Iranian Economy Doing OK
Press Reports.Over the last couple of decades, america's jewish elite
has succeeded in pressuring a succession of american administrations
into imposing unilateral sanctions against iran. In recent years the
global jewish elite has pressured the united nations' security
council into passing sanctions on iran. However, nobody has carried
out any empirical research into whether these sanctions have been
effective or not. The first assessment into the efficacy of these
likudnik sanctions has just been released by the american
government's accountability office. "A three-year international
effort to pressure Iran is faltering, with a new report to Congress
questioning the impact of 20 years of U.S. economic sanctions on
Tehran and a long-sought U.N. resolution against Iran in trouble. In
a report released yesterday, the investigative arm of Congress
challenged the impact of U.S. sanctions against Iran dating to 1987.
Tehran has circumvented many economic sanctions, it concluded, noting
Iran's ability to negotiate $20 billion in contracts with foreign
firms since 2003 to develop its energy resources. With the country's
oil wealth, Iranian banks also have funded their activities in
currencies other than the dollar. "Iran's global trade ties and
leading role in energy production make it difficult for the United
States to isolate Iran and pressure it to reduce proliferation and
support for terrorism," the Government Accountability Office
said. "Iran's overall trade with the world has grown since the U.S.
imposed sanctions, although this trade has fluctuated."" (Robin
Wright `GAO Report Challenges Effect of Longtime U.S. Sanctions on
dyn/content/article/2008/01/16/AR2008011603711.html January 17,
2008); "A report released Wednesday by the Government Accountability
Office, an independent auditing group that answers to the U.S.
Congress, says, "The overall impact of sanctions, and the extent to
which these sanctions further U.S. objectives, is unclear," and that
foreign firms continue to make deals in Iran's state-controlled
energy sector." (Borzou Daragahi and Ramin Mostaghim `Iran sanctions
ripple past those in power'
January 20, 2008).
The GAO's conclusion "Iran's overall trade with the world has grown
since the U.S. imposed sanctions .." will not make the likudniks
happy. The Factors suggesting Iran's Economy is Expanding not
Contracting under Sanctions.
There is strong circumstantial evidence that, over the last few
years, iran's economy has been expanding despite us/un sanctions,
despite any economic damage caused by these sanctions. Trade.Iran's
Trade with Afghanistan.In the past it was difficult for iran to trade
with afghanistan because the taliban was hostile to iran. However,
after america's invasion overthrew the taliban the country has
acquired a new government which is much more amenable towards iran.
Iran's trade with afghanistan has grown considerably which must have
boosted its economy. Iran's Trade with Armenia.
"The Russian gas export monopoly owns all the gas pipelines in
Armenia, to which Iran has recently completed a new export pipeline.
Gazprom will operate the section of that pipeline in Armenia." (Simon
Webb and Amie Ferris-Rotman `Russian energy ties with Iran send U.S.
a message' http://wiredispatch.com/news/?id=53864
February 21, 2008).
Iran and Azerbaijan.
"Iranian President Mahmoud Ahmadinejad, keen to counter growing US
influence on his doorstep, urged closer ties with neighboring
Azerbaijan during his first official visit here Tuesday.
"We have very good relations on all levels and in all spheres.
However, there is big potential we must use," Ahmadinejad said after
meeting his Azerbaijani counterpart, Ilham Aliyev.
"There should be no obstacles to the development of our relations."
