Thursday, December 8, 2016

India's Demonetization Could Be The First Cash Domino To Fall

Patrick W. Watson ,
Just recently, millions of Americans voted against Hillary Clintonbecause, among other reasons, we thought she would raise taxes or otherwise take our money.
Most of us didn’t notice what happened on the other side of the world that very same day. Indian Prime Minister Narendra Modi really didtake everyone’s money.
Citizens of India learned, with only a few hours’ notice, that their 500 and 1,000-rupee notes were no longer legal tender. Those are—or were—the country’s largest-denomination bills and the foundation of a huge underground economy.
Now they’re just paper.
The results were what you would expect: confusion, chaos, and fear.
Nevertheless, you can bet other governments watched closely. India could be just the first cash domino to fall.



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