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Midnight Massacre of Innocents in the Name of Black Money - Demonitisation

The stupidity of the decision to demonitise is matched only by the foolishness of its secrecy, timing and implementation. 

If black money is in ₹ 500 and ₹ 1000 notes, what sense does it make to issue ₹ 2000 notes?

Paytm takes out full-page advertisements to congratulate “on taking boldest decision in the financial history of independent India”. Paytm is justifiably happy at the prospect of making hay – the sun is shining for their business.

What Paytm does not say is that demonetisation was tried twice earlier, once before and once after independence – both failures.

What would one call a person or country or organisation who does not learn from experience? Bismarck said, “Fools learn from experience”.

“Short-term hiccup, long-term positive” screams a headline. As Keynes said, “In the long-term, we are all dead”.

Another headline trumpets, “A New Lee Kuan Yew is Born in India: Govt Source.” Sycophancy is our speciality; we need not import it from Singapore. We “Make in India”.

The mind that made this decision is the same that thinks, UID / "Aadhaar" would eliminate theft of BPL rations and prevent leakage of LPG subsidies by cash transfers.

What was the need for secrecy and a midnight announcement if the notes could be exchanged up to 30 Dec 2016?

Creating panic was perhaps, necessary element of the chest-thumping that accompanied the announcement.

No one – none of the “experts”, the business houses – said that the vast proportion of black money is in the form of real estate, foreign accounts, in stocks and shares and in gold and diamonds.

The “surgical strike” on black money is identical to the one on the LOC, just 2 KM from the border!

No one asked why the rule that depositing more that ₹ 50,000 requires PAN number and info on source of money.

How did Madhu Koda, former Jharkhand CM could take out ₹ 4,000 Crores? How did a large part of it go outside the country? He was arrested in 2009 and is out on bail since 2013. Perhaps, the lack of judges is the reason!

Ironically, the “hawala” market was the one that became most active by the midnight announcement. The margins were a roaring 30 %. The “surgical strike” at black money spurred brisk business in hawala!  

To tackle black money first clean up political donations. Then make political parties to declare the amount and source of ALL funds they receive.

Does India's “Lee Kuan Yew” have the courage to do this?

 

 

 

Refer Link

http://www.thehindu.com/news/cities/bangalore/when-the-notes-didnt-gain-any-currency/article9327001.ece

When the notes didn’t gain any currency - The Hindu


Chaos ruled wholesale markets in the city — from Yeshwantpur to old pete and vegetable markets — on Wednesday after demonetisation of Rs. 500, Rs. 1,000 notes. Shopping areas such as Commercial Stree