Iran and the US are vying for influence in energy-rich Azerbaijan,
wedged between Iran and Russia on the western shore of the Caspian
The two countries signed five bilateral agreements, including deals
to build a new bridge on their border, establish new customs posts
and set up a direct bus link through Iran connecting the Azerbaijani
exclave Nakhchivan with the rest of the country. The two leaders
added that they would seek to increase cooperation on energy and
power generation. Azerbaijan has close diplomatic and trade relations
with Iran. Both countries are predominantly Shiite Muslim and share
strong cultural ties. Northern Iran is home to between 16 million and
30 million ethnic Azeris, according to varying estimates, easily
outnumbering the 8 million in Azerbaijan itself." (`Tehran seeks
Azerbaijan ties to counter US'
edition_id=10&categ_id=2&article_id=84691 August 22, 2007). Iran and
"Ahmadinejad said after meeting Bahrain's King Hamad bin Isa al-
Khalifa that his trip aimed at expanding "economic and cultural
relations" between the two countries. He signed a memorandum of
understanding to export natural gas to Bahrain. "Iran will provide
one million cubic feet per day of natural gas, and the details are
expected to be finalized within a year before signing a deal on this
strategic project," said Bahrain's foreign minister, Sheik Khalid bin
Ahmed al-Khalifa." (`Iran prez plays down possible US strike'
18, 2007). Iran and China."China, which has enjoyed growing trade
since the early 1990s, ranked third behind the United Arab Emirates
last year, with $4.48bn of exports, up 35.8 per cent on 2005. If the
growth continues this year, as predicted, China will become the
leading supplier." (Najmeh Bozorgmehr `Embargo adds to lure of
eastern promise for Iran' http://www.ft.com/cms/s/0/941a9c00-625b-
11dc-bdf6-0000779fd2ac.html September 14, 2007). Much more
"Beijing doesn't want its economic relationship with Tehran
disrupted. Iran is a major supplier of oil to China. China intends to
boost its bilateral trade with Iran to over US$100 billion annually
in the near future. (There is no reason to doubt China's capacity to
do so.) China supplies weapons and industrial products to Iran and
participates in major projects, such as the Tehran metro." (M K
Bhadrakumar `A new Chinese red line over Iran'
Iran's Trade with Iraq.
In the past it was difficult for iran to trade with iraq because
saddam was so hostile to iran. However, after america overthrew
saddam the new shiite government is much more amenable towards iran.
Iran's trade with iraq has grown considerably. "More than four years
after the U.S.-led invasion toppled Saddam, Iran's influence from
trade links to political sway has never been greater, a fact
bedeviling the United States as President Bush pledges American
troops will remain in Iraq in large numbers. These days, Iran's
influence still is most apparent across Iraq's mostly Shiite south.
But it is also felt in Kurdish northern areas and even in Baghdad,
where many new reconstruction projects, such as improving Iraq's
electricity grid, are financed by Iranian investment.
"Decades of war and U.S. invasion have destroyed almost everything in
Iraq. And Iran is well prepared to make good use of this opportunity
to flood Iraqi markets with goods and services," said Saeed Leilaz,
an economic and political analyst in Iran. The export of goods to
Iraq brings both money and influence, he noted.
"Iranian products are sold everywhere in Iraq. This never happened
before. Iran is playing a clever game," he said. Each month, more
than 40,000 Iranians visit southern Iraq's important Shiite spots
such as the holy cities of Najaf and Karbala, buying religious
souvenirs and pumping money into the economy by staying in hotels.
Iran has said it wants to build an airport in Najaf and promises to
help renovate important shrines. It also has begun work on a railroad
between Iranian port of Khorramshar and Basra, connecting Iran's rail
system to Iraq's. Tehran also has signed a $150 million contract to
build a 300-megawatt power plant in Baghdad. Another project, a 400-
megawatt electricity transmission line from the Iranian frontier city
of Abadan to the Iraqi town of Alharasa is expected to go into
operation in a few months." (Ali Akbar Dareini `Iranian influence
increasing in Iraq'
ce September 14, 2007); "Meanwhile, as Iran competes with the United
States for influence in Iraq, Tehran is hedging its bets beyond ISCI,
building up an impressive portfolio of political, economic, religious
and military holdings in its western neighbor. There is a steadily
increasing trade, including a black market, across the Iran-Iraq
border, and the Iranian government and its state-owned entities have
made significant investments in and loans to Iraqi businesses and the
rebuilding of Shiite holy cities. There are longstanding clerical
ties between Qom, Iran, and Najaf, Iraq, and tens of thousands of
religious pilgrims, no doubt including more than a few Iranian
intelligence officers, cross the border every month. In March Iranian
President Mahmoud Ahmadinejad plans to make the first state visit by
an Iranian leader to Baghdad." (Robert Dreyfuss `Is Iran Winning the
Iraq War?' http://www.uruknet.de/?p=m41362&hd=&size=1&l=e
21, 2008). Iran's Trade with Malaysia."Iran last week signed a six
billion dollar deal with Malaysia to develop two offshore gas fields,
touting the planned investment as the biggest ever in the country."
