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2016 Demonetization of India – A Boon or Curse?
By Shalini & Shri Kidambi
Colossal Fraud Gigantic Heist and immeasurable plunder descent in to total Slavery worst than East India Companies
Trillions of dollars that could make India a super power are squandered to pop up failed western Economies
One Shot of demonetization and five Birds
Plunder Indian Black Cash for Western Economic Bail Out
Confiscate Repatriated Savings, bail out Corporate NPAS to create more black money
Create Crony Capitalism for political commissions
Confiscate Individual and Institutional gold for former Masters
Destroy Agriculture and squander Food Safety
East India Companies or Multinational Corporations Operated Destruction of India (eMODI)
The current round of demonetization drama was presented as the most patriotic act of bringing the black money for country’s development and to prevent our cousins printing fake notes to destabilize Indian economy and prevent terrorists from destabilizing our national security using black moneys printed by our cousins. Also we were told that we will have transparency like mirror by this act. Coupled with this the tax reform of introduction of GST and digitization and moving India to Cashless Society were marketed as if with the implementation of them heavens will descend on India. Just like previous governments’ policies like Shining India, Developing India etc this Digital India and Make in India were started as a massive mind numbing addictive marketing campaign with duly compliant corporate media and their presstitutes with missionary zeal following the sloganocracy and blaming every one and anyone who does not follow their line, especially the whorespondents media line, as anti national or non patriotic at the best or outright Terrorists at the worst.
What’s this all about? Why worry about black money now? More specifically why worry about domestic black money now while every prime minister promised to bring the black money from outside first?
What is the quantum of total black money in India? How much of this is stored within the country and how much of this is outside the country, in all those countries that considers third world black money of dishonest individuals (mostly political leaders and compliant officials and associated crony businessmen) as their pure white money and then lend the same as international loans to one and all the needy third world countries from where at first place this money was looted from? How much of this black money both inside and outside is stored in the form of cash and how much is converted in to assets like real estate and gold etc? What is the quantum of black economy in comparison with the white economy in India?
From the Ministry of Finance to the leading experts on money, economy, knowingly or unknowingly use interchangeably the terms black money, black assets, black cash or black economy. It has to be noted that these terms are specific and have a definite quantitative meaning and measurable at any given point of time. In the process, these groups transfer their knowledgeable confusion of gigantic unknowns or ‘must forget’ knowns as required by the governments, to the interested public,. So for the enthusiastic readers we try to provide few basic concepts of the made complex but simple phenomenon. To understand this one need to know the four functions of mathematics – addition, subtraction, multiplication and division, which probably every one learned by the time they finished grade third.
Economics and its changing definition in the Indian Context
The very term Economics is a Greek Derivative whose literal meaning is “home-accounting” or “household management”. By extension, the country is considered as a home. Any simple, illiterate peasant, un-educated household-head will advise that you have to either live within the means of your income, or raise your income level to match your needs. And this simple peasant will also tell you that you cannot run a family on a constant state of borrowing. And if you cannot repay your debts, the money-lender will either take you to court or go behind your personal assets or will sell them to collect his debt and interest. And any householder will tell you that savings for future calamities and maintaining a regular livelihood income is the best strategy for a family to prosper along with some assets in gold or real estate for emergency purposes.
But irrespective of who ruled India, for the past 25 years, from the beginning of Liberalization and Privatization, we have been encouraging exactly the opposite policies of “No savings at all”, “absolute spending”, “massive borrowing” and at the worst “encouraging people to invest in stock markets–which are equal to casinos –rather than in savings”. Indian Economists want the country to adopt policies of the authorities blindly that directly contradicts to their implementation at each of the economist’s family levels where they would always save money, buy properties, and never invest in gambling or stock markets. Why do these economists give approval when the governments doing something that is quite opposite to the fundamentals of economic health, and something that is quite opposite of what these economists do themselves at home? Or, does the word ‘Economics’ in Indian English is defined to mean “play, gamble with other people’s money without fear of accountability and punishment in the name of various slogans like alleviation of poverty or patriotism”?
What Is Money (M) and what is Black Money (BM) in an Economy
Money is defined to be a store of value and medium of exchange.
This concept was redefined when governments wanted to control the supply of money and term ‘money’ as “NOTE”, as in the “Federal Reserve Note” in the United States of America, means an “OBLIGATION” or “DEBT.” Or these moneys printed by central banks will be guaranteed by the Central Governments as happens in the case of India in which case it becomes an “obligation” on the part of governments.
When individuals do not trust the governments fully they tend to keep money in alternate asset as store of value or medium of exchange. In many cases it will be either in gold or in real estate investments.
This money is again classified in to various M’s starting from M0 to M4 to differentiate the Cash portion which is M0 and then the rest of the debt, credit and government printing portions as M1 to M4 and divide these categories as quantitative and qualitative segments which indicate how much each of these components the governments have absolute control. In general no governments have any control over the M0 or cash portion of money that is operated within the economy. It is this cash portion of the economy with the velocity multiplier creates wealth prosperity and security to ordinary citizens and all governments that intend to have totalitarian control will try to ban or tax this M0.
It is here in this M0 of Cash money the security threats may come as anyone or any rogue governments with proper technologies can print paper currencies of any country and circulate in to economies which are called counterfeit currencies or fake notes. As this printing of currencies is not backed up by the GDP production they tend to increase the money supply in economies along with inflation and always move through black money channels.
One solution for this was found by the Canadian Government which introduced plastic holographic currencies and that reduced the quantum of counterfeits. Plastic currency also reduces the problem of annual soil notes or torn or damaged paper currencies as these plastic currencies have a long life of more than 20 years as opposed to the 20% of spoilage that occurs in paper currencies every year.
This money is printed every year according to the incremental GDP production in the economy and therefore backed by the total amount of goods and services produced inside the economy. Part of this economic activity is collected as taxes which allow governments to run their day to day affairs. In order to ascertain the correct tax amounts every government wants to have thorough information about the total economic activity within the country.
Another way of doing this is like the few western economies especially USA or China did, just print notes and inject in to economy as credit or borrow massively from FDI or foreign donors or governments themselves borrowing from their central bank or people (called Public Finance) to invest in massive infrastructure projects as India did during first 20 years of independence to boost purchasing power so that goods and services are purchased and economic activity is generated with a hope that it creates enough GDP to offset the value of printed notes. This creates an immediate sense of booming economies but over a period of time when this injection of credit does not produce enough GDP, will create economic bubbles and economies go bust. This situation leads to hyper inflation and then the governments will cancel all currencies and introduce higher and higher denominations of currencies as it happened in case of Germany before World War II or happening in Venezuela.
The incremental GDP production or the vibrancy of GDP production is measured in terms of how many units of money were spent to create 1 unit of GDP. That tells the health of the economy. Always the unit of money spent to create per unit of GDP production must be less than the unit of production of GDP. If the money spent to create GDP is more than the GDP then the economies are not working in proper order. For example in USA in the year 2016 $ 4 of debt was needed to create $ 1 of GDP. The same ratio holds to China too though China manipulates to show to the world their economy is healthy or incremental GDP is highest year over year.
Velocity of Money
This is a term of paramount importance in cash based economies. It is simply a measure as to how many times a unit of cash changes hands during the day. It is a multiplier of economic activity in a given period of time which is usually measured per day. This velocity of money will be different for the different components of Money classification within the economy from M0 to M4. The most concerned number is the velocity of money of M0 or cash component of economy. Almost other segments of cash from M1 to M4 tend to have less than maximum 2 as their velocity multiplier factor. The velocity of money for cash portion or M0 in India is roughly around 60 which means 1 single rupee from morning to evening changes 60 hands and thus create Rs 60 rupees worth of economic activity. In most western economies this velocity of money figure tends to be less than 3. Also this number will tell the health of the economy as for example it indicates in the context of India that 1 unit of money (rupee) creates 60 units (rupees) of GDP. This velocity becomes of paramount importance in terms of black economy. Even if governments withdraw all cash from the white economy and move the society to cashless economy, when people store money in alternate medium like gold, silver and real estate and use that as medium of exchange, coupled with velocity multiplier, that activity surpasses the white economy. That is the reason why any country that demonetizes for controlling black cash will by rule cancel all the higher denominations and never reintroduces them along with clamping limits on withdrawals and then go behind confiscating gold if it is there too much with citizens.
It is from this single perspective it can be confirmedly stated even by any economics 101 student that the black current round of demonetization is not to control or regulate black cash but to double the black cash as higher denomination currencies of double and quadruple values were introduced. Surprisingly when the objective of current round of demonetization in India is to create more black money then the tactics implemented to confiscate gold from ordinary citizens or institutions will explain the real motives of current round of demonetization as never in favor of ordinary Indian citizen in general or for the benefit of India in particular.
Sources of Black Cash/Money
When taxes are not paid properly or never paid at all then that portion of money is never known to the governments and that is called black money.
When in the name of progressive taxation following faulty Keynesian Models, governments tax corporations of individuals enormously to the tune of up to 60% to 75% then many of the honest corporations and individuals tend to evade taxes or show little income or no income at all and generate black money.
When bribes are paid or received in cash or kind they are also not reported as income and thus all of that activity becomes black money.
When kick backs or percentages are received to approve any government deals either by politicians or compliant officials or by both in any sphere of economic activity by foreign corporations or governments they also get added to the total quantum of back money.
When millions of Indians working in foreign countries send money to their relatives through non banking channels using money exchange services most of that money tend to get converted in to black money as none of them will deposit them in banks for the fear of paying taxes.
Government Generated Black cash/Money – Soiled Note Recirculation
Then there is an official government generated black money that may be called political black money which is a unique phenomenon in India and probably followed by other countries (we should be happy that we led the economics and public finance worldwide with such a novel idea).
A problem with all paper currencies is, every year 5% to 20% of the paper currencies are returned to central banks as soiled notes –tore, damaged, unusable, etc. This is 20% of the notes in case of India according to IBGC report p53; According to theory these notes to be destroyed burned completely and new notes are re issued in their place the following year to the volume of such soil notes destroyed.
Now recall the soiled-note-scandal brought to light e.g. by the Ex Prime Minister Deve Gowda episode and known to have been in existence since the time of T.A.Pai, Mrs. Indira Gandhi’s advisor. In India, these soil notes instead of being destroyed are being returned to the Political Parties of whoever is in power for their either personal usage or political usage along with reissuing the replacement paper currencies for the soiled notes. Over 40 years, this portion of never spoken scandal would be 56 Trillion Rupees, or about 0.9-Trillion USD entering in to Indian economy and invested in to real estate or other income generating ventures by all political parties in power for a future election spending.
When the assets purchased with this black money either in the form of gold or real estate generate profits that will keep on adding to the total of black money within the country.
When a portion of this money is taken out of economy and kept in foreign banks or when kick backs are received in huge government foreign purchase or joint venture deals or world bank or IMF projects then that money will be kept directly in foreign accounts of politicians or officials or their relatives or trusted ones in many foreign countries which allow such moneys to be kept safely and as white money and this add to the international component of domestic black money.
So in essence:
Black Money (BM) = Black Cash + Assets = BM D or Domestic (Black Cash + Black Assets) + BM I or International (Black Cash + Black Assets)
BM = BM D + BM I
At any given point of time the total black money can again be divided in to two parts – Black Money that exists within the country (BMD) and Black Money that is outside the country (BMI). All the black money that goes out of the country will no more be black money for those countries as they treat it as white money only. Their country laws specifically consider all moneys that enter their economy as white money only. Even if this white washed money re enters in to Indian economy it is not considered as Black money but as part of Foreign Direct Investment.
