"Gold Is Now Effectively Illegal" In India - The Consequences Of Creating A Cashless Society

Tyler Durden's picture

Jayant Bhandari warns "there are clear signs that in a very convoluted way, possession of gold for investment purposes will be made illegal" as he discusses India's attempts to create a cashless society (and consequences of it) and why precious metals and geographical diversification are the most viable options investors around the world, not just India, should be taking.

"The situation is getting worse by the day... people are desperate"

Jayant provides the clearest explanation of where India is (and where it is going) in the brief interview with ProvenAndProbable.com's Maurice Jackson ...

 

As Jayant detailed previously, expect a continuation of new social engineering notifications, each sabotaging wealth-creation, confiscating people’s wealth, and tyrannizing those who refuse to be a part of the herd, in the process destroying the very backbone of the economy and civilization.

There are clear signs that in a very convoluted way, possession of gold for investment purposes will be made illegal. Expect capital controls to follow.

Gold Bullion Is Now Effectively Illegal

Assaults on people’s private property and the integrity of their homes through tax-raids continue.  In a recent notification, government has made it clear that any ownership of jewelry above 500 grams of gold per married woman will be put under the microscopic scrutiny of tax authorities.

Steep taxes and penalties will be imposed on those who cannot prove the source of their gold. In India’s Orwellian new-speak this means that because bullion has not been explicitly mentioned, its ownership will be deemed to be illegal. Courts will do what Modi wants. Huge bribes will have to be paid.

Sane people are of course cleaning up their bank lockers. The secondary consequence of this will be a steep increase in unreported crimes, for people will be afraid of going to the police after a theft, fearing that the tax authorities will then ask questions. At the same time, the gold market has mostly gone underground, and apparently the volume of gold buying has gone up.

The salaried middle class is the consumption class, often heavily indebted. Poor people have limited amounts of gold. The government is merely doing what pleases the majority and their sense of envy, to the detriment of small businesses and savers. Now, the middle class is starting to face problems as well. This will worsen once the the impact of the destruction of small businesses becomes obvious.

India has always had a negative-yielding economy. It has suddenly become even more negative-yielding. Business risk has gone through the roof. Savers will be victimized. It is because of negative yields that Indian savers buy gold. They will buy more going forward.

Sane Indians should stay a step ahead of their rapacious government and the evolving totalitarian society, which are less and less inhibited by any institutions or values in support of liberty.

Conclusion

India will become a police state, likely with the full support of most Indians. Nationalism will be the thread that weaves them together. But it is a fake thread, devoid of any value. Eventually, there will be far too many stresses in the system, whose institutions are already in an advance stage of decay.

India as it exists today is a British creation. With the British now gone for 69 years, it is an entity has less and less reason to exist in its current form. The glue of reason that the British have applied is flaking, and it is doing so rapidly under the catalyst by name of Narendra Modi.

Comment viewing options

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

Sounds like a bad deal.

Twee Surgeon's picture

In India the women seem to regard each other as Sisters, the lady's seem to like to display their wealth on their wrists and thats just the stuff they do not have stashed.

If you are taking a gift to an Indian wedding the Proper gift is Gold, they do not need a Cuisinart.

The girls are going to go ballistic first in India. Pissed off women always results in pissed off men. California will smell the smoke when this shit hits the fan.

Gold is a tradition most ancient in India, now they are playing with fire. Listen for the Bang.

stacking12321's picture

jayant talks some more on this issue on albert lu's power and market report:

https://www.youtube.com/watch?v=Qqb7RtBiLbE&t=1s
[85] Demonetization Drives Gold to $3000 | Jayant Bhandari

worth watching, imho, if you are interested in the situation in india regarding the social background, state corruption, and effects of demonitization.

d2thdr's picture

Look Jayant Bhanderi does not live in India to know how it is on the ground. He is another dyed in the wool leftist from LSE who does not know his arse from his elbow.

