London...

Is a centre where

All foreign currencies are transacted...

bought and sold...

exchanged or lent.

The forefront finance centre of the world, the temple of hot money!

As every minister of treasury and economy has done, new minister Nureddin Nebati also visited the Temple. And he had meetings with ‘foreign investors’ (moneybags).

Mediating the meeting was Dome Group.

Even the meeting organizer tells about many other things before answering the question ‘Why did the minister go to this Temple?​’

Dome Group is the first investment bank in England with capital from Turkey. Main shareholders are

Hüsnü Özyeğin and Ferit Şahenk

The founding vision of the bank was announced as: “to provide foreign finance opportunities for companies from Turkey.”

It seems quite ‘normal’ for the bank with such a founding purpose to mediate such a meeting. However, when the situation is looked into from the angle of the debt of Şahenk Family to the banks in Turkey, it reveals itself differently.

Doğuş Holding owned by Şahenk Family...

Despite that it realized almost $8 billion revenue out of the sale of Garanti Bank...

It is a holding that re-structured its 2.7 billion credit debt to the banks, instead of paying it off.

It has not paid off its debt it re-structured it instead; yet on top of that, it founded a bank in England.

Şahenk has established its bank in England, but for its credit debt in Turkey... It sat on the table with the banks to re-structure it for the second time.

When this photograph in front of us is looked at, we see this: State requested from its debtor not to pay its debt, but to mediate a meeting with moneybags.

It is exactly the frame reflecting the world of finance capital.

That world...

Is the world of moneybags enjoying the privileges that tradesmen and farmers don’t have... That is the world in which unprivileged pays for the loots, conflicts of interests or partnerships, hypocrisies of moneybags!

IF GETTING LIRA-FIED, WHY TO GET DALLIED

Let’s get back to the meeting of Nebati looking out from that photograph.

He is a minister who announced “we do not want hot money” as soon as he was appointed. Why would he visit the finance centre of the world?

Moreover, in such a period when ‘lira-fication’ theses fly all over the air!

According to Minister’s assertion..

Meetings were held with high level governors of various banks and investors; the economy politics the government follow were shared with them transparently, next steps were summarized.

Let’s recall...

It had back fired when, in 2018, Tayyip Erdoğan talked in London about the enforced interest model. Erdoğan’s deputy responsible for economy, Mehmet Şimşek had bent over backwards; in an effort to save the day!

Despite that, the rise of foreign currency rates could not be prevented.

Coming to the fall of 2018... The minister of treasury and economy, Berat Albayrak had had to do even much more; during the interviews he had conducted with the governors of 11 funding companies, he had had to promise for positive interest, contrary to Erdogan.

Not contended with it...

Even if it had been cancelled, he had appointed McKinsey as a consultant in economy; to establish a compromise in the interests of the local and foreign capital, and the political power!

Now again... According to Minister Nebati, the same politics, that had back fired at the times, were re-tabled.

We do not know whether the minister had said ‘we have trivialised the political interest’ just as he had in Turkey.

But the model was marketed to the moneybags in the same way as it was done to those in Turkey: Via Chinesisation (cheap labour), the exports will rise. Economic growth will be achieved. If foreign investors so desire, they can get a share of that production leap. We call on you to get your share!

In addition...

Stating “We have realised the politics to stop the foreign currency appetite of residents and companies in Turkey, and to urge them to exchange their foreign currency for TL. Besides this, we have filled the Central Bank vault through the swap agreements with other countries”...

Just as the people of the country were attempted to be persuaded, the thesis of ‘foreign exchange crises cannot happen so easily’ was also renewed for the moneybags.

No way, the sharks of the markets would be convinced of it!

UP TO WHERE WITH A WINDBILL

In fact, the government’s intent is clear.

On one front, by the interviews going with financers...

On another front, by the diplomacy of money requests from other countries...

It is to achieve some stability against potential foreign currency swings, and to stay afloat until the elections.

First they made up a TL savings account indexed to the currencies other countries printed. Interest rate will increase if the foreign currencies increase.

According to a rumour, some TL equivalent to $20 billion have been saved in these accounts.

This enforcement, that is indexed to foreign currencies, and that the incurred interest is to be paid by the citizens’ taxes, is called ‘lira-fication.’ Yet, for TL, it is a devaluation situation whose severity is determined by foreign currencies!

Foreign currency at the hands of domestic banks is coveted.

Companies are offered the incentive of ‘bring in foreign currency, and save on taxes.’

These are also burden for citizens!

Not happening, not enough.

The president of the country requests money from the gulf countries via swap deals.

He is in Saudi Arabia at a time... And in United Arab Emirates at another.

Minister Nebati will also get to United Arab Emirates in no time after London.

This is not a situation to say ‘How nice, he is making a run for his country.’

In fact, money exchange is made just as windmills are underwritten.

It is a conduct that does not go beyond a make-up, but that makes it appear as ‘reserve is available’ in the Central Bank.

The Central Bank’s money is not sufficient for a country that needs $150-200 billion every year (for foreign debt and for the current deficit).

It is clear that that insufficient reserve, just as in the case of $128 billion spent, will also be spent to keep the foreign currency rate at the current levels.

We have seen, from the current deficit of last two months, that...

As the exports of Turkey increase, so do its imports. Because Turkey is a country manufacturing by using still high foreign dependent imported raw and semi-processed materials.

Moreover, it is a dollar-ised country. No turning back from foreign currencies.

As such the situation is ...

Every development in America that would shake the global financial conditions, like increase in interest rate...

Every instability that would take place in Turkey’s region...

Creates a foreign currency shock!

CONSEQUENCE OF ERDOĞAN’S OPPORTUNISM

Erdoğan insists on his interest politics in order to protect the capitalist block around him.

This insistence leads to inflation in a dependent country. As Erdogan tries to compensate the minimum wage-salaries with increases for the inflation not to lead to electorate loss, he is jeopardizing the economic growth.

He is trying to make the credits act as a catalyser for the growth. To this end, banks are supplied with TL with inexpensive interest.

After this tactic, that has had Erdoğan win on elections, debt, high interest and unemployment rates have been left for citizens.

This time, that tactic has already started to have its toll, without going to elections. However, unless a severe crisis blows up, Erdoğan will keep on forcing his way.

Changing ways intermittently...

Throwing goals and made assessments into garbage after some time passed...

Erdoğan will do the same again.

For that reason...

Erdoğan needs the foreign currency of foreigners

Who has shown less interest in Turkey...

Who got out of bonds market, have stayed away from stock market...

Who have stopped to invest directly.

The circumambulation in London, even if it is hypocritical today, indispensable for the long run.

Those over there know what is going on!

Who must really be alert are those sacrificed in that circumambulation; the laborers at the head, the peoples of this country!