The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), reported that the Iranian economic structure is crumbling apart due to the regime’s disastrous policies that only benefit ultimately those affiliated with the ruling theocratic. The huge amount of liquidity, which is not in line with Iran’s production and export rate, is one of the key reasons for Iran’s increasing rate of inflation and subsequent rising prices.
“The money market’s situation has become alarming over the past three years. The liquidity is constantly increasing in the shadow of the growth of the increasing liquidity coefficient without any change in the country’s production rate,” on Wednesday, the state-run Jahan-e Sanat paper published in an article.
“The root of rising liquidity could be found in the increase of the government’s spending exceeding its revenues. Thus, the banknote printing from the increasing of foreign assets of the central bank or the issuance of treasury documents could be considered the source of government for compensating its budget deficit,” Jahan-e Sanat continues.
“The government’s current expenses are estimated to be nine quadrillion tomans this year. The government’s tax revenue will not even come close to covering one-third of this cost. As a result, when spending outpaces receipts, the government prints banknotes issues Treasury bills, or borrows from the central bank.” Jahan-e Sanat adds to the mix.
According to Jahan-e Sanat, as long as the government follows the same process, liquidity and inflation will “increase rapidly.”
“From 2018 to 2020, the volume of liquidity increased from 1.6 quadrillion tomans to a ridiculous amount of 3.5 quadrillion tomans. In the first half of the [Persian year of] 1400, the country’s liquidity grew uncontrollably,” Hamdeli wrote on June 9.
“There were many developments from January 2018 until a month or two ago, when we had a sharp rise in the price of the currency. Official judgments have permanently changed people’s life, which has had a negative impact.
Inflation is, of course, one of the causes of rising poverty. We are witnessing a severe rise in poverty in society as inflation rises because impoverished people cannot adjust to growing inflation and want higher wages,” Hossain Raghfar, one of the regime’s economists, told the state-run Quds-Online on the same day.
The Iranian regime is wasting the country’s productive capacity and natural resources’ revenues on terrorism, the development of weapons of mass destruction, and the distribution of money among its corrupt officials. As a result, the expenses must logically exceed Iran’s revenues. Meanwhile, the Iranian people are suffering from poverty and rising prices.
The regime’s corruption is indeed one of the grounds of Iran’s economic woes. Iran’s economy is controlled by the regime’s Revolutionary Guards (IRGC) and financial entities linked to Supreme Leader Ali Khamenei. In this spiral of corruption, capital flows, leaving people in poverty.
On Wednesday, the Quds-Online stated that “powerful economic institutions or organizations, created under the guise of preserving public interests, are abusing public facilities and governmental opportunities for embezzlement.”
The IRGC plunders Iran’s national resources and uses them to pay terrorist proxies overseas and oppressive forces within the country. Despite this, it claims to be providing security to the public.
“The monopolistic and powerful [IRGC] tries to portray itself as the protector of society’s security while avoiding accountability for its actions,” Quds-Online added.
The IRGC, its front organizations, and the institutions overseen by Khamenei are stealing people’s wealth and leaving them in misery.
The only option to address Iran’s economic crises and help its people, as the Iranian Resistance has long stated, is to overthrow the regime and dissolve groups like the IRGC.