SGM Metals LLC: Iranian Sanctions Designed to Crash Economy Through Inflation Like QE3

Aug. 9, 2012 - PRLog -- Infowars.com reports: [ Economic warfare against Iran is beginning to have an effect. On Monday, Iran’s Rial dropped around 5 percent against the dollar as Iran’s central bank announced further currency devaluation that will begin in ten days. In January, the country announced an 8 percent devaluation of the rial to 12,260 against the dollar. The rial has weathered a dramatic devaluation since the beginning of the year.

Iran is cut off from the international banking system & the rial has lost around half its value against the dollar on the so-called free market. The IMF admits the sanctions are designed to break the country & force it to run up an external deficit. The bankster loan sharking operation predicts Iran’s crude oil exports will dwindle to 2.0 million barrels per day this year from 2.5 million last year. Pressure applied by the sanctions will result in a current account surplus drop from 10.7 percent of gross domestic product to 6.6 percent.

Currency devaluation will undoubtedly feed inflation. Prices on consumer goods have risen at annual rates above 20 percent.

In July, the head of Iran’s Presidential Center for International Legal Affairs, Majid Jafarzadeh, said the government of Iran will take legal action against the US & the EU for imposing sanctions outside the framework of the UN Security Council. “The sanctions in the area of health & similar fields are a violation of human rights, & can be legally pursued,” Seyyed Hossein Naqavi Hosseini told Press TV.

The collapse of Iran’s currency & govt commodity subsidy cuts have resulted in steep price hikes. The price of gasoline has risen three-fold & the cost of gas has skyrocketed by 500%.

“The sanctions placed on the Iranian economy have ushered in runaway inflation, cuts in govt subsidies, & high unemployment.” John Glaser wrote on July 23. Mahmoud Bahmani, the governor of the Central Bank of Iran, said in July that economic sanctions are designed to destroy the country’s economy & represent a DECLARATION OF WAR.

The United States has waged economic war against Iran since the late 1970s. In 1983, under Reagan, the U.S. accused Iran of sponsoring terrorism & opposed international loans to the country. It imposed embargoes against Iranian imports & the sale of so-called “dual use” item. ]

The IMF admits the global currency war has produced economic sanctions against Iran  DESIGNED TO BREAK THE COUNTRY BY BREAKING THEIR ECONOMY! This is done by implementing policies that are designed to DEVALUE their currency & break the nation through INTENTIONAL INFLATIONARY SABOTAGE. This is economic warfare & is admittedly an ACT OF WAR when you in effect exercise ECONOMIC SABOTAGE by intentionally devaluing the currency of the region. The goal is to break the backs of the citizens w/in the region by making it impossible for them to feed their families which they hope will create civil unrest & force the Iranian govt to bend to the will of the American foreign policy. The concept of economic warfare & the consequences that come from these specific actions implemented to engineer the Iranian Endgame are worrisome as they parallel the FED’s policies at home in America.

Now lets consider for a moment that the prime objective of this economic warfare is to block their ability to export their main product which is oil. When you block or bully a nation from exercising free commerce in regards to their main export you are in effect stripping them of their ability to work & produce in order to feed the nation. But that isn’t enough according to our govt. as they believe they also need to forcibly devalue the nations currency & break the individual citizens backs by driving consumer goods to astronomically highs levels. As their budgets thin out at a quicker & quicker rate due to inflation they will exhaust their life savings to simply feed their families at a faster rate. This wouldn’t be necessarily a dangerous proposition if the citizens could go back to work & earn more money to offset the increased cost of living the US state dept. feels they deserve but if the nation is blocked from exporting their main export how does a citizen go back to work to earn more money? They don’t & that unfortunately is the point of economic sabotage & war. (shutting down their ability to work is similar to outsourcing our nations manufacturing jobs as we cant earn a living to survive)

Now lets apply this scenario to the current dilemma we have here in America as it is eerily similar & only differs in the reason for its manifestation. Here in the US we are told the failed banks who have enriched themselves for decades making dangerous overleveraged bets on derivatives had to be bailed out to keep the global banking system from collapsing. Not one single banker has been indicted for this abuse of the system but we have been told we need to print tens of trillions in new monopoly money to prop these gamblers up. This then spread to propping up entire industries, insurance companies, commercial banks, investment banks, auto manufacturers, & apparently hundreds of foreign European banks as well! This has created the same scenario here at home in regards to dollar if you think about it. The same way that Iran is forced to devalue their currency to try & make ends meet our dollar at home has been willingly & intentionally devalued as a result of the endless money printing by the FED to prop up these banks & industries. So if the intentionally designed consequences of the Iranian sanctions will be to break the consumers & create bottom up pressure to break the govt.s will, what do you think will be the outcome here at home? You guessed it!

So if our foreign policy of breaking the will of foreign govt.s by destroying their economy matches the exact results from the solutions to our collapsing economy do you think you may want to prepare for the shock to the dollar? They are bragging that they will be able to break Iran economically while assuring you there is nothing to worry about at home while we go down the same path? The hubris of our ‘leaders’ has blinded them from realizing they are telling you what is coming here at home. Considering the fact that these endless wars in the middle east have driven us farther down the deficit hole, ask yourself why is our nation all but master minding a brand new war to further break our economy when we cant pay for the ones we are still stuck in & for what reason again did these wars begin . . . ? Oh yeah, terrorism, but wait a minute the President & DHS announced 3 months ago that we have successfully broken Al Queda after killing Osama, again, & that the global war on terror was officially over! So why is the DHS ordering hundreds of millions of rounds of hollow point ammo, thousands of armored & bullet proof mobile check points, hundreds of MRAP military vehicles used in the Afghanistan for here at home, millions of dollars in riot gear for America & expanding the "DHS annoyance zone" from the airports to train/bus stations & shopping malls all around the nation? Oh yeah, they announced in the same press conference that their target has shifted from Muslim extremists to domestic terrorism which they identified as military veterans, & those who are ‘respectful of individual liberties & are concerned with the ever growing size of the federal govt. & its deficits’ (sounds like the govt. isexpecting the Tea Party to take to the streets again?). Sounds like they may be expecting the same civil unrest from intentionally sabotaging the currency in Iran to happen here in America as a result of the dollar devaluation that is growing from the bailouts & QE programs? By the way, the FED should be unveiling QE3 soon so you might want to get your affairs in order as we are getting ready for a wild ride. Remember it is a far better strategy to PREPARE your portfolio than it is to attempt to REPAIR your portfolio once the damage has begun. Tick, tock.