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By\u00a0Mahmoud Hakamian<\/p>\n
The acceleration of Iran regime\u2019s economic collapse is a grave concern. Economists look toward the economic situation of Venezuela and compare the inflation rate and the conversion rate of USD to Venezuela currency with the inflation rate and conversion rate of Iranian rials to USD. The Iranian people wonder, \u201cWill Iran become the next Venezuela?\u201d<\/p>\n
Like Iran, most of Venezuela\u2019s income is from the oil industry. In 2015, the inflation rate was at 57%, but in 2014, it jumped to 181%. Oil revenues fell by 12.7% in 2016, and the inflation rose to 254%. This trend continued through 2017, and the inflation rate reached 741%.<\/p>\n
The once prosperous country faced economic disaster. Venezuelans reduced their meals, and were forced to eat garbage from dumpsters.<\/p>\n
Rouhani blames U.S. sanctions, instead of regime\u2019s mismanagement, for the country\u2019s troubles. And Khamenei, referring to the shortage of baby diapers, blamed it on “the enemy” (U.S.) who “wants the Iranian people to be angry with their own government.\u201d Just as President Rouhani and Supreme Leader Khamenei say today, Maduro\u2019s government blamed the situation on an \u201ceconomic war\u201d led by the country’s political adversaries with the help of the United States.<\/p>\n
Professor Steve Hanke, an American economist and a professor at Johns Hopkins University, states that Venezuela\u2019s annual inflation rate on September 4th, 2018 was 55,049% \u2014 304 times that of 2015. According to Professor Hanke’s further analysis, Iran\u2019s inflation rate in April 2018 was 52.7%, but five months later, on September 4th, 2018, the inflation rate reached 268%. Therefore, it took two years for Venezuela\u2019s inflation rate to increase to the extent that Iran did in only five months.<\/p>\n
In September 2018 the exchange rate was 38,900 rial per USD. On September 4th, 2018, it reached 140,000 rial, which is an increase of 260% in a year. It doesn\u2019t seem to be coincidental that this figure nearly matches the 268% inflation calculated by Professor Hanke.<\/p>\n
Iran regime\u2019s President Rouhani presented a $47 billion state budget in December 2018. It displayed an 85% decrease compared to the budget of 2017. Officials say that the budget calculations were based on a forecast oil crude price of $50-$54 per barrel and exports of 1 to 1.5 million barrels per day.<\/p>\n
A few months before sanctions began, Iran’s oil exports dropped sharply. Experts believe that the IRI regime sold only 1 million barrels per day in August 2018, compared to 2.3 million barrels of oil a day in June 2018.<\/p>\n
Like Venezuela\u2019s inflation rate, Iran\u2019s has become \u201cexponential”, and the country\u2019s economy is on the verge of collapse.<\/p>\n","protected":false},"excerpt":{"rendered":"
By Mahmoud Hakamian The acceleration of Iran regime’s economic collapse is a grave concern. Economists look toward the economic situation of Venezuela and compare the inflation rate and the conversion rate […]<\/p>\n","protected":false},"author":8,"featured_media":52592,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[71],"tags":[178],"class_list":["post-25742","post","type-post","status-publish","format-standard","has-post-thumbnail","category-blog","tag-save"],"yoast_head":"\n