Scenes Of Panic In India As Gold Price Skyrockets After Currency Ban

Tyler Durden's picture

Submitted by Jayant Bhandari via,

Chaos in the Wake of the Ban

Here is a link to Part 1, about what happened in the first two days after India’s government made Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes illegal. They can now only be converted to Rs 100 (~$1.50) or lower denomination notes, at bank branches or post offices. Banks were closed the first day after the decision. What follows is the crux of what has happened over the subsequent four days.



India’s prime minister Nahendra Modi, author of the recent overnight currency ban


Today India is on the verge of a major social-political crisis, unless either the government backs off from the decision of banning the currency or some real magic happens. There is chaos in the streets and daily life is slowly but surely coming to a full halt.

What Modi did was not only heavy-handed, hugely arrogant, and of no value, it has been very badly implemented to boot — as everything in India always is — and carries the real potential of escalating and snowballing into something horrific. They could have seen that this was not going to end well by simply using primary school math.


Modi, Nationalism, and the Public School-Indoctrinated Middle Class

India today is like a cult under the influence of Narendra Modi — in which unlike in the past, not the poorest or uneducated citizens, but mostly members of the so-called educated middle class participate. Over the last two decades, people have been exposed to mass education, TV and nationalistic propaganda without being taught an iota of critical thinking skills.

In a society in which the concept of reason does not exist, this has made these people receptive to any kind of propaganda with a nationalistic or Hindutva bent. (Hindutva = fanatical Hinduism, which is rapidly metastasizing).

To aggrandize his position, Modi ordered a lot of military-hardware that India cannot afford, escalated tensions with Pakistan, and conducted what was very likely a fake surgical strike inside Pakistan. This united Indians under the flag.

Now, the demonetization of the Rs 500 and Rs 1000 banknotes was tagged with nationalism, anti-corruption, and anti-terrorism. Simple-minded, slogan-susceptible persons were hardwired to accept an erroneous causality. Those who did not go along were made to be afraid of being called pro-terrorist elements.

Those in the middle class have taken what they deem to be the higher moral ground, for they have mostly avoided suffering from the demonetization. Lacking moral instincts — which is unfortunately the case with much of Indian society, given its deep-rooted irrationality and superstitions — they cannot see or feel the pain of those who are suffering, even if that suffering stares into their faces.

But events are in motion that will likely very soon lead to these salaried members of the middle class starting to feel the pain as well. Their instinctive trust in Modi is likely within weeks of coming crashing down, not because of reasoned argument, but because they will be facing similar problems as the ones the common man is now facing.


Conversion to the New Currency

I went to convert my banned banknotes into new ones. The largest amount one can have converted is Rs 4,000 ($60), until further notice. There was a huge rush of people at the bank. Arguments were erupting, as people refused to stand in queues and the banks gave no explanation of what needed to be done. Fights were breaking out.

Amid the chaos I finally learned that there were three queues I had to go through in a sequence. I had to get a form from one counter, which I had  to fill in with my name and address, my ID card details, the serial numbers of all the bills I wanted to exchange, and my cell-phone number.

At the second counter, I then had to present the completed form along with a photocopy of my ID card. I had to sign on the photocopy which an official then stamped. With my banknotes, the form and the photocopy of my ID card, I then went to the next queue to get my currency converted at a third counter. The whole process took about two hours. For most people in the busier parts of the cities, it took much longer.

Day 1 of the banks opening. Poor, desperate people, whom the government treats like slaves or perhaps insects. Somehow these people have been brainwashed into thinking they live in a free country. My granddad kept photographs of British royalty on the walls of his office until his final days, for he had realized that the British had treated him much better.

Anyone who thinks that a country which wastes two hours of every citizen’s life to convert his own $60 can ever hope to be an economic power is drinking too much Kool-Aid and cannot do primary level math. Forget any possibility of removing unaccounted for money or reducing corruption, what Modi is doing is a recipe for the destruction of whatever legitimate economy there is.

That same afternoon, I went to the post office with a friend who wanted to get his money converted. After waiting a long time there, we found out that the post office had run out of cash. Since then most ATMs have had limited amounts of cash available and banks keep running out of cash as well.

