Good. Now get rid of the crore and lakh "decimal" craziness.
India's demonetisation of Rs. 500 and Rs. 1000 notes
91–100 of 336 posts
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#92You have to deposit all these notes in your bank account, from which you can get new notes. Anyone hoarding huge amount of black money in cash can't go to bank with it, and his money will turn worthless. Diluting such money will easily erode 20-40% value. So definitely a bold move.
They'll probably buy houses above market value. The seller can declare the money and pay taxes on it. The houses can be sold again one by one over the next years and the money legalized. Basically an easy way of laundering it. Still good for the state as the money is taxed.
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Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#93This is the boldest and probably most brilliant move by any Indian politician since liberalization of economy in 1990s. Having said that, another way of understanding this is that as of today both old 500 Rs and 1000 Rs notes have been "probabilistically devalued". For anyone in middle class and below the value essentially remains the same (other than a small devaluation due to effort required to get them exchanged),…
Isn't this a trick that will only work once? Wont the people who are taking advantage of black money start using a different store of value that isn't controlled by the Indian government like foreign currency or high value commodities?
If it works once why not do it and then find another thing that works once after that and just keep repeating.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#94Earlier quoted context omitted.
There is always some rationale that involves bad actors. Then you peel back the layers of the onion and find out the government just wants to screw regular people out of whatever.
I don't disagree with your premise, but in this case, how can this screw regular people? If someone has chosen to store a lot of their money as cash instead of in a bank and doesn't know about this, I can see that. Am I missing something else?
Regular people will have to exchange/deposit the notes, which will cause some inconvenience.
But I think it's well worth the benefits to society as a whole.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#95You have to deposit all these notes in your bank account, from which you can get new notes. Anyone hoarding huge amount of black money in cash can't go to bank with it, and his money will turn worthless. Diluting such money will easily erode 20-40% value. So definitely a bold move.
He can still go to the bank with it, assuming it is legally obtained, would have to pay income tax, however.
if it is accrued over years, they'll have to pay some percentage as penalty over the regular tax rate.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#96This is the boldest and probably most brilliant move by any Indian politician since liberalization of economy in 1990s. Having said that, another way of understanding this is that as of today both old 500 Rs and 1000 Rs notes have been "probabilistically devalued". For anyone in middle class and below the value essentially remains the same (other than a small devaluation due to effort required to get them exchanged),…
I think this is more about sending a message that they are serious about enforcement once the amnesty ends.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#97I am not at all comfortable with the elimination of paper currency no matter what the rationale proffered by politicians and government hacks. Control of people from the top down is an ever present risk and cash money has a strong offsetting influence to the nefarious plans of would-be dictators. Put another way: Government is not benevolent and never can be. We should all be very careful.
Who's eliminating paper currency?
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#98This is the boldest and probably most brilliant move by any Indian politician since liberalization of economy in 1990s. Having said that, another way of understanding this is that as of today both old 500 Rs and 1000 Rs notes have been "probabilistically devalued". For anyone in middle class and below the value essentially remains the same (other than a small devaluation due to effort required to get them exchanged),…
Changing $100 notes to $200 notes will open a new black market for converting 2 x $100 notes to $200. I think just removing the $100 note is safer.
2K notes are not just piece of paper, it does have NGC (Nano GPS Chip) by which income tax department can track the location and exact amount have stashed nearby that location. So sending that amount to some other country or keeping that money underground will be the most foolish thing one can do.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#99For international readers: Rs 500 and Rs 1000 are the highest denominations notes in India. Other available denominations are Rs 100, 50, 20, 10. This is such a major move to curb black money in the history of Indian Politics and Economy
1 USD is ~Rs 66. That is a staggering difference in purchasing power! I would guess that the only note in the US with a similar reputation which is still issued would be the $100. Notes larger than this ($500, $1000, $5000, and $10 000) have been discontinued since 1946 and actively destroyed by the Federal Reserve since 1969. Isn't there a concern that those who were using these high denomination notes just switchin…
> 1 USD is ~Rs 66. That is a staggering difference in purchasing power!
How on earth do you derive purchasing power from comparison of arbitrary units? ~Rs 1 does not have the purchasing power of 1 USD,. 1 Zimbabwean dollar does not have the purcahsing power of 1 GBP.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#100I am not at all comfortable with the elimination of paper currency no matter what the rationale proffered by politicians and government hacks. Control of people from the top down is an ever present risk and cash money has a strong offsetting influence to the nefarious plans of would-be dictators. Put another way: Government is not benevolent and never can be. We should all be very careful.
> I am not at all comfortable with the elimination of paper currency
Then it's a good thing that paper currency is not being eliminated. Cash continues to be legal. Some banknotes are eliminated, and new ones are introduced.