Category Archives: War On India

House Panel Castrates Itself For Modi

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From India Today, comes news that the Public Accounts Committee (PAC) Panel has contradicted the statement of its chairman that Modi can be called before it to explain demonetization.

The contradiction comes following a strong protest lodged by a BJP member of the PAC with the Lok Sabha (Lower House) speaker:
“The PAC statement says that under the rules, “officials may be called to give evidence in connection with the examination of the estimates and accounts in a particular Ministry, Ministers shall not be called before the Committee either to give evidence or consultation:

QUOTE

  1. The PAC statement, however, further reads that the chairperson of the committee “may have an informal interaction with the Minister”.
  2. The PAC statement in interesting in the view of chairman K V Thomas’s stand that PM Modi Modi could be summoned if the panel is not satisfied with the responses of RBI governor Urjit Patel and finance ministry officials on demonetisation.
  3. Earlier, a BJP member of the PAC registered protest with the Lok Sabha speaker against the statement made by Thomas.
  4. On his part, Thomas cited precedents of PAC summoning union ministers during the chairmanship of senior BJP leader Murli Manohar Joshi, who wanted the then PM Manmohan Singh to appear before the parliamentary panel in connection with 2G and coal scams.
  5. Thomas also cited a 1996-example when the then agriculture minister C Subramaniam appeared before the committee over a CAG report.
  6. In 1992, the then finance minister Manmohan Singh faced PAC over Harshad Mehta stock exchange scandal.
  7. RBI Governor Urjit Patel is slated to appear before the PAC over demonetisation on January 20.

    END QUOTE

RBI: DeMo Disclosure Endangers Life, National Security

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From Gulf-News:

India’s central bank refused to share specific details of Prime Minister Narendra Modi’s ban on high-value banknotes citing danger to life and national security, as the mystery deepens over who took the unprecedented decision.
The Reserve Bank of India recommended the move, which was accepted by the cabinet and announced by Modi on November 8, Power Minister Piyush Goyal told parliament in November. The RBI board approved the ban three hours before Modi’s speech and hadn’t discussed the matter before, a slew of responses to Bloomberg News’s Right to Information requests show.
However, the RBI told a lawmakers’ panel this week that the government had “advised” the monetary authority to “consider” the ban a day before the RBI board made its recommendation. The government then “considered the recommendations” and decided to withdraw the notes, culminating in Modi’s address that blindsided the nation.
The cloak of secrecy that has shrouded the currency ban decision is likely to bolster the view that authorities, both on Mint Street and in New Delhi, were not prepared for such a decision and the way it was announced. It risks undermining perceptions of the central bank’s independence and raises questions about Modi’s decision-making style and his communication with the RBI.
More clarity may emerge when RBI governor Urjit Patel deposes before a parliamentary committee on January 20. Details are essential to help assess the success of the shock move as well as gauge the impact of the decision on Asia’s No 3 economy.
“It is very perplexing that the RBI doesn’t answer questions about how the decision was arrived at,” said Shilan Shah, Singapore-based India Economist at Capital Economics. “There are concerns that in the whole process the RBI has been sidelined by the government and that raises questions about its independence,” he said, adding that authorities have not been transparent. Bloomberg News asked the RBI 14 questions between December 8 and January 2. The central bank as of January 11 had answered five, disclosing the date and time of the RBI’s board meeting and the fact that the board had never discussed demonetisation before November 8. It said it doesn’t have information to answer one question, on how many of the worthless notes have been deposited at commercial banks. It transferred two questions on printing of new notes to organisations that manage the presses. The RBI said that a question asking “what prompted the board to discuss and approve the withdrawal of notes” doesn’t come under the definition of “information” under the RTI Act. It provided different answers to a question asked three times, seeking details on board members who opposed the move. In two replies the RBI said “it is a matter of fact that the decision was unanimous.” In a separate response, it said “this information is not available on record.” To a question seeking details on the number of demonetised notes already at banks on the evening of Modi’s speech, the RBI claimed an exemption, citing danger to the life or physical safety of anyone who disclosed this information to the public. The RBI also claimed exemptions on two questions seeking detail on its preparations for the demonetisation and studies it used to forecast the impact of the move. Sharing these “sensitive matters” would endanger India’s sovereignty, integrity and security, according to the RBI.
The use of those specific exemptions are “perplexing,” Capital Economics’s Shah said. Shailesh Gandhi, a former bureaucrat with the Central Information Commission, told the FirstPost website on December 31 that the RBI’s attitude of stonewalling smacked of “sheer arrogance.”
“What the RBI is doing by refusing to answer queries under RTI is denying citizens their fundamental rights,” Gandhi said. Lawmakers are also seeking answers. Parliament was gridlocked as the opposition demanded discussions and voting on the measures, the Supreme Court is hearing petitions against the legality of the steps, and two lawmaker panels have sought explanations from the RBI.
The decision to demonetise was taken only when the stock of new currency notes was reaching a “critical minimum,” enough to meet a significant part of demand, the RBI told a panel in a note accessed by Bloomberg News. However, the currency swap was riddled with rule changes and data that analysts have questioned. Patel will depose before another lawmaker panel on January 20, which is expected to seek his view on the impact of the demonetisation on India’s economy.”

