Demonetization - poor economics and dangerous politics

Ludhiana, November 27, 2016: Citizens have termed demonetization as poor economics because it will not yield any desired result. Large chunk of the black money is invested in share market, real estate or in foreign accounts while only about 5% may be in the cash transactions. Moreover 99% of the black money is with only 1% people and for this whole country has been put to chaotic situation and the ordinary citizens have been put to extreme hardships while those with large amount of unaccountable money have by and large adjusted their money. The banking system is being strengthened to collect money from the ordinary citizens and then pass it on to the rich, affluent and those connected with rulers at low lending rates while the depositors will be deprived by reducing the interest rates to them. The latest announcement of writing off 7000 crores loan to the corporate including 1200 crores of Vijay Malya by the SBI is a clear evidence of connivance of the government with these defaulters. The statement of the prime minister that “poor people are sleeping in peace while the rich are using pills to sleep” stands reversed after 19 days of the demonetization. The poor are now finding it difficult to even make their both ends meet because of acute shortage of currency, stoppage of exchange and loss of jobs due to poor business activity and production. Their dreams of rupees 15 lakh from the foreign accounts have already been shattered. Govt. has totally ignored the need to collect recover 13.5 Lakh crores from the corporate sectors whose loans have been declared as non performing assets. The food security stands threatened because the farmers are unable to buy the seeds. There is a grave danger of increase in the ongoing chaos which may result into social conflicts at various levels. With the average daily loss of around rupees 80000 crores, the danger of Indian economy coming down in the ensuing period is real. The labour bureau has already published the data that there has been maximum loss of jobs in the past two years and this is likely to go worse as already nearly 4 lakh people in the small and medium scale sector are facing joblessness. Taking such a decision without taking the parliament into confidence, even the cabinet, on the pretext of leakage is undermining the democratic institutions and concentrating power in the hands of one person and his coterie. This has been followed by the blatant use of electronic media to tell lies and project one man as the messiah of all the ills facing our country. This was the consensus which emerged after an interactive session organized by citizens from different civil society organisatioins. The meeting called upon for a joint and broad struggle against such trends. Such situation when getting out of control may lead to further extreme measures by the government to curb the voice of people and to create bogey of external aggression. The country may be pushed into a low level conflict or even full fledged war and then take absolute control in the name of national security. The events occurring are a pointer to this and those questioning the motive behind the demonetization and its uselessness are being termed as traitors. There is no remorse in the mind of the prime minister at the loss of lives during the crisis. Such deaths are being taken casually. The tension at the border is on the rise. Statement of the defense minister that India should reserve its right to use the nuclear weapons in a responsible way is putting the peace in the region at risk. Prominent among those who spoke in the session include Prof. Jagmohan Singh, Dr Arun Mitra, Dr Sukhpal Singh, Com D P Maur, Com Gurnam Sidhu.