India's Great Demonetisation - 500 and 1000 rupee notes no longer valid.

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This story'll get almost no attention due to timing. Which is a shame, since it's the most ambitious attempt to crack down on tax evasion any country's ever engaged in.

While the notes no longer hold value as tender, Indians have until the end of the year to deposit their old notes into banks and gain the government's new notes. India has a tremendous problem with tax evasion, with only two percent of her 1.2 billion citizens even filing a return at all.

I'm horrified by the ways this policy could be abused, but the corruption this has the potential to clean up is without precedent since the Fall of the Eastern Bloc.
 
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lmao let's freeze 12% of the GDP and 86% of current cash reserves

Between this and the bureaucratic mess that is the new GST it seems like Modi is pranking the economy pretty hard

There are lines outside all the ATMs I see but I hear in the villages they run for hours.

What's funny is that the BJP was pretty opposed to the same move by the UPA govt just 2 years ago

 
DuskEngine said:
lmao let's freeze 12% of the GDP and 86% of current cash reserves

Between this and the bureaucratic mess that is the new GST it seems like Modi is pranking the economy pretty hard

There are lines outside all the ATMs I see but I hear in the villages they run for hours.

What's funny is that the BJP was pretty opposed to the same move by the UPA govt just 2 years ago

https://youtube.com/watch?v=yovULwYSJL8
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Wow, you live in that country?

Whadya think're the policy's likely outcomes?
 
*Asterisk* said:
Wow, you live in that country?

Whadya think're the policy's likely outcomes?
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In the major cities (but especially in Delhi) I think it will cause nominal housing prices to rise while real housing prices will fall (apparently it's standard practice there to list like 40% of the price on the contract and hand 60% over as black money). Forcing all that property to get cleaned is definitely a good thing in the long run.

Like I mentioned, it's causing a ton of grief for the country's poorest, who are a- the least likely to have bank accounts, and b- likely to live in the areas with the lowest ATM/bank density. This basically forces many of those people to open bank accounts, which is a cruel, if effective, way of bringing them into the formal economy.

(of course the other point here is that it also strongly encourages those same poor, rural people to sign up for Aadhaar, aka the biometric surveillance infrastructure that the govt would have you believe is a welfare system)

There have been a few cases of major counterfeiting operations busted in West Bengal and counterfeit money paid by the Pakis to Kashmiri terror groups that have been rendered useless by this move, but I am pretty skeptical of any mainstream Indian news that only cites 'intelligence sources.'

The cashless wallet apps are probably having a great fucking time of it. Good for them, too!
 
Ruin said:
Do the majority of poos even make enough money to pay taxes?
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There's only one man who has enough money to pay taxes in the great land of India.
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CervixHammer said:
wait so in 2017, Ghandi's face is going to be on designated wiping sheets? rimshot.wav
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Useless paper is far too valuable in an Indian slum to be wasted on such decadence.

They'll be turned into anti-pollution facemasks. Just like the Chinamen to Their North.
 
Econ power sperging I'll try to keep this short.
There was no good way to sort the issue India has with it's tax dodging. As much as we all like to meme about poo in the loo it's god damn true there and India as many nations whom got money late in the game, run into huge public work issues.

There's no money for public works because no one pays. When taxes get too large for the public or new people dodge them. In India, the idea of paying taxes is not like here where it's part of life. It's new expensive and disliked. For a huge amount of people they are out of a traditional wage system too. It's very hard to tax a cashless society and in today's climate socially, if you start taking people's dinner out of their hand it won't look so nice.

Needless to say a counterfeiters dream. To be honest, I couldn't come up with a better idea to unfuck this, and while it'll be a shit show, it's an attempt because it will get worse and India is hurting a good deal from this problem and they are reduced to a point where they have to make some action. Really only a few times in history has an issue like this popped up, but this is probably as the link said one of the most extreme attacks to sort it.
 
Bassomatic said:
Needless to say a counterfeiters dream. To be honest, I couldn't come up with a better idea to unfuck this, and while it'll be a shit show, it's an attempt because it will get worse and India is hurting a good deal from this problem and they are reduced to a point where they have to make some action
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The new notes don't even have any additional security features, though! This just clears out the buildup and adds to the government's coffers but its not a long term solution in the least
 
Bassomatic said:
Econ power sperging I'll try to keep this short.
There was no good way to sort the issue India has with it's tax dodging. As much as we all like to meme about poo in the loo it's god damn true there and India as many nations whom got money late in the game, run into huge public work issues.

There's no money for public works because no one pays. When taxes get too large for the public or new people dodge them. In India, the idea of paying taxes is not like here where it's part of life. It's new expensive and disliked. For a huge amount of people they are out of a traditional wage system too. It's very hard to tax a cashless society and in today's climate socially, if you start taking people's dinner out of their hand it won't look so nice.

Needless to say a counterfeiters dream. To be honest, I couldn't come up with a better idea to unfuck this, and while it'll be a shit show, it's an attempt because it will get worse and India is hurting a good deal from this problem and they are reduced to a point where they have to make some action. Really only a few times in history has an issue like this popped up, but this is probably as the link said one of the most extreme attacks to sort it.
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Hee Hee. Shit show.
 
DuskEngine said:
The new notes don't even have any additional security features, though! This just clears out the buildup and adds to the government's coffers but its not a long term solution in the least
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With out new security it's just a quick time cash grab at best. Even the best notes can be copied. Dealing with it in such a radical way with no long term plan is pretty insane and a poor choice imho.
 
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