Currency Demonetisation and Future course of Indian Economy
Re: Currency Demonitisation and Future course of Indian Economy
Posting from mobile. My normal Internet is down. So will keep it brief.
Discom accepting old notes
Jewellers queue up to deposit cash in fear of raid
There goes the theory that jewellers will bail out Fat cats to any large extent.
Discom accepting old notes
Jewellers queue up to deposit cash in fear of raid
There goes the theory that jewellers will bail out Fat cats to any large extent.
Re: Currency Demonitisation and Future course of Indian Economy
pankajs wrote:Jewellers queue up to deposit cash in fear of raid

This seems to be a "controlled chaos". Lots of sudden and quick moves, which makes people panic. And when people panic, they also do not make very good decisions

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Re: Currency Demonitisation and Future course of Indian Economy
Its moot. JAM prevents them from succumbing to the sharks. This has been thought through at multiple levels. Another thing killed is the 'microcredit'.Sid wrote:Looks like an open season for loan sharks, this may hurt a lot of poor people like farmers/uneducated people. These people are trying to offload lot of this garbage money into the hands of these folks in the form loan.
Re: Currency Demonitisation and Future course of Indian Economy
Sir with respect I think that makes no sense at all. Which builder will take a cheque for the black amount? Doesn't it make the whole exercise of black money futile?JohnTitor wrote: I don't think this is true. I know of big banks that lend on both portions. They issue two cheques when the property is to be registered. One is the white portion, the other black
Re: Currency Demonitisation and Future course of Indian Economy
This is done not to keep Black money, but to avoid stamp duties. They do not register for the entire amount and pay stamp duties. They do part of it and the other part, they take as payment towards amenities but all is accounted.
Re: Currency Demonitisation and Future course of Indian Economy
Here is the full story including from the famous Zaveri bazar. Folks still do not get it. With a determined GOI at the top things will change i.e they will have to change. The previous state persisted because the politico at the top wanted it to stay fluid, slogans not withstanding, so that they could launder their ill-gotten wealth.
http://www.business-standard.com/articl ... 708_1.html
Afraid of tax raids, Jewellers queue up before banks for cash deposits
http://www.business-standard.com/articl ... 708_1.html
Afraid of tax raids, Jewellers queue up before banks for cash deposits
After two days of mad rush to sell gold ornaments with outdated bill invoice, worried bullion dealers and jewellery retailers on Thursday were lined up outside banks for depositing Rs 500 and Rs 1,000 currency notes.
Barring select trustworthy and loyal customers with their previous deposits of cash, jewellers stopped accepting cash from customers in currency denominations of Rs 500 and Rs 1,000 notes. The finance minister’s statement on Wednesday regarding cash transactions and their link with the income declared in annual returns caused worry among jewellers about income raids in the future. Instead, jewellers queued up before bank branches to deposit cash they had accepted in the last two days.
Thus, the popular Zaveri Bazaar here went almost out of business on Thursday, barring few transactions made through debit cards, credit cards or cheques being executed. The sentiment reversed in the last two days, from a very bullish wedding season ahead to a scary and lukewarm buying trend forecast.
"There is no business at all. Normally, jewellery is purchased with surplus cash which vanished suddenly from the market. We expect this sentiment to continue at least for the next six months, till the entire trade is transformed completely from cash to cashless. {Now stop and chew on this for a moment what this means in a business that was always done in cash and was a major money laundering channel, probably next to RE. And then think some more about what this will do to smuggling, etc and who all will get impacted both in India and outside our borders....} Thus, the entire wedding season is going to prove lacklustre this year,” said Kumar Jain, director, Umedmal Tilokchand Zaveri, a bullion dealer and jewellery retailer in Zaveri Bazaar.
Many jewellers, however, have stopped accepting cash since the deadline fixed by Prime Minister Narendra Modi of Tuesday midnight. While business has been very poor since then, all transactions are being done only in cheques or cards.
"We have stopped accepting cash since Tuesday midnight," said Ashok Minawala, director, All India Gems and Jewellery Trade Federation.
Finance Minister Arun Jaitley clarified on Wednesday that all deposits over Rs 250,000 will be reported to the income tax department and would be matched with the income declared by the individuals or corporate. Any mismatch, however, would be considered as tax evasion and would attract penalty of 200 per cent of the balance income tax liability, Jaitley said.
