Iranian Rial

[bacpacker]

Has anyone heard any news of this over the past week or so? I just stumbled across it and thought it was worth posting up.

http://www.businessinsider.com/iranian-rial-hyperinflation-2012-10

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HYPERINFLATION: Iran's Currency Is In A State Of Total Collapse
Matthew Boesler | Oct. 1, 2012, 12:22 PM | 5,186 | 11

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Mahmoud Ahmadinejad

AP Photo/Franklin Reyes
The Iranian rial plunged today against the U.S. dollar as western sanctions against the state's oil exports are really starting to up the pressure on Iran.

Earlier today, the rial was down 7 percent against the dollar, meaning it had lost a quarter of its value in just the past week.

However, it continued to drop throughout the day, losing more than 13 percent, according to the Jerusalem Post.

Israeli finance minister Yuval Steinitz said the Iranian economy is now "on the verge of collapse." Via The Guardian:

Israel's finance minister, Yuval Steinitz, said Iran's economy "is not collapsing, but it is on the verge of collapse". The loss of oil revenue would approach $45bn-$50bn (£28bn-£31bn) by the end of the year, he told Israel Radio. "The Iranians are in great economic difficulties as a result of the sanctions."

His comments followed the leak last week of an internal foreign ministry report, which said international sanctions were having a profound effect on Iran's economy and could be destabilising the government. But the measures had yet to persuade the regime to abandon its nuclear programme and, therefore, additional sanctions were needed.

According to an anonymous Israeli official quoted in Haaretz, Israel had stepped up efforts to persuade the EU to impose a fresh round of sanctions.

BBC analyst Sebastian Usher wrote that the plunge in the rial was so bad today that Iranian websites that publish exchange rates for the rial blacked out quotes for the currency's price on the website:

The Iranian rial is in freefall. The collapse was so precipitous that Iranian currency websites blanked out the rate.

Usher also provided some color on what it's like on the ground in Iran right now as fallout from the collapse of the real ensues:

International attention may be focused on the country's alleged ambitions for a nuclear bomb, but for ordinary Iranians it is the economy that is the real issue.

Inflation is raging, making some basic foodstuffs prohibitively expensive. Economic sanctions, led by the US and European Union, have played a key role. Iran has been all but frozen out of the global banking system, with its oil exports slashed.

But government mismanagement has also played its part. A government exchange centre undercutting the black market rate, launched just last week, has only made things worse. Opposition websites are castigating the authorities, with one website accusing the central bank of being incapable of getting the situation under control.

Read more: http://www.businessinsider.com/iranian-rial-hyperinflation-2012-10#ixzz286JgfKmE"

I try to keep an eye on various news topics as I can, monitarilly in particular. I don't much give a shit what happens to Iran, but if this continues it could well cause serious ramifications in an area that is already set to explode. Eygpt, Syria, Lybia are all tinderboxes.

[izzyscout21]

This doesn't really surprise me. Things like this happen when you have a crazy, meniacal whacko for a leader.

Me, I invest in Iraqi Dinar..............it's gonna make a comeback...............

[4suchatimeasthis]

Not really related, but I read on drudge today that one of his (Mahmoud Ahmadinejad) lackeys more or less quit today, and is seeking asylum here. They are in NYC for the useless talks, and apparently his entourage is hitting up a lot regular places (Riteaid, Payless shoes, etc) to get hard-to-find items, like shampoo, and shoes. Very sad.

But yes, a good thing to watch....

[ladyhk13]

^more infiltration than assylum IMO.

[msomnipotent]

I read yesterday that their currency fell 80% compared to the US dollar this year. Shop owners stopped selling non-perishables because they can't afford to re-stock their shelves. I expected to have to pay a lot more for items or barter, but I didn't plan on shops to altogether stop selling. I will have to adjust my preps for that. It is a good thing that I am starting to be a little happy with my food and hygiene stocks and can refocus on things like extra clothes and household items.

[ladyhk13]

MsO what do you think the spillover to the US will be from the decline of Iran? I don't buy anything from them and personally couldn't care less if it were blown off of the face of the map, but I though that the only way they could hurt us economically would be if they closed the Strait of Hormus (sp) which would cause our gas to go through the roof and also cause us to use military force. I'm not sure how their mess is going to affect my preps or if I should be actually changing them due to this. I have to be honest that I haven't watched this closely.

[Willie51]

MsO what do you think the spillover to the US will be from the decline of Iran? I don't buy anything from them and personally couldn't care less if it were blown off of the face of the map, but I though that the only way they could hurt us economically would be if they closed the Strait of Hormus (sp) which would cause our gas to go through the roof and also cause us to use military force. I'm not sure how their mess is going to affect my preps or if I should be actually changing them due to this. I have to be honest that I haven't watched this closely.

Ditto

[ak474u]

MsO what do you think the spillover to the US will be from the decline of Iran? I don't buy anything from them and personally couldn't care less if it were blown off of the face of the map, but I though that the only way they could hurt us economically would be if they closed the Strait of Hormus (sp) which would cause our gas to go through the roof and also cause us to use military force. I'm not sure how their mess is going to affect my preps or if I should be actually changing them due to this. I have to be honest that I haven't watched this closely.

I wouldn't change much, obviously Iran only produces terrorists, and oil, and they can't do the latter without foreign help. If they close the Strait of Hormuz, they'll get attacked, but the short term of it is that gas goes up a lot, and the side effect is higher prices on anything made of petroleum products, or delivered by a vehicle that uses them. So, we'd see higher prices for just about everything for a short time. This is why I think it's crazy not to build every pipeline we can, and drill as much as possible, but I'm just a stupid American, what do i know? I would consider stocking more of things you use, and maybe extending that supply by several months at a minimum. If I had the space, that's what I would do.

[ladyhk13]

Really what I wish we were doing more right now was getting those 2 - 1000 gallon propane tanks out to the property and getting them filled. Propane is fairly cheap so it would be nice to get them filled soon.

[msomnipotent]

MsO what do you think the spillover to the US will be from the decline of Iran? I don't buy anything from them and personally couldn't care less if it were blown off of the face of the map, but I though that the only way they could hurt us economically would be if they closed the Strait of Hormus (sp) which would cause our gas to go through the roof and also cause us to use military force. I'm not sure how their mess is going to affect my preps or if I should be actually changing them due to this. I have to be honest that I haven't watched this closely.


It isn't that I think their crisis will have anything to do with us, but more of a "if it can happen there it can happen here" kind of thing. I don't think we will be attacked by zombies, but I am certain we will be in a financial crisis of our own soon. I was expecting more of a slow descent, but it happened much quicker than I would have expected in Iran. It can happen that quickly here, too.

[ladyhk13]

It isn't that I think their crisis will have anything to do with us, but more of a "if it can happen there it can happen here" kind of thing. I don't think we will be attacked by zombies, but I am certain we will be in a financial crisis of our own soon. I was expecting more of a slow descent, but it happened much quicker than I would have expected in Iran. It can happen that quickly here, too.

MsO you are right in the thought of "if it can happen there it can happen here" kind of thing. I wasn't sure where you were coming from in regards to how their downfall was going to affect us so now I get it, thanks for explaining. Yeah, they really are hitting bottom fast and I hope that it doesn't ever happen like that here. I think we do get information better here so I would hope to think that if something that drastic would be told to us with some notice or we could see it coming...know what I mean? We do have some very smart financial people in the US so even though we don't like them most of the time I would hope if we were headed for a meltdown in such a short period of time they would yell "fire."