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Syria-Lebanon-Iran
Iranians are beginning to panic amid rising costs
2012-10-17
Iran has long sought to play down the effects of international sanctions on its economy but the economic crisis engulfing the country can no longer be denied.

The regime of President Mahmoud Short Round Ahmadinejad now talks of an "economic war" but Iranians are beginning to panic about the deteriorating situation and are asking themselves what will happen next.

Pensioner Kamal G no longer understands the world as he stands in a butcher's shop waiting to purchase minced meat. The price for a kilo sets him back over 200,000 rials ($ 16), more than double what the 73-year-old paid just two months ago.

Kamal has been unable to afford steaks for a considerable time while chicken moved out of his price range a couple of weeks ago. Soon even minced meat will be beyond his budget.

"Soon I will be spreading atomic energy on my bread," he says in a joking reference to Iran's controversial nuclear programme which has prompted the sanctions.

The sanctions imposed by the US and European Union
...the successor to the Holy Roman Empire, only without the Hapsburgs and the nifty uniforms and the dancing...
have finally been having the desired effect on Iran since the beginning of the year.

"The suspension of any co-operation by international banks with Iran is the worst one of all," says one economics expert in Tehran. "Nobody can pay or get paid."

Iran lost between 25 and 40% of its primary income as a result of the oil embargo while sanctions have also crippled the country's hopes of attracting foreign investment. Small businesses that have for decades enjoyed a healthy export trade can no longer continue doing business with foreign companies as a result of the banking embargo.

Iran is looking at opening up alternative trading channels in Latin America and Africa but economic experts do not take this plan seriously.

The value of the rial is seen as a symbol of the crisis. The national currency has lost two-thirds of its value against foreign currencies since the beginning of the year and even sectors that have nothing to do with foreign markets are feeling the effects.

Even the bazaar merchants who are considered a part of the establishment and in many cases supporters of Ahmadinejad have had enough.

"How can I conduct responsible business when the currency rates change dramatically from one day to the next?" asks Hossein-Ali, a merchant in Tehran's Grand Bazaar. The continued uncertainty led Hossein-Ali and many other merchants to decide on a short-term strike last week.
Posted by:Glinesh Craling7938

#4  what will happen next ... is that if they don't stop speaking out they will be dragged off to a very nasty jail.
Posted by: Raider   2012-10-17 18:13  

#3  "Soon I will be spreading atomic energy on my bread," he says in a joking reference to Iran's controversial nuclear programme which has prompted the sanctions.

Somehow, I don't think this guy thinks the shortages and high costs are very funny. Don't count on another Green Revolution. That got deep-sixed awhile back by Champ as I recall. He also might starve while waiting for the 12th spook to descend.
Posted by: JohnQC   2012-10-17 13:06  

#2  WSJ: A Top Satellite Provider Cuts Off Iran State Broadcaster
One of Europe's leading satellite providers on Monday said it would terminate its contract with Iran's broadcast company, IRIB, immediately pulling 19 state [Iranian] -owned television and radio channels off the air. Eutelsat Communications SA ETL.FR -0.27% said it stopped broadcasting the Iranian channels in light of European sanctions approved in March and a French regulatory decision. The move comes a little over a week after Iran escalated the jamming of Eutelsat satellites to censor broadcasts during recent protests over a plunge in the local currency. Iranian human-rights organizations and opposition activists praised Eutelsat's decision. For years, rights groups have lobbied satellite companies to drop Iran's government channels, charging that they were propaganda tools of the regime and tools of repression and fear.

"The most important aspect of this decision is to recognize that IRIB is an integral arm of the Iranian intelligence and security services," said Hadi Ghaemi, the director for the New York-based Iran Campaign for Human Rights. "There was no justification for providing services."
Posted by: Anguper Hupomosing9418   2012-10-17 11:02  

#1  Yesterday's NYT ran an article saying that Iran was actually running low on currency, and could not get more printed overseas due to sanctions, nor could it get printing presses delivered due to same.
They may have to get creative & start printing scrip, the type of currency used in US localities in the 1930's when the banking system collapsed.
Posted by: Anguper Hupomosing9418   2012-10-17 10:51  

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