Has Modi Government laid the foundation for Financial Totalitarianism in India

Wahab Khan
According to Robert Axelrods Iterated Prisoners Dilemma  The best way to play an iterated Prisoner’s Dilemma of uncertain duration depends on what decision rule the other player is using. The Rule is Nice or Not Nice!! This is an instance of a game, analyzed in game theory.

 In the game of demonetization, there are bankers and the game is between government and public based on the tag of COOPERATE and DEFECT. Here are the outcomes. Both played COOPERATE. Banks will give rewards  to both. Jan Dhan accounts, digital banking, lucky draw to public and caretakers will indulge in fresh rampant fraud, embezzlement and new loans to sprouting men of affairs. Both played DEFECT. The law will prevail on wrong doings and both will be punished for mutual defection. Bankruptcy will lead the burden on government and public may be punished by negative interest rate and by other means. Public have played COOPERATE and Government has played DEFECT. Bankers will pay the government and public will be fined (sucking!! Demonetization). Public have played DEFECT and Government has played COOPERATE. Bankers will pay Temptation payoff to public and will fine the government. For example the aftermath of Venezuelas currency demonetization public defected, demonetization plan has been postponed, defected of misconduct are facing the punishment. Unlike Venezuelans, Indians are cooperating with government, and both are getting rewards. 

War on cash spread over India on the night of 8 November 2016. In exchange of bank account, digital wallets, digital bond or money fund, the PM has forced the public to push their hard earned money into the banks. Astonishingly!! He has set the time period of 50 days for dear countrymen to surrender their hard earned savings to the chambers of totalitarianism. Government continuously adjusting the situation for the execution of the plan before ending of it on 31 Dec 2016.  Demonetization (demon!) supporters proclaimed the goodness of torment gifted by our beloved ruling elites. Stupefying go cashless slogans came to the limelight; supported by the digital payment supporters, they minted crores of rupees after the proclamation of demonetization by the government. This way is good that way is good, but in reality nobody knows which way is good in agony. Everybody cries as per their shoulders ability to bear the burden, but sadly, many lost their life who could not take the weight of unnecessary excruciation. Government machinery has considered these deaths as a minor inconvenience. PMs mother get prominence in the news, she was in the queue to withdraw the money at the age of 90, to console the minds of queued up Indian peoples. But this act, whoever purported, was criticized by some politicians. 

Who wins in this digital trade? Shake your mind and remember the central banks/government. The old rhetoric of controlling the black money comes with more advanced hyperbole. Chest thumping sovereigns are selling the dreamy stories, like in a cashless society crime rate will reduce; fake note and drug smuggling will come to halt, no outsider laborer will poke in this country without proper digital identity. Have they told about the gigantic world of digital robbers, how their nexus works? These digital muggers will soon spread their tentacles to make robbery in your digital vaults of gold, smartphone, and in your digital pay accounts. These robbers will be happier than a common man due to feeling very relaxed, not carrying bags full of notes. We have been told terrorism in un-rested part of India came to rest. Who is the scapegoat in such episodes? Innocent public!!! Is not it? Only the art of stealing, fraud, dacoity, cheating will change and will come with more advanced state of the art way. You have been shown the dreams of crime, free utopian world of cashless society. 

Are the bankers are saints? Who will take the guarantee that banks will not do frauds? We may have implausible surety that J P Nayak recommended Bank Investment Company (BIC) will not do such things when will be in full control of private hands. Has not the bank, he managed caught in fraud? 

A virtual currency Bitcoins also started to make inroads in Asian market, amid high drama of demonetization. Why bitcoins business will flourish in Asian markets and Delhi as a hub? Who are the mysterious controller and supporter of this hypothetical digital currency? Why these unknown players making Asia (India) their playground to seize the economic autonomy of the general public? India, where one third of the population is illiterate and only marginal percent out of 74% literate are in support of the of digital transaction world. The time will come people shall have to pay the tax for having money in cash or gold beyond the prescribed limit. You also have to surrender your gold in the safe vaults of ruling elites. Peoples liberty will be threatened, in the virtual world of economy without autonomy, and be controlled by the banking/political masters. Caretakers of cashless society will keep an eye, like big boss, in your life history. Slavery of neo economic totalitarian is going to knock your door soon. Be aware!!! 

 What is behind the veils government will not tell us the truth, maybe avoiding fiery reactions. Sympathizers of ruler are supporting the move by saying very good by citing some amused example of the benefits, but adding that there are challenges that exist with its execution. One of the well wisher Paytm have shown 1000% growth in the value of money added to his mobile wallets. The opposition leader has addressed them as payoff agents to the prime minister of India. Others charged the whole demonetization process as massive scam. But the general public or workers of government could hardly criticize them, whenever they do such act their voices are curbed by the regulating authorities.