The fact is there are minor problems but not like what this Alt left dude is stating.

If you want on the ground reporting please follow @thejaggi on twitter.

Manthong's picture

Modi better be careful…

He is about to make his entire government irrelevant.

lakecity55's picture

OK, if he is successful, his opposition party won't have cash, and his party will be able to grant jobs and such to his supporters, including his Bankster supporters.

 

Manthong's picture

Well, when over half of the army and police forces see their families struggling big-time, the situation can get pretty fluid.

BobEore's picture

I read the latest piece by your recommended source (@theJanni). While I'm very grateful to get a bit of "alternative" coloring to what you describe perhaps accurately as the LSE mindset, one would appear to need to apply at least equal caution to that of the author - who appears to be suffering a severe case of "regime apologititis" so to speak. If you parse...

 

"In a few sentences, this appears to be the grand plan: shifting the BJP to the centre of the political spectrum by focusing on the empowerment of the less fortunate without expanding freebies excessively. He hopes to finance this by making the tax system more efficient and inclusive, making businesses embrace the straighter path while making life easier for them, and focusing on the elimination of wasteful subsidies, but not subsidies themselves"

 

with a minimal amount of skepticism... this "straighter path" to be embraced would seem more likely the direct freeway to hellish state centralism a la the burgeoning universal TERROR STATE which is developing along parallel lines in Turkey as we speak - an is only a matter of an inaugaration or so away from being imported into the heart of the Occidental satrapies of the moneypower so obviously behind this demogoges' "policy tweaking."

And while I can readily embrace the concept of universal naievete on the part of the intended victims of all these concurrent schemes to eliminate private trading and the avoidance of rapacious State command economics - in every country I've witnessed and written about the phenomena in the past two years, the denizens remain blissfully unaware of their peril at the hands of their own "government" - aka the now "natural" neo-liberal amalgam of local political "populist" elite with crony bagmen of offshore corporate interests and radical talmudic controlled "movements."

...it's much harder to believe that a writer from the upper strata of the intelligentsia such as R Jagannathan could be counted equally naive to the dark agenda behind all of this phony "hunting black money" & "war on terror" rhetoric. His piece therefore reads to these eyes as a memorandum of how to curry the favor of one's local elite by bowderlizing the truth in such an efficient manner as to succeed at 'fooling most of the people, most of the time!'

I've watched one (formerly) modern "democracy" descend full blast back into the dark ages thanks to it's government's desire to "monetize" gold and "bring the people into contact with the banking system" already. No matter the warnings which have proceeded from that witnessing to state-sponsored evil, it's pretty clear at this point that lessons learned are few and far between. Each and every country in the world seems destined to go down like 9 pins before the onslaught of monopoly finance capitalism's latest and greatest blitz to sell financial suicide as the greatest thing since sliced soy mozzarella.

Only the fabled "greater fool" could think that this kind of statist expropriation of private wealth "can't happen here." The "DONALD" is going show how it's done in the grand fashion - a take down of the biggest economy on earth is in the cards - and nobodies paying attention!

Twee Surgeon's picture

Let me abbreviate that wall of text for English readers. 'Shits fucked up, I hope Trump is fo real.'

BobEore's picture

I apologize for not being able to suitably edit that "wall of text" - as I was confronted by a note saying "you are not AUTHORIZED TO ACCESS" the edit function.

Nevertheless... your admirable intent to boil thing down to the basics is foiled by the fact that the reference to current Gulagistani political events was but a throwaway line. Even as which, seems to magnetically attract the attention of that EXCEPTIONALIST crowd who live to refute the notion that any life - or any thing at all - exists outside the consciousness and doings of the Merikan imagination.

