Modi and Rupee (Rs)

There isn't really much trust when it comes to money these days. Or rather, there isn't much to begin with since very very long time ago and it was only made more transparent over time and more discussed about in forums, news and external media. Taxation and the wealthy has made the headlines for many many years now, sprouting a lot of distrust and unfairness in many. India is one country which the disparity between the wealthy and the poor are deemed one of the most obvious and can be depicted as a self made building in the most prestigious neighborhood of a metropolitan city versus slums in a backward village.

Modi, the main guy at the centre of attraction now made drastic move to do away with 500 and 1000 Rs currency notes by the end of 2016. What does that really mean? Briefly, most of us would think that   how is this going to help in fighting corruption in the country? Well I would also think of it exactly the same way as many people out there but as I pondered, I think that there seem to be a certain rational that is going to affect those who have taken money under the table or if not did not abide by the rules.



Looking at how 500 and 1000 Rs notes being taken off the shelf unless they are brought into the financial institutions for tracement and legit purposes. Well if you think about in the sense of criminals and gangs who take part in cash transactions and most of these bills could have been marked and difficult to get rid of. In two months time, whatever that they have made in cash terms which are not bankable by any sense will become useless very soon.



On the wealthy side, I'm kind of certain some kind of safe are built into their personal buildings or underground that houses that kind of money (I'm thinking hollywood/bollywood style) but I think that you get my point over here. True enough, those money might have been used to buy into many other things over the years for the wealthy or even brought offshore and out of their country (Buildings, cars, luxury items, luxury holidays, brought overseas, gold, commodities and many more) but if these are money that cannot be declared, most likely a lot of these might be in case now. Definitely, there will be cash left behind from their ill gotten gains. By declaring, assuming that it is clean enough would mean that the wealthy have to pay taxes now. Whether if there will be a taxation pardon or reduction like what the Indonesians are implementing at this moment still isn't that clear at the moment.

Now I think that Modi do have guts to push and roll this policy out but how effective will be this be, we'll just have to wait and see. Economists will have plenty to say about the effects of the policies but I'm certain that these are reforms done for the greater good of the country. In a way, wiping away some form of corruption and habits. In the world of the politics, it is indeed a dog eat dog so it does pay to not even let anyone get a foot into what may seem like a scandal or bad press.

The CAD, police, internal governance/affairs or as whatever every country calls it requires investigative proceedings and to a certain extent some of those disclosed affairs might be setup as well. I do think that the basics to just discontinue these notes are the most basic form and yet most effective to date. It would most likely clean out a big chunk of what the political government have been trying to stamp out.



Meanwhile, I'm sure that the administrative hassles in which the change in the notes will create other kinds of troubles as well. Now that domestic issues are being sorted out, how about offshore and international issues?



Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants. Benjamin Franklin

There is some truth to what Benjamin Franklin says.

Man does not live on bread alone but on every word that comes form the mouth of God. Matthew 4:4