Hyperinflation Comes To Iran

Tyler Durden's picture

Hyperinflation has struck again, this time at ground zero of the most sensitive geopolitical conflict in ages: Iran. EA WorldView reports:

An EA source reports that a relative in Tehran ordered a washing machine for 400,000 Toman (about $240) this week. When he went to the shop the next day, he was told that --- amidst the currency crisis and rising import costs --- the price was now 800,000 Toman (about $480). Another EA source says that the price of an item of software for a laptop computer has tripled from 50,000 Toman to 150,000 Toman within days.

And so the opportunity cost for the Ahmedinejad regime to preserve its status quo gradually grinds to zero, as the entire economy implodes (courtesy of a few strategic financially isolating decisions) making further escalation virtually inevitable, in a 100% replica of the US-planned Japanese escalation that led to the Pearl Harbor attack, and gave America the green light to enter the war.

Summary of McCollum's 1940 memo.

 

h/t L0gg0l

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GeneMarchbanks's picture

Fishy. Something is off.

I'm having some trouble believing that 80 million people are having their prices triple YoY and the streets of Tehran aren't full...

SwingForce's picture

They have washers & laptops?

SheepDog-One's picture

People just have this image of Iran as a bunch of sand dunes with some tents on it and no electricity or running water, contrary to reality that Iran is the most developed country in the mid east. Do some research on it, most of Irans cities, ski resorts, etc look like the U.S.

mrgneiss's picture

This will hit those living on or below the poverty line the hardest, children and the elderly, the bulk of whose income (or family income) is spent on basic foodstuffs.

Comay Mierda's picture

everyone better get ready for the next false flag terror attack.  it will probably look a lot like this:

http://www.telegraph.co.uk/culture/culturepicturegalleries/4220575/Blackjack.html

as a reminder to you all, the piece of shit NWO warned ahead of time of the staged 9/11 attacks in  http://www.youtube.com/watch?v=z3WW6eoLcLI

better make your preparations

 

Fukushima Sam's picture

All of the Iranians I have known are good people.  I don't want to hurt them.

john39's picture

i will get hell for saying this, but truth is truth... far more culture and civilization in Iran than the United States.   and for that, they must die- NWO.

Shocker's picture

Numbers like that is definately hyperinflation. The US is experiencing kinda the same thing. Inflation is hitting everything that is valuable and we need.. Example: Food, Housing...

Oh we have deflation on TV, Radios, DVD Players, stuff that means nothing. If they raised/lower the prices people still wouldn't buy because they already have 10 of them

Inflation in the US mixed with our economy is not good at all

http://www.dailyjobcuts.com

~

jon's picture

i'm sorry, but no. the official rate was around 11,000 rial to 1 USD last week, and then we were hearing of street prices that made the true exchange rate look closer to 17,000 to 1. 800,000 toman is 8,000,000 rial. 8,000,000 rial to $480 is still an exchange rate of 16,666 to 1.

two weeks going by, with a single inflationary event. that is bad, yes. but that is not hyperinflation.

dark pools of soros's picture

your analysis is hyperdeflating our hyperaction

smlbizman's picture

alright who is the new skank on bloomberg...she looks like a fox news broad fantasy at a brothel with her legs forced in your face ...the spanish weather girls think shes a whore...now i know you are asking , "hey  smlbizman with all these positive qualities what could she have possibly done to piss you off? thanks for asking.... i just get in, beer in hand completly glued to the screen learning from the experts, especially from the seriously leggy addition in yellow,...when {que jaws music..da nant da nant..}  during a little  gold chat time, .....out of left field , more laughingly than ever witnessed before from a professional news person, she makes this completly  derogatory and  disrespectful  joke about ron paul and gold in the same sentence!!!! and that is just way to far...i am going to keep watching her probably more closely and at times in slow motion to make sure she doesn't cross the line again.....

trav7777's picture

Iran has little choice at this point but to set off an atomic weapon.

Mr Lennon Hendrix's picture

And they have little chance of buying PM on the market either.  If gold makes a move up at the same time as their currencie is wrecked, they are priced out.  Considering gold's role on Central Banks balance sheets, that could mean Iran is out of the game.

As far as an A bomb, they can't deliver it. 

Milestones's picture

How far away do you think the largest oil field is in Iraq-Quwait-Saudi Arabia etc? The bomb doesn't have to hit here.      Milestones

tooktheredpill's picture

don't worry they will just peg to the USD shortly...

