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Subscribe to RSSThe United States, the European Union and the U.N. have imposed tough economic sanctions against Iran –- blocking access to the international banking system and hurting sales of Iranian crude oil -– as a way to persuade Tehran to abandon its nuclear program.
In the short term, the harsh sanctions have had an impact on Iran’s economy -– inflation has gone through the roof, and the unemployment rate is staggering, especially among young Iranians. Prices of consumer goods have doubled, tripled, even quadrupled in some cases, according to consumers.
The business community is in disarray, and as things keep getting worse, it’s all people are talking about.
Reuters
CLICK ON THE GRAPHIC ABOVE TO ENLARGE THE IMAGE. Iran Sanctions: Key areas affected by sanctions imposed by the international community against Iran.
Barely getting by
At the Tajrish Bazaar in North Tehran on a recent afternoon, Ahmed, a 31-year-old unemployed man, poured his heart out to me. Speaking on the condition of anonymity, as all those interviewed for this story did because of the political sensitivity of speaking out in Iran, he told me his story.
He said he has been unemployed for the past year, doing odd jobs, and that he barely makes enough to feed himself, let alone his wife and children. The lack of jobs and the extraordinary rise in food prices have hamstrung him. But he was most worried about what the crippled economy is doing to the youth of Iran, who he said are turning to crime and drugs if they can’t find work.
In Iran, appearance is everything. How you dress and wear your beard says a lot about your politics.
As I talked to Ahmed, who was dressed in Western-style clothes, another man looked on disapprovingly. He had a full dark black beard and was dressed in conservative black clothes. He was listening to everything Ahmed said and wanted to talk to us, although he declined to give us his name.
He said that people like Ahmed were making excuses and were lazy. He argued that the economy had become tougher, but no more so than the Iranian people were used to over the years. He blamed the U.S. for the bad economy, accusing President Barack Obama of unfairly trying to squeeze Iran. But he said that in the end, the rough economic times had taught Iran to be more self-reliant.
“We need to tighten our belts for now and weather this storm with the West as we have always done. And we will be victorious again,” he said.
NBC's Ali Arouzi reported from Istanbul, Turkey in April during the most recent meeting between world leaders and Iranian representatives to discuss Iran's nuclear intentions.
New sanctions' real impact
The most recent international sanctions have targeted Iran’s crude oil and banking sectors. In addition to harsh U.S. measures, 27 countries in the European Union agreed in January to ban Iranian oil imports –- giving countries until July 1 to terminate their deals. They also put a freeze on assets belonging to the Central Bank of Iran and a ban on trade in gold and other precious metals.
Anthony Cordesman, who holds the Burke chair in strategy at the Center for Strategic and International Studies and is a long-time Iran watcher, said that despite years of sanctions against Iran, the most recent ones have had the greatest impact –- partly because they target banking.
The banking sanctions “have had the most popular, or broad, impact. Right now Iran can’t even operate on the international clearinghouse.”
“I think that this is the first time that sanctions have really had a major bite. Up to now, they have all been fairly limited,” said Cordesman. “But beginning in November, and it’s just beginning to bite, you can’t bank internationally effectively, you can’t move money. You don’t have a stable conversion rate –- but the rial [Iran’s currency] is way down, so your savings are of very uncertain value unless you’ve invested in property. You don’t know what’s going to happen to your business. You have to be very cautious about how much money you can spend on a marriage for your children or their education.”
He added that we really won’t begin to see the full impact of the sanctions until summer, when they have all gone into effect. “So everyone knows it’s getting worse, but no one knows yet how serious.”
Vali Nasr, the incoming dean at the Johns Hopkins School of Advanced International Studies, explained how these sanctions differ from 30 years of sanctions that mostly targeted imports into Iran.
At schools, in shops, and on the streets of big cities and small towns, daily life plays out in Iran.
“The new set of sanctions targeting Iran’s oil industry, central bank, ability to conduct international financial transactions, are of a different nature largely because they are going after the government’s source of income –- the ability to sell oil or receive money for oil,” said Nasr. “So these have had an impact because they have caused extensive inflation inside Iran. They’ve caused the government to scrap a variety of projects, which has caused unemployment.
“There is no doubt that economic hardship has become much more pronounced. And there is on top of that a layer of uncertainty. So there is significant economic hardship that is hitting the lower rung of society and the Iranian middle class,” said Nasr.
Back in Tajrish Bazaar, Roya, a well-dressed woman in her 60s wearing a Hermes scarf for a hijab and carrying a Louis Vuitton bag, explained how even she is being hit by the economic uncertainty. While she is a wealthy Iranian living in the leafy suburbs of affluent North Tehran, she said her purchasing power has been halved by the struggling economy.
