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Byline: Jerry Guo

Mahmoud Ahmadinejad is facing mounting problems at home, from disgruntled hardliners and senior clerics to continued criticism from the Green Movement opposition. Perhaps more dire, the Iranian president may need to cut $100 billion in government subsidies, partly as a result of this summer's new sanctions, aimed at forcing Iran to come clean on its nuclear programs. But in New York last week for the U.N. General Assembly, he remained defiant. He sat down with NEWSWEEK's Jerry Guo in an exclusive interview. Excerpts:

Are you ready to return to negotiating a nuclear-fuel swap? We have always been prepared to talk. In order to talk the other party …