the crisis is gonna get solved. in the meantime they're paying a huge premium for something that no one else will buy at that price and no normal indian will accept. i hope they enjoy their pump. they're setting their money on fire.
You seem to have a fundamental misunderstanding of the entire Indian situation.
The removal of popular banknotes is nothing less than a continued war on cash by the centralized banks of the world. Its cloaked in noble language, that it will prevent crime and money laundering activities, but the real issue here is simply control.
By removing large swaths of currency -- and enforcing rules that make it nearly impossible for those that are poor to comply -- India has effectively "bailed in" every single cash holder in the country. Naturally, the rich had access to money-exchanging facilities ahead of the announcement, as well as the ability to hedge using physical gold. The poor, who usually don't have an ID card much less a bank account, are now sitting on wads of bills they can no longer use.
To say that this situation will "go away" or be "fixed" tells me you don't understand the struggle for control that the sovereign states are trying to enact over their citizens. This isn't going away, in fact, it will be another landmark event like the Cyprus depositor bail-in. It only serves as an example for other governments to follow suit.
Perhaps you won't be so sanguine when it finally hits your shores and your bank account.
