Re:India raises withdrawal limit as rupee anger mounts
by kranner on Monday November 14, 2016 @03:26AM
(#12948336)
> If you're on the ground in India, you can tell people are thinking twice before selling their properties for cash (it's very common for people to sell for 70/30 or so ratio for white and black money) / other hoarding activities.
On the other hand, demand for gold has gone up. That's definitely a more fungible form of black money than property.
Re:India raises withdrawal limit as rupee anger mounts
by kranner on Monday November 14, 2016 @02:48AM
(#12948162)
The bad or unfair thing is if the BJP is hurt less than its competitors, which is possible if they have more of the newly valid currency to spend. Whether they accumulated this before or after the announcement is irrelevant; but there is now a scarcity which can be manipulated.
Yes, the timing does mean that major political parties in UP would be hurt because their insane amount of hoarded cash is in trouble but really, is that a bad thing?
As pointed out in comments above, this step does make sense given what the govt. has been trying to do to fight black money in the past 2 years.
In fact Modi keeps mentioning that this is not the last of the steps and there will be more measures coming into affect soon. Keeping the hoarders scared was really needed here.
If you're on the ground in India, you can tell people are thinking twice before selling their properties for cash (it's very common for people to sell for 70/30 or so ratio for white and black money) / other hoarding activities.