Foxconn Fires 25% Of India Workers As Demonetization Destroys Sales

Tyler Durden's picture

While piecemeal anecdotes and surveys have already exposed the devastation that PM Modi's demonetization plan has had on the Indian economy, tonight we see the first hard evidence as Foxconn has asked 25% of its workforce to leave after the cash ban caused sales to collapse by 50% forcing the company to slash production by half.

Amid social unrest and loss of faith in the nation's currency, India's economy has ground to a halt with its Composite PMI crashing by a record in the last month as demonetization strikes.

And now, as The Economic Times reports, the government’s move to ban Rs 500 and Rs 1,000 notes from November 9 has had a domino effect on the mobile phone industry, where a large majority of mobile phones are bought for less than Rs 5,000 and most of the transactions happen through cash.

Consumer purchase power has been reduced dramatically – mobile phone monthly sales halved to Rs 175-200 crore post demonetisation – and sales revival is not looking up, as was perceived earlier, industry insiders said.

 

Leading local players including Intex, Lava and Karbonn are planning to lay off or bench 10-40% of their workforce, as they cut production to control inventory pile-ups in retail channels with consumers delaying cash purchases after Nov 8 demonetisation sucked out cash from the market.

 

Lava is shutting down its plant – which employs around 5000 people -for a week starting December 12, while others could soon follow, industry insiders said.

 

Foxconn – which makes devices for China’s Xiaomi, Oppo and Gionee, besides Infocus and Nokia – along with Lava, Intex, Karbonn and Micromax account for around 50% of the handsets assembled in India, say experts.

 

“The four plants in Sri City (Andhra Pradesh) are operating at 1.2 million capacity a month, down from 2.5 million that it has,” a senior industry executive aware of Foxconn’s manufacturing details said, asking not to be named. The company has put about 1,700 of its workforce on the bench, or on forced leave for two weeks during which they will get paid but the number of days would be cut from their earned leaves. Benching may continue if production – directly related to consumer demand – does not come to the 2 million a month levels by January, the person added.

Will the workers come back? Will production come back? Well as we noted previously, Modi's move has shaken faith in the foundations

A final philosophical point. Our entire monetary system depends on trust. A banknote is a piece of paper that says the RBI will give the bearer another similar piece of paper, or make an entry in an electronic ledger for that amount. The system works because everybody believes that those pieces of paper will be accepted by everybody else and therefore, money serves as an useful medium of exchange. This move has shaken that trust.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Dubaibanker's picture

About 100 or more have commited suicide or died waiting in banking lines unable to access their own money. that's over 1 billion waiting to access their money for daily acitivities.

97% of all activity in India is in cash with just 2% using electronic means. 

L&T a major infra company wiill fire 14,000.

eBay fired about 100.

Now Foxconn asking 1,700 to stay at home for now.

A Calcutta jute mill fired 1,400.

80% powerlooms have shut.

All wholesale markets across India are shut.

Car sales are down minimum 50%.

At least a million industrial, factory and farm workers have been fired.

All this is post demonetisation.

All due to the megalomania of Hitler Modi.

Holy hand grenade of Antioch's picture
Holy hand grenade of Antioch (not verified) Dubaibanker Dec 11, 2016 9:39 PM
MFL5591's picture

What group of thiefs is behind this cash ban?  Which iof the Wall Street trash?

Dubaibanker's picture

India has it's own Wall street trash but just worse than US being massive open corruption run by a few oligarchs.

But this Modi is a tool of the neo cons. Neo cons love fascism and destroy whatever they touch, broken windows and all that....

Whole country's economy has been destroyed with one swift knock out punch. 

Unless they withdraw this momentous stupidity of a rule of removal of 86% of all legal tender, this collpase will not end and take the lives of thousands and destroy the business of millions. India already was very weak over the last 3-4 years, but this is a death punch.

One sixth of humanity and everyone outside doing business with these 1.25 billion is headed for doomsday! Supply chains worldwide will get impacted whoever buys anything from India.

Imagine that 86% of all money that even one individual holds, is unusable ANYWHERE. What will happen to that individual? How will he pay rent or visit a doctor or use a transport or buy gas or school fees or basic necessities like food? 

