The truth about the credit bubble nature of the Turkish economy that Erdogan created

Submitted by Guzel Ankara (United States), Jun 4, 2013 at 06:57

Daniel Goldman, who writes under the pen name of "Spengler", has this to say about the Turkish economy:

" Erdogan did not preside over an economic miracle - contrary to the credulous estimates of many Western observes - but arranged, rather the usual sort of Third World credit bubble, which has left Turkish consumers to tighten their belts in response to a devastating debt burden."

"Erdogan's bubble recalls the experiences of Argentina in 2000 and Mexico in 1994 where surging external debt produced short-lived bubbles of prosperity, followed by currency devaluations and deep slumps. Both Latin American governments bought popularity by providing cheap consumer credit as did Erdogan in the months leading up to the June 2011 national election. "

"Turkey's economy, oddly vaunted as the next China, relies on low- and medium-tech exports to Europe, the Arab world, and the former Soviet Union. It grew as a cheap-labor outlet for European and some Asian manufacturers and sank as the European economic crisis, Russian economic stagnation and disarray among Muslim trading partners shrank its markets. It has a lower rate of high-school graduation than Mexico and an enormous informal economy. A few Turkish universities teach to world standards, but Turkey has nothing to compare to the talent pool of China, Taiwan or Korea. "

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