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Iran Running Out of Physical Currency, Satellite Broadcasts Dropped in Europe
iONiUM writes "In an interesting problem with physical currency, Iran is now running out of hard currency, due to a combination of inflation, and 'Koenig & Bauer AG of Würzburg, Germany, also says it has not responded to an Iranian request for bids to make the presses to print new rials.' Perhaps they should switch to BitCoin."
In addition to not printing money for them, the European currency presses won't sell Iran the equipment needed to print their currency domestically (not unexpected with the embargo). pigrabbitbear adds: "Eutelsat Communications, one of the largest satellite providers in Europe, has just nixed its contract with IRIB, the Iranian state broadcasting company. While IRIB's programming is still mostly up and running in Iran, the decision means that 19 IRIB TV and radio channels have now been axed from Europe and much of the Middle East."
Printing currency is a fundamental human right! Next thing you know, they be telling you and me that we can't print currency anymore either.
Sheesh, evil *and* a jerk. -- Jade
If the hard cash is difficult to come by, then doesn't it raise the value of the printed notes thus nullifying the inflation and the need for more printed notes?
That is what happens when you take with one hand and flip everyone the bird with the other.
One of those Karma things.
while(1) attack(People.Sandy);
Well at least we can try out our economic theories on Iran about how to manage the money supply. If they are better off without increasing the money supply so as to not risk hyperinflation, we can then analyse what free market responses move to restore productivity.
In a society of such unquestionably uncorrupted morals and principals why is a non-repudiable currency even necessary?
"... always going forward 'cause we cant find reverse! "
Iran switch to BitCoin? Noooooo! We can't let them do THAT! According to experts*, if they did that, all their financial troubles would evaporate overnight through the magic of cryptographicalityness! LOOK AT HOW CRYPTOGRAPHIC IT IS!!! Then unicorns would come back and fart rainbows and candy all over the country and they would become as GODS to us mere mortals with our non-cryptographic currency that isn't even SHA-1 hashed! We can't let that happen!
*: Read: "fanatics".
Yes, Iran was suspected of printing Superdollars because the previous regime had the exact same physical machinery as the US Treasury. Perhaps they couldn't buy or fabricate spare parts to keep those presses running.
I think that, at least in part because of Bitcoin, there is quite a bit of interest about currency here. I know I appreciate the story and find it interesting.
W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
It's my new virtual currency called BLIT-Coin. It only draws currency on a screen. No printers needed.
Silence is a state of mime.
So they'll have more time to hang around the mosque instead of sitting home, watching Baywatch reruns.
Have gnu, will travel.
I think its funny that "news for nerds" doesn't know that hard currency and physical currency are two different things to businessmen / economists and /. is getting them confused.
Hard currency is someone else's stable currency or gold. You want that when you're doing the hyperinflation thing like Iran's doing now and the US is attempting to do and Germany did about 90 years ago. Foreigners like satellite broadcasters want "real" aka hard money.
Physical currency is the paper bills. Once a stack of bills can't buy a roll of toilet paper, people start using money instead. Ditto firewood/kindling. Again a symptom of inflation. Most legal foreign trade doesn't involve paper currency so the satellite owner probably doesn't care about Iran's paper currency.
It takes pretty high tech to make cutting edge hard to counterfit paper money. Coinage is possible if you have gold. Paper checks, bank accounts, and credit cards don't care how many zeros are on them. Bitcoin would work but its hardly the only solution and requires a lot more electricity than a checkbook. Its not a huge deal.
"Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
Oil
Blar.
"It is pretty douchy that Israel didn't have to sign the NPT but gets weapons and reactors."
No one has to sign it, it's entirely option. Note that Pakistan, India, and North Korea all have weapons and reactors but are not signatories either.
The treaty is based on the idea that if you sign up, then if you don't have nuclear weapons, then you don't seek to acquire them, and if you do have nuclear weapons, then you agree to reduce stockpiles with the aim of eventually disarming. In return for agreeing to this, you get access to global nuclear technology and information sharing agreements for peaceful nuclear power generation. The problem with Iran is that it wants access to this information, and the nuclear components market, but it's not fulfilling it's legal obligations to prove that it's not seeking to acquire nuclear weapons.
