Oct 3, 2012 by AdamKokesh
Thursday, October 4, 2012
Brother JohnF - Silver Update: Swift Rial Decline
If you have not already read the post on Iran's hyperinflation it can be read here
Oct 3, 2012 by BrotherJohnF
Oct 3, 2012 by BrotherJohnF
Americans can be indefinitely detained - NDAA supported by court
Oct 3, 2012 by RTAmerica
On Tuesday, a federal appeals court ruled that the US government can indefinitely detain anyone under the National Defense Authorization Act. This comes as a blow to the ruling that was given earlier this year, when US District Court Judge Catherine Forrest ruled that the NDAA was unconstitutional. So what does this mean for journalists and why was it overturned? Carl Mayer, attorney for The Mayer Law Group, joins us with the latest.
On Tuesday, a federal appeals court ruled that the US government can indefinitely detain anyone under the National Defense Authorization Act. This comes as a blow to the ruling that was given earlier this year, when US District Court Judge Catherine Forrest ruled that the NDAA was unconstitutional. So what does this mean for journalists and why was it overturned? Carl Mayer, attorney for The Mayer Law Group, joins us with the latest.
Hyperinflation Has Arrived In Iran
I had a surrial moment as I passed the Wynyard Coin Centre this morning. In the window was the following two banknotes, a 100 Trillion Dollar Zimbabwean note from 2008 and 100 Rial Iranian note from 2000. Is my mate Dave entering into monetary commentary or is this just the world's most telling juxtaposition?
From ZeroHedge.com
Original source
As we have been actively warning for a few days now (Iran's Misery Index and here) - and has now become mainstream media-critical - Iran is accelerating toward significant regime volatility... it seems our note on hyperinflationary case studies and the 'blame' and 'denial' extension is particularly timely...
Submitted by Steve H. Hanke via Cato-at-Liberty,
Since the U.S. and E.U. first enacted sanctions against Iran, in 2010, the value of the Iranian rial (IRR) has plummeted, imposing untold misery on the Iranian people. When a currency collapses, you can be certain that other economic metrics are moving in a negative direction, too. Indeed, using new data from Iran’s foreign-exchange black market, I estimate that Iran’s monthly inflation rate has reached 69.6%. With a monthly inflation rate this high (over 50%), Iran is undoubtedly experiencing hyperinflation.
When President Obama signed the Comprehensive Iran Sanctions, Accountability, and Divestment Act, in July 2010, the official Iranian rial-U.S. dollar exchange rate was very close to the black-market rate. But, as the accompanying chart shows, the official and black-market rates have increasingly diverged since July 2010. This decline began to accelerate last month, when Iranians witnessed a dramatic 9.65% drop in the value of the rial, over the course of a single weekend (8-10 September 2012). The free-fall has continued since then. On 2 October 2012, the black-market exchange rate reached 35,000 IRR/USD – a rate which reflects a 65% decline in the rial, relative to the U.S. dollar.
The rial’s death spiral is wiping out the currency’s purchasing power. In consequence, Iran is now experiencing a devastating increase in prices – hyperinflation. As Nicholas Krus and I document in our recent Cato Working Paper, World Hyperinflations, there have been 57 documented cases of hyperinflation in history, the most recent of which was North Korea’s 2009-11 hyperinflation. That said, North Korea’s hyperinflation did not come close to the magnitudes reached in the recent, second-highest hyperinflation in the world, that of Zimbabwe, in 2008, nor has Iran’s hyperinflation – at least not yet.
Original source
As we have been actively warning for a few days now (Iran's Misery Index and here) - and has now become mainstream media-critical - Iran is accelerating toward significant regime volatility... it seems our note on hyperinflationary case studies and the 'blame' and 'denial' extension is particularly timely...
Submitted by Steve H. Hanke via Cato-at-Liberty,
Since the U.S. and E.U. first enacted sanctions against Iran, in 2010, the value of the Iranian rial (IRR) has plummeted, imposing untold misery on the Iranian people. When a currency collapses, you can be certain that other economic metrics are moving in a negative direction, too. Indeed, using new data from Iran’s foreign-exchange black market, I estimate that Iran’s monthly inflation rate has reached 69.6%. With a monthly inflation rate this high (over 50%), Iran is undoubtedly experiencing hyperinflation.
When President Obama signed the Comprehensive Iran Sanctions, Accountability, and Divestment Act, in July 2010, the official Iranian rial-U.S. dollar exchange rate was very close to the black-market rate. But, as the accompanying chart shows, the official and black-market rates have increasingly diverged since July 2010. This decline began to accelerate last month, when Iranians witnessed a dramatic 9.65% drop in the value of the rial, over the course of a single weekend (8-10 September 2012). The free-fall has continued since then. On 2 October 2012, the black-market exchange rate reached 35,000 IRR/USD – a rate which reflects a 65% decline in the rial, relative to the U.S. dollar.
The rial’s death spiral is wiping out the currency’s purchasing power. In consequence, Iran is now experiencing a devastating increase in prices – hyperinflation. As Nicholas Krus and I document in our recent Cato Working Paper, World Hyperinflations, there have been 57 documented cases of hyperinflation in history, the most recent of which was North Korea’s 2009-11 hyperinflation. That said, North Korea’s hyperinflation did not come close to the magnitudes reached in the recent, second-highest hyperinflation in the world, that of Zimbabwe, in 2008, nor has Iran’s hyperinflation – at least not yet.
....and it seems the Iranian are people are not impressed by their savings "vaporising". I wonder if we will ever see such protests in Martin Place against our central bank destroying our savings? Oh that's right we already have.
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| Occupy Sydney protest outside the RBA |
Gold and the Correction
By Martin Armstrong:Unfortunately, there are far too many people who are just cheerleaders for gold and not analysts. Gold is no different from any other market. It must pause and regain its strength like a human being must sleep at night to awake with energy and booming with life (after coffee of course). Saying a correction in gold is necessary to build a base for the foundation of the next rally is not being anti-gold – just realistic.
Read Martin's latest gold analysis here or by clicking on the image.
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