Tuesday, January 10, 2012

Sanctions Taking A Toll On Iran

(Click on Image to Enlarge)

Sanctions Begin Taking A Bigger Toll On Iran -- L.A. Times

The West's strategy has sent the currency, the rial, into a tailspin and pushed inflation higher. But the risks are high.

Reporting from Washington and Tehran—
The West's campaign to punish Iran for its suspected nuclear weapons program has begun to inflict far more damage on Tehran's economy in recent weeks, spurring a new phase of a dispute that carries acute risks as well as opportunities for the United States and its allies.

Fear of potentially crippling new economic sanctions have helped send the Iranian currency into a tailspin, drive basic commodity and import prices sharply higher, and spark runs on Iranian banks.

Read more ....

My Comment: For the Iranians .... they have a clear choice. Nuclear talks or higher prices and shortages in basic staples. For the moment .... they want the higher prices and shortages. Next year .... hmmmm .... this may change.

No comments: