> Last week, Prime Minister Narendra Modi made an unscheduled address to the nation on the evening of November 8. By the next day, 500 and 1,000 rupee denomination notes would no longer be valid after midnight, as the Times of India reported. The former largest bank notes in India — equivalent to about $7.50 and $15.00, respectively — would be replaced by a new 500 rupee note and a 2,000 rupee one. ATMs would not work on the 9th and possibly the 10th. Banks would also be closed on the 9th.
> Indian media report that at least five people have died of exhaustion while waiting to change money outside banks, and that three children have succumbed to illnesses that private hospitals wouldn’t treat because their families had only old notes.
AT LEAST THEY CAN USE THE NOTES AS TOILET PAP-OH WAIT HAHAHAHAHAHA
>waiting until SIX HOURS BEFORE the currency is no longer valid to announce it will no longer be valid
dot heads are so fucking lazy it's unreal. they knew about this months in advance and didn't bother to tell anyone
Hunter Rodriguez
It might as well be. Imagine if the ECB and governmsnt said overnight that no 20 euro note would be valid- you have to change it out to a new note.
Now imagine that if less than half your population has access to a bank, and 85% of the notes in circulation are now no longer recognized.
Such is Life in Shiti-stan.
Levi Ramirez
They wanted to prevent people from laundering any money that wasn't taxed - this also prevented anyone from taking any steps to prepare for the change.
Children have already died because Hospitals would not take the old notes for medical services.
Nathan Rodriguez
Most countries have shadow economies including yours, the PM wants to tackle that issue now than when the economy grows even larger
Ethan Nguyen
It isn't really fair to call it a shadow economy if it is the largest part of your economy: half a billion people have no bank and do not have so-called "white money" at all.
Jose Williams
>2016 >not using barter system >fucking pleb
Logan James
You don't know the meaning of shadow economy do you? >half a billion people have no bank and do not have so-called "white money" at all. they are under poverty what do you expec from them? you can act and laugh all you want at this current event even your mainstream media isn't covering it but every large economy will feel the tremors of it in the next few months.
Economies are going to collapse in 1928 style, Brexit, imminent fall ofdeutsche bank bank, inevitable collapse of chinese economy, no one is getting out of it unscathed. Atleast our government has the mandate to be proactive
Mason Cook
>(((currency)))
Caleb Thomas
our (((government))) proactively nuked our wealth
Brody Reed
They couldn't give them a few weeks?
Ryan Gray
Go back to /r/india bencho
Grayson Jones
honestly, why did it happen so quickly? to prevent protests?
Aiden Reyes
What could i get for a kilo of prime excrement of a Mexican bull.
Kevin Nelson
the denominations that he discontinued were 86% of the notes in circulation roughly 250 billion dollars
our banking system is crippled with huge debts, because of cheap loans given to the prime ministers (((corporate))) friends
this move resulted in a massive influx of cash into the (((banking))) system -> money effectively went from the people to big corporations
Aaron Ortiz
Technically it would be any activity which is not reported to or authorized by your government.
With the majority of economic transactions occuring between private individuals, and outside a bank; the Shadow economy will be a large number of essential transactions.
Instead of going after tax cheats, corrupt officials, and criminal enterprise; Modi takes the most disruptive possible path.
Levi Bailey
you can have my daughter >pic related
Hudson Stewart
>discontinued 250 billion dollars The absolute madman. Can't wait for the aftershocks.
Kevin Hughes
this
Gabriel Wright
Why are you putting everything in (((Brackets))) you lund buddhi?
Jacob Parker
a hole in the wall
Jacob Hill
the ussr collapsed in 1991 because of a similar move
I don't like her nose otherwise we could have a deal.
I hope there are some fucking nasty riots, you just can't take peoples money like that.
Xavier Edwards
what would happen if India dissolved, Soviet style?
Wyatt Barnes
there will be mass rioting, people have lost what little faith they had in the rupee, mass hoarding of gold and dollars, food prices will skyrocket maybe ten fold
Elijah Wilson
Only because any other action would hinder his own shady dealings. As PM he gives fuckall about poor loo's. I bet you wish to be a British protectorate again., even their rule was more honorable than your corrupted government.
Nolan Butler
it is possible we are a subcontinent, people of different languages, religions and cultures forced together to live under one banner.
Aaron Bennett
>food prices will skyrocket there is literally no money to pay for food. how will the price rise? Kejriwal please fuck off
Chase Watson
where does it say it led to a collapse? i am too drunk to read. Explain please behenchod. Are we fucked?
