Wednesday, October 03, 2012

Federal Reserve

Protests in Iran over rapid printing of the currency. Apparently western intelligence agencies are printing it as well. This headline says Iran cracks down on money changers. I wonder if they used the biblical term to make Iranians look backward. Unsaid in these articles is how sanctions have reduced Iranian oil production.
"Iranian oil production, the backbone of the Islamic republic’s economy, fell by 12 percent in the first three months of the year and is likely to fall even more, industry experts say, as sanctions make it increasingly hard for the country to find markets for its crude.
The decline, documented in a May report by the Organization of the Petroleum Exporting Countries, is sharply at odds with statistics provided by Iran’s Oil Ministry that register no significant change in output over the past year. But it is accelerating so fast that if current trends continue, Iran could lose its position as the second-largest crude oil producer in OPEC to Iraq by June 2013, the organization’s statistics show. "
Iran is also facing declining oil reserves which is why they need to develop nuclear power. Here's some more info.
"Security forces used tear gas and batons against demonstrators angered by a dramatic collapse in the national currency, the rial, which has lost about a third of its value against the US dollar since Sunday. The hour-by-hour decline of the currency provides vivid evidence of the damage wrought by international sanctions, which were imposed over Iran's nuclear program."
"Behind the rial's decline lies a precipitous fall in Iranian oil exports, which have dropped from about 2.5 million barrels per day last year to 1.1 million barrels in August, according to the International Energy Agency.
This has deprived Iran of billions of dollars of revenue and exposed the regime's failure to avoid the damage caused by sanctions."
This highlights why Iran would want a bomb. The predatory behavior of western governments is wreaking havoc and killing Iranians. It seems more stupid than ever to bomb Iran now. In fact, this could be considered a success for Obama's sanctions for people who like forcing others into misery.

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