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An interesting thing is that Mehdi Karroubi is not alone in his campaign photo (see above). He is pictured with the former mayor of Tehran, Gholamhossein Karbasschi's in the circle just behind him. Perhaps the “change” slogan is not the only thing that Karroubi borrowed from the U.S. election. Has he created himself an unofficial running mate?

The morning after Iran's June 12 presidential election, Iranians booted up their computers to find Fars News, the online mouthpiece of the Islamic Republic's security apparatus, heralding the dawn of a "third revolution." Many an ordinary Iranian, and many a Western pundit, had already adopted such dramatic language to describe the burgeoning street demonstrations against the declaration by the Ministry of Interior that Mahmoud Ahmadinejad, the sitting president, had received 64 percent of the vote to 34 percent for his main challenger, Mir Hossein Mousavi. But the editors of Fars News were referring neither to the protests, as were the people in the streets, nor to the prospect that the unrest might topple the Islamic Republic, as were some of the more wistful commentators. Rather, the editors were labeling the radical realignment of Iranian politics that they wish for. This realignment would complete the removal of the old guard, as did the "first" revolution of 1978-1979, and consolidate the rule of inflexible hardliners, as did the "second revolution" symbolized by the US Embassy takeover of 1979.

The number of deeply conservative voters, of the sort who back Ahmadinejad, has not exceeded 12 percent of the electorate since 1993. True, in 2003, these voters seized control of the city councils of major cities, not because of a surge in the popularity of their agenda, but because of the widespread abstention of those who had lost hope in the effectiveness of reformist candidates.

But instead greater mass participation in the local elections of 2007 cost the hardliners their grip upon local councils. In Tehran, Ahmadinejad's men lost two thirds of their seats and had to share power with reformists and moderate conservatives.

Karroubi was certainly not the first senior figure to protest Mojtaba Khamenei’s intervention on behalf of the extreme right. Before him, Ali Akbar Nategh Nouri, another former Speaker of the Majles and a close aid to Ayatollah Khamenei, had quietly protested the younger Khamenei’s meddling in the political process. (Nategh Nouri, a mid-rank cleric, heads the Supreme Leader’s Office of Inspection)

In the last year before the 1979 Revolution, Ayatollah Khamenei and two other clerics, Abbas Vaez Tabasi and Sayyed Abdolkarim Hasheminejad, formed a sort of leadership ring that led most of the demonstrations and political activities against the Shah in Mashhad and the Khorasan province, which was Iran’s largest province at that time.

Vaez Tabasi is now a powerful cleric who runs the shrine of Imam Reza (the Shiites’ 8th Imam), in Mashhad. He is believed to be a Rafsanjani ally.

Iran’s economy is facing at least three large imbalances. The most acute is in the balance of payments.

Already some candidates are whispering that they favor lowering the exchange rate (increasing the value of the rial relative to other currencies) in order to fight inflation. These candidates would lead voters to believe that they can have their cake and eat it too

In these times of frozen international credit markets and economic sanctions against Iran, the second option of foreign borrowing is less likely than it was in the 1990s, but the risk of state-owned enterprises racking up foreign debts using short-term credit from eager overseas suppliers is not altogether gone. This is precisely what they did in the early 1990s, which deepened the post-oil boom slump and halted Rafsanjani’s reforms. Anticipating devaluation and government bailout, these enterprises incurred $10 billion in new short term debt alone between 1991 and 1993. Their actions forced the highly anticipated devaluation of the rial by a factor of 27 during the same period and forced the government to accept this debt as its own.

During a campaign gathering in Tehran, the hardline head of Iran's judiciary, Ayatollah Mahmoud Hashemi Shahroudi, threw his support to Mr. Ahmadinejad, as well.

Karroubi has gained some notoriety among the four candidates for proposing a novel economic plan which would grant shares in Iran's oil wealth to all Iranian citizens.

6.15pm: Iranian filmmakers Marjane Satrapi and Mohsen Makhmalbaf just held a press conference in Brussels to say they have a document proving election fraud, Adnkronos news agency reports.The document, seen here, says that Mousavi won the election with 19m votes, with cleric Mehdi Karroubi coming in second and Ahmadinejad coming in third. Satrapi and Makhmalbaf said the document had come from the Iranian electoral commission, and is dated June 13, the day after the election.

Saeed reports that Mousavi's wife Zahra Rahnavard today joined injured students at Tehran University, and condemened violence by the government and riot police.

A friend of the Guardian in Tehran writes that her Gmail account has been filtered, and that her internet service provider said it has been ordered to cut all emails, messaging software and many websites, especially foreign news outlets.

Karroubi who has faulted the Secretary of Iran's Guardian Council Ayatollah Ahmad Jannati for canvassing support for President Ahmadinejad, urged the council to comply by its supervisory obligations.

criticized the recent statements of the IRGC Chief-Commander, Major General Mohammad-Ali Jafari about the division of Basij into two segments -- military and non-military -- the second which has reportedly been allowed to be involved in political activities.

I think that both Mr. [Mehdi] Karroubi and Mr. [Mohammad] Khatami, when he was running, and the new entrant, Mr. [Mir-Hossein] Mussavi, have not been very specific about what is wrong with the economy and how they would fix it. When asked by an interviewer, Mr. Mussavi singled out the dismantling of the Management and Planning Organization as the major problem. But it is way down on the list of problems that I would consider serious.