Modi’s folly 9-10-2018

10, September 2018                       Modi’s folly

The chickens have come home to roost following Prime Minister Narendra Modi’s much hyped demonetization program. His ill-conceived policy of exchanging old to new money popped the balloon of the Indian economy. Modi should be held fully accountable for his monumental blunder. Sadly, reporters are loath to criticize their dear leader lest the RSS and their henchmen try to silence them. Modi is hardly likely to admit the folly of demonetization which resulted in 100 deaths, the loss of 1.5 million jobs and left 150 million people without cash for weeks. Back in November 2016 the government announced that all 500 and 1,000 rupee notes would become worthless and immediately withdrew them from circulation. Old notes would have to be exchanged for limited supplies of new currency. ATM’s ran dry and chaos followed.

This was a populist measure carried out on the backs of the poor.

Recent data from the Reserve bank of India showed that over 99% of currency notes are now back in circulation into the banking system.

India’s rich had been  forewarned and converted black cash holdings to gold and real estate.

Incredulously, the Modi government boasted that the bizarre scheme worked because it revealed how efficiently the government can collect money.

One columnist wrote, “this is like throwing yourself off a building while praising how hard the ground is”.

Mr. Modi claims to be a religious man promising that “if any fault is found … I am willing to suffer any punishment.” Really? I am sure his detractors could offer a few suggestions.

The government hopes the criticism abates which might explain why the Indian parliamentary finance committee hasn’t published its report on the demonetization debacle.

Ominously, the prime minister warns critics about how the state can be unleashed on dissent which explains the recent arrests of human rights activists, and reporters. His claim to support free speech and democracy rings hollow. Sadly, Modi lacks the humility to admit his shortcomings and is obsessive about cultivating a favorable image adorning himself with fine clothes, yoga postures, frequent shots holding a cell phone to his ear and foreign travel. His hubris may take a savage beating when his party meets its electoral nemesis.