Chinese Flags In Kashmir: Turko-Mongolic Face Of NWO

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The appearance of Chinese flags among Muslim separatists in Kashmir show the rank hypocrisy of Islamicist groups there, given that the Uighur Muslims of China suffer an oppression far greater than that imposed on any Indian Muslim:

The presence of Chinese flags in Kashmir is clear indication that a dark movement, to destabilise the region, backed by Pakistan, who in turn is backed by China, is going on in the Valley. India doesn’t have much choice under the circumstances but to crush any such movement before it gets too big to handle.”

I’ve said before that the globalist order is fronted by an ethnically coherent group of Turko-Mongolic lineage, misleadingly called Jewish in common parlance.

In reality, the term Jew is itself a recent coinage. The people of the Old Testament are properly called Hebrews and those with whom the divine Mosaic covenant was made are properly called Israelite.

The term Jew can only be applied to those who lived in the Biblical region of Judea or to the blood descendants of the patriarch Judah.

Modern “Jews,”  being almost entirely neither of these, are better described as a mixture of European and Middle-Eastern and other blood, who, in origin, are a Turko-Mongolic people.

So, it makes sense that the global Sanhedrin would operate through its networks in Turkey and in China.

In the latter, the Sanhedrin operates through the disaffected Uighur Muslims, who call their homeland not by its Mandarin name Xianjiang, but as East Turkestan, betraying that same ancient connection.

In that light, Modi’s elevation of Hindi and Delhi (but not Hinduism as such) becomes notable, because Delhi was the center of the Turkish empires in North India – from the Mameluke and the Khilji in the 13th century AD to the Tughlaq in the 15th century.

 

China To Build “Big Bang” Telescopes Near Indian Border

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From the Times of India, more interesting news about Chinese doings near the Indian border:

BEIJING: China is setting up the world’s highest altitude gravitational wave telescopes in Tibet, close to Line of Actual Control with India, with a budget of USD 18.8 million to detect faintest echoes resonating from universe which may reveal more about the Big Bang theory.

Construction has started for the first telescope, code-named Ngari No 1, 30 km south of Shiquanhe Town in Ngari Prefecture, said Yao Yongqiang chief researcher with the National Astronomical Observatories of the Chinese Academy of Sciences.

Parts of Nagri is last Tibetan prefecture at China’s border with India.

The telescope, located 5,250 meters above sea level, will detect and gather precise data on primordial gravitational waves in the Northern Hemisphere.”

As far as I can understand this new technology, which isn’t very far,  it allows us to understand the sound-track of the universe, where once we only had the pictures.

What does this have to do with anything political. Well, a powerful telescope at high altitude practically on the border of Tibet and India must always be of deep significance – both from the point of view of science and technology, as well as of defense and security.

Then again, there are all those conspiracy theories (?) about a so-called Project Bluebeam developed by NASA, which come to mind.

What are the potential spin-offs from this gravitational wave technology in weaponry, surveillance, or covert operations?

I have no idea.

But reports like this one from 2015 don’t make me rest easy:

RESIDENTS of two Chinese cities have witnessed the gateway to a parallel universe after a ‘floating city’ appeared in their sky.

Well, that’s one possible explanation offered by conspiracy theorists for the strange event, which occurred above the Jiangxi and Foshan regions of China.

The event was captured on film and showed what appeared to be a large cityscape of dark skyscrapers floating in the clouds.

After appearing on Chinese news channels and being uploaded to YouTube, the bizarre footage has attracted a number of other conspiracy theorists offering an explanation.

