~*~Mining and Metals Du Jour~*~

[eik]

The Currency Crisis In India

One might wonder why the government needs all the cash when Prime Minister Modi promised minimum-government maximum-governance. The NDA government is no less socialist than the preceding UPA government. It needs the cash to fund centrally planned schemes such as MUDRA where the same government run banks, that are on the brink of collapse, are lending to sectors determined as high priority by bureaucrats sitting in Delhi. The 7th pay commission by the Ministry of Finance further increased the salaries of millions of government officials earlier this year...

Banks run by the government control more than 75% of the market in India. These banks don't have money to fund these populist schemes of the government and this is the reason they are confiscating cash from people, and in the process draining private investment, and further weakening the fundamentals of the economy.

http://seekingalpha.com/article/4028286-currency-crisis-india-seeking-alpha-predicted?ifp=0