India politics thread

Modi saying Real estate is going to be targeted next and that this is just the beginning :drool:
 
prateik said:
It's illegal tender. If someone was trading it, its a crime.
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No trading, the article mentions the police did not even know where he was headed. It's not a crime being in possession of the money. He can easily deposit it in a bank and pay the tax penalty if required. This just causes more panic and more crowds at banks thinking there's a chance they will be harassed by the police if they don't act fast.
 
Varun said:
Modi saying Real estate is going to be targeted next and that this is just the beginning :drool:
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He has hinted on more crackdown on black money next year.

Govt has told banks to increase the daily amount of exchange to 4500 and daily withdrawal from ATM to 2500. Per day withdrawal limit of 10k has been removed as well! The last one is good for those businesses who want to withdraw in big chunk daily for payments that can't be done by card always.

On real estate, 2nd half of 2017 or 2018 will be best period to buy house. Prices are going to come down. Also with the new real estate act, consumer gets advantage of being able to cancel the booking altogether if builder doesn't deliver house by promised date and will get principal amount and interest on amount from builder. If a consumer doesn't want to cancel, still builder will be liable to pay interest for the delay period. That combined with black money crackdown should help bringing prices down. Builders currently hold a big amount as black money and are playing waiting game even when the buying enthusiasm has gone down with many houses in newly built societies/complexes vacant in big cities. Till now they didn't bring price down by much. Now they are likely to if they are impacted by black money crackdown.

I personally have never seen real estate as a worthy investment anyway. Have been arguing with my family for 3-4 years now as they keep pushing me to buy house and I resisted. Now they are seeing the point. An asset, yes but for a salaried middle class person, it is not worthy to keep playing the game of investing/buying/selling perennially. Either you need to study the upcoming areas in detail, and invest at least 2-3 years beforehand to gain big which helps you to buy house of your dream through the profit, or just strike gold. At max once or twice it can be done, but can't lock big amounts like that with the risk involved. I know many in IT, especially the senior level managers do but it is too big money to risk, especially if/when bubble bursts. Funds and stocks, especially the trusted one always help better in long term than property investment.
 
Planning to buy a house, been waiting to save enough down payment, hopefully will be able to buy it in 2018.
 
At least people who read April articles in November shouldn't claim so...
 
I've got no money for lunch tomorrow unless someone accepts the 2k notes:lol:
 
So basically it is something that had been well talked about in the business circles,gave sufficient time to use the money in better ways.
 
Akash said:
I've got no money for lunch tomorrow unless someone accepts the 2k notes:lol:
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The canteen guy I know was taking the 2000 Rs note and gave a slip saying 1950 balance.
Next day I eat again and he would probably put 1900 balance

Looks like that is the only way as of now till enough 500s and 100s go into circulation. The lines before ATM, bank and PO seem never ending.
 
DM07 said:
9 lakh is a really small amount to arrest someone over.
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9 lakh guys are easy to arrest :D

Anyways it is a high value by police standards. Recently a sarpanch wanted his 2500 bribe in 100s. Got arrested.
 
Akash said:
I've got no money for lunch tomorrow unless someone accepts the 2k notes:lol:
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The 2k note is pretty much useless for now. No one is ready to give change for it.
Might be a problem in the future too. The 500 note itself was a problem at times trying to find change.
 
On secrecy, it is not the idea but the plan to go ahead with it which needed to be kept secret. Anil Bokil from Pune and his NGO were one who have been putting forward this idea before to other political party but didn't see implementation with others. He is the real brain behind it.
Even with rumours, most people surely thought that something like that won't happen in real or if it does, there will be enough time provided. Bokil himself says he too was surprised with sudden implementation.

His interview:

http://firstpost.com/business/rs-50...thans-anil-bokil-tells-firstpost-3099250.html

If anything and this is apparent otherwise too, there are many intelligent people who can come up with good ideas. If we can be mavericks in jugaad we can use it in good way. All that is needed is a govt and system which will listen to it and implement the worthy ideas.
 
Any idea why they flooded the market with new 2000s and not new 500s. I mean they knew that they were going to suddenly announce things and banks will be taken by surprise. So I thought it would have made sense to have more notes in lower denominations than the highest ones lessening the headaches of people to ask for change.
 
