be charto partaye in yaroo afghani goosh nadi ha... in ostade kososher goftane... I,m an economist and I can tell you that that afghan false flagger has no idea about what he is blabbering about...
in simple explanation your points are more true than those of Afghani false flagger...
Not long ago, there was only one system to calculate how much real income is generated in one specific economic society. It used to be done by Nominal USD... That stayed the case as Western capitalism and USA specifically, benefited a lot from stay on that course... It is like cancelling the old system of Gold for Currency Value. The Western bankers and their puppet politicians are experts of deceiving other countries to make their dollar to work for them... USA had nothing to offer after they matured by giving so much importance to WWII urgency need of industrial production. In simple words, USA can never be that rich if they stay with their incomes from industry, agriculture... They needed to create new false income by promoting two things. First, they promoted speculation and leverage in their financial instruments so they can create a type of income that only get created by printing more useless papers under seducing names...
The second weapon was to cancel Gold Vs Currency system and then make Dollar the sole international currency by using their media, hollywood and even their military forces... They made dollar a soldier... a penny-worth paper that creates income for USA, by printing more and more dollars and sending them out of country for importing services and life luxury. They started a false cycle of debt and debt... They are now literally a bankrupt nation if some of countries with huge Dollar reserves ask US to change their worthless dollars to real hardcopy wealth.
USA economic system is a total failure that soon will show its ugly face... There is a famous notion of BUBBLE real estate or bubble stock exchange prices... but American economy is a full scale bubble based on never-ending debts and debts... all capitalist countries who follow US are sinking in the same way with one difference that they lost twice as hard as they also paid for the well being of USA but will crash hard because of USA...
GDP, GNI or other Gross Domestic/National Product numbers were based on delusional formulas that used to serve Western nations the most... here a Paksitani economics stepped in and asked the world to change the notion into its real form. PPP (Purchasing Power Parity) based GDP is the only formula that calculates the exact, real worth of income generates in each and every country... why?
Because Nominal USD only works in economies with huge trade numbers... for countries who import a majority of their needs and export a majority of their productions... for countries with a fully capitalism system.... here we see more than 2 third of all nations on earth with another economic system... Soon, economists realized that Nominal GDP never reflect how much income is generated by its original meaning as Income = real food, real machines, real everything and not only a paper... Even if you look at Australia, you see that their inflated +$60000 per capita GDP loses value when it comes to real worth of those dollars... Australians can buy only around $38000 to 40000 with those $60000!! The opposite is also true...
There was also another reason that made Nominal GDP useless... there were countries around the world that had fluctuating exchange rates Vs dollar due to many unexpected reasons... Iran lies in this category as IRR value has been attacked intentionally by Western Sanctions... Making a 1200 IRT = USD soar to 3300 IRT for a dollar while inflation was not under control... Although this attack is a bless in disguise for Iranian economy in long term... Iran had to limit Dollar from rising in accordance to the inflation it had... There was a unique situation and Iran needed to keep the dollar low until it can generate more growth by building infra... Iran needed low dollar rate to make its people have a sense of calmness and wealth after a devastating war...
Iran was forced to keep dollar low until things are right to let it go...but enemies of Iran did it sooner than it must... however, with the new Iranian heading toward industrialization and new era of modern high tech exports, Iranian economy will benefit a lot from this higher US dollars... It was a poison 10 years ago and a blessing now and in future... There were also countries who intentionally practiced rate manipulations... China for example, due to its export oriented policies can not afford to let Chinese Yuan to rise in value... This will hurt their export based economy hard...