Incestuous nexus: 

An equally significant aspect of demonetization act is condensed nexus between rulers, bankers, and businessmen. To safeguard their shoulder from the weak economy and debt burdened banks, Finance Minister Arun Jaitley had said this terrible legacy of debt was conferred to us by the previous government. When a story of Rs 1.14 lakh crore of bad debts was published in The Indian Express on February 8, 2015, the RBI, the SBI and the Union finance ministry of India, have defended wrongdoing by stating that the write-offs are an accounting entry to meet regulatory guidelines. Whereas thirty seven public sector banks already has burdened with bad loans have shown a high rise in non-performing assets. It seems, rather than rectifying the problem of economic disquiet they are hand to hand to push it leap forward at worse condition.

How were the banks lending money in the name of loans to show the world that Indian economy is booming? Python size expansion of the economy has come to halt as the central bank of India (RBI) put the pressure on banks to stop the further loans as non performing loans are still unrecoverable.  Lakhs of crores rupee debt of almost all major steel companies had already put the very high degree of stress on banks. To overcome this state of affairs, the government had prepared bailout plan for steel sector. The government has planned to infuse equity and to spend trillions of dollars on infrastructure development in the name of smart city till fiscal 2017 to revive the debt loathed steel companies. 

Regarding this spoiled resolution, former RBI Chief Raghuram Rajan had rightly said; “You can put lipstick on a pig but it doesn’t become a princess “. The government is also planning to get rid of bad loans and will inject at least 250 billion rupees ($3.65 billion) of capital into government-controlled lenders. Government has to fill the empty coffers before the new fiscal year to adopt the, starting April 1 2017, international standards Basel III system. The aim of this system is to improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source. 

The All India Bank Employees Union released a list of 406 loan defaulters who together owed over Rs 70,000 crore and are facing legal action. Who is coming to their rescue? Indias largest public sector bank that has dropped more than Rs 7000 crore loan to top defaulters. For the resolution of this bad loan SBI will search another fund house like American Brookfield Asset Management, with whom SBI has settled the other earlier case. Entry of global players in resolving of the stress, assets fund is like the alien spread of vulture fund which will affect the Indian economy very drastically. It seems demonetization is a collaborative way to cope with such blunder rather than directly calling the global “vultures”. These dubious trail leads us that how much concentrated incestuous nexus is. Similarly Vishwas Utagi, Vice President, AIBEA had said in  2014 about money fraudulently siphoned off for NPAs from the banking system, There is a nexus between top bankers and top corporate borrowers, with the support of politicians and bureaucrats, (The Hindu May 06, 2014). A staggering amount of bad loans takes fresh air with the help from politicians, bureaucrats, and complicit bankers and now all these bad loans will be balanced by fresh equity infusion.

Who are behind the veils?

Another, significant factors in demonetization is, who are the planner and executor. A man, who claims the gift of demonetization proposal to PM, is the founder of Arthakranti organization. Organizations well researched scientific proposal is about to transform the current Indian economy into well prosperous and peace loving principled society. Scientific knowledge in politics!! There is no as such, but it may be circumstantial. Modern Indigenous policy makers are the only mask of the mysterious game. Great gamblers of the world are coming together and setting up their circus shops each and every corner of the world and presenting themselves in joker face. Game of economic totalitarianism and the war against cash has assumed their birth in the utopian chambers of Keynesian masters. One of the Harvard Economist, protagonist of totalitarianism, Kenneth S. Rogoff  has laid out a plan for phasing out most paper currency in his book entitled The Curse of Cash.  He has proposed three major guiding principles.

Based on first principle he proposed to make it to more difficult hoarding and secretly transporting large amounts of cash, illegal transaction and tax evasion. He termed the large legal transaction as vestigial and unnecessary for at least in advanced countries. Is he right in his guiding principle? It seems he wants to give special legitimacy to the elite rulers or bankers and making it difficult only for people who are always in dire need of cash. After the demonetization we have come to know who is doing fraud in the name of cash as the curse. Is not they are the caretaker of the nation and its economy? Is not it, in the name of cash as curse government is harassing its own country people. Aren’t true large defaulters of bad loans being big businessmen? Who have lent them money? Of course banks!! With the help of government bankers and men of affairs knitted a biggest scam of NPAs. Is not their legitimate transactions were of digital sort? Or bankers with the help of government and bureaucratic machinery had given them load of a large chunk of cash. No!! They issued such loans to them legally that is why we know how they are doing the greater scams and frauds with legitimacy. 
In the second principle he talks about the phasing out the currency with the slow pace to avoid disruption in economic activities and feasible adaptation of digital way of transaction. In case of any difficulty arises during transition government has to be in a position to settle down the issue amicably. It means public shall be punished by slow torture and they could not complain about the pain. They will break our heads, and then will buy plaster for us. This monster of utopian world will come to our life slowly. The government has allotted fifty days to seize the so called black money, while torrential frauds and loot were reported in the core ring of the nexus. Now we can imagine the long period of time with such grievous economic plunder, how dangerous will it be?

