The Real Motive behind the Demonetisation of 500/1000 Notes.

The decision to Demonetise 500/1000 Notes by our PM Mr. Modi is no small thing. It has a great thought behind it & a complete Game Changer. Common people like us cannot understand this

And because of this, we are abusing Mr. Modi and our Government.

Agreed, people who stand in the long queues know the pain.. But when you know the real motive behind it, you'll understand that it has been taken for country’s benefit.

So, what is the Motive, and how is it going to benefit common people like us?

Before going into this, we need to know some technical issues about currency.

Read carefully to understand that...

Did it not occur to you that, when it is the Government that prints the currency then why not print enough currency sufficient for all?  Then there will be no Poverty at all...

If the government does like that, then our whole economy will be doomed.

There are many reasons for it...

Firstly, let us get familiar with the guidelines for printing currency...

You would have observed that below the RBI Governor's Signature on a 100 Rupee Note there is a message in Hindi and English.

"I promise to pay the bearer the sum of One Hundred Rupees"

Do you know what it means? Here's it...

It means that the RBI Governor is promising us that in case you don't need the Currency, and suppose you wish to surrender the same to the Government of India, in such a case the RBI will give us Gold equivalent to the Currency.

Whether you have 1 Rupee or 1 Crore Rupees, whenever you feel that you don't need it, you can surrender the same to the Government and get Gold equivalent to the same.

A country's economy is determined by the amount of Gold held by its Government.

It simply means that the amount of Gold the Government holds the amount of Currency it can print... Suppose in case anyone says that he doesn't need Currency and wants Gold, the Government must have Gold equivalent to the Currency to give...

So, it means that the Government prints Currency equal only to the Gold it holds...

Why & How is all this related to the current situation you might be thinking!

So now you might be thinking how all this is related to Black Money

Coming to it...

The Government has been printing Currency for years.

As the Gold reserves increased, so did the printing of Currency.

And all this Currency reaches us through the Banks.

But, some of it reaches the coffers of Black Money holders, instead of being useful to the common people. Some Big Shots earn Big money some way or the other and avoid paying taxes for it and hide it.

Money hidden like this without paying Taxes or depositing in the Banks becomes useless pieces of paper, unless they spend it themselves.

Every year the Government presents the Budget, consisting the details of the Income of the Government for the year, the expenditure incurred by the Government, the amount the Government can spend in future, How much it has to borrow, how much the Income has to be for the next year etc, etc...

Since the last few years the spending has been much over the Income, and it has been like this since long, maybe, decades... And, when the spending is more than the Income it's called a Deficit Budget. It simply means that the Government doesn't have enough money to run the Country.

Due to this deficit, every year we (Government of India) have to borrow/take loans from World Bank, IMG etc...

Such a scenario is also called fiscal deficit.

That Mr. Modi has been working on lowering the fiscal deficit since he came to power is known to us all. He's been travelling all over the world and asking them to invest in our Country. He has also brought some economic reforms and welcomed investments.

What we don't know is that if the Money lying in the coffers of Black Money holders comes out, we'll not have to depend on foreign investments...

And getting the money into the Banks is a way of getting it out.

The Modi Government had given a last chance to the Black Money holders to declare their Money, pay Tax and convert the Black Money to Accounted Money by September 30, but not many people came forward...

Hence the Government had no other option but to order change of Currency...

We are all aware of this, you might be thinking... But wait, here comes the real Punch...

We are all seeing the Government warning us of action on TV that if we deposit more than 2.5 Lakhs that's it...

A lot of us might be thinking that "if the Government threatens like this who'll deposit Money in the Banks... People fearing prosecution if they deposit Money in Banks are already throwing it in Garbage, Canals etc... Some are Burning it.. Such money will not be useful to anyone..."

Actually, that’s the plan. The Government does not want the Black Money holders to deposit their Money in the Banks, because after December 30 all such un-deposited money will be useless as we all know. And hence all this ill gotten money will be rendered useless instantly...

So, the difference between the amount of Currency held and the Gold reserves with the Government as on January 1st will be huge.... The Government will not have Currency equivalent to the Gold held, so it can print new Currency...

The Black Money lying un-deposited held with people will come back to the Government in the form of new Currency...

Game-over Black Money hoarders...

On the other hand, with the Government receiving Lakhs of Crores, our Country's deficit economy will turn into a surplus economy, and the Government can undertake a lot of development initiatives, changing the face of the Country

Do you still complain about standing in queues? Don't worry, the effort will not go in vain. We shall reap much more benefits than the hardships...

Share this, so that everyone will know...

Our Country will benefit...

Please Cooperate...