Black Economy = Economic activity generated using Black Money between two periods of time say t1 and t2. This is the activity that is done by using black cash and the productive aspect of black assets.
Black money (cash) generation in a given period of time usually corresponding to the GDP generation, (cash Portion) is always calculated as percentage of GDP. In many countries vary in their generation from as low as 10% to as high as 100%. According many international agencies the total generation of black money in India is equivalent to 100% of the regular economic activity. Though, many revenue agencies agree based on their practical experience, the amount to be around 50% to 75% of the economic activity in a given period of time. This is an estimate in a current year under consideration. This does not include the revenues generated in cash by the black cash investments of previous years.
What is Demonetization?
Demonetization is simply the cancellation of higher denomination currency so that the black money’s cash portion that was hoarded by the black money holders will not have any value of the stored money, thus they will not influence the policy decisions of government. The governments will reintroduce the same annulled currency to the extent of cancelled currencies in a lower denomination and use that new wealth retrieved from hoarding for national development purposes. In this process only the cash component of the black money will be annulled. Whatever assets that were created using the black money like real estate or gold or whatever part of the black money that was transferred out of the country in to foreign safe deposits cannot be annulled nor the money that will be generated by the black assets or foreign deposits that were created through black money, also cannot be annulled.
When we first demonetized few decades ago we did the same thing – cancelled all higher denomination notes leaving Rs 100 as the highest value currency. When we look at the first demonetization, India used to have currency values of 1000, 5000, 10,000 Rupees. When we demonetized the first time, the objective was to move this black money to Governmental control and use it for Nation-Building as opposed to it being used by petty private interests. To this end all denominations above 100 Rupees, were cancelled these denominations were not re-introduced for a long time — until India came under the regime of liberalization and privatization.
De-monetization as an economic measure has been implemented by several countries including as recently as Spain., Australia and Venezuela. However, except Venezuela which underwent hyperinflation, none of these countries re-issued currency of a higher denomination or even of the same denomination post demonetization. Further-more, they have kept post-demonetization restrictions on withdrawals to a bare minimum, so that the newly printed currency, will immediately go back into circulation and get to work towards National re-building.
Facing support and condemnation in equal amounts, the measure of demonetization is not a new concept for the world. There were other nations too that have tried changing their currency in the past. But strangely, for the first time ever in the entire history of money management, India re-introduced the same-denomination of currency after cancelling it and what is even more surprising was, introduced a higher-value denomination as well. Somehow, contrary to all past-cases in the world, and contrary to all the laws of Economics as well as of Common Sense, it was somehow supposed to be “A War on Black Money” done through reintroduction of higher denomination currencies. We did not hear any explanation that made any sense on this from any Economist anywhere in India. Minimal information that could be obtained in this regard was sketchy outlines by some public interest individuals on the Web.
Multi-million dollar paid economists and financial experts from any and every leading institute of India never satisfactorily explained to even the intelligent public as to how the re-introduction of the same currency after completely cancelling it out will prevent the further creation of black money that too when a new denomination of double the cancelled value is introduced, although the cancelling may re-locate part of the currently existing black money. In fact, if you introduce a higher denomination currency which, in this case, was the 2000 Rupee note, you are sending a public signal that you can actually double your black money in the next five years.
Estimates of Black Money in India
Fortunately or unfortunately, even today we do not have any calculation of the extent of the Black Money Generation in India, how it is stored and how it is transferred out of India to help every Western Economy….and then how this same Indian Black Money is brought back to India as Foreign Direct Investment to generate exorbitant interest and further wealth. No government agency ever had any theory or tried to calculate the approximate value of the black money in India. While every political party thumps their chest that they will bring this black money from outside of India, none even know how much of it is outside and how much of it is inside. While Sec 2.4.9 of the Finance Ministry report suggests this possibility of outside black money entering in to India as investment, and stop there. None of the investigative agencies ever tried to calculate or were prevented from calculating the certain amount which at least was stored outside and then brought back to India.
Many leading Western Economic think tanks have already predicted correctly that the Annual Indian Black Money Generation is equivalent to its current year’s White Money or/and black economy is equivalent to generation of white GDP. Which means that taken the black and white components of economy, India is the second largest economy, and not the fourth or fifth largest economy as many economists in India believe. If we add the black money generated in India over the past 25 years, since Liberalization, the total black money alone amounts to a whopping minimum of 30-40 Trillion Dollars, enough to bail out American Debt, European Debt and the British Public and Private debt combined and Chinese debt.
It is no wonder at all that suddenly every Western Nation wants to do business with India suddenly, only when their economies are going bust, and get a share of this black economy 40-Trillion dollar pie, which truly belongs to all the hard-working-honest-caring people of India, but is in the hands of a few commercial/political/ industrial/business houses and their lackeys and duly compliant bureaucrats. That is the reason why every economist in India misrepresents this plunder and loot of India as Shining India or Developing India. White Economy portion is any way officially given away to all western countries in the name of defense contracts etc, finally leaving the Indian economy and her human resources in absolute and abject poverty pushing them only for hand outs by either government or international aid agencies or missionaries.
In theory, the RBI could easily calculate the total number of notes printed since Independence, calculate the total value inside the Banking system, make a few subtractions (e.g. for soiled notes, Forex etc) from the former and publish an “if-all-people-were-honest” estimate of the difference which should be the money outside the Banking system at the current point of time, thus giving some indication of the extent of the Black cash component of Black Money in the economy. While, this simple calculation would, by no means be any accurate measure of the amount of Black Money, it does not mean that this calculation should not be done, at least as a first analysis…somewhat like a “first-order-approximation” in scientific jargon.
What actually has been done so far was, for example, a Finance Ministry Report on the subject of black money is to start from confusing complexity, then have various economists fighting with differences with each other on the same report, so that even in the reports on Black Money published by the Finance Ministry itself, there are big differences in the estimates. So, therefore, it is left to the Public-at-large to do their best guess as they usually do in many cases to understand what is happening around them. Then a mind numbing promise was made before every election that once the said party gets elected and form their government, they will bring the black money from outside, without mentioning the black money component inside India.
If, not only the Economists of the country, but the Finance Ministry itself goes on taking the position “this is impossible to estimate”, “there are too many differing assumptions”, “minimum available statistics-so-we-can’t say”, then what is the use of any economic theory at all? Certainly at least now, if 86% of all the cash in the country were to be reset via the demonetization, using the highest technology we claim to have, then from now on these estimates should be re-doable to within 86% accuracy. So, at least now, post de-monetization, do we have any fresh estimates of the Black Money in the country, or its rate of generation?
First important component of successful demonetization is to have reasonable studies on the Black-Cash to Black-Asset ratio inside the country. This ratio is critical in determining what will happen during de-monetization.
A “leading” JNU Economics Professor, who is also called an “expert on Black Money”, states that this ratio might be 1%.
Recent tax raids are being used to show this at 6% (with no inputs on sample-size-details!!).
The figures from the 2012 Finance Ministry report of the Prosecuted Cases (Table 4.3, sec 4.7.12)- all the way from 2006-2012- show this black money -cash asset ratio-to be at about 50%, this list being the far more probable and correct value. Strange that the JNU professor has also been quoted elsewhere in the same Finance Ministry Report and one wonders whether the “leading JNU professor, expert on black Money” has even bothered reading the finance ministry report. Does his figure make sense when compared against input from the IBGC (NIBM/Fletcher-CoC) report, which places a very high value on the M0 or cash portion in Indian economy to M2 ratio in India—over 50%?
Second important component in the calculation of black money is to estimate the velocity of the money within the economy which tells how much economic activity the currency is able to generate both in black and white segments in a given period of time. If we are not able to estimate the “velocity” of the Black and the White components of the money, then how do we relate the Annual Black-money creation and circulation to Annual Black-economy Generation? Surprisingly no mention whatsoever of this velocity of money estimate is made in the Finance ministry report or even any value mentioned for the velocity of money. Not only that, this report confuses Black Money, Black Income and Black Economy, starting off on the assumption that there is no accepted definition for these terms, then using one definition here, another there, and another from who knows where.
The third important component in estimating black money is the ratio of black money (cash + assets) Indians held Abroad to the ones held inside India. It is another critical number in determining what would happen during demonetization. Not only that, this ratio is critical to understand many National-Security issues as well. Do we have any estimate for this ratio? Does the figure in the Finance Ministry’s Report Annexure Table-1 that shows Swiss Banks Liabilities towards Indians is Rs 10,000 Crores (2010 figure, max 23000 Crore) make any sense if just one low-level politician in South India spent in the range of Rs 500-1000 crores on his daughter’s wedding post-demonetization and around Rs 200 crores(may be even more) only on the diamond jewelry and gold jari Saree? Does this seem to compare with the claim “roughly 72.2 per cent of the illicit assets comprising the [Indian] underground economy is held abroad.” as claimed by “The Drivers and Dynamics of Illicit Financial Flows from India” (pub: Global Financial Integrity) quoted by Sec 2.7.4 of Finance Ministry Report? If these figures in the Finance Ministry are correct then does demonetization inside India make any sense at all, if 72% of the Indian Black economy is outside India as part of white economies in those countries where it is held? Does this mean the PMO office never cared to read or take in to account the Ministry of Finance Report, yet claim demonetization is done to checkmate black money inside the country?
The fourth important component in calculating the effect of demonetization is to estimate the ratio of black cash to that of black gold stored within the country as the deflation affects both of these components differently. We neither have any clue of this ratio nor a clue as to how much gold is there inside the country. If none of these above quantities are measurable or definable as many Indian economists and finance experts say, then how do they know or declare that demonetization will solve the problem of black money or how do they calculate 1 dollar = 65.5 rupees and its change on a day-to-day basis so exactly?
If the Government’s Finance Ministry report itself is unable to estimate the annual Black Money generation to GDP ratio with standard deviations of over 100%, furthermore, confusing the Black-Economy with the Black Money Creation, then how do they project a deflation-calculation properly, if the Black Money were to be as they claim, annulled? And have they made this projection at all?
What should have been the expected deflation if there was 0.25 Trillion USD in white, and 4.75 Trillion USD in Black, if the Black Money was truly and properly annulled and if it is not annulled or partially annulled or if it is regenerated more than what was annulled? Did we observe anything even remotely close to this? Please repeat this calculation using not the bare-minimum, but using instead the Prime-Minister’s indication on the quantum of the Black Money. What would be the deflation figure in this case? Even if you make the ridiculous assumption of BM Outside India : BM Inside India = 72:28 still what does this deflation work out to?
Black Money in India (Approximations)
- Government Generated Black Money Soiled Note Recirculation
The money deposited by General Public in this demonetization was ~14 Trillion Rupees (~0.25 Trillion USD). So at least these many notes are in circulation in this year; Assume 20% of the notes will be returned as soiled-notes (see IBGC report p53); recall the soiled-note-scandal brought to light e.g. by the Deve Gowda episode and known to have been in existence since the time of T.A.Pai, Mrs. Indira Gandhi’s advisor. These instead of being destroyed, are being returned to the Political Parties of whoever was or is in power. Over 40 years, this would be 56 Trillion Rupees, or about 0.9-Trillion USD, allowing wide for lower rates in the earlier part of the 40 years. This is the smallest of all numbers. For comparison, note that only one-fourth of it was returned by hard-working Indians in the current demonetization.
