خاكِ پدران است كه دستِ دگران است

Inflation is a number

For now we are not fully connected to the world so inflation is not as important as it would be if we were. For now we should focus on the rail project to connect Sistan va Baluchestan to Khorasan, create factories and build Kordestan. Hopefully with the mercy of the lord the inflation will vanish also. Khodaro che didid. Everything will be fine. Thankfully we have the Islamic Republic that you can trust will do the right thing and take care of the country as it has for the past thirty some years.

VPK jan,

Let's agree on regulations but the real question is how much? Because if you give enough lead to the government then it become so powerful that want to regulate everything! ;O) Don't we know that already?

The wall street has become

The wall street has become  a ponzy scheme. Why resort to speculating on real state and food? Because there is nothing of value being made in the post industrial era. We need new innovations if we are to keep the free market system alive. Unhinged Capitalism  has brought us to this point. Unregulated capitalism is simply not sustainable for long.

//www.dailykos.com/story/2010/5/8/864722/-Speculators-Behind-Incoming-Global-Surge-in-Food-Prices

Midwesty Jan

the problem is that the lack of regulation amplifies the ups and downs. It is sort of like a bipolar person. The ups are really up as are the downs.

Say I need to buy a house and it happens at thewrong time. The speculators drives the prices way up.  Then I buy and end up paying twice what I would have three years earlier for no good reason. Then it crashes and I lose my job again for no good reason. A regulated and taxed market will prevent this. Houses are for living not for someone making a quick buck. Same goes for everything else. In the US all things have go out of peoportion and gone nuts. The whole system runs on short term profits.

VPK jan I agree...

but the USofA is a republic before anything else. It is more of free market than socialism. Its economy goes up and down but it is more up than being down.

Oktaby jan,

You are correct! My apologies. However:

Have you noticed, we are all over the place. Do you agree that printing money in long run without adding to the size of the economy will cause inflation?

deleted

Why do I keep repeating myself? 

NP

I don't have a problem with their ideas it is the Marxists that I have a problem with. See Stalin or the little man Rajavi. What kind of people are these? Murdering their own people and taking arms against their own nation. The MKO murdering Iranian soldiers in the war and siding with Saddam. What kind of person would do that?

While Iranian kids were going to the front defending our nation. These jerks were killing them! Khodsoozi: another one of their idea.

Here is my Marx and mu Lennon heh heh :-

//upload.wikimedia.org/wikipedia/en/b/ba/Hcyb...

Midwesty, you are echoing what I said in my reference

in passing and as a philosophical point of consideration. Not sure if it needed reiteration.

However, it is not as democrat vs. republican. but Keynesian vs. Hayek in the free market post industrial context, and even broader, it is the argument of values driving economics Vs. economics driving values.

Within the subject of this blog, IRR leverages its "religious values" to drive the economy according to some pie in the sky 'gavshotorpalang' version. And leverages its economic control to ensure the 'religious values' are as they say and remain strong. That was what I meant by the 3rd way in comment to Ari. It is a vicious cycle that has no basis in either human psychology, or economics or any known version or foundation. Now IRR agents will be calling that an innovation.

OKtaby

The Western masters that

The Western masters that unleashed this beast on Iran, have decided the expiration time has come but are too thinly spread to engage another war.

I'm not sure if the Western masters have concluded that the IRI expiration date has arrived yet. What better ally than the IRI in the region to keep the entire region unstable to sell those arms to Arab and gulf states including Israel?

Iran's economic trobule

Iran's economic trobule mounts As sanctions looms:

//www.npr.org/templates/story/story.php?storyId=125585376

"Iran has realized that subsidies are very costly, not the way to develop an economy; but they have, I think, used subsidies because they have seen this as the best mechanism, depending on who is in power, in order to get political support," he says.

"Without giving money to the poorer people, it would be impossible to implement the price increase and have peace in large cities," Salehi-Isfahani says.

Sounds like we have more in common with Iran than you might have guessed.

Midwesty

Midwesty

Oktaby jan,

We can go on this discussion forever don't you agree? This is what Republicans and Democrats are for. I know there is no perfect solution. That's the nature of social sciences (?) Only way is open discussions and interactions.

