{"id":241275,"date":"2021-06-10T11:30:43","date_gmt":"2021-06-10T16:30:43","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=241275"},"modified":"2023-02-01T04:51:28","modified_gmt":"2023-02-01T03:51:28","slug":"iran-state-media-acknowledge-the-cause-of-economic-crises","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-state-media-acknowledge-the-cause-of-economic-crises\/","title":{"rendered":"Iran State Media Acknowledge the Cause of Economic Crises"},"content":{"rendered":"

\"Iraninflationrate\"<\/p>\n

Iran is going through various economic crises. Iranian people are suffering from skyrocketing prices. While many try to blame sanctions for people\u2019s hardships, facts acknowledged by the state media show how the regime\u2019s corruption and wrong policies have damaged Iran\u2019s economy.<\/span>\u00a0<\/span><\/p>\n

\u201cIt seems that the root of inflation and recession lies in the officials\u2019 lack of responsibility and negligence,\u201d wrote the state-run\u00a0Hamdeli\u00a0daily on Wednesday, June 9, 2021.<\/span>\u00a0<\/span><\/p>\n

One of the main reasons for Iran\u2019s rising inflation rate and the subsequent skyrocketing prices is the huge amount<\/a> of liquidity, which is not in line with Iran\u2019s production and export rate.<\/span>\u00a0<\/span><\/p>\n

\u201cThe money market\u2019s 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\u2019s production rate,\u201d wrote the state-run Jahan-e Sanat daily on Wednesday.<\/span>\u00a0<\/span><\/p>\n

\u201cThe root of rising liquidity could be found in the increase of the government\u2019s 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,\u201d Jahan-e Sanat adds.<\/span>\u00a0<\/span><\/p>\n

\u201cThe current expenses of the government alone are estimated at nine\u00a0quadrillions\u00a0tomans this year. The government\u2019s revenue from taxes will not cover even one-third of this amount.\u00a0<\/span>\u00a0<\/span><\/p>\n

As a result, when spending exceeds revenues, the government either starts banknote printing, issues treasury bills, or borrows from the central bank.\u201d Jahan-e Sanat acknowledges.<\/span>\u00a0<\/span><\/p>\n

Jahan-e Sanat adds that as long as the regime continues the same procedure, the liquidity and inflation rate \u201cwill be increasing rapidly.\u201d<\/span>\u00a0<\/span><\/p>\n

\u201cThe volume of liquidity between 2018 and 2020 increased from 1.6 quadrillion tomans and reached an astonishing figure of 3.5 quadrillion tomans. The country\u2019s liquidity in the first half of [Persian year of] 1400 continued to grow unbridled,\u201d\u00a0Hamdeli\u00a0wrote on June 9.<\/span>\u00a0<\/span><\/p>\n

\u201cParallel to the rising liquidity rate, the Iranian families\u2019 financial abilities shrank. The most important effect of the rising liquidity is the creation of a high inflation rate. Iran\u2019s economy suffers from both inflation and recession. The recession has damaged Iran\u2019s production,\u201d\u00a0Hamdeli\u00a0wrote.<\/span>\u00a0<\/span><\/p>\n

\u201cFor example, while two quadrillion tomans of destructive liquidity were created per day, the country\u2019s production section constantly faced decreased working capital and daily liquidity need. This problem has exposed the scientific and industrial foundations to constant damage,\u201d\u00a0Hamdeli\u00a0daily adds.<\/span>\u00a0<\/span><\/p>\n

\u201cFrom January 2018 until a month or two ago, when we had a sharp rise in the price of the currency, there were many developments. Officials\u2019 decisions have had a very negative effect on people\u2019s lives by making permanent changes. Naturally, one of the reasons for the increase in poverty is inflation. Since poor people\u00a0can not\u00a0adjust to rising inflation and demand higher wages, we are witnessing a sharp rise in poverty in society as inflation rises,\u201d Hossain\u00a0Raghfar, one of the regime\u2019s economists, told the state-run Quds-Online on June 9.<\/span>\u00a0<\/span><\/p>\n