I hope this clarifies the difference between Israel, India, Pakistan, and North Korea vs. Iran. The former 4 have basically made the calculation that they'd rather have nuclear weapons and worry about sourcing nuclear enrichment and power technologies outside of international frameworks, or alternatively, simply developing it themselves internally. In contrast, Iran is basically saying they want all the benefits of the NPT, whilst fulfilling none of the obligations. You can't do that, you either sign up to all, or nothing.
One final point I'll make though is that action to prevent states becoming nuclear capable can happen whether the NPT is involved or not, so you shouldn't assume the NPT is a tool used to simply beat nations with, it's not. The reason I say this is because the pressure against North Korea (a non-NPT signatory) is as strong as against Iran (an NPT signatory). As you can see, rhetoric, proposed action, or actual action against a nation is simply to do with global politics as much as it is NPT compliance - in other words it doesn't matter if India/Pakistan/Israel are NPT signatories or not, any action against them will happen, or not happen, regardless of their NPT signatory status so Israel signing up to the NPT, or Iran dropping out of the NPT, would have absolutely no bearing on the pressure (or in Israel's case, lack of) against them.
Actually that's been a primary reason for Iran's economic collapse so far - both the US and Europe actually put their money where their mouth is for once and actually stopped buying Iranian oil. Whilst China has picked up some of the lost sales, it's not picked up even close to all of it, and worse, because China is no longer competing with the West for Iranian oil, and Iran desperately needs to sell that oil, China has been able to bargain for lower prices for it. Saudi Arabia has increased output to support the loss of Iranian oil to the US and Europe which is why they've been able to pull it off.
Europe (and presumably the US?) have also just this week now extended that to gas too, which will hurt Iran's economy even more.
I'm not sure who the "we" in your comment might be, but the International Energy Agency estimates that Iranian oil exports are down 60% this year. The only countries which are buying oil from Iran appear to be China, India, South Korea, Japan and Turkey.
The EU banned imports of crude oil from Iran, starting in July. The ban also prohibits European insurance companies from covering Iranian export shipments, which makes it difficult for many countries outside of Europe to import Iranian oil.
The oil embargo is the primary reason for the fall in value of the Iranian rial. Without dollars flowing into Iran, their own currency becomes worthless. The current exchange rate is 12265 IRR/USD. That makes the price of imports out of reach for most businesses and consumers in Iran. Inflation in Iran is estimated to be about 30%.
The Iranian people are increasingly pointing the finger of blame at Ahmadinejad and no one else. Iran's parliament wants to throw him out, but they don't have the power (yet). I think his days are numbered.
"why there are all these sanctions against Iran."
The two primary reasons are:
1) Refusing to fulfil it's obligations as an NPT signatory. It is fairly unique in this regard.
2) Sponsorship of groups on US/European terrorism watch lists. This is something other nations do (including the US/Europe ironically).
But it is point 1) that would normally be used as the reason for separating Iran from other nations, though it may be worth reminding you that Syria and North Korea have also both been under sanctions for many years for these reasons also so it's not as if they're being applied to just Iran, though I will agree with you, they are still applied somewhat selectively - for example, Pakistan is also complicit in funding terrorist organisations, and has a nuclear programme (though like North Korea, is not an NPT signatory) but because it's a US ally, it gets away with these things.
Except even Mossad, as long with US intelligence agencies, doesn't believe they're building a bomb. It's all about regime change, though killing the sick and making the poorest children starve is all the policy will achieve.
I'm sorry I wasn't clearer. I didn't mean that people were interested in this story because it mentioned Bitcoin. I meant that people on Slashdot seem interested in how currency works in general, at least in part because of Bitcoin.
One of the criticisms of Bitcoin is that it does not inflate after a certain point - so in theory it could stifle an economy that outgrows it. And along comes a real-world example of a fiat currency that is unable to inflate. Personally, I find that to be very interesting.
W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
In short, the embargo is working. I'm actually quite pleased at all of this. It's very good to see diplomacy working in place of - and, really, better than - war.
The English word fart is one of the oldest words in the English vocabulary.
why there are all these sanctions against Iran. OK: I know that the government does not always treat its citizens nicely, but there are plenty of other countries that act in much the same way and they are ignored; they have a nuclear programme, but so have many other countries and some of these other countries have admitted to producing or using bombs (eg USA); they have interfered in other countries and helped to support ''rebels'', but so have others (eg USA, UK).
