Will the Iranian economy collapse, and the Thug-In-Chief be toppled, before the Mahdi returns? By Robert Tait in The Guardian (thanks to Morgaan Sinclair):
Iran's financial system suffered a fresh jolt yesterday with panic selling on the stock market after the president, Mahmoud Ahmadinejad, abruptly ordered banks to cut interest rates sharply, despite surging inflation.The order, which Mr Ahmadinejad issued by telephone during a visit to Belarus and which flew in the face of expert advice - has triggered warnings of a financial crisis and spiralling corruption amid fears of a capital flight from the country's lending institutions.
Mr Ahmadinejad's decree forced all state-owned and private banks to slash borrowing rates to 12%. Inflation is officially 15% but is generally believed to be much higher. State banks had been offering rates of 14%, while those in the private sector ranged from 17% to 28%.
The decision caused panic in the Tehran stock exchange, with private banks losing much of their share value overnight. Shareholders in one bank, Karafarin, queued on Wednesday to sell their stock when previously there had been 1.2 million applicants to buy its shares.
There was speculation yesterday that the move could force the resignation of the economy minister, Davoud Danesh-Ja'afari, who was not consulted.
And maybe of Ahmadinejad himself: "Tehran rate cut 'is economic suicide,'" from the Gulf Daily News (thanks again to Morgaan):
TEHRAN: Iran's Press and economists yesterday slammed a decision by President Mahmoud Ahmadinejad to slash interest rates, describing the move as "incomprehensible" and risking "economic suicide".The rate cut decision, which economists said could overheat an already inflationary economy, appeared to have been taken without the knowledge of economy minister who had said exactly the opposite just hours earlier.
"Economic suicide for banks," the Mardomsalari newspaper said of move.
"The economy minister and the head of the central bank have to explain this decision since this decree is incomprehensible for economists," the economy minister in the previous reformist government, Saeed Shirkavand, said.
Just the economy minister and the head of the central bank? Not the head Thug?
I thought charging interest was haram in the first place.
Anyway, if the economy collapses, it will be all Israel's fault to be sure...
"TEHRAN: Iran's Press and economists yesterday slammed a decision by President Mahmoud Ahmadinejad to slash interest rates, describing the move as "incomprehensible" and risking "economic suicide"."
Economic suicide? This is music to Ahmadinejad's ears, as it's his hearts desire to bring this about. He wants his imaginary friend, The Mahdi, to take center stage. And soon.
What a fool.
I bet Ahmadinejad isn't going to be slashing the Jizya tax anytime soon... He'll use this panic selling to justify an increase...
Cheers,
http://doctorbulldog.wordpress.com
There is one important part of the Iranian economy that the American government is overlooking. That is Dubai. In Dubai Iranian investors have sunk a hundred billion, or more, of dollars. They xanadus created, the luxury apartments and hotels, are being counted on not only by the Iranian business people eager to invest outside shaky Iran, but close enough so that they can visit and oversee their investments, but also by the corrupt clerics who make up the new ruling class in the Islamic Republic of Iran.
The local Arabs are not fans of the Persian Shi'a, and are not likely to mind economic damage done to Iran -- even if that damage is done in Dubai. It would not take much to scare off Western and indeed other Muslims from buying apartments or otherwise investing, or visiting as tourists, Dubai. And great physical damage could be done as well to those skyey apartment complexes and scherehazade-luxury hotels.
But this is not openly discussed. Mere hints that part of the pressuring of Iran will include damage to Iranian investments in Dubai will get the attention of Iranian businessmen and even those clerics, with their funds in Dubai.
A very good way to pressure Iran, to show that there is no place ot hide, or invest, that money.
Iran is not the only place where damage can be done, and investments undone, should the Western powers really wish to inflict attention-getting damage sp as to bring to heel -- walkies! -- the Islamic Republic of Iran.
"slash interest rates"? What "interest rates" in the Islamic Republic of Iran? The Islamic Republic of Iran don't need no stinkin' interest rates.
Who needs an economy when you have Allah, right Nasseem?
What for you need an economy when you can have 'the bomb!?'