One of the more common themes occurring is the belief the illusion was the result of ‘Project Blue Beam’ — a secret NASA project in which the space agency will try to start a New World Order by simulating the second coming of Christ through holograms.

“This is the Project Blue Beam by NASA preparing their mind control over the sheep people. Wake up and smell the roses,” wrote one user.

“Clearly this was an offshoot of project Bluebeam by the Chinese Government in conjunction with the US air force,” wrote another.

Another theory suggests the event was not designed here on Earth; rather it was the work of aliens from another dimension.

“I believe it’s the work of the Grays [aliens]. They probably teleported a giant city or maybe reflected it from their own dimension,” wrote one user.

While these supernatural explanations are enticing, scientists have been quick to dismiss the occurrence as a Fata Morgana — a mirage caused when light passes through at different temperatures.

What buzz kills.

Crazy Like A Fox: RBI Figures Suggest Fraud Not Ineptitude

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At newsclick.in someone crunches the numbers on the conflicting reports put out by the Reserve Bank of India’s on the number of new notes issued:

RBI’s figures on the number and value of new notes it has put in circulation do not add up. The discrepancy is of more than half a trillion rupees. Is RBI trying to deceive people by claiming to print more notes than it actually did? Or is the RBI, under the new governor, too inept to get its figures right?

[Lila: As I’ve blogged over and over, nothing about the chaos around DeMo indicates it was a blunder.  And if it is crazy, it is only the craziness of the fox. DeMo is planned chaos intended to conceal the insertion of fake currency, the funding of terror outfits, and the creation of fresh money-laundering opportunities – in short,  the objective of DeMo, as a black op, was THE DIRECT OPPOSITE OF MODI’S STATED GOALS.

It is a foreign-corporate attack on the country coming from the highest level, dressed up to look like a nationalist pro-poor policy. It enables gigantic corruption and terrorist-funding, while pretending to defend against corruption and terror.]

After demonetising the old Rs. 500 and Rs. 1000 notes, the RBI claims to have issued new notes worth 5.93 lakh crore. If we calculate the net value of the notes printed and issued by RBI, – as per their various press notes – we can account only for Rs. 5.27 lakh crore. More than half a lakh crore rupees – Rs. 63,000 thousand crore to be exact – are missing from the 5.93 lakh crore amount.  Simply put, RBI’s numbers just do not add up.

In December, RBI began releasing data on return of the old demonetised notes to the banking system, and also publishing data on the number and value of fresh notes issued to replace the old notes.

In a press note released on December 7th, (Interestingly, RBI’s 7th December’s press release has now been taken down) the RBI gives a break-up of the currency notes made available to the public between November 10th and December 5th. According to this, currency worth a total of Rs. 3.8 lakh crore has been issued out in this period. Rs.1.06 lakh crore was in notes of smaller denominations – the total number of these notes is 19.1 billion. The remaining amount comprised of Rs. 2000 and Rs. 500.

Again, on December 22nd, RBI released a press note , with a new set of figures.  According to the December 22nd note, between November 10th and December 19th, the central bank – the RBI — released currency worth total of Rs. 5.93 lakh crore to the public. The new press note also said that this amount was made up of 20.2 billion currency notes of smaller denominations, and 2.2 billion notes of higher denominations.

This means that, after December 7th, RBI gave out an additional 1.1 billion currency notes of smaller denomination (20.2 billion minus 19.1 billion). Even if, we were to assume that all these additional notes are in denomination of Rs.100, this would mean and addition of Rs. 0.11 lakh crore. This works out to a total worth of all smaller denomination notes issued as on December 22nd as Rs. 1.17 lakh crore: Rs. 1.06 lakh crore as per December 7th press note plus Rs. 0.11 lakh crore.

Out of the Rs. 5.9 lakh crore that RBI claims to have issued till December 19th, if Rs. 1.17 lakh crore is of smaller denominations, then Rs. 4.73 lakh crore would need to be in notes of higher denominations (Rs. 5.9 lakh crore minus Rs.1.17 crore).

RBI’s December 22nd press note states that it released 2.2 billion currency notes in high denominations. Even if all these notes were released in only Rs. 2,000 denomination, it totals up to only Rs. 4.4 lakh crore;  Rs. 33,000 crore remains unaccounted (Rs.4.73 lakh crore minus Rs. 4.4 lakh crore)

In fact, the missing money is likely to be much higher. We know that RBI has been releasing Rs. 500 notes along with Rs. 2,000 notes – even if in smaller amounts. In response to an unstarred question raised in Rajya Sabha on the composition of newly printed notes, the Minister of State for Finance, Arjun Ram Meghwal, on 6th December in a written answer provided figures that indicate that about 9% (in numbers, not values) of the newly printed notes supplied up to 29th November were in 500s, the rest in 2000s.