Each to their own... as they say. I remain firmly of the opinion that my comment addressed doings in a putative "wider world" that most Gulagistanis haven't at this point the foggiest idea of!

d2thdr's picture

While I am not an apologist for any government or for any ideology, there was a Nobel Laureate called Amartya Sen who married into the Rothschild cabal. He and his students from LSE are marxists- culturally and politically. The Modi government has made them irrelevant and they are fuming.

Bhanderi is one of them and he has an axe to grind.

 

While I do not like gold monetisation scheme, the demonetisation of the 2 high value notes has made a big dent in child trafficking, narcotics, smugling operations, also buying of votes in recent low level elections.

While those connected with the Congress government who has considered India their fiefdom since Brits left, they are the ones who are crying hoarse and so are their cronies.

The problem is english language media all over the world is dominated by the Alt-left types. Zerohedge in this aspect has promoted an alt-left writer under the guise of attack on free markets.

Squid-puppets a-go-go's picture

I call total bullshit on you

if pizzagate and its off spin investigations prove anything, it is that child trafficking, narcotics & smugling operations are indeed the modus operandi of the global elite, especially the CIA which seems completely content to throw the american average joe under a bus if it serves the purpose of global domination.

Cashless societies are the plan of the elite, just as are child trafficking rackets

and Tyler is one of the few remaining proponents of free markets. Like free markets as in actually free not the  'free' of NWO speak

go back and nuzzle on Soros' left testicle you twat

SubjectivObject's picture

I believe he was referring specifically to child trafficking in India specifically, with no implication that the same context/circumstance apply elsewhere on the globe.  

Oh regional Indian's picture

No criminal activities OR political thieving have been affected. I'm on the ground and with first hand knowledge.

There is little to no cash availabel for the common man and unlimited cash available to th ecriminal or the politically connected.

All apologists for this move are blind or afraid, bacause it could be coming to them really soon.

India is a dead nation walking unless there is a mass revolt within the next three months.

Watch out for the ides of march, 2017, carefully, worldwide....

We were taken completely by surprise and it can happen anywhere, especially in the US, where financial, economic or general knowledte literacy is amongs the poorest in the world....

sister tika's picture

Excellent comment, Regional Indian. Thanks.

BobEore's picture

Although the import of your last sentence is sure to fall upon the deaf ears of the prevailing EXCEPTIONALIST faction which believes themselves entitled to rule the roost here...

allow me to reinforce the relevance of  that remark .

It can... and will happen in the satrapies of the  fallen western world. Indeed all of the workings out of the blueprint in these benighted Asian countries is in order to refine the product for it's implementation in that "awareness-free" gulag once called the 'first world.'

Greets from an Anatolia time out of mind ORI>

Oh regional Indian's picture

Been a long time brother :-) How are the horses?

Raging Debate's picture

Indian - Best of luck to you and yours. Digital currency such as debit and credit cards were increasing on there own. To me Ok to transition to all digital currency, it is inevitable. However, when the system got wrecked by global banking and buying of politicians, the timing for this push when trust in institutions is at its lowest is stupid. It is going to have horrendous results.

There is no attempt at a global Republic being formed in conjuction with a global currency. As the EU shows when money leads instead of a well thought out Republic first, it creates massive corruption and increasing spirals of violence. Mark of the Beast coming to a country near you within a few mere years now. 

Mr.BlingBling's picture

Agreed, if only because the demonitization was too recent to credibly make assertions about its impact on "child trafficking, narcotics, smugling operations, also buying of votes in recent low level elections."

cool_guy's picture

Jayant is twisting facts and making himself look like anti-establishment guy...what most westerners don't know is that he is an establishment stooge who is anti-Modi because Modi is draining the establishment swamp.......

There is no gold problem in India. Everyone is free to buy it....only if you buy it off the records with untaxed money then there is an issue.

Latitude25's picture

If the gulag state you describe exists in Turkey why are Turks being told to buy gold and how are you able to even publish without being picked up and terminated?