The queues have continued to grow. People start lining up late into the night waiting for banks to open and still have to go back home with no cash. What started with two hours of queuing is becoming an endless slog now.


An endless queue to convert Rs 4,000 (USD 60). Will they actually go home with their new cash?


The Problems Go Much Deeper

Half of India’s citizens do not have a bank account and around 25% do not even have an ID card. These are the country’s poorest people, who have no way of converting their money – even if they learn how to do it, which is already a nigh insurmountable hurdle. Also, those who are old, disabled or sick have no choice but to suffer, for without personally visiting a bank branch office, one cannot convert one’s banknotes.



An old disabled woman struggling to get her money converted. One has to be utterly heartless not to feel angry about the situation.


97% of the Indian economy is cash-based. With 88% of all outstanding currency no longer usable, the economy is coming to a standstill. The daily-wage laborer, who leads a hand-to-mouth existence in a country with GDP per capita of a mere $1,600, no longer has work, as his employer has no cash to pay his wages. His life is in utter chaos. He is not as smart as Modi —  despite the fact that Modi has no real life experience except as a bully and perhaps in his early days as a tea-seller at a train-station. He has no clue where his life is headed from here.

These people are going hungry, and some have begun to raid food shops. People are dying for lack of treatment at hospitals. Old people are dying in the endless queues. Some are killing themselves, as they are unable to comprehend the situation and simply don’t know what to do. There are now hundreds of such stories in the media.

Small businesses are in shambles, and many will probably never recover. The Hindu wedding season has just started and people are left with unusable banknotes. Their personal and family lives are now an utter disaster.


Desperate people raiding a supermarket


Lacking moral and rational anchors, and hence compassion, members of the salaried middle class are unperturbed. Their salaries get taxed and most of the bribes they are getting end up in gold or property investments. In their minds, poor people and small businesses don’t matter. In the hypocritical culture of India, as long as the middle class is not suffering — for the time being — they prefer to take what they believe to be the higher moral ground.


Why This Problem Will Get Much Worse

Let us do a few simple numbers… What has been made illegal comprises 88% of the monetary value of all currency notes in circulation. In an economy based primarily on cash, the liquidity of cash is the lifeline of the economy. This requires that 88% of the new currency be rapidly dispersed into the market.

The Indian government has absolutely no history of being able to entertain a project of this type or magnitude ever and after the British left, India’s institutions have continued to deteriorate, so hope is not an option. If they fail to issue enough new bills, the very limited supply of Rs 100 notes will disappear within a few days.

As any rational person has a tendency to store good money while using bad money in transactions, people will hide all newly released currency as well as Rs 100 banknotes until full liquidity is restored. The rich and the well-connected have already done what was needed.

A reminder of Gresham’s law for Modi:  “Bad money drives out good money.

Those who have no need to convert their money as all their cash is already in the banking system (as is the case with the salaried middle class), which they think is making them look like a heroes in the eyes of Modi and is giving them a sense of moral superiority –  they are nothing but turkeys being groomed.

Banks are giving out a mere Rs 20,000 ($300) a week at best. Their lives will suffer and for all intents and purposes, their accounts are frozen. This is Cyprus ten times over –  they just haven’t realized it yet.

Whichever way one looks at the above numbers, India’s economy is going to start suffocating, within weeks, if not within days. And a serious political and social crisis will take place, which will eventually acquire a life of its own. That is when the as of yet unperturbed salaried middle class wakes up with pain.

As in any irrational system, it is not reason and morality that will have convinced them to scuttle their hypocrisy and limited vision, but the violence and pain that they themselves will suffer.



Politicians and bureaucrats of course cannot be seen queuing at the banks. Many bank branches apparently had their cash secretly replaced by the now-illegal bills before the first day of reopening. While no more than two bills of Rs 2000 each should have been collected, those better connected apparently haven’t had a problem with this and have been shown showing off packets of the new currency they have. All this cash will do nothing but end up under mattresses, as it has in the past.