- As Percentage of GDP
The annual generation of Black Money in India as a fraction of the GDP estimates on this one vary from 20 to at least 100%; the phrase Black Money and Black Economy perhaps being incorrectly used in each-other’s place (related to each other by a velocity of money whose estimates again vary according to source, or no estimate at all for black-component). Based on this, the amount of Black Money generated since the first demonetization should be at a minimum 30-70 Trillion Dollars, allowing for very heavy variations as claimed in the Finance Ministry Report, and assumptions on the velocity as explained above.
- Black Money as stocked outside the country
The Black Money in the country can also be estimated from the Black Money outside using internationally available information and our assumption that only about 10% of the Country’s Black Money will be moved outside.
- The CBI report itself confirms over 500 billion USD is stacked by Indians in Black Money in Banks outside. This may be limited to the amount they have investigated, and is the very lowest of estimates, which will imply 5-Trillion USD black money (Cash + assets) inside India.
- Just before the 2009 elections, Indian media reported that at least 1.4 Trillion USD is illegally held abroad. This is also the same estimate obtainable from a Global Financial Integrity report. This gives an estimate of 14 Trillion USD black money inside the country (cash + assets).
- From the information on our first demonetization, for every rupee that came through the banking system, 10 rupees was deposited by the religious institutions. So in the current round, if USD 250 billion entered into the banking channel, twenty times that amount or about 20 x 250 billion went via the Money Lenders – morphed religious institutions! This will give an estimate of USD 5 Trillion as the Black Currency.
- German, Canadian and French reports working on international money laundering and Panama Papers and other tax heavens, say that black money (cash) about 7 Trillion USD belonging to Indians, with probably an equal amount in assets is in the banking system outside India. So a figure of about 15 Trillion seems to be a reasonable figure for the amount of Black (cash + assets) stacked outside and this gives a whopping USD 150 trillion worth of black money inside India.
4. According to the financial expert and insider, Hervey Falciani, who says the Government of India has taken only a miniscule amount of the data available with him, “millions of crores” are still flowing out. Even if you assume ‘millions’ means ’5 millions’ and the currency is rupees, this would tell us that about 1- Trillion USD is flowing out annually to black money laundering safe heavens. Although, he may not have used the word, if he implied ‘annually’ he most probably did, this figure of 1 Trillion USD flowing out annually is also the estimate from GFI suggesting that in between 2002-6, the average outflow from all developing countries was 1 Trillion (referred to also in Finance Ministry report 2.7.4). India would have the major share. This would again indicate about 25 Trillion USD is the number for the Indian Black Money held outside, allowing for much lower values in the earlier years. This gives another mind numbing USD 250 trillions of black money inside India.
- Black Money Estimates by our Prime Minister
The statement of our Current Honorable Prime Minister Shri Narendra Modi openly promised of bringing Rs. 15 Lakh into every Indian account from the Black Money abroad, this would present a figure of about $ 5-$ 25 Trillion USD (assuming 1 account per family of 5- or one account per 1- person). So according to PM’s estimate there must be around USD 50 trillion to $ 250 trillion worth of black money inside the country.
Thus, the total black cash inside the country may well be anywhere at a whopping 5-14-100-150-250 Trillion USD. The lowest being the CBI-accounts-investigated-confirmed figure, the high number stemming from the most of western Fraud Investigators figure -who at least can do impartial calculations when it pertains to third world money issues as this does not affect their local political calculations-and Falciani Calculation.
So the most reasonable figure on black money is 150 – 250 Trillion USD in black (cash + assets) inside India, since this is the figure that stems from Honorable Prime Minister Narendra Modi as well as being the estimate of the Germans, the French, and the Canadians.
The RBI has refused to answer any of the above questions requested even under the RTI, clearly stating that there would be a “threat to life” if they answered. Whose responsibility is it to ensure their security? Either the RBI’s economists have completely failed in their duty to the People of India, OR India’s Internal Security Apparatus has failed to provide them the Security and allow them to speak the truth. Either way a change in the country’s way of functioning is required.
That none of these questions can be answered and no numbers are given by itself is the proof that the De-monetization is not what it was stated to be, AND it also exemplifies that the IIMs, the Economic Professors, Financial Experts of the country have badly failed in their duty, relying on big and catchy slogans rather than on solid calculations and sound economic theory.
If it is a question of lack of knowledge or of ignorance in the Economics and finance disciplines, then all concerned persons better get back to do some serious studies because they are using Public Money to claim as experts and getting Public Respect. Why have they not done it until now? But, more seriously, if they have the knowledge and do not want to do this calculation, either out of fear or for selfish cause, then they are certainly complicit with the Fraud and Economic Crimes Perpetuated against the people of India, and are compliant in Sedition along with their political bosses.
India’s First Round of Demonetization – Effects
More Black Money converted in to White, Blessed and Sanctified – Saffron Gate 1.
The complete corrupting of the religious and spiritual establishment of India from its relatively humble, morally-upright and ethically un-compromising stand, started with first British bribing the scholars from Ujjain 180 years ago to publish wrong dates of eclipse and then coming with correct dates to make millions of Indians lose their faith in the astronomical wisdom and then reached its peak and perfection with the first de-monetization attempt in India. This corruption scandal which might as well be called “Saffron-Gate-1”, is probably larger than any other corruption scandal in the world, enabling India to occupy the Number-1 position in spiritually-corrupted countries all over the world—a distinction we have not achieved in any other field, in the present day.
When the first demonetization occurred, every high-denomination note above Rupees 100 was declared void, but unlike in the current de-monetization the voided higher currencies were not re-introduced and thus the very purpose of the first de-monetization was not defeated at least in its theoretical spirit. With this nullification the black-money hoarders panicked unlike in the current latest demonetization where they are happy to convert more black in to white money.
During the first round or demonetization, many of the religious institutions approached the authorities and requested an exemption for themselves so that they could deposit all the cash they had which was offered to them by way of donations by spiritually and religiously- minded God-fearing devotees of various states. As these “poor spiritual-religious-institutions” generally ‘did not care about how much money they received’, the Government exempted them from the regular time and volume limits on currency deposits which were imposed on individuals or corporations at that time in India.
However, this exemption born from a genuine understanding of the mode-of-operation of the religious and spiritual institutes was turned into a mega-fraud by the nexus of Political-Corporate-Industrial -criminals. A percentage-deal was cut with the religious institutes by the black money holders, in which the black money was donated to these spiritual institutions who in turn converted the entire black-money into white using the special privilege and then retained a percentage of it for themselves and returned the balance converted white money to the same black-money holders. The fraction retained by the religious institutions amounted to thousands of crores of Rupees.
Following this, these religious institutes became full-fledged mafias investing their suddenly gotten fortunes into real-estate and allied commercial activities. Some entrepreneurial ones went multi-national and becoming in general, Black Money launders of other religious institutes and of politicians , creating massive amounts of wealth and commercial ventures outside India, especially in US, Canada, New Zealand, England and numerous small safe heaven islands-to name a few. A comprehensive list of such people including may politicians and businessmen was offered to the Government of India, by the German, Canadian and French Governments which were investigating the Bank and tax frauds, money laundering and Panama Papers etc, and by the few independent activists/investigators while searching for the truth in the Panama Papers as recently as 2015.
Every notable leader of all political/religious/spiritual establishment who beat their chest at the first available instance, while proclaiming to bring the black money back into India and to stop corruption, has literally refused to touch this list which was offered to us by the German and other Governments and by the investigative journalists.
The Enforcement directorate over the last five or six years determined that many and most of the Indian religious institutions are the recipients of thousands of Crores of Rupees from outside which were neither audited, nor subject to public scrutiny including by the institutional members. No cases filed, no punishments handed out.
Second Round of Demonetization
Effects of Current Round of Demonetization
PIRATIZATION oops PRIVATIZATION!
– from Indian Economic Marvel to Anglo-American-Economic Miracle.
What we call the Indian Economic Miracle is nothing but the sweat and blood of millions of Indians from the day we got in-dependence, in whatever fractured way, and were left to the vultures of international banking and financial elite. The new nation thus born was left with less than Rs 100 crores to manage, survive and grow. Immediately thereafter, a horrific war and partition was pushed upon us, which saw assets worth close to a Trillion USD being wiped out. After this 1-Trillion dollar loss, and before we could recover from the human and resource loss of partition, Mahatma Gandhi was assassinated and the country was thrown into a psychological trauma and a new mental partition was further created:- a permanent division of “Secularists” versus “Nationalists”, where both these groups being actively created and controlled by the British as part of their divide-and-rule strategy. It is indeed a remarkable feat by the political-religious community and social leaders to put this trauma of the Mahatma Gandhi’s death, and horrors of partition on the back-burner, and yet with a heavy heart single mindedly dedicated to re-build the nation to the level of a world-power in the next twenty five years.
In this situation, the visionary Indians and leaders and people came together as a family to embark on re-building our Nation, with a sheer determination to survive and reclaim the ancient glory of India, with whatever little knowledge that was left over with them post manipulations of the British historians linguistic experts and orientalists.
These Visionaries adopted a socialist economic model for infrastructure development and an agrarian economic model for the food-self-sufficiency and embarked upon massive public sector investments to achieve self-sufficiency in defense. But still continuing the British-trend, Banking, Insurance and Oil industries were left in the Private hands, and these perpetuated frauds and prevented the formation of Capital in India.
With a single master stroke, Feroze Gandhi nationalized all the insurance industries, resulting in the now gigantic Life Insurance Corporation of India (LIC). The money needed for development of infrastructural projects was thus the people’s savings put into the LIC. The war with China was slapped onto us, with two aims: to demoralize our army and secondly to drain our resources. Nevertheless, millions of unfazed Indians donated whatever they wore in Gold towards financing the defense of our country in this war. After the war with China, we nationalized our Banking and after the 1971 war India nationalized the oil industry, and expanded our Public Sector Units to cover many more fields in our life.
Without a single rupee by way of foreign debt, India generated Lakhs of Crores internally to achieve remarkable food- defense- and economic- sufficiency. And when the internal security apparatus realized that the British agents in India whose properties were nationalized became the conduits for the creation of the Black-Economy and the Black-Money on a massive scale, with the stroke of pen most of that Black-Money was neutralized and brought into the Public Accounting domain for further development of India making it a leading nation in terms of Science, Space and Nuclear Energy.
We mention again that in the previous round of demonetization (1978), higher-denomination currencies that were cancelled were not re-introduced. This toil of the sweat and blood of the poor, common, honest Indian with the vision, and iron-willed dedication and patriotism towards the country and a colossal understanding of the geopolitical and international colonial dimensions of death and destruction, though not exactly termed as geopolitics, made India by the turn of the century a giant economic engine based on its own strength of manufacturing and agriculture with a USD 1.2 Trillion white and USD 1.2 Trillion black economy (pre-Liberalization).
But around the world, by this time, the so-called Anglo-American Economies were collapsing under the massive burdens of debt, which they had incurred by complicated webs of fraud and colossal greed and hedonistic avarice. That is where their strategists realized that they could survive if they could parasite on the Indian Economic Miracle, and by plundering what the hard working Indians had created over the past 60 years. This was done by privatization and Liberalization, with the Privatization being spear-headed by the erstwhile owners of the East India Company i.e. the Bank of England. In doing so, they also fulfilled the promise made by Mountbatten to Churchill: “if Churchill were to lend unconditional support to his India-independence theory for now, in the next 50 years, not just British India, but the entire India would be re-occupied.” Perhaps, this may be the only instance where an Englishman has kept his word.
