Iran to reform its banking system

You know what I think, sanctions are an inefficient weapon to use anyway but if the country is corrupt and the economy is inefficient, there would be short term pain. But what I found very funny was that President Ahmadinejad is telling his deputy about the proper functioning of banks in an economy. The reason why I find this funny is because I think the President is totally economically illiterate and a dangerous populist to boot. He goes about making spending commitments without reference to funding, he is busy pushing banks to lend more while not worrying about demand curves or inflation or money supply, he is busy cocking a snook at the world with his nuclear weapons programme while not worrying about his economy, its imports/exports, he is busy talking about the poor and increasing subsidies while rationing petrol (and subsidising it at the same time!). And then he has the unmitigated cheek to tell others on how a bank can help create a flourishing economy? D'oh!!! But here's a prediction, in 6 months to an year, despite his lofty wishes and hard directives, the Iranian Banking system will be in far dire straits than it is right now. And all because of him

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Iran to reform its banking system
Sat, 04 Aug 2007 09:54:38
Source: PressTV
Iran's President Mahmoud Ahmadinejad
Iran's President has ordered his first deputy to establish a working group to study ways to revolutionize the country's banking system.

According to Iran's official presidential website, President Ahmadinejad wrote a letter to his first deputy, Parviz Davoudi, explaining the effect banks have on the economy of a country. He believes banks in Iran need to undergo major changes for them to be able to help create a flourishing economy.

In his letter, Ahmadinejad expressed hopes that the committee will carry out plans to achieve the short term objectives of the working group in the best possible way.

Fair distribution of loans and grants and also promoting national interests by financing development projects are the major missions of the group.

Iran's Finance and Economy Minister, the head of Iran's Central Bank and CEO's of both governmental and private banks will attend the committee's sessions.

Ahmadinejad called on the committee to provide a full report of its activities and achievements in the next two months.