BobEore's picture

Due attention to the long before published "Devious Dervishes of Turkish Banking" could provide a clear answer to your first question -

the critical distinction between the definition of what "buy gold" means in terms of the physical metal that word implies... and the paper imitation which is all that lies at the end of the byzantine maze which I detailed in that series becomes clear to all who dare burden themselves with the exercise.

As for the second part of your query... you must be confusing me with your confreres in the west to suppose I would be eager to share my personal survival strategies with strangers on a public forum.  Indeed it was in order to decisively terminate such inclinations towards suicide that I departed Gulagistan in the first place.

I'm way overdue to update the information acquired since that first exposure of the world class scam that is the "Turkish Model" but have been sidetracked by the irksome necessity of staying alive and at large. Excercise your imagination in whatever way you wish squire.... but don't expect much in the way of results from fishing expeditions.

Fathead Slim's picture
Fathead Slim (not verified) BobEore Dec 19, 2016 12:20 PM

Good catch, especially this:

"it's much harder to believe that a writer from the upper strata of the intelligentsia such as R Jagannathan could be counted equally naive to the dark agenda behind all of this phony "hunting black money" & "war on terror" rhetoric.".

Twee Surgeon's picture

To be honest, the demonetization in India comes as no surprise, they are a very large but very weak and corrupt nation, the greatest ambition of most of them is to get on a plane and emigrate to the west where they will be free of their own obsolete culture, the polite word Refugee is popular now but in truth it describes White People Stalkers, The White people showed up for a while and showed them a few agricultural and steam engine and science and medicine tricks etc, etc,

And it was all good, until they all remembered that they had invented all that shit and the filthy entitled white man had to go.

The third world peoples would not have so much as rice paddies and overlords if it was not for the filthy white devil, pick your continent of choice, the 3rd worlders are the most racist, sexist and nationalistic people on the planet but they will seek out Whitey world with all of their vigor.

Did you ever see an always racist non white refuse to get in a car because it was the magical workings of the white devils, along with the mosquito nets, quinine, antibiotics, aspirin, aircraft, clean running water and a hot shower that's been under their feet for 50,000 years but they did not notice a thing until the filthy white man showed up ?

Cry me a river, brown people, truth is truth so grab it and join the loving race, don't fight the obvious. Or just go home and throw yer dead in the river while fishing for lunch.

Paul Kersey's picture

"The Republic of India is the largest democracy in the world."

It is doubtful that the Indian people voted to have their cash and gold taken away from them. Therefore, a Republic is not a democracy. The United States of America is a republic, but gold confiscation by the government can't happen here. Or can it?

Executive Order 6102 is a United States presidential executive order signed on April 5, 1933, by President Franklin D. Roosevelt "forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States"

First they came for my hundred dollar bills, and I did not speak out—

Then they came for my fifty dollars bills, and I did not speak out—

Then they came for my gold and I did not speak out

Then they came for my guns—and there was no one left to speak for me.

Twee Surgeon's picture

India is neither a Democracy or a Republic, India has a Caste system, if you are born as an Untouchable it is because you have bad Karma and you are fucked forever unless you step on no bugs in this life. The Concept of Karma is inherent in the predominantly Hindu culture, if you are a poor kid when you are born then you must remain so. an Untouchable is free to Pick shit with the chickens, forever and ever, do you think they get a vote ? do you think a fair election exists in India ?

You have the Internet at your fingertips ! WTF ! Democracy ? are you shitting me !? Therefore a Republic is not a Democracy ? No shit Sherlock Holmes.

Is Crack legal in your state. Or even advisable in your condition ?

lakecity55's picture

The caste system is legally outlawed, but it still exists culturally. If your father was a train employee, you will likely be a RR employee. If your dad is a farmer, you will likely remain a farmer. In the US, by contrast, your dad could have worked on the line at Ford, but if you had good grades, you could go to engineering or med school.

