A Growing Economy Isn't Enough

In spite of the positive social mood in Turkey as expressed by its up until recently relentlessly rising stock market, apparently not all is well. In recent days violent demonstrations against the government have taken place, which prime minister Erdogan at first blamed on a 'few looters'. After the protests had spread to 67 cities, he implied that they were orchestrated to create a pretext for 'undermining democracy', a hint that the powerful Turkish army may be involved (watch Erdogan's statement here).

That doesn't sound very plausible though, since the army's main concern with Erdogan is that he leads an Islamic party. Turkey's army is not necessarily anti-democratic – rather it sees its role in ensuring that Turkey remains a secular state and doesn't become a theocracy. In short, the army regards itself as the guarantor of Kemal Atatürk's legacy.

Reuters reports:



“Tens of thousands of people took to the streets in Turkey's four biggest cities on Sunday and clashed with riot police firing tear gas on the third day of the fiercest anti-government demonstrations in years.

The din of car horns and residents banging pots and pans from balconies in support of the protests resonated across neighborhoods in Istanbul and Ankara late into the night, as hundreds of demonstrators skirmished with riot police.

Roads around Prime Minister Tayyip Erdogan's office in Istanbul were sealed off as police fired tear gas to push back protesters, and police raided a shopping complex in the centre of the capital Ankara where they believed demonstrators were sheltering, detaining several hundred. Erdogan blamed the main secular opposition party for inciting the crowds, whom he called "a few looters", and said the protests were aimed at depriving his ruling AK Party of votes as elections begin next year.

Interior Minister Muammer Guler said there had been more than 200 demonstrations in 67 cities around the country, according to the Hurriyet newspaper. The unrest erupted on Friday when trees were torn down at a park in Istanbul's main Taksim Square under government plans to redevelop the area, but widened into a broad show of defiance against the Islamist-rooted Justice and Development Party (AKP).

Erdogan said the plans to remake the square, long an iconic rallying point for mass demonstrations, would go ahead, including the construction of a new mosque and the rebuilding of a replica Ottoman-era barracks. He said the protests had nothing to do with the plans. "It's entirely ideological," he said in an interview broadcast on Turkish television.

"The main opposition party which is making resistance calls on every street is provoking these protests … This is about my ruling party, myself and the looming municipal elections in Istanbul and efforts to make the AK Party lose votes here." Turkey is due to hold local and presidential elections next year in which Erdogan is expected to stand, followed by parliamentary polls in 2015.

The main opposition Republican People's Party (CHP) denied orchestrating the unrest, blaming Erdogan's policies. "Today the people on the street across Turkey are not exclusively from the CHP, but from all ideologies and from all parties," senior party member Mehmet Akif Hamzacebi said. "What Erdogan has to do is not to blame CHP but draw the necessary lessons from what happened," he told Reuters.

The protests, started by a small group of environmental campaigners, mushroomed when police used force to eject them from the park on Taksim Square. As word spread online, the demonstrations drew in a wide range of people of all ages from across the political and social spectrum.

The ferocity of the police response in Istanbul has shocked Turks, as well as tourists caught up in the unrest in one of the world's most visited destinations. Helicopters have fired tear gas canisters into residential neighborhoods and police have used tear gas to try to smoke people out of buildings. Footage on YouTube showed one protester being hit by an armored police truck as it charged a barricade.

The handling of the protests has drawn rebukes from the United States, European Union and international rights groups.”


(emphasis added)

It is interesting that once again, social media – read: the internet – were used to spread the word and enlarge the protest. Erdogan probably underestimates the degree to which today's prosperous Turkey is breeding opposition to his hitherto mild Islamism. Note the trigger for the demonstrations: plans to erect a mosque in a square that is a popular meeting place of the opposition. The stock market in Istanbul has suffered a setback as the protests broke out, but still sports an enormous long term gain:



Istanbul, daily

The Istanbul National 30 Index: the setback over the past week or so has erased this year's gains.



Istanbul, LT

The market is still up more than 300% from the 2009 low.




It is not knowable yet what these protests in Turkey really signify. But we take them for now as another sign of societal change infecting Islamic countries. In some places there has been a reaction taking countries toward more rather than less Islamic influence (e.g. in Egypt), but there are powerful forces pulling in the opposite direction as well.


Charts by: BigCharts



Emigrate While You Can... Learn More



Dear Readers!

It is that time of the year again – our semi-annual funding drive begins today. Give us a little hand in offsetting the costs of running this blog, as advertising revenue alone is insufficient. You can help us reach our modest funding goal by donating either via paypal or bitcoin. Those of you who have made a ton of money based on some of the things we have said in these pages (we actually made a few good calls lately!), please feel free to up your donations accordingly (we are sorry if you have followed one of our bad calls. This is of course your own fault). Other than that, we can only repeat that donations to this site are apt to secure many benefits. These range from sound sleep, to children including you in their songs, to the potential of obtaining privileges in the afterlife (the latter cannot be guaranteed, but it seems highly likely). As always, we are greatly honored by your readership and hope that our special mixture of entertainment and education is adding a little value to your life!


Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke


Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • 5-cotmmrangegc03Ganging Up on Gold
      So Far a Normal Correction In last week's update on the gold sector, we mentioned that there was a lot of negative sentiment detectable on an anecdotal basis. From a positioning perspective only the commitments of traders still appeared a bit stretched though, while from a technical perspective we felt that a pullback to the 200-day moving average in both gold and gold stocks shouldn't be regarded as anything but a normal - and in this case actually long overdue -...
  • gold_bullionGold Sector Correction – Where Do Things Stand?
      Sentiment and Positioning When we last discussed the gold sector correction (which had only just begun at the time), we mentioned we would update sentiment and positioning data on occasion. For a while, not much changed in these indicators, but as one would expect, last week's sharp sell-off did in fact move the needle a bit.   Gold - just as nice to look at as it always is, but slightly cheaper since last week. Photo via The Times Of India   The commitments of...
  • wryAustralian property bubble on a scale like no other
      Australian property bubble on a scale like no other Yesterday Citi produced a new index which pinned the Australian property bubble at 16 year highs:   Bubble trouble. Whether we label them bubbles, the Australian economy has experienced a series of developments that potentially could have the economy lurching from boom to bust and back. In recent years these have included:    the record run up in commodity prices and subsequent correction;  the associated...
  • urban_ii_croppedPope Francis: Traitor to Western Civilization
      Disqualified There has been no greater advocate of mass Muslim migration into Europe than the purported head of the Catholic Church, Pope Francis.  At a recent conference, he urged that “asylum seekers” be accepted, “through the acts of mercy that promote their integration into the European context and beyond.”*   Before we let Antonius continue with his refreshingly politically incorrect disquisition, we want to remind readers of two previous articles that have...
  • 9-market-internalsBubble Dissection
      The Long Term Outlook for the Asset Bubble Due to strong internals, John Hussman has given the stock market rally since the February low the benefit of the doubt for a while. Lately he has returned to issuing warnings about the market's potential to deliver a big negative surprise once it runs out of greater fools. In his weekly market missive published on Monday (entitled “Sizing Up the Bubble” - we highly recommend reading it), he presents inter alia the following eye-popping...
  • spankinggoodtimeUS Stock Market - a Spanking May be on its Way
      Iffy Looking Charts The stock market has held up quite well this year in the face of numerous developments that are usually regarded as negative (from declining earnings, to the Brexit, to a US presidential election that leaves a lot to be desired, to put it mildly). Of course, the market is never driven by the news – it is exactly the other way around. It is the market that actually writes the news. It may finally be time for a spanking though.   Time for some old-fashioned...
  • andy-duncan-and-claudio-grassA Looming Banking Crisis – Is a Perfect Storm About to Hit?
      Andy Duncan Interviews Claudio Grass Andy Duncan of FinLingo.com has interviewed our friend Claudio Grass, managing director of Global Gold in Switzerland. Below is a transcript excerpting the main parts of the first section of the interview on the problems in the European banking system and what measures might be taken if push were to come to shove.   Andy Duncan of FinLingo.com (left) and Claudio Grass of Global Gold (right)   Andy Duncan: How do you see the...
  • fischersDoomed to Failure
      Larded Up and Larded Over We’ve been waiting for the U.S. economy to reach escape velocity for the last six years.  What we mean is we’ve been waiting for the economy to finally become self-stimulating and no longer require monetary or fiscal stimulus to keep it from stalling out.  Unfortunately, this may not be possible the way things are going.   As Milton Jones once revealed: “A month before he died, my grandfather covered his back in lard. After that, he went...
  • state_police_980_600_s_c1_t_c_0_0_1Are the Deep State’s Drones Coming for You?
      What’s Aleppo?   Look out kid Don’t matter what you did Walk on your tip toes Don’t try "No Doz" Better stay away from those That carry around a fire hose Keep a clean nose Watch the plain clothes You don’t need a weather man To know which way the wind blows – “Subterranean Homesick Blues,” Bob Dylan   The entrance to Baghdad's “Green Zone”. Photo credit: Karim Kadim / AP   DELRAY BEACH, Florida – Biggest foreign policy blunder...
  • speculatorInterview with Doug Casey
      Natalie Vein of BFI speaks with Doug Casey   Our friend Natalie Vein recently had the opportunity to conduct an extensive interview with Doug Casey for BFI, the  parent company of Global Gold. Based on his decades-long experience in investing and his many travels, he shares his views on the state of the world economy, his outlook on critical political developments in the US and in Europe, as well as his investment insights and his approach to gold, as part of a viable strategy for...
  • larry-1Meet Your New Stimulus Allocation Czar
      March Towards Midnight The march towards midnight is both stirring and foreboding.  Like a death row inmate sitting down to savor his last meal, a grim excitement greets the reality of impending doom.  Thoughts of imminent mortality haunt each bite.   Tic-toc, tic-toc...   As far as the economy’s concerned, there’s no stopping its march towards midnight.  The witching hour’s rapidly approaching.  We intend to savor each moment and make the best of...
  • walmart-st-augustine-flaEvacuate or Die...
      Escaping the Hurricane BALTIMORE – Last week, we got a peek at the End of the World. As Hurricane Matthew approached the coast of Florida, a panic set in. Gas stations ran out of fuel. Stores ran out of food. Banks ran out of cash.   A satellite image of hurricane Matthew taken on October 4. He didn't look very friendly. Image via twitter.com   “Evacuate or die,” we were told. Not wanting to do either, we rented a car and drove to Maryland. “We’ll just...

Austrian Theory and Investment

Support Acting Man

Own physical gold and silver outside a bank




Realtime Charts


Gold in USD:

[Most Recent Quotes from www.kitco.com]



Gold in EUR:

[Most Recent Quotes from www.kitco.com]



Silver in USD:

[Most Recent Quotes from www.kitco.com]



Platinum in USD:

[Most Recent Quotes from www.kitco.com]



USD - Index:

[Most Recent USD from www.kitco.com]


THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Buy Silver Now!
Buy Gold Now!