Zinserhöhung in der Türkei verpufft an den Finanzmärkten – Increase of interest rates in Turkey fizzles out on the financial markets
Vienna – drastic rate hikes in Turkey and South Africa have hardly can curb the turmoil in the currency markets. The Turkish Central Bank has raised interest rates from 4.5% to 10%, to bolster the value of the own currency lira. The decision followed a roller coaster ride but, in the course of Wednesday, the currency eased partly drastically. Economists also warned growth problems because of sharply higher interest rates. At the descent of the currencies, also the Russian ruble has reached a new low.
Les soubresauts perpétuels de l’économie mondialisée – The perpetual turmoil of the globalized economy
In early November, Larry Summers, former Secretary to the Treasury, Professor at Harvard, warned: since a few decades, growth in the United States and Europe is progressing by speculative bubbles. Between two bubbles, the Western economy through a long cycle of low growth. The “law of Summers’ seems well apply to the current situation. After some boom years, many emerging countries are experiencing serious difficulties. The Turkey, the India, Argentina, for example, see their currency and their stock market collapse. These countries face a massive flight of capital: investors withdrew from these markets to fall back on the United States and Europe – less remunerative but safer.
Merkel schickt Schröder in Rente – Merkel sends Schröder in retirement
Despite massive criticism, the Cabinet decided a comprehensive retirement package on Wednesday. It stipulates the increase of so-called mother pension, the introduction of a discount-free retirement at 63 in 45 years of insurance, as well as improvements to disability pensioners. In addition, more money for rehabilitation should be provided… The presumed costs of EUR 160 billion by 2030 were criticized in particular by employers and younger politicians, who fear unwarranted burden of future generations. Federal Social Minister Andrea Nahles (SPD) and Chancellor Angela Merkel (CDU) defended against criticism, which was presented on Wednesday in particular by former Chancellor Gerhard Schröder (SPD) and the nearby employer initiative new social market economy (INSM) the decisions of the Coalition to the pension.