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The Iranian government is playing this the wrong way. Instead of rationing, it should engage in the same temporary overproduction the Shah used, in order to delay the crisis until the US or Israel bombs. Then it could do anything and call it a necessary wartime sacrifice. The US would then wait it out if it were smart, but it's not, and Bush's bombing instincts would trump elementary common sense.

Oh well. If Ahmadinejad wants to get toppled before the US has the chance to lob missiles at him, it's all for the best.

by Alon (alon_levy1@yahoo.com) on Tue Feb 13th, 2007 at 09:59:48 AM EST
Do you realise quite what a managerial vacuum there is in Iran these days?

There is as much chance of Iran jacking up their crude oil production to pre-Shah levels as there is of them making nuclear weapons within 5 years ie vanishingly small.

The country is paralysed in terms of making decisions and practically unable to implement the few they do make: that's the reality I've been on the wrong end of for the last six years, since convincing them of the requirement for a Middle East crude oil price benchmark price aka the mythical "Iran Oil Bourse" project.

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Tue Feb 13th, 2007 at 07:47:30 PM EST
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