EMRE DELİVELİ > The Chapull-Jew (çapulcu) interest rate lobby

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I thought the government had forgotten about them, but Prime Minister Recep Tayyip Erdoğan brought up the mysterious interest rate lobby during his speech outside the airport upon his arrival from his North African Rainbow Tour.

“The interest rate lobby believes it can threaten Turkey with stock market speculation,” Erdoğan said. He did not specify who the members of this lobby were, so I had to resort to pro-government newspapers. According to articles in a daily owned by the conglomerate where the PM’s son-in-law is CEO, the lobby is a coalition of Jewish financiers associated with both Opus Dei and Illuminati. It seems the two sworn enemies have put aside their differences to ruin Turkey.

They are supported by the foreign media. Attacking a Bloomberg journalist in 2011, the same paper implied that Bloomberg, owned by a Jew, served the finance sector, also run by Jews. Such religious fraternity would be natural to the proponents of this theory, who are used to cozy relationships with the government and policymakers. It also takes for granted that the many investors holding Turkish assets can easily coordinate. Maybe, they are organizing through Twitter. No wonder the PM calls the social networking platform “a menace.”

Even if they, at least the ones with the biggest exposure to Turkish assets, managed to come together for such a plot, their interests would not necessarily align. For example, anyone holding Turkish government bonds would be hurt by the rise in interest rates, which are inversely related to bond prices.

Higher yields are usually associated with worse equity performance. For one thing, Turkish banks hold quite a bit of government bonds. Besides, bond rates don’t have a meaningful relationship with the loan deposit spread. If anything, deposits have a much shorter maturity than loans, and so higher yields would aggravate this maturity mismatch. As for non-banks, higher rates mean higher borrowing costs for them. Turkish equities indeed move in the opposite direction of bond yields.

Rising rates are hurting foreign investors who own nearly two-thirds of Turkey’s stock market. Only those who are shorting Turkey or bottom-fishing would benefit. And if there is an interest rate lobby, it is probably run by none other than Erdoğan. Last Monday’s bloodbath in Turkish markets was a response to the weekend’s police crackdown on peaceful demonstrators who he called "looters" (çapulcu, read as chapull-Jew). Equities plunged and the lira depreciated on Thursday when he repeated his hard-line stance.

Erdoğan also seems to have forgotten that he owes his fortunes to the very foreign investors he is attacking now. Without the investor confidence and accompanying capital flows, Turkey would not have achieved remarkable growth rates and received investment-grade from the rating agencies.

He wasn’t accusing them then. On the contrary, he was boasting of the benchmark government bond rate below 5 percent a couple of weeks before the demonstrations began.


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Hans-Joachim "Terrorist" Zierke

6/17/2013 3:52:26 AM

abid a shah shah, in medieval Europe, Jews weren't allowed to take up any craft indeed. Thus they could only survive as traders, bankers, artists and other unregulated professions. An exception was southern Spain, where Islamic rule was a lot more tolerant than Christian societies of those days. As you can see in Israel, they master other professions as soon as being allowed to.

nky otj

6/14/2013 8:00:54 PM

I don't agree with you MR.Deliveli but İf I had been rude please accept my apology,I was here to practice my English and I'm leaving ,I didn't want to be rude,have a nice day...

Emre Deliveli

6/14/2013 10:41:20 AM

@mara: There is a partial answer in today's column, and I will have more to say when I post that at my blog later today: http://www.economonitor.com/emredeliveli/


6/13/2013 6:36:43 PM

Your article highlights the comical fantasy of the AKP, what an amazing coup, this coalition of Jews, Opus Dei and Illuminati all in bed together working against Turkey. Everything happens in Turkey in the same way Hollywood movies always portray the UFO’s as landing in / invading the USA and the President speaks for the entire world as we all face Armageddon. Emre bey, you’ve exposed Tayyip for what he is, the evil genius behind this conspiracy, sitting back collecting his ill-gotten gains.

mara mcglothin

6/12/2013 5:26:32 PM

EMRE BEY Can you tell us how the market in Turkey is doing today? There is no report.

nky otj

6/12/2013 10:38:53 AM

I don’t even understand how some people ignores it without any knowledge and still doesn’t want to learn about itSometimes our faith and beliefs put us very blind position and also makes us to do unusual things like very usual ,it seems us it’s true.Some people kills the others brutally some others help to murderers and they even doesn’t feel any guilty conscience.And we are watching when somebody is dying and it’s very crucial thing that We must take care our faith and belives

nky otj

6/12/2013 7:48:22 AM

Somebody's calling and yelling out in the popular tv shows in an unwanted situations and makes the producers angry ,and blowing the horns and waking up the people in the middle of the night at 2:00 am I woke up with horns ! they are emerging people to do something! very unnatural things is happening ! it’s not Turkish peoples style.why I am calling them as real terrorist (also because they are)because they always talks like this, not like you in a gentle way that calling them‘a secretive cab..

nky otj

6/12/2013 6:27:59 AM

'a secretive cabal of sinister foreign financiers (those are the very people who want to invest! '..you said .With hedge fund or anything else or has been found a better way to destroy a countr'ys economy while they are pulling out all of money to their account? unfortunately I understand you ,some people belives them they are normal people because you see them sometimes in economy tv channel speaking etc.,but aren't you interested in reading books in opposite idea ?

nky otj

6/12/2013 6:05:12 AM

I'm not neither anti semitic but how can I say a truth in a diffrent way :that people I mention about are almost all of them are jews ,and they are abusing anti-semitism and accusing everyone of anti-semitism who criticise for their work, so nobody can criticise for them easily.My answer to to K.Kosmopolit:No you are deeply in wrong.yes they are. Driving them away is RTE’s increasingly dictatorial and demagogic rule:Ididn’t understand why? İs he crayz?

Köksüz Kosmopolit

6/11/2013 7:28:08 PM

@nky, "İt's... to show the whole world not to invest to turkey". This is, I’m afraid, utter bollocks. Foreign investors have been extremely keen to invest in Turkey. What is now driving them away is not a secretive cabal of sinister foreign financiers (those are the very people who want to invest!) Driving them away is RTE’s increasingly dictatorial and demagogic rule. People won’t put money into a country in danger of becoming a hybrid of Morsi’s Egypt and Putin’s Russia.
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