Anyone seen how the USD has lost value over the years? But Iran's situation is on another level. From being 1.25% of the USD in 1980 to a mere 0.000085% now. Crazy, right? It went from 80 rials for a dollar to 1.15 million! And with over 35% inflation, things are just out of control.
I just tried to say Quintillion for the first time. Had to look up how many zeros that has. 10¹⁸ in the US and 10³⁰ in the UK. I mean, I've only seen such massive numbers in physics. But seriously, how does a country let things get this bad? Their citizens are suffering while the government spends on nuclear stuff.
Lol, totally reminds me of Zimbabwe. We bash the dollar or euro for devaluation, but many currencies are in much worse shape. I mean, look at the Swiss franc, it's one of the few exceptions. That’s why I think the US stablecoin will take off. Demand will soar from countries with high inflation.
People will say sanctions are why the rial is tanking, but nah. A country with such high currency denominations? That's just corruption showing. When they released the 100,000 rial note in 2010, what were they thinking? The currency was already tanking, yet they just made higher notes instead of fixing the issue.
This is what happens to all fiat currencies eventually. Iran's just the latest example. Sure, laugh at the rial today, but remember, no fiat lasts forever, not even the USD. Gold and Bitcoin are the real deal. Just look at how gold doubled against the USD in a couple of years.
So the rial's basically just a paper symbol now, right? It’s losing its function as a currency. And isn’t Iran part of BRICS? What benefits are they getting from that? A friend of mine paid 1.2 million rials for a night in a hostel. I was shocked at how low that exchange rate is.
This reminds me of the Weimar Republic in Germany. Bread prices skyrocketed during that time, and it’s a clear example of continuous money printing. What’s happening in Iran could very well happen to other fiat currencies too. We need to turn to gold and Bitcoin.
Zimbabweans are used to these high numbers. Their currency has insane amounts in one note, and it barely buys anything. Cutting zeros is just a trick to make it seem like the economy is stable. It doesn’t fix the real problems.
Iran's been in BRICS for just a year, and they’re not getting much from it. Their uncontrolled inflation and corruption are making things worse. It’s kinda like Venezuela, except Iran still has some geopolitical power to trade.
Yeah, sanctions made things worse but they’re not the root cause. Bad economic policies and corruption are the real issues. Printing higher denomination notes is just a way for corrupt leaders to steal. They need to balance their budget instead.
But the EU and US are gonna face their own doom soon. Ever seen those self-moderated threads? The leaders there just blame others for their failures. Like blaming Israel or the US for everything. It’s wild how some people still play along.
with numbers, the answer is a big fat NO. There's this guy Saylor who said the first country to print money to buy Bitcoin wins. I wouldn’t be surprised if debasement keeps happening, even in the EU.
For those saying sanctions don’t work, look at Iran's economy. If it wasn't for China backing them, it would be worse. I feel for the average Iranian who just wants a normal life but can’t stand against their awful leaders.
Iran's redenomination is just a band-aid on a bullet wound. They’re trying to cope with severe inflation, influenced by both local and external pressures. It's a psychological move to win back trust.
The leaders know what they're doing. They just create scapegoats to distract from their own greed. It’s easier to blame the US than to admit they’re stealing from their own people. No way a top oil producer should face such poverty.
In Iran, you buy ice cream for x rials in the morning, cone in the afternoon, and by evening, you can’t even get anything for those rials. Comparing 2-5% inflation to 120% over years is just laughable.
Back in the day, $1 was just 89 naira, now it’s over 1,460. Politics and mixed economy interests just crumble the value of currencies. I wonder what the US economy looked like when the naira was strong.
They’re in totally different situations. Japan surrendered and became developed, but Iran sees itself as a nation with a mission. They won’t just give up for promises of prosperity.
Imagine waking up tomorrow and hearing your currency dropped 40,000 points against the USD. The rial cut is coming, but it won’t stop rising food prices. And oh, the biggest private bank turned out to be a Ponzi scheme.
They’re a long way from Zimbabwe’s hundred trillion dollar note, but Iran’s economy is still a wreck. With sanctions, it’s impressive they maintain any economy. They’re mainly reliant on local trade and oil deals with China.