Politicians with too much corrupt money (now unusable currency notes), who could not convert it beforehand, are distributing it to villagers as loans. Villagers will take the risk with the tax department, including having to hand over a large portion of it as bribes.


As I walk around, corruption is everywhere and has grown exponentially, not only in financial terms but worst of all, in terms of the humiliation and degradation Indians are suffering. And I don’t know how a humiliated, soulless person can be anything but corrupt.

In village after village people have stopped working, even if they had work, as they can now join the queues at the banks to convert other people’s banknotes for a commission. For many young people, this is a wise entrepreneurial decision, as they are making many times the money they would have otherwise made for now.

But they are being trained to make money from non-productive activities — not from wealth-creation, but from unnecessary problems created by the government. Are they being groomed for a corruption-free society? One has to be naive to respond affirmatively.



Sell your now illegal currency for a 20% discount, which young kids can then convert into legal money at the bank


Fear of the tax authorities means that the level of bribes being offered has gone up. Random people can now impersonate tax officers and collect bribes. People are in the grip of a fear psychosis. Many are emptying their bank deposit boxes, which means that crime will inevitably increase in coming days.

People are constantly worrying about what Modi’s next knee-jerk act might be and how to protect themselves against it.  A police state is knocking at the doors.

A receptive environment has been created in which all kinds of rumors are taking wing. Today, salt is selling for Rs 400 ($6) per kilogram, as rumors have been  making the rounds that it is about to disappear. This of course creates a situation in which it will actually disappear. The same is happening with sugar. The largely irrational masses are eagerly devouring a great many random rumors.

Lesson for Modi: Never, ever destabilize a society that works through conventions rather than reason, for it has no way to return to a normal state of affairs without a huge amount of pain and violence. Simply look at neighboring countries in order to understand this.

Chronic fear is slowly overtaking the mood of Indians, particularly those who run businesses. They have not only completely lost their trust in the government, but the tax department has been raiding people’s premises to scare those who are trying to salvage what they have.

They have stopped worrying about creating value. Everyone is talking about what to do with the banned banknotes, for even if they are fully accounted for, people  fear that the increasingly rapacious tax authorities will make trouble anyway.


Uncertainty has gripped the populace. Not everyone is capable of grasping the situation and dealing with it.


People are now converting whatever they can into gold, silver, and mostly for the first time into the US dollar and other foreign currencies as well, all of which are trading at huge premiums. Money is also moving out of the country. Gold has shot up to as much as $2,800 per ounce, if you can find it.

Lesson for Modi: The reason people trust Switzerland is because it has hundreds of years of history of protecting private property. Singapore has done an equally good job, but it still lags behind Switzerland, because trust requires a very, very long history of institutional honesty and integrity. India is back to level zero for now. When future generations look back, they will see the current demonetization as the worst event in the history of post-colonial India.

Finally, the new bills have actually worsened the counterfeiting problem they were supposed to solve. People do not have any experience with what the new banknotes look like. Within a mere three days, counterfeits are already in circulation. Contrary to the government’s claims, the new bills are not any more sophisticated than the old ones and are made of simple paper.



A mere three days after the first release of the new banknotes, fake currency is already in circulation


Why Has the Government Miscalculated?

The most productive job Modi ever had was running a tea-shop at a railway station, which he then gave up to become a bully. He is a complete stranger to complex thought. He is simplistic in his thinking and does not understand the second-order consequences of his actions.

First he increased Hindu fanaticism, then he participated in collectivizing people using nationalism, then he created problems with Kashmir through his heavy-handedness.

He completely failed to liberalize the economy or remove corruption from public life, which is an almost impossible job. Quite ironically, Modi is making it possible for public servants to escape scrutiny, the very people who are the fountainhead of all corruption.

A simplistic mind is also arrogant. Such a mind — unable to conceive the possibility of unintended consequences — thinks all that has to be done is to issue orders and everything will fall in place. Alas, this may work when shooting innocent people in Kashmir and in other destructive ventures, but when it comes to institutionalizing social progress, a more complex and intelligent approach is needed.

All of India’s institutions have continued to deteriorate since the British have left. They are rotting away and are in shambles. India had some breathing space over the past three decades because of the free gifts of the internet and cheap telephony which it got from the West.