From the beginning of Liberalization and Privatization, The Monitor group of England that became in charge of overseeing the process of India’s Privatization was closely tied with the British Intelligence agencies and the foreign office. Gradually the British Embassy in India started drafting 5 year plans for Planning Commission of India. And, finally recently we discarded the Planning Commission itself, probably as everything is taken care by Britain; Indians felt it was simply a waste of money on salaries of Indian employees.
Towards the middle of the twentieth century, the Colonial Era started winding down, and socialist republics started coming up. All newly formed republics and nation-states have realized the only way to re-build and recover their economies after the plunder perpetuated during the colonial era was to follow the economic model of socialism, with the government spending left over resources for the benefit of one and all. Thus starting from 1920 to 1970, huge economic assets were created in more than forty countries under the tight control and supervision of their own watchful governments. Though there were complaints about some level of mismanagement of the funds, but on an overall level, trillions of dollars worth of economic assets were created in these countries, these assets being off-limits to every Colonial Power.
In the absence of the free flow of goods under the concept of ‘global free trade’ read free plunder of resources, the colonial powers started starving and could not even enter the economic structure, with the exception of the USA which had cornered most of the reparations from World War -2. Thus, the push started from 1950’s to disrupt these socialist economies and oust their political leadership under any available flimsy pretext, and to install puppet regimes which would then sell off the massive economic assets of the country under consideration for a few cents or for a dollar.
Every war that happened during this period, every coup that took place aimed at knocking down the socialist republics one after the other and sucking their resources into the un-maintainable, wasteful Western Economic Lifestyle based on faulty economic theories. After thirty such countries were knocked down, the process of divide and rule and plunder was christened with a nice-sounding name: “Privatization and Liberalization”. The theoretical framework of this was proposed by the Chairman of the Bank of England around 1971. The final frontiers in this process of knocking down the country’s resources were Russia and India.
Russia with an estimated worth of 75 Trillion USD natural resources became the prime target during the eighties. The Colonial Powers almost succeeded in occupying Russia, but for the dawning of the era of Vladimir Putin who ruthlessly purged one and all, literally hunting them whether inside or outside the country, and restoring the economic self-reliance of Mother Russia.
As a stop gap South Korean Economic Miracle was completely disrupted and taken in to the hands of MNCs based in USA. With Russia slipping out of their hands, the eyes were set on an unfathomably resource-rich country, which even after thousand years of non-stop plunder and looting still captures the imagination of one and all, thugs, thieves and robber-barons and international development agencies alike with her yet-unknown massive resource potential — that country is India.
With the assassination of two Prime Ministers in succession, a stage was set for the final round of Liberalization and Privatization in India, using the Mantra of “Development” as if India was some aboriginal country.
The Black component inside India, in terms of assets and cash at minimum quantum, alone is more than 70 Trillion USD. This is roughly equal to the value of the entire natural resource base of Russia. No one knows how much Gold is with the people, no one knows how many diamonds, precious stones and metals are with the people and religious and spiritual institutes of India, no one knows how vast the unexcavated Gold Reserves is. No one knows what quantity of other natural resources including the rare-earth metals are hidden within the Indian continent, no one knows what were the technologies used to extract and use them over the past thousands of years. What we know now is when it was declared that there were no diamond deposits in India anywhere around 1870 and British East India Company moved to South Africa to exploit her diamond reserves. But suddenly since last 5 years out of the blue we are saying that India exports more than 1 Billion dollar worth of raw diamonds/colored stones. Where did they come from? From newly discovered diamond mines or gradual looting of religious/cultural institutional diamonds and showing them as mined diamonds?
That is the reason why when world bodies compiled about the total of natural resources in all countries, never in that India was mentioned nor Indian resource bases were compiled. All world bodies probably knew that India is still a possession of Britain and they need permission to calculate such data. By the way, China’s total worth of natural resources is close to US $ 23 trillion and still it is number two economy in the world, set to become a global power in Asia way ahead of India. Whereas, the total value of the Chinese resources (23 trillion dollars) is only one third of black money component in India. Still, we are told “Look East” and all are already looking, God knows where figuring out which is the eastern direction from their geographical location within India!
But what the west certainly knew are the following facts and statistics that were compiled over the past fifty years since Independence, and though we, the Indians, have a phenomenal, abysmal ignorance about what India had in terms of human and economic resources prior to Independence. The value of immovable property of the several-thousand spiritual and religious institutions of Karnataka alone is valued at 30-50,000 crores (7.5 b USD). The most conservative estimate of the Gold holdings under one vault alone of the temple of Shri Padmanabha Swamy in Tiruvanathapuram is valued at a whopping Trillion USD. The income generated from the former united Andhra-Pradesh state from the Prostitution rings alone is in far excess of Rs 30,000 crores (4.5 b USD) per year. (Rs 1000 crore ~ 155 million USD)
The register maintained in the Tirumala Temple that deals with the broken non-usable discarded jewelry and diamonds is more than 500-billion USD. Only in India we hear that diamonds have wear and tear and could be broken in to dust if we do not use them for long time. But almost everyone in Tirumala Tirupati knew all these broken, discarded jewelry or powdered diamonds were sold for hefty prices in Chennai, Kolkata and Dubai. The average wealth amassed by any Chief Minister who held the position for more than a decade is over Rs. 50,000 crores (7.5 b USD). The total amount of money swindled away in the top 35 scams is over 8 Lakh crore (120 billion USD). The amount of NPAs(Non Performing assets or loans taken by politicians and big business houses which cannot be collected by poor bank officials) written off by the SBI recently is Rs. 280,000 crores (42 b USD). The total amount of tax evaded by major 30 industrial corporations over the past fifty years is close to 3 Lakh crores (45 b USD). It is no wonder these figures with large numbers of zeroes do not make sense to Indians, but they make very clear economic sense to the collapsing Western Economies, who realize that India can bail out every other economy of the World for the next 100 years. The list if we start compiling about what we have, what we are losing, will be a Magnum Opus of two or three volumes and could well be titled “Corruption India Gate 1 ,2 & 3”.
The Indian economy now stands at 1.2 Trillion USD, which is what we call the white economy and the Black economy is another 1.2 Trillion USD. Our entire national debt is less than 90 billion USD.
If the massive assets created under the Indian Economic Miracle were to be sucked out of India, this would create a massive Western Economic Miracle. This process has started since 1985 and is continuing with and incremental numbing and dumbfounding of the minds of the Indian population, subjecting them to a massive array of propaganda with every Government turning India into a sloganocracy rather than into a thinking participative democracy.
Every research in to every aspect of self sufficiency was killed from defense to agriculture and handed over to many MNCs which are a new avatar of East India Companies including ‘Chinese West India Companies’ at double or triple the price of the projects with standard 10% to 25% commissions/kickbacks built in. Many senior scientists were retired prematurely who are patriotic and who opposed such ventures. Many western economies are happy with that as these ridiculous deals protect their economic interests and jobs while deprive India of her self sufficient research. To silence the complaining Indians governments are coming up with schemes of Universal Basic Income or other such brilliant slogans etc.
The Real Motives of 2016 Demonetization in India
- Plunder Indian Black Cash for western Economic Bailout and Welfare
The current round of demonetization (2016) is the first large-scale plunder executed on India. Let us take a closer look. On the surface, we invalidated all the 500 and 1000 Rupee notes and in the process, according to official figures, 14 Trillion Rupees (~0.25 billion USD) moved into the Banking system, from the general working public. Then we re-introduced the same denomination 500 and a double denomination of Rs. 2000 instead of cancelled Rs 1000; the last two steps having no precedent in the entire history of demonetization in the world in any country till now. Many argue that Venezuela introduced very high denomination currencies but Venezuela was suffering from hyper inflation where its currency lost the whole value and that loosing value is due to deflation not because of black money or black economy.
And then, we clamped restrictions on withdrawals to the bear-minimum limits, thus cornering all the cash into the Banking system. What happens to the velocity of the white money here? It drops heavily. More interestingly what happens to the velocity of black money? Again though the white money velocity drops temporarily it will bound back through electronic payments. Each time payment is done a small percent of commission was taken not by government banks but by private money clearing houses who rake up hundreds of crores in commissions alone.
Of particular note is that this 14 Trillion Rupees (0.25 Trillion USD) was the money put into the system by the General Honest and Hard-working people of India, the vast majority of who are not black-money hoarders. The black money which is about several tens of times this amount which was stacked up with the corrupt officials, politicians, industrialists, hawala dealers and other such groups, could not and did not go into the Banking system, if it didn’t, there is an obvious problem. Then where did it go?
Here enters the Re-monetization of Black Money.
Where did the massive amount of Black Money go? It is a simple question to which everyone-from anti national government critics to patriot politicians except Brilliant Economists and ‘honest and career’ financial experts knew the answer….even a rickshaw puller on the street could tell you the first part of where the black money went. But amazingly neither the corporate media, which has become a mirror image of the US fake media, nor the Indian economists, nor the Indian bankers ever discussed this question, the first part of the answer to which being common knowledge in the public.
But anyway, the following lines will explain the effects of this round of de-monetization. Most of the money that has not entered the system from the above groups, valued at a barest of minimum estimates at 5 Trillion USD was bought by many illegitimate money-exchangers at a discounted-rate, up-to 40%. These money exchangers who are connected to various political parties who were financing gold, dollar, pound and diamond and narcotic smuggling operations and are spread all across the West Coast Gujarat, Rajastan, Delhi and Southern Coastal towns of Tamil Nadu and Kerala, swung into action and purchased the entire or substantial cash portion of Black Money at a discount of up to 40%. The next obvious question is does, either the Enforcement Directorate, the Income Tax Department, the CBI, the Police, the IB or any other branch of the Government have a detailed list of who these illegitimate money-exchangers were? Why they bought these massive amounts of money?
Now the next obvious question is what did these illegitimate money-exchangers do with this invalidated currency that has no value? Were they Saints trying to help the ignorant black money hoarders and people of India who could not go to the banking system for help?
Well no, the same people who violate every international and national law and became a vehicle to suck the blood of the Indian Common Man could not have suddenly become saints! They did not purchase the money to alleviate the suffering of their fellow Indians at 40% discount. Then, what did they do with the cash? What do they do with this invalidated currency? Where did they exchange that? Who exchanged that? How this currency was exchanged? They became rich overnight by 30% with the help of the black money of their fellow corrupt Indians. The answers to the last three questions will tell the grand great fraud of demonetization which everybody at highest circles knew but national “Pakistan loving China caring …..Terrorists”
Many pointed a finger blaming the Banks, specifically private banks and that too those banks that were set up with the royal help of England during the current round of PIRATIZATION oops should be Privatization. But the question is when the bank cash dispersal was governed with so many rules, regulations and dozens of signatures even to disperse Rs 10 rupees to the rightful depositor how can thousands of crores be exchanged with “honest money launderers” without being supported by highest levels of government or political circles.
So, we had to believe that when the common man was standing for hours in the heat of the Sun to withdraw 4000 Rupees, that the “Corrupt Bankers” sold all the newly printed currency of the same-denomination to these black-money hoarding groups in high priority order (e.g. in just one exposed case, a low-level opposition party official in a southern state was caught with several thousand crores of newly issued currency and promptly the patriot politicians blamed non patriotic bankers as cause and launched a thorough investigation. But when another patriotic politician from the same state who was in jail for defrauding Government of India and exporting lot of iron to China who is now ready to fight with India spent Rs 500 crores of money on sarees of his daughter in her marriage none of the patriots could figure out how this money can divinely manifest.