Last edited by pankajs on 10 Nov 2016 17:18, edited 1 time in total.
Re: Currency Demonitisation and Future course of Indian Economy
In the mean while..
SC to hear plea against demonetisation next week
Any clue on how this would end? Are there any legal routes like ordinances/acts which needs to be promulgated before de-notifying a denomination of currency? I don't think Modi & co have missed on these steps if I am to believe the news reports on the "planning" involved here. The court has conveniently moved the case for hearing to be next week (provided the registrar of the court admits this as a plea), and gives it a number for listing.
SC to hear plea against demonetisation next week
Any clue on how this would end? Are there any legal routes like ordinances/acts which needs to be promulgated before de-notifying a denomination of currency? I don't think Modi & co have missed on these steps if I am to believe the news reports on the "planning" involved here. The court has conveniently moved the case for hearing to be next week (provided the registrar of the court admits this as a plea), and gives it a number for listing.
Re: Currency Demonitisation and Future course of Indian Economy
What is that word .... fate accompali or something
And what jurisdiction does SC have on currency matters?
And who in India is protesting the move? Did we see any rally by mango anywhere in India citing difficulties? NONE.
BTW, Madras HC has already rejected such a petition.
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Oh ... btw, while thinking what cashless gold transaction is going to do for the country think of those babus who dare not buy properties with corruption money and also think of the Custom officers ... rather pray for them.
And what jurisdiction does SC have on currency matters?
And who in India is protesting the move? Did we see any rally by mango anywhere in India citing difficulties? NONE.
BTW, Madras HC has already rejected such a petition.
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Oh ... btw, while thinking what cashless gold transaction is going to do for the country think of those babus who dare not buy properties with corruption money and also think of the Custom officers ... rather pray for them.
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Re: Currency Demonitisation and Future course of Indian Economy
The good thing is that apart from the politicos making noise for obvious reasons, the common man on the ground understands the good intention, though not entirely happy with the hassle. So in that sense, its safe to say that the move banning the notes has had good response from the people.
Re: Currency Demonitisation and Future course of Indian Economy
Press Trust of India ✔ @PTI_News
Madurai HC bench dismisses PIL for scrapping notification on #demonetising, says can't interfere in govt policies on monetary system.
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This is exactly what the SC should have done. Perhaps they want to scratch some itch. The SC has unnecessarily started inserting itself in all matters.
Madurai HC bench dismisses PIL for scrapping notification on #demonetising, says can't interfere in govt policies on monetary system.
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This is exactly what the SC should have done. Perhaps they want to scratch some itch. The SC has unnecessarily started inserting itself in all matters.
Re: Currency Demonitisation and Future course of Indian Economy
In BMTC buses, talk is Modi has done fantastic work and many are welcoming it. Even people are okay to face some short term problems, but all are supporting Modi.
Re: Currency Demonitisation and Future course of Indian Economy
If the decision of is unreasonable and arbitrary and against the right of the citizens then it can be struck down by SC. But the present effort is more than reasonable. some 50 days time was given. Restrictions on cash withdrawal are put in place to stop a run on the bank. No one is going to lose their money. All people have to do is to deposit their money in the bank and take new notes of 500 or 2000 or old 100, 50,20,10 notes. Jan Dhan Yojan ensured that large section of people now has a bank account. Further, one can deposit cash with a voter card, Aaadhar Card, etc. in the bank even without any account and change notes. So no one is lost their money. Except of course those who can not show their money on record.Sachin wrote:In the mean while..
SC to hear plea against demonetisation next week
Any clue on how this would end? Are there any legal routes like ordinances/acts which needs to be promulgated before de-notifying a denomination of currency? I don't think Modi & co have missed on these steps if I am to believe the news reports on the "planning" involved here. The court has conveniently moved the case for hearing to be next week (provided the registrar of the court admits this as a plea) and gives it a number for listing.
So the case for not entertaining any PIL is very strong. Further, this is entirely Domine of GOI and RBI, and SC can not do much there unless they want to overreach themselves like before. But if they do it this time that will be against large section of public opinion. Believe me, when I write now judges wants good publicity badly when they want to 5star politics against NM.
Re: Currency Demonitisation and Future course of Indian Economy
Kmkrao sir, I think both of us live in the same city.
