Friday, November 25, 2016

After banning cash, India to implement a sweeping 30% tax on all bank deposits

Should a single person have the authority to flip a switch and bring all trade, transactions, indeed the entire economy to a halt?

After stealing and demonetizing 88% of all cash in circulation, with no chance of redemption of existing notes, A single man - the president - is also going to seize 30% of every bank deposit in a national TAX on ALL BANK DEPOSITS.

All commerce has come to a halt. No food deliveries, gas, services going on three weeks and the country is slowly starving to death. Modi made no provisions for the effects of his executive orders or their obvious outcomes.

And people, by the tens of thousands, are dying every day.

As it stands, money is now dead in India – and a police state is rapidly encroaching. Both at home and abroad the only topic of conversation for Indians is the currency ban.  

Two millennia of progress in money have been destroyed. Rural places are increasingly falling back on barter. In a barter economy, economic calculation is no longer possible; only the most basic economic exchanges can take place.

The western elite and MSM carry a favorable opinion of Modi, backed by cult-like “intellectual” climate created by the salaried upper middle class (who lack critical thinking and reasoning capability), and supported by the international media and institutions like the IMF, i.e., people who are sitting in Western cities have no clue about the realities on the ground.

Modi is also hinting that his next step is to BAN TO PURCHASE OF PRECIOUS METALS.

India...a nation of a billion souls...murdered by their own man, the president. Two orders and the banks are made solvent, the IMF made happy, and the people being wiped out.

This is the the NWO and globalism. 

Feeling culturally enriched yet?

Should a single person have so much power to be able to destroy the lives of almost one out of every five human beings on the planet?

After just a few years under Modi’s rule, there is no independent body left in India. Courts simply do not take a position against Modi. 

Police now reserve the right to randomly search people’s possessions without a warrant. Those who live in India — in an economy in which 97% of all consumer transactions are in cash, most salaries are paid in cash, and most revenues are collected in cash — routinely transport and carry large amounts of cash on their person. Only to be seized by the police at gunpoint, as is being done in the USA.

The fear among small businessmen and those with savings outside of the banking system, even if they are fully legitimate, is palpable. They are now deemed to be criminals and it is their job to prove themselves innocent, just like in America.

Historically, India has been a negative-yielding economy. Interest rates have mostly been negative in real terms. Stock market returns are negative-yielding, even before adjusting for business and jurisdictional risks. In such an environment, savers have no option but to keep their money in gold, or outside the formal economy.

Any oppression of savers forcing them to direct their money into the negative-yielding formal economy will only lead to even more of their savings going into gold and escaping to foreign jurisdictions, eventually making India much less well-off. Even in the short-term, India’s economy is rapidly going into paralysis.

An old man has died in the queue at the bank. No one came to help him, due to the risk of losing their place in the queue. A large number of people have died in similar circumstances.

no food, no jobs, no cash, and now, no bank accounts
Protesting farmers in India. Buyers cannot buy products for they no longer have access to their own money. Unable to sell, sellers are stuck with their produce and cannot pay their debts, driving them  and their creditors into bankruptcy. This is a very complex vicious cycle. Even if liquidity is eventually restored — which is unlikely — the demonetization has crippled the production system.

Depending on who you ask, even food market sales have fallen by 20% to 80%. It is too early to say if people are eating less or if they are consuming emergency stores they have kept at home; perhaps both. If farmers cannot sell their food, they cannot buy seeds for the next planting season. A vicious cycle is going to get entrenched.
Indian Express photos: Pavan Khengre