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> According to that same article, the reason for retiring the note was because the people who benefited the most from its existence are criminals, who need to
by wolfgke 7y ago
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According to that same article, the reason for retiring the note was because the people who benefited the most from its existence are criminals, who need to do their business in cash -- the fewer notes, the easier for them.
This is what they want the citizens to believe.
- Mountain_Skies 7y agoI wonder if we are meant to think of drug dealers but the governments are just as worried about the local handyman or small construction company getting untraceable cash payments without paying taxes.
- bananabreakfast 7y agoThis is why so many taxi drivers say their "credit card reader is broken"
- dmurray 7y agoThey aren't getting enough €50 or $100 notes to be a real logistical problem. You can put 10k in your pocket, and count it in a minute or two.
- Scoundreller 7y agoIf you have large piles of money to launder, one way is to build a rental property and pay all the materials/contractors in cash. But now harder to do that with 5x the bills. Or suddenly stuck with 500s that nobody wants to take.
- throwawaycanada 7y agoWait... how do you explain the appearance of the building with no expenses shown except "from cash"?
- smokeyfish 7y agoThere are expenses, they're just not the right expenses.
- Scoundreller 7y agoAt least in Canada, the city cares about building permits, but doesn’t do any checking on how the building/construction was paid for. Banks don’t really question rent cheque’s coming in every month, or a large bank transfer coming from your lawyer for the sale of property.
- lpcn112 7y agoIn 2016 India did the infamous demonetization claiming that the ₹500 notes were used in hoarding black money and funding terrorism. It ended up massively shocking the unorganised economy, and the nation is still recovering from it. The main reasons the government stated while doing it are still going on. The entire exercise didn't solve any problems.
- perl4ever 7y agoI don't have any actual knowledge of the effects of this in India. However, I think that when a member of the general public makes sweeping statements like "the entire exercise didn't solve any problems" it's only flaunting prejudices. If you work at a job related to infrastructure, the details would be incredibly boring to the public, and certainly aren't shared. But you could see something was double or half the year before, and it would mean infinitely more than a million people parroting what everyone always says because they always think the same thing.