- Starting from last week, almost all talk of black money and terror funding and what not died down and the new focus is on a cashless economy – not so surprising since people have to survive the cashless situation created by Modi and given that there are no arrangements for required within a short time, the only alternative is to minimize damage. What likely was expected to be a bonanza for Fintech companies has now turned into the government’s lifeline.
- While the BJP may dismiss losses and deaths suffered by the common man, there are increasing signs (and they were there all through – no idea why BJP didn’t expect them) that business losses will be staggering. The last week has brought news of massive layoffs, flight of foreign money and entire fortunes wiped out in the stock market. This sort of pain registers on a party that has basically floated to power on money from such very sources.
- SBI head Arundhati Bhattacharya (also being considered for a nomination to the World Bank) has been the weather cock on the demonetisation all through to the point where a lot of ignorant citizens probably thought SBI handles national currency and RBI just prints it or something. Statements endorsing the demonetisation, even as the Banker’s Association was talking of 11 employees dead in 10 days of work. Parroting the government line on plenty of cash being available even as banks and ATMs ran empty on a daily basis in the organization she heads. Today she demanded that banks should be compensated for the losses they suffered…. because of *cough* “RBI’s move”.
- Increasingly, extremely “planted” news points to the RBI and Finance Ministry for the demonetisation. A notable example being (note the language emphasized – this is classic BJP propaganda):
- Prime Minister Narendra Modi is working “more than ten hours a day” just on ensuring that the 8 November money measures announced by him ensure a smooth landing for the economy rather than turbulence. This despite the fact that the plan actually owed its origin to the Reserve Bank of India and the Ministry of Finance, who persuaded the PM to go forward with an idea which will affect (and has affected) over a billion citizens of this country. Prime Minister Modi showed moral courage in coming forward and accepting ownership of the currency swap scheme announced on 8 November, and has since then publicly backed every twist and turn in that policy by the monetary and fiscal authorities. Senior officials say “Prime Minister Modi was presented with the issue in such a way that turning down the scheme was out of the question”. Through the plan, concerned officials wished to “shield those in high positions in banks across the country from the consequences of the crony-oriented lending that they had been doing, specially since 2006”, the year when Narasimha Rao’s liberalisation policy was fully substituted by the UPA into a faux Nehruvian economic policy that combined Fabian socialism with Wall Street ways. “Officials argued that a windfall of up to Rs 550,000 crore would flow to the banks through the enforced extinguishing of currency notes issued by the RBI, and that this would recapitalise several banks that were in effect bankrupt, thereby allowing them to lend again”. The Prime Minister was assured that “steps would be taken to ensure that the common man suffered minimal discomfort” and that “the informal economy would accelerate its absorption into the formal without jobs being affected”… Needless to say, this is the line that will now be taken by the party. Such stories don’t reach journalists via anonymous “senior officials” and “sources”by coincidence. So the strategy seems to be to downplay the fact that Modi announced the demonetisation and to present it as something he was reluctant to do but compelled by other forces covering up Congress actions. He himself is hardworking and has citizen interests in mind. Etc. This is a big gamble to play if he people pointed out as real culprits aren’t seen to suffer some consequence. Thus, I think Jaitley and Urjit Patel are now the scapegoats. In completely unrelated news, around the same time these developments happened, there was a photo of Amit Shah holding a goat, which I found totally hilarious.
Founder at Aam Janata
Vidyut has a keen interest in mass psychology and using it as a lens to understand contemporary politics, social inequality and other dynamics of power within the country. She is also into Linux and internet applications and servers and has sees technology as an important area India lacks security in.
Latest posts by Vidyut (see all)
- Open letter to the Chief Justice of India - April 13, 2019
- Nationwide Protest by NREGA workers #NREGASangharshMorcha - March 2, 2019
- Repression of Activists cannot stop the second Kisan Long March - February 16, 2019