{"id":248835,"date":"2021-10-11T14:03:46","date_gmt":"2021-10-11T19:03:46","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=248835"},"modified":"2023-01-28T22:20:55","modified_gmt":"2023-01-28T21:20:55","slug":"state-media-irans-economic-situation-is-beyond-catastrophe","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/state-media-irans-economic-situation-is-beyond-catastrophe\/","title":{"rendered":"State Media: Iran\u2019s Economic Situation Is Beyond Catastrophe"},"content":{"rendered":"

\"iran-economy-bourse\"<\/p>\n

Iran\u2019s economic situation is in the worst situation in the last century. This fact has been confirmed by Iran\u2019s state-run media, also acknowledging<\/a> the consequences of the growing economic crisis for the regime that has created and amplified this situation.<\/p>\n

\u201cEconomic statistics are beyond catastrophe,\u201d wrote the state-run Hamdeli daily on October 10. According to the state-run Etemad daily on Monday, during the last \u201c40 years, the price index has increased about 1326 times.\u201d<\/p>\n

According to the state-run Setareh Sobh daily on October 11, \u201cThe latest monetary and banking statistics by the Central Bank show the dire state of the Iranian economy.\u201d\u00a0Iran\u2019s liquidity is rapidly growing. Since Iran\u2019s production rate is far less than the liquidity. Thus, Iran\u2019s inflation rate is increasing daily, resulting in skyrocketing prices of basic goods.<\/p>\n

\u201cThe Central Bank has announced that until the liquidity<\/a> until the end of August has surpassed 3.4 quadrillion rials [or $160 billion based on the open market rate]. This is a %39.1 increase comparing to the last August,\u201d Setareh Sobh adds.<\/p>\n

But what has caused this situation? \u201cThe [government\u2019s] budget deficit is the first defendant of this case. The government has borrowed money from the Central Bank [banknote printing], causing liquidity growth. The liquidity growth causes inflation and increases pressure on society\u2019s lower deciles,\u201d Setareh Sobh writes in this regard.<\/p>\n

\u201cThe main cause of the existing economic and livelihood problems is liquidity and its uncontrolled growth. The negative effects of liquidity growth are no less than the attack and threat of ISIS; Because it targets people\u2019s livelihoods and is destroying the system\u2019s social capital,\u201d Setareh Sobh wrote, quoting Hossein Samsami, former acting Minister of Economy and Finance.<\/p>\n

Read more<\/p>\n

Is There a Solution to Iran\u2019s Economic Crisis?<\/span><\/a><\/p>\n

Iran\u2019s Economic Crisis: IRGC Gold Mafia<\/a><\/span><\/p>\n

State Media: What\u2019s Wrong with Iran\u2019s Declining Economy<\/span><\/a><\/p>\n

The regime has started systematic banknote printing to compensate for its budget deficit without considering its negative effects on people\u2019s lives.\u00a0Now \u201cThe salary decrease has reduced the Iranian families\u2019 welfare,\u201d according to the state-run Donya-e Eghtesad on Monday. \u201c<\/p>\n

\u201cDeclining incomes following the Covid-19 lockdowns and rising living costs caused by skyrocketing inflation have increased pressure on low-income Iranian households. Given the large share of vulnerable households in Iran, these [economic] shocks can significantly increase poverty,\u201d Donya-e Eghtesad adds.<\/p>\n

Iran is going through its darkest days of the Covid-19 outbreak<\/a> due to the regime\u2019s inhumane policies and negligence. Apart from its high mortality rate, the Covid-19 outbreak has had a great negative economic effect on people. Iranians, from all walks of life, mainly workers, could hardly make ends meet.<\/p>\n

\u201cWorkers are under severe economic pressure, which has increased in the last two years with the coronavirus outbreak and its impact on the economic process of businesses, leading to illegal and cruel contracts with workers who have to make a living. These contracts are from one to three months and are not even covered by workers\u2019 legal rights,\u201d wrote the state-run Mardom Salary in this regard on Sunday.<\/p>\n

As Mardom Salarie underlines, \u201cThe unemployment<\/a> crisis escalated, and many people accepted the demands of employers to keep their jobs. They accepted decreased salaries, removal of their insurances, and increased working hours in order to provide for their families.\u201d<\/p>\n

<\/div>
How the mullahs destroyed Iran's economy<\/div><\/div>
<\/div>
<\/div>
<\/div><\/div><\/div>