All sorts of sponsored economists & dacoits, more popularly known as Congress politicians, are trying to demolish the historical demonetization effort of Modi govt.
Demonetization was done in a precarious condition of informal economy breezing past the formal economy making India's economic growth vulnerable to enemy designs. It had reached cancerous proportions. If one has 3rd stage cancer, can one escape chemotherapy ? And can chemo be painless ?
What was the option ? Keep building a phoney GDP based on a house of cards or clean up the system and build an India on surer foundation to become a dependable credible global economy ? The answer is obvious to all except those who have got used to getting fed on loot.
As regards the mission of DeMon, the ideal would have been as follows -
A> 4 to 5 lakh crore as demised money which would have gone straight to Modi govt's coffers to be used for the poor & infra/ defence.
B> Balance 10 to 11 lakh crores to the formal banking channels leading to the following direct & collateral benefits -
i) Huge jump in formal economy
at the expense of informal
economy.
ii) More productive money with
Banks instead of unproductive
money lying at homes etc.
iii) Huge increase in tax base
leading to recurring revenue
annually.
While B is fully realised - the only setback that has happened is that A has been reduced to just one lakh crore or so instead of estimated 4-5 lakh crore. This is a temporary setback as those who have hoodwinked the system would be caught leading to demise of that money plus benefit of additional taxes/penalties.
For the first time, govt has the database of the ownership of entire currency based on which the govt will be able to keep a close watch on currency movement.
The poor & middle class needs to understand that Demonetization is for them & for their generations to come at a very very small cost of standing in queues for a month or so. The following benefits have & will accrue to them -
i) Money looted over 60 years & which belonged to them, has been snatched back from the looters & shall be used for them.
ii) Because of huge money with banks, rates of interest on loans will come down leading to more factories & hence more jobs for the children of poor & middle class.
iii) Very important point to note is that earlier burden of running the economy was on the tax paying middle & lower class. Now all the black money generators will pay taxes and hence burden on the honest tax payers will reduce.
iv) As the govt & banks have now huge resources at their disposal, all the money needed for the poor subsidies & rural infra would be available.
v) Containment of terrorism, naxalism, hawala, drug & human traffiking, prostitution etc are collateral benefits of Demonetization.
Modi ji demonetised the currency in the interest of the nation - has not bothered about ensuing elections. No other politician in his place would have had the courage to take such a bold step.
Indians have the last chance to be led by a leader of Narendra Modi's calibre in a world threatened by leadership crisis. Trumps, Putins, Merkel & Trudeau type jerks rule the world. India has a historic chance to take the pole position. Indians may squander it at their own peril.
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