Fluctuation in the financial markets and its effects
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The fluctuation in financial markets is continuing since May.
The private capital flow to the "developing countries" has reached to great numbers, according to the World Bank report. Such that the net investment of share bonds increased from 166.1 billion dollars in 2002 to 298.9 billion dollars in 2005 and, in total amount from 171.5 billion dollars in 2002 to 490.5 billion dollars in 2005.
The Turkish economy has also substantially benefited from this capital flow. Due to the foreign capital flow to Turkey, the interests were dropped and there was high proportion of increase. But in the last months, the conjectural changes such as the increase of interests seen in the USA economy have turned the other side the capital flow to the "developing countries" and the capital begun to flow to the different side. And this caused the sudden increase of interest in the countries like Turkey and escaping of the coming money.
Returning of the foreign capital back to home which started with the increase of interests by the USA's Central Bank, or changing of its direction, is effecting sufficiently the economies of countries such as Turkey that are depended of imperialism. Now the abundance of money, the flow of cheap and plentiful money which continued until now since 2003 ended.
The capital movement on the international sphere, also with the influence of internal conditions, has caused wide-scale fluctuation and, at the end, the increase of exchanging rates. The dollar rate, which was reduced due to the huge capital entrance into the country, started to increase again in the last weeks. The foreign capital started to escape by changing the money that it invested on IMKB shares and State bonds into dollars and, as a result of this, the stock exchange suffered nearly 30% of loss of value. As a result of this escape dollar gained over 25% of value against YTL (New Turkish Lira).
The working class and labourers are the ones who most negatively effected by the developments within the financial markets. The reel incomes of workers and labourers have melt down about 25% due to the increase of rates, loosing of value by YTL against the foreign currency (dollar), i.e. devaluation. The 20%-25% of increase, which would inevitably reflect on the prices, will reduce the workers and labourers' capacity of purchase at the proportions of 20-25%.And this would be added with the accession and increasing taxes that would be made by the state on goods and services in order to counterbalance the burden of increasing rates -now the increase of rates has reached to 50%. And these burdens will be putted on the shoulders of workers and labourers. New accessions, cuts in the budget, education, health, social security and agriculture will come to the agenda.
According to the first consequences of the accession wave that is created by devaluation in Turkey, the natural gas increased 5%, petrol 3.7-3.8%, diesel oil 2.2%, food 10-15%, white goods 5-10%; heath services 2.5%, transportation 1.53%, communication 0.59%, iron-steel products 10-15%.
In the last years we are experiencing a new wave of merging in the world economy. In the first quarter of 2006, the number of company unifications and take-overs has gone up to 5801 and their amount went up to 859 billion dollars. The USA and German monopolies are complaining about the lack of sphere that they can utilize the cash money in their cashboxes. (Exxon is 31.9 billion dollar, Microsoft 34.8 dollars, Berkshire Hathaway 43 billion dollars. The amount of cash capital in the cashboxes of monopolies and which has been quoted in DAX 30 only is about 210 billion dollars)
This capital, which looks for maximum profit, is making an enormous pressure upon the world economy and looking for a way of solution. This situation shows that the world economy is not in the stable structure, but it is fragile. This is why each negative development within the world economy takes economies of countries such as Turkey out of their way and, at the end; all burdens are putted on to the shoulders of the working class and labouring masses.
The surplus of capital that is accumulated in the cashboxes of monopolies, at the same time, shows the level of decay which imperialist world economy has reached to.On one side the capital which is in billions and finds no room for maximum profit, the capital which searches a sphere of speculation for the sake of maximum profit and which do not have any other ability then plundering countries' economies, drinking the blood of the working class and labouring masses, and, on the other side, millions of people who are being dragged into poverty.
 

 

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Fluctuation in the financial markets and its effects
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The fluctuation in financial markets is continuing since May.
The private capital flow to the "developing countries" has reached to great numbers, according to the World Bank report. Such that the net investment of share bonds increased from 166.1 billion dollars in 2002 to 298.9 billion dollars in 2005 and, in total amount from 171.5 billion dollars in 2002 to 490.5 billion dollars in 2005.
The Turkish economy has also substantially benefited from this capital flow. Due to the foreign capital flow to Turkey, the interests were dropped and there was high proportion of increase. But in the last months, the conjectural changes such as the increase of interests seen in the USA economy have turned the other side the capital flow to the "developing countries" and the capital begun to flow to the different side. And this caused the sudden increase of interest in the countries like Turkey and escaping of the coming money.
Returning of the foreign capital back to home which started with the increase of interests by the USA's Central Bank, or changing of its direction, is effecting sufficiently the economies of countries such as Turkey that are depended of imperialism. Now the abundance of money, the flow of cheap and plentiful money which continued until now since 2003 ended.
The capital movement on the international sphere, also with the influence of internal conditions, has caused wide-scale fluctuation and, at the end, the increase of exchanging rates. The dollar rate, which was reduced due to the huge capital entrance into the country, started to increase again in the last weeks. The foreign capital started to escape by changing the money that it invested on IMKB shares and State bonds into dollars and, as a result of this, the stock exchange suffered nearly 30% of loss of value. As a result of this escape dollar gained over 25% of value against YTL (New Turkish Lira).
The working class and labourers are the ones who most negatively effected by the developments within the financial markets. The reel incomes of workers and labourers have melt down about 25% due to the increase of rates, loosing of value by YTL against the foreign currency (dollar), i.e. devaluation. The 20%-25% of increase, which would inevitably reflect on the prices, will reduce the workers and labourers' capacity of purchase at the proportions of 20-25%.And this would be added with the accession and increasing taxes that would be made by the state on goods and services in order to counterbalance the burden of increasing rates -now the increase of rates has reached to 50%. And these burdens will be putted on the shoulders of workers and labourers. New accessions, cuts in the budget, education, health, social security and agriculture will come to the agenda.
According to the first consequences of the accession wave that is created by devaluation in Turkey, the natural gas increased 5%, petrol 3.7-3.8%, diesel oil 2.2%, food 10-15%, white goods 5-10%; heath services 2.5%, transportation 1.53%, communication 0.59%, iron-steel products 10-15%.
In the last years we are experiencing a new wave of merging in the world economy. In the first quarter of 2006, the number of company unifications and take-overs has gone up to 5801 and their amount went up to 859 billion dollars. The USA and German monopolies are complaining about the lack of sphere that they can utilize the cash money in their cashboxes. (Exxon is 31.9 billion dollar, Microsoft 34.8 dollars, Berkshire Hathaway 43 billion dollars. The amount of cash capital in the cashboxes of monopolies and which has been quoted in DAX 30 only is about 210 billion dollars)
This capital, which looks for maximum profit, is making an enormous pressure upon the world economy and looking for a way of solution. This situation shows that the world economy is not in the stable structure, but it is fragile. This is why each negative development within the world economy takes economies of countries such as Turkey out of their way and, at the end; all burdens are putted on to the shoulders of the working class and labouring masses.
The surplus of capital that is accumulated in the cashboxes of monopolies, at the same time, shows the level of decay which imperialist world economy has reached to.On one side the capital which is in billions and finds no room for maximum profit, the capital which searches a sphere of speculation for the sake of maximum profit and which do not have any other ability then plundering countries' economies, drinking the blood of the working class and labouring masses, and, on the other side, millions of people who are being dragged into poverty.