Thursday, October 23, 2008

Iran's economic stimulus package

With the price of oil crashing, look for an "incident" to scare it back up, says Galrahn at Information Dissemination:
As the price of oil drops, the pursuit of nuclear power doesn't justify the economic costs to the autocratic driven economy in Iran. The loss of government revenue due to lower oil prices comes at the same time the UN is discussing the next round of sanctions. It also comes at the same time that Iran's biggest supporter Russia suffers a stock market crash, which is noteworthy because the Micex is where a lot of Iranian autocrats go with their investments.

So what will Iran do? Raise the price of oil, and they have a time tested strategy for doing exactly that.

No comments: