Sunday, November 27, 2016

India's Rural Economy Crushed in Rupee Imbroglio

[PADA: Why didn't leaders know that the rural economy is not set up for a "cashless" credit card society, since its widely known most of these rural folks do not even have a bank account? As usual, India tries to catch up to Western society, and have all the people there using credit cards and smart phone transactions, but way too quickly, and without any clear plan to do that. 

Of course this same program would have been a disaster even in the USA, too much of our own economy depends on cash. If eighty percent of dollars were suddenly taken out of circulation, the USA would grind to a halt in no time. This is pretty much sort of what happened in ISKCON, we are going to make a bunch of acharyas, but we are not ready to do that yet. And as usual, the innocent peons suffer the most under these premature crash programs. ys pd] 


The plan Modi announced on Nov. 8 has taken 86 percent of India’s currency out of circulation and given people until Dec. 30 to exchange the defunct notes for fresh ones. The decision, aimed at weeding out unaccounted wealth and curbing tax evasion, rattled the world’s second-most populous nation, where nearly all consumer payments involve cash. The change has caused problems for individuals trying to pay for everything from weddings to funerals because ATMs are running out of smaller bills, and caused headaches for the Reserve Bank of India, which has seen a surge in banking liquidity pose an inflation risk.

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