Now imagine, happening to 1.25 billion people ALL AT THE SAME TIME and to all companies and to all the Govt offices and to all industry, and to all factories, ALL SIMULTANEOUSLY....

India is destroyed unless this Govt falls and this stupid policy removed before end of Dec.

Good Luck, India, it was nice knowing you!

It will be an achievement if this fascist Hindu ruling party can complete it's entire term ending in May 2019 due to this debilitating self inflicted injury who usually have never completed their entire term in the past whenever they have got power at the centre.

Just reading this article below will give you shudders on the scale of the ongoing collapse.

Headed home: workers abandon building sites after cash crackdown

the doc's picture

These poor workers make Rs 300-500/day per the article. Just a cup of tea costs Rs 10. Add their daily food cost, rent and then need to send about half of the wages home for wife, children and parents and you can imagine how the poor guys will pay extra bus fare for the bank trip. In 2007 trip to India I was shocked how they live on Rs 300-400/day and seems like wages have not gone up while food costs have sky rocketed. The designers of cashless society at the macro level must work for at least a week with these poor workers to see life in the trenches.

Dubaibanker's picture

It is doomsday for over 1.2 billion people. Just 50m and growing less by the day, can say they are happy and some of them do rule India.

Which is why over 100 have killed themselves from army men to fathers of brides to one bride herself since she could not pay dowry in new notes. It is a sad story if you read how these 100 have died. In 2 cases, dead body was lying in and one outside the bank and no one bothered to do anything. One woman was pulling her extremely sik husband down a hospital hallway since he could not walk and she could not get a stretcher due to no one taking old notes.

It is shameful to all humanity what's occuring in India but foreigners are also not bothered yet.

In case of a natural calamity or a bomb attack it impacts only a few, here every single human in India is impacted so the magnitude and the pain is incomprehensible.

4 bank branches have been burnt and stones pelted. Effigies are being burnt. Wholesale market businessmen are shouting anti Modi slogans.

Bankers have been beaten some almost to death. Over 15 bankers have died due to heavy work loads.

The entire nation is at a standstill and no one talks anything but demonetisation, queues and what the impact will be. 

Check FB and you will see hundreds of videos that the media is not covering.

Hitler Modi has asked 10m Indians who work for Indian Railways that they cannot talk negative about demonetisation in writing!

Day before they issued a diktat that all CA's that must be 5-10m citizens or more cannot talk negative but due to the dictatorial outrage it got reversed yesterday.

Over 1 dozen cases have been filed in courts. 

Entire Parliament has been disrupted since this was announced. All bills halted.

This is worse than a banana republic scenario now. At least in a banana republic they still keep passing laws and have no one to fight and argue with in the Parliament since there is no Parliament.

Extremely pained to see what stoppage of all currency can do to an entire nation, that too, as poor as India. This is a live experiment on 1.25 billion gone wrong leading to slow death of all societal systems including humans and animals.

auricle's picture

This move has shaken their trust? WTF? It's destroyed it. The government declares their notes are no longer legal tender. That should induce zero trust. 

 

 

BaBaBouy's picture

How The Fuck Is this Mowdey Dude Getting away with this Disaster ????????

Kprime's picture

Indians are servile idiots who shit in the street. would you like frys with that order?

Oh regional Indian's picture

Kprime, your view is asinine, childish and thoughtless. That said, Dubaibanker above and below is spot in. Things are not looking good at all. At all. Think of every ill effect possible of such a brain-dead move....it's happening. Velocity of money just died. Poof. You cannot ressurect a patient after deliverign such a massive shock to the system. Since even a half educated fool knows that, it's obvious that the people who pulled th elever on this knew it as well. Thus, this is planned genocide of the worst kind. India was the fastest growing EM, but even with any amount of furious back-pedalling now, it cannot be pulled back. India has been struck a body blow by a joker, only of the batman kind. 

Will the masses rise? Doubtful, too cowed down, too divided. Also as per plan. Too indoctrinated, too propagandized, also exactly as per plan. States were giving away free televisions a few years ago to the poor and subsidized or free access to programming. Some of us knew back than that bad things were coming down the pipe. 

Digital payment? Please. 

