Within the brief time period, meat costs remained comparatively low as each dairy and meat cows had been slaughtered. In fact, whenever you say the worth of meat, the costs of meat and different meat-related merchandise must be included on this framework.
And what occurred?
Instantly there was a scarcity of milk. Even on the identical time, an absence of meat started to happen. Instantly, meat and milk costs started to rise sharply. Virtually stunning value steps had been noticed.
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What you name a market is such a factor. You can’t change the final elements with such exterior interventions.
If you happen to improve the dose of intervention by mistaking the short-term results as your personal energy, you’ll abruptly have a market able to explode. We’ve got skilled and seen this within the COW market.
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With the New Financial system Mannequin or no matter you name it, the Authorities is doing one thing. On the one hand, the Central Financial institution and however, the BRSA intervenes in monetary markets.
You shouldn’t have overseas foreign money to entry TL mortgage
Or you must convert 70 p.c of your export earnings into TL so as to have the ability to use export credit score.
Because the banks give the mortgage curiosity increased than the central financial institution, they’ve to purchase both authorities bonds or TL deposits. Actually, banks are advised to “both trade buyer overseas foreign money accounts or discover TL”.
Markets try to be disciplined as a central path.
Are you aware what’s the level we’ve reached in what they name manufacturing, funding, export, employment and so forth.?
Not even a mortgage is given for many who purchase overseas foreign money.
What does it imply for one thing that does not exist to be low cost?
The administration, which distorts and doesn’t care in regards to the monetary balances for the actual financial system, is now ignoring the actual financial system for the monetary balances which have come.
What a market language to devalue the TL on one hand and to say, however, “The Turkish Century is beginning, purchase this nation’s bonds”. I gave you the chart the opposite day. Why and with what expectation would anybody put money into TL in a spot the place even dry beans earn 10 instances greater than TL?
there’s thoughts
there’s a mind
There’s science
It’s not doable to put money into the markets with a political present. Markets have their very own guidelines and functioning.
So what will occur?
So how far can the markets go along with this unbalanced stick steering?
If you happen to bear in mind, I wrote one thing like this a couple of weeks in the past: At this price, neither TL will stay nor the establishment that can lend TL….
Yesterday, the Basic Supervisor of İşbank kindly and graciously stated this.
“We can’t even give loans to focused sectors,” he stated.
He stated, “What does the cheapness of the mortgage that can’t be given imply?”
A proof which means lots to those that perceive. What if there are numerous who don’t perceive… If the dream world given to the general public doesn’t function within the markets…
What do you suppose might occur?
How a lot strain and synthetic manipulation can markets bear?
I ponder what sort of financial image will we expertise within the days that await us?
Let’s wait and see…
#markets #explode #İbrahim #Kahveci