This will be interesting:
Keyzar Trad, “Out Of Context” Sidekick for Al Hilali, Rewrites the Koran
and the sequel to part one if you want a laugh:
http://sheikyermami.com/2007/05/26/shakin-the-sheik-part-ii-the-fixers-know-how-to-shut-up-sheik-al-hilali/
Financial savvy is not one of Islam's strengths. Squalor is preferred.
how dare iran charge intrest. did'nt uncle mo forbid it. how dare iran violate allah's edict. what's going on
Huh? Wait a minute, according to LARIBA muslims are invited to live without interest. Must be one of those tenets that only apply in dar al harb. Live free amongst the infidels taxpayer subsidized of course. Does anyone really think they would actually contribute to the betterment of our stinking Infidel, er Crusader/Zionist hogzilla countries?
Look for bombs to start going off in the pricier areas of Dubai, sending the foreign investors fleeing.
They're delusional for trusting in the stability of any Islamic regime, since Islam is founded on the sands of irrationalism.
And will be on that unstable and shifting surface until it either Reforms (expurgates the violent Koranic suras to neutralized metaphors and becomes dogmatically peaceful), or Departs (implodes; says Sayonara; takes The Big Sleep; hits the road, Jack; joins Baal and Quetzecoatl in the crowded dustbin of theo-terror history).
Are the banks in Iran that charge "interest" (usury being forbidden by islam) run by Frontmen infidels to allow for this curious discrepancy?
"I thought charging interest was haram in the first place.
BunrattyBill,
You're right of course, but for some odd reason our intellegence agencies never seem to miss an opportunity to miss an opportunity.
We should be driving points like this home to the Iranian people, along with the observation that Sharia law really means something when it comes to hanging a 17 year old rape victim because she couldn't produce four witnesses to her rape, but it means absolutely nothing if it doesn't serve the interests of the holy men that rule the country.
We should be noting every last violation of Sharia law by regimes like Irans, and be certain that the guy on he street in Iran knows it.
For all the billons we spend on the CIA and other intellegence agencies, we don't seem to be buying much smarts for all the money.
Excellent! Allah knoweth best.
It will either be Israel, the US or Western Culture that is to blame. Hey, we in the West created modern banking so it must be our fault.
See how President Ab makes his decisions at this comedy web site: http://www.berryburger.com/funstuff_74.htm
I believe that there are casuistic ways of getting around the prohibition against interest.
The occasional notices at DW of the offer of "sharia-compliant" lending terms by Western banks to Muslim borrowers illustrates this. An example of this, I think, is for the lender to purchase whatever the borrower wants and then sell it to the borrower at a higher price, taking payment over time. It avoids the forms of the prohibited activity while preserving the substance. Just like contracted marriage, practiced among the Shia, which avoids the form of prostitution while instantiating its substance.
But this news is very encouraging. Perhaps Ahmedinejad will destroy the economy of Iran, or his own government.
Well, I've (& others) been saying all along their economyis a shambles, yet he's buying nuke access right & left...it's only a matter of time...
...either his economy collapses, or his delusional nuke weapons plans succeed, and he uses them in his schizopathic attempt to bring forth this "12th imam" mahdi mumbo jumbo so he comes off as a prophet.
He has no choice...if he cuts, it's economic suicide to HIM (but it buys him time), if he doesn't, the stifling rates will choke off the economy causing his inevitable collapse.
It's one major reason they haven't been leveled yet.
If it works for us, it's all without a shot fired.
"Never interfere with an enemy in the process of committing suicide." (Napoleon)
My first reaction is that this is an attempt by Ahmendijahd to impose conditions on the banks that will force the owners to sell. Then Ahmendijahd and his cohorts will take over the banks for next to nothing. This stunt could have been ordered by the Mullahs.
A very good reason for the West to ban Shariah banking - after all, even Iran doesn't follow it.
Ahmendijahd is up to something. We will find out very soon. He isn't stupid.
Let their economy collapse, and for once, let the West finally wise up and give the Iranians no economic aid - a move that would only prolong the life of that wicked regime, and mean more years of women arrested and beaten up for not wearing burkas or head coverings deemed 'suitable' by that regime. Unfortunately, the West offering no aid to that country is too much for us to ask for. They'll stupidly come running with all manner of aid packages at the snap of a mullah's finger, in the forlorn belief that the regime will miraculously have a change of heart and suddenly start loving us, as the clerics and rent-a-mobs chant "Death to America" and "Death to Israel" as our reward and their show of gratitiude to our benevolence. God, will we ever learn?
Maybe Ahmedinajab is the mahdi!