Friday, October 5, 2012

Duck! Here comes the hyperinflation.

Hyperinflation stalks Iran while Israel wavers

The collapse of Iran's currency, coupled with rising discontent of workers inside the country, is by far the biggest recent news in that respect. In the last few days, the rial lost 30% to 50% of its street value - 15% on Monday alone - sparking riots and clashes between police and protestors in Tehran Wednesday. Over the past year, the Iranian currency has depreciated by about two-thirds, severely affecting imports and financial stability in the country. People are starting to lose faith in Fiat currencies, is there a possibility that this could spread rapidly?

Posted by khards @ 11:19 AM (1894 views)
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8 thoughts on “Duck! Here comes the hyperinflation.

  • general congreve says:

    While not the best managed currency, this is largely the result of economic warfare, led by the USA and Israel.

    Of course, I’m sure a good bombing to make the necessary foundations to build a central bank will be the end to all their woes, especially once they get loads of freshly printed paper dollars flowing into that central bank in payment for their cheap oil and gas.

    Do these foreigners never learn?

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  • mark wadsworth says:

    NO, as I’ve said many a time, to have hyper inflation, you need currency controls, managed or fixed exchange rates, import or export restrictions, restrictions on movements of currency etc.

    In this case the restrictions are largely imposed by the Yanks pursuing some pathetic thirty year old vendetta, but hey, the outcome is the same.

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  • @2, Mark Wadsworth

    I’m not sure the historical evidence supports that view. The key ingredients to hyperinflation (inflation of > 50% per month) appear to be that the government controls the supply of money (always a paper type currency) whilst simultaneously running a large budget deficit financed by new currency issue.

    Captial controls etc., seem to be a secondary occurrence to this (largely imposed by the government in an attempt to force the populace to use a currency that is viewed by the populae as increasingly worthless e.g. the laws introduced by Robespierre, an interesting side note is that in spite of these, a reverse of Gresham’s law occurred as the inflation approached it’s zenith i.e. the circulation of paper money decreased and ordinary people spontaneously began trading with silver and gold coinage).

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  • general congreve says:

    @2 – A vendetta, but one based on the fact the Iranians gave the US two fingers last time they tried to wrest control of their resources for their own diabolical ends of global domination.

    Iran is James Bond, currently strung up above the shark pool, but foolishly given enough time by the evil super baddy, who is so sure of his own invincibility, that Bond will have time to struggle free and win the day.

    Actually, probably not. But Bond may well have enough time to grab the evil baddy’s nearest and most vile henchman and drag him/her into the shark pool alongside him, i.e. Iran gets flattened and Tel Aviv finds a fat one or two landing on its head.

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  • “Do these foreigners never learn?”

    The US is behind this. What they say, goes….

    That’s why we have low IR in the UK. Bernanke says so. No politician is surprised. They know who calls the shots.

    Iran’s problems have nothing to do with the internal workings of the Iranian currency or management of it. They crossed the wrong people, that’s all.

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  • mark wadsworth says:

    Alan, exactly. This has nothing to do with “fiat currencies”, in fact “fiat currencies” are no such thing – the government prints money by spending it and prevents inflation by taxing it away again. Taxation is actually just the un-printing of money. You can achieve redistribution by printing money and giving it to Group A and unprinting it by taxing Group B. Or you can have “predistribution” by dishing out teh sum of £x to each and every citizen and then taxing away the value of state-protected monopolies.

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  • Dagenham Dave says:

    Iran has a central bank not controlled by the Rothschilds. Ultimately,this is what this vendetta is all about.

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  • This is more to do with economic warfare. CIA agents are allegedly flooding the country with currency ahead of a brutal GENOCIDE.

    All of which is designed to distract us from the carnage they are causing in the Eurozone and USA to consolidate their POWER.

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