So if they are not doing worse than other countries including us, then what is it all about ? I do note that they are sitting on plenty of oil, so are they the next Iraq ? Better ask Cheney I suppose!
They humiliated the U.S. 33 years ago.
Oh, and that whole threatening to destroy Israel thing. Strangely, the Jews take threats of genocide against them very seriously.
the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff
Because Iran has stated a desire to wipe another sovereign nation off the map. You may not believe that Iran would ever attempt it, but you aren't deciding foreign policy.
Iran Sanctions Now Causing Food Insecurity, Mass Suffering
It may be worth reading this, iranian are now facing severe food shortages and lack of medicine, this will physically weaken the population and have an actual death toll. Who are we to impose such misery, and why is the EU doing this? It's a shame, and possibily an act of war. The population won't overthrow the regime either, because they're being weakened and growing dependant on the regime for their survival. These sanctions are absurd, abject and only useful if the US/Israel intend to attack the country thereafter.
About the time you hit the industrial era, you'll have the option to discover the printing press. And banking. Now unfortunately looking at your civilization's profile, you haven't even made it to the renaissance yet, so you still have a ways to go, but in a couple hundred turns, you'll be set!
I'm trying to teach myself to set people on fire with my mind... Is it hot in here?
It wouldn't be the first time that a country has started a war to take pressure off a domestic situation.
Yes, that probably is what Obama and Netanyahu are trying to do.
I am sure that there are many other solipsists out there.
Who are we? "We" are in a cold war conflict with Iran. We are trying to keep this from escalating into a hot war by imposing sanctions to pressure Iran into complying into agreements they have made - nuclear non-proliferation. Their leaders have threatened attacks on Israel, the U.S. and others. They have been engaging in terrorist attacks across the middle east directly (Quds Force) and through proxies (Hezbollah). They have threatened Israel with annihilation. Israel thinks Iran will try to destroy it if it gets nuclear weapons to they think they must attack now in order to avoid a nuclear war later. "We" would prefer that they not do this but we understand their concerns so we've asked them to hold off and let the sanctions work.
Very often, people confuse simple with simplistic. The nuance is lost on most. - Clement Mok
They are free to build their own printing presses.
The EU is simply refusing to give them one.
With all due respect, your information is either out of date, or in place, completely and utterly wrong.
"As a signatory to the NNPT, Iran has every right to develop nuclear power, enrich uranium and have access the full nuclear fuel cycle."
It has the right to obtain peaceful nuclear technology, whilst it is also fulfilling it's obligations under the NPT. The problem is, as it's not currently fulfilling it's obligations under the NPT, it also does not have the right to obtain peaceful nuclear technology via NPT supported mechanisms.
"Israel and the USA are attempting to deny this capability to Iran because they *might* build a nuclear weapon."
It's not about might, it's about the fact that as an NPT signatory to gain the benefits of NPT mechanisms for transfer of peaceful nuclear technology you have to fulfil certain obligations. Iran is currently in breach of those obligations and it's nothing to do with what the US or Israel thinks as the IAEA is a multinational organisation staffed by as many of US/Israel's foes as it is their allies. If you do not believe me that it is the IAEA condemning Iran for not fulfilling it's obligations and simply US/Israeli say-so, then see here, read it directly from the horse's mouth:
http://www.iaea.org/newscenter/focus/iaeairan/index.shtml
Or specifically the most recent report here, asking Iran to fulfil it's obligations:
http://www.iaea.org/Publications/Documents/Board/2012/gov2012-50.pdf
"National Intelligence assessments concluded that Iran had abandoned its weapons program 10+ years ago."
This is true, but only a half-truth. You've missed the fact that the IAEA believes there is some evidence the programme may have restarted, and it is up to Iran to fulfil it's obligations to prove otherwise if it wants to be in compliance with the NPT. So sure they did abandon it, but that doesn't mean they didn't start it again.
"Iran has bent over backwards to accommodate UN (i.e. USA) demands for access to its facilities"
No it hasn't, you've got a number of things wrong here:
1) Iran hasn't bent over backwards to accomodate the UN (IAEA), on the contrary, the IAEA has bent over backwards to accomodate Iran. Specifically, Iran barred a number of IAEA inspectors from it's site from countries it has a distaste for (including the US). A country is not meant to be able to pick and choose what inspectors it allows in as that defeat the object of impartial observations of a nuclear programme. Despite this the IAEA let it do it and got on with it's job anyway. If there is any bending over backwards, it's from the IAEA not Iran.