This has merely made Indian governments more rapacious and so-called educated Indians more arrogant. They collectively lack the capacity to improve India’s institutions after having destroyed them. Demonetization may well be the straw that will break the camel’s back by accelerating the deterioration of India’s institutions toward the point of breakdown, perhaps in weeks if not already in coming days.


Conclusion – What Can One Do?

As Indian, be a speculator – even if the government does not like it and will blame you for all ills. Try to keep as much of your money in cash, in Rs 100 notes. Rs 2,000 notes have no value when you go shopping for groceries. Keep a supply of water and dried food sufficient for a few months’ needs.

Cash is disappearing and even before that the economy was stumbling. It might take just one more small domino — more strain on liquidity — to bring about systemic problems in the economy that could bring crucial transactions, businesses and supply lines to a halt.

If systemic violence spreads, everything will be complicated further. Think of Zimbabwe. It pays to be prepared, particularly when we are ruled by zombies.

*  *  *

Finally, here is Luke Radkowski (@LukeWeAreChange) on the ground in New Delhi, India describing the chaos...

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Yukon Cornholius's picture

This is gonna get interesting. Get your miner stocks while they're still pretty cheap.

Mr. Universe's picture

So let me get this straight. 25% of the population have no bank accounts and must deal with cash. That is 313 MILLION people! What could go wrong? Riots coming soon unless they fix this pronto.

Haus-Targaryen's picture

For those of us who are cash heavy, I wonder how to protect against the state doing exactly this.  

Yes, those $100€ notes are no longer valid currency and you need to exchange them.  To exchange them we need your address, passport number, serial numbers of the notes and your SSN/PerSo Nummer.  They will only be depositable into your bank account and the largest denomination note availble from ATMs now is $50€.

AU and AG are obvious, but for those with cash --- how do you deal?

Multiple currencies? Sure, obvious.

Interesting times we live in.   

BaBaBouy's picture

Fiat Paper Fiats Are So So SOoo GOOD ~~~

BaBaBouy's picture

IMAGINE ... Trying to buy GOLD right now With Fiats Rupees...

Haus-Targaryen's picture

To be fair this article is missing a KEY piece of info -- they are remonitizing the 500 RS and creating a new 2000 RS note.  

Supply problems galore feeding liquidity into the economy. Interesting. 

Manthong's picture


With all of the great contributions Indians have made to the sciences, how could they retain such stupid leadership?

Americans finally got a clue, maybe India will be Trumpetated soon, too.


strannick's picture

$2800 an OZ? If they can find it??

They could just buy a paper gold Comex contract for$1224.70. What a deal

BaBaBouy's picture

@ Cash Wheel-barrels Galore ~~~

In India, If You have your money in GOLD right now you are sitting pretty.

Fathead Slim's picture
Fathead Slim (not verified) BaBaBouy Nov 16, 2016 2:23 PM

Only if you have gold coin/bullion in hand. Paper shares are unredeemable in anything other than fiat currency, whether paper or electronic.

SofaPapa's picture

This has the potential for a global black swan of unimaginable consequences in coming weeks...  we are talking about a nuclear-armed country of more than 1 BILLION people potentially entering genuine anarchy... next door to Pakistan...

The Saint's picture
The Saint (not verified) SofaPapa Nov 16, 2016 3:18 PM

I wish Obama would declare any Federal Reserve Note over $1 to be illegal.  I'd love to see him tarred and feathered before he leave office.

But, in India I guess this statement in the article must be somewhat true:

"In a society in which the concept of reason does not exist..."

beemasters's picture

"Modi ordered a lot of military-hardware that India cannot afford, escalated tensions with Pakistan, and conducted what was very likely a fake surgical strike inside Pakistan."

Who does he think he is!!! An American president???

Save_America1st's picture

wow...pretty intense article.  This must be a test run of a form of "bail-in". 

For an economy like theirs that seems to be only way they could bail themselves in by doing it like that.

But for a rapidly increasing number of people in the Western economies, they've nearly all been converted like little lemmings right over the cliff to almost 100% digital "money".

