[yovbQVpD]

From ZeroHedge:

Hyperinflation Comes To Iran

snip

And so the opportunity cost for the Ahmedinejad regime to preserve its status quo gradually grinds to zero, as the entire economy implodes (courtesy of a few strategic financially isolating decisions) making further escalation virtually inevitable, in a 100% replica of the US-planned Japanese escalation that led to the Pearl Harbor attack, and gave America the green light to enter the war.

[johnteriz]

It's been quite clear that this has been coming for some time, as if pre-planned, not reliant on which party controls Congress or the White House. Be the observer.
AT

[yovbQVpD]

As the Iranian currency slides, the local government censors text messages containing the word "dollar".

Amid Currency Slide, Iranians Say 'Dollar' Texts Blocked

UPDATE 1-Iran rial slides, 'dollar' text messages appear blocked

[spiveker]

A friend tells me that the people in Iran have adopted a code word for 'dollar' to thwart the censors: Toilet-Paper.

[yovbQVpD]

Here's the trigger


Cuban Missile Crisis, the Sequel; $3,000 Gold Possible

snip

Posted by Dominique de Kevelioc de Bailleul on Jan 09, 2012

In what appears as swift retaliation by Iran against U.S.-led economic sanctions imposed on the Persian Gulf state, suddenly Iran says it will no longer accept the U.S. dollar as payment for its oil shipments to India, Japan and China.

In addition, bilateral trade between Iran and Russia will break from the dollar for settlement in favor of Iranian rial and Russian rubles, according to Iran’s state-run Fars news agency.

But unlike a similarly bold move taken on Oct. 30, 2000, (effective Nov. 6) by Saddam Hussein to rid Iraq of the U.S. dollar as payment for Iraqi oil, Iran asserts the new arrangement to drop the dollar was Russia’s idea.

“The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization,” according to Bloomberg.

[yovbQVpD]

Good article, c/o Le Metropole

Iran Cracks Down on Dollar Trades

Police Sent to Monitor Black Market as Iranians Smart Over Dropping Rial, Inflation; Sanctions Threat Set Off Latest Fall

Iran's rial currency has declined 40% to 55% against the dollar on the black market since December. Iranian inflation, meanwhile, now exceeds 20% a month, according to the Central Bank.

The rial was changing hands at 16,000 to 17,000 in recent days, down from 11,000 to 12,000 in December.

"The economic situation in Iran is a disaster. Trade is at a minimum, and everyone is in a state of panic," said Abdullah, a 47-year-old merchant in Tehran's grand bazaar. ... "We are all slowly going bankrupt."

[PetraCromlich]

This is why it would take a long time for the US Dollar to fail, because all of the competing fiat has to fail first, including the Euro, the Japanese Yen, and the British Pound.

You have to understand, the USD can strengthen even as it loses domestic purchasing power. It has no paper rival.

[yovbQVpD]

This is why it would take a long time for the US Dollar to fail, because all of the competing fiat has to fail first, including the Euro, the Japanese Yen, and the British Pound.

You have to understand, the USD can strengthen even as it loses domestic purchasing power. It has no paper rival.

But Sparky, therein lies the rub:

The dollar's value comes from it's performance verses the other currencies it's weighed against - EUR, JPY, GBP, CAD, CHF and SEK. I think the EUR is almost 50% or so.

So as the EUR gets printed to oblivion $10 TRILLION Liquidity Injection Coming? , the US FED is stuck between a rock and a hard place - either the dollar gains tremendously versus the Euro, which will cause tremendous havok, or it inflates along side it and both devalue at a steady pace.

Either way, IMO, we're screwed.

This is not including any potential black swans such as BRICS discontinuing the petrodollar and major war breaks out.

Something is going to have to give - this cannot last for more than a few years longer at this pace.

[PetraCromlich]

Yeah, DMac, I'm not saying the situation is good. I'm saying the USD could be trashed, but survive just fine as a currency for a long time, cuz it's "value" in terms of fiat is relative.