Thread: Global Politics
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Old 11-16-2016, 11:29 PM   #49
Talon87's Avatar
Join Date: Mar 2007
Location: Lafayette, Indiana
Posts: 20,548
Originally Posted by deoxys View Post
I was listening to NPR's Marketplace tonight when I heard a story that sounds like way more than a big deal, but has been largely drowned out in the US by the election.

In Surprise Move, India Voids 500 And 1,000 Rupee Bills To Fight Corruption

The reporter described it as a huge gamble in an effort to kill India's vastly large underground black market, and it caught pretty much everyone completely off guard. Now, imagine if America killed the $5 and the $20 bills, leaving only $1 and $10 under $50. This would obviously have a huge impact on our market and the way we exchange currency, but a large amount of America also runs on credit and debit.

In India, from what he described, you have a lot of people who have been saving and sitting on their cash and strictly only use it to buy goods and services. However, take that away, and suddenly you have everyone scrambling, especially those in the lower classes, to get rid of/exchange their now voided money. And from what it sounds like, the citizens have taken a much harder hit so far than the black market has.

I'm curious to know more about how this is affecting the climate over in India right now. Rangeet, what's it like from your perspective?
Wow, that's pretty wild! Thanks for sharing the news story with us.

"Modi told Indians they will have 50 days to deposit the old bills into bank or post office accounts, and the amount that people could withdraw would initially be limited. Within hours of the announcement, the notes were nearly useless for buying anything."

What does this paragraph mean?
  1. the bills are worthless period, and people have lost out on whatever money they had in those denominations
  2. while no vendors are accepting the bills because lol hassle, the government has given everyone 50 days to drop the bills off at certain places where you can get a credit for them
I'm reading it as B right now, which is not too bad I say as a bank account holder but which I acknowledge could be pretty devastating for any lower-class Indians who, for one reason or another, have all of their money under their bed mattress instead of in a bank account. But if it's A instead of B, well then this is bad news for a lot of people, I should think!
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