Mullahs Keep Fighting Us While Destroying Iran

against an official estimate of $45 billion. This sort of discrepancy typically occurs when capital flight is disguised as imports through fraudulent invoices and similar devices. A small current-account deficit would be of little concern for a nation with normal access to world capital markets, but Iran is unable to borrow.

There is indeed massive capital flight. As I wrote a couple of years ago, Gulf bankers told me that they can’t handle all the money pouring out of Iran. Wealthy Persians long since saw the doom of the Islamic Republic, and have been looting the country’s resources for their own gain.

They are printing money, further pauperizing Iranian workers–who are famously paid very late, if at all, as demonstrated by the ongoing demonstrations and strikes at government-owned companies–

The message Spengler delivers is that there is no way out of this war. Left to their own devices, the mullahs will destroy Iran, and, if they can, us as well.

clipped from pajamasmedia.com
I’m a big fan of “Spengler,” the elegant and cultured columnist for “Asia Times.” He’s just come out with a new think piece on Iran, which comes to the right conclusion (that is, the same one I have)
His central theme is that the Iranian economy is a basket case, that the country is facing hyperinflation, that there is a great lack of public confidence in the regime, and that the mullahs will (quite soon) have to choose between a Gorbachev-style surrender, or war. He thinks they have already chosen war. And he doesn’t think we can offer them anything that will produce Iran’s “giving up its nuclear ambitions and kenneling its puppies of war.”

He is certainly right about the economic diagnosis, which I have discussed at great length in “The Iranian Time Bomb.” He considers the very real possibility that Iran is running a current account deficit right now, despite the extraordinary runup in oil prices:

President Mahmud Ahmadinejad denied a report that Iran’s imports now exceed $60 billion,
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