Modi announces the discontinuation of Rs 500 and 1000 notes.......

confuzzled dude wrote:What a disaster this has been. In best case scenario, less than 5% of black money will be disclosed while 70% of Indians had to suffer for this sudden dumb move.

In the last three days alone 50000 crores have been deposited just into SBI. This is the amount of money that has been in Cash. Total estimates of all the cash being deposited into all the banks is around 2Lakh Crores. 

It is a Gutsy decision.

It is surprising to see people ignore such obvious facts.  Did not know that this forum is filled with folks who are so prejudiced that they ignore facts.

Pros
a)If not for anything, it brings the economy overground. 
b) Eventually (in say a year) many people would go cashless. Credit Cards would be ubiquitous.
c) Fake currency racket from Pakistan has gone to dust. All that effort by the Pakistani printing presses buying quality paper and printing Indian currency (some say around 1000 Crores) has gone waste. They will eventually
also start doing the same for the new notes, but it is a big temporary surgical strike on them especially in West Bengal
where allegedly TMC government has been shielding such people. No wonder Mamta is crying wolf.
d) Long term  it is good for the country, There is no question about it. 
    True size of the economy can now be really found out and more accurate than previous estimates.
e) From now on people will invest in Gold for preserving wealth. So gold consumption could go up.

Cons
1) A lot needs to be done to help poor people and traders in unorganized sector (who go around selling goods).
    India does not have the support system for these people.  
  
   We have to really feel sorry for them and their livelihoods will be affected for at least a month, with no savings and
   difficult to earn, since no one has cash. They all have to purchase credit card machines. battery operated credit
   machines are hard to come by. We see a big problem for their business and spending on such discretionary items are
    bound to go down.

2) Hence, it is a bad gambit from the point of view of polls and most likely NDA might lose all state elections
3) The support system to seed 100 Rs and new notes through the banking system has been badly managed
    causing hardships for all people for about a month who needs to spend.
4) Hospitals are not the only emergency, Medicines are also for emergency, and Pharmacies do not seem to be included in the notifications.
5) Loopholes remain. It can never be completely error free.
   Many people in India hold black money and they are now turning it white by laundering it using poor people's Jan
   Dhan accounts. Folks are booking expensive train tickets and using cancellations to turn it white.

If we do the math, it seems recouping the black money by its hoarders, is not at all unachievable. Estimating the total value of Rs 500 and Rs 1,000 around 14 lakh crores, it requires only around 20 percent of existing 25.45 crore Jan Dhan accounts (as on 2 November, 2016), each depositing around Rs 2.5 lakh of old currency notes to recoup entire money back with newer notes.

And it is not only Jan Dhan accounts, there are others who are within no tax brackets who can also be used. With the money-changers claiming commissions of 20-40 percent, a small share of this will be enough to entice these other account holders as well. This coupled with phenomenal gold purchases would probably ensure very little change in the current black money situation.

In the end, estimated 20 percent no-shows of currency notes may be a serious underestimation of Indian jugaad. Fake money will be gone, but black money will remain and that too in newer currency notes.

http://www.firstpost.com/india/after-rs-500-rs-1000-ban-heres-how-indian-jugaad-bloomed-to-support-black-money-hoarders-3099910.html

rawemotions wrote:
In the last three days alone 50000 crores have been deposited just into SBI. This is the amount of money that has been in Cash. Total estimates of all the cash being deposited into all the banks is around 2Lakh Crores. 

How much of it is black? All, none or some? Giving the estimates of deposits made off of valid cash transactions doesn't mean much.

A school dropout, Surendar, who made a living selling pani-poori from a cart in this town, has seen his business plummet since the November 8 demonetisation announcement. “Everyone brings Rs. 500 notes for eating one plate of masala poori. I had no other option except to dump the food on my cart,” he says.

Pointing to unsold fish in his basket, 45-year-old Antony, a small-time fish vendor of Puthur in Thrissur district in Kerala, wonders what he will do with the remainder. “It's going to be noon. My regular customers refused to buy fish even though I am ready to lend [it to] them. I am taking less than a quarter of the regular stock from the market now [to sell]. This has been happening for the past three days,” he said.

Mary, 40, who runs a grocery shop at Kundannur, a small village in the district, did not open her shop on Saturday. “I can’t deny goods to my regular customers who don’t have cash in hand now. But I am not able to buy stock as I don’t have money,” she said. She wonders how many days she will have to keep her shop closed. It is the only source of income for her family.

Demonetisation has not only brought the lives of millions of people to a grinding halt; in rural Rajasthan, it threatens to affect the ongoing sowing of rabi crops. As most of the cash-strapped farmers, labourers and small shopkeepers in villages do not have access to banks, they are simply unable to meet their daily needs of essential items, transport, raw material, seeds, fertilizers and pesticides. Agricultural labourers are the worst-hit.

“Though it is peak season for rabi sowing, I cannot operate a tube-well at my field. There is no work for labourers,” farmer Chiranjilal Maharia told The Hindu from Kudal village, 20 km from Sikar.

Higher up the economic chain, Mahendra Sharma from Katrathal village in Sikar district, who owns a hardware shop, said the demand in the market had shifted to food — edible oils, pulses and vegetables. “Villagers make purchases on a daily basis. When they have little cash, they will obviously first try to meet their basic needs,” he said.

http://www.thehindu.com/news/national/demonetisation-in-hunt-for-big-sharks-livelihood-of-the-poor-becomes-small-change/article9339069.ece?homepage=true

Tughlaq will definitely be proud of his sucessor

i agree with you, CD. this is a tughlaq move. the big fish will always find a way if not already converted by now. the small and tiny fish are being killed. apparently thw whole economic activity is coming to a standstill. and jaitly says it will take at least another 20 days for things to become normal. imagine the hit to the gdp.
if they planned this over 6 months back, they should have released enough 100 Rs notes at least in to the market.
when i talked to people in india 3 days back, everyone supported the move and now they are seeing the problems and the blame game has started.

and the indian mentality is such that if they hear that there is a shortage of a commodity, everybody tries to buy in bulk and store it making the shortage rumor self-fulfilling. apparently somebody started a rumor that salt stocks are running out, and people started buying slat by sack fulls. imagine that a sack full of common salt enough for 2,3 years of consumption.
the people will start hoarding 100rs and 50rs notes now and will not even spend for any non-essential things. the economy is going down.

garam-kuta wrote:and the indian mentality is such that if they hear that there is a shortage of a commodity, everybody tries to buy in bulk and store it making the shortage rumor self-fulfilling. apparently somebody started a rumor that salt stocks are running out, and people started buying slat by sack fulls. imagine that a sack full of common salt enough for 2,3 years of consumption.
the people will start hoarding 100rs and 50rs notes now and will not even spend for any non-essential things. the economy is going down.

salt shortage news and people's reaction.
http://www.andhrajyothy.com/artical?SID=333184

Real estate prices went down significantly within hours of govt announcement. Land registrations grounded to a halt. But that is to be expected. A lot of black money is in the real estate industry.

ashdoc wrote:singapore is comparing modi with its own strong leader lee kuan yew

Singapore knows this and there are huge benefits from  this decision.

• Common People - A lot of Freezing cash from homes is coming to Banks. If people don't find alternate investments scheme then they pay taxes on deposit.
  
• Black Money geniuses - A lot of Freezing cash will remain freezing and then will rot.
  
• In 2 ~ 3 weeks the banks will be fine. Common Man's money will be in the bank.
  
• In 2 ~ 3 weeks black money geniuses will still be crying foul and mourning.
  
• Idiots here will pick something else to blame Modi.
  

Note to idiots: The Government of India has set no restriction to deposit cash in the bank. However, there's tax they have to pay above a certain deposit amount.

Hi RE - 

I was watching someone speak thus: "Modi says that he will rout black money completely by this demonetization!"  - and then continued to argue against it.

I chuckled. People make "statements" of their own, and then argue against it, trying to sound intelligent.

This is what is happening.

First take a stand:

Demonetization good or bad: Yes or No.

After Yes or No.

Argue.

So I dare everyone first to take a stand in Yes or No: Good or Bad?

Then talk about BS, which really logical people cannot fall for.

Regards,
TS.

TS,

The policy - demonitization is good.

Implementaion of policy is shoddy and problematic. There are few problems that touch every one in a country as populous as India. This is one of those problems. There is still some time for Modi govt to recover. But as of today, Modi govt gets an F for implementation so far.

photo of girl going topless at ATM  in delhi as she was tired of waiting in queue for notes . she got notes via the police immediately !!

so glad i don't live in india right now.

Implementation is for VPs in a company. CEOs are visionaries.

One may  find flaws in implementation, but the stock goes up based on a CEO's vision.

Even in a capitalist market, Modi would have beaten the best of CEOs. 

Of course he now depends on his VPs ,SVPs, EVPs to execute.

We as the stockholders can NOT question Modi, as the CEO.

Even if VPs fail.

I salute Modi today, he needs to teach Trump about business,
TS.

one more life lost. i know human life has no value in india but still an avoidable loss.

http://epaper.eenadu.net/index.php?rt=image/index/img/20161115a_003135008.jpg

for non telugu people, sick guy couldn't arrange 20,000 in new notes for medical tests and procedures, and died.

Life lost in India?

You kidding me?

Over 30,000 girls under the age of 12 die, raped, forced into prostitution, kidnapped, or work as child labor in India every year.

EACH ONE OF THEM PAID FOR BY BLACK MONEY IN INDIA.

You support such treatment of our Indian girls?

There is NO END to this,
TS.

21 lakh crore business for child abuse alone - kidnapping, traficking, making to beg, or prostitution - funded by black money within India.

I dont say it - The Noble Laureate claimed with his study in India.

30% of black money in India is used to abuse under 12 aged kids!

My blood boils. I wont mind black money when used for luxuries.

I cannot handle the fact that 30% of the black money is used against kids in India.

Shame.

Shame. shame, Shame.
TS.

I ask the black money folks - Do you not have daughters or sons? 

How would you feel if your child is kidnapped, sold, disappears, by these black money marketeers?

Think about it.

What kind of values are you teaching your children, when you take a bribe of even Rs 500?

For the sake of kids, and future!
TS.

the world's oldest profession has been worst hit

http://www.news18.com/news/buzz/demonetization-good-samaritans-feed-people-on-pune-streets-1312048.html

illegal booze in gujarat becomes costly

http://timesofindia.indiatimes.com/city/ahmedabad/Booze-bazaar-shows-currency-withdrawal-symptoms/articleshow/55423836.cms

ashdoc wrote:the world's oldest profession has been worst hit

http://www.news18.com/news/buzz/demonetization-good-samaritans-feed-people-on-pune-streets-1312048.html

CD, (paging CD)
please respond and show your concern for these people.

i suspect that the whole counterfeit notes scam has received a setback of few months at best or only few weeks at worst . already counterfeit 2000 rupee notes are getting caught . they are being created by means of simple photocopying .

now with the modi government having made the whole issue one of stopping funding for separatists/terrorism by fake notes , i only hope that the terrorists/separatists are not able to make fakes of new notes . if they do then it will be 'business as usual' in terrorism/separatism in a short time . and if that happens then the enormous sacrifices that common people will have to do for the sake of national security in the coming weeks and months may go in vain upto some extent .

http://timesofindia.indiatimes.com/city/bengaluru/Fake-2000-rupee-note-found-in-Chikkamagaluru/articleshow/55393421.cms


http://zeenews.india.com/personal-finance/no-new-security-features-in-rs-2000-currency-notes-to-make-them-counterfeit-proof_1948998.html

Vakavaka Pakapaka wrote:......A few months ago, Chandra Babu Naidu suggested the discontinuation of 500 and 1000 rupee notes. Looks like Jagan, Maran, Laloo, Mulayam, CONmen and corrupt businessmen will lose a lot of money.....

http://timesofindia.indiatimes.com/india/PM-Modi-address-to-the-nation/liveblog/55315325.cms

Hahaha! opportunist Babu, now jumping off black money bandwagon and taking FULL credit for Pattiseema.

Vijayawada: The TD has stopped saying that demonetisation of Rs 500 and Rs 1,000 notes should be credited to Chief Minister, N Chandrababu Naidu.

The TD chief instructed party leaders not to speak so as the public is suffering a lot and it would boomerang on the party. To control the damage already done, of late, Mr Naidu has been saying that to unearth black money held by one per cent of the people, 99 per cent have had to suffer.

http://www.deccanchronicle.com/nation/politics/201116/to-control-damage-td-stops-claiming-credit-for-note-ban.html