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19 November 2016

Demonetization. Aren't we happy?

All of us agree that demonetization is the greatest decision taken by any politician ever in the history of India, we should also be happy about the following.

That across the country people are queuing up to lend their hard earned money (at a very low interest rate) to banks so that banks can improve their CASA position. We all know that Strong banks are the need of the hour. If they are strong, Banks can lend at low interest rates so that we the middle class can start the next bubble. Some may argue that it should be the other way around. That banks should be the ones lending money. Ignore them. It is just negativity

That head of SBI is the one in the frontline championing the decision of government. Some may say that it is the job of RBI Governor to come and calm the sentiments of the country. Some may ask why RBI Governor and the usually voluble CEA are silent. These are stupid questions. Ignore them. It is just negativity.

Aren't we so happy to see the old people standing in line to deposit money in their bank accounts? They deserve it, don't they. After all they are the ones who created black money over the last 70 years. Some people may say that Old people should be withdrawing money not depositing it. Ignore these people. It is just negativity.

Don't we all feel happy that we are more comfortable spending 2000 rupee notes than spending 50 rupee or 100 rupee notes?. Some may say that many of the small business transactions happen in small denominations and the small business people and vegetable vendors are the most affected due to the non-availability of small denomination notes. Ignore them. It is just negativity

That Peps ad asking whether you should bend to collect 10 rupees is no longer funny. Of course you should. Don't we all feel happy that 10 Rupee notes is the new 'Sone ka Sikka'?

Ignore the people who point out that poor, orphan children, who ran away from abusive families with a few stolen 500 rupee notes may be struggling with no support system. They may have no bank accounts and no ID cards / pan cards. They can't even change the money, leaving them more vulnerable. Ignore the people who say these things. It is just negativity

Ignore the people who tell you that the beggar standing at the traffic signal may be the most affected since no one wants to part with small notes. If only that beggar had a smart phone with Paytm installed. We could have transferred 50 rupees so easily.

Aren't we excited that the entire country has become a Paytm marketing machine.?

Some people may act smart and talk all 'economics' and point out that Inflation at 5 percent means that demand of goods and services in the country matches the supply of money in the country. So if you squeeze money supply, the demand will go down and that will have long term implications to the growth of economy. Ignore them. These are just jealous people who can't stand courageous decision making.

Some other people may act all smart and talk all 'Economics' and say that squeezing money supply is tantamount to increasing interest rates in the country. They may say that you can't talk of squeezing money supply and decreasing interest rates in the same breath. Ignore these people. They are not economists. Isn't it enough that Baba Ramdev supported the decision?

Some people may say that the other countries who tried (and failed) it include banana republics like Zaire, Venezuela, Zimbabwe, Erstwhile Soviet Union, Myanmar, North Korea etc. They may say that these countries were not known for their expertness in economic management. So what? Just ignore these people who say these. They are experts. They are not worth listening to.

That banker who cried on the national television, the people who spend hours in line to withdraw just 4000 rupees, the families whose marriage is impacted, the farmer who cannot buy seeds because he do not have cash, the fishmonger whose fish are rotting because people do not have cash to buy stuff, the children in poor homes who do not have food because their parents were paid in 2000 rupee notes, the senior citizens in bank lines, the harassed bank clerk who have to take abuse....

Ignore all these people. They are not suffering. They are fighting for a worthy cause. Can't you see that they are so happy to be a part of this sacrifice? Didn't they tell the TV people that the decision was good? Even if we do not have any facts (facts are for stupid people, anyway), we know that this country is filled with black money in the form of 500 and 1000 rupee notes. For long term gains, we have to pay short term prices. Don't bother if Stalin said it first.

Some people may point out that the country, which was one of the fastest growing economies and a beacon of light among global slowdown could be sliding into a short term recession? Ignore them. It is just negativity

Wait...What? Recession? What will happen to my Stock Portfolio? I am banking on it to fund my European Vacation. What a stupid decision, this demonetization....


Shubhadeep B. said...

Nice one Rams 👍

Ramaswamy V Krishnamurti said...

Thanks Shubh for your comment.