- Doug Wakefield
As India Destroys Cash, it Crushes People
Have you have been following Prime Minister Modi's crash course in destroying India's economy? We all need to understand this story and how it fits in the continued theme of going cashless around the globe.
The story started on the day of the US elections on November 8th and began with the removal of the 500 (˜ $7.50) and 1,000 ( ˜ $15.00) bills in India. When one considers India's population is 1.35 billion and 50% have no electricity or running water, how could anyone think that this move toward using ATMs and online banking would move things forward overnight, and even more, have a positive outcome across the nation?
Common sense disappeared even faster than their cash in an economy where 97% of all transactions daily use cash. To learn more, let me encourage you to start with Jayant Bhandari's first article, Gold Prices Skyrocket in Indian After Currency Ban (11/9/16), and one his recent interviews on December 30, 2016. As of January 1st, you could go to jail for four years merely for not turning in your old bills! And this is progress?
Take a minute. Watch this 2 minute video of how the people in rural areas have been forced to go to a barter system overnight in this move toward cashless.
If you are an American or European and don't think this has anything to do without our "sophisticated world", then you might want to consider these headlines from 2016.
Why Lawrence Summers Wants To Kill the $100 Bill, MarketWatch, Feb 16 '16
ECB Ends Production and Issuance of € 500 Banknote, European Central Bank, May 4, '16
Major change is the theme for 2017. Keep thinking and talking with others. Be flexible.