Fools...

Fools...

Hafize Gaye Erkan...

Governor of the Central Bank of the Republic of Türkiye.

She is currently managing this institution and, in this capacity, states the following; 

"...there are currently direct investment offers worth billions of dollars coming from abroad. The World Bank is investing at very reasonable figures to be a part of our country's success story. It is an investment provided as we request it. Furthermore, direct inflows into our reserves that can be made billions of dollars worth of offer letters are on my desk. We, because we want to accept it at the rates we desire and under the conditions we want they keep calling me".

 Perhaps she is new to Turkey, but we have heard these words many times before. So much so that we have forgotten all of them.

 Ms. Hafize is striving to save an economy that has collapsed under $475.7 billion in external debt. Her effort is commendable. However, she is only implementing a high-interest rate policy and a policy of relying on external support. But how far can the economy go with these high interest rates and external support? It is certain that this policy will eventually halt production. Slowly but surely, "StagflationThe country has already entered the '...' process. Because Uncle Hasan the grocer and Master Mehmet the manufacturer are no longer doing business. They are selling whatever they have and putting it into interest. I hope Ms. Hafize sees this detail.

It doesn't work with just the weapon of high interest rates and foreign currency; the economy does not develop.

The country's situation is already dire.

The current account deficit is at its peak. The ratio of exports to imports has fallen from 82% to 70% compared to the previous year. Moreover, this is the 2022 rate. We will see the figures for 2023, which is turning out even worse, in 2024. Let's see what we will see.

The foreign trade deficit is 110.2 billion dollars. This is the highest deficit in the last 27 years since 1996. In other words, while our exports were 254.2 billion dollars, our imports increased by 34.3 percent to 364.4 billion dollars.

Ms. Hafize "there are currently billion-dollar direct investment offers coming from abroad” they say, but then we see that foreign capital coming for direct investment in our country has decreased. While Turkish capital is heading toward direct investments abroad with a 7.4 percent increase,  in other words, fleeing, the inflow of direct foreign investment into our country has declined by 14.2 percent to 5.9 billion dollars. It is not just doctors and engineers who have left our country; businesspeople have left as well. The figures show us that capital is not coming, but leaving.

 Tourism revenues are also decreasing.

God forbid, tourism revenues are at rock bottom because Turkey is turning into a land of immigrants. The French, German, or Russian tourist, while sunbathing by the sea in Antalya, is justifiably uncomfortable with the 1,500-year-old caveman-like Afghans, Syrians, and Arabs watching them.  There has been a significant decrease in the number of visitors to Turkey since 2015. The figures show this. This goes hand in hand with the rate of refugees arriving in our country in 2015.

 What I mean is that the figures for the Turkish economy are not very attractive to foreigners. So, why do the foreign offers that Ms. Hafize mentions come, and what do they come to our country for? Naturally, they come for our remaining underground and surface assets. Ms. Hafize mentions that between the lines as well; “Coming from funds and asset management companies” he says anyway. These offers are coming from fund and asset companies.

 International asset management companies mean firms that seize the assets, that is, the wealth, of underdeveloped countries in the global market. International fund management companies mean blood-sucking firms that exploit and feed on interest in countries with high interest rates.  Global capital's credit rating agency Standard & Poor's changing Turkey's credit rating from negative to stable as soon as interest rates rose Isn't this one of the reasons for that? Isn't the reason that fund companies are being financed from our money with high interest rates? Let us not forget, global fund companies come to be financed, that is, to earn interest, from countries with high interest rates. In other words, they give to take, not to give. You have to be a fool not to understand this.

 In her speech, Ms. Hafize also says,direct investment offers,” she says, “an investment provided as we request,” she says, “to our reserves(meaning our treasury) a proposal letter that would allow for direct entry” she says. “They keep calling me because we want to accept it at the rates and under the conditions we desire” she says. In short, Ms. Hafize means that we will sell our assets for money that will go directly into our treasury, but they are not offering the figures we want.  But Ms. Hafize, who would make an attractive offer to an economy with a debt of 475.7 billion dollars?

Of course they will offer a rock-bottom price. It is very difficult for them to accept on the terms we want.

 That is why we must be careful. Rather than relying on foreigners, we must rely on our own production and our own strength. “If you have a fingernail, scratch your own head” as our ancestors said. And they didn't say it for nothing. After all that has happened, we are not going to abandon our ancestors and believe the Americans. There are shiny offers on the table, but one shouldn't jump at these shiny attractions immediately. Because things that are shiny are not only attractive but also scorching.

 Of course, Hafize Hanım knows Atatürk.

Asking her this question is actually absurd.  Every modern Turkish woman owes a debt to Atatürk. If she is sitting at the head of the Central Bank of the Republic of Turkey, having completed her education abroad and built a good career, rather than being a slave woman wearing a burqa in a cave village in Afghanistan, she owes this to Atatürk. If it weren't for Atatürk, Hafize Hanım could not have become a neighborhood headman, let alone the President of the Central Bank, in the district where the Central Bank is located.

 That is why I say let us take Atatürk as an example. Let us heed his words. He says; “People always want to walk towards and reach shiny politics. Because shiny things are attractive.  But life is not based on dreams” he says.

 Let's be realistic.

Let us support production, support manufacturing and exports, support tourism, in short, support the National Economy and, as Atatürk outlined at the İzmir Economic Congress, let us draw theNational Pact (Misak-ı Milli) of our economy.

As the Governor of the Central Bank, these matters may perhaps be outside of Hafize Hanım's direct duties, but I believe that given her position, she is influential in having decisions made on these issues.

 One must not be deceived by attractive offers on the table, Hafize Hanım. One must not be misled by frequent phone calls.

Because in 1919, we also had very attractive offers on our table, for example. They were aimed directly at our funds and our assets. Moreover, these were proposals that would have gone directly into our reserves (our treasury). The Americans, the British, and the French were calling frequently, sending envoys and proposals just as they are today. You know, Madam Governor, that the British sent an envoy all the way to Bilecik to our doorstep, and you are aware of the attractive offers the French and Italians made to Bekir Sami at the London Conference.

I assume she has read recent history, of course.

 Atatürk rejected all of those proposals. He also dismissed Bekir Sami, who had accepted these attractive offers at the London Conference. And in 1919, he said the following;

 “Fools! They think the country will be saved by leaving it under an American mandate or British protection. They are sacrificing Turkish independence to ensure their own comfort. They claim there will be a mandate that won't touch our sovereign rights or our integrity; even children would laugh at this. Why would the Americans accept such a mandate that provides them no benefit? Are they in love with our beautiful eyes?”

No? There will be no mandate. What kind of delusion and ignorance is this?”

Yes, Ms. Hafize.

There are many proposals on your desk, but why would foreigners offer proposals that do not provide them with any benefit? Why would they call you so often? Why would they bring attractive offers to our doorstep? Are they in love with our beautiful eyes?

What kind of delusion and ignorance is this...

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