“Everything has doubled in price,” Roya said. “My son lives in Los Angeles, and it’s cheaper to go shopping there -- amazing. Things have become difficult for me even though I am among the better off Iranians. I can’t imagine how difficult it is for folks downtown.”
When I asked her what the solution was, she replied sarcastically, “That’s for the country’s economists to figure out.”
Close to the bone
For international relations analysts, like Cordesman and Nasr, getting reliable information on what’s going on in Iran is very difficult. Both analysts said that basically all of their information on the impact of the current sanctions is anecdotal.
“You have to rely on anecdotal information especially because the Iranian government does not have an interest in revealing how painful the sanctions are. They may admit that they are hurting, but they don’t want to put numbers out there,” said Nasr.
But it’s not all doom and gloom for the regime. President Mahmoud Ahmadinejad often touts during public events that Iran has a record $90 billion in foreign exchange reserves, as well as untold reserves of gold, silver and precious stones.
Even though experts estimate that Iran has seen a decline in sales of about 300, 000 barrels of oil per day as a result of the sanctions, this has been offset by a 15 percent rise in crude prices.
And the effect and pain of sanctions have not been distributed evenly. While blue-collar workers in downtown Tehran can expect to eat meat once a month only as a treat, North Tehran is awash with Mercedes and Porsche SUVs costing as much as $500,000 after the import tax has been paid.
Will the sanctions achieve goal?
So the question remains as to whether the sanctions will achieve their goal: curtailing Iran’s nuclear program.
“The sanctions have had an impact of getting Iran to the negotiating table. Iran came to Istanbul [the site of the latest diplomatic talks] with much more seriousness than in the past,” said Nasr.
But he added that the sanctions alone won’t be enough for Iran’s leaders to give up a program they have invested heavily in –- both financially and in terms of building the nuclear program as a point of national pride. “Just because the Iranian public dislikes this regime –- that does not mean that they dislike the nuclear program. They don’t see this as the regime’s nuclear program, they see it as Iran’s nuclear program,” said Nasr.
In order for the sanctions to work, Nasr explained, the U.S. and other parties at the table need to give something back -– otherwise it would just seem like Iran is surrendering to the West’s demands, not an easy sell at home.
“Until now, the whole approach has been stick-heavy and carrot-poor. And the sticks are very explicit and the carrots are vague. And maybe that was necessary to get their attention and to show that we meant business. But now going forward -– [the U.S.] can’t ask [Iran] for concrete concessions –- like stop this, stop that -– but not put concrete things on the table, like this sanction will be lifted. If all the concessions are on the Iranian side and what they get is just a promissory note, I don’t think it will fly.”
“End of the day, these two countries have not had a single thing they’ve agreed on or done together in the last 30 years. So you couldn’t expect them to actually be able to conclude a deal without some sort of reciprocal, trust-building, concrete steps going forward.”
Msnbc.com’s Petra Cahill contributed to this report.
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Leave a Comment:
The truly sad thing is that 90% of Iranians want to raise their families, work their jobs, and live a normal life. Just like the rest of us. It is the 10% extremists that first want to acquire power, and then use it for unscrupulous ends. I hope for the liberation of the Iranian people from this oppression.
Did you conduct a poll?
As long as this country is placing sanctions on Iran, this government better take a good long look in the mirror for self examination because we have become the most corrupted, arrogant country in the world........inciting terrorism, war and immorality. Hell, even our president "now" promotes homosexuality.
Lets restate that please!!!! When Obama took office he bowed to many countries so we do not stand as the most powerful country in AMERICA!!!!!
We as the US need to STAND TALL not bow to anyone!!!!!!!!!!!!!!!!!!!!!!
I long for the days when Republicans ran the economy into the ground in order to make the rich even richer, and gay people were treated like crap to satisfy the hypocrites who go to church and temple but hate the rest of the time. Yep, those were the good old days. Keep the alcohol, tobacco, and pharmaceutical industries profitable and ban anything the narrow minded, right wing nuts fear since it might make them insecure about their phony ideology. And don't forget: rape the Earth as much as possible since all life on Earth is only here to satisfy human lust and greed. That's the country TopDrum, and all the other USEFUL IDIOTS, want.
Don't tread on me useful idiots.
Just keep the hand outs flowing is that the answer?
And you are saying that the republicans are responsible for every problem? You are brainwashed Jimee. BTW Jimmy Johnson is a republican. You are so dumb!
Or it might actually be the posters name and you just made a fool of yourself.
Oh the Humanity - well the Iranian situation sounds like what is starting to happen to the US. If we lifted the sanctions, they (Iranians) might see some improvement - but as a whole the entire global economy is suffering
You fuc*ing Lib go hide in a HOLE!!!!
Wow, richard is angry today.
Read Further
Richard is blinded by some bizarre ideology that doesn't exist in either party. If he is representing the republicans - mercy where has his republican savior been for the last 80 years and if is he is conservative - I have news for him - there hasn't been a true conservative president since JFK
Ozzie is a troll...lol
Face up or F*uck off and suffer the wrath of the world!!!!!