Re: Currency Demonitisation and Future course of Indian Economy
http://www.dnaindia.com/money/report-wa ... er-2272058
War on black money: Donations to temples, FDs in co-op banks under government scanner
Most of these folks are invite intrusive scrutiny by going this path. This is exactly the wrong thing to do when you want to dodge the GOI gaze.
War on black money: Donations to temples, FDs in co-op banks under government scanner
So while back dated FDs with supporting documents may not invite immediate response, it will put these individuals on the top of IT list for an intrusive probe. Same with trusts. GOI will keep a hawks eye on the inflows/outflows from such trusts and go for intrusive probe.Hurried donations made to nearly 100 temples and trusts and sudden spurt in cash reserves in nearly 1,000 cooperative banks and credit societies in Maharashtra after Centre's decision to scrap Rs 500 and Rs 1,000 notes have come under government's scanner, a senior state minister said today.
"The suspicious part of the whole rush for temple donations and opening six deposit accounts is that they were triggered immediately after Prime Minister Narendra Modi made the announcement of demonetising currency notes of Rs 1,000 and Rs 500 denomination," the minister said.
The minister, who did not wish to be named, said officials have apprised the state government that there has been a surge in donations to temples immediately after the announcement.
"Some people have tried to secure their unaccounted cash by donating it to temples by taking its management into confidence and making receipt of such donations as anonymous donors," he said.
A similar pattern was applied in some cooperative banks that are associated or directly controlled by politicians, he said.
"Some people having unaccounted cash in lakhs of rupees have managed to secure receipts of opening of fixed deposit account. It was possible because these (cooperative) banks operate locally with handful of branches and cater to local banking needs," the minister said.
"In such cases, the unaccounted cash will turn into white money, if people manage to produce all valid documents.
We have asked officials from departments concerned to keep a tab on any suspicious transaction, donations or deals," he said.
"In most of these banks, works, including issuing receipts, is done manually. As a result, some people managed to get the date of opening of the FD account, as prior to the PM's announcement. To counter such frauds, government will check the unnatural rise in the cash reserves in these banks.
They will be under scanner," the minister added.
Such fraudulent transactions have taken place in over 100 temples and trusts in the state, he said, adding, action will be initiated against those guilty of colluding with the fraudsters.
The government will also monitor the sudden spurt in cash reserves in the nearly 1,000 cooperative banks and credit societies in Maharashtra.
Some temple managements are "close to political parties, making such transactions possible," he alleged.
Most of these folks are invite intrusive scrutiny by going this path. This is exactly the wrong thing to do when you want to dodge the GOI gaze.
Last edited by pankajs on 10 Nov 2016 17:57, edited 1 time in total.
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Re: Currency Demonitisation and Future course of Indian Economy
There goes the railway route to convert B to W

Avishek Dastidar
@avishekgd
#Blackmoney Railways to not give cash but transfer to bank account refunds of Rs 10,000 & above against cancelled tickets. @IndianExpress
Re: Currency Demonitisation and Future course of Indian Economy
No "Sir," I am much younger in age and in wisdom. If you are in Bangalore, we will meet soon sir.Yagnasri wrote:Kmkrao sir, I think both of us live in the same city.
Re: Currency Demonitisation and Future course of Indian Economy
They do not mind if they get money in new currency or through bank. Their main aim to expend the existing Rs. 1000, Rs. 500 notes. They can convert at best some thousand rupees, its good for bragging, but not useful monetarily.putnanja wrote:There goes the railway route to convert B to W![]()
Avishek Dastidar
@avishekgd
#Blackmoney Railways to not give cash but transfer to bank account refunds of Rs 10,000 & above against cancelled tickets. @IndianExpress
Just noted this 1-hour stale Tweet.
ABP News @abpnewstv
Just In: Western Railway stops issuing wait-listed AC class tickets
Last edited by kmkraoind on 10 Nov 2016 18:08, edited 1 time in total.
Re: Currency Demonitisation and Future course of Indian Economy
Now SSena is upset with Modi on currency exchange. Seems a major portion of their pile is going to go worthless.
Re: Currency Demonitisation and Future course of Indian Economy
is there a fake paki note problem in pakistan as well? if not then shame on INdia.
