What would happen to Iran & Venezeula with $50 oil? - PeachParts Mercedes-Benz Forum

Botnst · #1 06-18-2006, 07:56 PM

Iranian economists lash out at Ahmadinejad's policies

By Agence France Presse (AFP)

Friday, June 16, 2006

TEHRAN: A group of 50 prominent Iranian economists wrote an open letter to President Mahmoud Ahmadinejad Thursday, criticizing his government policies for promoting skyrocketing inflation. Iran's Central Bank has put the inflation rate of last Iranian fiscal year (ended March 20) at 12.1 percent, while the unofficial sources estimate that the figure is close to double that rate.

Ahmadinejad's policies are "lacking scientific and expertise basis, with such haste as to cause persistent inflation," leading university academics wrote in a letter printed in Iranian press.

The experts also criticized a governmental order to cut bank interest rates regardless of its consequences.

Ahmadinejad's government "has been adopting an expansive monetary policy against the state macro policies ... This, combined with political instability, international threats, and decreasing interest rates can wake up the sleeping inflation beast."

The letter described the effects as being evident in "deteriorating foreign and domestic investment ... escape of human and financial sources from the country and the consequent falling rate of economic growth."

Iran refuses to give up uranium enrichment, which many fear is a guise for building a nuclear weapon.
http://www.dailystar.com.lb

During his electoral campaign in June, Ahmadinejad vowed to reduce poverty, stop corruption and share oil wealth more fairly, bringing "oil money to [Iranian] tables," a promise he less than one year later denied having made.

Instead, Ahmadinejad's first annual budget sought more control over the spending of oil revenues that are supposed to be saved in the country's Oil Stabilization Fund for rainy days and to support private sector.

The letter said such "expansive policies" led to greater inefficiency for state companies and banks. It also referred to rising oil prices which have brought more oil income, warning that the 34 percent rise in liquidity could lead to higher imports and spell trouble for production.

The experts said government authority in the economy should be downsized in favor of greater investment in production projects and to help private businesses.

"Bottom line, we understand that the economic problems have not been caused overnight, but it should be said that if your government's policies continue, they can only worsen the situation and lessen people's trust in the government after all those promises to improve the people's welfare." - AFP

mikemover · #2 06-19-2006, 07:02 AM

Quote:

Originally Posted by Botnst

Iranian economists lash out at Ahmadinejad's policies

By Agence France Presse (AFP)

Friday, June 16, 2006

TEHRAN: A group of 50 prominent Iranian economists wrote an open letter to President Mahmoud Ahmadinejad Thursday, criticizing his government policies for promoting skyrocketing inflation. Iran's Central Bank has put the inflation rate of last Iranian fiscal year (ended March 20) at 12.1 percent, while the unofficial sources estimate that the figure is close to double that rate.

Ahmadinejad's policies are "lacking scientific and expertise basis, with such haste as to cause persistent inflation," leading university academics wrote in a letter printed in Iranian press.

The experts also criticized a governmental order to cut bank interest rates regardless of its consequences.

Ahmadinejad's government "has been adopting an expansive monetary policy against the state macro policies ... This, combined with political instability, international threats, and decreasing interest rates can wake up the sleeping inflation beast."

The letter described the effects as being evident in "deteriorating foreign and domestic investment ... escape of human and financial sources from the country and the consequent falling rate of economic growth."

Iran refuses to give up uranium enrichment, which many fear is a guise for building a nuclear weapon.
http://www.dailystar.com.lb

During his electoral campaign in June, Ahmadinejad vowed to reduce poverty, stop corruption and share oil wealth more fairly, bringing "oil money to [Iranian] tables," a promise he less than one year later denied having made.

Instead, Ahmadinejad's first annual budget sought more control over the spending of oil revenues that are supposed to be saved in the country's Oil Stabilization Fund for rainy days and to support private sector.

The letter said such "expansive policies" led to greater inefficiency for state companies and banks. It also referred to rising oil prices which have brought more oil income, warning that the 34 percent rise in liquidity could lead to higher imports and spell trouble for production.