If The Powers That Be had no fucking problem at all pulling this shit on nearly 1.25 Billion people and destroy what little was left of their destitute lives, then certainly TPTB will have no fucking problem making a few clicks with a mouse on the master computers to destroy what's left of nearly 300 Million Americans at some point, don't ya think???

All they have to do is deduct whatever percentage they want out of people's digital accounts straight across the country.  Or just devalue the digital dollars to whatever level they want after they've cut off what's left of circulating cash.

Go to bed on Saturday night and wake up Sunday morning w/ nearly all your digital wealth having been confiscated or devalued at the whim of the Fed.

Never forget or lose sight of what fucked up, sick and twisted treasonous, psychopaths and sociopaths TPTB really are, and that they view everyone else on the planet as nothing but ants to stomp on and burn with a magnafying glass because it fucking amuses them to do it.

Dubaibanker's picture

There will surely be massive riots unless the Govt revokes this momentously stupid decision.


More than 90% of the Indian population (almost 1.23 billion out of 1.37 billion) are struggling with very low business, very low income, medical problems, stress of lining up in banks all day and then going back disappointed or trekking to banks for miles, spending a transportation fare and then coming home dejected etc.


Major vote bank of the ruling party of India has become very angry. 

400,000 trucks are estimated to be stranded across India, sowing and harvesting has halted, food wholesalers are stranded, jewellers have been shut after the first day (so 7th day shut today), millions of low wage workers have not been paid PLUS cannot buy food etc.


If things do not improve by this weekend, expect more protests and some riots due to disappearing food and rising food prices.


Less than 10% population has internet access while less than 0.05% use Facebook actively.


Everyone has simply forgotten about the rural masses, the grim economic situation of the banks, the lack of any job creation in the past few years, the foreigners who are leaving India one by one or any other important thing like farmer suicides or OROP etc.


Bankers could also be hit and could be harassed or shut inside their own branches. Many such incidents have occurred but are not being reported anywhere in the media.


25 people have died in the first 6 days which could reach over 50 deaths by the end of this week in incidents related to demonetization so far.


Parliament should get disrupted again and no business may be accomplished in the winter session starting today due to OROP and demonetization related protests.


Even the President of India did not react last night after meeting the opposition.


I hope better sense prevails and demonetisation is rolled back in order to make life back to normal for 99.9% of the citizens of India who have absolutely nothing to do with black money yet are being forced to pay the price due to inability to access the basics of life like school fees, food, medicare, transport, rent, income, groceries etc and has brought the economic activity across India to a grinding halt.


India’s demonetization takes its toll on major sectors 

Article by top Indian researcher working at a Swedish Univ since 1991 compares Modi to dictator Mugabe of Zimbabwe!


Demonetisation is good only for Modi, no one else 

Editorials now appearing against the demonetization move!


I was in favour of the move per se however watching 99.9% of the people go through unwarranted difficulties due to black money owned by 1%, it wreaks of politics and unfair injection of cash by force into the insolvent banking system which seem to be the only 2 reasons to justify removal of 86% of any country's currency overnight!


Modi tried to do a good thing but could not plan or execute it well.


He will lose all future elections!


How many editors can Modi fire after he laid off the editor of Outlook India and a writer of Huffington Post in the last few months?!


Does Modi have the courage like Kejriwal does to walk amongst the public standing in the serpentine lines around the country


Just look at the sheer stress on the system:


India's gold traders on edge as Modi fights


Demonetisation Cues Leaked Selectively, Says Opposition In Rajya Sabha


Demonetisation- the banker's plight 


Read more at:


Modi’s new strike against black money backfires 


Jewellery shops remain shut for the 6th day


Demonetisation: 'Aakhir' queue? Aam aadmi struggle for cash, big fishes appear nowhere


Applying indelible ink mark for currency exchange a dictatorial decision, says Stalin


Post demonetisation, Goa officials demand Nov salary in cash


Note ban debate: Comparing PM with Hitler, Mussolini, Gaddafi atrocious to say the least, says BJP 


Demonetisation: MFIs like Bharat Financial hit by cash crunch in near term


From unpaid wages to farm output problems, Demonetisation woes hit India


Modi faces backlash as cash crunch drags on


Farm credit dries up 


And to end this all with deaths being caused across the country due to sheer frustration by the people who suffer the most which is the 99.99% of the people for whom not a single thought was made by the dictatorial Govt.