RedDevil@84 said:
Any idea why they flooded the market with new 2000s and not new 500s. I mean they knew that they were going to suddenly announce things and banks will be taken by surprise. So I thought it would have made sense to have more notes in lower denominations than the highest ones lessening the headaches of people to ask for change.
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Maybe easier for them to make more money in less amount of notes? Atleast for the time being, so that there is not much shortage of money. Just my vague guess

Although banks in my area still running out of money. People waiting since morning only to find out money's over.
 
OB said:
Maybe easier for them to make more money in less amount of notes? Atleast for the time being, so that there is not much shortage of money. Just my vague guess

Although banks in my area still running out of money. People waiting since morning only to find out money's over.
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I think the govt grossly under-estimated the impact or the guys implementing this massively screwed up. on their responsibilities.
 
newgiz said:
So again I ask. How was it demonetization. Withdrawal doesn't equate to demonetization. It was free exchange then, not demonetization and no restrictions. A huge difference.
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Which is what makes it more interesting. 85% of cash (in terms of value) in circulation has been disrupted here, the 2013 proposal was much less drastic.
So if those objections were even a little legitimate for that limited operation then, why are they not legit for a much more widespread change now.
 
berbatrick said:
Which is what makes it more interesting. 85% of cash (in terms of value) in circulation has been disrupted here, the 2013 proposal was much less drastic.
So if those objections were even a little legitimate for that limited operation then, why are they not legit for a much more widespread change now.
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Lol.. No legitimacy or any political arguments. Be it BJP or Congress, they all flip-flop as it suits them.
 
I've yet to read a reasonable explanation for the introduction of the 2k. And the ATM calibration thing is genuinely embarrassing.

I thought this was a good move but seeing the chaos over the last week I'm beginning to change my mind.


Akash said:
I've got no money for lunch tomorrow unless someone accepts the 2k notes:lol:
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Only place that'll break a 2k note are the liquor stores. Bought a couple of beers with my 2k note and got back 1700 in change.
 
There is no doubt that the govt were massively under-prepared and screwed up the implementation. They knew that the ATM's need to recalibrated. They knew that people would seek new 500s more because next highest denomination was only 2000. Yet, govt did not flood the market with enough 500s and 100s, but flooded them with 2000s.

If they were not ready, they could have put off the move by a month or so.
 
VP said:
I've yet to read a reasonable explanation for the introduction of the 2k. And the ATM calibration thing is genuinely embarrassing.

I thought this was a good move but seeing the chaos over the last week I'm beginning to change my mind.
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My guess is they panicked after pictures of the new 2k notes started doing the rounds on social media. I have read that the idea was to introduce this exchange of notes (This is not demonetization) from the New Year after they had printed the new 500 and 2000 notes, but had to push it so the hoarders don't get a wind and exchange their currency for gold or foreign currency before then.

The move isn't good or bad. As told by Jaitley in parliament in the last budget, the counterfeit currency is only 0.02% of our GDP, and I highly doubt that they are going to get much in tax from depositors of higher amounts. Even if they do, I wonder if they did a cost benefit analysis for the scheme and it proved that the loss of man hours, the cost of printing money etc. is less than the benefit from this whole shebang. I also don't believe that this new note cannot be counterfeited. New black money is being created as we speak, and I am sure counterfeiters are back to their drawing boards too.

The good that may come out can be that the dissatisfaction from the long queue's might stop the march of the neo-fascits who had been gaining ground from all the 'nationalism' nonsense. There are far more angry people than 'Bhakts' (our own basket of deplorables), who are drinking the current governments cool-aid on this.
 
My guess is they figured having 2k notes would make it easier to deal with the removal of the old notes and handing out valid currency in exchange. Hope they don't plan to introduce too many of them to the public. In fact i'm hoping they eventually scrap the 500 note as well. 100 as the highest denomination is enough and would encourage use of cards which should further help with the reduction of black money.

VP said:
Only place that'll break a 2k note are the liquor stores. Bought a couple of beers with my 2k note and got back 1700 in change.
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I went out for Dinner yesterday hoping I could get some change. Ended up paying by card and giving away what little change I did have as tips!
 
RedDevil@84 said:
Poor Didi.. A party full of goonda cadres and politicians more than willing to take any money to let Bangladeshi illegal immigrants to become WB citizens.
Asking commies for pro-tips?
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Aren't many of her goon cadres basically CPM cadres who changed sides as per tide?
 
berbatrick said:
Which is what makes it more interesting. 85% of cash (in terms of value) in circulation has been disrupted here, the 2013 proposal was much less drastic.
So if those objections were even a little legitimate for that limited operation then, why are they not legit for a much more widespread change now.
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Let me tell you how the scenario was different back then. This proposal was from 2013, and at that point more than 45 percent of the country was not connected to the banking systems. The argument then was that given the amount of people disconnected from the banking system they would be impacted more.