If you have ever been there, just look at the billboards and TV. All the actors and models are the light-skinned Aryan class, the Babus and Brahman types. I always find it interesting out in public looking at those ads when everyone around me was darker-skinned.

I have ordered Sharwan to keep the Au we have stashed. I told him where the Webley and its ammo were stashed. He said things are getting wild. He is having trouble getting any cash at all. The black market has become his hangout!

I'm not going back to Bangalore until things sort out a bit.

This is an outrage, an attack on Joe Indian. I know damn well this is a Bankster test case. Like us, all these guys want to do is live peacefully, and make money.

 

 

Oh regional Indian's picture

@twee surgeon above: go fuck your lily white ass with a piston...and suck on a bag of plastic while doing it.... The west's culture and science is a culture of death....

Bendromeda Strain's picture

Man, I hate to drag this one out, but don't you dare talk about a culture of death. The West's culture of death was imported long after the core values were elevated. When did the karma kidz ever have anything but a demonic perversion of the truth?

Sacred cow shit and "bathing" next to bloated gas bag corpses.

https://www.chinasmack.com/filthy-india-photos-chinese-netizen-reactions

lakecity55's picture

The EO by FDR was unconstitutional, but times were desperate and he had the backing of the PTB.

Any trip to a coin show will show you just how many people blew off his EO.

Money is gold, and gold is money. That's why They want all of it.

Ag, not so much; it has too many industrial uses. IMO, one reason why we see the earth's natural ratio so far apart in todays' evaluation.

 

BobEore's picture

Yikes...Oh man!

Wish I'd read your comment previous to replying to the one directed to my attention!

You appear to one of that MAJORITY of the MERIKAN population who have never accessed a passport... for the very good reason that they have NEVER had the desire to leave their vast RANDIAN DUDE RANCH for a visit to the world outside of NOAHIDE LAW RULED USA.

You sir... madam...or whatever lies in between those two states in the now thoroughly gender(amongst many many other things!) confused formerly mighty Republic ...

have no friggin clue about INDIA... or any other place on this benighted planet other than your orwn patch of DAWGPATCH.

As a greater mind than either you or I once said: "We have met the enemy.... and they R US"

best...

the  dreaded other.

East Indian's picture

"If you are taking a gift to an Indian wedding the Proper gift is Gold"

 

Absolutely. Even a 2 gram gold coin is well appreciated.

d2thdr's picture

Look Jayant Bhanderi does not live in India to know how it is on the ground. He is another dyed in the wool leftist from LSE who does not know his arse from his elbow.

The fact is there are minor problems but not like what this Alt left dude is stating.

If you want on the ground reporting please follow @thejaggi on twitter.

Kirk2NCC1701's picture

India was able to resist tens of thousands of British troops, but cannot even try to resist a few hundred Globalist Rottenchild Banksters?

Holy cow!  What a bunch of pathetic pussies.

Pieter Bruegel the Elder's picture

Hasn't corruption been part of India in the past? It must be green pastures for any Rothschild needs :-(.

dark fiber's picture

India did not resist the British troops.  India resisted changing its third world ways and attitude.  "Independence" for Indians was just code for let us go back to our stone age ways.  The article mentions that Modi has the support of the majority,l because he is sticking it to those who are "rich"  regardless of how they got rich.  This is social cannibalism people.  This is what happens when a third world tribal mob is allowed to vote.

dark fiber's picture

Excellent point. Gestapo would have loved a cashless system.  They would have justified it as a way to deal a decisive blow to criminals, the black market and the Jewish conspiracy and all those undermining traditional German values.  Sound familiar?  Ever wonder why the Germans prefer to this day cash transactions over credit cards?  Ever wonder why the Germans  disapprove of  a cashless system so strongly, ESPECIALLY IN EAST GERMANY with their relatively recent Stasi experience?  What kind of an idiot population would accept and even be in favor of such a system voluntarily? 

Care to answer in a non SJW soundbite and name calling fashion?

Of course not.