33 Demonetisation Deaths In 7 Days: Hospital Casualties, Suicides, Heart Attacks And Even A Murder

Lorca's Novena's picture

Surely the liberal college proffessors can fix this problem!!

balolalo's picture


what happens if he doesn't protect it? 

what will the tylers do?  what will you do?

Al Gophilia's picture

And the public educated sheep of Australia, (or any other country for that matter) will gleefully support such a move. Why? Because just like Hillary and Donald supporters in Amerika, when their current champion make a proclamation, they will dutifully and mindlessly acept it, as they too (same as the Indian populace) do not understand the second order consequences of dictat (Democracy in all its regalia). They can't even fathom the second order consequences of Democracy, even as they witness those consequences play out before their very eyes on the streets of America. Their opponents (current majority) still fail to fathom as a voting bloc, that the next group on the streets will be them.

Flash mob politics is now politically acceptable because, by their omission to condemn it, Obama, Hillary and Dems in high office condone it. Political idealism is the twin child of Democracy, both of the same pedigree yet diametrically opposed.

Farmed, played, fleeced and slaughtered.

Whither goest thou, my Constitutional Republic?

cougar_w's picture

India's Modi is already their DJT. The parallels are nearly perfect.

NidStyles's picture

Their leadership isn't stupid, they are just bought out and beholden to the same alien invader banking cartel that the rest of the governments in the world are beholden to.


That same cabal we just had an election fighting against in the US.


The parasite class will demand it's pound in flesh or it will send it's other host society in to come and freedom you to death. There is only freedom in dealth according to them.


Fred C Dobbs's picture

This is the discussion that should be here as NidStyles pointed out.  Modi is there because the Deep State wanted him there.  A former tea seller that was promised the world if he would do as told.  He has done their playbook using weaponized tv, nationalism, foreign enemies, divide and conquer, etc.  Now war on cash.

Filipinos reading this, you should be grateful for the moment that you have a leader that can tell the President of the United States to go to hell.  Modi could never say that to power. 

Dancing Disraeli's picture

Really?  Modi is a self-made multi-billionaire with businesses all over the world?  Who knew?

Max Hunter's picture

That's nothing.. They need to take lessons from Walmart and Best Buy shoppers on Black Friday.. I didn't even see anyone lose an eye.. 

sarz's picture

India's only party that is not corrupt, Aam Aadmi Party ("common man" party) does not have a national footprint. Don't see how the country can recover from the total mess it is in. 

zeronetwork's picture

If you want to exchange you need to provide sources of your money.

BaBaBouy's picture

""Try to keep as much of your money in cash, in Rs 100 notes. Rs 2,000 notes have no value when you go shopping for groceries.""

Get ride of 500's and 1000's and print 2000's ???

How would this stop black markets, counterfeiting?
Bogus bills already printing???

Ok, next week the 2000's will be banned...

TIP For India... Invest in Wheelbarrels ~~~

Bunga Bunga's picture

Fiat is a barbarous relic.

East Indian's picture

No. It is true that new Rs 2000 and Rs 500 notes are being introduced, But the government has made it clear they will not replace the old notes 100% - instead, about 70% will remain in the banks, and accessible only through debit and credit cards.

Of 13 triion in circulation, no more than 3 trillion will be replaced by new notes; the rest will disappear and be reborn as zeroes and ones in your bank account.

This is war on cash.

And it will fail. Already peope have found about thrity or forty perfectly legal ways to exchange the old for the new. This is India, the land of no discipline, where even the chaos theory also fails.

Take it, Mr Rothschild, you have met your waterloo.

SafelyGraze's picture

no worries.

that could never happen here.

zeronetwork's picture

Is there any lesson for us?
Because we are stupid.
It's too late for Indians too.

