Posts Tagged ‘Iran Economy’

Iran Economy,Khamenei,Rial plummeted

Poverty in Iran

Khamenei Advises Regime Officials Against Expressing Pessimism About the Iranian Economy

Khamenei's remarks on how to minimize the impacts of the dire economic conditions

A poor man living in empty graves in one of Tehran’s grave yards.

In the first week of September, Iran’s Supreme Leader Ali Khamenei addressed the regime’s Assembly of Experts, asking them to lie about the dire economic condition in order to escape the public’s reaction. He talked about how officials should handle the economic crisis and warned that the plight of the Iranian people should not be overstated!

Understated or Overstated!

Khamenei used his address to call on senior officials and remind them that pessimism should be kept to a minimum publicly. On the Supreme Leader’s official website, the statement blamed exaggeration about the economic crisis for intensifying “the anxiety of public opinion”.

The statement also said exaggeration “causes the pessimism virus to spread. It is not correct to speak in a way that the audience is terrified and thinks that all is lost”.

It appears that Khamenei would rather see the dissemination of lies and falsehood, than accurate reporting about the dismal state of the Iranian economy.

An Economy in Disarray

The economic crisis in Iran has been intensifying for months. The value of the rial plummeted after the US reintroduced sanctions against the Iranian regime.

Following the United States’ withdrawal of the 2015 Iran nuclear agreement, the Trump administration made it clear that any company doing business with Iranian regime would lose access to the US market. Faced with the choice between Iran and the US, many companies and multinationals cut their business ties with Iran.

The Iranian regime attempted to mitigate the losses by appealing to European governments to stop the international exodus from Iranian markets.

But Rouhani and Khamenei’s attempts did not yield results. European nations had no desire to enter the dispute on the side of the Iranian regime and risk their own access to the American market.

However, the economy was already in turmoil. Years of economic mismanagement at the hands of the mullahs and systemic corruption has hollowed out the Iranian economy and the country’s financial institutions.

All across Iran, livelihoods are being lost. Goods are becoming more expensive, and poverty levels are soaring. So far, the government’s attempts to stop the free-fall of the rial have proven ineffective.

Since the economic crisis began, the regime officials have done everything they can to ignore the problem or pass the blame onto another party. They have attempted to lay the blame on the activities of foreign powers, but the mullahs only have themselves to blame.

The regime has systematically funneled billions of dollars out of Iran, supporting militia groups and terrorist organisations across the Middle East. This money could have gone towards alleviating the economic pressure of the Iranian people.

Regime officials have ignored pressing social and environmental issue plaguing Iran for years. They have been content to divert money into their own pockets at the expense of the population.

During his speech, Khamenei said, “no government can go on without the support and trust of the people”. He knows that the mullahs’ day of reckoning is coming. All that remains to be seen for how long the regime can hold on.

Staff Writer

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Iran Economy,Iran Protests,Iran Uprising,MEK,Mujahedin-e Khalq,PMOI,Regime Change,regime infighting

Infighting at Iranian regime's parliament

Shake Ups in Parliament Won’t Fix Corrupt Regime

Infighting at Iranian regime's parliament

The Iranian regime’s parliament infighting as a result of the growing discontent against the regime and its corrupt leaders.

A wave of impeachments is overtaking the Iranian regime’s parliament, as tensions among the regime leadership have reached a boiling point.

Minister of Work Ali Rabi-ee was dismissed three weeks ago. The Ministers of Industry and Education are set to be impeached on September 11th. Cabinet Minister Masoud Karbasian is going to be sacked by next month.

On August 28th, President Hassan Rouhani was summoned to Parliament to answer questions about Iran’s economy. Rouhani admitting the Iranian people’s discontent towards the regime said: “Economic issues are of determinative nature. However, what’s more important now is that many people have lost their faith in the future of our Islamic Republic and are doubting its power.” Rouhani’s visit to Parliament came after months of squabbling and power plays between parties.

Government officials in trying to put the blame on others have become increasingly willing to acknowledge that Iran’s problems stem from decades of corruption and mismanagement by the mullahs and not from the sanctions by the United States.