Re: Currency Demonitisation and Future course of Indian Economy
And stock markets(after the initial jitters yesterday) has reacted positively today 
http://www.business-standard.com/articl ... 785_1.html

http://www.business-standard.com/articl ... 785_1.html
Re: Currency Demonitisation and Future course of Indian Economy
First let's understand what "black money" is. It is legitimate "white money" earned by salaried people,entreereneurs,professionals,et al,in the course of their daily business that they have to pay to the political-babu classes for getting their legitimate rights done.Getting documents,tel,elec,water,connections,pensions,payments from govt. departments,etc.,etc. In the real estate industry,bribes are demanded from every desk in corporations and municipalities for approvals for simple dwellings to large projects with loot going all the way upto the very top.
This is NOT fake money printed in Pak!
Now with demonitisation,a large % of this once legit money will be worthless and the nation much poorer in the bargain. The disruption to business will be in the billions. Real estate is doomed for a long time.Even for affordable housing,where is the land? Who will now sell land devalued and at least 3--40% lower in value? The problem and silver lining in "black money" in India is that unlike most firang nations,the politicos keep their loot stashed away abroad,Panama,Bahamas,Switzerland,Cayman Islands,etc. Our political jokers prefer it in the states where they have infuence and control,and invest it in land and other methods,so that ultimately,something comes back to the local populace by way of this "grease" keeping the eco machine in motion. This is what saved India when the global meltdown took place.Oncewe are fully linked to the global eco machine,manipulations by western bankers,speculators like Soros,etc. will devastate the Indian economy when firang investors pull out their money. In future,our corrupt class will stash their moolah abroad and more large lucrative contracts will be given to firang entities who can facilitate such kickbacks.
I ask the foll. 10 questions:
1.Will our political class and babudom change character overnight? Not a snowball's chance in hell!
2.Will our ministers and babus stop asking for bribes?
3.Will every desk in govt. depts. send up files asap instead of the usual delays until they're "fed"?
4.Will every policeman and police station carry out their duty strictly according to the law?
5.Will the Hon. judges cease "to meet lawyers (touts) in their chambers"?
6.Will landowners accept money for their lands only by cheque?
7.Will developers pay them only by cheque?
8.Will Indian taxpayers in future,esp. traders,etc.,reveal their true income to the IT Dept.?
9.Will Pak stop printing fake Indian currency?
10.Will govt. contracts be given fairly and kickbacks stopped?
If you have or know the answers to these Qs ,you will know the utter futility of this scheme.Just wait until the new notes are in circulation.It will be business as usual. In the meantime a lot of Indian hard-earned wealth would be worthless.
Remember,that "the road to hell is paved with good intentions".I have no doubt that Mr. Modi's intentions were good.Black money and corruption is a great drawback in India,but like the fish,which rots from the top,corruption at the top must be stopped first before it can trickle down to the masses.
PS:Unless every paisa of govt. money spent is spent on the projects alone and kickbacks ended,this entire exercise will be worthless.Indian citizens are heavily taxed to support the inefficiency and corruption of the govts. in the states and at the centre. How many taxpayers are there in the entire nation? The scheme of getting bank accts. for rural folk is most laudable, but unless the bureaucracy is drastically reduced in number,red tape hugely reduced,Indian industry and commerce will remain stunted.Just see where we are rated in the international lists and rankings of doing business,corruption,etc.,etc. It is primarily the babus who advise and facilitate corruption for the ministers.
Massive raids on babudom,etc. must be carried out first before "taxing" the common man.Fat chance of that happening!
This is NOT fake money printed in Pak!
Now with demonitisation,a large % of this once legit money will be worthless and the nation much poorer in the bargain. The disruption to business will be in the billions. Real estate is doomed for a long time.Even for affordable housing,where is the land? Who will now sell land devalued and at least 3--40% lower in value? The problem and silver lining in "black money" in India is that unlike most firang nations,the politicos keep their loot stashed away abroad,Panama,Bahamas,Switzerland,Cayman Islands,etc. Our political jokers prefer it in the states where they have infuence and control,and invest it in land and other methods,so that ultimately,something comes back to the local populace by way of this "grease" keeping the eco machine in motion. This is what saved India when the global meltdown took place.Oncewe are fully linked to the global eco machine,manipulations by western bankers,speculators like Soros,etc. will devastate the Indian economy when firang investors pull out their money. In future,our corrupt class will stash their moolah abroad and more large lucrative contracts will be given to firang entities who can facilitate such kickbacks.