This is an oligarch's play and I hope they suffer the worst kind of hell for this. .Indian oligarchy is a puppet oligarchy, deeply indebted to their werstern money masters. Tens to hundreds of billions of dollars in loans. And these are the men modi moves with....

Anyways, I'm trying to pull together funding for something radical, novel and world impacting..... if anyone feels called, get in touch or pass it on.... we are all in this together....the US we all understand the truth about, EU is sliding down the tubes, China is clamping down....

If we dont' DO something, we are DONE FOR... on that happy note...cheers :-)

https://drive.google.com/file/d/0B0GqyuCnQ_RsZGhYNWhIVXBhQUE/view

Kprime's picture

I guess ur just full of shit.  In india more people have a mobile phone contract than access to a toilet.

 

https://www.bloomberg.com/news/articles/2014-08-03/india-s-toilet-race-f...

Sunita’s family in the north Indian village of Mukimpur were given their first toilet in February, one of millions being installed by the government to combat disease. She can’t remember the last time anyone used it.

http://www.planetcustodian.com/2015/10/03/7873/indian-villagers-worshipi...

Indian Prime Minister Narendra Modi claims 100% success in eradication of open defecation under Sawach Bharat (Clean India) campaign. Against a target of about six million toilets in rural areas, he claims construction of about nine million in one year. The irony is, rural people in the country are worshiping these newly constructed toilets instead of using them.

http://www.independent.co.uk/news/world/asia/india-rejects-the-toilet-ho...

India's trouble with toilets: Government sanitation drives fail to sway those who believe going outdoors is more wholesome

Millions of Indians like Savita continue to defecate in the open despite having a household toilet, frustrating government hopes to wean more than 600 million of its citizens off the practice and questioning the assumptions behind its mass toilet-building programme.

 

No toilet? Then no bride: Indian government's bizarre new campaign to increase indoor lavatories

Indian families have been instructed to ensure their future son-in-laws can provide an indoor lavatory before marrying off their daughters.

The ‘no toilet, no bride’ campaign has been launched by the government after it emerged that that more people have a mobile phone contract than access to a toilet.

 

Dubaibanker's picture

True.

However, reality is that poor folks do need cash and need a means of transmission. Barter has come back in rural areas including hand written "chits".

What happens next will be tough as more and ore companies start laying off and millions get job less while jobs are nowhere to be found.

This experiment will be epic and countries around the world are noticing.

China is writing article after article how NOT to do demonetisation.

Indian politicians don't have the guts to arrest one of their own because everyone has skeletons in their closet, else 100% of Indian politicians would be in jail. They are the biggest criminals, liars, creators and acceptors of illegal money and should all be erased.

If they get wiped out, only then police, bureaucracy, judges and others will accept less bribes and will allow system to be cleansed.

But that remains a dream and wishful thinking.

FreedomGuy's picture

Spare me the foreigners do not care. It is up to India and Indians to fix this.

Apart from that I do feel sympathy. This is what happens when socialist elites who know better than you run things. It happens everywhere to different degrees.

There is a time to think like free people and say, "Well, we get that there are benefits to no cash, mostly to government. However, we don't want to do it. We want cash. If you do not do what we want, you will find yourself unemployed and your house burned down, if necessary."

I could make good life saving arguments for a maximum speed limit of 25mph everywhere (remember 55?). However, we, the people chose a different risk-benefit ratio.

India crashes, Venezuela starves and Cuba lives in a time warp due to government/s deciding things for the common peasant, prole, man.

Dubaibanker's picture

Since the impact is not on foreigners so they do not care.

Of course, it is upto the Indians to make things right.

Point I was making was that since it does not directly impact foreigners so why would they intervene?

Some foreigners have run after not making payments for food, some have had to leave sooner while travelling, the impact on foreign businesses will only start showing up in the months ahead as supply chains start shutting.

 

spfoo's picture

The consequence is that foreign production wil leave India as the country has become unstable. The transition will be swift. Good luck.

BigWillyStyle87's picture
BigWillyStyle87 (not verified) Dubaibanker Dec 12, 2016 7:31 AM

When you say intervene what exactly do you mean? As long they got some oil, America would love to bring them some democracy.

Dubaibanker's picture

Absolutely correct!

Did you know Americans walked out of supplying arms to India because USA has laws that prohibit paying bribes overseas to secure business?

