Hyper inflation in Iran

Just like in No. Korea, the ruling elite don't suffer...
:mad:
Iran rulers eye currency mess from protected perch
Oct 7, 12 -- Just as Iran's currency was rattling near bottom after a stunning free fall, officials in Tehran opened a trade exhibition that included advanced engineering tools, heavy machinery and robotics. Nearly every Iranian booth had some connection to the country's powerful Revolutionary Guard and the ruling system it safeguards.
This display of the regime's industrial muscle showcases why the collapse of Iran's rial is unlikely to pose any immediate threats to the country's real centers of power, despite protests last week that brought quick speculation in the West about the stirrings of a popular revolt. The top end of Iran's economy remains fully in the hands of the Revolutionary Guard and its networks, which span from oil to aerospace. And the lifeblood for the ruling clerics and the Guard still comes from Iran's oil exports that - on paper at least - bring in tens of millions of dollars a day to buffer against the blows hitting the rest of the country: a tanking currency, skyrocketing prices for imported goods and double-digit inflation.

"There is a lot of breathless talk about the regime collapsing," said Salman Shaikh, director of The Brookings Doha Center in Qatar. "It is no doubt under severe pressures and cannot ignore the currency situation, but the fundamentals of the economy, from the standpoint of the ruling system, are still OK." The sanctions target oil exports, banking, and other sectors. They are imposed over Iran's nuclear program. The U.S. and allies fear that the country's uranium enrichment labs could eventually produce warhead-grade material. Iran insists its nuclear efforts are only for energy and medical uses. But some in Washington and European capitals openly say that, the nuclear issue aside, they would be delighted if sanctions brought the downfall of Iran's clerical leadership.

To be sure, it would take far more than the small-scale demonstrations in Tehran last week to pose any immediate threat to Iran's ruling establishment, which has the huge strength of the Revolutionary Guard behind it. But neither can Iranian leaders afford to ignore the latest upheavals. The battle for perceptions and longer term stability goes by different rules. They must now explain to a reeling public how they intend to stabilize an economy slammed by Western sanctions that have cut into oil exports and a deflated currency that lost nearly 40 percent of its value in a weeklong plummet - and why taking to the streets in protests is not the answer.

Iran's leaders are desperate to quell any sense of uncertainty and panic - which largely drove the downward pressures on the currency. Even small flare-ups could start to erode their claims that sanctions and economic isolation cannot unravel the country. "Iran knows it needs to keep a tight lid on open opposition," said Mehrzad Boroujerdi, a Syracuse University professor who follows Iranian affairs. "As everyone knows well, these things can snowball out of control." One thing that cannot be contained is Iran's internal political skirmishing.

MORE
 
The inflation in Iran is just putting more pressure on them to develop and build nuclear bombs.
 

It's Perfect for the Left. Who are against war they say and instead pushed for a Diplomatic approach (Sanctions) But now that the Sanctions are working and Iran's Economy is Faltering, If there is a war. Those same Lefties will then say there was only a war because we bullied Iran and caused their Economy to Collapse giving them no choice but war.

Just like they did pre and Post WWII. Before WWII the left argued we could stay out of the War, and Use Diplomatic Pressure, and Sanctions on Japan to keep them in Check. After the war, and today they argue we forced Japan into a War with those same Steps they were for before the war.

ah the left lol
 
You get government running most of the country, this is what you get.

Toss in the fact that islam is evil, and the Twelvers are more-so, it will only lead to blood in the streets.

Only thing we should do is take notes.
 

Forum List

Back
Top