If we consider that 10% of the new notes of high denomination are now Rs. 500, and 90% are Rs. 2,000,  this works out to 0.2 billion as the number of Rs. 500 notes and 2 billion as the number of Rs.2,000 notes. This makes for a total of value of these notes to be Rs. 4.1 lakh crore: Rs. 4 lakh crore in 2000s and Rs. 0.1 crore in 500s.

The big question is, what happened to the remaining Rs. 63 thousand crore (Rs 4.73 lakh crore minus Rs. 4.1 lakh crore), which RBI claims to have issued to the public?

Is RBI trying to deceive people by claiming to print more notes than it did? ”

India Top Five Target Of US Spying

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A 2013 article at Esamkriti.com describes why the US spies on India:

Clues to a changing world

In March 2013 the NSA picked up 9.6 billion pieces of information from India’s computer networks, making it the fifth tracked country in the world after Iran, Pakistan, Jordan and Egypt. The top four are all Muslim countries, with Jordan also a close ally, so it’s a no-brainer why the NSA is targeting them. But has the world shifted so much on its geopolitical axis that India is now a bigger target than Russia and China?

There are two possibilities. One, the Americans are making sure India remains on its side of the fence. Secondly, if the NSA has been able to steal more data from India than from Russia and China, it only shows how powerless developing countries are against well-equipped spy agencies.

Why India is a top 5 target

In March 2013 the NSA picked up 9.6 billion pieces of information from India’s computer networks, making India the fifth tracked country in the world after Iran, Pakistan, Jordan and Egypt. If India is now a bigger target than Russia in American eyes, it only shows how the world has shifted on its geopolitical axis.

Unlike China and Russia where the United States can pinch industrial (http://www.wired.com/wiredenterprise/2013/06/tianhe/) secrets, India offers nothing equivalent. In almost every technological area, the Americans are ahead of India.

[Lila: This is actually inaccurate. There are plenty of areas in which the US is very eager to pinch or adopt Indian technical breakthroughs and medical innovations and the eagerness the US shows in joint ventures with Indian research institutions is proof of this. Moreover, one of the great objectives of the digitilization of India is to make Indian trade secrets and scientific research even more open to theft than it already is.]

But India is far more important. As their economies surge, India and China are reverting to their ancient duopoly. Research conducted by Angus Maddison and his colleagues at the University of Groningen shows India had 25 per cent of global income from the year 1500 CE through 1700 CE. China accounted for 35 per cent. In the year 1 CE, India’s share was 33 per cent, China’s 26 per cent and the Roman Empire’s 21 per cent.

Historically India and China were the engines of global trade. Roman emperor Tiberius and the historian Pliny complained about the drain of wealth (http://articles.timesofindia.indiatimes.com/2010-10-21/ahmedabad/28239734_1_bharuch-port-book) to India.

An India-China duopoly is a deep-rooted Western fear, and under the BRICS umbrella it might well happen. (Before the British created the border problems, the India-China border was as free as the United States-Canada frontier. Venetian traveller Marco Polo wrote in his memoirs that the Chinese emperor sent him on a fleet which carried a princess who was to marry an Indian prince.) In the 21st century as India and China are once again poised to be the two largest economies, both will be intensely targeted by Western spy agencies.

Weapon worries

Ironically, India’s improvement in ties with the United States is likely to lead to even more American spying. The Americans have always been paranoid about Russia acquiring their weapons technologies via India. Earlier, it simply banned arms sales to India; now with the decline of the American economy, India is a valued – though not trusted – customer. If only to feel assured that its high-tech armaments and aircraft are not being taken apart in Moscow, American spies will be keeping a close watch.

They have plenty of experience in that area. One of the earliest instances of American meddling in India was back in the 1950s when the CIA secretly provided cash to the Catholic Syrian Christian church to destabilise the democratically elected government of Kerala. On another occasion the CIA provided funds to discredit communists in West Bengal.

According to former US ambassador to India, Daniel Patrick Moynihan, “Both times the money was given to the Congress Party which had asked for it. Once it was given to Mrs Indira Gandhi herself, who was then a party official.”

