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Jayant Bhandari

Jayant Bhandari

Jayant Bhandari grew up in India. He advises institutional investors on investing in the junior mining industry. He writes on political, economic and cultural issues for several publications. He is a contributing editor of the Liberty magazine. He runs a yearly seminar in Vancouver titled Capitalism & Morality.

Articles by Jayant Bhandari

Post-Covid China

July 3, 2021

Lessons to be Learned from East Asia
The world should take a lesson from how East Asia ran itself in 2020. Japan had no lockdown. None. With an aging population, its death rate has been creeping up for many years. In 2020, it fell by 0.7%, as if Covid-19 was a life-saver.

Daily new cases in Singapore – Covid-19 seems to be pretty much under control there. [PT]

The Prime Minister of Singapore repeatedly appeared on TV to advise people to live normally and not let fear dominate. Taiwan had a total of 623 Covid-19 related deaths [ed. note: there were only 12 until mid-May; in the past few weeks there was a large spike]. Competent bureaucrats in South Korea organized a system to rapidly isolate those with the illness and never had to

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COVID in India

May 25, 2021

Scavengers Out in Full Force
I have just returned from a visit to my family in India. It was hard to escape. To get to the US from India, I needed a COVID test. The Indian government has seriously restricted who can provide COVID testing, treatment, and vaccination. Private doctors and hospitals that are not approved face brutal legal consequences if they provide COVID treatment.

India’s experience with the COVID pandemic was particularly unpleasant… [PT]

Emergency powers were centralized early last year in the hands of the Indian Prime Minister, Narendra Modi. He gave himself direct control over the bureaucrats of the states, making local governments largely impotent and dependent on him.

Getting vaccinated, the Indian way.

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India’s Experiments with COVID-19

April 1, 2021

Shooting from the Hip
[ed. note: the tweets linked below mainly show videos from various lockdown phases]

Reminiscent of his demonetization effort in 2016, on 24th March 2020, Indian Prime Minister Narendra Modi, appeared on TV and declared an immediate nationwide curfew. No one was to be allowed to leave wherever he or she happened to be. All flights, trains (after 167 years of continual operation) and road transportation came to a complete, shrieking halt.

Stranded in India… [PT]

Tens of millions of people — myself included — got stuck wherever they were.
People were not allowed to leave their homes, not even for grocery shopping, the latter of which was amended after a few days when the government realized that people needed to eat.

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Diversity or The Bigotry of Low Expectations

March 19, 2021

Value Traps and Economic Ignorance
A financial analyst is often, or at least should be, more of a psychologist than a financial expert. There are companies that I knew fifteen years ago that had inherent value a multiple of what their stocks were trading at. Today, there continues to be similar upside, except that upside targets and share prices are lower. What went wrong?

A problem reaches the far North faster than climate change can melt all the ice. [PT]

Such companies are often value-traps. A financially astute person might invest in them, hoping that eventually, the market will recognize the value. Unfortunately, some managements do not understand the concept of value-creation or are unfocused, innumerate, or crooked. One must

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A Reddit-Inspired Silver Squeeze?

February 3, 2021

Sticking it to the Man
A certain Reddit group has recently become very popular. For many people, the group has emerged as the savior of humanity. With their collective might, this group has brought a few hedge-funds close to bankruptcy.

GME daily, log and linear view – a brief surge, but quite a painful one for hedge funds that were  short the stock in size. [PT]

Is this group going to save us from the greed and immorality of Wall Street?
The posts on the Reddit group are obscenity-ridden. They have no clue about valuations. They are trying to create short-squeezes, taking outlandish risks with their money, risks much worse than one takes in the casino. Of course, pumpers of all sorts are a part of that group, pumping what they want to

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The India-China Border Issue

July 24, 2020

Deep-Seated Racism and Happy-Smiley Hypocrites
In Delhi, people of the northeastern part of India, who have mongoloid features, are derogatorily called “chinky.” It is not unusual for men in Delhi to stop their cars to proposition a random girl from the northeast for a sexual encounter, assuming her to be “loose.”
Indians’ ignorance about the geography of their own country, their irrationality, superstitions and bigotry have been fertile ground in these days of Covid-19. People from the northeast have faced massive problems based on the assumption that they are carriers of the virus. They have been refused services at shops and have been thrown out by landlords.


