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Apple Temporarily Halts Sales in Turkey After Currency Crash
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If sharing fulfills you, convince me to invest this comment got my attention.
That won't happen to the US because Turkey has been in a hyperinflation state for decades (going back to the 1970s). Turkey had gone from 9 lira = US $1 in the 1960s to 1,650,000 lira = US $1 in 2001. They had an exchange rate of 1 new lira = 1,000,000 old lira in 2005. But still had double digit inflation (ie >10%).
You have to go back to the days of the Continental Congress in the 18th century to see comparative inflation rates and that didn't last for 50 freaking years.
Bingo. it's the same kind of scam the whole "we should be on a gold standard" nonsense that people not good at economics believe. Our economy can't possibly be on a gold standard. One reason being the world is running out of sources of gold to mine. And without mining to supplement the world's supply, inflation would begin to spiral out of control as the price of god is forced up.
But that will never happen, because we keep the economy on a semi-even keel by keeping the price of gold just about the same within a certain range.
Owning Apple gear might help support efforts to improve human rights in Turkey. You want to undercut that?Has Apple nothing to say about human rights in Turkey?
Is it only about the money?
?
World Report 2021: Rights Trends in Turkey
www.hrw.org
Not really. The 1929 crash was predicted by a handful...that few listened to. As early as 1928 it became obvious that the the meteoric stock market rise was going to end but no one had an idea on when or how bad it would be.
There was clear signs there were problems and the economy was heading for a fall:
1) 1928: Fed cut off easy credit to investors to slow down or stop all the on margin stock buying. Banks ignored the Fed.
2) Early 1929: Fed sends a letter to the banks that effectively said 'continue to lend to brokers and investors and we cut off access to our discount window'. Banks ignored this.
3) August 1929: Fed raises interest rates. Right idea, worst possible time as the market had actually reached its summit.
(Here Are Warning Signs Investors Missed Before the 1929 Crash)
4) September 5, 1929: Roger Babson said "Sooner or later a crash is coming, and it may be terrific." That same day the stock market took a 3% hit.
Crypto is an attempt to avoid taxation. No crypto is safe, and pretty much every single currency has been hacked and billions have been lost. With no way to get the "money" back.
Remember Mt. Gox?
Shoot, a reporter at the San Jose Mercury News, Dan Gilmore, predicted the crash of 2008 in 2002. I read his column and decided to wait for the crash to buy a house. Sure enough, the crash came and in 2010 I bought a house in a short sale for $140,000 - in Southern California. Six years later I sold it for $260,000. Recently it sold for $325,000.
My point being that some people see things coming and the greedy think they can handle it. But nobody can predict what's happening tomorrow when you need to know it's going to crash or how far it's going to rise.
Never mind all money (be it gold, silver, bitcoin, etc) is as Extra Credit put it "a third good that we all agree has value".
Twilight Zone's "The Rip Van Winkle Caper" had a future where gold has no value because it can be easily manufactured.
In Lost in Space's "Treasure of the Lost Planet" the treasure of a pirate from Betelguese is pig iron - because gold, silver, and even jewels on his homeworld are so common that buildings and even utensils are made with them but there was no iron on Betelguese.
In Star Trek's "Catspaw" Kirk points out the Enterprise can make a ton of diamonds, rubies, emeralds, and sapphires making them "valueless".
One of the gag emotes by the female Draenei in World of Warcraft is "This planet has a tremendous supply of sandstone. The inhabitants must be wealthy beyond their dreams."
For a real world example there is the Spanish search for El Dorado. The thing is the peoples of South America didn't see gold as money as it was heavy and lacking other easily available metals to alloy it with it was too soft.
But here is where it gets really crazy. Platinum (unripe silver, and still rarer than gold) didn't have any value to the Spanish during the Age of Exploration and was in fact was used to make counterfeit gold coins. So what was Spain's solution to having one the rarest metals on the planet? They dumped the entire national supply into the ocean because to the 17th century Spanish Platinum had no value.
Bit coins only have value because a group of people say they do and whole host of others believe them. Some is true of gold, silver, or anything else we consider valuable enough to be called money.
You’ve got the right answer for the wrong reason.
The reason we have inflation in the first place is that there’s a natural rate of inflation inherent to a growing economy.
Having a set amount of currency means that over time your earnings will shrink (as population grows but the amount of money remains finite), likewise workers will necessarily earn less money as time goes on.
And this leads to what’s called “deflation”, meaning the currency accrues value over time. And this results in people not spending money at all (why would you? Your money would be worth more if you just buried it in the back yard.)
Business close because there’s no profit to be made over just sitting on money. People lose jobs, more businesses close, etc.
A certain amount of inflation is to be expected, as more people buy more goods, or people’s earning power increases, the price of things increase with demand.
Well, it’s easy to see the logical conclusion of the subprime mortgage situation and say “this is gonna fall flat on its ass eventually” but it’s nigh impossible to say when. I could say that EV companies valuations have to come back to earth and be right. But until then I’d just lose money trying to time it. And people who bought stock would be laughing all the way to the bank before that point.
Iirc through the 20’s the Fed continued to keep interest rates very low and that allowed the bubble to happen. And they refused to lower rates during the depression, which prolonged it.
If governments agreed that changing prices based on currency valuation was prohibited this would fix itself a lot faster. The cost of a Turkey iPad would go from $700 to $385 and more people would buy them. This would increase consumer wealth and aid in rebuilding the economy. If you can't generate enough profit in other countries to essentially give the product away then either you aren't selling it for enough or it's not really that good.
All I see in this story is a company protecting the bottom line at the expense of 84 million people.
And before you blame 'cost of living' remember the cost of living is due to companies charging different people different amounts.
All I see in this story is a company protecting the bottom line at the expense of 84 million people.
And before you blame 'cost of living' remember the cost of living is due to companies charging different people different amounts.
It isnt such a hard decision to make.
There's a chip shortage so almost all markets have weeks of demand of Apple devices.
So whatever SKU units meant for Turkey will be diverted to markets that have identical or even similar regulatory requirements.
I wouldnt mind extra regulatory paper & software text specific to Turkey if it means I get any of my orders sooner.
Same reason was applied to exclude Face ID on the MBP 14"/16", SDexpress & HDMI 2.1 as end users waned Apple silicon weeks ago. Those excluded features are not key drivers for sales.
There's a chip shortage so almost all markets have weeks of demand of Apple devices.
So whatever SKU units meant for Turkey will be diverted to markets that have identical or even similar regulatory requirements.
I wouldnt mind extra regulatory paper & software text specific to Turkey if it means I get any of my orders sooner.
Same reason was applied to exclude Face ID on the MBP 14"/16", SDexpress & HDMI 2.1 as end users waned Apple silicon weeks ago. Those excluded features are not key drivers for sales.
Somebody charted the interest rates all the way back to the days of George Washington (Here’s 222 years of interest rate history on one chart; the actual chart is from 0:50 to 2:25). The chart of 200 years of Interest rates is easier to read. The Fed's rate was 4%-5% which even today is considered "normal" (our current rates are abnormally low)
From wikipedia:
*Summer 1929: The Federal Reserve continues with its plan to raise interest rates from 4% in mid-1928 to 6% by mid-1929 in an attempt to combat speculative behavior.
*November 1st 1929: The Federal Reserve begins lowering the discount rate from its 6% level
*December 1930: The Federal Reserve's federal funds rate reaches 2%, a then-record low
*May 1931: The Federal Reserve's federal funds rate bottoms out at 1.5%
*September - October 1931: Substantial amount of dollar assets (primarily Federal Reserve Notes) are converted to gold in the US by European central banks seeking to cover losses from the panic that had been sweeping Europe since the collapse of CreditAnstalt. In response, the Federal Reserve increases the federal funds rate from 1.50% to 3.50% to stabilize the dollar, but this only worsens the Depression as banks are further strained.
