Warning: call_user_func_array() [function.call-user-func-array]: First argument is expected to be a valid callback, '' was given in /home/content/50/8762750/html/wp-includes/class-wp-hook.php on line 298

ALL IS NOT WELL IN IRAN

ALL IS NOT WELL IN IRAN

IRAN HAS LEAKED THE BEGINNING OF GASOLINE RATIONING AND A GASOLINE PRICE RISE OF 25% TO THE PRESS IN THE WEST

Informed sources, including the Stratfor Consulting Group, believe that the action was taken to undermine the popularity of President Ahmadinejad among the Iranian public.

Many elements in the Iranian government, including the military, Ayatollah Khameni, the parliament, and other power centers believe that he has gone too far with his rhetoric and actions toward the U.S. and the West.

In essence, this action is the result of a struggle for control between the pragmatic conservatives, represented by the above groups and the ultra conservatives headed by Ahmadinejad and his allies.

This announcement is widely believed to be a herald of more instability in Iran.  Some believe that the price increases and rationing could lead to riots and other problems for the Ahmadinejad regime.  I have previously mentioned in memos that all was not well within the Iranian economy, and this news will be badly received by the public at large, in our opinion.

If riots occur, we can reasonably expect a higher risk premium for oil and higher oil prices.  This will lead to more inflation pressures in the world.  More inflation pressures mean higher interest rates, higher commodity prices and higher gold prices.


These articles are for informational purposes only and are not intended to be a solicitation, offering or recommendation of any security.  Guild Investment Management does not represent that the securities, products, or services discussed in this web site are suitable or appropriate for all investors.   Any market analysis constitutes an opinion that may not be correct.  Readers must make their own independent investment decisions.
The information in this article is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Guild Investment Management to any registration requirement within such jurisdiction or country.
Any opinions expressed herein, are subject to change without notice.  In addition, there are many market, currency, economic, political, business, technological and other risks that are beyond our control.  We make reasonable efforts to provide accurate content in these articles; however, some content and some of the assumptions, formulas, algorithms and other data that impact the content may be inaccurate, outdated, or otherwise inappropriate.  In addition, we may have conflicts of interest with respect to any investments mentioned.  Our principals and our clients may hold positions in investments mentioned on the site or we may take positions contrary to investments mentioned.
Guild’s current and past market commentaries are protected by copyright.  Apart from any use permitted under the Copyright Act, you must not copy, frame, modify, transmit or distribute the market commentaries, without seeking the prior consent of Guild.