Why did India abolish paper money: Why did India abolish large-value paper money in the middle of the night?

I won't dwell on the extreme practice of wasting money, which directly damages the reputation of the country. Today, I just want to talk about why India wastes money and what is the reason behind it.

This policy of Indian Prime Minister Moody's is very interesting. There was a conflict with Pakistan here, and Moody did it. I always feel that Moody's and the Indian military are not on the same line. By doing so, he seems to be holding the military back.

India is actually a very wonderful country. This large-scale waste of banknotes has surprised the whole world, and under the banner of anti-corruption which is extremely appealing and inflammatory, I am afraid it is not so simple to think about it carefully. There must be something behind this that we don't understand. My personal guess is that there should be a payment crisis in India's banking system. If we don't change the banknotes, I'm afraid there will be a full-scale economic crisis in India, a large number of banks will fail and the financial system will be completely paralyzed. Therefore, instead of watching a full-scale economic crisis break out, it is better to change money to ease or survive this crisis. This is the most likely.

In the final analysis, the purpose of currency exchange is to freeze a large amount of circulating funds in the market and prevent a run. At present, in the process of implementing this currency exchange in India, due to the sudden incident, all levels of preparatory work, supporting policies and policy enforcement departments are restricted, and eventually problems are likely to arise.

Soon after, the governor of the Bank of India left office. Moody thinks he is too nouveau riche, maybe the position of prime minister has been taken away, driving Rajan's financial genius away! Moody is now surrounded by a group of high-caste trumpeters (such as what China is, what Mao is, and so on). ).。 . . This economy without foundation has revealed its true colors!

First, some people say that India's currency exchange can fight corruption. The author thinks that's pure nonsense. Didn't there be news two days ago that someone exchanged old banknotes from ordinary people at a 50% discount and then exchanged them for new banknotes through relevant banks? Then those rich and powerful corrupt elements can't directly change the money from corruption into new banknotes in the bank through relationships?

Let me put it this way.

1. Which corrupt officials can be hit by this change of banknotes? At most, take cash from corrupt officials. Of course, they also took a lot of ordinary people's money, because many old men and women also like to deposit cash and hide it in the cupboard, but they can't find it themselves and can't remember how they got it.

Even if you take the cash of a corrupt official, is it a blow to him? The real estate is still there, the car is still there, the land is still there, and the company is still there. As long as the power is there, the money will come back. Next time, there may not be much cash, mostly securities and stocks. You won't play for money, will you?

And you think changing money is fun? Don't say that the cost is not much less than the money you get back in exchange for money, and the loss to the country's reputation is incalculable. Just like China's RMB has begun to become an international currency, if foreigners can't get it back for exchange, how can we measure the damage to the reputation of RMB?

And the contradiction and harm to ordinary people may be unbearable for your society! It may even cause unrest!

2, the corruption problem in India is not a day or two, and corrupt officials in India can do it. Bank officials and gangsters can get rich together. Banks provide gangs with a large number of new coins at low prices, slowing down the exchange of people. Officials used their power to completely ban the circulation of old coins, making it impossible for the masses to buy rice and food with old coins. People can't go to the bank to exchange new coins, but they can only go to the black market to find gangsters to exchange them. The gang recycled the old coins in the hands of the masses at a low price.

In fact, this trick can be played harder. After getting the new coins, the gang bought a lot of necessities such as grain, gasoline, diesel, salt and coal. Even if the masses change into new coins, they can't buy food.

Gangs took the opportunity to sell grain, gasoline and diesel, salt and coal at high prices on the black market. When selling, they don't accept old coins and new coins, and all the goods sold are priced in gold. Take all the gold jewelry to the Indian people.

Author's Note: This "gangster" can refer to the "underground money house" in India. Ordinary people can't buy rice and vegetables with old money, and it is difficult for banks to exchange new money, so they have to turn to underground banks for help. Officials, banks, and underground banks joined forces to peel a layer of skin from ordinary people.

3. The author revealed a secret, hehe. Really greedy, greedy, how many people will put a lot of cash at home? The author tells you some ways for corrupt officials to deal with large amounts of cash.

A, arrogant-buying a lot of real estate, company shares or performance shares.

B, semi-arrogant-it doesn't matter if you open an account in a Swiss bank through money laundering or transfer it to a Swiss account through a shell company.

C, semi-secret-buy a house abroad and put the money in the vault of that house. It doesn't matter whether it's the functional currency or the dollar and euro.

D, secret type-convert all the money into physical gold and go to a deserted place to dig a pit and bury it.

Therefore, even if the money in the hands of corrupt officials and evil forces is successful in fighting corruption, the channels for them to obtain ill-gotten gains have not been abolished, that is to say, the foundation of corruption has not been removed. So after this wave, should it be black or greedy, and it will be different in a few years? You can't just do it every three to five years, can you? It is estimated that it will be replaced by gold bars in the future, and it is useless to waste money again. Wasting money only caused confusion and didn't solve any problems at all.

Corrupt officials' boxes of money are gone and moldy, which has no effect on them, because it is unnecessary. If the money in the hands of ordinary people is gone, people will die. That's their living expenses, medical expenses, children's tuition and so on.

Come to think of it, it is really a good way to fight corruption. The best way is to change new banknotes every year to stop corrupt officials from living. Chak De India Ha ha. . . . .

