As the Danger of Global Monetary Contagion Risks Spreading — All Eyes Are on Turkey
For my readers (especially market investors), you should note that I pointed out in an article several weeks ago that Turkey was at great risk of suffering from a currency crisis, and that like other countries such as Iran and Venezuela, Turks trying to protect their wealth would inevitably turn to gold and cryptos. Additionally, much like the Venezuelan government’s newly-created Petro cryptocurrency,, the Turkish government has also considered creating its own state-backed crypto, the Turkcoin.
Sure enough, my predictions came to fruition, and as predicted, crypto markets in Turkey have boomed, and gold trading volumes have also doubled.
I told the founder of Karatcoin, Simone Orso, that while I accurately predicted what would take place in Turkey, I am still very hesitant to write about it. The crisis is literally a day-by-day drama, and of course, any type of long-term prediction or analysis is impossible when you’ve got a wild card and loose cannon like Recep Tayyip Erdogan leading the country.
Things are further complicated by the American government, with President Trump vowing to double steel and aluminum tariffs against Turkey in retaliation for the imprisonment of an American pastor. An escalating trade war could spark a full-blown collapse and internal chaos, but while many analysts predict this could lead to a civil war, you can also tell that many of these analysts are completely ignorant of Turkish politics.
While Erdogan is an unpredictable hot head, he can nonetheless be strategic and far-sighted in his thinking. Most of the Kemalist in the military and government have been completely purged, with many of them being imprisoned for good measure (Kemalism is the secular ideology that Turkey’s founder, Mustafa Kemal Ataturk, preached to the citizenry, especially the military).
In short, Turkey is a very different country than it was even ten years ago, and any prediction that the country could suffer severe civil strife has to be counterbalanced with the fact that the AKP (Erdogan’s party) has been methodically purging political opposition out of the state bureaucracies and replacing them with their own loyalists. Turkey’s military has always been the primary protector of Kemalism, which is why the AKP has been waging a scorched-earth campaign against Kemalist military officers since it gained power (and since the attempt coup against Erdogan in 2016, that campaign has simply been kicked into overdrive).
However, what is undeniable is that Turkey’s currency crisis could spread to other countries, with other national currencies such as the Indian Rupee, South African Rand, Argentine Peso, and Indonesian Rupiah also feeling structural pressure from the Turkish crisis.
What Karatcoin investors should take comfort in is that our founder, Simone Orso, was absolutely correct in understanding why gold-backed cryptocurrencies are the future of the global economy. In regards to the oft-repeated view that Keynesian economists love to espouse about gold being a “barbarous relic” of the past, the Turks obviously didn’t get the memo.
Gold trading has skyrocketed since the crisis began, as citizens have sought out tried-and-true stores of value to protect their wealth, and the Turkish central bank (in attempt to encourage the utilization and investment of “mattress gold” being held by the people) also allows banks to keep up to 30% of their reserves in gold. It’s estimated that the there are 3,500 tons of under-the-mattress gold being held by the Turkish people, and Turkish banks allow them to created gold-based savings accounts in order to meet the central bank’s 30% tranche.
The Keynesians can slander and vilify it to their heart’s content, but once again, gold is proving why it has been utilized as a currency for 2,700 years, and considering that the fiat-based monetary system is only 57 years old (Nixon abandoned the gold standard in 1971), any educated investor should take a long, hard guess as to which currency model is going to inevitably bite the dust.
Turkey (just like Venezuela), is also fleeing to cryptocurrencies in order to protect themselves from the erratic and ruinous behaviors of their governments, and it’s only a matter of time before the global markets catch up to what Karatcoin’s founders already know about gold-backed cryptos.
Being that we have secured vaults in both Switzerland and Singapore, we have also strategically positioned ourselves to dominate both the European and Asian markets when it comes to precious metal-backed cryptocurrencies. For more information on our products and services, please visit us at https://karatcoin.co/.
https://medium.com/karatcoins/why-should-you-invest-in-karatcoin-55e5a29479e2
https://globalcoinreport.com/bitcoin-btc-price-skyrockets-against-turkish-lira-try/
https://www.cnn.com/2018/08/10/politics/trump-tariffs-turkey-trade-steel-aluminum/index.html
https://www.bullionstar.com/blogs/bullionstar/turkeys-attempt-to-mop-up-mattress-gold/
