All bets are off as it now appears India is going for a cashless society by Kenneth Schortgen
When a government publicly declares they are imposing a new monetary or capital control on the people to ‘save or protect’ them and their money from being used for some form of criminal activity, then it is automatically time to get out of that currency immediately.
This is because the real agenda of a government is never about protecting the people, but instead about instituting laws and edicts to protect their own when their systems start to go awry.
A few weeks ago, Indian Prime Minister Narendra Modi declared overnight that the nation’s two largest denominations in their currency were no longer legal tender, and the people had a limited amount of time to exchange the bills they held for a new currency. And as expected the ‘reasons’ that Modi used to impose this ‘Executive Order’ were to halt the black market economy that has been prevalent in India for decades, if not centuries.
But the real motive behind the move may be more sinister, and could easily bring India to the brink of a revolt.
And what might the real motive of the Modi administration be? Elimination of physical money altogether and the implementation of a cashless monetary system.
It is ironic that India would seek to become one of the first testing grounds for a cashless society considering that 90% of their 1.3 billion people economically function using cash rather than with a digital form of money. And a similar comparison could be made with Russia becoming Communist back in 1917, since Marx specifically said the phase into Communism would occur in a society that had reached a breaking point at the end of a corrupt Capitalist environment (which 1917 Russia was not).
Needless to say, the reactions by the people to the banning of just a few of their monetary notes has been at best chaotic, and at worst an abject failure. Economic productivity over the past two weeks has come to a near and complete halt as tens of millions of workers must stand in line outside a bank or ATM machine just so they can exchange their banned notes, or try to withdrawal a limited 60 USD worth of rupees.
In addition, the people of India who already have a limited confidence in their fiat currency are accelerating their purchasing of gold as they fear the actions done by Prime Minister Modi may soon make their currency worthless, or as some are beginning to suspect, un-spendable outside of a bank card that can monitor and perhaps control their consumption and freedom of commerce.