Modi’s demonetisation announcement: The Great Daylight Robbery

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Narendra Modi’s decision to ban 500 and 1000 rupee notes is the boldest move by a Prime Minster in recent times. India is stunned. We are being told that the problem or corruption and black money has been solved in one masterstroke by a government that failed to get the fabled 15 lakhs into our accounts, failed to expose those who stashed money in tax havens, failed to name those who have defaulted on loans.

BJP workers and the saffron party’s cheerleaders in media, particularly TV channels, are singing hosannas and many celebrities, especially those from weak-kneed movie industry, are loudly joining the chorus.

Great Daylight Robbery

Almost everyone agrees that India needs to get rid of higher denomination notes to:

a. end black money

b. end cash economy (which is not necessarily black)

c. deal with fake currency.

So will it? Will the gambado that staggered the nation really end black money? No.

Have a look at wealth distribution in India – the top 30% own 90% of India’s wealth. These people aren’t exactly sitting with cash piled up under their beds. They have invested their black money in jewelry, property, tax havens and a number of safety nets.

None of this is coming back into the tax paying economy unless you jail these racketeers but our governments don’t even reveal their names, forget act against them. Even the spare change they have lying around, most of these super rich would rather burn than explain.

preeti

The bottom 70% are the ones who don’t have black money, but yes they are the ones who are part of the cash economy. They get their pitiful earning in cash, they borrow cash, they save cash if they can, they spend cash. These are the people who are going to be hardest hit.

As we speak, farmers in Maharashtra are being tricked – they are being told that 500 and 1000 rupee notes are scrapped. They are being offered 50 and 100 rupee notes for them. Comprehend? One 100 rupee note for one 1000 rupee note! Even if you ignore how blindly these poor people are going to be cheated and pat yourself for getting their money into the bank, remember it’s not even 10% of the total wealth.

Really unromantic of me isn’t it, liberal pacifist that I am, (these are slurs in India today) to keep harping about these poor folks. Like they matter.

Leave the top 10% out as nothing affects them. Let’s address the next 20% who are doing all the chest thumping right now. 14 lakh crore or $217 billion, that’s 86% of the value of Indian currency currently in circulation, has become useless.

Imagine the strain on the economy to replace 86% currency. Yet we would all stoically bear the stress of this transition if the notes were going to be done for, for good. But no. Now we will have 2000 rupee notes in circulation, twice the ease of moving cash around.

While we scrape whatever little cash we have and deposit it in banks, the super rich will make huge withdrawals soon, they know how to gold plate expenses and push it back into their dark world.

Just a matter of time by which they put us back on the merry-go-round again. Other news for this educated, Modi loving elite is that on the short term stock markets will be volatile. Gold and property costs will spiral. In the long term, cost of labour which we so cheaply enjoy will go up. Small traders and hawkers who will get hit in the next few cash trapped weeks will get wiped out, which will in turn add to inflation.

Which brings us to the point – why? Why did Modi do this?

Last two and half years have totally eroded Modi’s credibility. He has failed to deliver on a single poll promise – from One Rank One Pension for the Armed Forces to bringing black money back from Swiss Banks. He is now seen as divisive, petty, vindictive person whose designer clothes and teleprompted, election style, speeches are being met with contempt. He badly needed a divertissement.

He first tried Surgical Strikes but pathetic attempts to steal credit soured the glamour. His cronies probably advised him to change the discourse and he put all his credibility at risk in this foolhardy venture. However, this may well turn out to be his worst nightmare which will cost him dear.

Problem is it will cost the country dearer. This decision is as ill advised, intemperate and unwarranted as Sanjay Gandhi’s forcible sterilization program – only it’s much larger. It has brought us to the brink of precipice and only time will tell if we plunge to our death or survive this gamble.

(The author is an AAP spokesperson. The views expressed here are solely the author’s own. The facts and opinions appearing in the article do not reflect the views of Janta Ka Reporter and Janta Ka Reporter does not assume any responsibility or liability for the same)

20 COMMENTS

  1. Makes sense, coming from an AAP spokesperson. All your party wants to do is pull the government down on whatever they do. You claim that pm modi failed to deliver on his promises, while the truth is that each of his decisions so far have been a little step in the direction of fulfilling those promises only. Which you clearly fail to see ( or simply won’t accept because modi is from a rival party). Agreed, every bold decisions will have some negative impact too, but it is the positives that are more important.

    • It’s okay, this is democracy, it;s okay to question things, and not be a turkey putting it’s head under the ground.

      You will blindly jump into the ocean if Modi says that it will save the economy?

  2. I believe that many of black money owners have already invested their black money in safe places, but there are still equally many people hiding their black money in homes or bank locker, it’s the fact. FYI, I saw PM Modi’s decision impact on my neighborhood.

    So, I would tell the ignorant author of this post that your research is half correct and at the same half shows how judgement you are.

    Let me tell you how this decision benefited so far:

    1, Moral of middle class families are very high at this moment who are running their families with honestly earned money. Saying because I belong to middle class and have seen my father happy.

    2, Check in terror activities to Large extent, at least for as short period as one year, it’s huge duration and govt. Can also make it’s strategy for better check on terror.

    3, As PM said that black money is constraint to remove poverty and that’s a fact also, as a CA student I can understand this problem. New notes along with various schemes (Which increases the nation’s productivity, like: Increment in jobs due to Make in India initiative, Skilled labor programs, easy access to loan to SME) will surely help in removing property, maybe not completely but to some extent.

    I used to be a AAP supporter too when Kejriwal apologised for leaving the office and fighting election For CM second time. But now no More supporter I am because of cheap Congress style politics he is playing.