Hitler Modi approved 3 deals in the last 3 months, exactly 6 days after the so called "surgical strikes" on Pakistan where no one was killed in Pakistan and there is zero evidence that it occured. The French refused to issue a letter to NGO's that no bribes were paid.

I estimate that at least 10-20% of the USD 8.5bn deal was paid to Modi and his intermediaries because in the last 50 years no arms deal has ever been done in India without payment of bribes, so there's that....

Unfortunately, India does not have any oil. India's only utility to America is to be America's puppet in the anti China stage show which Modi is toeing the line quite well like an idiot and has created problems with every single neighbour in the short span of time that he has been there.

FreedomGuy's picture

Okay. I can run with that. I do think foreigners care in the sense decent people hate to see tragedies anywhere, economic or natural. However, "caring" is also a leftist word for "more money".

The world is interconnected economically and many Indians live in the USA and West. It will be interesting to see how this works because there are other calls to do the same even here in the West.

buttmint's picture

+1,000 DubaiBanker

Mother India is tough, but this Modi Clown pulled off this cashless attempt of his WITHOUT consulting his cabinet. No one knew. Now we are getting into the realm of Unintended Consequences, which know no bounds.

A whimsical action is unraveling many lives and industries. Yes, very stupid. Soon, prayer will be all that is left.

Indians are VERY TOLERANT---but like all, once pushed past the breaking point---no return.

Conflagration.

Bete Noire's picture

India has more gold in citizens hands per capita than anyone else on the planet, and now the 'tax collectors' have mandate to go door to door seizing any and all above what is 'inherited'........now who do you think is behind it?

trackwhack's picture

LOL? Who is behind it? Well, your ignorance is. Cant say more.

Stroke's picture

2 weeks & 4 days.....Always the ones....

Wile-E-Coyote's picture

The gov won't get anywhere near the peoples Gold, not a chance, there has been a terrible increase in boating accidents.

zeronetwork's picture

Modi was fucking with Pakistan because Modi is a stupid tea vendor and has no idea how things work. In return ISI messed up their brains. This is how ISI works. An Indian told me so.

Kirk2NCC1701's picture

A group that's astute enough to know how fragile any country really is. They are called Globalist Bankers.  They are also known by other, less polite names.

Gold smiths and money lenders have known the following Principles for centuries, which propelled them to the top of the financial ladder:

1. Control its money supply, and you can make it dance to any tune.  No matter who is in 'power' -- be it king, PM or president.

2. Lend to both sides of a war.  The losing country then pays the winner's debts, from taxes.  So does the winner, but not as much.

3. Buy low.  The ultimate Low is when there's blood in the streets.  Especially if you financed the guys who caused it.

4. It makes no difference if a country goes into monstrous debt, due to excessive militarism (guns) or socialism (butter). Debt is debt.  And Debt = Control.  

     -->  If a country is prone to want to go Socialist (e.g. Venezuela), support that.  If it's prone to go "Patriotic"/militaristic (US), support that too.  The sheeple are too dumb to realize this, and will fight each other about the virtues of socialism or militarism. Too funny.

 

Takeaction2's picture
Takeaction2 (not verified) Dubaibanker Dec 11, 2016 9:41 PM

I wonder if "They" are just waiting for Trump to get in...and then they let the flood gates RIP.  At this point....we have lived in this Bizarro World for almost 10 years now.  What's next? Impossible to call.  I am lost when it comes to the financial future of this country.  Back to Edit...1.2million phones a month?  Who the fuck needs a new phone...especially in the U.S.  And there will be a glut of used phones on the market when this person and the like are cut off.

https://www.youtube.com/watch?v=tpAOwJvTOio

holgerdanske's picture

the world is coing off the rails. Take those politicians out who cause this

the doc's picture

A friend just returned from Indian trip. Maximum rupees he was allowed to get at the Delhi airport was 4,000 enough for 2 taxi rides. Tourists not happy.

Dubaibanker's picture

Tourists are leaving in droves. they spend their entire day or days standing in lines and then get a tiny amount.

There have been reports in Jaipur in North India of tourists using guitars and doing street singing and busking just to collect a few bucks to eat soemthing.

