From Power Currency to Power Money*

On a Tuesday evening in early November, Prime Minister Narendra Modi, who had been elected 2 years earlier on the slogan “Minimum Government, Maximum Governance” stunned India’s 1.3 billion people by announcing that their 1000 ($15) and 500 rupee notes would be “demonetized” (removed from circulation) and replaced with new 500 rupee versions by the end of the year.
All they had to do was take their old notes to the banks – which were closed the next day – and deposit them – as long as there was a “legitimate” explanation for the cash – (600 million Indians do not have bank accounts).
The New “Modi” Operandi in the War against Cash
The dictionary defines the Latin phrase modus operandi as “a particular way or method of doing something, especially one that is characteristic or well-established… It is also used in criminal profiling where it can help in finding clues to the offender’s psychology.”
Billed by proponents as a way to cut down on the drug trade and bring “dark money” into the open, the reality of banning large denomination notes, if not all paper currency, is considerably different. It is detrimental to the vast majority of a country’s citizenry, who are, by and large, honest people simply trying to make a decent living. Thus the government’s methodology – and ultimate goals – come into view.

This post was published at GoldSeek on Friday, 30 December 2016.