This legitimized money by these money launderers was then transferred out of India into the US, Canada, England and Israel by purchasing dollars, pounds, diamonds and gold in the international markets. This sudden flow of money into the International Markets from India explains overnight hike in the price of Gold, and the hike in the exchange value of dollar and pound, jump of more than 50% in real estate prices in Canada and Australia though these countries were slated for real estate bubble since last two years, and though there was no valid economic reason that existed either in Europe or in America at the same time to explain this hike. So when every leading European economist had predicted that the value of the Pound will fall heavily post-Brexit, but yet —defying all those predictions of the European Economists— yet lo and behold! Surprise of surprises!! —the pound actually appreciated and Britain declared that they would be able to sustain the economic losses of the Brexit. At the same stretch of time, even US and Canada predicted a revival of their nearly-destroyed real-estate markets and a revival of their long-pending infrastructure projects slated at a whopping 2-Trillion USD!
So, then from the Perspective of the Americans and the British, the obvious question they asked for their own motive was: “Why not?? — Why not let Britain Survive and Why not let America Revive?” To accomplish this, both of them were able to move 4 Trillion USD of hard earned Indian money into their economies, and pump it into their economies in a matter of one to three weeks – a remarkable improvement from the prolonged robbery of East India Companies which took 200 years to move one tenth of the above value in gold and cash! Who says there is no communication and transport revolution inside our beloved Developing India during this divine Multinational Ordained Development of India under their best possible PIRATIZATION oops PRIVATIZATION?
What is rather interesting but most unobserved point is the seemingly coincidental presence of the Head of State of England as well as the President of Israel during the demonetization of India. This indeed was made more colourful by the media rather than presenting that as a matter to be analyzed.
While our own late Prime Minister Mrs Indira Gandhi was not allowed entry into the Puri temple on the flimsy grounds that she had married a Parsi (who are actually very much a part of our own civilization), the British Prime Minister, a foreigner and of a Semitic faith, was by your own priests elevated to the level of the Goddess inside the sanctum sanctorum of a Temple, precisely when this saga of demonetization was going on.
As this entire saga being too complex for the Indian Economists to understand, our Prime Minister decided not to rely on them and handed over the process of de-monetization to the Israeli-based economists and their advisors, and himself set out for a vacation in Japan.
Why is it that our Honorable Prime Minister did not take the advice of Indian Economists, but chose to depend instead upon Israeli Economists/American Economic Think Tanks/British based Friends-and-Family for his de-monetization decision? If he is so much confident that the Indian economists are useless, what immediate steps have been taken to improve the status of learning Economics in India? Doesn’t this act of the country leader put down the dignity of the country? Doesn’t this prove shameful to the country which gave birth to many great Economists like Chanakya? Is it really true that India is incapable of producing even a single economist who could help the Prime Minister in improving the country’s economy?
Every other country that de-monetized including as recently as Spain, never re-issued the same denomination or a higher denomination, except Venezuela. Because of the hyperinflation, both Venezuela recently and Germany during 1930s, had to introduce high denomination currencies cancelling all the lower values. Because the prices of the items, say for chocolate, were quoted in hundreds and thousands of Marcs, in the then German currency, after hyper inflation was set in. In fact, after demonetization, many countries have kept a restriction on withdrawals to a minimum limit, so that whatever is currently printed to the extent of cancelled denomination, it is used for the National rebuilding.
- Confiscate Repatriated Savings, bail out Corporate NPAS to create more black money – Create Crony Capitalism for political commissions
On a relatively much smaller note, let us mention what was done in India with the money deposited in the banks. Once the money was collected into the Public Sector Banks and put the restrictions on the cash withdrawals, they have written off the Non-Performing-Assets bad loans to the tune of lakhs of crores, which were in the first place, given to the Politicians or Industrialists who have borrowed thousands of crores and never paid back a single penny (e.g. Kingfisher, Tata and many others) across the political spectrum under every government since Liberalization. Most of this money was used to revive sick industries in Britain, Europe, America, from which not a single pie was paid back to the Indian Banks. By cancelling all this debt, we have converted Indian white money into that much black money in the economy but by cancelling the loans we converted this black money in to the white money of Western economies. But in this saga of cancelling NPAS the honest white money hard earned by poor uneducated millions of immigrants was used along with a portion of black money.
Honesty Punished and Dishonesty rewarded
The maximum sufferers in this saga of cash confiscation were and are the voiceless faceless poor labor immigrant dependents inside India. These laborers worked hard in foreign countries and send every unit of currency for their families, parents or elderly. These transactions of huge volumes of white cash never come to India through regular banking channels. Instead they approach money exchangers in their countries where they worked and pay them in foreign currencies and these money exchangers hand over cash to the relatives of immigrants in India often a little bit more than the actual banking exchange rates. Most of these relatives will convert these moneys in to real estate or gold or lend it to other needy and as a matter of rule never keep these moneys in Banks idly. During the current round of demonetization when these poor parents and relatives deposited whatever cash they have, an average lot of at least Rs 5 Lacs, they were asked to produce a certificate or affidavit and show proof as to from where they got these moneys knowing fully well that came from their children working abroad and in the absence of such proof all their moneys were confiscated. Every political party wanted these immigrants to send the money back to India so that our foreign exchange reserves look good. Probably this kind of confiscation could be in thousands of crores and that money is an additional bonus for the bank officials and their political bosses and NPA holding businessmen who have their debt burdens reduced drastically. What a wonderful process of PIRATIZATION oops Privatization!
The wise bankers have not yet explained why a common man could not withdraw more than Rs. 4000 from an ATM while politically connected Industrialists could withdraw thousands of crores and invest in England and America to revive those countries sick Industries. Of course, the Banking Chiefs are saying they are not cancelling the loans, but are keeping them in the Escrow Accounts and will collect them later. Somebody should explain to the people of India that if in the last 60 years they could not collect a single pie from them, then what are the odds and chances of whatsoever of them doing it now-probably same odds as one get stuck with a lightning while he is sleeping in his bed room on a hot summer mid night when the temperature is around 35 degrees Celsius or same odds of having each of us having a ghost in our bedroom roofs.
In order to facilitate the help given by these Bankers and government, the unscrupulous politicians/industrialists, the requirement to put the identities of the donors on the political contributions has been removed in the recent finance bill so that these individuals can donate as much money to the political parties as donations for upcoming elections.
But the banks are not only sitting on Rs 2.85 Lakh Crores (60 billion USD) of NPAs, they are also sitting on 100 times that value in terms of physical assets, which according to accounting depreciation rules will show as zero in their books. But the experienced accountants, international bankers, crooked politicians and the heirs of the East India Company, know the value of these assets and of the banks that own them. The Governments want to piratize oops.. privatize these Public Sector Banks for all this “India-loving, India-favoring, India-Development” shouting groups do not want to purchase these PSUs with the debt. So they want to zero out the debt, purchase the bank suck the invisible assets and exit. So much for the domestic aspect of what was done with the white money collected; it was converted into Black Money, although the scale was much smaller than what was done with the money outside India.
But there is still something that does not add up with the picture presented above. If the Indian banks had got 14 trillion rupees this gets only 200 billion dollars. So officially RBI can print notes to the tune of 200 billion dollars. But the cash infusion into the American and British economies as explained above was about 4Trillion Dollars. Then where did the balance of Indian currency come from? Who printed them? Where it was printed? As has been noted even in our Parliamentary Committee Reports, the printing of Indian currency has been given to more than one foreign country more than once before. The public of India learnt about it much later via the Parliamentary reports. It would of course now merit the question: So, in the recent de-monetization (both prior to- and post-) was the money printed from outside the country and the figures being given to us by our financial centers are the correct ones as for as Indian deposits were concerned and when we take the overall black money that was cashed.
The complete absence of any critical role of Indian secular or Patriotic Economists and IIMs and the minimal role of any of the NIBM, in what is a major national economic process, is indicative of their actual irrelevance in anything meaningful or in anything that is directly observed. Neither did we see them as much as offer any other convincing explanation to the people of India who experienced the event, nor were they taken into confidence by their own government.
Why can’t we see an independently-set up a panel of Eminent Economic Professors being given an insight into the working of the RBI and be able to come up with Economic Theories that will tell us what is really happening in the country? This panel changing every two-years or so and drawn up from Universities across the country? Instead of the public seeing a highly erratic set of facts, confused theories combined with big words being used to destroy all common-sense questioning, with Economic Professors giving explanations that are only marginally more illumining than that which un-educated common men talk, aping the words put into their ears by the corporate fake media?
- Confiscation of Individual and Institutional Gold
Roughly 86% of India’s economic activity happened in cash at the time much of it was banned. Presumably that includes the $19-billion-per-year retail gold industry which is the official figure and probably 100 times more than that occurs in the unreported black economy of India. Again, it appears that India’s government (central bankers) wants a bigger cut of the action and to better track the private assets of citizens. Now, under the guise of “improving transparency” and forming a “common market,” India has begun targeting gold with new taxes, regulation, and incentives for citizens to turn over their undeclared gold to the financial sector.
India’s government is teaming up with crony gold dealers to plan a complete revamp of its gold policy – which is always a code for “control, regulate and tax. The plans being worked out by the finance and commerce ministries along with industry groups should be finalized by the end of March,
India recently placed a 3% nationwide Goods and Services Tax (GST) on gold lower than the 5 percent expected, that came into effect on July 1st. Grateful Indian slaves celebrated the event as a “lower than expected rate” and as creating a “common market” or erstwhile common wealth market to make India’s private wealth as a common wealth of England.
Learning tips from the former communist regimes under the concept of Liberalization and Globalization which are the nice terms for complete central control of people and their wealth, the motto of transforming dictators in India is going to be: If you’re a tyrant who wants to centralize power over an industry, first frighten large businesses into your cartel protection racket by creating a common market. Then, eliminate common market” and “improving transparency to protect them.” Works every time. The final step is to prosecute non-compliance using men with guns.
The creation of a spot market and special bank for gold jewelers (as rumored above) seems like a function that doesn’t require government at all. Yet if your goal was to track, trace and database your citizens’ undeclared gold assets, it makes perfect sense.
Bloomberg makes clear that the new policies aim to encourage citizens to turn over their “idle gold” to the financial system:
The government is also keen to get the public to recycle its jewelry to reduce the nation’s reliance on imports. After a slow start to its plans to monetize the precious metal held in households and institutions, the government is looking to tweak the scheme and attract more participants, the people said, without giving details. The initiative, launched in November 2015, was aimed at returning an estimated 20,000 metric tons of idle gold to the financial system.
It’s reminiscent, albeit a softer version, of Franklin D. Roosevelt’s Executive Order 6102 “forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States” which criminalized the possession of monetary gold. Citizens were forced to turn over their gold for a set amount of government currency. We’ll have to wait and see how India “tweaks the scheme.”
Credit Suisse confirmed the latest moves in India are designed to force the gold trade onto the banking system in partnership with the central government to better track and tax the industry.
This echoes what Credit Suisse Group AG analysts Arnab Mitra and Rohit Kadam previously said of the coming changes to the Indian gold industry: “Over the next two to three years, the new tax should gradually force smaller, unregulated players to become tax compliant and take away their price advantage, increasing market share for bigger, organized businesses.
