Tuesday, October 9, 2012

Hyperinflation Hits Iran Like Weapon Of Mass Destruction

The chart of the last twelve month’s collapse of the Iranian rial is from National Interest. Note the gap-drop in value which occurred this week; the decline is accelerating. Recall that Hitler’s rise to power in the early 1930′s was greased by the devastating impact of hyper-inflation during the 1920′s in Wiemar Germany.

“Better buy now,” advised the rice merchant in Tehran. The retired factory guard took him up on the advice, buying 900 pounds of the stuff to feed his extended family for the next 12 months.

“As I was gathering my money,” the retiree told The New York Times, he got a phone call. “When he hung up, he told me prices had just gone up by 10%. Of course, I paid. God knows how much it will cost tomorrow.”

Story: http://www.forbes.com/sites/greatspeculations/2012/10/08/hyperinflation-hits-iran-like-weapon-of-mass-destruction/