Global debt spiral and industry warning from Prof. Dr. Sinan Alçın
Prof. Dr. Sinan Alçın stated that global debts have reached 300 trillion dollars, drawing attention to potential financial fractures and the danger of premature deindustrialization for Turkey.
Prof. Dr. Sinan Alçın drew attention to the bottleneck in global capital accumulation and the 300 trillion dollar debt spiral, evaluating the shocks in the petrodollar system and the threat of premature deindustrialization for Turkey.
Global Debt Spiral and Risks
Prof. Dr. Sinan Alçın announced that the amount of borrowed money circulating in the world after the 2008 crisis has reached 300 trillion dollars, while the value of produced goods has remained at only around 100 trillion dollars.
Shocks in the Petrodollar System
Stating that the crisis in the Strait of Hormuz has shaken the petrodollar system, Alçın expressed that if this system collapses, the US dollar could lose its status as a valid currency and China might come to the forefront.
Central Bank Policies
Stating that major central banks aim to defeat persistent inflation, Alçın emphasized that instead of long-term guidance, a return has been made to short-term and clear steps prioritizing price stability.
CBRT Interest Rate Expectations
Expressing that the Central Bank of the Republic of Turkey prioritizes financial stability, Alçın estimated that the end of the year could be completed at the 35 percent level.
Threat of Premature Deindustrialization
Stating that the loss of industrial lines in Turkey and the shift of production lines towards service are a serious risk, Alçın warned that a danger similar to the premature de-agriculturalization process in agriculture could also be experienced in industry.