539.An Unprecedented Economic Deprivation

539

An Unprecedented Economic Deprivation

Former Chief Minister of Kerala Mr. Oommen Chandy, on 30 December 2016, questioned the re-emergence of a blacklisted British company, De La Rue, around the time of demonetization.

He smells a rat in the demonetization. The Prime Minister of India, Mr. Narendra Modi, alone can give a reply.

The Prime minister of India, on 30 December 2016, said that the rats that were stealing the hard earned money of the people were caught.

He talks like this after giving Re. 33,000 crore in foreign exchange as commission for buying the Rafale aircraft.

The Supreme Court of India would not always function as a covering for such actions.

India, on 31 December 2016, completed 50 days after the demonetization of the 500 and 1000 rupee currency notes. On that occasion, Prime Minister of India Mr. Narendra Modi said that the demonetized notes were bolstering inflation.

Does he want lower prices for rubber, coconut, cereals, onion, potato and tomato?

It appears that he would not take necessary policy decisions that are complementary to the demonetization policy. It is very dangerous. 

He must allow the money to soften or harden freely based on sound economic principles.

On the same day, he said that tough action would be taken against the “dishonest people”.

He must cancel the Rafale deal forthwith and put right all other public wrongs committed by the successive governments.

          Again, on the same day, he said that 4 per cent rebate would be given to the housing loan up to Re.9 lakh crore.

          The banks do not transmit the benefits to the customers. Some banks say that this would be available to the new customers only. Some others want processing fee.

          It is pertinent to recall that the present man requested the former Prime Minister of India, Mr. A.B. Vajpayee, to bring down the lending rates for housing loans. Immediately he brought down the interest rates from 16 per cent to 11 per cent.  He did not give any compensation to the financial institutions. This happened in 2002.

          Further, he did this without demonetizing the currency.

          The present prime minister talks of 4 per cent rebate in interest to the housing loans up to Re. nine lakh. He says this after removing the entire money from the system!.

The present prime minister says that he would compensate the rebate to the banks. This is another manipulation.

          House construction is equivalent to public investments. It gives direct and indirect employment to several people.

He should have announced outright grant of not less than Re. 3 lakh, for the below poverty line people for house construction. He should not have left them at the mercy of the bank managers at all. This might have partially revived the economic activity

Further, he should have given housing loan at 4 per cent interest for the existing and the future loans up to, say, Re. 50 lakh.

Simultaneously, he could have cancelled the interest given for saving bank accounts. It is an irony that the banks have to pay 4 per cent interest to the black money deposited in banks.

He could have ascertained the interest rates prevailing in England for such loans.

Now, his announcement has the effect of ridiculing the untold sufferings of the people all over India.

The absence of complementary actions to the demonetization is causing an unprecedented economic deprivation all over India.

This is letter No.539

   This letter is being submitted to His Excellency the President of India, Supreme Court of India, Chief Vigilance Commissioner, Indian Army and the Indian Air Force, and posted in the blog: www.howeverythinghappenedinindia.blogspot.com  on 6-1-2017.

6-1-2017.

V. Sabarimuthu,

26-3 Thattamkonam, Vellicode, Mulagumoodu PIN: 629167, India.