Turkey’s Currency Disintegrates

 This is a warning for all governments who believe that there currency will always have value.  It’s simply not true.  We watch Turkey since they are a named player in the Ezekiel 38 coalition and we wonder how this collapsing economy might come into play to bring them closer into orbit with Russia and Iran. Just imagine as Americans what it would feel like to have the value of the US Dollar drop by 50% in one year!  If you had worked hard to squirrel away $100,000 into your savings account and by year end it would only buy $50,000 worth of goods, everyone would pull their money and go buy something before the value drops by another 50%  This in turn would lead to even more rising prices as demand for everything goes up as everyone looks to buy something instead of holding savings.  Could it happen here in America?  Absolutely.  “Lay up your treasures in heaven where moth and rust will not destroy them.”

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Another day, another collapse in the Turkish lira, only this time there was a twist: as the hyperinflating currency implodes, Erdogan has finally had enough of the relentless pummeling, and is starting to shut down Turkey's markets.

But first, let's back up: heading into Friday, the lira accelerated its historic descent, weakening past the 16 per-dollar mark for the first time ever, as the central bank's pledge to end a four-month cycle of interest rate cuts on Thursday failed to convince investors that inflation can be brought to heel. That was just the start however, and the currency plunge only accelerated crashing as low as 17.14 just hours later, bringing declines this week to 17%. YTD the currency has lost more than half of its value!

As a reminder, the central bank yesterday cut its benchmark one-week repo rate by a further 100 basis points to 14%, its fourth reduction since September spurred by demands from President Recep Tayyip Erdogan to lower borrowing costs in the face of surging consumer prices as part of his batshit insane monetary policy Erdoganomics whose only possible outcome is the collapse of Turkey's economy and hyperinflation. The resulting sell-off accelerated a 54% plunge in the currency so far this year as real rates fall further below zero with inflation now standing at an annual 21.3%.

https://www.zerohedge.com/markets/turkey-halts-all-stock-trading-currency-disintegrates-central-bank-powerless-halt-collapse