Currency Crisis: There’s More to It Than Meets the Eye
The ongoing currency crisis imposed by the govt of India has crippled the country and the aam admi is practically reeling under the crisis to make their ends meet.
While the govt has scrapped the Rs. 500 and Rs. 1000 currency notes on the 8th of November, 2016, to target the black money hoarders in India, many reports in the past 48 hours suggest the BJP-led govt may have forced the country into the crisis to support some of its hidden agenda.
We are putting together some information for you in this regards.
According to an insightful blog post which appeared on Janta Ka Reporter, the BJP-govt has done this to promote crony capitalism and ensure liquidity of the banks so they can serve the interests of the bank loans defaults (read big industrialists).
Here’s an excerpt from the post written by Farhan Rahman.
And..What if I told you that this demonetization is nothing but a measure to infuse money in those ailing banks so as to shore up their lending capacities?
While you may or may not buy into the argument put forth in the blog post above, it’s hard to deny the fact the ongoing currency crisis is unlikely to affect the real hoarders of black money – the ones who have hidden black money in crores else where beyond the reach of this drive.
GST was good economics; the demonetization is not. Its economics is complex & the collateral damage is likely to far outstrip the benefits.
— Kaushik Basu (@kaushikcbasu) November 11, 2016
No matter where you live in India, you can witness the chaos this crisis has unleashed on the nation right now. There are reports of death in Kerala and Mumbai as well as appeared on Indian Express and Huffington Post respectively.
The ATMs are unable to dispense enough cash because of logistics challenges; people can be seen standing in line for hours and then returning empty handing only to try their next time.
Even there are reports that daily-wage laborers skipping work just to withdraw money to meet their expenses.
Today our mason missed his work and cld not earn Rs.500 . He is standing in a queue to exchange notes. Calculate the total impact on GDP!
— Biswajit Mohanty (@biswajitmohanty) November 12, 2016
The Crisis May Continue Much Longer
According to a report in Hindustan Times, the ongoing currency crisis may continue much longer as the current ATMs are not technologically equipped to dispense the newly minted 2000-rupee notes.
There are 2.2 lakh ATMs across the country, which means if 10,000 engineers are pressed into service, they will take at least 10 days to complete the job. Simply put, the long queues and chaos at ATMs are not going to go away soon, the report warns.
So politically speaking, what appeared to be a masterstroke by the BJP-led government is now turning out to be a national disaster.
So, wasn’t government aware of the potential crisis before making this move?
In fact, the BJP-government was well aware of the potential hassles the poor citizens especially in rural areas would face. In 2014, when the BJP was in opposition, the party vehemently opposed to the very idea of de-monitization citing several reasons.
Well, as per a preference by Delhi Chief Minister, Arvind Kejriwal, there’s more to this move than meets the eye.
In this 22-minute long press conference, Arvind Kejriwal finds a deep conspiracy. He believes this is a deliberate move by the BJP-led government to help the real black money holders, i.e. industrialists who have crores of money stashed away in foreign banks.
Based on the reports from news channels, he has accursed that many people within the BJP circle were probably informed about this move before the formal announcement on the 8th of November, 2016.
As a result of which they made proper arrangement of the black money just in time.
While his accusation may or may be valid, a tweet by the Sanjeev Kamboj, co-convener BJP Law & Legal Affairs Department Punjab, has sparked widespread controversy. Kamboj has shared the images of Rs. 2000 currency notes in his tweet which appeared on 6th of November, 2016, two days before the government announced scrapping of the old notes.
— Sanjeev Kamboj (@kambojOffice) November 6, 2016
Over 5 lakh workers in tea and jute industries have not been paid their daily and weekly wages after demonetisation @IndianExpress
— Aniruddha Ghosal (@aniruddhg1) November 12, 2016
So, what do you make of this de-monetization move or currency crisis? Is it a scandal of some sort as many people believe or a master stroke that will make a major impact in the black money economy?