Demonetisation (in India) Was a Catastrophe: Marc Faber

[BADecker]

Demonetisation Was a Catastrophe: Marc Faber

"We all know demonetisation has been a catastrophe. It didn't achieve its objectives. It could have been done in a benign way, giving a period of six months wherein old notes could be exchanged so that nobody suffered," Faber told BTVi in an interview.

He said that the move was based on academics wherein the people in the government had no clue of how the market functioned.

Faber said the note ban did aim at targeting organised crime, which gets a boost from the abundance of cash. But they too have other means to lend out money these days, he added.

Touching upon the Goods and Services Tax (GST), he said that the rates are quite high under the new indirect tax regime, which would encourage black marketing.

Demonetisation and GST roll-out also affected India's growth rate, which slumped to 5.7 per cent during April-June.

The editor said that Prime Minister Narendra Mod, however, had good ideas and intentions and it would be good for the economy if it could grow at 5 per cent for the next 10-20 years.

Read more at https://www.lewrockwell.com/2017/09/no_author/demonitization-was-a-catastrophe/.

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[Sithara007]

I don't care what Marc Faber says. I am living in India and I can say with 100% confidence that the demonetization exercise had a lot of positives in the society. A lot of people who had stashed their ill-earned money under the pillow were running from post to pillar. Overall, the real estate prices dropped by 10% to 50% depending on the location.

[expertofexperts]

Whatever it was, all Indians never got frutrated from it, all co-opearted and things went very well. What some leftist lost is black money and what terrorist organization and supporters lost is counterfeit notes. So all and all, there are only few within and outside India that are still trying best to consent people that it was flop, otherwise we true Indians support it and will vote for same government again and again..

[September11]

Overall, the real estate prices dropped by 10% to 50% depending on the location.

And you don'ìt call this a catastrophe? LoL 

[Mad7Scientist]

With the sudden removal of the larger bank notes, people who have illicit cash will hold foreign currency or other articles of value in the future instead.

Black money edit A Central Bank's report released in August 2017 stated that 99% of the INR 500 and INR 1000 notes that were demonetised returned to the banking system. https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetisation

Either the black money that was intended to be removed was not returned and nearly all of it was replaced by other counterfeit money, or the idea was practically a complete failure.