Amidst the financial wreckage around the world, the Islamic Republic of Iran is enjoying the view while it watches the the global gnashing of teeth.
"We are very happy that America's economy is in jeopardy and they are paying the price for their misdeeds. God is punishing them." That is the verdict from Ayatollah Jannati, one of the most senior clerics in Iran.
President Ahmadinejad has pronounced on the collapse of global capitalism, and announced that Iranians should stand ready to manage the world.
And for the moment, Iran does seem to be above the fray.
Shares on the Tehran stock exchange, while down slightly in recent trading, have increased in value by 20% during the year.
This is the only economy in the world - indeed possibly in world history - in which you can borrow money from the bank and then receive a higher rate of interest by depositing it in the same bank.
Ahmadinejad, who says he is proud of his ignorance of economics, also seems to believe the laws of supply and demand do not apply to the Islamic republic. He insists the large amounts of cash in the economy (excess liquidity) is in no way to blame for the spiralling rate of inflation - 25% and counting.
On top of that, construction work is beginning to grind to a halt. One real estate agent told the BBC that prices were down 20% from their peak. Hundreds of thousands of apartments are reported to be lying empty. "We are in a recession. No-one wants to buy. Demand is very low and there are many properties for sale," said the agent, Alireza Jahan.
No one will have too much sympathy for Iran's property elite. And most Iranians will be delighted at falling rents and property prices. For them, life has been tough for as long as they can remember, with high inflation and unemployment.
1 comment:
How is this Bizzarro?
Have you been watching the news?
Sounds quite sound comparing to the headfuck happening on wall street.
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