(Siavosh Ghazi `Iran hit by gas cuts after Turkmenistan halts
ergygas December 31, 2007).
Iran's Trade with Russia.
"Gazprom has been involved in Iran for years and invested about $4
billion in the country between 2000-2007, said Huseynov. It was
involved in an earlier phase of development at South Pars with Total
and Malaysia's Petronas." (Simon Webb and Amie Ferris-Rotman `Russian
energy ties with Iran send U.S. a message'
February 21, 2008); "Iran
holds the world's second-largest proven natural gas reserves, behind
only Russia. Alexei Miller, chief executive of Russia's state-run gas
exporter Gazprom, recently visited Tehran and met with Iran's Oil
Minister Gholam-Hossein Nozari. The result is that Gazprom will
develop "two or three" blocks of the monstrous South Pars gas field
in Iran; and its daughter company, Gazpromneft, will also be part of
a huge oil project in Iran. Gazprom has been in South Pars since
1997, alongside TotalFinaElf of France and Malaysia's Petronas.
Gazprom has already invested at least US$4 billion in Iran since
2000. The Russian company will also help Iran to develop its pipeline
system, which will finally link the north (where Tehran is located)
to the oil and gas fields in the south and southwest. This means Iran
won't need to import gas from unreliable neighbor Turkmenistan, prone
to cut off supplies over endless arguments about unpaid bills. This
means that Iran, already exchanging energy with Azerbaijan, Armenia
and Turkmenistan, will also connect to Russia's national power grid.
Fattah said Iran and Russia would cooperate in the construction of
two power plants in Tajikistan. The results are obvious: the merging
of Russian and Iranian electricity networks will cover virtually all
the demand in Central Asia and the Caucasus. Most of the new
investment will be Russian." (Pepe Escobar `Russia gas pact energizes
27, 2008). Iran's Trade with Syria.
"From car manufacturing plants and a proposed $2bn industrial zone
for Iranian businesses, to plans to overhaul urban transportation
systems, Iranian companies are charging into Syria, looking to cash
in on a recent privatisation push by Damascus. Weighed down by a
behemoth public sector, an influx of nearly two million Iraqi
refugees and falling oil production, Syria's leaders are trying to
liberalise their economy in hopes of avoiding a financial meltdown.
In another time, the privatisation effort might have presented an
opportunity for the US and Europe to use their enormous commercial
muscle to drive a wedge between Syria and Iran, Washington's foremost
antagonists in the region. But the US imposed sanctions in 2004 as
punishment for Syrian support of militant Palestinian and Lebanese
organisations. These banned American exports to Syria and gave
President George Bush the added option of outlawing American
investment in the country, effectively scaring off American and other
Western companies. The Syrian government estimates that Iranian
investment in 2006 alone surged to more than $400m, making Tehran the
third-largest foreign investor here, behind Saudi Arabia and Turkey.
Though exact figures are unavailable, by some estimates Iran has
invested a total of $3bn in Syria, most of that in the past few
years." (Hugh Naylor `Sanctions put Iranians on the road to Damascus'
October 07, 2007).
Iran's Trade with Turkey.
Despite the Bush regime's efforts to impose unilateral, global
sanctions on iran, turkey has continued to make huge investments in
iran. "Turkey, Iran and Turkmenistan will set up a company to build a
natural gas-fired power plant in Turkmenistan, a senior Turkish
energy ministry official said on Tuesday. Turkey has rapidly expanded
its cooperation on energy projects with Iran in recent months. This
includes Turkish plans to invest $3.5 billion in the Islamic
Republic's South Pars gas fields and to use Iran as a transit country
for Turkmen natural gas. The US has said it opposes the plan and does
not support any investment in Iran." (`Turkey, Iran to build power
plant in Turkmenistan' http://www.arabianbusiness.com/498109-turkey-
iran-to-built-power-plant-in-turkmenistan August 21,
2007); "Furthermore, Burns pointed out that an energy deal signed
between Iran and Turkey in July was not helpful. The preliminary deal
foresees the construction of two separate pipelines to ship natural
gas from the fields in Iran and neighboring Turkmenistan via Turkish
territory. Turkey plans to invest 3.5 billion dollars in Iran for gas
production. The first pipeline would originate from Iran's South Pars
gas field and second from Turkmenistan, Iran's Central Asian
neighbor. Analysts say Turkey can use part of this gas for its own
consumption. The rest can be transferred further into Europe along
the upcoming Nabucco pipeline." (`Turkey defends energy ties with
Iran despite U.S. opposition'
Trade between the two countries is booming. "The AKP government's
leanings toward the Islamic world include Iran and a robust effort is
on to build bilateral cooperation. Trade touching an all-time high
level of US$7 billion may soon reach double digits. Ankara envisages
a big role for Iran in its ambition to become the region's "energy
hub". Disregarding US pressure, Ankara has pressed ahead with an
agreement for the transit of Iranian gas to Europe." (M K Bhadrakumar
`Saudi monarch woos Turkey's Islamists'
2007); "Similarly, Turkey plans to expand trade with Iran,
notwithstanding U.S. disapproval. According to the Turkish press,
trade has grown from $2.3 billion to $6.7 billion between 2003 and
2006, and the two countries have signed a preferential trade pact on
a series of goods. Iran (along with Russia) supplies Turkey its gas
needs, which have been growing in pace with the economy." (Ann Berg
`Turkey: From Bloody Birth to Power Broker'
2007). Turkey has agreed to allow iranian gas to be exported to syria
through its territory. Exports will begin once the arab gas pipeline
between syria and turkey has been constructed. "The Syrian Gas Co.
(SGC) and the Iranian National Company for Gas Export (INCGE) on
Tuesday signed an initial principles agreement to purchase Iranian
gas. The agreement included the basic principles for preparing a deal
on natural gas purchase from Iran. It will come into effect by the
end of 2009 when Aleppo-Kiles pipeline is completed and connected
with the Turkish gas network. Shirazi (Hosein Noqrehkar-Shirazi,
deputy Iranian Minister of Oil) referred to the depth of Syrian-
Iranian cooperation relations, expressing his country's readiness to
further develop and boost this cooperation." (`Syria to Buy Iranian
Gas Via Turkey' http://www.downstreamtoday.com/(
Gas_Via_Turkey_8021.aspx?AspxAutoDetectCookieSupport=1 January 09,
2008). Syria will this be getting gas from egypt and iran.
The Bush regime has recently increased its pressure on turkey to
limit its trade with, and investments in, iran. "First, Washington
will expect that Turkey go slowly on expanding and deepening its
cooperative ties with Iran, a trend that the Bush administration had
been viewing with disquiet in the recent past. Turkey can be expected
to respond with pragmatism and calibrate its ties with Iran in
accordance with the US sensitivity." (M K Bhadrakumar `The door to
Iraq's oil opens'
Iran's Trade with the UAE.
"UAE-Iran trade rose to $12bn (8.1bn, £5.8bn) last year, with
Dubai's re-export hub the single most important entry point for goods
coming into Iran." (Najmeh Bozorgmehr and Simeon Kerr `UAE detains
ship as grip on Iran tightens' http://www.ft.com/cms/s/0/f1b6eb8a-
9ee6-11dc-b4e4-0000779fd2ac.html November 30 2007); "Iran and the
United Arab Emirates (UAE) have begun top-level talks to boost
economic relations, despite efforts by the United States to disrupt
trade ties and an unresolved territorial dispute over the three
strategic islands of Abu Mousa, the Lesser and the Greater Tunb in
the Strait of Hormuz. The UAE is already Iran's top trade partner
with bilateral trade reaching US$14 billion, according to official
sources." (Kimia Sanati `US efforts to scuttle Iran-UAE ties fail'
2008). Iran's Trade with Venezuela.
"The presidents of Venezuela and Iran boasted Monday that they will
defeat U.S. imperialism together, saying the fall of the dollar is a
prelude to the end of Washington's global dominance. In Tehran, the
two presidents signed four memorandums of understanding Monday to
create a joint bank, a fund, an oil industry technical training
program and an industrial agreement, Iranian state television said.