Indians from the northeast being denied entry into a shop

The girl from

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The Decline of the Third World

June 23, 2020

A Failure to Integrate Values
The only region in the world that has proactively tried to incorporate western culture in its societies is East Asia — Singapore, Japan, Hong Kong, South Korea, and Taiwan. China, which was a grotesquely oppressed, poor, Third World country not too far in the past, notwithstanding its many struggles today, has furiously tried to copy the West.

Famous Greek philosophers: their thoughts are a cornerstone of Western culture. [PT]

Western culture, which developed organically over at least the two and half millennia, starting from Greco-Roman philosophers, is not easy to duplicate. This culture requires thrift, honesty, hard work, liberty, individuality, dispassionate reason, objective justice, loyalty, honor,

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Hong Kong – Never the Same Again

September 6, 2019

Freedom Rock
Hong Kong ranks among the freest societies in the world. Not only economically, but socially it is a very liberal place. It was marinated in British ways until 1997, much longer than Singapore and other colonies. Then China took it over as a special administered region, which according to the agreement with the UK meant that it was only nominally to be under Chinese control for the next 50 years. It was possibly the only colony in which a vast majority of citizens did not want the British to go.

Hong Kong skyline at night [PT]
Photo credit: Timon Studler

For most of the past 22 years, China has been easy on Hong Kong, despite the fact that the People’s Liberation Army’s garrison headquarters is one of the most visible

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Kashmir: The Constant Conflict

April 25, 2019

Threats of Nuclear War
On February 26, 2019, the Indian Air Force, for the first time since 1971, conducted a raid inside Pakistan, and allegedly hit a terrorist training camp, killing more than 250 terrorists. Pakistan showed photographs of damage to a tree or two. According to Pakistani officials, no one died and no infrastructure was damaged.

Mirage 2000 warplane of the Indian Air Force in medias res. [PT]
Photo credit: hindustantimes.com

It is hard to know the truth, for India did not provide any evidence, nor did Pakistan allow journalists access to the site. Both governments blatantly lie to their citizens, retailing falsehoods so hilarious that even a half-sane person could see through them. But drunk in nationalism, Indians and

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Exaggerated Economic Growth of the Third World

October 17, 2018

Exciting Visions of a Bright Future
Fund Managers, economists and politicians agree on the exciting future they see in the Third World. According to them, the engine of the world’s economic growth has moved from the West to what were once the poverty-stricken societies of the Third World. They feel mushy about the rapid increase in the size of the Middle Class in the Third World, and how poverty is becoming history.

GDP of India vs. UK in 2016 – crossing over.

Just one of the scores of countries that the British once ruled over, India, is now believed to be richer than its colonial master. What used to be colonized countries, believed to have had an inherent problem that prevented them from ever growing intellectually and economically,

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Purchasing Power Parity or Nominal Exchange Rates?

February 27, 2018

Extracting Meaning from PPP
 
“An alternative exchange rate – the purchasing power parity (PPP) conversion factor – is preferred because it reflects differences in price levels for both tradable and non-tradable goods and services and therefore provides a more meaningful comparison of real output.” – the World Bank
 
Headquarters of the World Bank in Washington. We have it on good authority that the business of ending poverty is quite lucrative for its practitioners (not least because employees of multilateral organizations such as the IMF and the World bank have to pay no taxes whatsoever on their income – and the perks certainly don’t end there). A number of long-serving employees of the institution we have met over time have struck us as quite cynical and not particularly convinced

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Japan: It isn’t What the Media Tell You

November 29, 2017

Known for Being Terrible
For the past few decades, Japan has been known for its stagnant economy, falling stock market, and most importantly its terrible demographics.
 
 
A chart of Japan’s much-bewailed demographic horror-show. Most people consider a declining population to be a bad thing due to the implications for assorted state-run pay-as-you-go Ponzi schemes, primarily those related to retirement. It is hard to be sympathetic, since it would have been possible to do something completely different from the outset. Even with respect to existing schemes, we don’t recall that anyone forced politicians to direct funds designated for funding social security claims to alternative uses at the time when these schemes still enjoyed a surfeit of revenues. Of course one has to be sympathetic

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Marc Faber, Freedom of Speech & Capitalism

October 25, 2017

Political Correctness Hampers Honest Debate
What would the world be like today had Europeans never colonized Americas, Africa, the Middle East, Australia, New Zealand, and South Asia?
 

