Here are some dashboard points that I expect after the clean up of the old currency what we can expect on the Indian economic scenario :
A huge amount of around 15-20 lakhs crore of black money would be identified
We will see a bump of 8 to 10% in deposit with banks
Out of the money identified 15 to 20 lakh would be withdrawn over a period of two to three months
Substantial amount of money around 2.5 to 3.5 lakh cr would still remain in system
There would be a wealth destruction of around 3-4 lakhs crores
30% of money will not reach back to RBI
Next 2 to 3 months property prices and land prices can drop till 30 to 35%
Since there is a surge of deposit huge demand for Govt bonds would be there Continue reading “Where is India headed ?”
- Change is Sudden
Everybody is concerned about the overnight action making high value currency invalid across India. Nobody saw it coming; or was prepared; or had even any idea of its happening.
But there is something else which we know will surely come, but are not sure when, where and how – that is death. And it will come even more stealthily than this!
We had 4 hours advance notice for this – but in death, there will not be 4 seconds. Are we prepared for the secrecy and suddenness in Death?
- Value can be Lost in a Second
We had Lakhs of Rupees in 500 and 1,000 denomination yesterday – but today they are just pieces of paper!
Similarly, all worldly gains – money, wealth, fame, power – not just high currency – will all be worthless for us a second after death.
Continue reading “Some Lessons from the currency invalidation in India”