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News Link • Central Banks/Banking

Turkey Exposes Central Bank Incompetence

• https://www.zerohedge.com, by Tom Luongo

This week highlighted something really interesting for me that, I think, sets in motion a similar thesis about Turkey but for much different reasons. The sovereign debt crisis will come about purely because of a failure of confidence in institutions.

Competence is the key to staying at the top of human dominance hierarchies, not force. Those built on competence tend to last and those built on force are, at best, meta-stable for a specific period of time.

The difference between what's happening in Turkey with President Erdogan taking control of the Turkish central bank and the end of Mario Draghi's term heading the ECB cuts to the heart of this issue of competence versus force.

The Draghi Put-on

Draghi has projected this aura of the ever-in-control competent manager of Europe's finances while steadfastly holding to policy ideas which have done nothing but destroy capital formation within the Eurozone.

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