It said Chavez then left after an official farewell ceremony. On
Chavez's previous visit in July, the two leaders broke ground for
construction of a jointly owned petrochemical complex in Iran, with
51 percent of it in Iranian ownership and 49 percent to be owned by
Venezuela. The two nations also began construction of a second
petrochemical complex in Venezuela, at a total combined cost of $1.4
billion. Since 2001, the two countries have signed more than 180
trade agreements, worth more than $20 billion in potential
investment, according to official reports." (Nasser Karimi `Chavez,
Ahmadinejad to work against US'
Iran Switches away from the Dollar.
After bush's `axis of evil' speech in 2003, the bush regime started
imposing unilateral sanctions on iran. It must have been obvious to
iran that bush would eventually ban the country from using the
dollar. This acted as a spur for iran to start using alternative
currencies. The bush mafia may have believed that stopping iran from
using the dollar would be a financial punishment but, paradoxically,
it has been financially beneficially to iran because of the fall in
the value of the dollar.
If iran had continued using the dollar it would have suffered
considerable financial losses from the devaluation of the dollar,
like those oil producing countries which hold onto the dollar,
whereas by using alternative currencies it has protected the value of
its oil revenues. "Iranian President Mahmoud Ahmadinejad has
suggested an end to the trading of oil in US dollars, calling the
currency "a worthless piece of paper". The call came at the end of a
rare Opec summit, and was opposed by US ally Saudi Arabia. Speaking
after the end of the summit, Mr Ahmadinejad said all leaders at the
meeting were unhappy with recent falls in the value of the dollar.
The dollar has weakened considerably against the euro and other
currencies in the past 12 months. Its decline has affected the
revenues of Opec members because most of them price and sell their
oil exports in the US currency. Mr Ahmadinejad said that all Opec
countries had showed interest in converting their cash reserves into
other currencies. "They [the US] get our oil and give us a worthless
piece of paper," he told reporters." (`Iran leader dismisses US
18, 2007). Iran stopped using the dollar altogether in december 2007.
"On December 8, Chinese and French news services reported that Iran
had stopped billing its oil exports in dollars. Iran's oil minister,
Gholam Hossein Nozari, declared: "The dollar is an unreliable
currency in regards to its devaluation and the loss oil exporters
have endured from this trend."" (Paul Craig Roberts `Shrinking the US
Dollar from the Inside-Out'
2007); "But as for Iran, OPEC's second-largest exporter, it no longer
trades a single barrel of oil in dollars. That is no small amount of
non-dollars. The country's oil revenue will reach US$63 billion by
the end of the current Iranian year on March 20, according to Nozari.
Iran converted all its oil export payments to other currencies in
December 2007. It now sells oil to Japan in yen, the Far East
country, the world's second biggest economy, is the top importer of
Iranian oil and Iran is Japan's third-largest supplier." (Pepe
Escobar `Slouching towards Petroeurostan'
It has also been suggested that ahmadinejad's efforts to persuade
other opec states to give up the dollar seems to be bearing
fruit. "Iran has proposed to OPEC that the US dollar no longer be
used by any oil exporting countries. As the oil emirates and the
Saudis have already decided to reduce their holdings of US dollars,
the US might actually find itself having to pay for its energy
imports in euros or yen." (Paul Craig Roberts `Shrinking the US
Dollar from the Inside-Out'
2007); "Worryingly for the dollar, other oil producers are preparing
to follow Iran's lead. Qatari Prime Minister Sheikh Hamad bin Jassim
al-Thani has already announced that the tiny oil-rich emirate would
abandon the dollar for the Qatari riyal before summer. There's a
strong possibility the United Arab Emirates may also switch to its
own currency." (Pepe Escobar `Slouching towards Petroeurostan'
The bush mafia's efforts to stop iran from using the dollar is
turning out to be a blessing in disguise for iran because of the
constantly depreciating dollar. Iran is having to rely upon other
more solid currencies rather than the dollar and is thus not losing
out so much as it would have been. Domestic Policies.Iran to start
selling off its Industries.Iran is in the process of privatizing some
of its big nationally owned industries and the government stands to
make almost as much money as the thatcher government did during the
1980s. "In the short term, Iran will sell a quarter of the National
Copper Industry Company, one of the largest Iranian businesses,
through the Malaysian stock exchange within the next two months, a
stake that Mr Kord Zangeneh said would raise much more than its
current $1.5bn (1bn, £770m) book value." (Anna Fifield `Iran banks
seek to sidestep US curbs'
Iran switches from trade with America and Europe to trade with China
and Russia.America's unilateral sanctions on iran, and the west's
support for these sanctions, is not causing a reduction in iran's
overall trade with the world because it is simply increasing its
trade with other countries especially russia and china. Although
sanctions might have a temporary disruptive effect on iranian
businesses when they switch from trading with american/western
companies to trading with chinese/russian companies, there doesn't
seem to be any permanent reduction in trade, and thus no long term
damage, to the iranian economy.