\"Weekly-Signe-up-logo-1\"<\/a><\/p>\n

The Iranian regime has been wasting Iran\u2019s national wealth and revenues of the natural resources on terrorism, proliferating weapons of mass destruction, or distributing money among its corrupt officials. Thus, logically the expanses exceed Iran\u2019s revenues.\u00a0 Meanwhile, Iranian people suffer from poverty and skyrocketing prices.<\/span>\u00a0<\/span><\/p>\n

The regime officials have no plan for Iran\u2019s economic crises as they have created them. This fact was confirmed during the recent debate of the regime\u2019s candidates for the sham presidential election<\/a>. Each person blamed the other and the rival faction without offering a solution to the current crisis.<\/span>\u00a0<\/span><\/p>\n

\u201cThe candidates who have created poverty and misery in the country cannot resolve problems with bogus claims and slogans. Hassan Rouhani called his government \u2018the government of hope and management,\u2019 but\u00a0couldn\u2019t\u00a0manage poverty. You cannot resolve social issues with slogans. These problems have been created in the last 43 years,\u201d wrote the state-run\u00a0Eghtesad-e Pouya on Wednesday.<\/span>\u00a0<\/span><\/p>\n

One of the reasons for Iran\u2019s economic crisis is the regime\u2019s corruption. The regime\u2019s Revolutionary Guards (IRGC)<\/a> and financial institutions affiliated to the regime\u2019s Supreme Leader Ali Khamenei<\/a> control Iran\u2019s economy. The money circulates in this cycle of corruption, leaving people in poverty.<\/span>\u00a0<\/span><\/p>\n

\u201cThe powerful economic institutions or organizations, created under the pretext of preserving public interests are using public facilities and governmental opportunities of embezzlement,\u201d the Quds-Online acknowledged on Wednesday.<\/span>\u00a0<\/span><\/p>\n

\"IRGC-Powerhouses-10012021\"<\/p>\n

\u201cFor example, one of these institutions receives currency at the government-set exchange rate, interferes in import and export but is not clear about its activities, and seeks the interests of a special group of people. This institution is not accountable for its actions, and it engages the government in that matter, it has little efficiency, it is mostly harmful, and ultimately it is not able to satisfy the public,\u201d Quds-Online acknowledges further.<\/span>\u00a0<\/span><\/p>\n

The IRGC plunders Iran\u2019s national wealth and funds terrorist proxy groups abroad or its oppressive forces inside Iran. Yet, it claims it is providing people with security.<\/span>\u00a0<\/span><\/p>\n

\u201cThe monopolistic and powerful organization [IRGC] tries to portray itself as the holder of the society\u2019s security and avoids accountability for its actions,\u201d Quds-Online further acknowledged.<\/span>\u00a0<\/span><\/p>\n

The IRGC, its front companies, and the institutions under Khamenei\u2019s supervision are plundering people\u2019s wealth and leaving people to grapple with poverty. As the Iranian Resistance has long said, the only way to end Iran\u2019s economic crises and help people is to topple the regime and dismantle organizations like the IRGC.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Iran is going through various economic crises. Iranian people are suffering from skyrocketing prices. While many try to blame sanctions for people’s hardships, facts acknowledged by the state media show […]<\/p>\n","protected":false},"author":19,"featured_media":241276,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,10],"tags":[198,229,494,129],"class_list":{"0":"post-241275","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"category-economy","9":"tag-ncri","10":"tag-irans-economy","11":"tag-iran_election_2021","12":"tag-iran"},"yoast_head":"\nIran State Media Acknowledge the Cause of Economic Crises - NCRI<\/title>\n<meta name=\"description\" content=\"While many try to blame sanctions for people\u2019s hardships, facts acknowledged by the state media show regime is the cause of economic crisis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/iran-state-media-acknowledge-the-cause-of-economic-crises\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iran State Media Acknowledge the Cause of Economic Crises - 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