NidStyles's picture

Who is this "we"? Do you have a mouse in your pocket or something?


I don't run the banks or the government...

Notveryamused's picture

The author repeatedly says things have declined since the British left. Hint: The British never left, they are still pulling the strings. The currency ban coincided with the British Prime Minister, Theresa May's visit to India...

Where's me jumper's picture

I've been watching this one closely. Wouldn't be surprised if very 'need to know' info was passed on and Modi panicked. 30 th December is their d day and I note the population is being flushed into staples, small note denominations and gold. What that means or portends is anyone's guess...

ThanksChump's picture

"What that means or portends is anyone's guess..."


I'll guess a major military conflict WAS planned, back before The Donald's supporters overwhelmed the pre-planned vote-machine Clinton bump, granting Trump an unexpected win, and screwing it all up.


Putin probably cued Trump in after a quick congratulations, right before he called Lavrov and said "Those CIA assets in Syria... Hit them. Hit them hard."


Modi can't exactly backpedal on this now that May's tipoff is kerputz, can he.


Just guessing.

Where's me jumper's picture

Your guessing looks good from this angle..:) something is snagging about the whole thing tho.

Maghreb's picture

I have my suspicions Modi and the Central bank are taking the nuclear option to destroy someones cash reserves. Somewhere on the sub continent populated by 1.2 billion people there is a Pablo Escobar type figure hoarding cash from drugs , prostitution or whatever. Could be Naxalites, angry sihks, Siamese or urban crime syndicates but where ever these people are they are going to have to make a move to clean their money. Tragedy is outfits like that have all the forewarning and probably cleaned the money in advance leaving Modi turning the lives of the poor Indians up side down for the benefit of "money changers".

Myanmar did the same thing and the junta almost got over thrown a year later. Aung Su kyii supposedly led the riots that followed and almost brought down the government. Again as much as this hurt the poor I gurantee someone else got hit harder.

The darker sides of my mind think this may be a power grab towards either a war with the Chinese or an extension of the already frightening population control methods they've tried to adopt. The Sihks in particular have been hit hard with the Punjab having the largest gender imbalance in the entire world. 

I see a coming Deccan Facism. 

LawsofPhysics's picture

I venture to guess that the average American is significantly better armed by comparison to this society.

Seems to help people be a bit more polite when the rubber acutally meets the road.

Interesting times indeed.

DosZap's picture

You sir are correct.We know under Obama,at least ON average at least 1.2 million new weapons per month were purchased for EIGHT years(and I am certain at least 25-30% were AR's. AK's or various clones of same),add that to the KNOWN 400 million already (on paper), and we surpassed 500 million easily.

ThanksChump's picture

Ammo sales have been outrageous the past few years too.

Everyone complains that they can't get .22LR or shot shells. So, that's a lot of what I stock.

Knob Creek's picture

Damned straight we're better armed. I've even got a couple of theirs in my collection. Ishapore 2A/2a1 bolt guns.  (Bet they wish the hadn't surplused those bitchez out)

Holy hand grenade of Antioch's picture
Holy hand grenade of Antioch (not verified) LawsofPhysics Nov 16, 2016 1:21 PM

They gotz dem blunderbusses

Bemused Observer's picture

Yes, we are armed. But they have 1.2 Billion people. Numbers that large create their own dynamics where guns, though very helpful, are NOT the opposition's biggest worry.

They don't need guns. They just have to say "No", and mean it.

Maghreb's picture

Naxalites are heavily armed. I think besides ISIS and a few groups in iraq they are actually the most active terrorist organization in the world most years. No one hears a word mostly because they operate in poor parts of India and secondly because they may be backed by the Chinese. The irony is as Communists they may not actually object to this.–Maoist_insurgency 

Draybin Deffercon III's picture
Draybin Deffercon III (not verified) Haus-Targaryen Nov 16, 2016 12:57 PM

I hope the Indians catch up to the Chinese and discover the magical power of Bitcoin thwarting currency controls and devaluations.

Silky Johnson's picture

Trading one bad idea for another is not a solution.

And seriously even if BC wasn't a scam, how to do propose they access the blockchain from their dung huts?