“Our economy is bankrupt, it is because of nationalization, not because of sanctions,” the state-run ISNA news agency wrote in response to Ghalibaf’s the majlis spokesman claims.
The mullahs’ government has left Iran’s economy in shambles and on the point of catastrophic collapse after four decades of warmongering and corruption. With no foundation to help the economy thrive, the regime is continually creating new methods to keep the economy afloat for several months by reaching into people’s pockets and stealing what little wealth they have left. The government generates its own revenue through a combination of direct policies and indirect levers, at the expense of increasing the strain on the people.
The economy’s collapse is due to the printing of banknotes
The progressive increase in the price of basic products is one of the regime’s key measures. International sanctions are being blamed by the regime for the rising expense of living in Iran. However, even the regime’s own officials and experts recognize that the regime’s policies, particularly currency devaluation and exchange rate manipulation, are the primary causes of these shifts.
Another element contributing to the economy’s steady collapse is the unrestricted printing of banknotes, which has resulted in the national currency’s unchecked devaluation. The Central Bank generates an average of 67.5 trillion rials every day, according to the state-run Hamshahri newspaper, with 48 trillion rials created as unbaked banknotes. This means that every hour, 2 trillion rials of worthless money is injected into the market, providing a short boost to the government while depreciating the money in people’s pockets and bank accounts.
This means that every hour, 2 trillion rials of worthless money is injected into the market, providing a short boost to the government while depreciating the money in people’s pockets and bank accounts.
The government provides short-term cash boosts
Simultaneously, the Revolutionary Guards (IRGC), which wields disproportionate and quasi-monopolistic control over the economy, is using its power to import huge amounts of goods into the country. As a result of the regime’s policies, numerous renowned and long-standing enterprises that maintained Iran’s economic infrastructure have gone bankrupt in recent decades.These policies have provided the government with short-term cash boosts to spend on terrorism, warmongering, ballistic missiles, and other nefarious activities, but they are short-lived since they do not produce a productive economic cycle.
Furthermore, the regime faces a 50% budget deficit for the following Persian year, which begins in March 2022. To address this void, the regime has devised two new strategies. The abolition of the 42,000 rial-to-USD exchange rates on important imports, which was included in Raisi’s budget draught for 2022, was one of these initiatives. The second idea, which was just leaked, is to raise fuel prices.
Imports are gradually eroding the country’s production, which is a great windfall to the IRGC and regime leaders.
A social explosion bringing down this regime is imminent
The government will be able to sell fuel at unregulated rates according to the new plan, which would create grey and unauthorized marketplaces. According to some estimates, the proposal will result in a ninefold increase in fuel prices, which will lead to price increases in food, transportation, and power, among other things. Per the regime’s own analysts, the change in the currency exchange rate will result in a 100% increase in the price of products, and the new fuel plan will accelerate the cycle.
The question now is how the government will deal with the fallout from its new plans. With Iran’s economy on the edge of collapse and millions of people living in poverty, the country’s ability to endure further shocks has been severely harmed. And, as the November 2019 protests show, all it takes is a single spark to ignite a tremendous social explosion that can bring down this corrupt dictatorship.
State media: Ebrahim Raisi has only given Iran’s people empty promises.
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