"Iran has steadily shifted its trade from West to East and, with the
benefit of record high oil prices, was likely to withstand new US
sanctions imposed last week, reports said yesterday. Analysts told
The Washington Post that China was expected to overtake Germany as
Iran's biggest trading partner this year." (`Iran shielded from
2703,00.html October 30, 2007). Just how much trouble can Iran's
Economy be in when it is flush with Oil Money?Given the huge rise in
the global price of oil over the last six years, it has to be asked
just how bad a state can iran's economy be in when the government is
flush with oil revenue? "The Iranian Oil Minister says the country's
oil revenues will reach $63 billion by the end of the Iranian year
which ends March 20. Gholam-Hossein Nozari said Iran's oil sales have
reached $55 billion in the first 11 months of the year ... Nozari
announced last week that Iran's crude oil production had reached
4.184 million barrels per day, the highest level since the Islamic
Revolution." (`Iran oil revenues to reach $63B'
Every time bush denounces iran, the price of oil goes up, and iran
earns even greater profits from its fossil fuels. Bush finds himself
in the difficult position of having to whip up global support for
continually widening sanctions against iran but, the more he does
this, the more jittery the oil markets become, the higher the price
of fossil fuels, the greater iran's oil revenues, and the less
effective sanctions become. Sanctions policy won't be effective
because of Iran's Good Neighbours.Iran's trade with its neighbours
iraq, afghanistan, syria, and turkey, is booming. "The need to keep
tightening the sanctions noose arises from the ineffective nature of
the sanctions regime.
To counter the stated U.S. attempt to isolate it, but more
importantly to assure its own security, Iran has pursued a very
active strategy vis-à-vis its neighbors, with many which it has long
and porous borders. The northern border in particular, shared with
former Soviet states of Armenia, Azerbaijan and Turkmenistan, not to
mention the vast Caspian Sea, is particularly open. Pakistan and
Afghanistan borders to the west, both with new land routes into
Central Asia and China, are also uncontrolled by the West. Dubai and
other Persian Gulf free ports, as well as newly developed facilities
on the Sea of Oman guarantee that needed goods will flow into the
country if severe trade sanctions are enacted. Dubai is also the
place to get around the financial restrictions imposed on Iran. Even
the present chaos in Iraq guarantees free flow of goods across Iran's
border (Iraq is reportedly now the second destination for Iran's non-
Those who are pushing for more sanctions know this. They know that so
long as neighbors such as the UAE and Turkey are unwilling to give up
their lucrative business with Iran, the sanctions regime will not
harm Iran enough to abandon its stance. They also know that given
Iran's long borders, the sanctions in place will be adjusted to in a
short period of time. So for Iran to feel any kind of political heat
the sanctions noose has to be tightened periodically." (Farideh Farhi
`New Unilateral Sanctions against Iran: What Do They Mean?'
iran.html October 26, 2007).
Western Propaganda about the state of Iran's Economy.
Zionist occupied governments in the west and the zionist dominated
western media continually try to prop up the efficacy of american/un
sanctions against iran by suggesting that sanctions are causing
considerable damage to iran's economy. "Ordinary Iranians are less
worried with conforming to Islamic norms and more concerned about the
parlous state of the economy. At a time of economic crisis and a
tightening international embargo against Iran, the Islamic Republic
may have to dispense with marshaling young people toward an Islamic
ideal if it is to survive." (Iason Athanasiadis `Iran's winds of
/02/14/irans_winds_of_change/ February 14, 2008); "The decision by
the Guardian Council was the second major rebuke in less than a month
for the hardline president, whose popularity has plummeted recently
in the face of Iran's ailing economy. Ahmadinejad was elected in 2005
on a populist agenda promising to bring oil revenues to every family,
eradicate poverty and tackle unemployment. Now he is facing
increasingly fierce criticism for his failure to meet those
promises." (Ali Akbar Dareini `Powerful council opposes Iran
February 16, 2008).
