Demonetisation by GoI created a hitherto unknown chaotic situation. People are suffering. Corporates and the communal outfits who divide the people for the benefit of corporates are happy with it. It is a deliberate attempt by the sinking finance capital system governed by corporates to solve the crisis it faces at the cost of the mass of the people. Unless it is effectively countered by moving over to a new crisis free system through a well planned creative intervention by the people, they will be subjected to unprecedented sufferings in the days to come.
== The declared objectives of demonetisation of 500 & 1000 rupee currencies are laudable.
..... If they could be attained people would have been benefited too.
..... But, due to lack of proper preparation and erraneous implementation strategy both of which due to malicious intensions, the measure created havoc in the lives of the people.
== Declared objectives are not achieved.
== The parameters for assessing any administrative measure are not the declared objectives, but, the the gains and losses that are practically available.
The real effects :
..... Bank chests are full with the money that otherwise would have remained with the people helping them transacting their daily necessities. .....10 lakh crores rupees worth currency out of the total 14.27 lakhs are now in the banks. Only around 2 lakhs crores are given out in exchange. ..... People are forced to manage their daily affairs, initially with just 1/8th and now after three weeks with just 1/4th of the currency that existed before the demonetisation.
.... People are running short of cash even when they hold adequate bank balance.
.... The corporate entities are not facing shortage of cash and they are not in the queue for exchanging note or for withdrawing cash.
.... The corporates are in queue for availing loan from the massive deposits of the demonitised currency made by the people.
.... The bad debts of banks due from corporates are being written off.
.... Banks got back their lending capacity to service the corporates with further round of 'Bad Debts'
.... The corporates gets another round of credit through the fresh loans that could well be not returned.
.... Those corporates who gain out of this measure, siphon such loans to tax havens along with the wealth they looted from the people and the public assets.
.... The corporates thus invest the outflown wealth of the nation in global projects and share markets strengthening their position with respect to the global finance capital that is being accumulated.
.... The common people, the middle class and even the govt servants (except few who are corrupt) struggle to meet their daily needs without adequate currency.
..... Trading and distribution of commodities of all sorts are considerably reduced.
..... Production of goods including the essential ones are disrupted.
..... Workers are not getting their due wages
..... No takers for the products of farmers and self employed petty producers and even MSMEs.
..... No sales at small retail trading outlets.
..... Only super-hyper markets and malls are surviving with their online banking facilities
..... The economy is in shambles
.... People lost the confidence in the Monetary System prevailing in the country due to their sufferings due to the failure to exchange the withdrawn currencies with valid ones.
.... People lost their faith in the Banking System due to the inability of the banks to meet their demand in withdrawing their own deposits.
.... Reserve bank lost its credibility through its failure to honour its commitment to the people that it undertakes to pay the bearer the declared sum on the currency.
.... The Govt of India stand discredited due to its failure to honour the guarantee given by it to the people in respect of the currencies.
..... The already deprived people are advised by the GoI to cut down their consumption for the benefit of the economy and the nation at large.
..... The people are advised to bear with the ill effects for a pretty long period, still being extended in every subsequent delaration.
..... The now anticipated three months suffering, as declared by the GoI, though actually limited to it, itself will create havoc for the economy for many more years to come due to loss of production, distribution and consumption, happening due to this illogical demonetisation measure.
..... The life of the people will be miserable due to the attendant repercussions.
..... No problem for the corporates ..... They are not toched by the Govt. ..... No advice of austerity for them too.
..... The corporates are given fresh round of loans (The Rs. 6000 Crores loan for Adani for opening Mines in Australia is only an example)
..... Just on completion of one week from the day of demonetisation Rs. 7016 Crores of bad debts were written off by the banks to clear their NPA accounts. (This Rs. 7016 crores included Rs. 1600 crores of Vijay Mallya too)
..... The GoI failed to honour its commitment to bring back the swiss bank deposits of black money owned by Indians
..... The maximum limit of Rs. 75,000 for Liberalised Remittance Scheme (LRS) abroad at the end of UPA II was increased to Rs.1,25,000 by the BJP regime immediately after its taking over in June, 2014 and to Rs.2,50,000 in the next year ie. 2015. This is clearly a facilitation for siphoning of national wealth abroad that leads to creation of black money.
..... Increase of counterfeit notes and growth of extremism, terrorism and their nefarious activities using the counterfeit note brought across the border are the result of lethargy and failure on the part of the Govt machinery and often policy deviations, like privatisation of currency printing, especially abroad.
..... Corruption, black money, swindling and loot of public assets are aided by the Governmental policies, lethargy of the concerned monitoring machinery and often abetment of the political leadership. Failure of the banks to recover the loans given to the corporates is a clear case of siphoning the public money to the corporates. Tax concessions to the tune of Rs 5 Lakhs crores per year by the Govt is another case of appeasement of corporates. The handing over of PSUs, mines, oil fields, coal fields, spectrum and such other assets owned by the people to the corporates are few of the other examples.
== In order to solve the problems arising out of the bankruptcy of the banking system, depletion of the treasury etc through the above measures, people are put to untold sufferings.
== Clearly the beneficiaries of these gamut of policies are the corporates.
== The real objectives of demonetisation is, thus established, not curbing the menace of counterfeit notes, extremism, terrorism, black money or corruption but is solving the crisis in the financial system and helping the corporates.