Member of Parliament Qasem Mirzaei Nikou said: “The fraudulent ways of money-making runs in all branches of the government. Their corruption is endless, much like a seven-headed dragon.”

The reality is that the impeachments will not solve Iran’s economic problems because the system is rotten to its core. Iranian regime’s economic policy is not based on the rule of law; it is based on greed and corruption. Even MPs agree that replacing the cabinet will not solve these problems.

On August 26th, Elias Hazrati another regime MP, commented on this issue: “We are in the month of August now. Sanctions won’t start until November, and its consequences won’t be revealed any earlier than the next 6 to 12 months. So, the current inflation of 19%, which is expected to go up to 40% by the end of the year, has clearly nothing to do with the United States”.”

Henchman, Mohammad Reza Badamchi another member of regime’s parliament, added: “In today’s society, one out of every six people is unemployed. In other words, close to 20 million of our youth, aged between 15 to 29 years old, have no jobs now.”

The cabinet, of course, only controls 50% of Iran’s economy. The other half is held by the Supreme Leader and the organizations under his power, primary the Revolutionary Guards and its affiliates.

Mahmoud Bahmani, another regime MP and the former head of the Central Bank, revealed last month: “A 2-year-worth of currency, accumulated from our exports, haven’t been returned to our country just yet. The bank accounts of the officials’ families are worth more than our currency held overseas. In March 2013, the liquidity rate was 435 thousand billion Toman, whereas today, it is more than 700 thousand billion Toman.”

Given the dire economic situation in Iran and the failure of regime officials to find effective solutions to address it, the Iranian people have grown more and more angry at the entire regime. Economic issues were the initial spark that led to the massive uprising that began in December of last year and continues today. People from all walks to life have taken to the streets, chanting, “Death to Khamenei!”

Khamenei you should be ashamed of yourself!”

Reformists, Hardliners, Game is Over!”

It has become clear that the people of Iran are tired of claims of reform. They are ready for regime change. Increasingly, protesters have looked toward the Iranian Resistance and the MEK for a viable alternative to the mullahs’ regime.

The regime faces many obstacles right now, but the largest and most insurmountable is the ongoing uprising taking place in the streets of Iran. The regime has been unable to suppress the protests, and it has been unable to kill off the opposition movement, despite attempted multiple terrorist attacks on the MEK this year.

Rouhani himself acknowledged the power of the protesters in a statement this year: “How did our country’s atmosphere suddenly change? It changed from December 26th, 2017; anyone who claims otherwise is only misleading people, in my opinion.”

The regime is fearful of its people because it knows the end is near. Overthrow is inevitable because the problems within the regime cannot be fixed. The people are angry, and the protesters cannot be suppressed. The regime should be afraid.

Staff Writer

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Iran Economy,Iran infighting,MEK,NCRI,PMOI,Regime Change,Rouhani

MEK- Iran: Rouhani’s Answers Leave MPs Unsatisfied

Archive-Rouhani was called to the regime’s parliament to answer questions about the dire economic condition, the plunge of Rial, etc. As Iran protests grow across the country, the infighting among regime rivals expands

There have been signs that the Iranian regime has been dealing with instability within the leadership for some time. The Minister for Labour and the Economic Minister were both removed from their positions in recent weeks, and Rouhani appeared before MPs on August 28th to explain the country’s woeful economic situation.

Rouhani answered five questions on the economy. Four of the responses were unsatisfactory. Among the 82 MPs that witnessed the session, approximately 75% felt that his answers to questions on unemployment and inflation were not acceptable.

An Economy in Crisis

In the last six months, the rial has plummeted in value against the dollar. Its value is around half of that at the beginning of 2018. Poverty is creeping up, with many Iranians struggling for economic survival.

One-third of the population now live below the international poverty line based on regime sources, with one in ten living in conditions that amount to “absolute poverty” (the reality is a lot worse). Mohsen Hashemi, Chairman of Tehran’s Council, puts the blame squarely at the regime’s doorstep. He said the mullah’s “quick and careless formation of policies” has destroyed the economy.

