Modi's Demonetisation

If this has been a bad move Modi will lose both the UP election early next year and the big election in 2019.

Demonetisation is like Nasbandi drive of the 70s: Shankar Sharma

PM Modi, did you think about these unusual outcomes of note ban?

Is PM Modi's demonetisation move turning out to be a self goal for BJP in poll-bound UP?

From note ban, government eyes Rs 3 lakh crore windfall

Be ready to pay 50-70% tax on black money deposited in banks

You have been warned

Demonetisation politics unfolds as a vast morality play. Its imagination unleashes the state on you, in the name of protecting your own virtue.

It would be churlish not to recognise that it comes from the prime minister’s depth of conviction and sincerity. But that is exactly its danger. What it threatens to institutionalise is a new kind of politics. This is politics as a vast morality play whose three central elements are personification, puritanism and punitive imagination. A new state is emerging and it is not what you think it is.

It is manifested in this odd distinction between black and white money, forgetting the elementary fact that whether money is black or white depends on where it is at in the cycle of circulation. Hence they have perpetuated the illusion that we can extract the black, without hurting the chain of circulation of the white. It is not an accident that this measure will largely be a wealth tax on those not sophisticated enough to launder; those who have laundered will go unpunished.

be very wary of the institutional imagination that underlies it. It will again unleash the state on you, in the name of protecting your own virtue. What starts as a morality play will end in more statism.

The Racist Ideology Is Obviously Troubling

Some of these guys who are now about to get into plum positions in the White House hold unapologetic racist views.

They, frankly, would like to go back to some era when America was the only country with skyscrapers. If you try too hard you might end up in an era with no smartphones. Such precision carries the Chinese threat.

They are a perfect match to the Chinese who were the leading country in the world in 1200. There are Chinese who do fantasize about going back to that era. They have a name for it, One Belt One Road.

For much of human history, except for the past 500 years, China and India were the leading economies on the planet.

But economies are not supposed to be ego massages! ("Mine is bigger than yours!") They are about families and livelihoods.

Unlike war economies are supposed to be win win propositions. The only valid ideology is the ideology of human equality.

Anti immigration has been the biggest unfair trade practice in the world. Goods and services can move around, money can move around, technology can move around, why not people?

Nobody really wants to deport Mexicans. The American economy will quite literally grind to an absolute halt if all Mexicans leave. They know that. The anti Mexican rhetoric is a tactic to keep the Mexicans working at below minimum wage. It is about cheap labor. At one point in American history there was similar anti Chinese rhetoric. They needed cheap labor to build railroads.

Racism is a tool of power. That is why it is strongest in places like the US Senate, Wall Street, and the liberal mecca Hollywood.  

This is a globalized world. America is not an island. Minus Mexico it is not even a continent.  

Modi's Money Move: Lacking In Execution?

India's Great Rupee Fail 

What seemed at first to be a masterstroke by Prime Minister Narendra Modi now looks like a grave miscalculation.

Now that 86 percent of India’s currency is no longer valid, the central bank has struggled to print replacement denominations -- and the new notes are the wrong size for existing ATMs. Modi’s asked people to be patient for 50 days, but the process could take as long as four months.

India’s simply too big and complex for shock and awe. Large parts of the rural economy use cash for 80 percent of transactions and have been hard-hit. In seafood-mad West Bengal, for example, the fishing industry is in a state of near-collapse; in the wheat-growing states of the northwest, farmers halfway through the sowing season have run out of cash to buy seeds.

Even setting aside the painful adjustment, the long-term effects of this monetary shock on India’s informal economy could well be severe; a large proportion of marginal firms may not survive the loss of a fortnight of income. The informal financial sector -- unregistered moneylenders who provide loans to businesses worth 40 percent of total bank lending -- will be decimated.