BoNeSxxx's picture

They may not be able to pay cash for gold but they can always trade oil for it :)

Element's picture

...As far as an A bomb, they can't deliver it...

Ranges of Iranian missiles:

Shahab-3b: 2,500km
Sajjil-1 and 2: 2,000km
Shahab-3a: 1,800km
Shahab-3: 1,300km
Shahab-2: 500km
Zelzal: up to 400km
Fateh: 170km
Tondar: 150km

A 2D or 3D single-stage HEU 'a-bomb' munition can be less than 200kg and a 2D munition can fit inside a 20 liter drum.

Don't kid yourself, they can deliver.

Expect 1 to 5 kiloton yield from that sort of device, which would be about ideal for a general purpose tactical munition.

Launch one into a major naval base via torpedo, or a major oil loading facility, or under a CNV, or on a cruise weapon, or a ballistic weapon, or use it as a limited EMP device, to raise the electromagnetic noise-floor so radars and comms and SAMs no longer function for several hours, so you can launch several at defended targets. Or you send in a 4 man spec-ops man-portable system from submarine, or HALO them in.

They could deliver in so many potential ways it would make your head spin.

darkhorse222's picture

lol you probably fell for the old "Iraq has WMD's and Saddam blew up the WTC" line of crap-same whine-new bottle 

some people are SO easily suckered-its scary

Element's picture

Hardly, I bet I know a hell of a lot more about this subject than you do.

If you have a factual point or an argument to make, then make it, by all means, otherwise STFU.

Mr 6-weeks and 6-days noob

Element's picture

I'm sure Panetta does not actually believe any of that.

He is trying to rationalise inciting sanctions that WILL close the strait, whilst also trying to cut the Gordian knot, before the war starts.

I read Panetta's remarks to mean the Pentagon and also politics is finally getting a clue and cold-feet, realising they are making a series of gigantic mistakes that can not be undone again if the Iranians do close the strait ... say, before the end of next week.

Teamtc321's picture

"i am going to keep watching her probably more closely and at times in slow motion to make sure she doesn't cross the line again....."

 

Watch before she crosses her leg's. There fixed it for ya.........

 


Tortfeasor's picture

How many two-week periods of this can the people stand?  Cause 50% inflation in biweekly periods doesn't just stop happening

Mr Lennon Hendrix's picture

I said S woult HTF after the first 50%, so I think it's game over.  Just a matter of a day or two.

YBNguy's picture

Dude a little above this asked why they are not rioting. Well just look up what happened to them the last time they tried (a couple years back). They were attacked by the police, Rev Guard, regime sympathizers, and non-secularists. Its not fun having acid thrown at you and getting hacked up with tools of the trade...

Bob Sacamano's picture

And BHO did all he could to support the protesters efforts.....even just a comment of general support.......oh wait, no he did nothing.  Never mind.

RafterManFMJ's picture

 

 

So they have passed an NDAA as well?

Oh regional Indian's picture

Iran was raped a long time ago by the US/UK combine.

Certain facts are undeniable and temporal correlations are undeniable too.

1. Mohammad Mosaddegh or Mosaddeq (Persian: ??????? ???????, IPA: [mohæm?mæd(-e) mosæd?de?] ( listen)*), also spelled Mossadegh, Mossadeq, Mosadeck, or Musaddiq (16 June 1882 – 5 March 1967), was the Prime Minister of Iran from 1951 to 1953 until being overthrown in a coup d'état.

His administration introduced a wide range of social reforms but is most notable for its nationalization of the Iranian oil industry, which had been under Britishcontrol since 1913 through the Anglo-Persian Oil Company (APOC/AIOC) (later British Petroleum or BP).[1]

Mosaddegh was removed from power in a coup on 19 August 1953, organised and carried out by the United States CIA at the request of the British MI6 which chose Iranian General Fazlollah Zahedi to succeed Mosaddegh.[2]

Then, note this:

2. After nearly achieving agricultural self-sufficiency in the 1960s, Iran reached the point in 1979 where 65 percent of its food had to be imported. Declining productivity was blamed on the use of modern fertilizers, which had inadvertently scorched the thin Iranian soil. Unresolved land reform issues, a lack of economic incentives to raise surplus crops, and low profit ratios combined to drive increasingly large segments of the farm population into urban areas.

The 1979 Revolution sought self-sufficiency in foodstuffs as part of its overall goal of decreased economic dependence on the West. Higher government subsidies for grain and other staples and expanded short- term credit and tax exemptions for farmers complying with government quotas were intended by the new regime to promote self-sufficiency. But by early 1987, Iran was actually more dependent on agricultural imports than in the 1970s.

