SWIFT sanctions may lead to Iran's economic collapse

[jimmy olsen]

 So, how will Iran react if their economy collapses?


http://www.ynetnews.com/articles/0,7340,L-4204264,00.html

Steinitz: SWIFT sanctions may lead to Iran's economic collapse

Finance minister says disconnecting Tehran from world's biggest electronic payment system will 'weaken its resilience'

Yair Altman
Published:    03.18.12, 12:42

The decision by the world's biggest electronic payment system to cut off Iranian banks blacklisted by the European Union constitutes a "major blow to the Iranian economy," Finance Minister Yuval Steinitz said Sunday.


The move is aimed at discouraging Iran from developing nuclear weapons.



The minister said disconnecting Iran from SWIFT, which facilitates the bulk of global cross-border payments, will make it much more difficult for the Islamic Republic to export oil and import other products.


Being disconnected from SWIFT's messaging system would force Iran to accept only cash or gold, "and when we are dealing with billions this is impossible," said Steinitz.


Speaking before the weekly cabinet meeting, the finance minister said the move could lead to the collapse of Iran's economy. "Is it enough? I don't know. Will it significantly weaken their resilience? This is, undoubtedly, a dramatic step," he stated.


Minister Yuli Edelstein said the government was pleased with SWIFT's decision and was certain it would hurt Iran's economy. "I hope it will result in a decision by the Iranian regime to halt its nuclear program," he said.


The US also welcomed the move, saying it was part of the growing sanctions on Iran and its global isolation.



White House Spokesman Jay Carney said Thursday that SWIFT's decision "is part of the process of isolating Iran and making clear to the Iranian leadership that there is a price to pay for their intransigence, their refusal to abide by their international obligations, their refusal to adequately reassure the international community that its nuclear intentions are peaceful and non-weapon-related," he said.

[KRonn]

Well, they have terrorists all over the world, apparently just waiting for the word to strike. So I'd think they could retaliate with attacks. But I figure they won't resort to that as it won't help their economy as they come under even tougher sanctions or military strikes in response. But my guess is that they will retaliate if Israel and/or others attack their nuke sites and I assume they have a sizeable capacity to do so.

[Razgovory]

It's a shame Jonathan Swift has been dead for over two centuries.  We may have had a chance.

[Valmy]

Well, they have terrorists all over the world, apparently just waiting for the word to strike.

Time to avoid the local convenient stores.

Seriously though Iran is a bunch of incompetent morons.  That is why they are in this position in the first place.  Coordinating tons of freelancers ready to sacrifice themselves?  Yeah right.  They may give money and weapons to some groups but they do not have a network of fanatical super terrorists ready to die for their national interests.

[Josquius]

Its not all good news.
I mean yey, the bad guys suffer and have their evil building efforts scuppered.
But....it will cause the Iranian middle class- quite westernised and modern folks who don't agree with the regime at all- to suffer, and could set back their progress a long way. So really messing with Iran's evolution towards being a decent non-crazy place.

[Valmy]

But....it will hurt the Iranian middle class- quite westernised and modern folks who don't agree with the regime at all- to suffer, and could set back their progress a long way.

The Iranians are great folks and it sucks what has happened to them, even if it was largely self-inflicted.  Even so I cannot help but feel that my Grandparents generation was somehow distantly responsible.

[The Brain]

Its not all good news.
I mean yey, the bad guys suffer and have their evil building efforts scuppered.
But....it will cause the Iranian middle class- quite westernised and modern folks who don't agree with the regime at all- to suffer, and could set back their progress a long way. So really messing with Iran's evolution towards being a decent non-crazy place.

I wouldn't put any faith in the Silent Minority.

[Tamas]

Good idea. Economic sanctions have toppled many a dictators, with no need of military intervention. Milosevics, Qadaffi, the North Koreans, Assad...

[Eddie Teach]

Louis XVI was done in by a bad economy. So was Mubarak.

[Martinus]

Good idea. Economic sanctions have toppled many a dictators, with no need of military intervention. Milosevics, Qadaffi, the North Koreans, Assad...

I see what you did there.

[Martinus]

What if they were SLOW sanctions, hmm? 

[Zanza]

So was Mubarak.

That was clearly just a change of the figurehead. One general was replaced by another.

[Eddie Teach]

Well, if the replacement Ayatollah shitcanned the nuclear program that would be perfectly fine.

[Martinus]

Yeah, I don't think the object of the sanctions would be to replace the regime but to cut off its funding for the nuclear programme. And that's not really comparable to the likes of North Korea, which is not as reliant on commodity exports as Iran is.

[CountDeMoney]

So really messing with Iran's evolution towards being a decent non-crazy place.