Jackson Richardson
I personally believe that it would be better under British rule We knew that the whites would divide us on communal and religious grounds to maintain control, but now we have our own people doing the same which is sad
That's fucking bad, i hope you have some dollars stashed somewhere and don't have to deal with that mess.
Adam Richardson
Already the state of Kashmir has a separatist movement that wants to break free from India, economic uncertainty will only fuel that
Kevin Gray
At least now they have something to wipe their asses with
Asher Williams
The Indians Sup Forums are the 0.1% of the wealthy population and have enough savings to go through a period of turmoil
William Sanchez
does your country have an actual economy that can compete with this 'shadow economy' or will there simply not be enough goods to buy, again getting soviet vibes here?
Isaiah Richardson
POO
Isaac Myers
I kind of had that figured but is good manners to ask.
Kayden Brown
They will be so mad they will be shitting in the streets.
Brayden Stewart
It is very difficult to estimate the size of the shadow economy, but I'd say it is at least 3 times the actual economy.
thanks user
Landon Watson
fuck this might get rough, hope it doesn't get too bad
Alexander Young
It is more likely that a Trustworthy currency is in insufficient supply.
In this case, it is more likely to cause a deflationary crisis for those without a bank.
Charles Foster
So this is to btfo counterfeiters or what? Whatever it is give your people some time bloody hell
William White
thanks user but the shit has hit the fan
Jaxon Wright
that seems more likely because in the other case it's a 'what the actual fuck were they thinking' situation
Jordan Johnson
reminder that indians are literally certified retards, pic related
Thomas Foster
there are roughly 4 billion rupees in counterfeits out of say 15 trillion rupees
the new rupees cost 12 billion to print
there is no logic behind this
David Reed
Withdrawing high denominated money from circulation
Positives:
1. It will bring out black money in the economy which can then be channelled into formal economy
2. Flush liquidity into banking sector which is suffering under burden of NPAs, lending will rise
3. Those who disclose unaccounted wealth can be scrutinised by the IT department
4. It will push citizens to use their accounts under the Jan dhan yojana, inclusiveness in practise
5. A punishment for those who did not disclose wealth under the schemes introduced by the govt
6. Flush out fake currency from the economy
7. Squeeze out cash being used for political campaigning
8. Cripple criminal nexus of drug dealers, terrorists and trafficker who will be devoid of means of trade
9. It will disincentivise future money laundering and tax evasion as information gathered during the exercise will increase transparency and equip the government to better monitor use of cash
10. Put an end to Hawala, even if this is only for the short run
11. Prices in real estate sector will come down. Even of metals like gold.
12.Monetary policy will be more effective now. And you faget stop sucking dick/ being AAP shill and try to learn somthing
Brandon Watson
Sure a measure like that had to be taken eventually but the question is how big the aftershock will be.
Jayden Lopez
>shit has hit the fan
but it was not far from the fan to begin with
Brody Gutierrez
Depends on how the government deals with this situation the next couple of months and I have to say they are dealing with it in a very level headed way. I'm not gonna lie it will be tough for every Indian the next few months but the long-term benefits are to be considered in these times
Lucas Davis
Im a bit slow but googled shadow economy and it basically means those people/business who stash money under the bed and dont pay tax etc Seems like this is in the interest of the bankers and taxman
The good news is I know that most Indians wisely invest in gold. Good luck mate
Ian Cooper
Hopefully they have correctly identified the issue and that it's this if the economy simply won't be able to deal with the new demand...then this will get very tough
Cameron Long
>very level headed way more people died of exhaustion waiting in bank lines than all the terror attacks in Europe this year combined
Ryder Morgan
>people/business who stash money under the bed this is myth and propaganda
Nathan Richardson
Well i dont mean it literally, i mean cash economy where it cant be tracked. If you dont bank excess you launder buying assets etc
Logan Kelly
Those are called growing pains, asshole, Govt. never said it was gonna be easy if the shadow economy isn't dealt with now we might become next china. Despite all this Modi is still a popular leader in masses which should give you an idea. We WILL suffer now, but the benefits outweigh inconveniences
Joseph Gonzalez
you want me to read more? I told you i just had like 700ml of Teacher's, man.
Can you please explain with the aid of your infallible glorious intelligence, are we going to disintegrate like the USSR?
Jason Gomez
Why'd you wanna listen to that faget? he's busy sucking some western cock to be some "good pajeet" We'll not be disintegrated
Jose Richardson
Here's to hoping all the people unable to receive medical assistance due to this currency fuck up create a new virus that mutates and decimates half of India
Grayson Lee
What do you know about economy pablo? don't have to convince Donnie to bail you out now?
Ryder Johnson
I guess losing half the population would solve our railway problem