We need a President who will STAND TALL and say we, we are the POWER of the WORLD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Richard, a good post, and I agree with you, and America will be a
Superpower among the nations with that president. The current issue of
"Newsweek" shows him with the Superman outfit. Wow!!!!!!!!!!!!!
Phyllis Kunz
If only the real people of the US could see the truth... We need a REAL PRESIDENT to lead us all!!!!!!!!!!!!!!!!!!!!Not Obama
"The current issue of
"Newsweek" shows him with the Superman outfit. Wow!!!!!!!!!!!!!"
No it doesn't. Haters gonna hate
http://www.latimes.com/news/nation/nationnow/la-na-nn-newsweek-obama-first-gay-president-20120514,0,5001068.story
"....That if the will of the majority cannot be trusted where there are diversified and
conflicting interests , it can be trusted nowhere."
You must be talking about Obama for He.He. he can not be TRUSTED!!!!!!!!!!!!!!!!!
In a recent article in the Louisville Courier Journal, President Obama defined
himself as a "not now" president. We need a "now" president. If not now, when?
And now is the time for all good men to come to the aid of their country, which
I typed over and over in a typing class decades ago and it is so revelant now.
The G8 Summit will be held next week in Chicago. If not now, when?
I myself am tired of being of the second thought!! I think Americans should be FIRST... Obama does not think so!!!!America FIRST!!!!!!!!!!!!!!!!
All I can say is what has OBAMA done for you??? Deeper in debt!!! More unemployed!!!! We as a Country need to move forward!!! Why do we put money out there for those who will not or wont work???Liberalism is the problem!!!! Get off your ass and go to work!! Oh yes there are plenty of jobs out there just no one to work them>>>> LMFAO
And then the blanket excuse "Bush's fault"
Richard, the historical reason for the wealthy to give money to the poor is to keep them from robbing them.
Free ride here LIBS... Free, Free for all LIBS.. Just check into our Obama LIB. Terminal and get your hand out!!!!
richard you show your true uneducated stupidity with all these unfounded rants do some research your all hot air
Get rid of the religious leaders that keep preaching hate and how they are going to destroy one group of people or the other in the name of their God.
If they would just quit threatening everyone in the world that doesn't agree with their perverted form of religion, all supposedly in the name of their Gods, things might be a whole lot better.
By the way, most religions are divisive to one degree or the other, so it's not just the Muslims I address.
Try living in peace for a change, then see if the free world doesn't open up more.
Just double the pay for Gov. Officals like they do in the U.S.
The people can starve.
Why is it that so many people think something is for free???? Hand outs are not free.. SS, Medicare is not free!!!!! We ALL, WE ALL, Pay into the SYSTEM!!!!!When the system goes broke then what??? When GOV, demands MORE Than you Make??? Oh yes demand will expand beyond your wildest dreams if Libs stay in Office.. 40% of income,60% of income???? So as I see it the Libs will DRAIN all $$$$$ from all citizens at any expense!!!! Hello are you listening???? I as a LIB need money to pay paul for he is without but you as a tax payer will suffer!!!!!!!!!!!!!!!!!!!!!!!
Richard....I paid into social security my whole life because I was told it would take care of me when I got older and couldn't work anymore. Besides,it was the law of the land and I didn't get a choice.Now your'e calling ME a FREELOADER??? I'm a veteran and shed blood for my country and you call me a freeloader???? I want to say this in a most respectful way...If you don't like America, get the fck out!! Quit Fcking complaining about liberals,it wont do any good. If you listen to the republcan speaker of the house,any attempts to better the situation for Americans is met with NO! Blame those a$$holes, not Obama for not getting enough done for the country.
The people you worship in washington are the ones holding recovery back,and are tratiors to our country. Shouldn't these people be trying to help americans,or even just the people who put them into office? What has John Boehner done for the folks in his home state?All they care about is POWER,and will screw the citizens of America to do it. You're a fool.
maybe this will shed alittle light as to why are country is where it is remember Obama came into office facing the worse recession in history and if you understand how politics works he cant spend any money thats what congress does yet this is what he faced Day One....
As President Barack Obama was celebrating his inauguration at various balls, top Republican lawmakers and strategists were conjuring up ways to submarine his presidency at a private dinner in Washington.
