{"id":19377,"date":"2021-04-05T17:14:58","date_gmt":"2021-04-05T22:14:58","guid":{"rendered":"https:\/\/www.irandemocratic.org\/public_html\/news\/?p=19377"},"modified":"2021-04-05T17:14:58","modified_gmt":"2021-04-05T22:14:58","slug":"irans-officials-and-state-run-media-acknowledge-economic-crisis-and-warn-of-protests","status":"publish","type":"post","link":"https:\/\/www.irandemocratic.org\/public_html\/news\/2021\/04\/05\/irans-officials-and-state-run-media-acknowledge-economic-crisis-and-warn-of-protests\/","title":{"rendered":"Iran\u2019s Officials and State-Run Media Acknowledge Economic Crisis and Warn of Protests"},"content":{"rendered":"
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Written by<\/span>Shamsi Saadati<\/a><\/div>\n<\/div>\n<\/div>\n
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5th April 2021<\/div>\n<\/div>\n

On Sunday, Iran\u2019s state-run media and the regime\u2019s officials acknowledged the country has an economic crisis, and the mullahs are the real reason for this crisis.<\/p>\n

\u201cUnfortunately, Iran\u2019s economy has condensed and unresolved structural challenges, and the Covid-19 challenge is now added to this collection. Iran\u2019s economic infrastructure is more damaged in recent years. We will witness a deepening recession in key sectors of the Iranian economy in the [Persian New year of] 1400,\u201d Vahid Shaghaghi, one of the regime\u2019s economists,\u00a0told<\/a>\u00a0the state-run Khabarfori website on Sunday.<\/p>\n

One of Iran\u2019s super economic challenges is the rising inflation rate, liquidity growths, and skyrocketing prices. While many of the mullahs\u2019 apologists try to blame sanctions, state-run media acknowledged how the regime\u2019s wrong economic policies had devastated Iran\u2019s economy.<\/p>\n

One of these wrong policies is banknote printing. Hassan Rouhani\u2019s government has increased banknote printing to compensate for its budget deficit without considering its devastating impact on people\u2019s lives.<\/p>\n

\u201cThe [regime\u2019s] economic policy case was closed last year with two major developments. The first was the government\u2019s withdrawing money from the\u00a0Central Bank<\/a>\u2019s resources in the second half of the year. The second was the confession of the Governor of the Central Bank of Iran (CBI) to banknote printing and selling foreign currency from the National Development Fund. Both policies have been adopted to compensate for the budget deficit. Thus, the government\u2019s financial indiscipline, the dominance of fiscal policies over monetary policy, and the lack of central bank independence can be cited as the main reasons for the growth of the monetary base and the increase in liquidity in the last year. If liquidity continues to grow disproportionately to real economic growth, inflation will be higher than the average of previous decades,\u201d\u00a0wrote<\/a>\u00a0the state-run Jahan-e Sanat on Sunday.<\/p>\n

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\u201cConsidering the factors that led to an increase in liquidity and rising inflation last year, it can be predicted that insecurity in the economic situation and the skyrocketing prices of the basic goods will be the people\u2019s guests this year,\u201d Jahan-e Sanat adds.<\/div>\n<\/div>\n<\/div>\n

\u201cSome officials say that the liquidity growth, once the printed banknote has reached the producer and is spent, does not pose a risk to the economy and will no longer lead to inflation, but will also control it. But economics tells us that creating liquidity in any situation will lead to higher prices,\u201d\u00a0wrote<\/a>\u00a0the state-run Eghtesad-e Meli daily on April 4, 2021.<\/p>\n

\u201cIf the liquidity growth is greater than the growth of the manufacturing sector, it will have its effects on the growth of prices in the form of inflation. Statistics show that liquidity growth does not increase production. For example, from February 2019 to February 2020, the liquidity growth was at 40%. At the same time, we had the lowest economic growth. This example shows that while our productions are unable to grow for various reasons simultaneous with the liquidity growth, the result will be rising inflation and skyrocketing prices,\u201d Eghtesad-e Meli adds.<\/p>\n

With the growing economic crisis, the regime\u2019s officials warn one another of an inevitable uprising.<\/p>\n

During the public session of the regime\u2019s Parliament on Sunday, many of the regime\u2019s MPs expressed concern about people\u2019s reaction to the ongoing economic and social crisis.
\n\u201cPeople\u2019s tables continue to shrink daily. If we do not find a solution, great damage will await us. The feeling of oppression among the people who lost their [life savings in] stock market, [people\u2019s anger of] incidents, [such as] the fuel-price hike incident [November 2019 uprising], the rampant inflation, the long ques for oil and poultry, cannot be ignored. People will react at the right time,\u201d said Ahmad Alireza Beigy, one of the regime\u2019s MPs, on Sunday.<\/p>\n","protected":false},"excerpt":{"rendered":"

Written byShamsi Saadati 5th April 2021 On Sunday, Iran\u2019s state-run media and the regime\u2019s officials acknowledged the country has an economic crisis, and the mullahs […]<\/a><\/p>\n<\/div>","protected":false},"author":14,"featured_media":19378,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[436,5],"tags":[],"_links":{"self":[{"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/posts\/19377"}],"collection":[{"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/comments?post=19377"}],"version-history":[{"count":1,"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/posts\/19377\/revisions"}],"predecessor-version":[{"id":19379,"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/posts\/19377\/revisions\/19379"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/media\/19378"}],"wp:attachment":[{"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/media?parent=19377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/categories?post=19377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irandemocratic.org\/public_html\/news\/wp-json\/wp\/v2\/tags?post=19377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}