I guess Indian Economy is going to grow and will be controlled well...
India's demonetisation of Rs. 500 and Rs. 1000 notes
231–240 of 336 posts
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#232Indian Economy is going to be Increased well
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#233I grew up in a tier-2 city in India, and the amount of black money rich people hoard around here is of ginormous proportions. Easily > 50% of the income for most rich folks. Can't wait to see how this unfolds.
How do they hoard this money? As cash?
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#234Earlier quoted context omitted.
> 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 $30). I think it is a fair assumption that those numbers aren't arbitrary and that some thought went into choosing those denominations. That gives you insight into the economies of…
I don't see how that makes the argument of the grandgrandparent post. If some thought had been put into the denominations then what you'd assume to be normalized is purchasing power (since the smallest denominations should correspond to "a fraction of the cheapest thing I could buy" [if we include change] and the biggest should correspond to "more money than is reasonable to carry around for buying stuff"). Following that logic and combining it with yours the conclusion is "100$ in the US has similar purchase power to 15$ in India" or "things are cheaper in India", which really doesn't say much to me.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#235This has downstream implications on:
1) Voting and democracy. No one can easily buy off votes for Rs.500 or Rs.1000. 2) Real estate transactions. 3) Gold transactions. Now I bet you cannot sell off gold that easily as you would not be given cash in return.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#236Earlier quoted context omitted.
Hmm as much as I'd like to agree with you, don't think its necessarily spurious on the facts. https://en.wikipedia.org/wiki/Corruption_in_India From another perspective, the Rs 1000 note was demonetized in 1978 as well to curb unaccounted money. More than 30 years later, we've had to do it again because the underlying problem wasn't solved. https://en.wikipedia.org/wiki/Indian_1000-rupee_note Maybe this time it'll wo…
It will work for the current undeclared income . Soon people will begin hoarding the new currency notes. Or become wise and not stash money in currency. Under the recent tax amnesty scheme if somebody had declared rental income, or business income, they will have to continue declaring it for years to come. I personally believe that the bigger players in undeclared income are not keeping it in cash, they have assets b…
> The current method is a way to fight black money. For corruption there are other ways, and maybe some will be taken.
"Black money" term is so misplaced, it should be untaxed ruppes. It wont affect untaxed assets (overeseas and here).
And guess who has most untaxed ruppes and who cant afford to lose any more ? Low/Middle Class. Good job Modi. You just alienated they very people who voted you in the office.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#237This action can boost-up bitcoins in Indian market now.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#238Could someone fix the title, please? The notes aren't being made illegal, they are just ceasing to be legal tender. There's a big difference! Right now, the title is clickbait.
But they are illegal to use for any monetary transaction. I read it like that.
No.
Using an arbitrary piece of paper for a transaction isn't illegal, is it? If two individuals in India agree to an exchange of goods, but with USD instead of INR, that isn't illegal, is it? It's just that whoever received that amount in USD can't deposit it in an Indian bank; not without converting it into INR in the first place, at which point they're effectively depositing INR.
Replace USD above with any paper currency, or non-currency paper for that matter. If you have someone willing to take a piece of paper from you in return for something, there, you have a transaction. It's just that, the other person would be unwise to accept a piece of paper they can't put to use.
A ₹1000 note being "not legal tender" simply means that no Indian bank will accept it being worth one thousand INR. If someone wants to accept such notes in return for anything, they can; they just can't deposit it in an Indian bank (after December 30).
A ₹1000 note being "illegal" would mean that it would be a crime to possess, offer, exchange, display, disperse, aerosolize, or apply some other action or combination of actions to it that isn't otherwise illegal already.
And that, is not the case.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#239not sure about economics , but is NGC proposed ( Nano GPS Chips) a privacy concern?
> NGC proposed ( Nano GPS Chips)
Such a thing is neither possible nor wise, and thus, doesn't exist. Where did you get something like this from? Check your sources.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#240While this sounds great on face value, I doubt this'll solve the root of the problem. Why did we have so much black money in India? Coz people didn't want to pay taxes. Why didn't people want to pay taxes? Because they got nothing in return. Governments (esp Indian) have been historically self serving and power hungry. Tax money is usually either lost by PSUs loaning to the Mallyas of the world or other corrupt bulls…
> Why did we have so much black money in India? Coz people didn't want to pay taxes. Why didn't people want to pay taxes? Because they got nothing in return. Sorry, I don't buy this argument. People in every country, regardless of how good their government is, want to personally pay as little taxes as possible. If people in XYZ-Amazing-Country knew that they could reduce their personal tax bill by 30% in a way that's…
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