Goa is deserted. Odisha temples people have left because after 2-3 days all came to a standstill and all tourist activities stopped since autos and taxis and entry points, all use cash. Cash is now premium.

Even Taj Mahal has seen more than 50% drop over night, now it maybe even 80% decline.

Non Resident Indians returning have had their cash confiscated at airports.

Tourists are lucky their cash doesn't get confiscated but neither can they pay or see India easily. Cash is impossible to find since Nov 9, 2016.

Food Loaf Junkie's picture

Do transactions have to be in Rupee's?  Is it legal to purchase or pay in dollars?  You would need a lot of ones I suppose.

Skateboarder's picture

I have been in India on vacation the last couple of months, and let me throw down some on-the-ground perspective.

- Legality aside, 99%+ of Indians will not accept dollars in cash transactions. The country has touristy places, yes, but it is not an airport or some tourist paradise as a whole. Perhaps in the past some would have taken dollars and converted them in the bank, but now EVERYONE has to stand in line at a bank, and it is further reason to not accept dollars. You either have small notes, have 2K notes and spend them wisely at places that get you change, or you're screwed.

- We went to several banks in Kerala, needing cash to pay for cab rides and hotels that only take cash. Thomas Cook was not doing forex. SBI and ICICI were not doing forex. Muthoot Finance (scumbags who would love your dollars) was not doing forex. One of the dudes selling fridge magnets took our USD and gave us INR. If as a tourist you don't luckily run into these kinds of people, you're screwed.

- Old 500s are still being used as a medium of exchange in many places. I was unfortunate to draw 10K INR in old 500s on the evening of Nov 8th. Before my flight that evening, life was normal. When I got off the flight, I was holding on to useless pieces of paper (at least at that time). Since then I have found that cab drivers, hotels, and many other small-operators will take your 500s because there is no other way to get by until the 30th of Dec. One liquor store saved my ass by taking old 500s when I bought some beer during the first week after demon-etization. This is a game of order of magnitudes. Removing one order of magnitude is death to a currency. There aren't enough 100s to go around, and change for a 2K will only be provided given that you generate enough business for someone. If you bought something for 1200-1500INR paying with a 2K note, you will likely get change back. If you want to buy something for 400INR, tough luck. The new 500s were not introduced at the same time as the new 2K, hence the chaos. People will suffer until there is enough of the new 500 in circulation, and life will go back to 'normal' in due time.

- PayTM is being shoved on to the people as the new way forward. Every newspaper has bigass pront page advertisements for PayTM and "freecharge" (for mobile recharge). PayTM, heavily invested by TATA, ICICI, and now at 40% ownership by Alibaba, had an incredible amount to gain from all of this:

http://economictimes.indiatimes.com/topic/Paytm

They introduced a call-to-pay system where you can pay each other by calling a toll-free line and entering the other party's mobile number to make a payment. Internet connection no longer necessary. From all of this, it is quite evident that the globalist go-cashless experiment is in full force in India. They needed a big enough experimental ground to test out public respone (face it, it's globally a shut-up-and-take-it-up-the-ass situation for all people) and gather data, and they struck the goldmine. I knew the second I heard on Nov 8. that it was the push for cashless.

- The support for Modi is incredible - so many people buy the whole black money story. Yeah, if there's so much in black, how has most of it been converted back into white with most of the deposits coming from people standing in line? Show me where the black cash is. It's all in PMs, real estate, land, and in foreign accounts.

- There has been no rioting. I've seen a few major cities (Bangalore being the biggest) and a few small towns and villages. Lines everywhere in big cities, but no riots. People are being patient, and life is going on. There is indeed much suffering, but somehow people are getting by. The best places to draw cash has been in ATMs between big cities, in small towns on the interconnecting highways. Wells Fargo charges me $5 per non-WF ATM transaction on the debit card. I used my WF credit card and they charge an extra $10 as the cash advance interest. $15 (1000INR) on top of $30 (2000INR) to draw that 2K note... but what choice do I have.