Jayant speaks about Democracy, Welfare and Migration: The West’s March to Self-Destruction [PT]
 

Most of these societies would still not have discovered the wheel. It takes a huge amount of reality-avoidance and ineptitude for outsiders who travel there not to realize that a billion or more people in the Third World still wouldn’t have discovered the wheel. There is absolutely no evidence to suggest that the Third World would have independently found, discovered, or invented even a fraction — if any at all — of the sciences and technologies that exist today.
Without Europeans, lives in what were once

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Canada: Risks of a Parliamentary Democracy

October 5, 2017

A Vulnerable System
Parliamentary democracy is vulnerable to the extremely dangerous possibility that someone with very little voter support can rise to the top layer of government. All one apparently has to do is to be enough of a populist to get elected by ghetto dwellers.
 
Economist and philosopher Hans-Hermann Hoppe dissects democracy in his book Democracy, the God that Failed, which shines a light on the system’s grave deficiencies with respect to guarding liberty. As Hoppe puts it: “Democracy has nothing to do with freedom. Democracy is a soft variant of communism, and rarely in the history of ideas has it been taken for anything else.” At first glance this may strike many people as an exaggeration, but considering the trends that have emerged over the past several decades, it

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India: The Genie of Lawlessness is out of the Bottle

September 20, 2017

Recapitulation (Part XVI, the Last)
Since the announcement of demonetization of Indian currency on 8th November 2016, I have written a large number of articles. The issue is not so much that the Indian Prime Minister, Narendra Modi, is a tyrant and extremely simplistic in his thinking (which he is), or that demonetization and the new sales tax system were horribly ill-conceived (which they were). Time erases all tyrants from the map, and eventually from people’s memory.
 
According to the Global Slavery Index, an estimated 18 million Indians, equivalent to half the total population of Canada, are bonded, modern slaves.
Photo via patrika.com
 

My interest has been mostly to use these events to document the underlying causes of such utter missteps, which technically must be called stupid,

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The Future of the Third World

August 19, 2017

Decolonization
The British Empire was the largest in history. At the end of World War II Britain had to start pulling out from its colonies. A major part of the reason was, ironically, the economic prosperity that had come through industrialization, massive improvements in transportation, and the advent of telecommunications, ethnic and religious respect, freedom of speech, and other liberties offered by the empire.

The colors represent the colonies of various nations in 1945, and the colonial borders of that time – click to enlarge.
 

After the departure of the British — as well as the French, German, Belgians, and other European colonizers — most of the newly “independent” countries suffered rapid decay in their institutions, stagnant economies, massive social strife, and a fall in

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The Myth of India’s Information Technology Industry

July 26, 2017

A Shift in Perception – Indians in Silicon Valley
When I was studying in the UK in early 90s, I was often asked about cows, elephants and snake-charmers on the roads in India.  A shift in public perception— not in the associated reality — was however starting to happen. India would soon become known for its vibrant IT industry.
 
Friends and family are helping students taking university exams with cheating. 2.5 million candidates, many of them with PhDs or post-graduates, recently applied for 6,000 of the lowest level job positions (“grade D”) available in West Bengal, which require no more than an early-stage school education. While India produces the largest number of PhDs, engineers, etc. in the world, the educational system is in reality in a shambles and a complete joke. Most of

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India: The Lunatics Have Taken Over the Asylum

July 21, 2017

Goods and Services Tax, and Gold (Part XV)
Below is a scene from anti-GST protests by traders in the Indian city of Surat. On 1st  July 2017, India changed the way it imposes indirect taxes. As a result, there has been massive chaos around the country. Many businesses are closed for they don’t know what taxes apply to them, or how to do the paperwork. Factories are shut, and businesses are protesting.
 

A massive anti-GST protest in Surat  [PT]
 

Increases in administrative costs have made economics of trading and manufacturing unfavorable for many. Most lack access to accounting and IT skills to implement the new system — India simply does not have that many skilled people. As many as half of all transportation trucks are not operating. The media have “decided” not to cover the

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India: Cash is Back

July 2, 2017

But the Crisis has Deepened and has Become More Entrenched (Part XIV)
 
Nobody for President
On 17th July 2017, India will elect a new President through a vote of the elected representatives. The two real choices are between Ram Nath Kovind and Meira Kumar. Afraid of looking completely ignorant, I asked a few people who Kovind is. No-one knew of him and people only vaguely remembered Ms. Kumar.
 
