Iran Wage Price Spiral Towards HyperInflation Panic Collapse Triggered by U.S. Currency War WMD’s
By: Nadeem Walayat
Market Oracle
Oct 03, 2012
Whilst the Israeli PM was busy using propaganda cartoons at the UN to prepare the brain washed masses of the world for an attack against Iran’s nuclear infrastructure, in addition to the raging cyber war, the currency war against the Iranian elite has continued to accelerate as the US elites succeeds in decoupling Iran’s central bank from the global central bank crime syndicate that manages the relative rates of free fall amongst all fiat currencies to give the illusion of currency stability which has sent the Iranian Rial literally into free fall.
Whilst the official Iranian central bank rate for the Rial remains stuck at a rate no one can actually trade at, the real rate that people actually live with continues to collapse by falling by more than 25% in just 1 week, and by 70% over the past year (against USD), where apparently the decline is being accelerated by all things the inauguration of new currency trading centre just over a week ago! Which has allowed for easier trading (dumping) of the Rial, as Iranian citizens, investors and speculators have rushed for the exit that is igniting an hyper exponential inflation mega-trend that has sent Iran’s annual inflation rate soaring to 55%, and with no sign that the inflationary panic is likely to diminish as the most recent currency plunge feeds through to prices in the shops that ensures that the wage price spiral will continue to accelerate the trend all the way towards hyperinflation despite high unemployment as workers see prices rise, then demand wage increases in line with the price rises else the Iranian elite faces ever increasing waves of demonstrations threatening their hold over power, thus feeding a vicious cycle of further panic selling of the Rial as no one wants to hold a currency that is in perpetual free fall.
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