The experts said government authority in the economy should be downsized in favor of greater investment in production projects and to help private businesses.

"Bottom line, we understand that the economic problems have not been caused overnight, but it should be said that if your government's policies continue, they can only worsen the situation and lessen people's trust in the government after all those promises to improve the people's welfare." - AFP

Forgive me for not having much sympathy for what happens to the Iranian economy.

They are allowing their radical government to make this bed for them, and now they will lie in it. Perhaps they'll learn a lesson. But I doubt it.

Mike

Jim B. · #3 06-19-2006, 02:12 PM

Imagine, the President DENYING having made the campaign promises that brought him into office!!

He is really nothing more than the puppet/mouthpiece of the radical/religious zealots who are REALLY in charge there. It is really a religious theocracy, ever since 1979.

There is a new generation of young Iranians who have known little other than this way of government. I hope they can change it peacefully.

The efforts to prevent them from getting their finger on the nuclear trigger, I support. I hope push doesn't come to shove in that regard.

aklim · #4 06-19-2006, 02:29 PM

Quote:

Originally Posted by Jim B.

Imagine, the President DENYING having made the campaign promises that brought him into office!!

He is really nothing more than the puppet/mouthpiece of the radical/religious zealots who are REALLY in charge there. It is really a religious theocracy, ever since 1979.

There is a new generation of young Iranians who have known little other than this way of government. I hope they can change it peacefully.

The efforts to prevent them from getting their finger on the nuclear trigger, I support. I hope push doesn't come to shove in that regard.

Well, promises like bread are made to be broken. The only difference between their politicians and ours is that ours are kept in check because we can bring witnesses to say that they heard them say this, that or the other. Whereas over there, well, bring them along and they will be shown the way to the gallows or worse.

True. A good example of why religion should be kept seperate from governmental policies. Any religion.

Why would the religious nuts want to give up a good thing. Would you? So what if they kill each other? Less of them can't be a bad thing.

It might. However a lot of people here would not support it once push came to shove. The usual arguement would be that it is over there and hasn't dropped on their heads yet.

Botnst · #5 10-09-2006, 08:56 AM

I started this thread some time ago and lo, it has come to pass. I haven't heard about any adverse affects on the Iranian nor Venezuelan economies, yet.

B

peragro · #6 10-09-2006, 01:32 PM

Havn't had low oil prices since you started this thread...

I've read that $50/barrel would make life difficult for Chavez.

We're at ~$60 or so now and there's this:

Mass Venezuela opposition rally
By Greg Morsbach
BBC News, Caracas

Tens of thousands of people have marched through the Venezuelan capital, Caracas, in support of the main opposition candidate, Manuel Rosales.

Mr Rosales will face President Hugo Chavez in December's presidential poll.

The march, which filled the main avenues of the city centre, was the biggest opposition rally Venezuela has seen since early 2004.

Then, protesters made an unsuccessful bid to oust Mr Chavez from power in a recall referendum.

Chance to unite

Young and old took to the streets to throw their weight behind the campaign of Mr Rosales, a middle-class Social Democrat who governs the state of Zulia, on the Colombian border.

Many claimed that they were seeking liberty and democracy and that made Mr Rosales their only option:

"The problem of the opposition is that before we had a lot of candidates and people couldn't make up their minds whom to support," one woman said.

"Right now we have just one candidate and I believe that we have a better shot if we have just one candidate against Chavez."

For some it was simply a day out to enjoy the sunshine, but for most it was a chance to listen to a speech by Mr Rosales, who declared that Venezuela was "at a crossroads".

Mr Rosales condemned what he called the cheque book diplomacy of Mr Chavez, accusing him of giving away Venezuela's oil wealth to foreign powers.

If Mr Rosales can keep up this kind of pressure against his rival, the election results may not necessarily be a foregone conclusion.

But for now, Mr Chavez still enjoys a clear lead in opinion polls because of a sense of loyalty that poor and working-class voters feel towards him.

****