- As a tourist, you need cash in India to pay for cab rides. it's been incredibly tough for tourists. Recharging your phone, buying a ticket online, or whatever else requires an Indian bank account or debit card. Foreign cards are not accepted for these payments, so cash is your only option. Getting anywhere between major cities is usually by hiring a private taxi (for those of us fortunate enough to afford these things), and they only take cash (4K - 10K depending on duration and difficulty of the ride). You can get by eating at places that card, staying at hotels that take card, and taking Uber everywhere in big cities. Once you leave the big city, it's cash cash cash, and if you don't got it, you are screwed.

----

Dubaibanker is right in many ways in this thread from the gloom-perspective, and so is knownothing from the realistict perspective. The truth is that Indians have been very patient with this drastic change. Things will get significantly better when new 500s, and enough of them are re-introduced into the system, but until then everything has taken a hit and will continue to. The ATM/bank lines have eased but are still quite disastrous for commoners. When you provide services in India as a poor or lower-middle class person, your life is cash, your cash is directly related to the time you spend doing business, and that business halting for a day or many while you stand in line at the bank is a heavy toll on your earnings and your life.

Hope that helps.

Best,
Skateboarder

buttmint's picture

+1,000 SkateBoarder----god speed and thanks for fine boots on the ground reporting!

mkkby's picture

Wonderful tourist location.  Here's the sales pitch...

Swim in a river with feces and corpses floating by.  Stand in line all day for 7 bucks worth of cash.  Eat rancid food and catch a variety of diseases.  Seat like a pig in 100% humidify, with over a billion people who never bathe.  Lucky me -- I lost a limb to gangrene.

India, it's everywhere you want to be.

knownothing's picture

Great update sir. Thank you for it. I think those of us who live here have mixed feelings. Part of me thinks its awesome. Kerala and Karnataka are terribly corrupt states and its great to see at least some corrupt city and state officlals being arrested. It feels like progress. However, part of me worries that poor people will suffer until the cash supply stabilizes. Modi himself has taken a big gamble on this. Let us see where the country goes. I hope you had a good vacation.

Kirk2NCC1701's picture

re "Indians have been very patient with this drastic change".

How polite you are.  There are other words, that describes them with less make-up.  E.g. Sheeple. Vassals, pacifist fools.  But people like that prefer not to have their self-image challenged. Who does, eh?

East Indian's picture

In cities it is easy to change dollars into rupees. Generally only licensed money changers accept dollars. A street vendor may tempt you with higher exchange rates, but most foreigners are smart enought to avoid that. 

 

An Indian citizen can keep up to $500 legally. 

 

A foreigner can pay in rupees or in dollars; however, dollar rates are a rip-off - at least 5 times that of rupee rates. So, nobody prefers to pay in dollars. Hotels, etc can accept dollars if they are licensed for that. Generally dollars are not that readily accepted outside the tourist circuits - Delhi, Jaipur, Agra, Goa, etc, mainly because people are not familiar, and because our fellows have circulated counterfeit dollars. 

 

bloostar's picture

I'm in Mumbai at moment. Cards are ok in bigger shops and hotels however I'm struggling to find cash just to give the cleaner a small tip each day. Not sure how this helps the poor and underpaid workers as they don't carry card machines around with them! In 2.5 weeks I've managed to get just 4000 rupees from an ATM machine and still can't spend as there is no change. Bit of a farce really!

buttmint's picture

...only one safe zone (for a short spell) are the fine Indian Hospitals catering to the Medical Tourism trade. There, the money limits are not in force, but are ringfenced like Gestapo. Many Indians now in Thailand that I chat with daily. They are NOT going back to what could easily become certain death caught at the wrong time. At the wrong place.

Much daily life in India is "happenstance."

Please excuse the falang posters who have never departed North America. North Americans wrongly project the American Experience onto the continent of India. No way. The DENSITY of humanity in India is stunning. Imagine the density of Los Angelese 5xs what it is currently...now ride a tuk-tuk or small Hero Honda montorbike all the way to New York City with the same density every kilometer of your travels. There is no "Kansas" in India. No wide open spaces. People live everywhere.

India is a must-visit place. Try to spend 6-12 months, that is, if the current upheavel is given a chance to settle down. Viloence is next. By Modi's actions of stopping cash flows, he really shut off all BLOOD circulation in the patient, then rocks back on his heels "...how did this happen?" Modi has done much good, but this CashLess attempt is very stupid.