There you have it. The cashless agenda of control lay bare. There shall be no economic activity outside of State control. And government sponsored Cartels that play nice will be rewarded with more market share and those who do not are any way declared as anti national or terrorists by compliant corporate presstitute media.
It remains to be seen if an already angry Indian citizenry can be persuaded to give up their tradition of storing and gifting gold.
Deflation during demonetization or Currency Contraction and Impact on Money or Black Money or Gold
The coming DEFLATION due to the contraction of money supply in to the market will impact the value of Gold and the rupee or Dollar much differently than what most western analysts are forecasting or Indian analysts who have no clue. Though no such calculations were made in India either before demonetization or after demonetization, unfortunately, most analysts do not understand the true underlying value of gold or the Cash component in any economy whether it is U.S. Dollar, Euro or Indian Rupee, because they base their forecasts on both faulty theories and those theories applied to collected information that may yield inaccurate, flawed or imprecise results.
This is due to both of the faulty theories of monetary science and the supply-demand market forces. While some aspects of monetary science and supply and demand forces do impact the prices of goods and services (on a short-term basis), the most important factor that affected the value of goods and services in any economy since last 100 years is ENERGY or more precisely Oil as energy, and that is totally overlooked. You will never hear any economist or analyst including energy when he or she talks about the Federal Reserve, Commercial Banks, money printing or debt or associated black money. Most analysts are stuck on studying superficial monetary data that does not get to the ROOT OF THE PROBLEM.
Furthermore, the majority of folks who believe in the Austrian School of Economics also fail to incorporate ENERGY into their analysis. For some strange reason, most analysts believe the world is run by the ENERGY TOOTH FAIRY or Free Energy. Without cheap and abundant energy, monetary science and supply-demand forces are worthless.
That being said, as the debate on whether the world will experience, Inflation, hyperinflation or deflation will continue to go on and on. Let Us study why the gold needs to be centralized in India in to private banks.
Is it a repeat of Loaning/looting of this gold or depositing it in UK and USA as RBI cannot protect it?
Gold is most needed for USA and UK to get out of their debts trap and as they sold all their gold every year replacing it with IOU. And now they take Indian Gold and replace it with IOU and we the great patriots can never demand the return of the gold we gave them. Till now we do not know what happened to the gold that was sent to Bank of England close to 1000 tons for safe keeping. Now we are hoping to collect 20 000 tons from Individuals. What about the gold with the institutions?
The most important thing that was very vaguely mentioned by the government is about Institutional gold. Which institutions are holding gold in India? Definitely not RBI and for sure none of the governmental agencies. Institutional gold is only with temples and religious institutions and for many years, governments specifically political parties want to confiscate this gold and the properties of these institutes to blow them on their popular schemes at best or sell them with cronies in international markets for huge profits to generate black money outside India.
The reason for the confiscation of gold is when economic activity is contracted by withdrawing money then the effect of such contraction depends on how people stored money in alternate money sources like real estate or gold. Gold always returns to the intrinsic value of it which is the cost of production of gold. So too paper currencies that were printed out of thin air like US dollar.
To understand how the coming GREAT DEFLATION will impact gold and the U.S. Dollar, we must throw out the window of all preconceived notions about economics and money. Any individual who continues to believe in the standard orthodox economic theory, you might as well also accept that the EARTH IS FLAT as well as the center of the solar system.
Thus, when the GREAT DEFLATION arrives, the value of the U.S. Dollar or Indian Rupee has a much longer way to fall versus gold. Why? Because, the value of most of the things always reverts back to the COST OF THEIR PRODUCTION. The innate value of a $100 billion is a mere 13.4 cents…. so, its value still has room to fall 99%+.
Again… the innate value of most of the things are based upon their cost of production, not supply and demand. What’s the use of being in the business of producing goods at a loss?
Here is one last example. In 2016, total global gold mine supply was worth $103.6 billion. This figure was based on the GFMS 2017 World Gold Survey of 3,222 metric tons of mine supply, multiplied by the average spot price of $1,251. The estimated cost to produce this gold was $92.2 billion:
Here we can see that the gold market price was based on its cost of production. On the other hand, the U.S. Treasury was able to print $151.7 billion in $100 bills for the total cost of $235 million ($0.235 billion). Which means, the U.S. Treasury’s production cost was only 0.13% for the $151.7 billion of new currency (fake money) it issued last year.
People need to realize that the U.S. Dollar’s value is backed by U.S. debt, which is being propped up by burning energy. Thus, ENERGY = MONEY. The huge increase in U.S. and Global Debt means the quality of energy that runs everything is disintegrating. The more debt that is added, the lower interest rates have to go. It is a one way street.
The coming GREAT DEFLATION will destroy the value of most STOCKS, BONDS, REAL ESTATE and PAPER CURRENCIES. The reason Real Estate prices will plummet below their cost of production is due to their 20-30 year financing and their inability to function during the disintegrating energy environment. The same will be for automobiles and many other items.
Confiscation of Indian Gold again for Transparency
All very good, but if we look carefully, we see that the British-based forces that organized this current round of demonetization and cash plunder, could have easily achieved their goals without the de-monetization. If the currency can be easily printed outside as it has been done in the past, and has without any shadow of doubt is being done now, and will be done in the future too, the foreign-exchanging of USD 4 Trillion could have been done without the de-monetization. Even if they wanted to remove USD 4 Trillion from India, there were many other ways they could have done it. So, why then go for the de-monetization at all? The answer lies in understanding that both the UID’s Aadhaar Project and the recent de-monetization are a test-run.
More precisely, they are the test-runs using psychological warfare to see how the Indian citizens react to absurd, illogical, humiliating decisions pushed on them via sloganeering. As has been stated earlier, in order to loot the complete wealth out of India, a critical step is to numb the minds of the population at large. They wish to see whether the Indian citizens who have been softened and pampered with the comforts of Liberalization and Privatization will choose to keep asking for the toffees and keep accepting increasing levels of humiliation or whether they will be able pull their gaze away from the toffee, to see the picture correctly and stand for what is right, as opposed to begging for what is pleasant.
This information on how the Indian public will react to absurd, illogical orders coming ostensibly from their own Government is necessary for the foreign-planners to determine the next strike. Here we shall restrict ourselves to outlining only one dimension of this next strike confiscation of gold both from individual and institutions and transfer the same to the West specially USA and England via Israel.
According to the leading World Economic Bodies, there is about 160,000 tons of gold mined in the world over the last 200 years. Out of this, close to 120,000 tons are with the European Union, the Bank of England, and with the USA. This will then leave 40,000 tons with rest of countries. These figures represent the gold mined across the world over last 200 years.
At the current value 1 ton = 30 million USD, this gold would be valued at about 5 Trillion USD. Large though this figure seems, it is not comparable to the World’s GDP, in fact as seen above, it is only equal to the absolutely-low-end estimate for the Black Cash that may be in India. So, then what is the point in shouting Gold-Gold-Gold? In fact, if this were the case, then the Gold value should have been much higher than it is today, about a 100 times higher.
To answer this question again, we look at India. From the internationally-available figures, of the 650 tons of gold produced annually, 80 % flows into Asian Markets. Of this 80%, 70% flows into India. This has been the case since Independence. This will put an estimate of 15,000 tons as the minimum amount of Gold imported into India post-Independence, worth about 500 billion USD. No big deal here. At the outset this is what our current government is telling that they want to return at least 20000 tons of gold to financial system and regulate it to reduce dependence on imported gold so that instead of Indians China can import all gold and can destroy us. But there is something else that we should look at. That is the question of the amount of Gold that existed in India pre-Independence. This figure will turn out to have meaning and strategic importance. Let us estimate below.
Amount of Gold inside India prior to Independence
Let us look at just one simple example. When the Kingdom of Amravati, now in current State of Andhra Pradesh fell to the British, it was then looted. At that time in that Capital of that small tiny Kingdom, which covered the current 4 central districts of Andhra Pradesh, all houses and Palaces were gold plated. The British cavalry used 7000 horses to carry away the loot from the City. But we never read about this in our history books. We learn about this from the records maintained in Telugu, as well as by the French sources. What the British have done is to cut-paste this same story onto Ghazni — that he looted Somnath, and carried away its gold on 7000 horses. Probably as redemption, the current Chief Minister of Andhra Pradesh moved his capital to the same location where once this magnificent capital stood and was looted.
Another simple Example: when the grandchildren of a mere clerk in the East India Company in today’s England were running short of pocket money, they merely opened one of the thousands of warehouses containing the loot of the East India Company, and took out just six small items. These few items were put on auction in the famous London Christies and fetched 5 million pounds. This, we may add, was splashed across every major Indian news media with great pomp. So, what must have been the total size of the warehouse and what figure would we arrive at if we added the figures for the unknown thousands of such warehouses that hold the 100-yr loot by EIC sailors, clerks, officers, Lords, Governor Generals who worked in India. That will give a base-point of how much money that was looted from India. Yet, it will not tell you how much money was there in India. And, when they did not find anything in India, those few unlucky individuals of the EIC picked up every or any articraft from ancient temples, main deity idols, manuscript, mathematical texts, astronomical texts, medical texts, metallurgy texts whatever was available, in whichever language it was available and was taken out. Fortunately, they were able to make millions of pounds, by auctioning these texts again in the Christie’s Auction House and other Auction houses set up in London. This glorious tradition was continued by many in modern and independent India in the name of art dealers, art collectors or art lovers. Most of these individuals are Indians but have dual citizenship either in America or Britain or any other English speaking countries.
Most of these auctioned items were and are purchased and preserved by the Germans and French, who at the time felt that the British were destroying the cultural scientific heritage and the beacon of the civilizational progress that was India. Post WW-2, some of these articrafts were taken by the Russians who preserved them as well. No spiritual or religious leader in India has any clue of the extent of what was lost from their spiritual and religious organizations. By the way, one such object which was carefully lifted from the Kashmiri Temples that was purchased by the Germans from an auction house in 2000 and preserved in Germany was given (given back or gifted?) to our Current Prime Minister, when he visited Germany.
Literally every Western Capital has in their historical records noted the input from all British East India Company logs: From the years 1847-1947, every single day a whopping 200 tons of gold was removed from India by the British. This number works out to a fantastic 6 million tons of Gold, taken out of India by the EIC in the 100 year interval. A fraction of this was used for financing every war, the destruction of China, as well as the destruction of every aspect of India. Few years back we found a ship wreck near Mumbai in our national waters with full of gold around 200 tons. When Government of India wanted to confiscate that the British objected and said it belonged to them as the ship belonged to East India Companies. Without any questions we obediently returned the gold. And when we asked about Kohinoor and when British said it was not negotiable, we accepted gleefully.
Just as with the recent de-monetization, the ploy of the Western Economic apparatus pushed upon the Indians is “show publicly 0.25 Trillion USD, and hide 3.75 Trillion USD from public view”, the case with Gold is show 160,000 tons or at worst show 20000 tons as now we are saying in press reports that must be brought in to stream line of common market and hide the larger figure of 6-million tons. But nevertheless, note again that according to the records, they are supposed to have looted much less than 30% of the existing wealth from the looting of temples and confiscating from the Kingdoms and their treasuries. Further, this is only the gold; this is apart from other Jewelry (precious stones, diamonds etc). This 6 million tons of gold is worth about 180 Trillion USD. By way of comparison, the Institute of International Finance figures the World debt at 217 Trillion USD, more than three times the World’s GDP. How did we mine these 6 million tons before the British came? Did we seek any foreign help as we are seeking in the name of ‘Make in India’ today?