I ask the foll. 10 questions:
1.Will our political class and babudom change character overnight? Not a snowball's chance in hell!

2.Will our ministers and babus stop asking for bribes?

3.Will every desk in govt. depts. send up files asap instead of the usual delays until they're "fed"?

4.Will every policeman and police station carry out their duty strictly according to the law?

5.Will the Hon. judges cease "to meet lawyers (touts) in their chambers"?

6.Will landowners accept money for their lands only by cheque?
7.Will developers pay them only by cheque?
8.Will Indian taxpayers in future,esp. traders,etc.,reveal their true income to the IT Dept.?
9.Will Pak stop printing fake Indian currency?

10.Will govt. contracts be given fairly and kickbacks stopped?
If you have or know the answers to these Qs ,you will know the utter futility of this scheme.Just wait until the new notes are in circulation.It will be business as usual. In the meantime a lot of Indian hard-earned wealth would be worthless.
Remember,that "the road to hell is paved with good intentions".I have no doubt that Mr. Modi's intentions were good.Black money and corruption is a great drawback in India,but like the fish,which rots from the top,corruption at the top must be stopped first before it can trickle down to the masses.
PS:Unless every paisa of govt. money spent is spent on the projects alone and kickbacks ended,this entire exercise will be worthless.Indian citizens are heavily taxed to support the inefficiency and corruption of the govts. in the states and at the centre. How many taxpayers are there in the entire nation? The scheme of getting bank accts. for rural folk is most laudable, but unless the bureaucracy is drastically reduced in number,red tape hugely reduced,Indian industry and commerce will remain stunted.Just see where we are rated in the international lists and rankings of doing business,corruption,etc.,etc. It is primarily the babus who advise and facilitate corruption for the ministers.
Massive raids on babudom,etc. must be carried out first before "taxing" the common man.Fat chance of that happening!
Last edited by Philip on 10 Nov 2016 18:38, edited 2 times in total.
Re: Currency Demonitisation and Future course of Indian Economy
I was there for six years. Now I am not in Garden City but in Money bag city.kmkraoind wrote:No "Sir," I am much younger in age and in wisdom. If you are in Bangalore, we will meet soon sir.Yagnasri wrote:Kmkrao sir, I think both of us live in the same city.
Re: Currency Demonitisation and Future course of Indian Economy
I wish they would make plastic currency like that of UK and Canada.That would be very hard to forge!
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Re: Currency Demonitisation and Future course of Indian Economy
What percentage of the black money will be simply destroyed vs. being deposited? Thankfully I have NO black monies and am not worried. However some family members who had lent some of their savings on loan are really worried those loans are gone. Must be 10-20% of the total. Unfortunately the country is full of hypocrites and I don't see the man with balls of steel being reelected.
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Re: Currency Demonitisation and Future course of Indian Economy
Also capital misallocation will reduce. Jens Weidman of Bundesbank a few months back gave a talk at BIS about importance of cash to German economy. The next step rationally should be to demonetise gold. I dont know if the goverment will do that. This incredibly awesome move is IMO a part of a much bigger plan. If govt. demoetises gold before the end of their tenure in 2019, I would say the government is preparing for a reset.Suraj wrote:
The most important thing is that significant amounts of currency come back into the government's control . It dramatically improves GoI's abilities, stocking them with a massive deposit infusion (note, there's a withdrawal limit, but a larger or no deposit limit) recapitalizing the entire financial system. It also lets them control monetary policy that much better, because 'the cash is back in the bank' .

Re: Currency Demonitisation and Future course of Indian Economy
Gold is more a store of black money than a medium of exchange. While BM can be converted and stored as gold, I don't see it being a BM transfer mechanism. The issue is trust - you can't guarantee the purity of the gold or that the shiny thing is gold itself. My mother used to only go to a specific small jeweller even though there used to bigger shops that offered it cheap. So, it is going to be quite impractical is my take.kvraghav wrote:Gold might become parallel currency now. Somehow, we have to curb this. May be make id proof mandatory for all gold purchases or put 15% sales tax.