 

Coincedence? Hardly eh? Chemical Fertilizer based agriculture for Iran, force-fed through a coup.

C'mon folks, the gig was up a long time ago. Ever heard the story of the "Pefect Mint Plate" for the $100 bill that was given to Iran (Shah) for counterfeiting petrodollars. It's not tin-hat stuff, it's on some record I cannopt recall right now.

Iran is a huge dis-traction for something else. This is a four-hanede beast we a re dealing with. What is the other left hand doing? North-Korea? Oh nose, another starving millions dictatorial regime. Now we need a triage...let's see.... India:

3. Jan 10 (Reuters) - Indians may think twice before gulping down a glass of milk after the country's food safety regulator found most samples collected in a survey were either diluted or adulterated with products including fertilizer, bleach and detergent.

 

The study, conducted this month by the food safety and standards authority of India, found milk was adulterated with skimmed milk powder and glucose, or more shockingly hydrogen peroxide, urea and detergent.

 

Hydrogen peroxide is used in bleach, while urea is commonly used in fertilizer.

 

"Consumption of milk with detergent may cause health hazards and indicates lack of hygiene and sanitation in the milk handling," the regulator said in a report.

It's the food chain that needs some serious attention. 

Not software and water-wasting god-damned washing machines.

ori

My First Ever post... ;-)

KK Tipton's picture

Exactly.

There is a YouTube video where a CIA man talks about how they attacked the milk/food supply in Cuba.
They would dump concrete powder in a tank truck of milk to ruin it and many other prankish bullshit tricks.

I'm sure the US is not the only country that does this anti-human crap. But as an American citizen...you need to be aware of what you are supporting. And what the government is doing in the name of "freedom".

Cathartes Aura's picture

protecting the right to uncontaminated food is ongoing, and many would do themselves a favour in paying attention to all the new "laws" and "acts" being installed, globally. . .

"contaminating" foods helps prepare the ground for the global Codex Alimentarius, a global Food RuleBook, which "they" have been pushing since the 60's, and is "normalising" the nationstate's food, globally, and also pertains to "supplements, herbs" and pretty much anything "ingested" that they would like to control and profit from (putting "vitamins" into prescription drug territory, etc.). . .

Obama Wholesale Approves Genetically Engineered Foods; Agent Orange herbicide use to expand

http://foodfreedom.wordpress.com/

lots of behind the scenes work happens over "holidays" - this article is a a good place to start. . .

Oh regional Indian's picture

Precisely CA. 

Just Google Agenda 21. See what they are doing recently to raw-milkers and vegetable gardners and lemonade selling kids......but agent orange....talk about a rhyme from a very bad tyme, coming home to roost, eh?

Agent orange, shiver and crumble me timbers...

ori

Troll Magnet's picture

I'd google that but I don't want a bunch of DHS agents to come and whisk me away in the middle of the night.  I mean, I did once fantasize about having sex with a hot Iranian chick in college but...

Ruffcut's picture

Hey troll, fanasize away. Any hot chick is good to go. But, I sense you never knew one, let alone touched one. LOL.......

Cathartes Aura's picture

indeed OrI, it's frightening, and incredibly sad

but it's also rather karmic, as I'm sure you'd agree.

best wishes.

 

edit to add:

USDA Scientist Reveals All: Glyphosate Hazards to Crops, Soils, Animals, and Consumers
TBT or not TBT's picture

Mossadeg wanted to pull a nationalisation that went too far. There are better ways to get a country happy. The time of the Shah is widely remembered nostalgically by Iranians, for good reason. If he could have stomached a bit more authoritarianism the middle east, not just Iran and the iranian people, would be better off today.

Oh regional Indian's picture

You sir need to brush up your iranian history.

Heard of SAVAK?

ori

Tompooz's picture

The weakest son of Muhammad Reza Shah was hired by the Anglo-US. Without his competent PM, Abbas Howeida, he was nothing but a carefully constructed PR product. I remember him appearing on TV in his last days, looking like a bookkeeper, completely out of his depth, lost without  those who used to prop him up.

Because he was so weak, The SAVAK became a law onto itself with a leadership that was out to profit from the artificial threats to the homeland.  "The communists" were the bogeyman of the day and domestic terror used for a "war" on them.  The scum floated up.

Sounds familiar?

Yes, I'm sure many old Iranians are nostalgic for the old days. A Revolution is a terrible thing--the killings have been massive.

