It is said that Turkiye has reached the threshold of national bankruptcy. In 2018, when Turkiye's private debt was so high that the value of the Turkish currency declined and inflation occurred, President Erdogan ordered interest rates to be lowered. The logic was that interest was a sin in Islamic countries. In inflation, it is basic to protect the value of the country's currency by raising interest rates, but Erdogan went the other way. Because of religion, Turkey was also on the verge of collapse.
When it comes to interest rates, we have to talk about Japan. The Japanese government attempted to attract investment by lowering interest rates when Japan's exports became difficult due to the Plaza Agreement. However, the stupid Japanese borrowed money and invested in real estate. The healthy economy, including manufacturing, collapsed, only real estate boomed, and Japan is about to collapse. These days, China is difficult, and Japan is difficult, so the desire for a smooth war seems to be rising between the two countries.
There is nothing like war to stimulate the economy at zero base. Politicians don't think about the tragedy of war.
Keynes, an economist who aspires to be a big government, says, "When the government releases money to overcome the recession, people put their money in the closet or invest in securities or bonds of companies that are incapable of overcoming the recession, resulting in ineffective situations." Such a situation is called a liquidity trap. For this reason, aggregate demand policy, in which the public directly consumes large amounts of money, is said to be more advantageous in overcoming the recession.
A politician with a religious mind or a politician who fails to grasp reality coldly runs on the path of destruction with the stupid people who follow them.
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