“This step will strengthen the hands of the common man in the fight against corruption, black money and fake currency.”
—Indian Prime Minister Narendra Modi.
For the first time, Indian patriot and defender of the common man, Narendra Modi, appears to be in over his head.
Practically, the unintended (?) consequences are nothing short of a crushing blow to those his efforts are said to protect. The precipitous demand for deposits, along with the penalty for depositing more than annual earnings are calculated to support, constitute a massive, business-damaging new tax.
Theoretically, this is a magnitude of government intervention that begs fundamental questions about money and banking. Careful consideration will expose central banking for what it is—a private facility that produces fake (unbacked) currency on a grand scale, for the purpose of helping central government: appear capable of managing the economy; finance everything from war to welfare; and buy votes.
Mr. Modi’s career opportunity, the stamp of his true belief in “free markets, free people” is to lead the abolition of the central bank, return India to private banking (as many banks as—say, hardware stores, all over the country), with real money deposits, honest bearer bonds, and the full penalty of the law for the particular brand of theft known as counterfeiting, currently the legal monopoly of the massively counterfeiting (by inflation) and stealthy wealth-shifting central bank.
What a way to unleash the globally admired entrepreneurship of the Indian common man!