MEK Iran: Economic Crisis
The analysis of the People’s Mujahedin of Iran (PMOI / MEK Iran), and the National Council of Resistance of Iran (NCRI), reported that Iran is in one of its most difficult economic crises in the last 50 years. While many supporters of the regime blame international sanctions for Iran’s economic difficulties, official media blame the regime for the current disaster.
Skyrocketing prices of goods and services
“Both the dollar exchange rate and the price of the coin are increasing. On August 14, the state-run Aftab-e Yazd daily reported that “inflation and skyrocketing prices of goods and services, primarily food items and people’s necessities, have continued to rise with a worrying trend in recent months.”
The liquidity growth is very high
One of the government’s economists, Vahid Shaghaghi-Shahri, compared Iran’s economic position to a “straw warehouse on fire.” According to state-run Aftab-e Yazd, Shahri continued, “we cannot extinguish the fire in a short time, but the straw inside the warehouse must be removed so that the fire does not damage the entire warehouse.”
The “important problem of Iran’s economy is that the liquidity growth is very high,” Shahri added.
To make up for its budget deficit, the government began printing banknotes. The printing of banknotes has raised the liquidity rate, which has generated inflation because the liquidity rate is substantially larger than the production rate.
The growth of liquidity of 40% continues
“The latest statistics show that liquidity growth is over 40%. Suppose the growth of liquidity of 40% continues, with more than 3.7 quadrillions of liquidity. In that case, it means this year we should expect more than 4 trillion tomans of liquidity to be pumped into the economy daily,” In this regard, Shahri informed Aftab-e Yazd.
“The country’s economic management capacity for large projects is generally weak,” Shahri said, “and this is due to the country’s weak human resources management, lack of control over the large project management system, institutionalized problems, and power centers.”
Spending the country’s wealth on terrorism and nuclear weapons programs
Iran’s economy is affected by the regime. The leadership has been spending the country’s wealth on terrorism and advancing its anti-American nuclear weapons program.
Food prices have risen by 71 percent
“A report by the Ministry of Welfare’s Center for Statistics and Strategic Information shows that food prices have risen by 71 percent and that this trend will soon lead to staggering inflation.
It is even feared that Iran’s economy will move towards hyperinflation and uncontrollable inflation. In the last days of last week, Iranian economist Massoud Nili, during a group meeting of economists with the [regime’s] President Ebrahim Raisi, made it clear that unfortunately, today we are on the verge of a difficult and uncontrollable inflationary situation,” Eghtesad-e Pouya, a state-run newspaper, wrote on it.
The regime is the only source of the country’s problems
The Iranian people believe the regime is the only source of the country’s problems, as seen by recent protests around the country. The public’s disgust with the mullahs’ dictatorship and their damaging policies is growing, as the regime’s state-run media has pointed out.
The foregoing facts further show that Iran’s economic problems are not caused by sanctions, and that, as Iranians have stated in their rallies, the “enemy is here [in Iran].” Giving the regime any concessions would just allow the dictatorship to fuel its warmongering machine, which would have disastrous consequences for the entire globe.