[longhorn]

Raghuram Rajan is known for calling a spade a spade. That ruffled quite a few feathers in the current government who were hitherto used only to hearing praise, however dumb their ideas might be. When he took over as RBI governor, the economy was in shambles. Inflation numbers did not reflect the true economic picture. People were reeling under price rise towards the fag end of UPA 2. The then FM had the common sense to understand that things need to be rectified and quickly. It was under this situation that RR was brought in as RBI governor. The results are there for all to see. The rupee strengthened, there was more disposable income in the hands of the people and the economy was slowly but steadily nursing back to health. I am yet to see any RBI governor who can hold a candle to this man. If it were not for him, we would well have been on our way to a crisis similar to the Lehman Bros in the USA. Whatever he did was done keeping the broader interest of the economy in mind, because that is what the job of a central banker is. Kissing up to the govt of the day isn't what he is paid for.

[maddy42]

Just to add some spice to this discussion.



Do you know that around 600 individuals received Farm loans woth 58000 crore. Farm loans was just waived off in almost all states in the country. As long as we give the keys of the banks to the crook politicians we can expect this to keep happening over and over. Some of this farm loans was approved from the farm lands of Malabar Hill bank branches.


https://thelogicalindian.com/awarene...ture-loan-rti/


I support what V Narayan mentioned. RR is a brilliant economist for sure but some of his policies were questionable. Just google the 80-20 scheme of gold imports if you want more info. The scheme ran from 2013-2014. All you needed was export 20% of the gold you import, so basically even converting the gold to simple gold chains and exporting it was enough to import more gold.



People calling Mr Urjit Patel a stooge is hilarious. A stooge would not reveal a data like 99.3% of the 500 and 1000 notes came back, instead you would get data mentioning that the Demo was a grand success and how everyone in india is now honest and buying BMW's with their Debit cards.



Maddy

[Lalvaz]

I'm not an economist, and cannot even begin to fathom the machinations of the RBI governor, the FM, etc. However from personal experience, this de-mon made me lose all faith in the Indian Rupee. I saw how we were made to stand in lines for our own money. Small paltry amounts of Indian currency with NRI's, foreigners was forfeited or seized by Indian customs, while all the big guys did'nt bat an eyelid.

This kind of tomfoolery to win elections in one state, I cannot stand.

To set the record straight, I hate all politicians. I blame the present lot for this lunacy and I blame the earlier lot for making us choose this lot, thanks to their rampant scams and uncouth behaviour.

[extreme_torque]

Originally Posted by maddy42

People calling Mr Urjit Patel a stooge is hilarious. A stooge would not reveal a data like 99.3% of the 500 and 1000 notes came back

That is if you believe 99.3% of the notes did came back, which means only .7 percent of the total money in circulation wad black money, money held by people outside India, hard cash plus torn notes plus all and sundry cases. I find it incredibly hard to believe.

Public has a short memory and what's a few bad articles in whatever is left of the free press compared to the windfall it creates for individuals involved. Nothing is beyond reproach for the current government.

[earthian]

Originally Posted by extreme_torque

That is if you believe 99.3% of the notes did came back, which means only .7 percent of the total money in circulation wad black money.....

That inference may be questionable. People (an euphemism for scoundrels, tax avoiders, corrupt officials and politicians) no longer keep cash as cash. While they may allow their family to buy gold and diamonds to their heart's content, this would be still a minuscule of the black money that they have accumulated. The bulk of the black money is invested in Land ( where the extent of black adjustment varies from 80% to 40%*) or in P-Notes. Some gets laundered through havala and lands up in Swiss banks. There may be other innovative systems, i am sure.

A right description is black wealth.

edit: * In some States (including Gujarat) 100% of the price of land is paid by cash, in exchange of a chitti: A piece of paper which transfers the land from the owner to the buyer. No stamp duty, tax or registration charges are paid, of course. A parcel of land may be transferred multiple times by basis of a chitti.

[extreme_torque]

Originally Posted by earthian

That inference may be questionable. People (an euphemism for scoundrels, tax avoiders, corrupt officials and politicians) no longer keep cash as cash. While they may allow their family to buy gold and diamonds to their heart's content, this would be still a minuscule of the black money that they have accumulated. The bulk of the black money is invested in Land ( where the extent of black adjustment varies from 80% to 40%*) or in P-Notes. Some gets laundered through havala and lands up in Swiss banks. There may be other innovative systems, i am sure.

A right description is black wealth.

edit: * In some States (including Gujarat) 100% of the price of land is paid by cash, in exchange of a chitti: A piece of paper which transfers the land from the owner to the buyer. No stamp duty, tax or registration charges are paid, of course. A parcel of land may be transferred multiple times by basis of a chitti.

And RBI hasn't said 99.3% of the "black wealth" has come back. Ofcourse this is context of hard money in circulation and I find it hard to believe that only .7% of the money hasn't come back which includes counterfeit currency, cash lost due to damage or whatever, cash with NRI's and other countries etc etc.

[blacksport]

Originally Posted by V.Narayan

Thankyou blacksport for your candid and balanced reply. While we may hold different views I respect you more with this balanced tone. This is a genuine compliment.

Thank you for your kind words. I too have my own share of biases, but if life has taught me that, what you think is right today, you can realise is wrong tomorrow.

