Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Will Iran Become the Next Venezuela? Inflation rate "exponential," Economy on Verge of Collapse
American Thinker ^ | 01/11/2019 | By Babak Vaziri and Sina Nahavandil

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 Venezuela’s 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.

Maduro’s government blamed the situation on an “economic war” led by the country's political adversaries with the help of the United States. That’s exactly what President Rouhani and Ayatollah Khamenei say today. In August 2018, Iran’s Parliament summoned President Hassan Rouhani to answer questions about the country’s economic crisis. Rouhani blamed U.S. sanctions, not government mismanagement, for his country’s 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 ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; News/Current Events
KEYWORDS: iran; muslimworld; trumpmiddleeast; venezuela
Navigation: use the links below to view more comments.
first 1-2021 next last

1 posted on 01/11/2019 7:13:02 AM PST by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

Drill baby drill!


2 posted on 01/11/2019 7:13:44 AM PST by dhs12345
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind



The reason we say that the acceleration of the collapse of Iran’s economy is much higher than Venezuela is because it took two years for Venezuela’s inflation rate to increase from 57% to 254%, but in Iran it took only five months.
3 posted on 01/11/2019 7:14:09 AM PST by SeekAndFind (look at Michigan, it will)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

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.


4 posted on 01/11/2019 7:15:41 AM PST by allendale (.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

The Trump curse. Bend the knee or face the consequences. LOL!


5 posted on 01/11/2019 7:16:12 AM PST by FLT-bird
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Hoping Iran goes broke. What did they do with our 15 billion that bammy gave them?


6 posted on 01/11/2019 7:18:05 AM PST by I want the USA back (Lying Media: willing and eager allies of the hate-America left.)
[ Post Reply | Private Reply | To 1 | View Replies]

Did investors just run? They ran so far away? But they just couldn’t run away?


7 posted on 01/11/2019 7:19:34 AM PST by dsrtsage (For Leftists, World History starts every day at breakfast)
[ Post Reply | Private Reply | To 5 | View Replies]

To: SeekAndFind

And then there is Free Republic where zealots harrangue about American presence in the Mid East. Their sanctimony supports the American enemy Iran


8 posted on 01/11/2019 7:22:24 AM PST by bert ( (KE. N.P. N.C. +12) Princess Gray Beaver, for President?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

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.


9 posted on 01/11/2019 7:45:44 AM PST by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
Will Iran Become the Next Venezuela? Inflation rate "exponential," Economy on Verge of Collapse

Hopefully that'll spark a YUGE uprising and the deaths of multitudes of the lunatic moslem totalitarians holding millions of secular Iranians in bondage.

10 posted on 01/11/2019 7:53:58 AM PST by tomkat
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Great news!


11 posted on 01/11/2019 7:54:23 AM PST by McGruff
[ Post Reply | Private Reply | To 1 | View Replies]

To: I want the USA back

lots of mullah mamas?


12 posted on 01/11/2019 8:18:44 AM PST by aces
[ Post Reply | Private Reply | To 6 | View Replies]

To: SeekAndFind
Maybe it will make Iraq revalue their Dinar. That’ll make the Ponzi salesmen happy.
13 posted on 01/11/2019 8:28:47 AM PST by vetvetdoug
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Just print more money. It worked for zimbabwe./s


14 posted on 01/11/2019 8:29:51 AM PST by dynachrome (Build the wall, deport them all.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

The risk is currently at about 42,000.


15 posted on 01/11/2019 8:49:52 AM PST by nuconvert ( Khomeini promised change too // Hail, Chairman O)
[ Post Reply | Private Reply | To 1 | View Replies]

Rial at 42,000


16 posted on 01/11/2019 8:51:40 AM PST by nuconvert ( Khomeini promised change too // Hail, Chairman O)
[ Post Reply | Private Reply | To 15 | View Replies]

To: dhs12345

Where’s Allah?


17 posted on 01/11/2019 9:32:48 AM PST by existentially_kuffer
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

On the plus side, if Iran fails, it may start the Dominos-a-falling.


18 posted on 01/11/2019 9:32:52 AM PST by ImJustAnotherOkie (All I know is what I read in the papers.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: existentially_kuffer

trying to find 72 virgins.


19 posted on 01/11/2019 11:50:41 AM PST by dirtymac (Now is the time for all good men to come to the aid of their country! Now)
[ Post Reply | Private Reply | To 17 | View Replies]

To: SeekAndFind
Unmentioned, and not visible in the budget either, is the fact that Iran has been exporting revolution for forty years and it tends to be a very expensive business when your budget goes bang in Israel or Syria with no return on investment. Oil income can stave that off for a while but when it finally bites, it's an exponential curve.

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?

20 posted on 01/11/2019 12:14:11 PM PST by Billthedrill
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson