Thursday, November 10, 2016

Indian government punishes citizens for accepting fake money as if it were real.

The Indian government has decided that it is in its best interest in its efforts to screw its constituents over that it will immediately make void and not legal tender the two most common bill denominations in circulation.  These are the 500 and 1000 Rupee notes.  The stated goal was to catch corrupt black marketeers unawares such that they will not be able to exchange their existing note for new ones without having to explain where all the cash came from.  Sounds great except that it throws a huge burden on the rank and file noncriminal.  None of that matters of course because putting slaves to extra trouble is just fine if the Indian elite gain even one thousandth of one percent benefit from the action.  Being inconvenienced is the lot of slaves.

I really do wonder the the real goal here is though.  Since the cash has to go back to banks in order to be exchanged, they government is probably hoping that much of it will stay there in order to avoid the next inconvenient money deletion event that corrupt Indian government wants to declare.  That will represent a recapitalization of bankrupt banks AND leave less cash for Indians to buy gold with.  Gold is, as I have written so many times before, the ONLY thing that can credibly call bullshit on fake money.

This move of course will do nothing except convince even more people that holding Rupees is a risky matter.  The Indian government is only accelerating the abandonment of its already worthless fake currency.

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