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Originally Posted by V12Doc Honestly demonetisation is a very bad decision. Bringing one of the largest economy of the world to a grinding halt based on theoretical reasoning and not looking a ground report is crazy. I have no idea what the prime minister was thinking. A lot of change of aims of demonetisation but in the end nobody got anything. Loss of more than 200 lives that is more than 26/11... Collateral damage was way too much. Its like draining the water to filter the dirt. There were people who went bankrupt because they just opened a new business/ factory. They didnt get loans from bank but used up their savings. |
You're partly right, and those "hailing" the rise of government endorsed bitcoins (which the feds were vehemently against until now, but as long as they and their bankster cartel are middlemen and can swipe commission on each payment then its hunky dory sunshine) are partially right too, but there needs to be a middle ground.
Here are the present assumptions :
- ALL CASH transactions & holdings are evil and illegal.
- Death to the black money!! Hang it, burn it!!
- Poor are saved!! The messiah of digital currency is here.
- Rich/middle class shall be brought to their knees!!! Prepare the kangaroo courts!
- The Government is ALWAYS right, every word they say on the tell-lie-vision is a holy commandment and we're to obey.
Here's the reality :
- Cash is the last remaining solid holding on wealth (alongwith gold & silver), anything less can be destabilized, withdrawn and illegally cut at source.
- Black money was/is created by the "rulers" 999 times out of 1000, I remember I was getting only Rs.1000/- notes fresh out of the press the past year, even if I wanted Rs.100's they gave me Rs.1000/- or at the least, Rs.500/-.
- The poor aren't saved and never will be, as and when the poor upgrade their economic status new poor will take their place and then some more. Money is an imperfect concept and there will be grades of poverty/richness, else if its all flat and equally poor/rich then the only situation that can happen is hyper-deflation or hyper-inflation respectively.
- The rich and middle class are the main drivers of the economy, without their taxes there would be no government so to speak. Whether one admits or not there is a luxury market in today's global economy, certain well to do farmers import cars that well cross 8 digits (and pay an equivalent importy duty on it too), the same applies to every other luxury commodity or service. The government gets tax either way and still finds time to spit on us.
- As for tell-lie-vision, I know better, the news channels are strictly off limits. No amount of debates and pseudo-dumb analyses can help me see the truth.
THAT being said, there are a few industries that need to come under a taxable bracket. The only way to do that is to (unfortunately) curb the big denomination currencies. Alternatively the tax people must investigate all such industries severely, chief among them real-estate where there is scope to show bogus expenses or not report income at all, as you may also be aware, the medical field also has a similar problem though its applicable only to massive hospitals.. for private consultancy I believe the cash system must go on as its a smaller amount and it'll be more accessible to a range of people.
My view is that the economy shall never, ever be perfect. The only two situations that can happen here is the people fooling around when the "authorities" are asleep, or the authorities fooling around when the people are asleep, the latter is happening today. Now I'll get the usual rhetoric of atleast something is being done, and nothing good will come out of sitting on a chair and blaming everyone and everything. I know better not to respond, while my classmates used to be out playing and watching movies during our teens I was catching up on books of Karl Marx, John Keynes and Alfred Marshall, they were relatively practical economists compared to the garbage of today like Ben Bernanke, Paul Krugman and George Soros.
Technology doesn't change the fact that businesses must go on, to service a class of people from the highly paid to the blue-collar. Money must be in rotation, BOTH in paper form and otherwise and no governing authority must make the people choose. A free avenue of expenditure and earning is in the end, the greatest balancing act of the economy and is self-sustaining at that. These are my views and they are non-negotiable.