Big Lebowski style.
Posted on 08/05/2018 6:50:15 PM PDT by BeauBo
The arrests come as Iranians brace for the reimposition of US sanctions on Tuesday, following Washington's withdrawal from a multinational nuclear deal with Iran... On Sunday, (Rouhani's) cabinet announced it was easing foreign exchange rules, undoing a disastrous attempt to fix the value of the rial in April... that saw it lose more than half its value.
(Excerpt) Read more at aljazeera.com ...
The first batch of sanctions actually hit Iran tomorrow night. They have already had growing street demonstrations over the last five nights, and now it looks like the Government is offering up some scapegoats.
Tomorrow's sanctions are crushing, the oil sanctions that hit in three months will probably be fatal to the regime, if they even make it that long.
90-days After US withdrawal from the Iran deal (on 6 Aug), the following sanctions will snap back on Iran, according to the Treasury Department:
- Sanctions on Iran buying or acquiring U.S. dollars
- Sanctions on Iran trading gold and other precious metals
- Sanctions on Iran's sale, supply or trade of metals such as aluminum and steel, as well as graphite, coal and certain software for "integrating industrial processes"
- Sanctions on "significant" sales or purchases of Iranian rials, or the maintenance of significant funds or accounts outside the country using Iranian rials
- Sanctions on issuing Iranian debt
- Iranian auto sanctions
- Halting the importation of Persian carpets and foods (pistachios), and ending some licensing-related transactions.
At the end of the 180-day interval on Nov. 4th:
- Sanctions on Iran's ports, as well as the country's shipping and shipping sectors
- Sanctions on buying petroleum and petrochemical products with a number of Iranian oil companies
- Sanctions on foreign financial institutions transacting with the Central Bank of Iran and other Iranian financial institutions
- Sanctions on the provision of certain financial messaging services to Iran's central bank and other Iranian financial institutions
- Sanctions on the provision of underwriting services, insurance, or reinsurance
- Sanctions on Iran's energy sector
Guess somebody will have to have a liquidation sale.
very useful information
Thanks.
LOL. Persian Carpet Liquidation Sale all sales final!
On Sunday, (Rouhani's) cabinet announced it was easing foreign exchange rules, undoing a disastrous attempt to fix the value of the rial in April... that saw it lose more than half its value.
If the mullahs wanted to fix the problem, there's only one way -- they all need to suicide bomb each other and end the tyranny of the mullahcracy. Thanks BeauBo.
Iran arrests central bank’s top foreign exchange official
...
Look in the dictionary under “scapegoat” and you’ll see his picture.
I bet they wish Hillary was president.
THIS is why the European bankers are crying so much about new sanctions. They are making a TON of money doing deals in Iran, and don’t want the gravy train to end.
Scapegoat. Iran wants to "fix" the value of their currency by manipulating the exchange rate of the rial? That trick never works, just ask Venezuela!
Iran is about to learn a very hard lesson, if the mullah's are capable of learning anything at all.
The poor guy who was arrested. He misunderstood what the lunatic mullahs wanted in a currency/banking policy.
He thought the mullahs had said that they wanted “More Moolah” and tried to manipulate their currency.
Guess he won’t have to worry about inflation where he’s going.
They probably came to the guy two weeks ago and just said he needed to invent a way to manipulate the exchange rate, and he pointed out that this would increase the number of problems. So, now he’s out of the picture.
I think you can start a count-down clock. Figure in about a hundred days after this new exchange method comes out...massive appeal to IMF and Europe for billions. You can figure in 200 days to be at the Venezuelan-level. Most of the business-owners have pulled their cash out of Iran and been preparing for this event....they won’t be hurt by the gimmick.
And this has been known since May https://www.cnbc.com/2018/05/08/here-are-iran-sanctions-returning-after-trump-leaves-nuclear-deal.html
It looks as if they have no ideas, except cosmetics.
Given the fact there's already much civil unrest in Iran that's not being reported here in the US, I'm sitting here wondering how long it's going to take. Your guess is better than mine. Currency manipulation to prop up a failed economic model never works, it's always just a matter of time and I've no way to hazard a guess other than wetting a finger and sticking it in the air....
Big Lebowski style.
“It looks as if they have no ideas, except cosmetics.”
They are facing hard shortages - effectively an embargo.
Iran is extremely dependent on imports of almost everything. When you look at what they do make, that they can sell, the big things are specialty carpets, and pistachios. They are a one crop economy, where they sell oil, to buy what others produce.
The first round of sanctions will drive their costs through the roof, but the second round will cut off their income.
Even if they will pay large premiums to smugglers, the bulk of their imports now come in containers through the port of Bandar Abbas, and the shipping companies are going to stop serving it. It is (in a way) like the Berlin airlift situation.
The only real chance they have is for China to supply them with a mighty convoy of trucks. Two problems with that:
1. President Trump has prepared a credible deterrent with the ZTE case, and by showing that he has the power to implement tariffs on Chinese exports to the US. China could be crushed by penalties if they bust Iran sanctions on a large scale. It would actually be a great excuse for the President to hammer them, harder then he otherwise might he able to get away with. Turkey is in the same boat, on a lesser scale.
2. As they approach the November cutoff for oil sales, they are going to have less, and then no, money to pay for anything. China would happily take title to Iranian oil fields for a few loads of rice, but they will run out of things to sell quickly.
These are hard stops that Iran is facing, and the usual safety nets, like the World Bank, are not there this time. There is no way to manage out of this crisis. Deal with President Trump, or else.
-—Halting the importation of Persian carpets and foods (pistachios)-—
Why would Persia import Persian Carpets?
——If the mullahs wanted to fix the problem-—
They either resign or go to war.
I suspect they will vindicatively go to war
Tel Aviv will be the target
“I think you can start a count-down clock.”
Me too. As crushing as these sanctions are (really much harder than what we have seen in a long time), I think that there will be other hard blows on that regime, like Military pressure throughout the region, Intelligence Services attacking them covertly, and Diplomatic isolation.
One of the things that makes the Iranian situation atypical, is just how isolated the Muallahs are in the world. No other country has a Shi’ite Theocracy. There is nowhere for them to go, unless they each individually have a fortune to escape with. Even then they could be found and sent back for trial. So it may have to come down to a bloody overthrow - if they don’t do what our President tells them.
Persians invented chess - they should be able to look a few moves ahead.
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.