Skip to comments.Will Iran Become the Next Venezuela? Inflation rate "exponential," Economy on Verge of Collapse
Posted on 01/11/2019 7:13:02 AM PST by SeekAndFind
Will Iran become the next Venezuela? Almost every Iranian has faced this question. In truth, Iran has not only become the next Venezuela, but the acceleration of its economic collapse is much higher than that of Venezuela.
The economic situations of Venezuela and Iran can be compared by examining the inflation rate and the conversion rate of USD to Bolivars (Venezuela currency) and the inflation rate and conversion rate of Iranian Rials to U.S. Dollars.
Almost all of Venezuelas income is from the oil industry. In 2015, the oil-dependent economy contracted 5.7% and the inflation rate, which was at 57% in 2014, suddenly reached 181%. In 2016, oil revenues fell by 12.7%, and Venezuela's non-oil revenues fell by 19.5%, which in turn brought the inflation rate to 254%.
In 2017, this trend continued. The inflation rate reached 741%, and now a country that once was prosperous because of high oil prices suddenly faced economic disaster. Venezuelans reduced their meals, formed long queues for food and toilet paper, and were forced to eat garbage from dumpsters.
Maduros government blamed the situation on an economic war led by the country's political adversaries with the help of the United States. Thats exactly what President Rouhani and Ayatollah Khamenei say today. In August 2018, Irans Parliament summoned President Hassan Rouhani to answer questions about the countrys economic crisis. Rouhani blamed U.S. sanctions, not government mismanagement, for his countrys troubles.
In September 2018, President Rouhani and his cabinet met with the Supreme Leader, Ayatollah Ali Khamenei. During their conversation, Khamenei mentioned even the shortage of baby diapers, blamed it on "the enemy" (U.S.) who "wants the Iranian people to be angry with their own government."
(Excerpt) Read more at americanthinker.com ...
Drill baby drill!
Historically a country only collapses when it purges its productive farmers. The mullahs have been smart enough to leave the farmers alone and cultivate a rural base.
The Trump curse. Bend the knee or face the consequences. LOL!
Hoping Iran goes broke. What did they do with our 15 billion that bammy gave them?
Did investors just run? They ran so far away? But they just couldnt run away?
And then there is Free Republic where zealots harrangue about American presence in the Mid East. Their sanctimony supports the American enemy Iran
Complain about the economy in Iran and bunch of motorcycle thugs show up and beat you with chains. So the political effects of this will take awhile.
Hopefully that'll spark a YUGE uprising and the deaths of multitudes of the lunatic moslem totalitarians holding millions of secular Iranians in bondage.
lots of mullah mamas?
Just print more money. It worked for zimbabwe./s
The risk is currently at about 42,000.
Rial at 42,000
On the plus side, if Iran fails, it may start the Dominos-a-falling.
trying to find 72 virgins.
They need foreign cash to prop the thing up and they're not getting it from the U.S. due to the sanctions. The Chinese have cash. But these days Chinese money tends to come with some strings attached, as the Kenyans just found out. And the Chinese are famously unsympathetic toward Islamic revolution, at least in their own territory. Perhaps a rapprochement with Russia is in the future?
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