Cyprus-Forum.com

[Jerry]

the tcs are gonna pay a hefty price over this...

Looks like they are paying already, well actually not paying. Many of their "municipalities" could not pay the wage bill and had to borrow extra from the "central government".

http://www.northcyprusforum.net/viewtop ... fb90644b51

[Nikitas]

"10 percent of gross domestic product is the current account deficit,” economist Selim Somçağ said."

Ten per cent current account deficit. Greece had 15 per cent, now 9 per cent, and look where it is. And there is a difference, Greek statistics are now collected and processed by an EU overseen independent authority. I have grave reservations about Turkstat, the authority that collects their data.

But despite the economic problems they will build a fleet that will project power to their "natural" sphere of influence in the Indian ocean.

[Hermes]

Turkey Intensifies Currency Intervention

Turkey's foreign reserves stood at only $85.65 billion at the end of September, which we see as very limited firepower. Reserves have fallen about $7.4 billion (down 8%) from the July peak. According to the latest triennial survey by the Bank for International Settlements, the average daily turnover of the TRY was $14 billion in 2010.

Burning through almost $1 billion per day is simply not a sustainable strategy. In a bit of a backdoor move, the central bank seemed to acknowledge this shortfall by doubling the amount of reserves that commercial banks are allowed to keep in foreign currency. It said that this move could boost central bank reserves by as much as $3.6 billion.

We note that Turkey has moved into very worrisome territory. According the central bank, short-term external debt rose to $84.96 billion, or basically 100% of foreign reserves this year.

This is a very important ratio, and shows how vulnerable a country is to short-term swings in sentiment that can lead to capital outflows and forex volatility. Most in Asia and Latin America have much lower ratios, as Korea and Indonesia are both around 45%, Malaysia, Taiwan, and Thailand are all around 20%, and Brazil is at 20%.

Countries in Europe, the Middle East and Africa typically do not have big war chests of reserves, and so their ratios are typically very high. Besides Turkey at 100%, Hungary is almost 120%, Bulgaria is around 105%, and both Czech and Poland are around 75%. South Africa is relatively low, at around 50%.

Markets have been punishing countries with the weakest fundamentals, focusing on either high inflation, large current account and budget deficits, external debt loads, or a combination of these.

http://www.thestreet.com/story/11268870 ... en=RSSFeed

[Jerry]

Another report that demonstrates the underlying weakness of the Turkish economy.

So much for being a "regional superpower"

Turkey has upped the ante in defence of the lira, but with hard cash reserves far smaller than those of many developing economy peers, FX intervention may not be feasible for long should investors resume their exodus from emerging markets.

Faced with year-to-date lira losses of almost 20 percent to the dollar and rising inflation, the central bank this week mounted its most aggressive defence of the currency yet, selling a record $1.1 billion (715,000 pounds) on Wednesday and Thursday and making changes to banks' reserve requirements.

The action succeeded in lifting the lira well off record lows. But any further FX interventions will put Turkey in serious danger of depleting a reserve stash that is its primary buffer against a large balance of payments deficit.

http://www.todayszaman.com/news-259123- ... ition.html

[Laplace]

Bankers and investors are so pathetically gullible that they're probably the select few that will actually believe - until it's too late of course - all the hype about turkey's economic and geopolitical superpower hype.

http://en.wikipedia.org/wiki/Greater_fool_theory

[Maximus]

Yep,

its only a matter of time and Turkey would be greatful for the kind of support Greece has recieved.

[ZoC]

Yep,

its only a matter of time and Turkey would be greatful for the kind of support Greece has recieved.

greece - and now turkey - getting their cumeuppance after ruining cyprus... maybe that jew from galilee was right:

"woe unto thee, hypocrites! you have neglected the important matters of the law - justice, mercy and faithfulness."

[Capt J Sparrow]

Yep,

its only a matter of time and Turkey would be greatful for the kind of support Greece has recieved.

greece - and now turkey - getting their cumeuppance after ruining cyprus... maybe that jew from galilee was right:

"woe unto thee, hypocrites! you have neglected the important matters of the law - justice, mercy and faithfulness."

Careful Zoc,

this is bound to upset the kalamara Orthodox schmucks not to mention the Archshmuck of the autocephalos Orthodox Church.

[ZoC]

i know idiots like yialoser don't think jesus was jewish but i had no idea thos level of stupidity extended right up (or do i mean down?) to his beastitude....

[Capt J Sparrow]

i know idiots like yialoser don't think jesus was jewish but i had no idea thos level of stupidity extended right up (or do i mean down?) to his beastitude....

I think they believe that He is Greek.

But what they don't realise is this. He had HUGE bollocks, because of what he did, and what he stood for, and for dieing on the cross. So he can't be Greek.

They also think that Cyprus is Greek! How insulting is that?