So still 70% of gold is left with India, so by this estimate, we have about 14 million Tons of Gold still left in India…counting only gold……not counting precious jems etc…… No wonder India is called the “swarna garbha and Ratna Garbha”. This gold is still with the people and with the temples. Then instead of 1 pound today being set at 70 Rupees, if India were to back its rupee with the gold that we have, the inverse case would be the reality viz: 1 Rupee = 70 British Pounds. Simply put, the amount of gold still left in India is valued at around two times the World’s total Debt. Who wouldn’t want to ROB IT?? So the slogan came “DigITall India”
It is here the scariest part of streamlining institutional gold comes. Do we, the Indians in independent India worse than Foreign Invaders and British East India Companies, take this gold from individuals and temples and ship them out to our erstwhile masters for few percentage commissions? One single temple in Kerala of Sri Padmanabha Swamy is reported to have in the underground vaults more than $ 1 Trillion Dollars worth of gold!
In 2010, the Minister for the Mines Dasari Narayana Rao gave a written reply to the Parliament that there are 8.8 million oz of minable gold in one single block D-51/D-52?? of Anantapur District. At roughly 30 oz = 1 kg, this is 0.3 million Kilograms = 300 tons. What of the hundreds of other such blocks? The Minister held his head high and stated with pride that since India does not have the technology to mine this gold, we give the contract to foreign countries.
All the economic indicators and the leading economists and financial experts are saying that the Anglo-American world has blown-up its gold reserves. That is why neither Bank of England nor Federal Reserve wants any audit; because it will prove that there is no gold there. Many economists actually suspect that the gold mining figures themselves might have been cooked up and with the value of the gold-prices shooting up, both Fed and Bank of England, sold all their gold reserves to the gold-hungry world, primarily India and China. It is precisely this process that kept their currencies at a stable value.
Though initially there were no physical gold transfers executed, recently many countries have started asking for the physical gold into their territories. The Chinese and Germans had requested the Federal Reserve to repatriate the physical gold to their countries. Both were duped and the gold was replaced with other metals.
Many of these countries which believe in the geopolitical objective of a multi-polar world declared that they would de-link their currency with the dollar and link it with the gold –starting with Iran, Iraq, Libya, Syria, China and now Russia. In the last two decades of wars in the world, the question of currency-linkage has been the critical causative trigger. All the wars occurred exactly when the countries said that they are going to pull out of the dollar and back their currency with Gold. Whether it was the invasion of Iraq or Libya or Syria, or the current saber-rattling going on with Russia and with China, all these were and are exactly because these countries had the courage to state that they are pulling out of the dollar and moving to a gold-standard. In addition to direct confrontation, the Anglo-American world resorted to a variety of financial frauds to the rigging of stocks, to the interest-rate-manipulation called Libor Scandal, in which the Europeans held the Bank of England guilty and were about to press large fines whereupon Britain exited from the European Union.
The main cause of the financial ruin in the interval 2008-2012 was this currency manipulation, without any gold left to back it up. If the countries are not of European origin, they are all subjected to what we can now call as gold-pipeline wars in which Iraq and Libya are knocked out and promptly their gold-reserves were confiscated. And the world is witnessing a similar brink-of-war situation with the other four powers, which were accused by the Anglo-Americans of cornering most of the Gold in the last decade: namely China, Syria, Iran, Russia and North Korea.
GOLD AS REASON OF REGIEME CHANGES
One of the biggest reasons that the U.S. is so hell bent on framing Russia as a criminal on the world stage is not necessarily because of their intervening in Washington’s agenda of bring about chaos to the Middle East, but instead because of its potential of destroying America’s hold on the world’s singular reservecurrency.
And there are two ways in which they can achieve this. First it is by overtaking OPEC and putting an end to the long-standing Petrodollar system. And second would be through the creation of a gold backed Ruble, which would instantly turn the Russian currency into the most secure form of money on the planet.
Now many Western analysts have been pushing the narrative that a return to a gold backed monetary system would be impossible to achieve, since their faulty premise is based on the total amount of physical gold available to backstop the total amount of worldwide currency. Of course the real reasons they use this propaganda is because a gold backed monetary system would be a hindrance to a government and central bank’s ability to print and borrow capriciously and do not pay , without worrying of any financial consequence.
With this in mind, and with the advent of Wiki leaks disseminating thousands of emails found on former Secretary of State Hillary Clinton’s servers, we discover that the unlawful attack on the nation of Libya a few years back, and the subsequent murder of Libyan leader Muammar Gaddafi, was enacted entirely because he was in the process of creating a gold backed currency that would not only help grow African nations economically, but also help them to get out from Western colonialism and the long-standing dominion the U.S. and Europe had over the Dark Continent.
One of the 3,000 Hillary Clinton emails released by the State Department on New Year’s Eve (where real news is sent to die quietly) has revealed evidence that NATO’s plot to overthrow Gaddafi was fueled by first their desire to quash the gold-backed African currency, and second the Libyan oil reserves.
The email in question was sent to Secretary of State Hillary Clinton by her unofficial adviser Sydney Blumenthal titled “France’s client and Qaddafi’s gold”.
From the Foreign Policy Journal:
The email identifies French President Nicholas Sarkozy as leading the attack on Libya with five specific purposes in mind: to obtain Libyan oil, ensure French influence in the region, increase Sarkozy’s reputation domestically, assert French military power, and to prevent Gaddafi’s influence in what is considered “Francophone Africa.”
Most astounding is the lengthy section delineating the huge threat that Gaddafi’s gold and silver reserves, estimated at “143 tons of gold, and a similar amount in silver,” posed to the French franc (CFA) circulating as a prime African currency. –
As realized in the Syrian adventure the outcome of the war is uncertain. However, the serious financial crisis the US and the UK are facing is certain. They need gold urgently to save their financial system and economies and the very integrity of their financial institutions like Bank of England and the Federal Reserve. Thus, they need the gold for two reasons: to fight the wars and to maintain their own institutions and economic health.
We are looking at a staggering figure of 20-30 Trillion dollars’ worth of Gold, or equivalent amount of real currency to buy such Gold. So then, the obvious question is:- “Apart from the other six nations we have to fight, Who has the currency or who has the Gold?” The answer is obvious: Only India. So therefore as a first shot, 4-Trillion dollars were taken out and as the next logical step, they will come behind the gold of the Individuals that is stored in India, as the East India Companies have done over the past 100 years. If they can wage a war for 143 Tons of Gold from Libya, then what about India? They do not need to wage a war. They simply need to order their proxy rulers in the In Dependent India to comply. And we do the rest of the work of convincing our own citizens that whatever we are doing is the most patriotic act and the rest of the work is done by the compliant media.
The RBI officials openly declared that they cannot reveal any details of Demonetization as there is a threat to their lives even when asked under RTI.
It is time to look at the question of the “threat to life” argument cited by the RBI when questions were posed to it under the RTI act. While this did find mention in a few newspapers, the Indian public at large is guilty of not following up this matter with the appropriate questions. There is a need for the gullible members of the Indian public to realize the seriousness of the “threat to life” of the RBI core team. There is also a need for the Bank Staff to push for increased security as well to take necessary steps to increase awareness among themselves and the Indian public,
The army’s duty may perhaps be to defend borders and to protect the nation from external threat. But, what they should be defending is not an imaginary line drawn by the British, but rather a geographical entity in given time and space. This entity is not a barren piece of earth–it is full of people and resources. As they do when internal calamities such as floods, earthquakes, riots strike — so too, it is their paramount duty that when people in high power and responsibility express a “threat to their lives” while duly discharging their responsibilities under the constitution, the army should work in tandem with the Internal Intelligence agencies and neutralize the threat originating and manifesting either internally or externally.
The fact that this has not been reflected in the current situation indicates the lack of understanding of external threat to the republic, and how this threat is manifesting within the borders of India.
Sadly, if we contrast this with the Indian context, though several members of our country’s highest offices, starting from our own Prime Minister to RBI’s chief employees, expressing the same threats on their lives, the country did not make any assurance to protect them. In the absence of such assurances to protect them, out of fear for their own lives, they have chosen the path of their own survival and implemented policies that were far more destructive for India rather than those implemented by the EICs themselves. Of course, here we can see the very clear influence of the Western Education on the Indian mind, especially in the interpretation of Darwinian theories…survival of the fittest…not survival of the strongest. In this process, where the fittest try to survive, as a result of ensuring survival of the People in Authority by the People in Authority and by the Political Power, the most ancient, the strongest, the most vibrant, Universal Scion i.e. India is being slowly bled to death.
Though there are many in India who are seeing the inevitable death, part following part, it is time for the people of India to wake up and avert this death and bring India back to life and vibrancy both as a leader of the Non-Aligned-Movement and as the Universal Beacon of Light to uplift the suffering of humanity.
The Role of Corporate Presstitute Media and Whorespondents
If in the future, some Indian ruler had the courage to declare that the Indian currency would henceforth be backed by Gold, Indians may please rest assured that India would have to be declared a terrorist country. They would then have to fight with India. Here is the problem:- Fighting with 1.25 billion people is not the same as fighting with Iraq, Libya or with Syria. So, thus therefore a three-pronged strategy has been adopted: First, de-grade the Indian Army to a fourth-class, un-professional and highly-politicized Army. This is precisely following the theory of the General Wellesley Clarke Under which goes the title of the Strategic Defense Initiative. This will ensure that at any future point of time, if we have to fight with India, it will be an impotent India. Second, move to take the Gold physically out of India so that, we the Indians, can never at any future point of time, use it to back up our currency. One way to take the Gold out is to generate much more black money inside India and take that money out of India….this money being convertible to the Indian Gold. This is where our Government knowingly or unknowingly is falling prey to Western Economic theories of Thuggery and Robbery by demonetizing and re-introducing the much higher currency with a much higher denomination, and only just one reason why the Public are not being shown any consistent steps to handle the question of Indian currency being printed abroad.
Thirdly, push the Indian elite away from understanding and from original thought. And if we see how the Indian research institutes are being forced to lower standards, scientists getting badly de-motivated in research, reduced in quality, funding, strength, finally towards closure and shutting down, we can see India racing on the lines of destruction. In fact, they never really needed to fight with India, because India was never a republic. It was never that “India is Independent”—rather it has always been “India is in-dependence”. To control the slaves who have thus been deprived of independent enquiry and thought, the foreign masters need only slogans. India is not a democracy, it is a sloganocracy, and the slogans trumpeted by the press-titutes of the private corporate media.
Several American Presidents have publicly declared that the Corporate Media is a Fake Media. The White House has itself declared that all Corporate Media establishments, such as CNN, ABC, LA-Times, NY-Times which are the Fake Media have no access to the White House. But, we Indians lap up news from this same Corporate Media as if it were the Gospel of Truth.
Only one simple example of this fake media’s method of confusing the public of both India and Partitioned India – aka Pakistan –, was on the surgical strikes the army was supposed to have conducted with regard to the Kashmir question. CNN-India ran a program in their Prime-Time and showed that they were taking a call from a Pakistani General from the Neelum Valley who confirmed the strikes, the Indian Public were shown that India had in-fact executed the Surgical Strikes, and then CNN-India went on to push the slogan that whoever opposed the Surgical Strikes are not patriotic Indians and were anti-nationals
But exactly at the same time, CNN-Pakistan aired a program which was shown to the Pakistanis in which they had taken journalists to the same Neelum valley and convinced the People of Pakistan that India has NOT conducted any surgical Strikes at all. And the experienced Pakistani Generals mused and bewildered that if the arc of operational radius of the Surgical Strikes as projected by India is of radius 260 Km, this would be logistically tantamount not to a “Surgical Strike” but to a “Major Aerial Warfare”. But yet, following CNN-India lead, every other private funded corporate media carried on the same line for one week, insisting that anyone who opposes their message is anti-national.