Re: Currency Demonitisation and Future course of Indian Economy
Note that NaMo made this move *after* the amnesty window (till Sept 30) was over. If he only wanted to bring money back to the system, the smarter thing would have been to abolish 500/1000 rupee notes while the declaration amnesty window was still on. Then, the Govt would have been flooded with declarations far in excess of what happened. That would have been a proper carrot-and-stick policy.chandrasekaran wrote:I don't think prosecution is Modi's intent. Its simply impossible given the numbers involved. He would be quite happy and content with #1. The money coming into the banking system, which by itself is HUGE
#2. Catch the biggest top 10 fishes (I am sure 7-8 will belong to Congoons + their coitre) and keep them tied down till atleast 2019.
But what NaMo did is quite stunning. During the amnesty window, they only did some raids to show the seriousness. But the sting in the tail is displayed only now, when all avenues are closed. He really wants them destroyed.
I also suspect they have been exchanging information with foreign countries and gotten a lot of information that they have been holding very close to the chest till now. It will probably unleashed at an appropriate time or leaked deliberately (like panama papers).
Re: Currency Demonitisation and Future course of Indian Economy
Now, the floor has been wiped clean by PM Modi. We don't want the black muck being deposited again in the dark corners or in the cracks of the floor. So, Modi should give out a rumour another demonitisation will happen again in another 2 years. Even a rumour that govt. might do this at anytime soon will force everyone to deal in white.
Re: Currency Demonitisation and Future course of Indian Economy
A couple of years ago, me and SHQ visited a store in BLR of a well-known jewellery chain that was advertising a discount on the purchase of gold. We wanted to buy some coins for "investment". I wanted to pay by card, but they said that they will only accept card if the amount is *less* than 10K. Everything above needs to be cashpankajs wrote:Here is the full story including from the famous Zaveri bazar. Folks still do not get it. With a determined GOI at the top things will change i.e they will have to change. The previous state persisted because the politico at the top wanted it to stay fluid, slogans not withstanding, so that they could launder their ill-gotten wealth.
http://www.business-standard.com/articl ... 708_1.html
Afraid of tax raids, Jewellers queue up before banks for cash deposits"There is no business at all. Normally, jewellery is purchased with surplus cash which vanished suddenly from the market. We expect this sentiment to continue at least for the next six months, till the entire trade is transformed completely from cash to cashless. {Now stop and chew on this for a moment what this means in a business that was always done in cash and was a major money laundering channel, probably next to RE. And then think some more about what this will do to smuggling, etc and who all will get impacted both in India and outside our borders....} Thus, the entire wedding season is going to prove lacklustre this year,” said Kumar Jain, director, Umedmal Tilokchand Zaveri, a bullion dealer and jewellery retailer in Zaveri Bazaar.
Many jewellers, however, have stopped accepting cash since the deadline fixed by Prime Minister Narendra Modi of Tuesday midnight. While business has been very poor since then, all transactions are being done only in cheques or cards.
"We have stopped accepting cash since Tuesday midnight," said Ashok Minawala, director, All India Gems and Jewellery Trade Federation.

I have this very nice feeling of schadenfreude right now ...
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Re: Currency Demonitisation and Future course of Indian Economy
Primus ji,Primus wrote: I agree with you completely, it is time for a change. Corruption, one of the greatest evils facing India needs to be weeded out.
While I do not disagree with the essence of your argument, I would state that the root cause of many ills boils down to the limited understanding of the role of money. Corruption is not an evil. It is natural outcome of what is systematic debasement of the 3 functions of money.
Sometime back I posted this viewtopic.php?f=24&t=5556&start=360#p1861005
Cash is for spending. Money is for saving. The understanding of this clears up many issues. Its like a fractal with infinite resolution.If people buy into a mania that houses always go up in price, its primarily due to the Laziness to do their own due dilligence. They dont want to understand why prices are rising, they know if my neighbour can make money by flipping houses, why shouldnt I? They see inflation in all those things they need, while remarkable returns in all those things they dont need. Why would someone have multiple properties? Because parking money in a house, gives inflation beating returns. Thats true for stocks, bonds, warrants and even the innocent public provident funds. We want to save, thats it. We would rather not risk capital ( seeking returns to keep up with inflation).
But we do. Because the fiat currency, still acts like a store of value.