A Web of Deceit

During the hearing with MPs, Rouhani spouted fabricated figures and statistics as he attempted to put a positive spin on his government’s five-year tenure. Rather than acknowledge his government’s failings, he instead blamed the economic crisis on the perceptions of the Iranian people.

“All of a sudden, people’s perception of Iran’s future changed, and this is a major problem”, he said. “Banking irregularities and the economic boom and the currency prices are all important issues, but they all pale in relation to the issue of public trust and hope”, he added.

Rouhani pinpointed the uprisings in December and January, as the moment that the current economic crisis began. “Suddenly the circumstances in the country changed”, he said.

President Rouhani also blamed his counterpart in the United States, Donald Trump’s decision to withdraw from the JCPOA on the 2017/2018 uprisings. He said that the “domestic turbulence and international threats frightened the people”.

Playing Down Reports of Factional Infighting

Finally, Rouhani attempted to dispel rumors of infighting within the regime leadership. Previously he had criticised the Islamic Revolutionary Guard Corps (IRGC) of extensive smuggling, accusing the organization of smuggling billions of dollars across international borders. However, during questioning, Rouhani praised the IRGC for its role in preventing smuggling.

In refusing to give an accurate representation of his government’s role in creating the economic crisis and performing a U-turn on smuggling accusations within the IRGC, Rouhani demonstrated to the people of Iran that he has no interest in offering solutions to the country’s worsening economic situation. His answers demonstrate a leader burying his head in the sand to avoid the harsh realities of the situation, more concerned with smoothing over factionalism within his own government than improving the lives of the population.

The economic crisis ravaging the Iranian population looks set to worsen before it gets better. But one thing is certain: As seen in slogans of protesters in recent protests across Iran, shouting “Death to the Dictator” they well know that it is the entirety of the regime that is responsible for the corruption and mismanagement of the economy and that the only solution to the problem is regime change in Iran.

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A man searching the garbage can for food due to widespread poverty

Moshen Hashemi: The Second Half of 2018 Could Bring a “Tsunami” of poverty in Iran

A man searching the garbage can for food due to widespread poverty

A man searching for left overs inside a trash can, a very common scene in Iran today, due to government’s corruption and spending the country’s income to fund terrorism, development of Ballistic Missile programs and for domestic repression.

The Iranian economy continues to slide. In the last six months, the rial has plunged, losing approximately half its value against other international currencies. Around one-third of Iranians are now living below the poverty line, and one in ten live in what is known as “absolute poverty”.

In one single month, between March and June, the purchasing power of Iranians fell by more than 48%. The Head of the Workers Union of Chadormalu Mining and Industrial Company, Akbar Alipour, spoke of how the falling income levels of Iranians are clearly visible in the streets. He said, “we can see very clearly how income levels, and subsequently people’s welfare, have dropped”.

The mullah’s “quick and careless formation of policies” has ravaged the economy, according to the Chairman of Tehran’s Council, Mohsen Hashemi. There is no sign of improvement in the months to come. A regime official predicted that the second half of 2018 would bring a “new wave of inflation”, leading to “even lower purchasing power”, and even more widespread poverty.

The clerical regime does not have the budget to handle another wave of inflation. It has already proven itself inept at dealing with the current economic crisis. Its responses to the economic crisis have been ineffective and merely exacerbated the situation.

An Economy Creaking under the Weight of Mismanagement

Moshen Hashemi summed up the current situation in Iran. He said, “poverty is bearing down on Iran’s society like a Tsunami”. The regime’s officials are in panic mode. A “snowball of social damages” are reaching a critical point and threaten to spiral out of control.

Alipour warned of the devastating impact falling income levels would have on Iranian families. “Many families will be falling apart”, he said, adding, “especially given the desperation of many people, including workers, are already experiencing now”.

The effects of falling income levels have already prompted mass protests and demonstrations across Iran. Recent demonstrations from merchants, truck drivers, farmers, teachers, students, investors, factory workers, and laborers have racked the country.