We are not questioning the capability of the Indian Air-force in conducting such operations, nor are we questioning that a firm hand is necessary in tackling the menace of Terrorism. But what we are questioning is whether the Indian public should accept at all what the Corporate Media is telling them. And as to what really happened there, the nation has the right to know….
- Fore told or Untold Effect of Demonetization – Destruction of Agriculture and FDI in retail – Food Fascism
The plight of farmers in India has been well documented. A combination of debt, economic liberalization, globalized Piratization, oops… Privatization and subsidized imports, rising input costs and a shift to cash crops (including GM cotton and other varieties) has caused massive financial distress. Over 300,000 (perhaps closer to 400,000) have taken their lives over the last 20 years. From the effects of the Green Revolution (degraded soils, falling water tables, drought, etc.) to the lack of minimum support prices and income guarantees, it is becoming increasingly non-viable for many smallholder farmers to continue. The effects of last year’s demonetization policy merely started to show its effect on the farmers of India to compound the tragic situation of them.
Indian smallholder/peasant farmers are under attack on all fronts. Multinational Corporations Operated Destruction of India is seeking to capitalize the food and agriculture sector by supplanting the current system with one suited towards their needs (the maximization of profit), ably assisted by the World Bank and its various strategies and directives. Moreover, proponents of neoliberalism are pushing to further commercialize the countryside, which will involve shifting hundreds of millions from vibrant self sufficient villages to urban squalor cities.
The new Regional Comprehensive Economic Partnership (RCEP) could accelerate this process. A trade deal now being negotiated by 16 countries across Asia-Pacific, the RCEP would cover half the world’s population, including 420 million small family farms that produce 80% of the region’s food.
GRAIN is an international non-profit organization and has just released a short report that outlines how RCEP is expected to create powerful new rights and lucrative business opportunities for food and agriculture corporations under the guise of boosting trade and investment along with destroying food self sufficiency of ‘Jai Kisan’ of India.
Land acquisition and seed saving
What RCEP will do, according to GRAIN, is allow foreign corporations to buy land. This would provide corporations with far more control than just use rights and drive up land prices and speculation, pushing small farmers out. If RCEP is adopted, it could intensify the great land grab that has been taking place in India at much faster and cheaper scale than East India Company rule.
And our Prime Minister announced in Israel that we are allowing 100% FDI in real estate. What is surprising and rather forgotten by the Indian public is that the same Prime Minister before coming to power, in a public speech had said that FDI means Foreign Destruction of India and after becoming the Prime Minister turned 180 degrees and said FDI means First Development of India, and interference of foreigners are very much necessary in India and hence FDI is also very much necessary to develop India. as if India was never developed. So too with the GST. While in the opposition party – GST is not supposed to be implemented. While in the ruling party – implemented the GST! Isn’t this an example of hypocrisy?
Now, coming back to the issue of farmer’s seed-saving, GRAIN notes that Monsanto and Bayer want to end this practice and force farmers to buy their proprietary seeds each season. The global seed industry is highly concentrated today and recent (proposed) mergers will consolidate power and influence over both governments and farmers. For example, China is currently in the process of buying Syngenta, one of the world’s top three seed firms. According to Grain, this means that China will have a new vested interest in seeing seed laws strengthened via tighter intellectual property rights under RCEP and make India as their back yard of milking wealth to save their falling unsustainable debt ridden credit based failed economy.
We have already seen the devastating effects on Indian farmers due to Monsanto’s ‘royalties’ (on ‘trait values’) on GM cotton seeds in India. Monsanto effectively wrote and broke laws to enter India with compliant politicians and business partners. Under RCEP, things could get much worse. According to GRAIN, if states are allowed patents on inventions ‘derived from plants’ (whether hybrid or genetically modified seeds), we could see higher seed prices, a further loss of biodiversity, even greater corporate control and a possible lowering of standards (or a complete bypassing of them as with GM mustard) for high-risk products such as GMOs.
India’s dairy sector
The Indian governments for past 5 decades have encouraged the co-operative model in the dairy sector with active policy protection. However, the dairy trade could be opened up to unfair competition from subsidized imports under RCEP. We have already seen the effects of this in the edible oils sector, for instance.
According to RS Sodhi, managing director of the country’s largest milk cooperative, Gujarat Co-operative Milk Marketing Federation, the type of deals being pushed under the banner of ‘free trade’ will rob the vibrant domestic dairy industry and the millions of farmers who are connected to it from access to a growing market in India.
India’s dairy sector is mostly self-sufficient and employs about 100 million people, the majority of whom are women. The sector is a lifeline for small and marginal farmers, landless poor and a significant source of income for millions of families. Up until now they have been the backbone of India’s dairy sector.
New Zealand’s dairy giant Fonterra (the world’s biggest dairy exporter) is looking at RCEP as a way in to India’s massive dairy market. GRAIN notes that the company has openly stated that RCEP would give it important leverage to open up India’s protected market. As a result, many people fear that Indian dairy farmers will either have to work for Fonterra or go out of business.
At the same time, some RCEP members not only heavily subsidize their farmers, but they also have food safety standards that are incompatible with the small-scale food production and processing systems that dominate in other RCEP countries. There is sufficient room for concern here: During the ‘mustard crisis’ in 1998, ‘pseudo-safety’ laws were used to facilitate the entry of foreign soy oil: many village-level processors were thereby forced out of business.
GRAIN argues that RCEP could accelerate the growth of mega food-park investments that target exports to high-value markets, as is already happening in India. These projects involve high tech farm-to-fork supply chains that exclude and may even displace small producers and household food processing businesses, which are the mainstay of rural and peri-urban communities across Asia. This would dovetail with existing trends that are facilitating the growth of corporate-controlled supply chains, whereby farmers can easily become enslaved or small farmers simply get by-passed by powerful corporations demanding industrial-scale production needs and by confiscating gold it prevents them to use their alternative store of value to be used for their agriculture purposes. This coupled with the Rs 1000 Universal basic income will destroy the incentive of small farmer to be in farming business and make him to go to urban centers to live like a slave of government system provided handouts.
Expected increase in the use of Chemical Fertilizer and pesticides
Fertilizer and pesticide sales are expected to rise sharply in Asia-Pacific in the next few years. Agrochemical use is heaviest in China and growing rapidly in India. GRAIN notes that China’s acquisition of Syngenta, the world’s top agrochemical company with more than 20% of the global pesticide market, puts the country in a particularly sensitive position within RCEP.
According to GRAIN, in January 2017, China announced that it will scrap export tariffs on nitrogen and phosphorus fertilizer in order to boost its market share abroad. RCEP trade ministers have promised to deliver a deal that immediately cuts tariffs to zero on 65% of trade in goods, followed by a second phase to cut the rest. GRAIN states that farm chemicals are bound to be part of this, resulting in increased residues in food and water, more greenhouse gas emissions, rising rates of illness and further depletion of soil fertility.
Big retail will wipe out local markets
RCEP also demands the liberalization of the retail sector and is attempting to facilitate the entry of foreign agro processing and retail giants, which could threaten the livelihoods of small retailers and street vendors. The entry of retail giants would be bad for farmers because they may eventually monopolize the whole food chain from procurement to distribution. In effect, farmers will be at the mercy of such large companies as they will have the power to set prices and also will not be interested to buy small quantities from small producers.
RCEP is designed to usher in a wave of corporate consolidation and help facilitate take-over of Asia’s food and agriculture sector from seed to plate. Corporate concentration will deprive hundreds of millions of their livelihoods. Moreover, the type of farming and food production practices that these corporations will bring entails massive social, health and environmental costs, which ordinary people and the state sector ultimately bear.
Neoliberal ideologues may say exposing farmers and those working in the food sector to such agreements can only be good for ‘growth’ and is a perquisite for transforming countries like India. But this is a bogus argument that seeks to hijack the development agenda by seeking to define it solely in terms of GDP growth – a narrow, outdated and wholly misleading concept. RCEP is a recipe for undermining bio diverse food production, food sovereignty and food security for the mass of the population. It will also lead to massive job losses in a country like India, which has no capacity for absorbing such losses into its workforce.
Moreover, RCEP belongs to a model of development that is the wholly unsustainable due to the impact on the environment of capitalism’s ‘infinite growth’ paradigm. Given Gandhi’s views on the environment, if any country should recognize this, it is India. If any of Indian Prime Ministers should follow Gandhian Model it should be the current one who already spent billions of rupees on one of the most important ideals of Gandhi – Clean India. Writing even from a Marxist perspective, prominent economist Prabhat Patnaik appreciates the need to align any notion of development with the requirement to live within the limits of the environment, which Gandhi stressed:
“This really is a spiritual/cultural question, about what it means to live a good life… Marxism shouldn’t be reduced to productionism. The goal of socialism has always been human freedom, which is about much more than material wealth… Gandhi talked about the ethical demands of nature… we do have to live within the limits of nature.”
Patnaik proposes an alternative to the current neoliberal agenda by saying we must delink ourselves from capitalist globalization via capital controls, managing foreign trade and expanding the domestic market through the protection and encouragement of petty production, including peasant agriculture; through larger welfare expenditure by the state; and through a more egalitarian distribution of wealth and income.
While calling for new and innovative solutions to the problems we face under capitalism, aspects of his thinking dovetail with many in the environmental/food sovereignty movement who advocate a need for localization not globalization, self-sufficiency not corporate dependency.
There is a need to encourage localized food economies that are shielded from the effects of rigged trade and international markets. Rather than have transnational agribusiness corporations determining global and regional policies and private capital throttling democracy, we require societies run for the benefit of the mass of the population and a system of healthy food and sustainable agriculture that is run for human need.
We need to look at Mexico and what ‘free trade’ has done to that country’s food and agriculture sector: destroyed health, fueled unemployment, transformed a rural population into a problematic group of migrants who now serve as a reserve army of labor that conveniently depresses the incomes of those in work. The writing is on the wall for India.
RCEP would represent a further shift away from real, practical solutions to India’s agrarian crisis based on sustainable agriculture and which place the small farmer at the center of the development paradigm.
Introduction of Universal Basic Income –Liberalized Saffron Missionary Communism
This is in this context we announced the UBI Universal Basic Income of moving everyone on government hand out so they get out of their land and agriculture and move in to urbanization. Even if they were given Rs 1000 per person as 80% of this is spent on food only. In India this money again will go to the giant international corporations that will be operating and that would promote most unsustainable and devastating health and food habits. India is going to be converted in to a giant gulag or concentration camp where the citizens are kept at subsistence level usable by geo political players in their wars against themselves as they used India and Indians and Indian resources during the Opium Annapurna of India in the name of patriotism devoid of cultural sensitivity.
The only way out of all these is restore back India on the ideals of Mahatma Gandhi, the true Swaraj not InDependence we got from British as a hand out, and strive for the self reliance in food and defense using the creative human resources and the natural resources that we have. Most importantly, truly confiscating the black money inside India and using it for the benefits of Indians, and following the path of NAM becoming a true leader and solving all problems once for all that India faces and make the world a better place for the humanity to progress on the true path of prosperity and spiritual development of diversity.