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India demonetisation fails to purge black money

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Re: India demonetisation fails to purge black money

#81

Post by kapilkaisare »

An article[0] on Medium, albeit a thought experiment, offers an interesting take on the demonetization program the Indian government adopted. Here's a snippet:

"You [NDA/GoI] do two things — One, you neutralize the Congress with the only way you can neutralize their resources — Black money and Demonetization. Even if you don’t reduce their resources, you at least succeed in reducing their liquidity. You take a hit too but if you look at the damage you cause your biggest rival, this is a a shin graze."

0: https://medium.com/indian-thoughts/something-interesting-is-...

Re: India demonetisation fails to purge black money

#82

Post by splintercell »

alok-g wrote: post #80
splintercell wrote: post #72

Earlier quoted context omitted.

In November I predicted this to my Indian friends (who were quite excited by the new changes) that a rational Indian person shouldn't throw away their old black money, because this money would make a come back in a few years, when the new money starts to lose value due to inflation (Indian Rupee is inflated by the govt at a crazy rate, because that's how the govt funds itself in lieu of taxes). This would eventually…

>> Indian Rupee is inflated by the govt at a crazy rate, because that's how the govt funds itself in lieu of taxes Very interesting. I was looking for an answer to how the Indian government even funds itself with only 1% of the population paying taxes (which also suffers from tax evasion). Could you please explain more how inflation is used in lieu of taxes? Thanks.

You print[1] more money and spend it.

1. Create more money should be the accurate term here. They can create more money by printing or, using debt.

Re: India demonetisation fails to purge black money

#83

Post by thisisit »

pavanred wrote: post #47
thisisit wrote: post #17

For people who can't access the link: https://archive.fo/ynouY I am confused with the article though. What would have been a successful result? That the all canceled currencies wouldn't have been exchanged or deposited? I am reading this link: http://www.financialexpress.com/economy/all-rs-500-rs-1000-b... The wording is confusing at best: " nearly 99% of the high-denomination currency notes of Rs 1,000 and Rs 500 th…

I guess question is less of was it successful but rather was it necessary and did the move do any good at all? One thing I can't understand is, when I look up all the countries/regimes/dictators in history that have tried demonetization, and almost always it was done for the same reason - curbing corruption, black money, counterfeiting etc., and generally it resulted in people losing confidence in the institutions/go…

What all countries/regimes/dictators have tried this? And what has been their results? I surely would like some source to back up what you said.

Re: India demonetisation fails to purge black money

#84

Post by alok-g »

splintercell wrote: post #82
alok-g wrote: post #80

Earlier quoted context omitted.

>> Indian Rupee is inflated by the govt at a crazy rate, because that's how the govt funds itself in lieu of taxes Very interesting. I was looking for an answer to how the Indian government even funds itself with only 1% of the population paying taxes (which also suffers from tax evasion). Could you please explain more how inflation is used in lieu of taxes? Thanks.

You print[1] more money and spend it. 1. Create more money should be the accurate term here. They can create more money by printing or, using debt.

That makes sense. Thanks!

Is there somewhere I can read more about this? :-)

Re: India demonetisation fails to purge black money

#86

Post by kareldonk »

sctb wrote: post #63
kareldonk wrote: post #50

This is the new slavery. This kind of stuff is precisely why bitcoin was created. Taxation is theft and slavery.

We can please do without the tedious talking points, like the guidelines ask: https://news.ycombinator.com/newsguidelines.html .

Nothing tedious about my comment
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