Iranian press, economists accuse Ahmadinejad of “economic suicide” after rate cut
posted at 11:05 am on May 26, 2007 by Allahpundit
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Your humble Hot Air team is trying to take it easy this holiday weekend, partly because we’re rolling out a new feature on Monday night and want to be rested and ready to go when we do. Blogging will continue until then, but don’t expect much more than a link and a courtesy blockquote in each post.
First up: Mahdi displays the type of economic acumen that’s led to one of the world’s leading producers of crude oil having to import gasoline.
Iran’s Press and economists yesterday slammed a decision by President Mahmoud Ahmadinejad to slash interest rates, describing the move as “incomprehensible” and risking “economic suicide”.
The rate cut decision, which economists said could overheat an already inflationary economy, appeared to have been taken without the knowledge of economy minister who had said exactly the opposite just hours earlier…
The centrist Ham Mihan daily said that hours before the decision was announced, both Economy Minister Davoud Danesh Jafari and central bank chief Ebrahim Sheibani said rates would stay the same.
“They were unaware that (the president) was pouring cold water on the economic commander of his cabinet in order to increase the temperature of Iran’s economy,” the daily said.
The Guardian reports “panic selling” on Iran’s stock market.
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Democrats will be outraged by this move. Everyone knows that you must increase taxes and interest rates to make an economy boom.
DannoJyd on May 26, 2007 at 12:07 PM
The thing people never really talk about with The Madman is that he’s an old style Soviet when it comes to economics, i.e. an economic populist. He does things to ensure central control of the economy without any real sound planning and things like subsidizing gasoline prices so people don’t get angry about prices. This of course leads to shortages and eventual rationing like we see now, plus the need to double the price of the rationed gas because rationing isn’t enough to bring things back near equilibrium in the budget.
I can’t imagine what these idiots are gonna do with the stolen or purchased nuclear know-how they’ve aquired over the years. It’s like watching a long episode of Unfrozen Caveman Lawyer without the self-aware sense of irony.
The Apologist on May 26, 2007 at 12:09 PM
what’s the new feature that’s coming? live video blogging with AP?
lorien1973 on May 26, 2007 at 12:12 PM
Let’s hope the Iranian people have a democratic revolt before the US and Israel feel compelled to take out the nuke sites by force.
gmoonster on May 26, 2007 at 12:39 PM
The sad thing is that I think given time the Bush administration’s efforts against this Iranian regime would topple them but what with the amnesty thing I have very little support to give the Bush administration.
Buzzy on May 26, 2007 at 4:33 PM
Are those actual interest rates or some construct to get around Islamic prohibitions on usury? Iran is an Islamic Republic, after all…
rw on May 26, 2007 at 4:41 PM
Maybe the fool is feeling cocky with even more oil comming soon to Iran from Iraq, with maybe the rest of Iraq to come?
P. James Moriarty on May 26, 2007 at 6:21 PM
So this makes him an economic suicide bomber. eBomber?
Mojave Mark on May 27, 2007 at 1:03 AM
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