Gold may not be 'money' to the Chairman, but it sure is to Turkey. The WSJ reports that "The Turkish government, facing a bloated current-account deficit that threatens to derail the country's rapid expansion, is trying to persuade Turks to transfer their vast personal holdings of gold into the country's banking system." The reason: "The push to tap into the individual gold reserves—the traditional form of savings here—is part of Ankara's efforts to reduce a finance gap that is currently about 10% of gross domestic product." In other words, "sequester" the population's hard assets (politely of course), and convert these to paper to fund the country's creditors, both foreign and domestic.
Government officials say the banking regulator will soon publish a plan to boost incentives for consumers to park their household wealth inside the financial system. Banking executives said they are considering new interest-yielding gold-deposit accounts that would allow savers to withdraw gold bars from specially designed automated teller machines.
Economists say the policy shift is designed to change Turks' historic preference for storing a high percentage of personal wealth outside the banking system as a way to protect themselves against the economic volatility that has periodically hit Turkey in recent decades.
How nice of the banksters. I wonder how long before these voluntary incentives become forced.
The Turks are clearly a bit economically backward here, I mean can't they understand high value modern finance and the wealth it can generate? If only they would give the gold to highly trained finances they too could become rich beyond their wildest dreams instead of hoarding it away from the banking system...
The population of Turkey need to give this idea a wide berth and keep their hard earned valuables out of the hands of the bankers. Keeping it from the banking system is by far the best policy.