With a population of 60 million people, there is little doubt that further economic decline would pose a real problem for the mullahs. It would create a domestic situation where the slightest spark could ignite nationwide protests, similar to those seen in December and January, but on an even greater scale.

As the situation has worsened, the protest movement has evolved. The protests since March have targeted inflation and economic decline. The protestors slogans have called for “death to Khamenei”, and “death to Rouhani”. Khamenei himself has acknowledged the nation’s economic problems and the internal unrest.

Alipour insisted that “there has never been a time in history, where workers have been on the verge of absolute hunger like now”. The Iranian people are hungry. Hungry for food to feed their families. Hungry for economic security. Hungry for a better standard of living and welfare. And above all, hungry for regime change.

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Human Rights,Iran Economy,Iran Protests,IRGC,Maryam Rajavi,Pompeo's speech on Iran

Secretary Pompeo describes new Iran Strategy

Why the Iranian People Support the Resumption of Sanctions Against the Iranian Regime

Secretary Pompeo describes new Iran Strategy

Secretary Pompeo’s speech on Iran-May 2018

The first of Donald Trump’s sanctions against the Iranian regime has been revealed following the withdrawal of the US from the 2015 Iran nuclear deal. Secretary of State, Mike Pompeo described the coming wave of sanctions against the clerical regime as “the strongest sanctions in history when we are complete.”

Secretary Pompeo explained the US government’s Iran policy as a three-pronged approach. The first strategy would be to apply financial pressure on the regime. The second would address the regime’s contributions to instability in the Middle East, particularly its financing of international terrorism. The third prong would see the US supporting the Iranian public and championing their cause.

A Clear Set of Criteria

The US Secretary of State was explicit in the requirements the Iranian regime would have to meet before the US would consider lifting the sanctions. He produced a set of 12 criteria that would have to be met. Among the criteria is the termination of the nuclear and ballistic missile programs, a cessation of meddling in the affairs of its neighbor states and an end to the financing of terrorism.

Many of the demands Secretary Pompeo laid out have been among the demands of the Iranian opposition since decades ago to end the policy of appeasement to the mullahs in Iran, however while secretary Pompeo spoke extensively about the Iranian people and their uprising against the mullahs, the end of human rights abuses and suppression of the Iranian population was not among the 12 demands.

Will the Sanctions Harm the Iranian People?

When economic sanctions are employed against a rogue government, there is often a concern among the international community that rather than affect those in power, the people bear the economic burden, and are forced further into poverty and financial hardship. This is actually the narrative that the Iran lobby had long been pursuing in a bid to prevent more crippling sanctions on the regime.

However, the people of Iran are in favor of the proposed sanctions. Iranian trade has not benefitted the Iranian population. The economy is under the control of the Islamic Revolutionary Guards Corps (IRCG) and the only beneficiaries of Iranian international trade are the IRCG and their affiliated companies.

Under the Iran deal, the Iranian regime received a $100-$150 billion financial windfalls. This had no effect on the Iranian people, who live in worse economic circumstances than they had prior to the lifting of the sanctions. In fact, the lifting of the sanctions and extra financial revenue allowed the regime to ramp up its domestic oppression and further interfere with conflicts in the region.

The people hope that with the resumption and intensification of international sanctions, it will limit the regime’s budget for repressive bodies and limit its campaign of tyranny against the Iranian population.

Maryam Rajavi’s Comments on Pompeo’s Speech

Responding to Mike Pompeo’s speech, leader of the Iranian opposition, Maryam Rajavi, called his recognition of the Iranian people’s struggle “a major step”. She added, “democratic change in Iran is the only solution to the problem in Iran and the crisis in the region. Forming an international front against the religious and terrorist dictatorship in Iran is a requisite for the establishment of peace, security and coexistence in the region and world over”.

In the wake of the announcement from the US, Europe now has a choice; persevere with their short-term strategy of maintaining lucrative economic ties with Iran, or stand with the democratic movement in Iran, end its appeasement of the Iranian regime, and stand on the people’s side in their quest for a free, democratic Iran.

Staff Writer

 

 

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