Islamic angle

The increasing radicalisation of Indian Muslims and the big uptick in Islamic terrorist activity in India is a worry not just for India but also for the West, as India’s Muslim terrorists are now linking up on a multinational scale. It won’t be long before some of them are seen in Chechnya or other troublespots.

It is, therefore, understandable why the top four in the NSA list are Muslim countries. American espionage on India and Indian Muslims is, therefore, as inevitable as American spying on Saudi Arabia and Iran. In fact, American paranoia is justified as the Indian government – with an eye on Muslim votes – is victimizing its own agents who have played a key role in eliminating Muslim terrorists.

India and US: Trust deficit

The United States doesn’t implicitly trust India in a way it trusts Britain, Canada or Poland. After 9/11 the Americans encouraged the Indian government to send RAW and IB agents to enroll in counter-terrorism courses in the United States. This had two major consequences. One, it helped the United States identify hundreds of Indian agents who now cannot undertake undercover operations. Two, it has helped the CIA recruit Indian secret service agents. The most well-known case was that of RAW agent Rabindra Singh, who became an American double agent on one his many trips to the United States.

The Hindu’s Pravin Swami argues that India’s establishment is more vulnerable now than at any point in the past. “The large number of politicians, bureaucrats and military officers whose children study or work in the US provide an easy source of influence. Efforts to recruit from this pool are not new. In the early 1980s, the son of then RAW chief N. Narasimhan left the US after efforts were made to approach the spy chief through him. Narasimhan’s son had been denied a visa extension, and was offered its renewal in return for his cooperation with the US’ intelligence services. According to a senior RAW officer, not all would respond with such probity.”

Global backlash

The good money is on an international backlash against the United States and Britain. The Germans are already calling for the “United Stasi of America” to put a leash on the NSA. According to John Villasenor, professor of electrical engineering and public policy at UCLA, (http://www.forbes.com/fdc/welcome_mjx.shtml) “The NSA leaks will put wind in the sails of non-US intelligence services aiming to ramp up espionage targeting American businesses. Budgets for spying on American businesses will grow, and people to do the work will be easier to hire.”

Also, the Defence Science Board says the United States is not prepared to counter a full-scale cyber conflict. China’s ability to penetrate the world’s most secure communication system indicates the Board is spot on.

No business like the spy business

In “Crown Jewels: The British Secrets at the Heart of the KGB Archive” author Nigel West shows the extent to which countries will go to steal secrets. One summer day during the 1950s in Moscow, KGB agents were tailing the wife of the British ambassador. The woman had been obtaining classified documents from a Russian, while on her daily ‘walks’ through Moscow’s streets. Realising she was being followed the ambassador’s wife tucked the documents in her underpants and tried to run towards the embassy.

She was caught, the documents were retrieved, and the British envoy quickly quit his job.

Thanks to advances in communication, spies no longer have to steal documents in such comical fashion. It is precisely because of the vulnerability of spies on the ground that the NSA has taken electronic eavesdropping to a new level.

Chinese Nuclear Sub Spotted Spying On Indian Warships

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The symbolism of the Jade Helm exercises in the US last summer portended Chinese-fronted aggressions/incursions around the globe.  I described the Rothschild China links elsewhere on this blog. Now, following on open economic warfare on the country, this:

From FirstPost:

A Chinese nuclear submarine had reportedly been docked at Karachi last year, according to satellite images revealed by Google Earth. This is worrying for India because according to an NDTV report, the submarine was likely being used to scrutinise the movement of Indian warships more closely than ever before.

The report also said that the docked submarine was the Type 093 Shang submarine. A nuclear-powered submarine has an unlimited range of operations because nuclear reactors do not need much refuelling.

The image was first spotted by a satellite imagery expert @rajfortyseven, who shared images of the docked submarine on Twitter.

The NDTV report also said that the submarine is armed with six torpedo tubes from which sophisticated anti-ship missiles can be fired. This report came to light merely a day after another report, recently published by the Ministry of Shipping, which said that India is far behind in all the key performance indicators related to port-led development than China.

Underlining India’s inability to optimise on its richly endowed maritime advantages in the last half a century, the report said that China leads India by a factor of seven times to 16 times on the measured parameters.

On Thursday, Chinese media also criticised New Delhi for carrying out Agni-IV and V missile tests whose range covers the Chinese mainland. “India has broken the UN’s limits on its development of nuclear weapons and long-range ballistic missile,” the ruling Communist Party-run tabloid Global Times said in its editorial.

