There were some big whoppers in Modi’s propaganda blast on New Year’s Eve, which I sat through so that you, dear reader, would not have to subject yourself to the tedium:
$500 and $1000 rupees notes (the old notes that were banned) were mainstays of the black economy.
That would make the vegetable vendor, fish-monger, housewife, pensioner, and local shop-keeper all “black,” according to monetary moron Modi.
Of course, they are not. What with inflation, those notes are practically staples of normal day-to-day cash transactions: payment of daily wage workers, repairmen, and vendors.
The TV repairman takes Rs. 750 for an hour of repair on the antenna. It would be normal to use a 500 and a couple of 100s for him. TV’s are not signs of great wealth, but widely owned by lower-middle-class and even working-class people. A visit to the hospital, shopping at the vegetable or fish market, repairing a leaky ceiling – all of these would routinely be done with the banned notes.
Demonetization has helped the Income Tax Department uncover more tax-evasion and money-laundering rings.
The Income Tax Department does not need demonetization to conduct raids on suspected tax-evaders. They do that in the course of their normal routine. In fact, demonetization has added NEW rings of money-laundering and enabled corrupt bank officials to make a buck changing black to white. That explains the huge stashes (hundreds of thousands to millions) of the new Rs. 2000 notes being busted all over the country.
The hard part is over. Corruption, drugs, trafficking, porn, and all other evils are based on black money held in cash and they have all suffered a permanent blow. Ramrajya is here.
The largest part of black-money is digitally circulated in and out of India through market avenues such as round-tripping and participatory notes, neither of which was even mentioned in the Modi speech. Black money is parked mostly in foreign bank accounts, in real estate, and in gold and diamonds. Far from helping eradicate corruption, cash bans and digitilization make it much easier for large players (like the government, large corporate entities and criminals) to manipulate and steal money from the ordinary man.
The aam admi’s troubles have only begun. He is being ruthlessly herded, through bribes and threats, into digital platforms for which he and the Indian infrastructure are ill-prepared.
More cash deposited at the banks will bring down inflation.
One of the biggest problems with targeting black-money, is the inflationary consequences of sucking money out of hard assets and foreign accounts. Once in the country, they are bound to increase the supply of money in the country and pump up inflation.
Demonetization just changes the part of the economy where cash circulates.
It moves cash from the informal sector and small businesses to the formal economy and big businesses and government (banks lending to developers and companies).
It penalizes the winners in the free markets (the small businesses) and rewards the losers (developers-government-banks-large corporations) .
It reverses the decision of the market and replaces it with a mandate from the center.
More deposits in banks means more money available against which banks can make loans.
Indeed, recapitalization of banks with huge non-performing assets (bad loans to big industrialists and developers) is one of the real reasons for demonetization, not eradicating corruption – a story put out to hoodwink the public.
One example. Is Modi going after Vijay Mallya of Kingfisher for non-payment of loans? Why, on the other hand, is he unable to waive loans that hard-working farmers have been unable to repay for reasons they cannot control – like the failure of rains?
And why is only Vijay Mallya mentioned in Indian media reports? Mallya is only a front for Rothschild interests….
in the same way that Khodorkovsky was a front for Rothschild interests.
What about the vast public sector loans made to the scion of the Tata drug-running fortune, Ratan Tata, a Rothschild cohort, to purchase over-priced Corus steel (at $12.1 billion) on the advice of N. M. Rothschild, the merchant banker?
The purchase was made at the height of the commodity boom, only 6 years after Corus was a penny-stock.
Tata is another friend of the Rothschilds, getting low-priced loans from Indian public sector banks to help out Corus, and selling his cars in India at twice the price they fetch in the international market.
Corus, originally British steel, foundered on the demands of highly paid unionized British workers, with their plush pensions.
The main problem in India is corruption and dishonesty, a problem of culture, to be addressed forcibly by the government.
Corruption or graft in India, as elsewhere, is a symptom, not a cause of India’s woes.
Behind the symptom is the real cause, which is is not cultural, but political: the replacement of a healthily functioning economy by a system of political patronage run from the center.
In a patronage system, WHO you are and WHOM you know are more important that WHAT you do.
Instead of competing honestly for money, through providing better services, businesses are forced to compete for favor from the political class.
This necessity has dribbled down into the lowest-class from the highest.
Call it trickle-down graft.
Why is the center so influential?
Ultimately, it’s because of the life-blood of the economy – money – is controlled from the bank at the center – the RBI.
Furthermore, behind the RBI is a more remote but far more powerful center – the BIS.
Behind the BIS stands the great central controller, the globalist Rothschild cabal.
The prevalence of corruption in a society thus has little to do with the innate honesty or lack of honesty among people.
In a famous 2013 survey of major cities all over the world, the Reader’s Digest ((not known to be unfriendly to the West) actually found that when money-laden wallets were dropped on the road, the two cities where they were most often returned with the money intact and the reward refused, were Helsinki and Mumbai.
Notably, Helsinki is in Finland, which is ranked at the top of corruption-indices. Mumbai is in India, which is ranked toward the lower end of most corruption indices.
That says a great deal about such indices. It says even more about the divergence between the POLITICAL category of “corruption” and the MORAL category of honesty.
By deliberately confusing the two, practiced RSS propagandist Modi has dressed up a thoroughly political project, a black operation hatched by the Anglo-Zionists, in the swadeshi (home-made) and swachha (white) robes of national health and morality.