But commentators find themselves in a quandary. On the one hand, in
order to be politically kosher for the zionist dominated western
media, they have to talk about the dire state of the iranian economy.
On the other hand, they have to acknowledge the country's soaring oil
revenues without seeming to contradict their description of the dire
state of the iranian economy. Even jim lobe seems to have drowned in
this particular quandary. "The Director of National Intelligence,
retired Admiral J Michael McConnell .. presented the intelligence
community's "annual threat assessment" before the Senate Intelligence
Committee in Washington on Tuesday. He believed "Supreme Leader Ali
Khamenei and Iran's various conservative factions, despite growing
infighting in the run-up to this year's parliamentary elections, "are
expected to maintain control over a politically stable, if
economically troubled Iranian state".
Record high oil export earnings have placed Iran "on its soundest
financial footing since the revolution"." (Jim Lobe `Pakistan taken
to task over al-Qaeda'
2008). If iran has been enjoying "Record high oil export earnings"
then surely it can't be that much of an "economically troubled
Britain's ambassador to the un tried to pretend that sanctions are
hurting iran but provided no evidence to back up his allegation. "Two
rounds of U.N. sanctions against Iran for refusing to halt sensitive
nuclear activities have had an economic and political impact on the
Islamic Republic, Britain's U.N. ambassador said Wednesday.
"The economic effect has been to contribute to a further downturn in
Iran's trade, particularly with Europe, and the readiness of
international companies to invest," British ambassador to the United
Nations, John Sawers, told reporters.
While there are no figures for the precise impact of the sanctions,
Iranian unemployment is high at around 10 percent and inflation has
hit 19 percent, hurting mostly the poor voters Ahmadinejad courted in
the 2005 presidential race." (Louis Charbonneau `UN sanctions have
hit Iran's economy, Britain' http://wiredispatch.com/news/?id=25883
January 30, 2008).
A couple of journalists have tried highlight the terrible stress
ordinary iranians must be under because of the rapidly rising price
of imported french perfumes. "But on the streets and in the shops of
Tehran, the capital, sanctions have had a visible effect, diminishing
the ability of merchants and consumers to buy goods from Europe,
forcing them to opt for cheaper Asian imports. (sic, what a terrible
price the iranians are being forced to pay! Especially when western
consumers seem to be doing the same!).
Prices of most goods, including French perfumes and German printing
plates, have increased 50% in the last four months, merchants say, a
result of the extra cost of doing business through Dubai, in the
United Arab Emirates, instead of directly with foreign manufacturers
and distributors. Many of those firms are wary of doing business with
Iran lest they come under the scrutiny of the U.S. Treasury
Department, which has begun aggressively targeting companies with
ties to both the United States and Iran.
"Now, doing business with anywhere other than China or Russia is too
much of a pain," said Ali-Reza Morshed Razam, owner of an eyeglasses
shop on Palestine Street, in downtown Tehran." (Borzou Daragahi and
Ramin Mostaghim `Iran sanctions ripple past those in power'
January 20, 2008).
Isn't it possible iranian merchants are making a bomb selling freedom
perfumes? Does iran's expansion of trade suggest its economy is
reeling in the same way the american economy is reeling? The Factors
suggesting it is America and the West which is suffering from the
imposition of Sanctions on Iran.
It is possible that american/un sanctions against iran are hurting
the west more than they are hurting iran. Iran no longer propping up
the value of the Dollar.
The bush mafia believed that banning iran from using the dollar would
hurt iran whereas, as has been noted above, it has been financially
beneficial to iran. However, it has been financially detrimental to
america since iran is no longer helping to prop up the value of the
dollar. The economic benefits that once accrued to america through
iran's use of the dollar are now going to other countries when iran
uses their currencies.