Adults and juveniles have been arrested in different parts of India for celebrating Pakistan’s victory over India in a recently held cricket match. They have been charged with sedition, a charge that has serious legal ramifications and can potentially send these people to prison for life. With the British gone for 70 years, India’s laws and institutions have lost all mooring to their rational

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India: Why its Attempt to Go Digital Will Fail

May 20, 2017

India Reverts to its Irrational, Tribal Normal (Part XIII)
Over the three years in which Narendra Modi has been in power, his support base has continued to increase. Indian institutions — including the courts and the media — now toe his line.
The President, otherwise a ceremonial rubber-stamp post, but the last obstacle keeping Modi from implementing a police state, comes up for re-election by a vote of the legislative houses in July 2017.  No one should be surprised if a Hindu fanatic is made the next President. India is rapidly entering a new phase.
 
Indian Prime Minister, Narendra Modi on the cover of an Indian magazine in 2002, when he was the Chief Minister of the Indian province of Gujarat. During his reign in Gujarat, a civil-war like situation erupted, which seriously segregated

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India – Is Kashmir Gone?

April 21, 2017

Everything Gets Worse  (Part XII) –  Pakistan vs. India
After 70 years of so-called independence, one has to be a professional victim not to look within oneself for the reasons for starvation, unnatural deaths, utter backwardness, drudgery, disease, and misery in India.
Intellectual capital accumulated in the West over the last 2,500 years — available for free in real-time via the internet — can be downloaded by a passionate learner. In the age of modern technology, another mostly free gift from the West which has significantly leveled the playing field, societies that wanted economic convergence with the West, such as Japan, Korea, Singapore, HK, China, etc., have either achieved it rapidly, or have strongly trended toward it.
 
More than 28,000 children less than six years of age have died in just one province, Madhya Pradesh, over the past year. Because these deaths were due to diseases resulting from malnourishment, the government attributed every single death to disease rather than malnourishment.
Photo credit: Hemender Sharma, India Today
 

Given that Indian prime minister Narendra Modi has been at the helm for only three years, it is hard to blame him in general for any of the above mentioned monstrosities marring daily life in India.

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India: The next Pakistan?

March 23, 2017

India’s Rapid Degradation
This is Part XI of a series of articles (the most recent of which is linked here) in which I have provided regular updates on what started as the demonetization of 86% of India’s currency. The story of demonetization and the ensuing developments were merely a vehicle for me to explore Indian institutions, culture and society.
 
The Modimobile is making the rounds amid a flower shower. [PT]
Photo credit: PTI Photo
 

Tribal cultures face an inherent contradiction. They create poison from within to grow more collectivist, controlling and tyrannical — members of the populace looks for nannies, and they readily find sociopaths to exploit that need. Their lack of organizational skills, their inability to engage in economic calculation and their irrationality lead to massive internal stresses and the ultimate devolution of such an unnatural society.
India finds itself in a situation where it is grasping for more totalitarianism to solve the problems that totalitarianism created. The demonetization exercise was an assertion of India’s underlying tribal and collectivist culture.
 
Demonetization Pain Continues
Cashless ATMs continue to be the new normal in India. In a recent conversation, economist Professor Madhusudan Raj mentioned that as many as 70% of the ATMs in his city are still not operational. The situation in villages and small towns is much worse.

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India: Still the Fastest Growing Large Economy?

March 7, 2017

India’s Currency Ban – Part X
It has now been four months since Narendra Modi declared about 86% of monetary value of currency illegal. Linked here is the last in my series of updates, which was written soon after the deadline to deposit the demonetized currency. Most of the banned currency was eventually deposited, making a mockery of Modi, who had claimed that unaccounted money would not reach the banks.  Perhaps 3% of the cash never reached the banks.
 
A cunning plan unravels
Cartoon by Sandeep Adhwaryu
 

Those living outside India still have the option to return to the country, complete a number of formalities at the airport, and then hope that India’s central bank, the Reserve Bank of India (RBI) will do the conversion.
Many of these people are unfortunately return empty-handed. In India, where stamps, signatures of bureaucrats, file-passing, attesting of documents, etc. go with everything, a lot of submitted paperwork is deemed incomplete by the RBI.
 
