Posted on 02/16/2013 9:13:51 PM PST by bruinbirdman
Due to a strong demand from China and an expansion of its tanker fleet, Iran has begun to adapt to sanctions levied against it by the United States and Europe. In December, Iran’s crude oil exports rose to 1.4 million barrels per day—the highest level seen since the European Union’s imposition of a ban on Iranian oil last summer. Iran’s efforts have been buoyed in large part by consistent Chinese demand for crude, which has made the PRC an indispensable energy partner for the Iranian regime.
Over the past two weeks, Iran’s struggling national currency, the rial, has taken another dive, dropping some 21% to a value of between 39,000 and 40,000 to one U.S. dollar. The decline is the result of ongoing sanctions imposed by the United States and its allies, as well as internal economic mismanagement under the government of Iranian president Mahmoud Ahmadinejad. In all, the rial has lost more than eighty percent of its value over the past year.
Como se dice “No Way Jose”?
Oh, those greedy energy consuming Chinese.
IIRC the standard for hyperinflation is 50% inflation per month. If inflation is a monetary issue is Iran printing rials in excess?
I have always believed in embargoes and other economic pressures on rogue nations.
However I have become convinced that this is a very ineffective and in fact stupid action for the US to take.
Bans, embargoes, etc., have had absolutely no desired effect on Iran, N. Korea or on Cuba, the longest running embargo of all.
What these sanctions do is misdirect the wrath of the citizens of those countries from their government to ours.
“You are hungry? Bad bad Americans caused it.”
Whereas if we let them purchase anything they can pay for with cash, except military high tech weapons or other items critical to national security, they would direct their wrath toward their own government, for there would be no one else to blame.
We do dumb things and then brag about how smart and effective those actions are.
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