It appears that Turkey’s Deputy Prime Minister Mehmet Şimşek has taken a
page from the Bank of India’s playbook to steal the gold from it’s citizens.
The Turkish Treasury has issued two bonds in an attempt to dislodge 2,200
tons of gold from the hands of the Turkish people. Is this another attempt to
by an SCO, BRI member to acquire the gold necessary to participate in these
alliances spearheaded by China?
As Alasdair Macleod recently explained this would be one of
the stronger reasons behind India’s ongoing attempts to acquire gold from
their citizens. What would happen, for example, if these one of these two
nations put out a bid for 500 tons of gold in the open market? WOW! Talk
about fireworks! For this reason, it seems logical for Turkey to follow in
the footsteps of India to at least attempt to steal, I mean acquire, some of
the people’s gold.
The Turkish Treasury will issue two types of bonds to
attract 2,200 tons of gold stashed under mattresses into the economy, which
has a market value of around 300 billion Turkish Liras, Deputy Prime Minister
Mehmet Şimşek has said.
“The first issuance of gold bonds and the gold-based rent certificates will
begin between Oct. 2 and 6 in an attempt to benefit the economy with the
under-the-mattress gold of citizens, which is estimated to be almost 2,200
tons in total,” Şimşek said in a statement on Sept. 17.
The deputy prime minister said on Sept. 18 during an interview broadcast on
Bloomberg HT and Habertürk that the issuance of gold price-linked bonds was
not related to the Treasury’s need for debt.
“The Treasury has no borrowing problem. We will dare this cost for the
economy to run faster, to increase savings and solve resource problems as
well as bring out the under-the-mattress savings into the economy,” he said.
Experts at Turkey’s state-run Ziraat Bank will mark the real value of the
gold savings of citizens and access equivalent bonds in return, he said. Source
The Turkish people have a long history of keeping gold as wealth
protection from their governments ill conceived ideas about currency and
money. Just as the Indians have suffered economic and monetary madness at the
hands of whoever is running the government, the Turks have similar history.
For this reason, and many others, we see this attempt as being an utter
failure just like it has been in India. People that hold gold for wealth
preservation and as armament against governments monetary madness will not
simply hand over their gold for a different type of government issued
monetary script. That is the very reason most gold bugs hold gold in the
first place; but the governments try and try to paint the same picture with a
different brush.
This whole situation in Turkey, as a primarily muslim country, will make
the Indian attempt look like a complete success. Muslims, under the dogma of
their religious beliefs, are forbidden to use financial instruments that
pay/generate interest. Not to worry, the Deputy Prime Minister has this
aspect well under control.
“Rent certificates based on gold,” a financial tool
similar to sukuk bonds, aims to lure citizens who are against benefiting from
interest rates, Şimşek said on Sept. 17.
Interest rates are forbidden in Islamic banking because they are prohibited
by the religion.
The bond sale will first start in Istanbul but eventually will be practiced
in every province of Turkey, declared Şimşek. Source
The article goes on to state how the Turkish economy will be filled with
endless rainbows and unicorns, similar to the nonsense we are fed here in the
U.S. Of course, with a promise of returning the gold if the citizen so
desires.
“These relevant two instruments will have positive effects
on the economy in the long term. They will decrease our external dependence
with regard to our source need, which is necessary in the growth of the
economy,” he said.
“Their investments are also going to turn into savings under the guarantee of
the government,” said Şimşek.
“This procedure is similar to the situation when our people sell their gold,
which they keep in their houses, when the need arises and turn it into cash.
On top of it, they can even receive the gold return which has accrued until
the date they sell it, in terms of the lira,” he said. Source
Once again this shows the depths of incompetence we are dealing with when
it comes to government “officials”. This will fail just like the attempts in
India have failed. People hold gold to avoid government issued illusions of
wealth. People that hold physical gold have made a conscious choice to
convert their illusions of wealth into hard assets that have preserved wealth
for several millenniums with no sign of that changing anytime soon. What
makes Turkey’s government believe they have found the key to dislodging gold
from people that do not trust their government in the first place?
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Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700
articles and produced more than 200 videos about the precious metals
market, economic and monetary policies as well as geopolitical events since
1987. His articles have been published by Zerohedge, SHTFPlan, Sprott
Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory
has contributed daily to SGTReport since 2012. He has interviewed experts
such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente
and Peter Schiff, to name but a few. Visit The Daily Coin website
and The Daily Coin YouTube channels to enjoy original and
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