Thursday, 3 January 2013

Iran Live Coverage: A Collapsing Economy?

0610 GMT: Banks on the verge of collapse, another 3 million families under the poverty line this year, the threat to the regime of "hunger riots" and an uprising in the Bazaar....

That is the prospect for Iran held out by Mehrdad Emadi, a senior economic advisor to the European Union, in an interview with Manoto TV. Emadi argues that the banks can only survive if there is an injection of Government financing. Meanwhile, businesses are shutting down and workers are struggling to provide for their families.

His advice to the Supreme Leader: withdraw the Islamic Revolutionary Guards Corps from the oil, gas, and transportation industries, otherwise sanctions will bring even more damage to the Iranian economy.

Economist Fereydoun Khavand adds a warning about President Ahmadinejad's insistence on a second phase of subsidy cuts as a "catastrophe for the economy", with yet more cash liquidity raising inflation farther. The silver lining --- for Iranians and the President --- is that Parliament and others in the regime are likely to block any second stage, with Ahmadinejad claiming the political victory that his rivals have prevented him from doing his best for the nation.

from EA WorldView: EA Iran

Posted via email from lissping

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