Separate this third function from the other 2 and you wont have this conundrum. How many man hours are spent by rakshaks to keep up with the inflation? Its a lot, quite assuredly. If that time ( money) was spent pursuing something of value, anything perhaps excellence, life would be less complicated more rewarding. The division of labour would keep everyone equitable depending on one another, rather than live detached from the reality. I am not suggesting an utopia. I am not an idealist either. But a world where the money is just money, nothing else is a better world.
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Re: Currency Demonitisation and Future course of Indian Economy
Philip wrote:First let's understand what "black money" is.
This is NOT fake money printed in Pak!
<snip>
I ask the foll. 10 questions:
First of all your questions are rhetorical and bordering on trolling. Secondly right answers will not convince you. Still will try. Also for serious question u go easy on emoticons.
1.Will our political class and babudom change character overnight?Not a snowball's chance in hell!,
reply-1, so doing nothing is your suggestion? This is the beginning of a cashless economy, this is a kick in the balls to corrupt, and just the beginning, not a final solution, do you even get it?
2.Will our ministers and babus stop asking for bribes?
See reply 1
3.Will every desk in govt. depts. send up files asap instead of the usual delays until they're "fed"?
See reply 1
4Will every policeman and police station carry out their duty strictly according to the law?
See reply 1
5.Will the Hon. judges cease "to meet lawyers (touts) in their chambers"?
See reply 1
6.Will landowners accept money for their lands only by checque?
See reply 1
7.Will deveoplers pay them only by checque?
See reply 1
8.Will Indian taxpayers in future,esp. traders,etc.,reveal their true income to the IT Dept.?
See reply 1
9.Will Pak stop printing fake Indian currency?
What would you have said if India were to stop printing currency and had asked Russia to print instead, jumping in joy with vodka in both hands and sing "my name is Anthony Gonsalves"?![]()
10.Will govt. contracts be given fairly and kickbacks stopped?
see reply 1
If you have or know the answers <snip>
![]()
Re: Currency Demonitisation and Future course of Indian Economy
What human resources do you need for an algorithm to flag the bank accounts?MohdKav wrote:You are forgetting one important part, IT department simply doesnt have the human resource.Suraj wrote:When the money's in the bank, the bank gains control over what it can do with it, and have easily analytical visibility into deposit patterns. GoI can easily flag patterns of abnormal high value deposits into subsets of PMJDY accounts and send the ED personnel over . No poor guys going to go for 5% on the behalf of the rich fatkat .
In the end all these are just creative ways for people with hidden BM to get themselves caught . More people involved - more points of failure .
Re: Currency Demonitisation and Future course of Indian Economy
https://youtu.be/W-Bjw_SFNdM Check this out for a good analysis on demonetization from Anand Rathi Brokerage. Especially the first 10 mins.Marten wrote:What percentage of the black money will be simply destroyed vs. being deposited? Thankfully I have NO black monies and am not worried. However some family members who had lent some of their savings on loan are really worried those loans are gone. Must be 10-20% of the total. Unfortunately the country is full of hypocrites and I don't see the man with balls of steel being reelected.
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Re: Currency Demonitisation and Future course of Indian Economy
You make a lot of sense. 2K notes are introduced to meet the initial demand. There was no way the govt could have printed so many 500 notes without anyone's suspicion. Nor printing 100 notes was a solution nor they want to print so many notes henceforth. So yes, this is just an interim solution till the dust settles. We can expect the 2K notes being withdrawn in few years max.KarthikSan wrote:
I think the 2K note is to manage the first few weeks of currency demand. Here in Coimbatore, I went to one private bank early in the morning and deposited my old notes and requested withdrawal of 10K from my existing balance. They literally pleaded with me to come back tomorrow as they did not get enough currency to support demand. I told them I was in the same situ and was down to my last 100rupees. They then gave me 5x 2K notes and said that this is the only currency they have. I then went to a PSU bank and they were better off but they still had issues filling the demand for 100notes. So they gave me 100x 50, 2x 2K and 10x 100.
The 2K note is easier to handle the initial surge as panicked public tries to exchange old notes. I think it will be slowly withdrawn through regular mechanisms.
