File under: USG as global bully.
The first American sanctions on Iran since a moderate cleric won the presidential election there on June 14 went into effect on Monday, expanding the number of penalized industries and imposing rules that theoretically could halt all gold and currency trade by the country, reports NYT.
Iran, reports NYT has increasingly traded its oil and gas for gold with countries like Turkey because of earlier financial sanctions that have prevented the Iranians from using conventional bank payment methods. The Iranian authorities are then able to use the gold to buy dollars and euros needed to purchase other needed imports, or to support the faltering value of Iran’s own currency, the rial.
But, now, bullion dealers in other countries who flout the prohibition risk severe American penalties, including expulsion from the United States precious metals market.
The new sanctions, which also penalize Iran’s automotive industry and any foreign bank that conducts “significant transactions” in the rial, are the result of a bill signed by President Obama in January and an executive order he decreed early last month, before the Iranian election.
And this is why Bitcoin was invented...
ReplyDeleteThe tightening of economic sanctions against the corrupt regime in Iran may be responsible in part for the election of President Rowhani as the Supreme Leader Khamenei struggles with a population hit hard by his economic policies. The larger question is whether or not the West will maintain its will in keeping pressure on Iran or will it give Rowhani/Khamenei the out they so desperately need to repair an economy they shattered and win back a populace that is growing increasingly restive. What is happening in Egypt with Morsi one year after his popular election is sending shivers down the backs of Iran's leaders.
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