The last severe collapse of the Turkish lira is the heaviest in 20 years. Erdogan's appeals to his people in the past to exchange foreign currencies in Turkish pounds now give extra weight to the damage. Turkey's crisis today is the same as the 2001 process, which actually allowed Erdogan to take power. But the scale is even bigger.
Turkey is a country where social differences reach huge extremes. When inflation intensifies when the pound shakes and stores each day put new price tags, then especially those who have so far had little to begin with. Today the poor Turks are even poorer, and Allah will not pay their bills. Such crises also do not spare the rich, because most of them have long funded their everyday life or business with the help of lucrative euro-dollar loans or dollars, which now, because of the decline in the Turkish lira, suddenly became unbearably expensive, we read in the comment.
Turkey has a very rich experience of crises. The current crisis leads to the division of society, which can have unpredictable consequences. The new drop of the Turkish lira on 10 August is the most powerful fall in that currency since 20 years. Erdogan has shaped his political system according to his preferences, which has led him to the current economic and social crisis.
The Islamist focus of Erdogan's policy does not help the increasingly troubled Turks. The country's administration has long been in the hands of Erdogan, but this does not prevent disputes between members of the ruling relatives caste. While Erdogan is urging interest rates to reduce artificially his brother-in-law Berat Albaicar, as a finance minister, he constantly insists on the independence of the Turkish issuing bank, which alone has the right to manage the interest.
Erdogan's promises that the Turks would prosper under his rule proved to be a complete lie. The inflation rate of 79%, which accompanies the 2001 crisis, is in the memories of the Turks and is increasingly apparent on the horizon. The previous crisis was also triggered by political factors, whereas in the present they are literally predominant.
Unfortunately, Ergdogan's acute Muslim policy has brought him great problems with the United States, as well as some quarrels with the EU. This makes it more difficult to predict the development of the crisis. The war in Syria has brought further damage to Turkey's relations with its partners and NATO. Erdogan's exploitation has outlined the possibility for Russia to realize its Bosphorus-related interests, which it can not accomplish while Turkey is in good relations with NATO and the West.
It is definitely a spectacular end of the next Turkish economic saga.