Secondly, the author thinks that Indian Prime Minister Moody's order to abolish paper money is more because there are great problems in India's financial system. Simply put. What if the country has no money? Want to find a consortium to collect taxes, the consortium does not agree. What should I do? High caste blower has a bad idea. Just like Daming, who committed suicide that year, he tried his best to collect taxes from the poor peasants because he could not collect taxes from the gentry. )

India has always had a trade deficit, and Prime Minister Moody's spent a lot of money to stimulate the economy. Now the banking system should have no money. By changing banknotes, the cash in the market is forced back to the bank. Otherwise, the excessive currency will inevitably lead to serious inflation problems, and the gold in India's treasury may have been exhausted by now. There is also a lack of means to curb inflation, so currency exchange is directly used to temporarily alleviate it.

India's great power ambition is really beyond the understanding of ordinary people, but unfortunately, it is a country that is condescending and only talks and does not do it. China's rapid economic development has greatly stimulated Indian ambitions. Therefore, India has adopted a series of radical policies in the economy, especially in the financial field. Specifically, it is to stimulate investment and promote economic growth with super-currency. A series of financial policies have played a certain role. India's economic development has obviously accelerated in recent years, and its performance in major economies is really eye-catching. However, if we walk too fast, there will be problems. Inflation in India is getting worse and worse. The rupee has depreciated from $65,438+0 in 2007 to 37 rupees. At present, 1 US dollar is exchanged for 70 rupees. Since 2065,438+04, there have been problems in India's financial system. .

Give a few examples to analyze:

1, India and China have been running a huge trade deficit (for India), which hasn't happened for several years, but this year India began to completely boycott China goods. Why this year? Because India is extremely short of foreign exchange now.

India has long wanted to import advanced fighters to replace the old domestic aircraft, but it has never been put into action. Finally, an agreement was reached with the French to import 126 rafale fighter. After more than n hours, I finally bought only 36. There are several questions that everyone can't figure out. Why did India buy rafale fighter at such a high price, and why did the quantity decrease so much? Why doesn't India buy Russian Su -35 fighter with similar performance but much cheaper price? The main reason should be that India has no money, Russia needs cash payment, and France can provide loans. It can be judged that India is extremely short of foreign exchange payment ability.

3. Why did India finally reach a high-speed rail cooperation agreement with Japan? Not with China? Because India has no foreign exchange, Japan is willing to provide most of the cost of high-speed rail construction. As for how to repay the Japanese loan, that's for the future, so we don't have to consider it now, so the agreement has been reached. However, on the issue of buying Japanese seaplanes, although Japan reduced the price to the point of losing money and earning money, as long as India paid, an agreement could be reached, but India had no money and eventually did not buy it.

Because of the great country ambition of Indians, they hope to become a colorful country like China, so increasing the economic growth rate is their pursuit goal. Because of this, they always adopt twin deficits's fiscal and monetary policies with greater risks. Although this policy encountered difficulties in foreign exchange payment in Singh's era (eventually repaying the due amount with gold reserves), it was still under control; After Moody came to power, in order to pursue higher economic growth rate, he vigorously carried out infrastructure construction, industrial areas, power plants, highways and other construction in China. In full bloom, its investment has far exceeded the range that the Indian economy can bear.

A large number of infrastructure construction occupies a large amount of bank funds, which is difficult to recover in the short term; In addition, because a large number of banks in India belong to private banks, banks have invested a lot of money in the domestic real estate market and stock market during the economic boom in the past few years. In the past two years, the global economy has suddenly cooled down, and the Indian real estate market has turned from hot to cold, making it difficult for banks to recover a large amount of investment funds. Under the double pressure, although the country has continuously increased the amount of printing money, the liquidity of banks has been continuously exhausted, and finally it has entered the edge of the financial crisis.

The sudden arrival of financial risks should be unexpected by Moody's. Should we watch the tide of bank failures or take drastic measures? Moody's adopted the latter. India's economic crisis is just the beginning. It is still difficult to judge what will happen next, but one thing is certain: it will cause heavy losses to the Indian economy. If the crisis is handled well, it will have an impact for several years. If it is not handled well, it will affect all aspects of politics, economy and society in India.

Therefore, the author believes that the so-called Indian banknote abolition order is mainly due to a big problem in India's financial system, and this solution will be available. Everyone knows that this unorganized anti-corruption will not work, otherwise other countries would have done it long ago! It is possible that India can't exchange foreign exchange, and Moody's is trying to buy time for its financial system to adjust.

Third, inflation is terrible, but deflation is also dangerous. India directly turns inflation into deflation by changing money, which is not violent. The most crucial thing now is how to quickly complete the screening through banks and pass the new banknotes to the real economy and ordinary people who are in urgent need of cash. The longer the delay, the greater the damage to the economy. However, if it is unconditionally convertible, it is hard to say. Now is the real test for India.

Finally, in the strong stage of the US dollar, all economies in the world, big or small, are trying their best to save the economy and prevent the financial chain from being interrupted by the US dollar. India wants to break its own financial chain and create panic. The United States is worried that there is no place to pass on the crisis and suck blood. It's really "God help", and the effect of Ganges water is really extraordinary.

"Governing a big country is like cooking a little fresh". All drastic policies may have temporary effects, but there will definitely be great side effects afterwards. In particular, this policy of waste money is related to the vital interests of thousands of families, even life and death. You can imagine the confusion caused by carelessness.

In a country, it is best to toss less at home. Unless you have to toss and turn, you must reform.