Chaos in the Wake of the Ban
Here is a link to Part 1, about what happened in the first two days after India’s government made Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes illegal. They can now only be converted to Rs 100 (~$1.50) or lower denomination notes, at bank branches or post offices. Banks were closed the first day after the decision. What follows is the crux of what has happened over the subsequent four days.
Today India is on the verge of a major social-political crisis, unless either the government backs off from the decision of banning the currency or some real magic happens. There is chaos in the streets and daily life is slowly but surely coming to a full halt.
What Modi did was not only heavy-handed, hugely arrogant, and of no value, it has been very badly implemented to boot — as everything in India always is — and carries the real potential of escalating and snowballing into something horrific. They could have seen that this was not going to end well by simply using primary school math.
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4 comments:
Incredible. The richest will become richer, while everyone else loses. As if India didn't have enough troubles.
and how many Indians do we have living here - Another race destroying our economy and life.
Rs 100 ($1.50) is a daily wage for most Indians, the hundreds of millions that are employed by the 1% in India. That being the highest denomination is not so out of line. It is only the rich and wealthy Indians (like the ones that come here and buy up our businesses) that are reacting with hysteria. The rule extremely limits their ability to move their wealth around.
9:00, am, I'm going to disagree. What if the USA decided that you could only hold one dollar bills. Fives, tens, twenties, hundreds become useless in a day, unless you can cash them in for ones at $60 at a time, or per day.
Where would your retirement fund be? The Bank runs out of ones each day. What about all your savings? $60 a day, maybe.
Think about that, and get back to us.
You would have to build another house to hold all the ones! Can you afford that on $60 a day?
This is a really bad thing...
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