NP jan

I meant from the trade point of view we are greedy if we are social is by one part that we seek security however, I know what you want to say about the natural feelings of taking care of others but when it comes to business especially at the macro level that deminishes quickly. Remember the nice businessmen are rare because they don't normally survive the competition. But since "bad" ones are also human they respond to philantropy well.

Midwesty, my point was at practical level first

The philosophical one will take too long. The global markets, starting with Friedman and Reagonomics (the same forces that brought about IRR along with Thatcher & co- let alone IMF's Argentine fiasco and the like) that essentially operated on that basis, culminating in meltdown we have been experiencing have had one major logic and driver behind them and that has been 'the markets will regulate themselves'. No they won't. they never have and they never will.

Ari,

You likely realize it, but I should have pointed out that controlling currency can be an offensive or defensive. Offensive, in case of China to protect its export levels. Defensive in malaysian example to prevent manipulation by foreign (or even domestic) speculators. IRR has invented a 3rd that does not correlate to either, only its own centralizing and militarizing agenda.

Separately, while IRR has been threatening to Peg Oil against Euro (saddam tried it too), it never has because rial can be made look better against a declining currency like dollar. That it is one of very few currencies to decline against dollar or remain constant against a declining peg finds its counterpart in lesser African economies.

VPK, your point regarding basic needs is valid but that is not necessarily a left vs. right discussion in the IRR economic context. Even regulations, good or bad, follow a process and sequence. In IRR the ultimate regulation is a fatwa.

OKtaby

midwesty

no it isn't! :)

human psyche is essentially social not individual. the 'law' you refer to is unnatural.

Oktaby

Adam Smith's law is an indication of human psyche and how we have been conducting trades. Can we deny gravity and blame Newton for it?

vpk

you can't really hate all marxists because you sound a bit like them. totally agree with you. those ideas are close to the basic foundations of socialism. marxism is only one brand with many sub-groups.

those essential regulations grow in time. they have to because big money
will find new ways to bypass new regulations. big money needs taming.
the regulations grow organically, and reflect our basic values related
to community, sympathy, life, and loyalty. 

بنی آدم اعضای یکدیگرند

که در آفرینش ز یک گوهرند 

فکر میکنید که شاید

سعدی هم یک 'شبه

-مارکسیست' بود؟

VPK jan,

In the free market you can make money and contribute with your charitable donation. In contrary as a result of corruption in the closed market the majority will suffer.

Midwesty, the references you make

are free market based and logical (and there are pro and cons there as well as we have seen with financial crisis). Adam Smith 'invisible hand' is utter nonsense in my opinion but that is a different discussion.

The point is operation of IRR never has and never will have anything to do with logic and reason except self serving survival. That is why 'revolution' is the never ending excuse. Always followed by 'holy war', the world is against us, and last mahdi is coming to fix it all. The removing of subsidies I refered to has already started and you pointed out handing cash as well.

OKtaby

Ari, the short answer is yes. I will compile references

and post separately.

Keeping a given country's currency fixed is not that difficult. During the Asian Flu, countries like Malaysia fixed their rates against other currencies. I recall dollar was fixed at 3.8 per Ringit for several years under mahatir Mohammad. China's Yuan (renmibi) and several others are in the same boat. By doing so one keeps the price of good artificially high or low depending on the productivity and status of an economy. Malaysia and even China have net export productive economies and it is reflected in their currencies upward pressure. IRR is the reverse so the pressure is downward but like everything else it'll be manipulated at the expense of Iranian blood and treasure.

