Erdogan: the religious roots of the destruction of the Turkish Lira
The Turkish lira, after the announcement of the "Extraordinary instrument" of the bank account with reimbursement of the effects of the devaluation, has started to fall again, although for now it remains far from the minimum of 18 lire per dollar reached about a week ago:
After all, with the Turkish Central Bank which has decided to decrease interest rates in the midst of an inflationary situation, as we can see in this graph from Tradingeconomics
This new wave of devaluation of the Lira reveals the worst, that this time the push will not stop easily with some circus numbers. Yet, as the Wall Street Journal points out, despite this, Erdogan will continue his policy of low interest rates for religious reasons: for the believer in Islam. The so-called "Riba", that is the interest required on loans or paid on deposits, is explicitly forbidden by Islam, and Islamic finance is in fact based on a system based on forward purchases and counter purchases, usually of precious metals. Thus Erdogan sees a religious mission in the fight against interest rates.
The request not to pay interest, also common to medieval Christianity, could be acceptable in a world without devaluation without Fiat money, as the one from the 7th and 12th centuries could appear. Already with the great geographical discoveries and the importation of gold and silver from the New World we are witnessing an inflationary phenomenon subsequently increased first by paper money and then by Fiat currencies. The fight against interest, which is nothing more than the price given to time, risks being a little out of time, especially when it becomes a solitary struggle. The Turks will soon notice.
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The Erdogan article : the religious roots of the destruction of the Turkish Lira comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/erdogan-le-radici-religiose-della-distruzione-della-lira-turca/ on Fri, 31 Dec 2021 07:00:22 +0000.