    Kejriwal ko mai nayak movie ka ‘Anil Kapoor’ Socha tha wo literally ‘AMRISH PURI’ nikla.

    I hope you will be able to allow this comment to remain in comments section.

  3. As an economist myself i can safely tell you. Please use the gift that god has given you in your skull. Modi or not this is a brilliant move. You can’t clean everything thing in one go but he has done atlest something. As for the article that you have written I praise you for your fiction writing. They have put posters in vernacular languages explaining the money exchange. And poor or rich everyone needs to file IT.

  4. When all leading financial experts agree and appreciate, only few good for nothing jealous political parties as usual anti Modi on any issue out in open to shamelessly criticize. Their approach is “Neither I will do nor allow others to do” Just Condemn and criticize those who do good for the country.

  5. If the author is such a genius please come up with a better solution to curb black money and fake notes and advise them and the Nation convincingly. Does the author mean to say that this problems of Black money should not be addressed any time and the wealth Gap should go wide. I presume the author must be a blind supporter of low class non-realistic politics aiming vote bank politics . For a middle income salaried class like me wants my hard earned money to have a worth of it and for that this kind of Bold steps are inevitable.Hats-off to Modiji. The author can peacefully wait for the next surgical strike by modi and that will bring more surprises….

  6. Pathetic piece of writing . Is there a Way to take it OFF the Internet , so that such baseless negativity does not flow further. I mean .. Please !!! Hope the comments have given you a lesson NOT TO INDULGE in such Anti nationalist activities dear author.

  7. Corrupt attitudes can not be changed overnight,
    These type of people will certainly try to find loopholes in the rules! But instead of appreciating bold decisions
    Finding faults in every decision with missionary zeal is pitiable!!! people know it well!!
    Rise above party politics!!!!

  8. Bhai why are you digging your own grave..support the good move and be a part of it. As if we don’t understand that AAPtards like you are trying to put fear in the minds of poor financially illiterate people. The more aggressive you become against a popular and good action, the near your end is.

  9. No logic !
    Simple math shows no one have 1000 bill in the 10% categories. Do some analysis on your own number before writing junk. Per person with current population count it is coming around $1.623. Which comes around 107 Rs.

  10. No amount of changing newly designed money will change corruption of India.

    Politicians are fully corrupt, operating in blackmoney, from BJP, Congress to CPM

    All are corrupt in government offices too, any paper you want to move? Pay bribe. Any thing you want to do with government? Pay bribe to minister in crores of rupees. Any documents from government? Pay bribes.

    Entire economy is run in black money.

    Not surprised, people who call Aapturd or Aaptard, are either turd or retarded and call themselves economists, and educated.

    They are basically rednecks of USA. They are just butthurt at every criticism.

    These issues are too difficult to digest because they have accepted it as the part of their lives.

  11. Finally, an honest, courageous article that tells it like it is. The writer deserves to be congratulated for speaking out against this loathsome demagogue (Modi) and the legion of sewer rodents committed to loving their repellent turd of a ‘leader’ regardless of what he does and attacking anyone who dares to point out the obvious. The rodents are clearly well represented in this comments section.

  12. This is one of the boldest and awesome move by Modi. I have seen the impact of this decision in my neighborhood , people are having lakhs of cash but not bank account, earn lakhs in a month but no IT return…for salaried people like us, it’s a best decision so far to eradicate corruption.. Ghuskhor babu log and neta ki to lag gayi Bhai…. Sorry for the farmersand, Poor n small street side vendors but they have plenty of time to open a bank account and deposit their hard earned money….at least they will learn to do the transaction through bank which is the safest way..which will make their n country’s future bright..

  13. If the common man is going to suffer why is he/she not complaining and why are bank staffers working overtime so eagerly? The Indian farmer is not so stupid to take a Rs100 rupee note for his 1000 rupee note. If he is so poor how come he has a 1000 rupee note to exchange? The really poor are not affected AT ALL because all they earn (thanks to black money mafia in construction) is Rs 100 per day, the best note to have in your pocket in this demonetisation drive. Real estate has already started dropping drastically. Black market hoarders are USED TO roaming around in flashy cars and high style living. Now they will have no cash to do the same as their currency is invalidated. If they put it in a bank, they will be fined twice the deposit and be under scrutiny for the rest of their lives so they will rather burn it than face the penalty. Without that black money floating around real estate prices which are one third legal tender and two thirds black money will come down to their true ONE THIRD of present quoted rates in no time as the high style living black money crooks will not be able to bare the shame of poverty…so they will sell for whatever they can get from honest folk. All crooks will be now out of the buying market but in time after 7 years or so, new black money will enter the market, mostly from government authorities extracting bribes from public for services required such as permits to build etc….eventually all black money can be traced to one source…corrupt governments, and other government related appointments such as magistrates, judges etc…unless these are flushed out via sting operations down the road, even five years from now we will be back where we started. However if you need a home, wait for a few months in the New year…you will be able to pick one up for a song…buy in the country so you can grow your own food and live happily with internet connection as our food will continue to be poisoned with pesticides, fungicides etc so it’s best to grow your own. That’s my advice to the younger generation. I personally feel the best governance is NO GOVERNANCE. But for that I am just a dreamer….it will never happen.

  14. bro mere pass 100rs the jo main 4 din se use kr raha hu……kiraye ke rupye nahin hai………..bank main note nahin hai….atm band padhe hain……tum baat krte ho………jab arrangements nahin the to moddi-moddathe ne ye decision llya ku…………….sala bewakoof…..ab japan bhaag gaya nuclear elements ki bheekh mangane…….

  15. The common men have seen the surgical benefits
    in crude oil prices and now demonetization. The common men will remain sufferers while the ruling class and big industrialists will enjoy the wealth of our nation world over.

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