..... Even on the face of the demonetisation drive, conterfeit notes of Rs.2000 currency is surfacing across the country. Black money in the form of new currency is also surfacing massively across the country. Terrorist activities and attacks are also happening repeatedly.
== People are advised to adjust to the inconveniences in the larger interest of the economy and the nation. This is something the people of India are used to expereience right from the days of independence. Nothing new in it, especially coming from a discredited GoI, Reserve Bank and Banking System.
..... Indian economy is landed in a chaotic situation by the demonetisation move of the GoI
..... The words of an economist comparing the demonetisation to the tyre of a fast moving automobile being blasted by firing at it is factual..
..... Plight of the people can seldom be worse than this
..... None other than the Hon. PM Mr. Modi could harm the people than this.
..... More over his advise to solve the problems and the chaotic situation by sharing the difficulties and available resources and the available currency till the problems are over with the changeover to a cashless economy is wrose than the problem itself. Cash less economy is impractical in a back ward economy like that of India for a pretty long time.
== Are there no way out for the people, other than what is advised by the Hon. PM ?
Sure, there is the peoples alternative policy frame work and the peoples' interventions.
..... The following peoples' alternative policy frame work will benefit the people, the economy and the nation in the short, medium and long run.
..... The people, if they take the initiative to create a new society, can find the solution to the chaotic situation with lesser troubles.
..... The ways and means for creating a new society is given below. (Sufferings on account of these initiatives to create the new sociey is lesser than the measures advised by Mr. Modi in his 'Man Ki Baat' discourse for November, 2016 and most of which are already created by the demonetisation measures)
== Program for creating a new Peoples' Democratic Society.
..... People shall organise themselves into Self Governing Communities.
..... People in each SGC shall produce maximum amount of daily necessities locally.
..... They shall put to use all the local resources to the maximum extent.
..... Workers, earning elsewhere, shall purchase their daily needs by paying the farmers and self entrepreneurs and other petty producers
..... Farmers, self entrepreneurs and other petty producers shall exchange their products within the SGS to the maximum extent possible
..... Establish the network of such Self Governing Communities online.
.... Essentials of life that are not available locally may be sourced direct from producing SGC over the network
.... Surplus produces of SGCs may be exchanged among the SGCs for own necessities or in absence sold to the other SGCs online.
.... Boycot super markets, hyper markets and malls which are financial capital outfits
..... Avoid purchasing durables and other articles or luxury consumption till the establishment of new society.
..... Avoid travel till the chaotic situation is over and noralcy restored.
..... Practice austerity. Practice barter system. Avoid trade using cash till normalcy is restored.
..... Whatever money is available shall be used maximum within the SGC through a co-operative system.
== Effects and Repercussions :
== Unlike the effect of measures advised by the Hon PM .....
.... Lives of the people shall improve in all aspects
.... Unity of labouring classes, the workers, the farmers, the self entrepreneurs and such other petty producers shall materialise.
..... Corporate market shall shrink to the extent of expansion of network of SGCs.
..... Even a marginal fall in trade will worsen the already crisis ridden corporate market
..... Tax receipts by the state shall come down, with the result, it shall not be able to help the corporates as before.
..... Share market shall crumble, with the fall in trade in the corporate driven market
..... Banks shall become bankrupt, with the collapse of corporate trade and the share market.
..... Monetary system and the Reserve Bank will be in crisis
..... The state that is controlled by finance capital will be in crisis
The tasks that shall be taken up by the SGCs
..... Re-engineer the management system and establish a new system of participatory democratic societal management under the joint initiative of working class, farmers and self entrepreneurs.
..... The crumbling Public Sector and Corporate Enterprises shall be taken over by the co-operatives of respective workers.
..... Assimilate technology in all areas.
..... For technology assimilation, use only Free Software and Free Technologies built on them.
..... Use the available hardware and substitute the use of hardware with software and network functions to the maximum extent possible and gradually acquire hardware production capability.
..... Establish free information communication network with the use of own network resources using Free Software
..... Develop language communication techniques and improve the interaction between different language communities.
..... Make available knowledge for every one freely.
..... Re-engineer the education system based on vernacular and interaction with other languages.
..... Every able bodied, irrespective of gender, to share manual and mental labour of all sorts including farming, cleaning and cooking, through joint farming, joint kitchens, joint restaurants etc, thereby relieving the rigours of labour making it a pleasure and entertainment
..... Improve health of every body through appropriate life styles
..... Strengthen the network of SGCs
..... Encode the new rules for the SGCs and their network management in the lines of General Public License (GPL) created by the Free Software Community
..... Re-engineer the society and establish a new progressive one with democracy and equality of opportunity at all levels and for every one.
== People, understanding the fraudulent objectives of the GoI in demonetising, have to intervene massively to with stand the onslaught of the GoI and in the creation of the new society under the joint initiative of working class, farmers and self entrepreneurs.
== The chaos created by the corporates' state shall be utilised as opportunity to establish a peoples' democratic societal management system based on freedom, democracy and equality of opportunity.
== Such intervention shall be fruitful in creating a new free society weathering all sorts of chaotic situations created by the corporates' state in pursuit of its corporate interest.
== Incase the working class fails to intervene urgently, incase this opportunity is not taken advantage of, the labouring classes, the workers, farmers and self entrepreneurs shall be liable to suffer for indefinite further spells out of the ill effects of mad measures of corporates' state in its pursuit of corporate interest, including subjecting the society to communal, nationalist and such other barbaric passions inorder to subjugate the people to class exploitation of the corporates.