December 4, 2008

THE SKIDS WON'T EVEN BE GREASED:

Reformists Say President Squandered Oil Cash: Most Iranians complain about high inflation, at over 29 percent, and rising unemployment. (Reuters, December 04, 2008)

"His main campaign slogan was to share oil wealth fairly ... But instead, his economic policies have caused major problems for Iranians, particularly for lower-income people," Mohsen Mirdamadi, the party's secretary-general, told about 400 people at an annual party meeting.

Critics, both reformists and conservatives, including some who backed Ahmadinejad's first presidential bid, say the leader's high spending is to blame for surging inflation that stood at about 11 percent when he took office in 2005.

"Since the (1979 Islamic) revolution, Iran's total oil income has been $700 billion. Over 36 percent of it was earned during the tenure of office by Ahmadinejad," Mirdamadi said. "But inflation and unemployment rates are the highest now."

Mirdamadi said substantial political reform was needed.

"Reforms are the only solution to the economic crisis," Mirdamadi told the audience, which included reformist former president, Mohammad Khatami.


And that money source is a thing of the past, Oil falls to three-year low in Asia (Tamsyn Carlisle, December 04. 2008, The National)
The price of oil has slid towards a four-year low near US$45 a barrel, as US demand continues to tumble amid further deterioration of the world’s biggest economy. [...]

Oil demand has collapsed to such an extent that US petrol prices, net of taxes, have fallen below the cost of crude, so that refiners lose money on every litre of fuel produced.


A good thing for Iran and the other petro states, because: No representation without taxation.

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Posted by Orrin Judd at December 4, 2008 8:54 AM
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