Just to add to this, as all of the ideas presented therein are correct and reasonable, but, WE MUST GO DEEPER
First off, Iran's massive corruption and economic inefficiency is partly because it is at heart a socialist nation. Much of the economy is under the control of the government, ie the largest banks in Iran, and through shell companies the IRGC.
As per my thread yesterday, the water and energy resources are strictly under the control of the IRGC via an extensive, excessive, really just a complete clusterfuck of dams.
Beyond even THAT, and the central bank is under de facto control of the Mullahs. It is SUPPOSED to be under the president's control, but after Ahmedinejihad or however the fuck you spell it went through like 3 in a few years, the Mullahs decided they had to approve appointees
With that authority came mismanagement, including massive under the table bank bailouts to compensate for massive regime corruption and printing money like a motherfucker, and NEVER STOPPING. A sudden glut of rials in the market is ALSO contributing to the hyperinflation
Finally, rferl.org/a/iran-billion… A CURRENCY RESERVE IS NOT A RAINY DAY FUND. It is the money used specifically to back your own currency. Ie, "the central bank has 500 billion dollars of foreign currency, so this money in total is worth at least 500 billion."
Take a couple dozen BILLION out of that, and your currency's baseline value DROPS THAT MUCH. THAT is one of the single biggest causes of the current gutshot to the rial's value. A monumentously fucking stupid idea.
"We don't have enough money to pay the plumber! No problem, we'll just rip ALL OF THE GODDAMN PIPES out of this building to pay him!"
Just thought I'd put all that out there. As usual, if you come at me with rothschilds, petrodollar, or any other fucking moronic bullshit, I shall eviscerate you in a quote tweet and then block you. Buh-bye!
