On Monday, on his return flight from Turkmenistan, President Erdogan re-iterated, to the reporters he carried along with him, his world famous “thesis.”

Stating “Every time since we came to power, I have been stating that ‘The interest rate is the cause, inflation is its outcome,” Erdogan, offering once again “his economy education” and “system of his values and beliefs” as evidence, defended his claim as “If I too have got economy education, and beyond that economy education, if I have knowledge and beliefs in the range of some values, the interest rate is the cause, inflation is its outcome.”

This time, President Erdogan did not contend himself just with it either. Stating “At this time, in a world where global economy dominates, when we look at the US, Europe, Israel, … we see that our thesis is correct,” he added claiming even louder that his thesis has been proven to be correct that it deserves to be named “Erdogan doctrine” from now on.

Right after this speech was heard, one USD, moving along at 12.40 level, climbed up to 12.80.

Yesterday around noon, continuing its rise, we observed that one USD reached 13 TL!

TURKEY WAS TURNED INTO A PARADISE FOR SPECULATORS

Everybody knows that such an announcement would give rise to a new loss of value in TL.

As we clearly understand from this that the government is not in discomfort with the loss of value of TL that reached such a high level. On the contrary, the “economy braggers” around Erdogan claim that the value loss in TL will meet an “equilibrium” after it gets where it is heading. It is understood at least that it is their expectation.

Upon the questions of the reporters, Erdogan said that he would explain his “new economic experiment” on joined broadcasting of known television channels on bi-weekly basis, and some of his consultants would defend “Erdogan’s new economic experiment” on TV channels.

We understand from this too that the value loss of TL against foreign currencies, USD and Euro at the head, as USD runs from one high to another, will continue in the coming days with the attacks excited by  President’s speeches.

Erdogan government, which keeps the inflation at 20% level by means of TUIK (Turkish Statistical Institute), is not able to control the price of USD.

On another front, the economists monitoring the developments calculate that a 10% increase in USD would raise the inflation by 4-5 points.

As a result, every increase in USD, raising the inflation as well, has drawn the country into a trap of exchange-interest-inflation. And therefore this has turned Turkey into a paradise the speculators. Surfing at 3% to 5% waves on daily basis, the “dollar lobby” is gaining wealth over wealth under the safeguard of the claims of “fight against interest lobby.”

IN ORDER TO LOAD THE BURDEN OF CRISIS ONTO PEOPLE, THE GOVERNMENT THROWS THE ‘RESERVES’ ON THE FIELD

Government, accusing the speculators of the increases in USD value with such volatility, and the Central Bank (CB), tasked to interfere in such situations, are not lifting a finger whereas they are to discourage the speculation by making it difficult for the speculators to operate.

Just the opposite, CB, as the biggest USD buyer in the market, is leaving the field in favour of the speculators.

Erdogan and Erdogan-supporters are praising this miserable picture in the making as the country is rising up in prosperity. But, in turn, they throw the “last reserve” at hand into the front.

The “last reserve,” in economic terms, is, of course, the “military” that is the MGK (National Security Council) comprised of the Chief of Staff, and the commanders of army, navy and air-force!

It is a thing unheard of to be in support of the government’s economic policies about which the statement, issued after the MGK meeting of last Thursday, said “The challenges and threats have been assessed that Turkey has met and could run into in the process of carrying out its economic policies that are suitable for its ambitions and  focused on investment, production, employment and exports.”

Because this support given to the government’s economic policies means the “national security threat” proclamation of the working class and laborers rising with their own demands against, and of the economists, opposition party leaders criticizing these policies. That is; the reaching up to such a level to label those opposing to the economic policies of the government as “national security threat” is that the single-man rule would mobilize every power in its reach in order to get those economic policies carried out.

During the flight, Erdogan also gave the good news that the inflation rate was to fall.

From the date Erdogan gave for the inflation to fall, we understand that the government expects the waves in the “exchange-interest-inflation” equation to last until just before the elections.

It is up for a discussion how correct the date Erdogan provided and him in prescribing “these will happen” are. However, once taking into account the attempts that the government made related to its economic policies that needed to pull MGK onto the stage, it is clearly seen that Erdogan government is getting ready to mobilize all powers in its reach to load onto the backs of working class and people the burden caused by the economic crisis and the pandemic.

The aim of this mobilization is to suppress every kind of resistance of working class and people, and their attempts to defend their rights against those policies.

For this reason, the labour forces, unions and labour organizations of labouring masses are up against taking the steps for a total struggle to get the working class and labouring people’s sections targeted by these policies, to move, by going beyond just interpreting and explaining what is going on.

Moreover, labour front, at this phase of the development, does not have any option at all.

The minimum wage struggle will be as meaningful as it is taken up to be a step of such a struggle.