so let's imagine this:
You get 1200000 IRT for month... that 1200000 was equal to $1000 Last month (or even week), there were no sanctions on central bank or Iranian rial... Last month you could buy a bread for 500 tomans a piece... now, after a month, there is a war and the exchange rate of IRR=USD has risen in a way that your whole salary can be changed to only $365
you obviously no longer can afford to buy an imported luxury car which is imported by US dollar..! but wait... Does this huge change in nominal equivalent of your income deprives you of other necessities too?... does your inability to buy an imported luxury car today affect your ability to buy locally produced bread from local wheat? the answer is NO.. If Nominal income is true than you as someone who got paid $1000 last month and $365 today must lose your purchasing power by almost 3 times... but is it the case? Of course NOT
(Above numbers are imaginations only... does not reflect real exchange rates)
This is why World Bank comes create an adjustable weighting formula to calculate how much REAL products or goods one can buy in IRAN... it isnearly 3.2 now...this almost 3.2 times more PPP GDP shows that every Iranian Rial that you make in Iran has a real value (purchasing power) of at least 3.2 Iranian Rials in United States. This means if you get 1200000 Tomans and you can change it to $365 today it means that your $365 in Iran has 3.2 times more power to buy good and services... This means your salary is equal to $1168 if spent in USA or other countries...
Iranian economy is a majority locally produced goods and services... Iranians now buy less imported stuff than before... Iran with 78 million people and 1.32 Trillion dollars of GDP only imports around $50 billion dollar worth of goods and services from outside world...
Iranian banking authorities never manipulated IRR = USD rates in an evil way... Iran with rapid expansion after a devastating war needed to adopt a semi-floating exchange rate system... Even today in Europe and USA, russia and China they practice almost a same approach but interfering to balance exchange rates for their benefit...
There was only one president who happened to be a manipulator of rates for its own propaganda... before and after his government, the exchange rate was somehow rational... even today while knowing that helping empower IRR against dollar is somehow bad but the gov has no choice but to bring back trust and confidence into markets so Iranian businessmen can count on a normal fluctuation in exchange rates... so they can export more..and import more without a fear of losing money...
Despite all these Western numbers of Iranian GDP, I and many other economists think that these number never reflect Iranian true economy size... Iran with its unique economical and political structure has many sources of income and production uncounted... Based on estimates there is at least %20 more income in Iran in unofficial, off the records... I say, it is even bigger than %20 as numbers given by businesses are always lower than their reality due to their off the record activities...
There also been a paper suggesting to renew the GDP PPP based with a new more flexible formula that can account all hidden incomes too... I personally worked on such formula for some time... but due to tis complexity I left it stalled for a while...
Based on my personal observations and comparing similar life styles around me... Iranian per capita GDP PPP is at least $22000 to 25000 ... you know, I give you an example...Have you ever wondered how come a simple public servant with a salary around 1.5 to 2 million tomans per year can afford to buy a house and a car and still have investments and little money in bank? You do the math... number of months and years they get paid and their salary plus considering their expenses that far exceed their official incomes...
so, don't listen to the garbage empty chale bazari talk of some illiterate people here... They think because they are a PHD of fazel Ab... then they are the master mind and know everything!!
GDP PPP is real and true... It is the only formula that calculate real wealth... It is like saying Pakistani people are living off a $1500 per capita that means $125 per month... Do they afford to buy let,s say... 25 Mac donalds? what about other expenses!!
A Canadian with $35000 of yearly income can live a life equal to around 1300000 Iranian Tomans in Iran which is equal to around $4700 to $5000 if changed into Dollars!!
I'm not saying Iranian per capita is better than Canadians but its not that different.. believe me... This is the exact reason many Iranian immigrant to Canada, when asked if they feel richer in Canada, they say: Higher Salaries = Higher Expenses ... I personally countered many Iranian diaspora who complain about how wrong they were thinking higher salary numbers decieved them... They complain that they need to work more work in Canada in order to be able to maintain their Iranian life style in Canada...
These are the only numbers that will stay dependent to how much more income are really created in Iran... These number are the only ones who reflect how much wealth you can get in Iran:
Iranian GDP = 1.32 Trillions
Iranian GDP per capita = 17300 Dollars
Iranian Nominal GDP is just a hoax... It was $7500 three years ago... $5000 today... and will be $1000000 if the government flow its post-sanctions dollars into currency market!! These numbers are for fun... and not real...
so, the moral advice... don't ever listen to these goozoos who suddenly are economists beside being an Afghani false flagger!!
