All bets are off as it now appears India is going for a cashless society

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.

Indian Prime Minister Narendra Modi on Sunday urged the nation’s small traders and daily wage earners to embrace digital payment channels, as a cash crunch following the government’s surprise ban on high-value bank notes drags on.
Modi, speaking in his monthly address on national radio, said the government understands that millions have been affected by the ban on 500-rupee and 1000-rupees notes, but defended the action.

”I want to tell my small merchant brothers and sisters, this is the chance for you to enter the digital world,” Modi said speaking in Hindi, urging them to use mobile banking applications and credit-card swipe machines.

”It’s correct that a 100 percent cashless society is not possible. But why don’t we make a beginning for a less-cash society in India?,” Modi said. “We can gradually move from a less-cash society to a cashless society.”

— Zerohedge

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.

It is a sad reality that a government or central bank that destroys their nation’s money through corruption, greed, or ignorance expects their people to simply accept financial changes that most often make their lives more difficult, and protect only the establishment from their own follies.  And it is why the people residing in nations elsewhere should see what is occurring now in India as a warning signal since if the 7th largest economy in the world is ready to see their currency change in this manner, how soon until countries worse off than they are begin to do the same.

Oh wait… they already are.

8 comments

  1. Well done, Ken. Folks think about it. If you were the high priest of the international Banker priesthood, and you wanted to pick one nation of the world as a test case for the creation of a gold-backed and yet cashless Society, which culture would you pick? the obvious choice is India. She is the center of the world when it comes to the origin of modern mathematics. She is the retainer of all manner of esoteric ancient wisdom. She has a HUGE population. She is middleman of BRICS.

    I doff my cap at TPTB.

  2. Seems like a last ditch effort to save the current banking system; they are flying blind and in panic mode to try this out on India.

    Hugo Salinas Price had said this best:

    ‘So now we are in the hands of ‘barbarians.’ They have no idea of how our society came to be, and what is necessary to keep it going. They are fiddling with the controls: You might think of a monkey flying a 747 (airplane) — they don’t have any idea what they are doing. And this is not going to end well with the barbarians at the controls…’

    http://kingworldnews.com/multi-billionaire-hugo-salinas-price-i-have-serious-doubts-about-the-survival-of-our-civilization/

  3. India uses cash for everything. Paying interest is considered very very bad.
    Imo, this will create a huge black market especially once people realize they
    no longer control their money…
    this ‘experiment’ will not end with everyone’s money in the bank under the
    banksters control…way too many people with very very little will decide
    or learn how the game is rigged against them
    how’s Australia doing going cashless…seeing very little in the news about it..

  4. Another view to Indian suppression of gold demand:

    ‘It is becoming clear that the Indian currency demonetization is actually a planned attack on Indian gold demand, launched to disrupt gold prices and discredit gold as an asset class. The attack was required to alleviate severe stress in the global gold market that is becoming increasingly difficult for the Deep State controllers to contain.’

    http://investmentresearchdynamics.com/

  5. http://www.zerohedge.com/news/2016-11-30/angry-mobs-lock-indian-bankers-cash-chaos-escalates-we-are-fearing-worst

    "Already people who are frustrated are locking branches from outside in Uttar Pradesh, Bihar and Tamil Nadu and abusing staff as enough cash is not available," said CH Venkatachalam, general secretary of the All India Bank Employees’ Association. The group has sought police protection at bank branches for the next 10 days, he added.

    Sounds like a re-run of Corralito (Argentina)..hope it doesn’t end in tragedy.

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