97% Banned Indian Notes Were White, Not Black

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More proof that eradication of corruption could not possibly have been the motivation for the cash ban in this piece at Livemint.com:

All but 0.7 trillion  of the notes banned have been deposited, against the 5 trillion short-fall anticipated by the Modi govt, proving that almost all (97%) the banned notes were part of the legitimate cash-based economy now crippled by the ban:

Indians have deposited nearly all the currency bills outlawed at the end of the deadline last year, according to people with knowledge of the matter, dealing a blow to Prime Minister Narendra Modi’s drive to unearth unaccounted wealth and fight corruption.

Banks have received Rs14.97 trillion ($220 billion) as of 30 December, the deadline for handing in the old bank notes, the people said, asking not to be identified citing rules for speaking with the media. The government had initially estimated about Rs5 trillion of the Rs15.4 trillion rendered worthless by the sudden move on 9 November to remain undeclared as it may have escaped the tax net illegally, known locally as black money.”

The livemint.com piece, naturally, suggests that this was all a huge Modi blunder.

That doesn’t wash at all.

“Monumental blunder” is a kind of fall-back, limited hang-out position, and it’s being pushed by all the usual suspects (major media, globalist outfits, former globalist stooges, like Manmohan Singh).

Any kind of clear-sighted look at the facts shows that there was no blunder involved. Urjit Patel, the RBI governor, has himself said as much.

The repeated use of globalist memes, the date of 9/11 (which is how Indians write 11/9), the election of Trump on the same day the notes went into effect, the Gates connection, the McKinsey report, the involvement of De La Rue, the Sahara-Birla link, the Mallya Rothschild account, all these and multiple other factors show DeMo to have been a fully intended, carefully crafted “shock-awe” attack…

62 and counting RBI directives over 50 days cannot be error. They are intended to produce maximum chaos and trauma in the population.

2000 rupees notes printed with major defects (missing the head of Gandhi on some, running pink in water in some others), fake counterfeit-detection machinery,  all these facilitate counterfeiting, not security.

IT raids destroy political opponents in Tamil Nadu and Bengal; they are not directed against corruption at the very top.

This is economic war. Make no mistake.

New Indian Depositor Bill: Grandma Takes The Punch For Globalists

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The New Financial Resolution and Deposit Insurance Bill of 2016  outs itself  with its use of the phrase “creative destruction” to endorse the need for a quick resolution of bank and firm failure.

“Creative Destruction” in this usage is a  Marxist term, popularized by the economist Schumpeter and subsequently appropriated by neo-liberal economists, as well as  perpetual-war- theorists of the new world order, that describes the need for “capitalism” to “ceaselessly devalue existing wealth (whether through war, dereliction, or regular and periodic economic crises) in order to clear the ground for the creation of new wealth.”

That’s wikipedia.

“Isms,” however, do nothing. So I would replace the word “capitalism” there with “capitalists.”

And, being of a skeptical turn of mind, would replace even “capitalist” with “globalist cabal manipulating capital.”

As I blogged before, the reassuring sound of “deposit insurance” should not blind us to the fact that the bill actually demotes protection of depositors – the original mandate of the RBI act of 194 – to second place. The RBI’s new mandate is the ubiquitous one of “financial stability.”

On behalf of financial stability – which, in effect, means some institutions are “too big to fail, too big to jail,”  the new bill and the proposed new bankruptcy procedures – get around the standard Indian legal procedure and have complete authority to resolve any issue of bad debt, by winding up the firm/bank and/or restructuring the debt. In essence, that means, a small, overarching and centralized outfit can decide whom to bail out, whom not to, and who gets to foot the bill.

Bank depositors over 1 lakh (Rs 100000 or about $1800-2000) are unsecured creditors of the bank who will be stiffed in the face of senior debt holders.

In short, grandma takes the punch for the globalists.

Edmond De Rothschild: Modi Will Recapitalize Banks By March 2017

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More proof that it was the Rothschild cabal, at the highest level of the globalist enterprise, that was behind Modi’s cash ban.

Not Modi, nor Obama, nor Delhi, nor the RBI, nor Washington, as the previous article I posted here suggested.

The cash ban came from the very pinnacle of the global financial markets.

The piece below is also proof that the ban had nothing to do with black money.

It was not even primarily about going to a cashless economy.