On another note....public were very civil at all banks here and were even willing to accommodate old/disabled people jumping into lines even though the crowd was good. They all wanted a glimpse of the new 2K note and one guy even took a video of moi holding my note. They were very cheerful and the excitement at something good happening was quite palpable. The bank staff were also very courteous even with the huge strain on their resources. I think even the cats on the wall have started slowly understanding what NaMo is all about.
Re: Currency Demonitisation and Future course of Indian Economy
BC kya chutiyapa hai ??Philip wrote:. In the meantime a lot of Indian hard-earned wealth would be worthless.

Maybe I should stop drinking Russian vodka. Side effects are not worth it.
Re: Currency Demonitisation and Future course of Indian Economy
Bhell .... the shock and mmmaaaa..aaaa...aaaa... tactic continues ....
http://indiatoday.intoday.in/story/inco ... 07628.html
Income Tax raids in Delhi, Mumbai to find banned 500 and 1000 rupee notes
In the wake of demonetisation of currency, the Income Tax department conducted multiple raids in Delhi, Mumbai and other cities to find people hoarding large amounts of the now illegal 500 and 1,000 rupee notes.
Jewelers, money exchange operators or hoarders and those who are in the business of exchanging old cash with new notes on commission basis are the prime targets.
One of the effects of demonetisation of high currency notes of high valuation is that hawala racket in Mumbai has become jobless for a week the least. The hawala business has come to a halt as no transaction is likely to take place.
The Angadia operators too are badly affected in Mumbai after the demonetisation of Rs 500 and Rs 1,000 notes. Angadias are mainly used by the diamond, gold and garment traders.
Long queues were seen outside banks across the country today morning after Prime Minister Narendra Modi on Tuesday said that 500, 1000 rupee notes were being abolished to crackdown on black money and money-laundering.
http://indiatoday.intoday.in/story/inco ... 07628.html
Income Tax raids in Delhi, Mumbai to find banned 500 and 1000 rupee notes
In the wake of demonetisation of currency, the Income Tax department conducted multiple raids in Delhi, Mumbai and other cities to find people hoarding large amounts of the now illegal 500 and 1,000 rupee notes.
Jewelers, money exchange operators or hoarders and those who are in the business of exchanging old cash with new notes on commission basis are the prime targets.
One of the effects of demonetisation of high currency notes of high valuation is that hawala racket in Mumbai has become jobless for a week the least. The hawala business has come to a halt as no transaction is likely to take place.
The Angadia operators too are badly affected in Mumbai after the demonetisation of Rs 500 and Rs 1,000 notes. Angadias are mainly used by the diamond, gold and garment traders.
Long queues were seen outside banks across the country today morning after Prime Minister Narendra Modi on Tuesday said that 500, 1000 rupee notes were being abolished to crackdown on black money and money-laundering.
Last edited by pankajs on 10 Nov 2016 19:39, edited 1 time in total.
Re: Currency Demonitisation and Future course of Indian Economy
Demonetisation: I-T conducts raids in Delhi, Mumbai, others
This seems to be another 'surgical strike'. One bomb is blasted first, and GoI knows where all the trouble makers would run next. Give them the time to settle down & try their tricks there, and then attack that place as well
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This seems to be another 'surgical strike'. One bomb is blasted first, and GoI knows where all the trouble makers would run next. Give them the time to settle down & try their tricks there, and then attack that place as well



Re: Currency Demonitisation and Future course of Indian Economy
Will this lead to deflation or much lowered inflation 6/7 months down the line remains to be seen.
I did some analysis of previous demonetization under Morarji Desai in 1978 and to my surprise there was hardly any impact on inflation. In fact CPI went up slightly.
Here is the link :- http://www.inflation.eu/inflation-rates ... -1970.aspx
But then 2016 economy has a very different dynamics ... Digital economy and all
I did some analysis of previous demonetization under Morarji Desai in 1978 and to my surprise there was hardly any impact on inflation. In fact CPI went up slightly.
Here is the link :- http://www.inflation.eu/inflation-rates ... -1970.aspx
But then 2016 economy has a very different dynamics ... Digital economy and all
Re: Currency Demonitisation and Future course of Indian Economy
It is now clear that Modi wants to change the habit of BM in some Indians. Otherwise there would have some amnesty like before. This is Rudramurti of Modi. He will loose 5% of the corrupt vote but gain trust of the rest.