https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/turkey-to-confiscate-gold-in-new-clever-way-to-help-citizens-earn-money/
The scheme is that the Turkish government is really seeking to
use the precious metal in the private sector making it available to the
financial industry. This is being marketed as broadening the financial
system allowing citizens to earn additional income with
their gold reserves under their mattresses by turning it over to the
government. They are pitching that this will stimulate the economy
according to Deputy Prime Minister Mehmet Simsek .
What the
government is really doing with issuing a gold bond that will pay you
interest for using your gold. They are promising to pay a certain
interest rate during the term of the bond in Turkish lira. This interest
rate will be oriented towards the development of the gold price. The
gold-covered loan certificate also entitles the holder to receive
interest after physical gold or gold jewelry has been deposited with the
intermediary bank.
This clever scheme means that the government
cannot borrow internationally, so it now wants to confiscate people’s
gold using a bond scheme that in the end they will be forced to default.
This will be a major test of the saying: You can fool all
the people some of the time and some of the people all the time, but you
cannot fool all the people all the time*.
*(There is no evidence that Abraham Lincoln ever said that)
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