It is unlikely that even the Modi government is so out of touch with things as to believe that India is ready for such a transformation.

The ban was always an economic attack, intended to take money from the productive cash-based economy and give it to banks and big corporates (unproductive debtors).

It was intended to solve the problem of non-performing assets (i.e. bad debt).

The Rothschild memo adds to this. It explicitly urges the circumvention of the lengthy Indian legal process through bankruptcy courts, presumably after the model of the US.

Presumably, also, the new courts are to have much more leeway in deciding whose loans are to be written off and whose not, if the following is anything to go by:

Loans that were written off (Diageo-Mallya deal, February 2016, settlement funds going to Edmond de Rothschild account in Switzerland)   

Loans that will NOT be written off (SBI chief on farmers’ loans on Dec, 20, 2016)

Memo from the website of private banker and asset manager, Edmond De Rothschild Group (May 30, 2016):

The Indian economy has generated average real GDP growth of 6.5% in recent years. Yet the government is struggling to make significant headway in the area of structural reforms and this is preventing the country from realising its huge potential. Infrastructures by and large continue to creak, the labour market lacks flexibility and the financial markets need to be developed and opened further to international investors. When Narendra Modi became prime minister in mid-2014, it was hoped he would be able to make deep inroads with reforms, since he had gone on record as wanting to see India among the 50 business-friendliest countries in the world. Investors cheered this goal by bidding up the Bombay stockmarket, sending its valuation multiples soaring.

Subsequent events have reminded observers that Modi’s party does not wield a majority in the upper house of Parliament, where its bills often run into opposition. For example, the government’s flagship reform, a national goods and services tax that could boost GDP growth by 2%, has yet to be adopted.

However, the recently adopted Insolvency and Bankruptcy Code should breathe new life into India’s reform movement. It is meant to speed up the settlement of insolvency cases involving both companies and individuals. India has a sad history when it comes to settling and recovering on non-performing loans, an area where it still stands 130th in the country ranking compiled by the World Bank (see right-hand chart above). Insolvency proceedings drag on for an average of 4.3 years, with a recovery rate of just 25.7%. This is well shy of international standards. As a comparison, in China the process takes an average of 1.7 years, with a 36.2% recovery rate. The cumbersome nature and snail’s pace of debt collection in India has so far been due to archaic legislation, some provisions of which had not been revised since colonial times. This has actually encouraged debtors to drag their feet.

The new code, due to be signed into law in the coming weeks, will make it possible to settle insolvency cases in 180 days. During this period a committee of creditors will decide how to act on a payment default, i.e. by restructuring the debtor company’s liabilities or by winding it up. Creditors will moreover be classified, with senior debt taking precedence over subordinated claims. Moreover, insolvency cases will henceforth be overseen by bankruptcy courts, replacing the slower regular courts that have handled these matters up to now.

All this should have positive repercussions on India’s business climate by evening the balance of power between lenders and borrowers and by strengthening confidence on both sides. The Insolvency and Bankruptcy Code broadens the range of alternatives available to distressed companies, which will now be able to change their capital structure or reschedule their debt. This new-found flexibility should stimulate free enterprise at the local level.

From a more practical standpoint, dealing with bad loans quickly and effectively will not only reduce the portion of non-performing assets in banks’ balance sheets but also increase the supply of credit. At present nearly $150 billion of Indian banks’ assets are at risk (representing 10% of their combined loan books, including restructured assets). This weighs on their profitability and, worse, blocks resources that could be used to finance productive projects. The end result is a tepid investment cycle where money needed for infrastructure spending is in short supply.

The new code is also meant to help diversify the sources of credit available to borrowers, who are now 60% dependent on bank loans. The authorities’ objective is to encourage greater financing in the bond market and provide easier access to credit for smaller firms, which are often turned down by banks because of the higher credit risk involved.

Now the fanfare over the new legislation is fading, we should bear in mind that a whole ecosystem needs to be created. Setting up bankruptcy courts, training specialists and setting up databases to catalogue delinquent borrowers will all take time, meaning that the impact of the reform will only come in the medium/long term. Moreover, the recapitalisation of state-owned banks will be subject to the government’s budget restrictions.

Unlike China, however, India is developing a coherent process to address non-performing loans, a problem that is taxing its banking system. The Reserve Bank of India has set its sights high with the objective of weeding out and fully provisioning bad loans by March 2017. This clearly marks a major step towards expanding the country’s capital market, a vital effort in its economic development.