So the only reason the Fed raised the interest rate was because the gold needed to support the money being printed was flowing out of the country like crazy
What gets interesting is when you look at the inflation rate. For this I used officialdata.org's CPI Inflation Calculator goes all the way back to 1635 for some countries. Plugging in 1920 to 1929 got this:
"$100 in 1920 is equivalent in purchasing power to about $85.50 in 1929, a difference of $-14.50 over 9 years. The dollar had an average deflation rate of -1.73% per year since 1920, producing a cumulative price change of -14.50%.
This means that prices in 1929 are 14.5% lower than average prices since 1920, according to the Bureau of Labor Statistics consumer price index.
The 1920 inflation rate was 15.61%. The inflation rate in 1929 was 0.00%. The 1929 inflation rate is lower compared to the average inflation rate of 3.07% per year between 1929 and 2021" (sic)
There was no inflation in the period covering 1920-1929 but rather deflation - more goods chasing fewer dollars. If you go year by year you will see the deflation kicks in 1926-1927 (-1.69%); goes lower in 1927-1928 (-1.72%); and totally flatlines (0.00%) 1928-1929.
Face ID just may not be feasible in that size. SD Express and HDMI 2.1, well, would be nice, but Apple rarely does everything and the kitchen sink in one revision.
Then you are blinder than me and I have 20/200 vision.
That makes no economic sense. The price is generally based on the exchange rate of the currencies, It has always been that way in the modern world. Never mind things like shipping and transport must be paid for.
If you do research you would find that Turkey has been, for the most part with brief signs they might get it together, an economic train wreck in motion since the late 1960s ie half a century. Heck, €1 is 1,936.27 Italian lire right now and dropping like a freaking stone.
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Hey people, i’m from Turkey, before the pandemic I had lived in Italy for 6 years and then last 2 years in Turkey again, lastly I moved to Canada 2 months ago. You may ask me anything about it. I feel sad for my country and seeing thanksgiving jokes don’t make it anymore bearable.
The only thing I can tell you briefly is that this is not an economic crisis but rather political. As long as Erdoğan stays there, things won’t be good.
The only thing I can tell you briefly is that this is not an economic crisis but rather political. As long as Erdoğan stays there, things won’t be good.
I just went to the Apple store yesterday and bought Apple TV 4K and a a watch band, because I assumed that this would be the last time I can buy things at this price. : )))
I even thought about ordering the XDR display even. Wish I did to be honest.
Oh and, to fix Turkey's economy one just needs to elect someone other than Erdogan. This is really not an economical crisis but a political one at the moment.
I even thought about ordering the XDR display even. Wish I did to be honest.
Oh and, to fix Turkey's economy one just needs to elect someone other than Erdogan. This is really not an economical crisis but a political one at the moment.
As for Bitcoin, it shouldn’t be labeled that either. It’s an asset class like gold but way better.
With rampant inflation like that it means that if someone had placed an order before Erdogan's statement their payment would be worth 15% less by the time the goods were ready to ship and it was processed. No one is going to trade on that basis.
If there wasn't such a big delay between order and delivery it wouldn't be such a problem.
And if you decide not to do business in a country where you don't like the government for some reason then that's pretty much three quarters of the world where you don't do business.
Plus, it's the people you are hurting not so much the government who frankly don't care about the people in many cases.
If there wasn't such a big delay between order and delivery it wouldn't be such a problem.
And if you decide not to do business in a country where you don't like the government for some reason then that's pretty much three quarters of the world where you don't do business.
Plus, it's the people you are hurting not so much the government who frankly don't care about the people in many cases.
Euros are widely used in Turkey and before that the Deutsch Mark.
The population by now knows a thing or two about inflation.
I’m not sure you understand what crypto or a ponzi scheme is. When you bought your Mac, or whatever device you’re using to access this site, what did you use? Dollars? Well, that’s a form of currency, and what gives the USD its value? Put another way, how are those bits that were transfered from your credit card issuing bank to Apple when you purchased your Apple device any different than other bits like crypto that society has afforded a certain value?