(ZEROHEDGE) – President Recep Tayyip Erdogan's Justice and Development Party's (AKP) Party is in trouble. The lira is crashing and nearing 15 for the first time ever. Inflation is out of control, and Erdogan has discouraged panic hoarding as consumer prices accelerate.
A collapsed lira and soaring prices are primarily due to Erdogan, who forced the country's central bank to unleash a series of hefty interest rate cuts in September. That triggered a cascade in the selling of the lira and a surge in inflation.
So far, Erdogan's "new model" to revive the economy is faltering. People are panic hoarding, forcing prices of goods even higher, which resulted in AKP on Wednesday to present Parliament with a proposal for a new bill calling for increased fines against hoarding of food and other goods. Turkish police targeted dozens of people this week that are accused of stockpiling new cars to boost prices far higher than dealership prices, according to state-run media Anadolu Agency.
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