India’s narrow money supply M1 has collapsed from 28.42 trillion rupees in September of 2016 to just slightly above 20 trillion rupees in December. This makes recently reported GDP growth data (see further below) particularly dubious – click to enlarge.
 
Modi never intended to hurt Indians who are living abroad, but in the utter chaos of India, he can merely wave his magic wand and hope.

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India: The World’s Fastest Growing Large Economy?

February 2, 2017

Popular Narrative
India has been the world’s favorite country for the last three years. It is believed to have superseded China as the world’s fastest growing large economy. India is expected to grow at 7.5%. Compare that to the mere 6.3% growth that China has “fallen” to.
 
India’s quarterly annualized GDP growth rate since 2008, according to MOSPI (statistics ministry) – click to enlarge.
 

The IMF, the World Bank, and the international media have celebrated this event. Declining commodity prices and other problems in Russia, Brazil and South Africa have damaged the prospects of the BRICs (ex-India) and other emerging markets.
Commodity and currency markets have been very turbulent, and the Arab Spring has not only failed to keep up its pace, it has half-destroyed the Middle East, with fires raging in Syria, Turkey, Libya, etc. Migrant problems in Europe and the uncertain future of the US — as per the current narrative — leave India as the prime candidate to prop up global economic growth.
It seems to be deeply emotionally satisfying to finally see the world’s largest democracy supersede the “communist dictatorship” of China. India’s GDP has also just surpassed that of the UK, its former colonial master. The world is looking toward India as a beacon for the future of humanity. Again, that seems to be the narrative.

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India – On a Downward Spiral

January 23, 2017
India – On a Downward Spiral

India’s Currency Ban – Part IX
India’s Prime Minister Narendra Modi announced on 8th  November 2016 that Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes would no longer be legal tender.
 
Sadly, the despondency visible in the old man’s facial expression has become a widespread phenomenon since the currency ban, particularly among India’s poor
Photo credit: Aayush Goel
 

Here are links to Part-I, Part-II, Part-III, Part-IV, Part-V, Part-VI, Part-VII, and Part-VIII, which not only provide updates on the demonetization saga, but explore and dissect India’s culture and why in this country of 1.34 billion — more than 1 out of every 6 human beings on the planet — so many exist in wretched poverty in this modern age, in an insect-like existence.
 

People storming a bank. If this is not an insect-like existence, what is it?
 
Oppression, exploitation, extreme stress, and the resulting millions of untimely deaths every year possibly make the story of the post-independent India one of the biggest crimes against humanity. Alas,it is getting worse.
As I explored in earlier updates, Indian institutions were designed to be run by the British. With them no longer at the helm, these institutions have mutated over the last 70 years to accommodate the underlying irrationality, tribalism, and superstitions of India. They have slowly but surely crumbled away, decaying and becoming degraded.

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Modi’s Great Leap Forward

January 1, 2017
Modi’s Great Leap Forward

India’s Currency Ban – Part VIII
India’s Prime Minister, Narendra Modi, announced on 8th November 2016 that Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes would no longer be legal tender. Linked are Part-I, Part-II, Part-III, Part-IV, Part-V, Part-VI and Part-VII, which provide updates on the demonetization saga and how Modi is acting as a catalyst to hasten the rapid degradation of India and what remains of its institutions.
 
India’s Pride and Joy
 
Indians are celebrating that their economy has surpassed that of India’s former colonial master, the UK.
 

So-called educated Indians have latched on to the above visual, with full support of the Indian government. It has been shared far and wide in the national media. When you remind them that India’s population is twenty-one times that of the UK and on top of that, the British pound has taken a huge pounding because of Brexit and associated fear in the financial markets, expect to be ignored. You will be seen as anti-Indian.
Given the underlying irrationality and tribalism of India (read earlier updates for more on this), selected numbers are used to rationalize feelings and emotions. You see this everywhere in India: Science — very ironically — is used as a tool to rationalize superstitions and irrationalities.

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Modi’s Fantastic Promises

December 19, 2016
Modi’s Fantastic Promises

India’s Currency Ban, Part VII
This article continues right where Part VI left off (for earlier updates on the demonetization saga see Part-I, Part-II, Part-III, Part-IV, and Part-V).
There is still huge support for Modi even among the poor.  A big carrot is dangled before them, which makes many stay numb to their current suffering.  During his election campaign in 2014, Modi promised to deposit more than Rs 1.5 million (~$22,000) in each poor person’s account once the government had seized all black money.
 
