Iranian economists say financial collapse is imminent

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Iranian economists described the regime’s financial situation in grim terms in a December 22 article published in Tejarat Farda weekly. According to economists, the Iranian economy has reached a state of crisis from which it is unlikely to recover.

Economist Mohammad Behkish expressed pessimism about the future of the Iranian economy in the Tejarat Farda article. “We are in a very bad economic situation. Negative economic growth, widespread and rising unemployment, and distrust have created fragile conditions for the country’s economy. There is no hope for fundamental change and real progress, and I do not think the issues will be resolved in such a way that at least the country’s economy gets out of this confusion,” he said.

“The amount of liquidity that enters the country’s economy every minute puts markets such as the foreign exchange, gold, and housing in dangerous conditions, and the wave of destruction of this situation is likely to spread to other sectors of the economy in the future,” Behkish added

‘Short-term, temporary, and unsustainable’

The National Council of Resistance of Iran (NCRI) and the  People’s Mojahedin Organization of Iran (PMOI / MEK Iran), reported that Behkish is not the first expert to call attention to the looming financial ruin awaiting the regime, but these warnings have thus far gone unheeded. The regime’s economists have met 15 times over the past eight years to discuss solutions to the problems facing the country, but government officials have ignored their concerns.

Economist Musa Ghaninejad expressed frustration with officials’ failure to take economic science seriously. He told Tejarat Farda that this attitude was unsustainable in the long-term. “These gentlemen believe that when the situation becomes critical, economics should be abandoned. They probably think that instead of economics, they should dominate their own interests in the country. Today’s world economy has grown in the shadow of international relations and until we do not improve our relations internationally, all of our economic solutions will be short-term, temporary, and unsustainable,” Ghaninejehad said.

Massoud Nili portended an even more dire future for the Iranian economy. Nili once created a five-year economic plan for the Iranian regime, but he now says that the country’s challenges have grown much more immediate. “We all remember that when we talked about the mega-challenges of the Iranian economy, we were warning about the possibility of them happening,” he said.

“Today, however, unfortunately, we are facing those super-challenges. Those wounds are reopened, and economists no longer need to say that the situation is not good, because all the people are already feeling the various aspects of economic challenges in their own lives… Iran’s economy has been hit by high liquidity growth. The liquidity growth caused by the central bank creates the ground for inflation in the country’s economy,” Nili continued.

Nili added that extreme growth in liquidity and the volume of money over the past year has caused hyperinflation. The regime is past reform at this point and is in need of major change.

‘The bus is rolling down the slope’

Behkish summed up the regime’s predicament with one final concern: “Now the bus is rolling down the slope and everyone agrees and even politicians have noticed. We used to have oil money and other resources that prevented the economy bus from moving toward the slope, but now this situation is quite visible.”

The MEK agrees that the regime is incapable of reform and must be replaced with a free-market, secular democracy before true change can occur. National Council of Resistance of Iran (NCRI) President-elect Mrs. Maryam Rajavi laid out her vision for Iran in her Ten-Point Plan for Iran’s Democratic Future, and the MEK stands with Mrs. Rajavi.

Source » mek-iran

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