But that is past and Iran is now a young next generation.   They must be given a chance to deal rationally with what they have inherited from the Revolution.

Unfortunately, there is one agressive, arrogant country in the ME that does not want to give them that chance.

Augustus's picture

Mosaddeq was a two bit communist who had lost the support of his own communists in the government.  Yes, he was overthrown by his former supporters, to the surprise of the Brits and Americans, and without any assistance.  Flakey conspirace theories about Iran are more prevelant than of the Truther bull ship.

JOYFUL's picture

Classic.

to the surprise of the Brits and Americans, and without any assistance. 

Another comedic talent on the rise here. Hope you're taking notes MDB.....

to the surprise of Dr Ben and the entire FED, printing  a few trillion $ and handing them over to the banking sector has done little to bring about our economic revitalization.

 

Without a more aggressive oiling of the engines of our new service driven economy, the President's hands are tied in fulfilling his committment to bring Americans through these challenging times in better  stead than when he began his noble efforts to shape our futures.

 

Flakey, two-bit Kleptocraptic Korporo\Kommunist Konspiracy theories have got us into this mess, and we won't be able to turn the Bull Ship[?!?!] of State around until  both Iran & the Truthers are overthrown!

TheFourthStooge-ing's picture

While sitting in his soiled diaper and drooling on himself, lame troll Augustus should have been more ashamed of the fact that he wrote:

Mosaddeq was a two bit communist who had lost the support of his own communists in the government.  Yes, he was overthrown by his former supporters, to the surprise of the Brits and Americans, and without any assistance.

In their own words:

CIA Clandestine Service History, "Overthrow of Premier Mossadeq of Iran, November 1952-August 1953," March 1954, by Dr. Donald Wilber

http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB28/index.html

 

Oh regional Indian's picture

yup. Exactly. Pretty wild that this is all open information and yet so many are either un-aware or under-informed.

ori

eureka's picture

Yeah, but Timmaahh is talking to Chinaaah:  "keep buying USTB & USD and help US with Iran sanctions - and we'll back off pushing for Renminbi revaluation and keep buying your consumer goods..."

US REALITY is US-CHINA CO-DEPENDENCY - for how much longer...?

Till Iran is bashed and China turned fully Keynesian Empire like US...?

OR - will CHina keep buying Iranian oil - and up the dumping of USTB - AND - buy EU BONDS - which will correlate to CHina's own novel Keynes'ianism.

EU (+applicant nations) ARE TWICE THE MARKET SIZE OF US.

THUS TO CHINA EU IS TWICE AS IMPORTANT AS US.

Badabing's picture

A country like Iran that has tons of oil should not be experiencing hyperinflation.

I agree with GeneMarchbanks something is fishy.

We have seen this before, a country that doesn’t play ball suddenly has a currency crisis.

I hypothesize the currency of a small countrys curency can be contracted or expanded at the whim of the people that control the international currency through manipulation of the FX markets. But only in a fiat world. 

Augustus's picture

The more money the idiot takes in, the more it spends.

Iran has been running deficits for years.  They consider oil revenues as free money, available for waste.  Simply look at the energy infrastructure.  No investment of any kind for either refining or power generaton.

joe90's picture

It has two countries right next door that have had pallet loads of cash flown into them over the last 10 years or so, admittedly it's USD, but surely this could have been smuggled in over this time and has been sitting in the sidelines ready to be released at a time like this?

joe90's picture

It has two countries right next door that have had pallet loads of cash flown into them over the last 10 years or so, admittedly it's USD, but surely this could have been smuggled in over this time and has been sitting in the sidelines ready to be released at a time like this?

Meremortal's picture

"Far more culture and civilization in Iran..."

They hang gays for existing, or crush them under rocks.

They beat women in the streets for showing an ankle.

Oh, yes, what a culture!

Vlad Tepid's picture

I suggest you look up Persia, Zoroastrianism, the Selucid Empire, the Sassanids, Cyrus the Great...any of these will back up the assertion that you are naysaying.  The area known as Iran since the invasion of Islam is hardly representative of the cultural achievements of the Persian people.  It's sort of like comparing the Maya civilization to the cultural achievements of Guatemala.

Oh regional Indian's picture

Well said Vlad. Worse yet, it's never as bad on the ground as the western sensationalist MSM make it.

ori

Troll Magnet's picture

yup.  iran could do the same to us and portray us as a bunch of christian extremists if they focused on that segment of the population.