Originally Posted by maddy42

People calling Mr Urjit Patel a stooge is hilarious. A stooge would not reveal a data like 99.3% of the 500 and 1000 notes came back, instead you would get data mentioning that the Demo was a grand success and how everyone in india is now honest and buying BMW's with their Debit cards.

There is only so much you can do away from watchful eyes, cos our democratic institutions are still strong, even though there have been attempts to undermine them.

Originally Posted by Lalvaz

To set the record straight, I hate all politicians. I blame the present lot for this lunacy and I blame the earlier lot for making us choose this lot, thanks to their rampant scams and uncouth behaviour.

Politics is a field from which decent people shy away, leaving it to the crooks to play. What a country like ours requires is smaller government with limited powers. Somehow we like to give unlimited powers to our leaders expecting them to work magic for you - like the kind magic we are discussing about in this thread.

[vinit.merchant]

Originally Posted by earthian

edit: * In some States (including Gujarat) 100% of the price of land is paid by cash, in exchange of a chitti:

Its OT, but could not resist. Its a small pocket size book. Whoever's name appears last on it is the owner. That pocket book is everything. It is kind of like a bearer instrument.
I know this is done for shops, had no idea it is also rampant for land parcels.

[m8002?]

Originally Posted by vinit.merchant

Its OT, but could not resist. Its a small pocket size book. Whoever's name appears last on it is the owner. That pocket book is everything. It is kind of like a bearer instrument.
I know this is done for shops, had no idea it is also rampant for land parcels.

How do you resolve if another person comes up with a similar book having his name?

[StarrySky]

Originally Posted by earthian

edit: * In some States (including Gujarat) 100% of the price of land is paid by cash, in exchange of a chitti: A piece of paper which transfers the land from the owner to the buyer.

Originally Posted by vinit.merchant

Its OT, but could not resist. Its a small pocket size book. Whoever's name appears last on it is the owner.

Another case of blindly aping the West, I believe . Something very similar to a chitti is what I have as proof of purchase of my apartment here - with my name entered last in the list of owners.

[dark.knight]

Those who only follow the mainstream media, consider the mainstream narrative as gospel truth and also believe that the puppet elects have even an iota of control over what is going on, can kindly ignore this post.

For the rest, it is very simple to find out what exactly is going on. The concept of money was not meant to be perfect.. ever. The countrymen who thought that they are set of life, stuffing wads of cash underneath sofas, mattresses and in bank lockers.. were in for a rude awakening. I mean what on earth can go wrong right? Each note after all, promises to pay the sum to the bearer XY rupees with the sign and seal of the Governor. Plenty of things can go wrong once you follow the rabbit hole into the deeper and deeper layers it holds within.

In my view (1)economics, the sister of the (2)monetary system is possibly the greatest one-two punch thrown to mankind. How cash began, how it morphed into the various forms like plastic, digital etc.. who really runs/owns/manipulates the world banking system, it is all out there in the open.. all one has to do to know that is to turn off the news on the idiot box and switch to YouTube.

[GrammarNazi]

Frankly, isn't it naive to believe that demonetisation was an experiment? Those in power aren't fools to not realise the consequences of suddenly withdrawing 86% of cash currency in a 90% cash economy.

Basic common sense that they should've kept substantial ₹100 currency notes readily printed as a backup plan. What if there was a sudden national emergency or even serious incorrect execution. This can't have been a calculated mature risk.

Sorry to say, any self respecting Finance Minister / RBI governor, would've refused to flush out currency this way.

A head of govt needn't be afraid of backlash from citizens, but he should've been very very prudent about the consequences of his actions. Evidently, this wasn't the case. I'd go as far as to say he was negligent, if not indifferent to the plight of honest distressed citizens.

Commendable citizenry ours, for having complied with a brash Govt diktat & making demonetisation work. We are a fairly accomplished nation just for the citizens spirit. Let's show some prudence in voting next year.

My 2¢.

P.S. : Frankly I refuse to believe that 99.3% currency has returned. It's just not possible.

[tsk1979]

Originally Posted by dark.knight

For the rest, it is very simple to find out what exactly is going on. The concept of money was not meant to be perfect.. ever. The countrymen who thought that they are set of life, stuffing wads of cash underneath sofas, mattresses and in bank lockers.. were in for a rude awakening.
.

Huh. Are we in 1980s Deewar? Who keeps money under matteresses anyways. If most of the money in circulation was black money under ma's bed, why did over 99% come back?

A very small percentage of cash is kept at home. Sure they may be some weirdos who want to sleep on cash and live the Lion and Mona life, but most black money simply is converted to gold or real estate.

Secondly, even if somebody did keep crores under matteress, the convenient rule change about political donations ensured that laundering that money was no longer an issue. For the rest who kept a very small percentage of their ill gotten wealth in their houses, the read supply of daily wage earners willing to be in lines was good enough.

[avira_tk]

The gift that keeps on giving, new guidelines on currency replacement means that you'll lose your money when you have damaged currency notes. The new notes are terrible quality and the rbi is in full racketeering mode, replacement value is dependent on the percentage area of damage to the note.

Expecting someone to justify this, the verbal gymnastics would be interesting.

[Thad E Ginathom]

Originally Posted by avira_tk

...you'll lose your money when you have damaged currency notes. ... ... ... replacement value is dependent on the percentage area of damage to the note. ...

Seriously? That actually sounds like something from a stand-up comedy routine!