The Indian government has finally admitted what an illogical move and complete failure the currency ban has been on the economy. The ban, which of course was Prime Ministers Narender Modi’s brain child, was and continues to be the cause of allot of pain and suffering. So why did he do it?
If anyone actually believes Modi’s intention and objective was to actually wipe out “black money” then please stop reading this article, leave this website and please consider reading Alice in ‘Wonderland’. If however you are more politically awake, please do carry on.
In short, Modi is like a Political Prostitute to the corporate business world. His objectives clearly do not match with being a leader of India or its people. There is a saying which comes to mind which goes something like this; If you want to know who is responsible, follow the money… let’s us do just that.
So who is benefitting and who stands to benefit from the Modi currency ban? Before we go into this I must clear two things up. First, I have recently returned from India and I can categorically say that Modi’s cash ban is not a universal ban as anyone with ability to see will tell you there are no rich people in India standing in the banks queue’s waiting for cash, it is only the poor. I also saw during my visit that the withdrawal and deposit ban was very easily sidestepped by many people with ‘certain large balances’ in their account and I myself was offered the same service, which I refused.
Secondly, Modi tried to convince the Indians that there was allot of “black money” kept outside India which he wanted to ensure it did not to return to India. Of course the problem with this fabricated rubbish is that most of the Indian currency which is abroad is held by Indian people who are either travelling abroad, living abroad or studying abroad. The larger deposits to which he was referring to are not held in cash, but in foreign currency accounts, which of course means that those accounts are safe from the currency ban and Modi’s strategy is therefore senseless. Let us now look at the high earners from his ban.
Savers who already did not trust the banks or the government had no choice but to deposit their life savings into the clutches of the very people they were hiding it from.
Banks saw local people deposit their money which in the fiat money system meant the same banks were instantly able to lend more money to the increasingly desperate people and earn money from related interest and fees.
Digital payment systems
It is no secret that there is a concerted effort by world leaders to try and bring the world into a cashless system which only benefits the governments and those who charge transaction fees or earn interest by holding account holders money in their master account.
Corporations with card payment machines
While the average rickshaw driver or fruit cart seller just meets his monthly rental payments, buying a battery operated card machine which is required to be linked to a fast internet connection is not a high priority. So while those with bank cards may have preferred buying a quick snack from the local mobile food cart before the ban, they soon found out once the ban started that a lack of cash soon meant that they had no option but to buy from fast food outlets (owned by corporations, many of them not Indian) with installed card machines.
What people seem to forget is that once cash currency is withdrawn and all currency becomes digital then the government can do as they please. They can tax you whatever want (think supermarket bag tax (UK)), take money out of your account (think Greece and Cyprus) and share your personal information with whoever they want (think NHS records now shared with private corporations). In other words, zero privacy and you become a slave through the lack of options you have.
So what was the real reason why Modi did what he did? Follow he money!
Image courtesy of by Smarnad at FreeDigitalPhotos.net