The guest list that night (which was just over 15 people in total) included Republican Reps. Eric Cantor (Va.), Kevin McCarthy (Calif.), Paul Ryan (Wis.), Pete Sessions (Texas), Jeb Hensarling (T...exas), Pete Hoekstra (Mich.) and Dan Lungren (Calif.), along with Republican Sens. Jim DeMint (S.C.), Jon Kyl (Ariz.), Tom Coburn (Okla.), John Ensign (Nev.) and Bob Corker (Tenn.). The non-lawmakers present included Newt Gingrich, several years removed from his presidential campaign, and Frank Luntz, the long-time Republican wordsmith. Notably absent were Senate Minority Leader Mitch McConnell (R-Ky.) and House Minority Leader John Boehner (R-Ohio) --
For several hours in the Caucus Room (a high-end D.C. establishment), the book "Do Not Ask What Good We Do: Inside the U.S. House of Representatives." It says they plotted out ways to not just win back political power, but to also put the brakes on Obama's legislative platform.
"If you act like you're the minority, you're going to stay in the minority," Draper quotes McCarthy as saying. "We've gotta challenge them on every single bill and challenge them on every single campaign."
If this is not treason or subversion, shouldn't most in the GOP be brought up on Ethics Violations for breaking their Congressional Oath of office? I mean, blocking jobs and blocking economic growth would be serious charges? How much more Evidence do we Need? How much more are We going to take?
Also if you're Republican, or just suffer from H.O.P.E. "Hating Our President Excessively" Keep in mind that, One Man Can NOT Change the World ALONE. And the POTUS is NOTHING without a Congress. Need more Evidence then the past 4 years? Keep Electing Idiots, it will be a Regular thing..
..
So I take it by your last sentence your voting for Obama?
Ultimate - Type all you want. Obama is an abject failure whom could not get anything done when he had a majority in both houses of Congress.
You libs and your ilk paid the price Nov. 2010 and Obama is out Nov. 2012
Goodbye
hey Both parties News Flash : he never had a majority it takes 60 to have a majority to overcome the party of NO against a filibuster and their obstructionists agenda, and the public is well aware of it so go to another country because its Obama in 2012...Clinton 2016..
wow - goodbye does not work. GTFO! Take the Blue Dogs with you. Also Reid - the Iron Wall of blockage. We are not stupid and we are sick of the Liberal Left's lies.
Again - GTFO.
You can thank our government for the volatile nature of Iran today.Thanks so much for wrecking this country on my behalf,you shouldn't have.No really you shouldn't have!
I would say its more religious reasons and the fact that the U.S. had formal relations with the Shah.
Didn't we install him?
I wouldnt say install, back may be a better term.
This story is the best news I've heard in a long time. Squeeze Iran until they pop. Then go in and ruin them when they are weaker. FK em.
I hear that arrogance in these statements. Passed down from genreration to generation here in America. Nowbody is winning in this situation. The citizens always suffer the most. They are forgotten. They will suffer the most. Sanctions don't work. The iranaian regime will just be more determined to blow us off planet. It's called revenge. Powerful force.
Greed is another problem deep rooted in America. We have had the techonolog for years and decades past to be independent of middle eastern oil. Yes, we still need oil derivatives for many of our goods. But for energy, hell, the short sighted and greedy oil lobbies will make sure we keep importing it. And don't give me this unfounded lame argument that environmentaists are too blame. Alaska and Canadian oil won't make a dent in our demand.
Iran is only another victim on the hit list with the exact same stories of nuclear weapons. All of these in order to continue benefiting the arms industry which the USA is the largest provider in the world. What is more surprising is that many are brainwashed with ease by the same demagogue politicians. All despite that the ongoing wars are actually bankrupting the nation with much of the budget going to the Pentagon and also high gas prices. Who ever is elected president should start taking care firstof his own society's needs before threatening weak nations.
Why are so many people in the US pulled to such dumb and asinine thoughts from Obama???? Who cares if he he is black or white..... We need a president who will STAND Tall FOR America WHICH oBAMA HAS NOT!!!
It would be extremely easy to make the same stupid comments about Romney and the Republican party. Your post has no substance.
Those in the European Union must be beside themselves with joy to hear this !
You all need to read up on Vietnam Veterans against the War organization and then compare notes with the Iraq - Afghanistan Veterans organization against the war. Truly, the saying: "Those who forget history are destined to repeat it." is proved to be a fact.
They saw/see it for what it was. Arrogant U.s. Administrations, both Democratic and Republican. Always getting us caught up in these foreign wars that serve no long standing purpose. Just kill and maim millions of innocents.
One side of it.
Sanctions will not deferr their agenda...the ones in charge are nutso. The common people in Iran will be the only ones to suffer but I doubt they care as long as their hatred is fed by nutjob. They will continue on the same path they have planned on until they meet their goals. There will be some sort of show down some day and probably not too far in the future. Just the nature of fanatics in Iran. They want Israel and the U.S. dead and gone.
look at the cost to our economy, the Muslims have put on our economy ! the cost of extra security and what not wold wide ! I hope they go to hell !
simple fix for the stone throwers
let the inspectors in
is that hard?
only if your lieing through your teeth
nuclear buuuuuuuuuuuuuuuurn