Cyprus-Forum.com

[Kikapu]

Oh yeah, things are going so well in Turkey with her so called "economic power"!

Turkish citizens lag in purchasing power
ANKARA - Anatolia News Agency
December/14/2011


A recent study released by the OECD and EUROSTAT unveils that purchasing power in Turkey is way below the level in European Union-member countries. DAILY NEWS photo, Hasan ALTINIŞIK
Only one day after the release of Turkey’s positive third quarter growth data for 2011, Turkey ranked 30 out of 37 European countries in terms of its Purchasing Power Index (PPI) in a three-year study from 2008 to 2010 released yesterday.

The study was undertaken by the Organisation for Economic Co-operation and Development (OECD) and the Statistical Office of the European Union (EUROSTAT).

Turkey’s PPI was calculated at 49, roughly 5.5 times lower than Luxembourg’s 271 at the top of the list, according to the study. The average PPI for the 27 EU member states was 100.

The only European Union or member candidate countries lower than Turkey on the PPI scale were Montenegro, Macedonia, Serbia, Bosnia and Albania, which ranked lowest at 27 points.

http://www.hurriyetdailynews.com/turkis ... sCatID=344

[Hermes]

You can't say they haven't been warned...

Turkey’s economy grew by 8% in the third quarter of 2011, the world's fastest growth rate after China. At the same time, however, its trade deficit is ballooning. A hard landing awaits. When it arrives, Turkish policy makers must accept responsibility - and not shift the blame elsewhere.

BEWARE OF A TURKISH ECONOMIC BUST IN 2012. AND DON'T BLAME IT ON FOREIGNERS

[bill cobbett]

You can't say they haven't been warned...

Turkey’s economy grew by 8% in the third quarter of 2011, the world's fastest growth rate after China. At the same time, however, its trade deficit is ballooning. A hard landing awaits. When it arrives, Turkish policy makers must accept responsibility - and not shift the blame elsewhere.

BEWARE OF A TURKISH ECONOMIC BUST IN 2012. AND DON'T BLAME IT ON FOREIGNERS

It was the Rums that did it!!!

[Maximus]

The ISE 100 is approaching a critical level, if the price breaks 49 500 to the downside, this is a fresh yearly low. The ISE 100 is trading at 50,742 Liras per contract now, down 1.78% for the day and down approximately 30% year to date. Trading volumes have been steadily declining over this past year and the market does not look as if it is ready to support it with enough demand take it higher.

The Turkish Lira is approaching its 52 week low against the US$, again, and it looks like it is getting ready to pop even lower. 52 week high 1.9090, current rate of exchange 1.9024 Lira's per US$.

If you live in Turkey, things are going to start looking and getting really ugly, really soon, just like you where rejoicing in Greece's misfortune, and the miserable union, you will peril the same. Best regards.

[Kikapu]

The ISE 100 is approaching a critical level, if the price breaks 49 5000 to the downside, this is a fresh yearly low. The ISE 100 is trading at 50,742 Liras per contract now, down 1.78% for the day and down approximately 30% year to date.

The Turkish Lira is approaching its 52 week low against the US$, again, and it looks like it is getting ready to pop even lower. 52 week high 1.9090, current rate of exchange 1.9024 Lira's per US$.

If you live in Turkey, things are going to start looking and getting really ugly, really soon, just like you where rejoicing in Greece's misfortune, you will peril the same. Best regards.

And the carpetbaggers in the north along with VP get very excited when the banks in the north pay out 7+ % interest on Turkish Lira accounts, forgetting the 30% depreciation on the TL for the year, as well as the inflation rate hitting 10%. That's like throwing away 33% of their money down the toilet in 2011.

[Maximus]

The ISE 100 is approaching a critical level, if the price breaks 49 5000 to the downside, this is a fresh yearly low. The ISE 100 is trading at 50,742 Liras per contract now, down 1.78% for the day and down approximately 30% year to date.

The Turkish Lira is approaching its 52 week low against the US$, again, and it looks like it is getting ready to pop even lower. 52 week high 1.9090, current rate of exchange 1.9024 Lira's per US$.

If you live in Turkey, things are going to start looking and getting really ugly, really soon, just like you where rejoicing in Greece's misfortune, you will peril the same. Best regards.

And the carpetbaggers in the north along with VP get very excited when the banks in the north pay out 7+ % interest on Turkish Lira accounts, forgetting the 30% depreciation on the TL for the year, as well as the inflation rate hitting 10%. That's like throwing away 33% of their money down the toilet in 2011.

Yes, when you take the exchange rate risk into account, the value of the Turkish Lira has historically depreciated in value against others and you end up with a negative cost of carry. If it was any different, I would be borrwing Japanese yen at 0.10%, converting it into Turkish Lira and have it churn out 6.90% interest per year in a Turkish bank account from the interest rate differential. The rates of exchange would end up killing it though when I come to convert the money back into yen to pay off the Japanese debt.

This does not matter if you have nothing to do with the outside world, but for Turkey, well, she has a widening trade deficit.

[Kikapu]

The ISE 100 is approaching a critical level, if the price breaks 49 5000 to the downside, this is a fresh yearly low. The ISE 100 is trading at 50,742 Liras per contract now, down 1.78% for the day and down approximately 30% year to date.

The Turkish Lira is approaching its 52 week low against the US$, again, and it looks like it is getting ready to pop even lower. 52 week high 1.9090, current rate of exchange 1.9024 Lira's per US$.

If you live in Turkey, things are going to start looking and getting really ugly, really soon, just like you where rejoicing in Greece's misfortune, you will peril the same. Best regards.

And the carpetbaggers in the north along with VP get very excited when the banks in the north pay out 7+ % interest on Turkish Lira accounts, forgetting the 30% depreciation on the TL for the year, as well as the inflation rate hitting 10%. That's like throwing away 33% of their money down the toilet in 2011.

Yes, when you take the exchange rate risk into account, the value of the Turkish Lira has historically depreciated in value against others and you end up with a negative cost of carry. If it was any different, I would be borrwing Japanese yen at 0.10%, converting it into Turkish Lira and have it churn out 6.90% interest per year in a Turkish bank account from the interest rate differential. The rates of exchange would end up killing it though when I come to convert the money back into yen to pay off the Japanese debt.

This does not matter if you have nothing to do with the outside world, but for Turkey, well, she has a widening trade deficit.

Does she ever!

Btw, The chart should be in USD and not in TRY as it states, so basically, the trade deficit is in worse sitution than one would think if it was in TRY.

chart.ashx.png

[Maximus]

notice the pattern from your chart posted above, at the beginning of each quarter, Turkey reports a greater trade deficit than the first month of the previous quarters data. By my estimations that makes January's data a potential new high in Turkeys trade deficit.

[Kikapu]

notice the pattern from your chart posted above, at the beginning of each quarter, Turkey reports a greater trade deficit than the first month of the previous quarters data. By my estimations that makes January's data a potential new high in Turkeys trade deficit.

If last 10 years is any indication as to what holds for the Balance of Trade for Turkey, it does not look very good. It has been negative for each of the last 10 years, going from bad to worse each year, except for 2009.

chart1.ashx.png

[Maximus]

well, its soon likely to cost Turkey a whole lot more on top of all that as the US$ is appreciating in value relative to the Lira.