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On November 8, 2016, Indian Prime Minister Narendra Modi made a dramatic announcement on live tv: as of midnight that night, the 500 and 1,000 rupee notes would no longer be legal tender. Indians would have to turn in their old cash for new notes in the coming weeks. This “demonetization” scheme was sold to the public as an attempt to rid the Indian economy of so-called “black money,” but what was it really about? And what are the real consequences of this action? Today we talk to Satya Sagar of countercurrents.org for the Indian perspective on this startling event.
SHOW NOTES:
Watch: The Moment PM Modi Announced 500 and 1,000 Rupee Notes Are Illegal
Crisitunity in India’s Cash Crunch
India’s Caste System, Social Inequality and Demonetization
Credit Suisse Global Wealth Report 2014
Corbett, Thank you so much for such a stellar interview with Satya Sagar which again widens our understanding of the world and other cultures.
I see so many parallels, so many insights which apply universally. To hell with the rule-makers, know-best authorities, and the “engineers of society”.
This episode reinforces principles of voluntaryism and agorism.
Very fitting plug at the end of the video with the Corbett Federal Reserve video.
https://www.corbettreport.com/federalreserve/
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I smiled widely seeing Breaking Bad’s “Heisenberg” on Satya Sagar’s locked door.
YouTube (short clips)
— https://www.youtube.com/watch?v=xsqrwRGCbho
Say my name — https://www.youtube.com/watch?v=5eZOOEkrf6Q
What’s your name? — https://www.youtube.com/watch?v=r5wpigdBfK8
About Breaking Bad – http://breakingbad.wikia.com/wiki/Walter_White
Heisenberg – https://www.quora.com/Breaking-Bad-TV-series-Why-did-Walter-choose-Heisenberg-as-his-alias-How-is-Walts-character-related-to-the-real-Heisenberg-and-his-uncertainty-principle
Heisenberg – http://theweek.com/articles/459448/beyond-breaking-bad-meet-real-heisenberg
This is a really good interview. I’ve seen this debated on HackerNews and other sites, mostly talking about the technology gaps and the terrible state of many of the electronic payment systems there.
This is a really good look into the Indian economy and comes from a perspective of someone actually in Indian, who is familiar with the history and living in the aftermath of this decision.
I have not been to India in decades. I’m sure a lot of changed, but I’m sure this still puts an amazing hardship on people that are already struggling in that country.
-BUMP-
Holy Cow! I wasn’t aware.
One thing always puzzles me in these discussions about Indian demonetization –
The currency notes that were banned were Rs.500 & Rs.1000, equivalent to about $10 to $15. All the currency notes below 500, such as 100, 50, 10 are still valid and in circulation.
About 60% of the Indian population is below poverty line and makes about $2 / day. These people, the poorest of the poor, use currency notes of 100, 50 etc. and rarely get to own a Rs.1000 note.
What I don’t get is, how does banning currency notes of 1000 & 500 affect the poor people, who can’t & don’t use these notes.
In this age of deception, it is really difficult to find an honest & intelligent, insightful analysis.
News – March 19, 2017 – Bloomberg (Interesting.)
QUOTE
The Reserve Bank of India may consider raising the cash reserve ratio for the first time since 2010 if deposits accumulated due to November’s cash ban don’t flee over the coming months, economists say. Banks are holding a near-record 5 trillion rupees ($76 billion) of surplus cash, according to the Bloomberg Intelligence India Banking Liquidity Index, limiting the RBI’s ability to buy dollars and curb rupee gains to avoid further increasing liquidity.
https://www.bloomberg.com/news/articles/2017-03-19/rupee-s-surge-may-push-indian-central-bank-to-use-rare-cash-tool.