 

Ever witness a crown fire? A huge forest fire? This is the next step for Mother India....

Orly's picture

I have a lot of contact with Indians.  They think this Modi is wonderful  They believe the fact that he paid a hundred million dollars for his daughter's wedding proves that he must be some kind of genius and he is so rich that he wouldn't possibly try to rip them of.

Get those people, hiding their "black money," they say.  How dare they expect me to pay their taxes for them.

They fail to realise how disruptive this is going to be and don't want to believe that this move may have been the height of incompetence.  They think it is the greatest thing since sliced bread.

:/

Dubaibanker's picture

These people you speak to probably have jobs, live overseas, have nice cars, some savings and a degree. This is the classic definition of a blind follower of Modi. they have a special word in India for that "bhakt" (meaning a follower). Just google it and you will see a lot of memes as well on FB and Twitter. These people are cowards, insulting, use bad language and cnanot hold an intellligent conversation and make an ad hominem attack instantly which is a hall mark of dolts, entitled losers and criminals combined.

Modi is like a pied piper selling a dream of Nirvana.

All these followrs do not understand that real people are dying, real peolpe are losing jobs and 99.5% of India is not like them. The ones who have FB or happily type away here or anywhere on the internet are just 0.5% or less of India.

Most of such people have a problem of myopia and lack of empathy due to homogenity. They move with same people, study with same people, marry same people so they do not feel the pain of 99.5% of the rest which is truly sad.

3 weddings of BJP party members have happened including a Cabinet Minister (who used 50 private jets) that cost anywhere from USD 10m to USD 73m in the last 1 monthw which is a tight slap on the face of all Indian people because no one is allowed to access more than USD 3,700 for a wedding in India. This shows total fascism and oligarchy and spitting on the face of all people. 

Taxes are a way of life and Govt has an absolute responsibility of providing basic services in return to all. However, in India, the problems are of such magnitude that the Govt is just barely surviving and preventing a colalpse for over 20 years now.

The last time a decent hospital or a decent school or a university or a major factory was built in India was more than 25 years ago and prior.

Govt is not ineffective but the system is deeply broken and irreparable.

These blind followers refuse to see beyond their puny jobs or businesses. Wish they could. Indians have become insulated to themselves and from each other. If you ever visit Delhi or Mumbai, have a look for yourself, almost 80% of all houses except the very poor live in cages. Which is sad because no one is safe there. All houses and paartments and even gated areas have such massive iron doors (at homes they are called grills on windows and outdoors are called gates for colonies).

Even an idiot knows that tax evaded money is never kept in one place or in cash. It must be moved constantly because of the fear of being captured. Hence, 95% of all black money of India is either overseas or in real estate or gold or valuable items or in USD so why the attack on INR cash?

Because: all these illiterates are running the nation. Even last time in 1978 when demonetisation was done in India, it was a BJP party led by a urine drinking PM called Morarji Desai.

India is typically run by idiots but even by those standards, the current rulers have set a new becnhmark of idioticity and destruction at the same time.

Trust me, after 1 year, India will not be the same (unless this policy is reversed immediately).

Orly's picture

Without saying too much, I can say that the main person is a physician and most of the people working in the office are Indian or Arab.  They left India long ago, were from a magistrate's family and recently sold all their Indian holdings.

As American citizens, most people in the office voted for Hillary Clinton.

__________

It seems that if the problem were "black money," there should be government exchanges, or co-ops, where citizens can come and trade their wares and pay their taxes at the same time.

No receipt, no proper sale.  Confiscation or some sort of recompense may be considered at that time.  If one can prove they paid the tax, leave them alone.

 

Dubaibanker's picture

Thanks. these are well to do people who can sit back and make commentary on what's happenign without having any impact whatseoevr on themselves.

What you say occurs in movies or in a perfect world.

India is not perfect nor is another ocuntry. Some tax leakage is expected everywhere. Even in US, Apple and all the Top 500 companies do not pay any taxes, where is the fight back? People just rollover and let it happen.

India is very diverse and very complex. Since 97% or more are poor hence authoritarian rule doesnt work and shouldn;t happen.

