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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 some of the best economic, precious metals, geopolitical and preparedness news from around the world.
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The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
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