Massive problems have been reported with the new bills. Some have been printed on defective paper and are simply falling apart. The inferior quality of the print job is generally often on the appalling side of deplorable. The new notes are counterfeited with great abandon, quite likely to a much greater extent than they ever were in the past. So much for Modi’s plan to stop counterfeiting.
Photo credit: The Hindu
 

How he arrived at this fantastic figure is anyone’s guess. But given India’s GDP of $1,718 per capita, Modi has promised to deposit 1,300% of annual GDP in individual bank accounts. The total amount would be larger than the entire GDP of the US. Evidently, this does not even remotely add up.
So what is really motivating the anti-corruption feelings of so many Indians — including the salaried middle class —  simply seems to be a mixture of greed and envy.

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India’s Rapid Progression Toward a Police State

December 19, 2016
India’s Rapid Progression Toward a Police State

India’s Currency Ban – Part VI
India’s Prime Minister, Narendra Modi, announced on 8th November 2016 that Rs 500 (~$7.50) and Rs 1,000 (~$15) banknotes would no longer be legal tender. Linked are Part-I, Part-II, Part-III, Part-IV, and Part-V, which provide updates on the demonetization saga and how Modi is acting as a catalyst to hasten the rapid degradation of India and what remains of its institutions.
 
There are undoubtedly many differences between the two gentlemen depicted above, but both appear to have mastered the age-old trick of extending one’s grip on political power by inflicting chaos.
 

As the deadline of 31st  December 2016 approaches, Gresham’s law has been turned upside down. When they needed to be converted, the banned currency notes were trading for a 20% discount to their face value. In the meantime, the discount has disappeared and the banned notes are trading at a premium of 10%. The mafia which deals in the banned notes could not possibly be happier — it promises to be a big supporter of Modi going forward.
 

See if you can spot a rich person here. Rich and connected people, if they really needed to exchange banknotes, used the mafia (which employed millions of poor people to queue at banks), police (who used ID copies of old prisoners) or banks (who simply swapped the currency notes). It is the desperately poor people who have suffered.

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Gold Price Skyrockets in India after Currency Ban – Part V

December 5, 2016
Gold Price Skyrockets in India after Currency Ban – Part V

A Brief Recap
India’s Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes will no longer be legal tender. Linked are Part-I, Part-II, Part-III, and Part-IV, which provide updates on the rapidly encroaching police state
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. Chaos from people’s inability to access the money in their bank accounts is now spreading to the people who have so far been unaffected: the middle class.
This is a completely unnecessary man-made disaster, with the single aim of glorifying  Narendra Modi.
 

Indian prime minister Narendra Modi
Photo credit: Reuters
 

Fracturing Institutions
Several petitions in various courts across India were immediately filed against the central bank, the Reserve Bank of India (RBI), for repudiating its IOU obligation which the currency bills represent, after Modi’s announcement on 8th November.

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Gold Price Skyrockets in India after Currency Ban – Part IV

November 30, 2016
Gold Price Skyrockets in India after Currency Ban – Part IV

A Market Gripped by Fear
The Indian Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes would no longer be legal tender. Linked are Part-I, Part-II and Part-III updates on the rapidly encroaching police state.
The economic and social mess that Modi has created is unprecedented. It will go down in history as an epitome of naivety and arrogance due to Modi’s self-centered desire to increase tax-collection at any cost.
 
Indian jewelry merchant
Photo via indiatimes.com
 

Fear has gripped the bullion market, for one is deemed to be guilty until proven otherwise. People with perfectly legal cash are afraid of cameras recording their purchases and having to pay outrageous bribes. After an adjustment period people will buy more — not less — gold. For now, the gold market has gone mostly underground with the gold price hovering around US$1,700 per ounce. Did Modi want to boost the informal economy?
 
The Cultural and Political Undercurrent
The individual has been reduced to a cog in a big machine that exists in Modi’s imagination. The country is expected to rally behind him, for his glory.  The IMF is going along with Modi, for in their simplistic view, enforcing western-style institutions on India will lead to the replication of western economic development and the rule of law in India.

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