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August 12, 2018 | Lira Dives 10% at Open, Turkish Banks Now Insolvent: Get Your Money Out Now!

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Warning to Turkish Citizens: Get Your Money Out Now!

Following emergency bank meetings and numerous pleas by Erdogan for Turks not to “pull FX out of their banks,” blaming the country’s current economic crisis on America, the Lira has opened massively weaker – crashing below 7.00 per dollar for the first time ever.

“I’m calling out to industrialists, do not attack banks to buy FX,” said Turkish President Recep Tayyip Erdogan in a speech in Trabzon.

“It is industrialists’ duty too to keep this nation on its feet. Otherwise we will set into motion our plan B and C,” he added.

Reuters reports a low level of 7.22 – all of which implies the Turkish banking system is done.

As Goldman Sachs warned, further lira depreciation to 7.1 would erode all of Turkey’s banks’ excess capital.

Turkish Lira on Hyperinflation Path

Plan B or C

I suggest one of then is capital controls​. Hyperinflation may easily set in. If you have money in Turkish banks, take it out now, if you can.

Mike “Mish” Shedlock

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August 12th, 2018

Posted In: Mish Talk

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