Thursday, December 27, 2007

Iran and inflation of currency

Story: "In a rare gesture, Ahmadinejad admitted last week that inflation existed but blamed it on his predecessors, the conservative-dominated parliament, state-run media and bank managers who misused their power and printed too many bank notes.

"Inflation has its roots in the past," Ahmadinejad said in a televised speech.
Ahmadinejad's critics point out that more than 80 percent of Iran's government revenues come from crude exports and that inflation has risen under him despite sharp increases in oil prices to near $100 per barrel currently.
Central Bank of Iran figures for November showed prices of basic commodities and services rising at a 19 percent while overall inflation is running at a 16.8 percent rate annually — double the pace it was when Ahmadinejad took office in 2005. But independent economists and experts put the inflation rate well above 30 percent.

No official figures are available for specific items but over the past month, the price of basic commodities has clearly jumped in many places. In some shops visited by an Associated Press reporter in the capital, Tehran, about 2 pounds of chicken has increased 35 percent to $2.44, and rice is up 43 percent at about $2.12 for 2 pounds.

Prices for fruit and vegetables have almost tripled in the past year in many shops, and housing prices in many neighborhoods have more than doubled since last summer.

Hossein Alavi, a Tehran real estate agent, said he is selling houses at more than twice the price he asked for last year.

A prominent economist, Mohammad Sattarifar, said Ahmadinejad is to blame for flooding the market with too many newly printed bank notes, relying too much on imported goods — including basic commodities — and using oil revenues to pay for the government's day-to-day expenses instead of distributing it to the people as he promised to do in his election campaign.""

Such are the failures of oil fed socialism. I expect to see similar issues with Venezula in the coming years.


Dyspraxic Fundamentalist said...

'Such are the failures of oil fed socialism. I expect to see similar issues with Venezula in the coming years.'

I dare say you will.

SolaMeanie said...

Maybe all the money Achtungdinejad is spending on nuclear weapons could be better spent helping the people of Iran.

Just an observation, one I am sure he wouldn't appreciate.

Palm boy said...

Thanks Matt.

Joel, I think the problem is that self-sustaining internal improvements do nothing to destroy the infedel.

Dyspraxic Fundamentalist said...

If I was president of Iran I would be inclined to try to get a nuclear bomb.

SolaMeanie said...

Believe it or not, Matt my friend, you have hit on something that has always bugged me in geopolitics. Understand, I don't want mad Mullahs getting nuclear weapons. But in an odd way, you can understand other nations in the world being irritated at the double standard imposed by the nuclear armed countries. They feel that we can have the bomb, then they ought to have the right to the bomb as well.

We must do our best to keep them from getting it, of course, but in some ways that genie is out of the bottle.

As the Wicked Witch of the West said, "What a world, what a world!" ;)

Dyspraxic Fundamentalist said...


But as God has so ordered it, the USA has more power than these crazy dudes.

And so has the power to put pressure on them not to get their hands on such weapons.

It all comes down to power. It is the way the world is.

Every Blessing in Christ


under_the_mercy said...

And power corrupts, so pray for us...perhaps I should have put that in the past tense.

"I expect to see similar issues with Venezula in the coming years."

Hmm, I see similar issues here in America, right now.

Best wishes, and please all have a darn good new year. (unless your chinese or something, in which case put this note in a file to be brought out in two months time and enjoy the sunshine and daisies it brings to your day)

Palm boy said...

Matt & Sola, I agree. My freedom instincts say 'let them have nukes'. But I believe at an international level, the lives and prosperity of our citizens is the most important goal.
And having the nut in tehran with a bomb, not good.

Under, I don't see inflation of the US dollar at 30%. While we do have fluctuations in comparison to international currency, it is nothing like Iran is going through.

I like the Chineese new year inclusion, but the Commies over there have banned this blog from their internet.

Happy new year to you all as well.

Dyspraxic Fundamentalist said...

I get people in China visiting my blog 'Shoes Off at the door, Please.'

Don't know how they get through.

under_the_mercy said...

"I don't see inflation of the US dollar at 30%"

Regardless, the actual buying power of the dollar has more then halved since 1980 (and national debt has increased by a factor of 10).