 

His third principle is the core of snatching your economic liberty with a very crafty manner. All accounts less people shall have accounts in the banks. He specifically mentioned the first word poor and then unbanked individuals in his third guiding principle. It shows planner has targeted the poor with very first priority. How this principle has been implemented in India hardly we poor people know. PM, Modi had launched the Pradhan Mantri Jan Dhan Yojana on 28 august 2014 for excluded sections i.e. weaker sections & low income groups. By this way they have laid the foundation of financial inclusion of the poor strata of the public. Scheme with alluring handsome such as access to credit, insurance, pension facility and the beneficiaries would get RuPay Debit card having inbuilt accident insurance cover of Rs 1 lakh. Interestingly, all is free of cost!! Who will bear the cost of such big expenditure? Of course secondary strata of the public who are part of financial inclusion in public sector institutes. People for people and government besides!! As per Department of Financial Services, till date 25.98 crore Jan Dhan accounts have been opened with a sum deposit of 74123.12 crore rupees. Where from this crores of money came in jan dhan accounts when poor peoples do not have money to open their own accounts? The sudden surge in swelling in deposits of Jan Dhan account raises the question over authoritative nexus.

Public Sector Banks (PSBs) are less than the half in number compared to a combined figure of private and international  commercial banks in India. In public view who are the culprit for the bad loans and NPAs? Majorities blame goes to PSBs!! Behind the veils private players will make the scathing attack on the government and PSU corporations. At the time of crises these players are presenting themselves as the well wisher of the public. PSBs are in a very bad position, due to mismanagement and greedy lust of lawmakers. Publics attention may head towards private sector because of the PSU vacuum. They want to demolish the Nehruvian agenda of socialist democracy. This is the reminder for us of the same when, after the nationalization of the insurance sector and the undertaking of other sectors under PSUs, allegation of investment in spurious business emerges and a lawmaker G D Somani demanded inquiry into the working of PSUs. Then one of the founding pillars of socialist India, Feroz Gandhi defended the PSU by accepting its mismanagement and stridently criticized the private sector targeting the TELCO. He also suggested to the government is that never enter into a contract with a private company on the basis of no-project-no-loss. Is there any crusader who could speak against his own party for the well being of Indian public? Altogether the establishment of digital transaction is in control of private alien players. Who is there to challenge them and could control the reins of economic liberty for the benefit of public. 
Peace-loving disciplined citizens:

Many people are asking the questions to each other, what is the benefit to us of this demonetization? Many are screaming very silently in digital tone, we belong to the same troupe still they did for us too. Some said whatever the outcome at least we learnt the word demonetization (demon!!). Publics autonomy of as cash king will be crushed owing to cash is curse, this curse will leave you at the mercy of government owned virtual spies or privately controlled vultures vaults. Either you have to spend your hard earned digital pulses or shall have to remain as a disciplined economic robot. Economic persecution may have affected your rightful thinking and put you in gravest danger. Privacy of your economic autonomy is not merely under threat it has been demolished. Silent agony and suffering have handicapped the daily life of the general public with the help of a very good masterstroke (demonetization). Governments action has plunged the liberty of our economic self-reliance is at the mercy of the new environment. Bankers, the financial institution will become wealthier, so the powerful, due to the process of financialisation. How the desires of demon supporter can harmonize with the sufferers? Bertrand Russell has rightly said, Advocates of capitalism are very apt to appeal to the sacred principles of liberty, which are embodied in one maxim: The fortunate must not be restrained in the exercise of tyranny over the unfortunate.
The author is  a PhD Studen in the Centre for Bioinformatics, Pondicherry University

  • K SHESHU BABU

    Slowly, but surely, the effects of demonetization are trickling in. This has made the rulers panicky. The announcement of ‘ crores of rupees’ as lucky draws itself indicates the acceptance of failure. Even if the deadline of fifty days is closing in, there is no substantial recovery of black money from the richest from foreign banks or their assets. Here and there, some raids ( may be manipulated) are yielding some ‘ converted’ notes. There is much in store in future …