In case of Iran, you have to combione several factors, including generally low productivity economy, lack of sufficient automation and enterprise maturity, pervasive corruption and ...disproportionate  amount of national treasure (unknown as a percenmt of GDP despite flaky IRR numbers) channelled into military purchase, para-military and then thug-forces, non of which is productive to economy even if you assume they actually make the junk destroyers and planes they advertise. also, Oil as a percent of economic production has been and remains at 80% and I covered that and its implications in brief. The inflation has been and continues to be massive and real indicator is not bogus numbers of IRR, rather the price of eggs, chicken and other daily commodities and we all know what has been going on there. The subsidies have prevented those and other commodities like raw materials to stay artificially low for reasons I explained. So the few exporters that play along with regime (Bazaris and many of the former industrialist/rich that play along) will get the preferential commodity prices for their manufactured or otherwise government controlled goods and even then the saving grace is all the former tribes now ISTANS around Iran that have become a market because...well they are istans. Everyone else... well good luck. Broadly this is reflected in unployment, low productivity, and centralization of economy and its controls.

OKtaby

Midewsty

I disagree with your position regarding government regulation. Free markets have been a total failure. The one thing they disregard is humanity and people. They also do not take into account occilations of the market. 

No regulations means that the more ruthless and lucky win; the rest lose. Do we want kids starving? Do we want homelessness? Regulation is like damping in a system. Without it we get wild occilations. Deliberate manipulations of the market. Did you see DOW drop 900 points in minutes? That is the gift of deregulation.

We need lots of government regulation. Why should someone make 20 million a year whilst others don't have bread? I am not a Marxist (hate the damn traitors) but I am not going to sit back and watch my fellow people suffer while some jerk buys a jet.

I do agree with subsidies. Bread and other necessities must be provided to those in need. 

NP,

The currency depreciation is good to some extend. If it 's manageable like what happened to the US then the manufacturing will grow because the price of the domestic goods will be lower than the foreign goods resulting in increase in export. and decrease in import and creating more domestic jobs that eventually improve the standard of people's life. 

Oktaby,

Your point is logical but your reasoning is very counter-productive.

Q, Sargord,

The relative freaking value of Rial is important. Our rial went down in the trash not because there was once established a new financial system, it's because there was a war, government had no money, the deficit was high they had no choice except to print money and that caused a whole lot of different issues and two significant ones are inflation and rial's depreciation against other currencies.

Money is like any other commodity, when there is more of it in the market, its price will fall.

Now look, they have just decided to remove the government subsidies from the goods and give CASH to people. This is absolutely insane! This for sure will cause inflation unless government put guns to businessmen head and ask them to regulate their price. Now this is a wide door open to the creation of black market!!!!!!! We've been down that path many times bro. It's absolutely insane!

The government has no business to regulate the market. They have to be busy enough to lay down grand economic policies to creat jobs that people can afford to pay for the goods and services rather than micomanging the economy. We are not talking about managing a baghalli, we are talking about a country of 72 millions!

Painful Inflation

folks there is no question that Iranian money isn't worth much. Thank the Marxists who wasted our 8 billion by taking hostages. Then the Mullahs who pump it out and send it to Switzerland. Then the master moron Abdulkarim Soroush who set up the brain drain thanks to his moronic cultural revolution. All the brains move out so we don't have people generating wealth. Then Bazargan moron master who said: if we don't share  wealth together we we will share poverty. What an asshole! 

I have been trying to set up an outsourcing firm in Iran to ship jobs there. For years I hit BS from IRI and USA. F*** the nuclaer and the hijab. Lets dump them both and get my firm going. How about thousand dollars per month for Iranian engineers? That would prop up the rial very well.

We need a scientific

We need a scientific analysis like this one but for Iran.

//www.dailykos.com/storyonly/2010/5/6/864051/-Bonddads-Economic-Reckoning

Real McCoy: You are right. I

Real McCoy: You are right. I wish the real economists speak up. Though statstics produced by IRI are suspect at best. How would an economist decipher between what's cooked in the books by the IRI and what the real numbers are?

..

I recall that khomeini said : EGHTESSAD MALE KHARA.

google trans, ECONOY'S for  JACK-ASS.

I'm not an expert in that field; But {econ. 101 } ASKS:         

plus how an ordinary family in Iran have to buy every thing cheaper than $ BUT recieve his pay check in WORTLESS RIAL ?        Maziar

the euro has crashed and so has dollar

eu rescue fund is going to the worthless debt for banks that fooled countries like greece to purchase. now they are forced into more debt so these banks that line their pockets. there's inflation for you. fake economics is fun when you're a fat cat.