Thanks to the Jan Dhan Yojana there are now 219 Million accounts because of which more people are connected into the system. That is a huge difference and obviously the scenario now is different than back then.
 
newgiz said:
Let me tell you how the scenario was different back then. This proposal was from 2013, and at that point more than 45 percent of the country was not connected to the banking systems. The argument then was that given the amount of people disconnected from the banking system they would be impacted more.

Thanks to the Jan Dhan Yojana there are now 219 Million accounts because of which more people are connected into the system. That is a huge difference and obviously the scenario now is different than back then.
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I was assured somewhere in this thread that having an account wasn't the essential thing. It was access to a bank or post-office. If you want to point out that Aadhar has spread, that is a valid point.
But. The vastly different scales of what was proposed than and now are still relevant. Phasing out older notes is a constant and long drawn-out process, and affected much lesser notes in circulation over a much longer time.
According to the RBI, such pre-2005 notes are a small fraction of the total currency in circulation. The RBI spokesperson said the move should not be conflated with demonetisation of high value notes.

“A demonetisation would have meant a sudden deadline and possibly demanding an explanation for the source of the money tendered at the banks. We are aiming for nothing of the sort,” the spokesperson said.
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Kadak chai
http://www.thehindu.com/news/nation...k/article9342012.ece?homepage=true?w=alstates
“Do you see how tightly I have wrapped my saree around the waist,” asks Pachamma. “I tightened it up so that I don’t feel hungry,” she says. Pachamma, along with her two daughters Chitra and Chinnaponnu, came to the State Bank of Mysore, Anchetty branch, about 50 km from Kodagarai village in Anchetty in Denkanikottai on Thursday morning. On Saturday, they were still there, having slept two nights outside the bank.

Until then, the three Rs.1,000 notes held by the women were prized savings they had, eked out through MNREGA schme work. But, as they waited outside for the third consecutive day on Saturday, they were grimly aware of the three days of wages lost. “We lost three days of “100-day work just sitting here,” says Chinnaponnu.


And the notes had not fetched them a single meal so far. Chitra’s one-year-old son is already restless. “We bought puffed rice for Rs.10 and drank water from that bore pump there,” says Pachamma. She spoke to The Hindu after she was once again turned away by the bank, when she had approached for the requisition slip. They cannot go back, because they can’t afford another Rs.100 for the trip back and forth per head through the forest-fringed roads frequented by elephants.

Adjacent to the bank, ‘black sales’ of the bank requisition slips for exchange of cash in a demonetisation drive against black money is brisk. The bank has not printed enough forms and hence the photocopy centre outside is selling the form at Rs.10. Then there is the man who fills it up for a charge of Rs.10. Some 80 km away at the district headquarters in Krishnagiri, a cash exchange that took less than half an hour, has sapped three wage days of the rural poor.

“To exchange Rs.1,000, I lost Rs.400 a day,” says another man. The women who waited the whole of Friday to exchange Rs.4,000, got only Rs.1,000. “They said there is no money,” says Jayalakshmi, who has left her three young children at home and will have to go back to the village.
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Economists see ‘short-term pain, long-term gain’
http://www.thehindu.com/business/Ec...monetisation/article9345828.ece?homepage=true

Are demonetised notes striking gold?
http://www.thehindu.com/news/nation...triking-gold/article9345948.ece?homepage=true

Demonetisation: 11 deaths reported so far as India queues up outside banks
http://indianexpress.com/article/in...-on-people-11-deaths-reported-so-far-4374905/

In fact: When the money stops
The effects of de-monetisation will be the most acute when it spreads from consumption in households to production in factories and by farmers across the country.
http://indianexpress.com/article/explained/demonetisation-utility-bills-household-bill-4375665/
 
Isn't it fecking lovely that the "temporary" "bitter medicine" "short-term pain" is only always felt by the poor!

Farmers run out of cash in middle of sowing season

The announcement has spawned innovative ways of business in villages. Puran, another farmer in Francy village, says, “The village strongman is already promising Rs 800 in new notes for Rs 1,000 of old currency. This is being used by people who do not have the time for queues. There are no ATMs in our villages and we anyways have to go to the banks in towns. That is an expense many are not willing to ..

Read more at:
http://economictimes.indiatimes.com...ofinterest&utm_medium=text&utm_campaign=cppst
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