Since the self-proclaimed monetary "expert" and Father of #MMT Warren Mosler said,
"Erdogan has it right"
(to lower interest rates back on March 22, 2021), the USD has appreciated by 145% against the TRY
Easy to say, not stupid enough to take his own advice & buy the TRY
Great lesson not to listen to self proclaimed "monetary experts" who could not even understand on a very basic level that lowering rates devalues a currency and makes inflation worse.
Be careful out there!
I first started warning people on Tradingview back in Nov 2021 this will happen. Like Magic!
Comment
⋅
TRY continues to devalue against the $ with no end in sight.
Comment
⋅
USDTRY Explodes above 23 TRY for $1. As mentioned before with no end in sight.
Another Great Call!
Comment
⋅
USDTRY continues to explode higher 24.35 TRY to buy $1 hyperinflation is in full swing. This show just how destructive #MMT silly theory is and how much it has hurt 85 million innocent Turkish people.
Now that Turkey raises rates by 6.5% to 15% it is way below the 40% inflation. Would you like to buy a Turkish lira knowing you will lose 25% of purchasing power a year from now?
Not to mention the most damaging part is that they have depleted their foreign currency reserves. It's a roach motel, you can check your $ in but you can't check it out.
Modern Monetary Theory is the nuclear bomb of economics.
Comment
⋅
TRY today exploded to 25.50 to buy $1. Thousands and thousands of pips in profits. Once again proving how vital macro economics is to investing.
Comment
⋅
TRY today exploded to 26 to buy $1. Since Warren Mosler (the father of #MMT) said "Erdogan has it right" to lower interest rates inorder to lower inflation. The complete opposite has occurred.
The USD has now soared 222% against the TRY while inflation has hit 86% and soon above 100% as hyperinflation ravages the finances of 85 million unsuspecting Turks which has led to a humanitarian crisis.
Learning how real-world macroeconomics is imperative to successful investing.
Comment
⋅
Beware of false prophets!
Comment
⋅
The Turkish Lira rallied 6% against the #USD after the central bank raised interest rates by 7.5% points to 25%.
The USD gained 223% since Mosler said "Erdogan has it right" to lower interest rates and inflation hit 86%
I have been warning people about the LSE:TRY since 2021 on Tradingview and much longer than that on Twitter and privately. Here are the results since then.
If this theory were true, TRY would not have devaluation in the past when Turkey kept interest rates high. We paid high interest rates and the TRY devaluated. Inflation went up to 85% but now it is at 50%. Also take a look at the stock market (XU100) now. It broke record and new highs will come.
RealMacro
⋅
@PardusPanteri, No nation can print borrow and import to prosperity. Turkey proved that #MMT theory wrong as the as the TRY that used to trade 1 to 1 with the $ started to devalue 2 to 1, 3, 4, 5, 6, 7,.8...19. As a result of printing borrowing and imparting MMT style and currency devalued inflation kept rising. 5, 10 15, 20%. Rates would rise to compensate as they should. Every time rates would rise the TRY would stabilized and even strengthened.
Every time Erdogan started to blame higher rates and started threats to lower rates & Mosler and MMT said "Erdogan has it right" the TRY would crash as investors ran for the exits making inflation worse. 20 30 40 50 60 70 80 86%.
Now Turkey is using limited currency reserves to defend the lira and here comes You, Erdogan, Molser, MMT cheering that inflation went from 86% to 50%. After 80 million Turkish people savings have been destroyed and the US dollar has soared 144% since "Erdogan has it right" call.
However none of you ran out to buy the TRY and have skin in the game while claiming "Erdogan has it right". Do me a favor, go buy the TRY with your life savings like the 80 million poor Turkish people and then come in here and post anything you want. As I told Mosler and other #MMT monetary "experts" to do the same when the TRY was 5 to 1 to the $. Now 19 to 1.
You see? Theory vs Reality. The cart does not pull the horse.
PardusPanteri
⋅
@RealMacro, This is a choice and the process is not yet complete. I didn't buy dollars, I bought gold and I won't. Exports are breaking records with low TRY. We do not want the economy to slow down with high interest rates. We want an increase in employment. We call this a production-based economy. Good Luck...
RealMacro
⋅
@PardusPanteri, Lol! Go buy the TRY with your life savings. Till then I don't want to hear it.
WACD
⋅
@RealMacro, People don't buy the money in a hyperinflation environment. They buy assets. House , car , technology , gold , silver , bonds , stocks etc. Which is why we're seeing the XU100 soaring even higher every week. There is an inevitable economic conversion happening in Turkey , better than later. Consuming economy is out, producing and exporting in. We're determined to make this change. Even if we have to step out of our comfort zone for a couple years... For our children.
RealMacro
⋅
@WACD, Buy the TRY and get skin in the game. Come back when you do and tell me all about your theories. Until then I don't want to hear it. Nor does anyone else.
WACD
⋅
@RealMacro, I don't wanna hear about yours either then. Delete all your predictions and calculations and gtfo.
RealMacro
⋅
@WACD, Skin! Get skin in the game. Otherwise shhhhhhhh!!!
@PardusPanteri, Some people think that the value of the money is everything there is to an economy.. We're seeing the hard truth about the situation in the US.They thought raising the interest rates in a global crisis would bring the inflation back down.. They were wrong. Now they have multiple banks went bankrupt. And it'll spread.. Erdo is doing the right thing but at the wrong time.