2) The UN isn't the USA, and the USA isn't the UN. I think you'll find there are a number of UN members, including Iran themselves who'd take offence to you determining that their UN votes are controlled by the USA.
3) There are a number of facilities and sections of facilities the IAEA has requested access to, but have had their request deny. This is one of the reasons the IAEA has determined Iran non-compliant. See the most recent report here for evidence of this complaint by the IAEA:
http://www.iaea.org/Publications/Documents/Board/2012/gov2012-37.pdf
Specifically, near the top of page 3:
"Iran has not responded to the Agencyâ(TM)s initial questions on Parchin and the foreign expert; Iran has not provided the agency with access to the location within the Parchin site to which the Agency has requested access; and Iran has been conducting activities at that location that will significantly hamper the Agencyâ(TM)s ability to conduct effective verification."
"but EVERY TIME Iran has compromised, the USA and Israel create another hoop for them to jump through."
Again, it's nothing to do with the US and Israel, the US's
Back in the seventies Iran had the same intaglio presses used by the Bureau of Printing and Engraving to print US Currency. Back then they used it to print their own currency. After the revolution they are suspected to have used the presses to print counterfeit US currency. If they can build isotope separation centrifuges on an industrial scale they can manufacture whatever spare parts they need to keep those old presses in operation.
At some point they'll just buy the machines from China, Russia or some other country willing to sell to them.
blindly antisocialist = antisocial
The Shah became a dictator when the USA overthrew the democratic government in 1953.
Get a rat in a corner, you don't know what it is going to do.
And if you're a cat, you really really want the rat to try something. The rat will die in a while anyway, when it runs out of energy or the cat tires of "playing" with it. The cat will be unharmed, and won't even exert itself too much while having fun.
I had a pet cat when a kid. We lived beside a large railway embankment which had lots of rats - big ones, but not as big as the cat. She would be sitting beside a line of three to six dead rats on the lawn almost every morning (after we learned to fully close the windows so she could not bring them into the house to be proudly shown to us). Several times, I saw her "playing" with surprisingly large rats corralled into a corner of the garden, and killing them with a neat bite to the neck only when they were too exhausted even to attempt escape. After a couple of years, there were no rats left anywhere near our house.
Those who can make you believe absurdities can make you commit atrocities. - Voltaire
"It's all a conspiracy by the jews and crusaders! "
Are you really trying to suggest that the Israeli/USA sanctions regime has nothing to do with Iran's currency problems?
Those who don't listen to us will feel our wrath. Example Iran. This may seem off topic but I think it's relevant to the underpinning factors of this piece of foreign policy. I'm going to be pragmatic and honest rather than ideal here.
It's my opinion that land and its resources belongs those who conquer it. Who ever gave anyone ownership of oil and/or land? No one, you conquer it then you defend it. I don't care if your God gave/promised it to you, or that you have been there for centuries/millenia. History has shown this time and time with European colonization of Africa and Americas, the mongol conquest of central Asia, the Islamic conquest of Northern Africa and Europe, the Israeli settlement of Palestine. In this regard, Palestine, Saudi oil, etc. all are up for grabs if you ask me, if you wish to take up the conquest.
As an American, I have no problem supporting a questionable foreign policy as long as it serves OUR national interest. I don't have a problem with double-standards, forcing our will, nor do I care whether it is fair, just, and righteous. What does bother me is the masses eating up the propaganda fed to them by our gov't and media and regurgitating it as the noble path. What we are doing to Iran is immoral, unfair and an act of war. Save me the BS of "spreading democracy", "doing the right thing", or speaking of this "world's/international community's" which is only made up of a minority group of nations.
Patriotism/nationalism is irrational, ideological and dangerous and it's running wild in the USA more than ever. The whole society/political spectrum has shifted to the right, xenophobia, intolerance and attacks on secularism are on the rise. Combine this with our hostile approach and disregard to just about any country save a few, we are perpetuating our own decline.
This choke hold on Iran to me, is doing the bidding of our ally Israel based on fickle evidence that is at best propaganda. In addition, we are also doing the bidding of the Saudis and other satellite Saudi kingdoms . I see this as the USA outsourcing its might. I don't believe this serves our national interest. The damages of our hostile actions will hurt us economically, politically and make us less safe. We are walking a tight rope over stagflation should the oil prices rise not to mention of sending more Americans in harms way.