America and Europe losing out on Trade with Iran.
American and western european companies are cutting back on their
trade with iran and losing out on hundreds of billions of dollars'
worth of business. The germans have sacrificed a substantial amount
of their trade with iran. "The adoption of tougher sanctions against
Iran over its nuclear program could cost the German budget 2 billion
euros, according to Finance Ministry estimates cited in Der Spiegel
magazine on Saturday." (Noah Barkin `Tough Iran sanctions to hit
Germany hard: report'
November 24, 2007); "The German government halved the volume of new
export credit guarantees for trade with Iran last year, the Economy
Ministry said on Monday, in a sign Berlin is increasing pressure on
Tehran over its nuclear programme. The value of new export guarantees
approved by the government in 2007 fell to 503.4 million euros
($732.7 million), from 1.16 billion in 2006, a ministry official
said." (Germany slashes credit guarantees for Iran exports'
February 11, 2008).
American and European Companies being replaced by Russian and Chinese
Companies in Iran.
As western countries reduce their trade with iran, eastern countries
take their place. By the time the west is forced to abandon its
sanctions on iran, the iranian economy will be so well integrated
with the russian and chinese economies it would take a huge wrench
for it to revert back to trading with the west. "Sinopec, China's
largest oil refiner, has just finalized a multi-billion dollar deal
to develop the giant Yadavaran oil field, and this is in addition to
the "deal of the century" contract for natural gas from Iran's
immense North Pars field. Chinese contractors are also busy
constructing oil terminals for Iran in the Caspian Sea, extending the
Tehran metro, building airports, among other projects. And this while
China arms sales to Iran have included such hot items as ballistic-
missile technology and air-defense radars." (Kaveh L Afrasiabi `A
China base in Iran?'
2008); "Trade with Italy has fallen 20 per cent in six months.
In 2006, Germany's exports to Iran dropped 7 per cent and Japan's
fell 13 per cent. But business with China is booming. Last year
Beijing signed a $100bn deal to import Iranian natural gas and
Chinese companies will be 50 per cent stakeholders in the Yadavaran
oil field. China has also become the second biggest market for Iran's
non-oil exports, taking $1.72bn in 2006-7, after the UAE with $2.5bn.
Iran's overall non-oil exports rose 47.2 percent to $16.3bn.
"The situation over sanctions is a huge opportunity for China, former
Soviet republics and regional countries," says one Asian diplomat in
Tehran." (Gareth Smyth `Sanctions fail to fuel dissent on Iran's
0000779fd2ac.html July 24, 2007). The consequence is that, "Regarding
the latter, China has already surpassed Germany as Iran's number one
trade partner." (Kaveh L Afrasiabi `A China base in Iran?'
2008). The Jews-only state's efforts to sanction Iran have ended up
sacrificing American/Western economies whilst providing an economic
and political Bonanza for Russia and China.
The jews-only state in palestine and its allies around the world who
have pressured american/european/un sanctions are in effect
sacrificing western economies for the sake of promoting jewish
supremacism in the middle east. Zionist inspired us/un sanctions are
forcing the re-orientation of the iranian economy from the west to
the east, from its preferred trade with europe and america to trade
with russia and china. The reorientation of iran's economy is going
to boost the economic power of china and russia in comparison to the
economic power of the west. It will allow china and russia to
establish a critical geopolitical role in iran.
Without the likudniks stirring up hatred between america and iran
they could have developed highly profitable economic links which
could have led to a vital strategic alliance. But this is exactly
what the jews-only state does not want. The jews do not want iranians
to get nuclear weapons but they are even more sacred of america
developing a strategic alliance with iran such as the one it had
under the shah. The likudniks warmongering over iran's non-existent
development of nuclear weapons is simply a political device to stir
up hatred between america and iran.
The jews are sacrificing their allies, america and the rest of the
western world, to the considerable benefit of russia and china. It
must be humiliating for america and europe to accidentally shoot
themselves in the foot by promoting sanctions against iran. But for
them to deliberately shoot themselves in the foot because
warmongering, paranoid, likudnik extremists have told them this would
be good for their health, is a far greater humiliation. They really
need to seek ahmadinejad's advice on establishing independence from
the jews-only state.
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