Paul Kersey's picture

When cash and gold are no longer legal, and money is digital, people are at the mercy of the banks. In other words, when banks fail, bail-ins will follow and there will be no way for depositors to protect themselves from getting looted. One can't withdraw digital money and keep it in a safe.

PT's picture

The only reason they made it illegal was so they could steal it all for themselves.

NoPension's picture

My latest study has been on cashless. The Powers will do it.

In their minds, it fixes too many problems at once. Illegal drug trade, under the table employment, tax avoidance, the zero bound interest problem, cost of printing and stamping currency. We're going cashless. India is the alpha test. They needed a pliant country as a test platform.

The end justifies the means. The human suffering will be justified in their minds, to achieve the outcome. The elite will not go hungry. Just like QE, they get the first crack at the new riches. As it has always been.

The future is here. We've all seen a sci fi movie of the future, where you are issued " credits". I'm surmising eventually, it will be a worldwide system. There will be no safe haven to escape. If your country wishes to trade in the modern world, there will not be a choice.

The technology already exists. They just need to manipulate us to accept it.

sessinpo's picture

Depositors are already at the mercy of banks regardless if it is a cashless society or not.

Once you deposit your currency in the bank, it no longer belongs to you. What you are doing when you make a deposit is giving the bank a loan.. Your account is nothing but an IOU.

Paul Kersey's picture

Currently, we have the ability to pull out our money in cash, before it can be used to save a failing bank. With digital money only, we no longer have that option.

sessinpo's picture

Actually, there is no difference.

Legally, once you put any currency, whether physical or digital, it no longer is controlled by you or owned by you. You account is nothing but an IOU regardless if it is digital or physical.

Let me put it to you this way. Let's say the you put your money into an account. You ry to withdraw your currency, digital or physical and the bank denies you. So you go to the bank and demand to know why you can't withdraw your currency.

The bank can tell you anything you want. They can pull any bullshit out of your ass and wrap you up in excuses or paper work if they like. They'll just make you wait. And don't think that can't happen with some digital account that you have access to online. The only exception would be storing digital currency offline in your own digitial wallet not tied to any institution.

But anything, including your digitial currency safe in your digital wallet can be declared invalid by the government. Nothing is safe with an over powerful government.

One more thing. Bank holidays often catch people by surprise. Not only that, but withdrawing large amounts can cause delays because of the anti terror money laundering acts which means you'er screwed.

Hell, even other institutions can delay currency owed like a casino.

TruthHunter's picture

Without the threat of a run on the bank, what's the incentive NOT to "fail"?

john.smith's picture

I'm totally with you on the follies and dangers of a cashless system. However, your generalizing sweeps against third world populatinos is what earned you your Nazi Salute. "1st world" populations aren't immune from this drive towards banking facism, Sweden is almost there and if people like Larry Summers get their way the US won't be too far behind.

Due North's picture

The very same sentiment prevailed in the tail section of the French debacle in the late 18th century. An oppressed under class given the ability to exact retribution by the various groups scrambling for control of the situation. It didn't matter at that stage if you were a good guy or not; if you had wealth or influence or even put on airs, you had a date with a very sharp, heavy instrument. 

The point I'm trying to make is that once the situation goes all pear shaped, regardless of the actual reasons for its cause, objectivity usually goes out the window. The emotional subjectivity that follows isn't really related to the underclass' third world status or not.

dr kill's picture

I asked the dot head at my local 7-11 what's the 411 from home? He said Modi has the support of the people against the rich and corrupt. Just an anecdote from behind the lines.  I imagine the great unwashed in the USSA will have similar support when President Booker does the same here in 2029. 

SubjectivObject's picture

I'm sure you enjoy the heartless inevitability of that prediction, dr. kill.

Debugas's picture

people around the globe should be looking for an independent form of money for day to day transactions independent of any government.

i am not convinced that gold is the answer, neither is silver