I am by no means a supporter of Iran or its current government, but I do believe in facts. President Ahmadinejad has never said that Israel must be wiped off the map. The entire issue arose from a mistranslation of his statements, which is more accurately translated as "this regime occupying Jerusalem must vanish from the page of time." If you're going to use this statement to support actions against another country, please get it right.
Source here.
A NYC lawyer blogs. http://www.chuangblog.com/
Iran is a real paradox. It is fundamentally hostile to free thought and free expression, yet is utterly dependent on the fruits of free thought and free expression.
Actually, my thought was "OK, now China picks up a bit more business."
I suppose they *could* build their own, but I doubt that there's only one supplier, and I doubt that China would trust a western country will something so essential to government operations. But China is large enough that it's reasonable to build their own. Which means that it's reasonable to sell them for increased profit (in some form, not necessarily cash).
OTOH, check out China's concept of foreign aid. The US etc. gives or loans money, which needs to be spent on US etc. corporate goods. China gives projects, which they build. (Local labor usually is minor.) Then there's this useful project already there, which requires help from China to keep running. It benefit China in a few other ways, too. This does cause local resentment, as locals can't get hired to do the work (except as low level workers), but not to the extent that US loans do, which need to be paid back, and often result in local "austerity measures" being forced on a country that is already nearly broke and operating on a shoestring. And it's cheap for China, compared to the costs to the western governments of equivalent help. (Of course, in the west many financial groups get large payoffs, which the Chinese approach doesn't provide. They take their payment in other ways.)
So if a typical scenario happens, China will offer to install locally a currency printing press, in return for some concessions. (Probably political rather than financial, but no guarantees. They could also ask for resources.) They will install the plant, but it will be dependent on Chinese parts and Chinese experts. No overt threats will be made, even afterwards, but it will be clear to the government that they have been partially 0wn3d. And they will blame the Europeans for forcing them into the position.
It may not play out that way, but if it does you read it here first.
I think we've pushed this "anyone can grow up to be president" thing too far.
Except Iran said nothing whatsoever of the kind, that's a deliberate mistranslation by the press that was debunked years ago.
After finally ending the puppet regime installed by the U.S. and Britain, when we overthrew Iran's peaceful, secular government. Anytime neocons want to whine about the theocratic government of Iran, they should start with the nearest mirror.
Repeating a Big Lie doesn't make it true. Not only has Iran never said anything of the kind, they haven't attacked another country in 200 years. As opposed to the real belligerent powers here: the U.S. and Israel, who have both launched dozens of first strikes or wars of choice since WWII.
There was always that kid on the playground in grade school who nobody wanted to sell currency presses to cuz he was a dick to everyone. It's just funnier on a larger scale.
There is a system for national bankrupcy. It's called war (either civil or external). Currently, that is the only estalbished way for a country to free itself of international debt. Look what happened to Argentina in 1999...
The pre-BK system we have today, however, is called the IMF. This is analogous to credit counseling before BK. Assuming the IMF is somehow a-politicial is absurd in the extreme.
The typical prescription that the IMF had a country follow is to cut their budget, force a country to open up to (more) global trade, and divest their state owned corporations to private capital interests around the world. However, this credit-counseling prescription is predicated on the idea that a country is "too-big-to-fail" and that if it were to go into default (or BK), private capital interests would get damaged and cause global economic chaos. Thus the IMF prescription is heavily tilted to global economic interest, often at the expense of the state's best interests. This means the IMF is essentially like a credit-counseling service working for the creditors. They carrot they hold out is so that your country can get credit.
Having the IMF handle a state BK (if there were an organized way to do such a thing) would be like having a credit counselor who works for your creditors handle you BK. Can you say serious conflict of interest?
On the other hand, when a country takes things into its own hands instead of the IMF...
Sanctions, like war, are a form of coercion. And they kill, too, just more slowly. They have nothing to do with diplomacy (i.e. negotiations).
LIE. That is all there is to be said about this.
Since the rights of non-Muslims and women are far worse in Saudi Arabia, and they don't even pretend to have a democracy, why aren't we punishing them?
Remember, the American word for "democracy" really means "does as we tell them." There is no exception to that rule.