Turkey is on a path towards hyperinflation. Here are the steps Turkish citizens should make ASAP.
Citing stability risks, Fitch Cuts Turkey's Credit Rating to BB, further into junk territory.
Risks to macroeconomic stability have intensified owing to the widening in the current account deficit, more challenging global external financing environment, jump in inflation and the impact of the plunge in the exchange rate on the private sector: Fitch
Economic policy credibility has deteriorated in recent months and initial policy actions following elections in June have heightened uncertainty, the rating agency said in a statement
Fitch expects CAD to widen to 6.1% of GDP in 2018, driven by higher fuel prices, and in 1H, higher household consumption
Fitch forecasts annual average inflation to be more than double the current BB range median, at 13% in 2018 and 10.8% in 2019
Outlook on the rating is negative
Heading for Hyperinflation
Turkey isn't close to hyperinflation yet. But the path it's on is a guaranteed way to get there.
Turkey on Venezuela's Path
Erdogan jailed political opponents
Parliament effectively made Erdogan prime minister for life
Erdogan took over the press
Erdogan took over the courts
Erdogan took over finance
Erdogan about to take over the central bank
Hyperinflation Nearly Inevitable
Venezuela did not hop straight into hyperinflation and Turkey likely won't either.
However, if Turkey remains on the same path, which seems highly likely, hyperinflation is the inevitable outcome.
The Turkish Lira has lost 76% of its value in the last 10 years against the USDollar (and lost 94% in the last 20 years).
Advice for Turkish Citizens
Prepare for hyperinflation
Get your money out of Turkish banks ASAP
Convert all existing savings into a basket of US dollars, gold and silver.
Borrow as much Turkish Lira as you can
Invest it in a basket of US dollars, Gold, and Silver
Hyperinflation is complete loss of faith in currency. It's inevitably starts off as a series of political as opposed to monetary events.
Erdogan has Turkey on that path.
For discussion of the Turkey hyperinflation case and comparisons to other historic hyperinflations, please see Hyperinflation and Mass-Migration Crisis Inevitable....