All Indians who are abroad are selling Indian holdings but now it is too late unless they pay full taxes. None of such people paid taxes in the past but when it comes to equalize, they simply choose to leave and run which again shows how much people are not willing to help the society but I do agree the problem is very acute and almost insolvable in India.

Imagine so many people are leaving India because of the fear of tax harassment and corruption.

What destroys India today is corruption and over population. In front of this, no logic works, unfortunately and things cannot be changed unless you kill half the population and restart.

knownothing's picture

I live in Bangalore. The facts you mentioned are mostly right. There is certainly a drop in demand leading to job losses in some sectors. No disagreement there. That part is certainly sad to see, but if we all truly believe in the free market, then that is part of parcel of it. 

However, on the flip side, there is no rioting (as far as I know and observe) or a lack of essential supplies (food, fuel, etc). In that sense, life is moving on and people are adapting. Wholesale markets are not shut, but there is a reduction in demand certainly and I am thinking this is because people are just so shocked that they are holding back spending for now. Hopefully that demand will come back in the future.

Cash availability is gradually returning to normal with the Rs. 500 note making its way to the banks and some ATMs, although not all yet. Those who are adapting to electronic transactions are certainly doing ok and Bangalore is probably less affected.

Yes, about 100 or so folks have died in this exercise. But some of the attribution of deaths this demonetisation exercise are dubious. But I won't argue on this - yes, some people hard a heart attack waiting to get money or others were elderly folk too stubborn to let their sons or daughters help. 1-2 tragic cases were certainly reported and that is sad too.

On balance though, people seem to be ok that Modi has done this. Whether we disagree here or not is irrelevant. It has happened and now we shall see. There has not been any stock or bond market meltdown. On the contrary, people are preparing for a big bull run. Not sure if that is rational, but 7 years of reading ZH has told me that I've been wrong more than right based on what I've read here. So let's see what happens...sky is certainly not falling, but yes, there have been some tragic consequences which will all be forgotten tomorrow. 

 

Kprime's picture

and you love paying taxes. yours are all paid in advance and you wish the .gov would increase taxes by 50% each year because servitude makes you a holy person.  If you could get an invitation to .govs palace you would love to suck the dick of every billionaire .gov employee you could worship. oh yah, you would suck the dick of all their holy bulls too.  India is a clean and holy place, umm could you lick the shit off my hand, I wiped my ass the indian way and can't find any water.

trackwhack's picture

Trust me, after 1 year, India will not be the same (unless this policy is reversed immediately).

 

Yea OK. We trust you. We shall reverse it immediately. BTW, how much of your stash did you lose?

knownothing's picture

I decided to be more mellow in my response above but the "sky is falling, India is imploding, OMG we're all going to die" crowd is quite active here. You sir are certainly more direct and I admire you for it.

trackwhack's picture

I am just stunned by the level of ignorance on a forum like ZH that likes to claim superior insight.

When they cannot differentiate between a currency replacement drive and a ban on cash, what can one say.

And we have cutlets coming up with numbers out of their assholes like L&T firing 14,000 due to demonitization. And another cutlet backing him up citing he is an old credible member on ZH.

But my favourite so far is that IT guuys are going from home to home seizing gold in India. In India, of all places, just try seizing our gold, will ya?

Bunch of clowns who are clueless at best calling the rest of the world sheep.

East Indian's picture

When the govt has withdrawn 14 trillion in old notes, but issued only 3 trillion in new notes, and encourages people to move on to cashless economy, it is an indirect ban on cash. 

 

I also think seizing gold from Indian households is a difficult task, but the way people have meekly accepted the demonetization forces me to revise that. Indians are more sheeple than most. 

trackwhack's picture

They havent taken your wealth. You are free to spend it on anything you want. It has to be an electronic transaction if large money is involved.

For eg if you are buying a 100 kgs of gold, please tell us where the fuck you got that much cash from.

So stop giving us BS about Cashless.

Kirk2NCC1701's picture

Hey, but their Call Centers work, and they still supply US with countless visa students, who lever that up into H1B work visas and jobs in US high tech (mostly West Coast).

There might be 1,300,000,000 of them over there, but over here they are still considered a "minority" that needs/deserves special hiring status.  Or they did, under Clinton and Obama.  No wonder they vote Democrat on the West Coast.  Duh!