This is quite big. An expert says that 87 percent of all of India's cash reserve is in 500 and 1000 Rupee notes. It might reduce black money. In any case, the next few weeks are going to be interesting. Almost an emergency atmosphere right now in front of ATMs at 11 pm in the night.
India's demonetisation of Rs. 500 and Rs. 1000 notes
111–120 of 336 posts
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#112Earlier quoted context omitted.
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.
That NGC seems to be a rumour.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#113Earlier quoted context omitted.
In fact, the same is said in Europe about the absolute uselessness of 200 and 500 euro bills. I have only held a 200 euro bill once, and never a 500, but also thanks to the Schengen area it is trivial to (illegally) being insane amounts of money to Switzerland. This is why the EU was pressuring Switzerland to abolish bank secrecy.
> about the absolute uselessness Yeah, no. Even a relatively small amount like 30k is a major pain in the ass to carry around in 100 euro notes. 30k is what one might pay for a car, for example.
If you're spending 30k, paying an extra 20 for a banker's draft is insignificant. And it's not like you buy a car every week. (I also can't imagine feeling safe carrying anything like that much cash around. What if you lost it?)
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#114cash has always been a hot potato, particularly in india, due to high inflation.
the elephant in the room remains real property registration / valuation / tax reform.
only a matter of time. This is one of the silver lining's of the modern surveillance state.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#115This 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),…
It's worth noting that withdrawing certain banknotes is a classic move. Here's North Korea doing it in 2009:
https://en.wikipedia.org/wiki/North_Korean_won#2009_revaluat...
And the US did it in 1969:
https://en.wikipedia.org/wiki/Large_denominations_of_United_...
In both cases it appears that the main goal was tax revenue. In NK, against private traders, and in the US, against organized crime.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#116Earlier quoted context omitted.
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.
GPS receivers don't transmit.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#117To throw the startup scene into the mix: FinTech companies are celebrating this right now:
>Keep the money digital. Superb step by our dear PM @narendramodi From a bit inconvenience to incredible bold step ! #win # - Vijay Shekhar, founder paytm.
Being seen as a strong move towards cashless India.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#118HN seems to push this link down the first page.
The link above[0] this was posted 5 (2hours for this) hours back, and have 146 (197 for this) points and 60 (108 for this) comments. How can that be?
How does HN actually work?
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#119Earlier quoted context omitted.
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.
The grandparent comment wasn't comparing arbitrary units, they were comparing the units of each country's currency denominations. The largest active legal tender in the US is worth $100 while the largest in India was worth $15 (now will be $30). I think it is a fair assumption that those numbers aren't arbitrary and that some thought went into choosing those denominations. That gives you insight into the economies of each country.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#120This is a strategy copied from China. They did same in 1970-80's. Funny part is this is trying to get money from within Indian economy and wasting on govt and pet projects. The promise to re-patriate black money stashed outside India nowhere in sight. China bring in fugitives and money back even from official who took US citizenship. Modi can just dream of it and take money from hardworking Indians living in India. P…
> This is a strategy copied from China. They did same in 1970-80's. Citation needed.
USSR did that quite a few times. They'll invalidate existing bills and you would only be able to exchange a few of those.
Do this enough times and people will rightfully call the local currency "wooden", and switch to USD for any large transactions.
https://en.wikipedia.org/wiki/Monetary_reform_in_the_Soviet_...
Rouble also became worthless in the following years, Venezuela-style. Accompanied by Venezuela-like poverty.