Is it the end of the Golden Goose

[tribalelder]

PM Recep Tayyip Erdogan spoke on April 29, 2011, at the general congress of the All Industrialists and Businessmen's Association, held in Istanbul.

The Turkish government aims to "decrease both inflation and interest rates," said Prime Minister Recep Tayyip Erdogan on Friday, adding that his primary aim is to cut the real interest rate down to zero in the long run.

Are you relying on interest payments to support your lifestyle...This will bu**er it up!:(

[davybill]

if he go's through with this it will be a blow for the banks in fethiye,and the people relying on the lnterest,
last brit out,turn the lights out,lol

[BM06]

Imo Brian this is all about getting into the EU, good or bad thing? I am just not sure!

[thebillet]

An interesting article here about the appetite for borrowing even with relatively high interest rates. Personally I think the unavailability of mortgages until recently has probably saved a lot of heartache as experienced by other economies.
http://www.nytimes.com/2011/04/26/business/global/26turkey.html?pagewanted=1&_r=2&ref=business

[Scunner]

I think it was a golden egg Brian, the goose itself was 'normal'

[Ovacikpeedoff]

I think that Erdogan is more interested in the welfare of Turkey than a few Brits living in Fethiye.

I really do not know how industry can survive in Turkey and compete in the world market. Turkey is in the Top 20 economies in the world and has the highest interest rates by a mile. On top of this Turkey has near double digit inflation.High interest rates prevent borrowing and this in turn prevents growth. With the age of the population the government must encourage economic growth to create jobs.

A drop in interest rates could easily cause the value of the TL to fall and make Turkish exports cheaper.

I am probably going to get a kicking for this but here goes anyway. I think it is very naive and poor planning to base your retirement solely on the basis of what income you may receive from interest rates. Once the interest stops covering your living costs you are in trouble because you then have to dip into your capital and this in turn results in less interest earned. It just becomes a roundabout that is difficult to get off.

Apologies for being so blunt.

[desmartinson]

quote:Originally posted by Ovacikpeedoff

I think that Erdogan is more interested in the welfare of Turkey than a few Brits living in Fethiye.

I really do not know how industry can survive in Turkey and compete in the world market. Turkey is in the Top 20 economies in the world and has the highest interest rates by a mile. On top of this Turkey has near double digit inflation.High interest rates prevent borrowing and this in turn prevents growth. With the age of the population the government must encourage economic growth to create jobs.

A drop in interest rates could easily cause the value of the TL to fall and make Turkish exports cheaper.

I am probably going to get a kicking for this but here goes anyway. I think it is very naive and poor planning to base your retirement solely on the basis of what income you may receive from interest rates. Once the interest stops covering your living costs you are in trouble because you then have to dip into your capital and this in turn results in less interest earned. It just becomes a roundabout that is difficult to get off.

Apologies for being so blunt.

your not really gordon brown come out of hiding are you Gerry

[Eric]

"I am probably going to get a kicking for this but here goes anyway. I think it is very naive and poor planning to base your retirement solely on the basis of what income you may receive from interest rates. Once the interest stops covering your living costs you are in trouble because you then have to dip into your capital and this in turn results in less interest earned. It just becomes a roundabout that is difficult to get off."

Totally agree with you there Gerry.

[Ovacikpeedoff]

No Des, it is the boring accountant in me. If it was a 2 horse race I probably would back both horses each way.You know what accountants are like. Accountants never make good Chief Executives as they spend too much time worrying about risks. Do not get us mixed up with bankers.

[tinkerman]

"With the age of the population the government must encourage economic growth to create jobs."

What age is the population then?