Ahmadinejad says "enemies have reduced oil sales" after rial loses more than a quarter of its value over the past week.Al Jazeera
Iran blasts 'enemies' as currency plunges
Tuesday, October 2, 2012
Al Jazeera — Ahmadinejad says "enemies have reduced oil sales" after rial loses more than a quarter of its value over the past week.
Iran blasts 'enemies' as currency plunges
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5 comments:
"enemies have reduced oil sales"
So we have reduced our sales of US produced oil???? Whaaaat???
Does he mean "enemies have reduced oil purchases (of Iranian oil)"??? I could see that making USDs harder to get in Iran....
Memo to the Iranians: Calling your customer "the Great Satan" is a good way to foment a decrease in your sales...
rsp,
As far as I can tell, Iran is also a sovereign currency issuer, like the United States. So how can #MMT explain what's going on in Iran and what would be recommendation that #MMT can provide Iran to shore up their economy and improve the Iranian's way of life?
As far as I can tell, Iran is also a sovereign currency issuer, like the United States. So how can #MMT explain what's going on in Iran and what would be recommendation that #MMT can provide Iran to shore up their economy and improve the Iranian's way of life?
Probably change the government. It is losing credibility big time so that fewer and fewer people want to hold its currency. This could be the beginning of a downward spiral that only regime change will be able to resolve.
Stock,
If they are not completely corrupt, they have to rally around their own flag... they seem to be instead bailing out and starting to use USDs as a medium of exchange in Iran..
If the NPR post below is to be believed, domestic dairy producers in Iran are only selling their dairy products in USDs: this has to become unacceptable to the Iranian govt....
The govt has to move in and perhaps nationalize their dairy industry, and any other domestic industry that refuses to operate in Rial.
Then just let the currency float...
rsp,
Matt, this is what happens when trade is severe limited to some nations and regimes are collapsing due to social frictions.
This is what happened to Yugoslavia, it was cut off internationally and currency was destroyed.
Iran needs external inputs they probably can't get enough off, and having their currency accepted offshore for payments is increasingly difficult with the current internal problems. Is a spiral of currency destruction.
I'm calling it now: hyperinflation in Iran in not very long time (couple years top maybe). That's how USA is going to destroy that regime, no need for an invasion at all, just cut purchases and imports there and the regime will crumble in months.
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