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Observations

Is 2016 like 1978?

In the year 1978, Janta Party government led by another politician from Gujarat Prime Minister Morarji Desai, had decided to demonitise Rs 1,000, Rs 5,000 and Rs 10,000 notes in a bid to combat corruption and black money.

During that time too, people were as surprised by the decison as they are now with PM Narendra Modi’s move. Prime Minister Narendra Modi on Tuesday announced the scrapping of high denomination currency, with an aim to curb black money.

Usually, high value notes are the basis of any form of corruption and illicit deals related to unaccounted money. According to a TOI report, the difference between that time and now is that in 1978, a Rs 1000 note could buy 5 sq ft of real estate space in south Bombay, but at this moment a Rs 500 note cannot even buy even a hundredth of a square foot in that area.-from FE

This Cartoon by R K Laxman in 1978 explains it all…

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Cartoon Risk

PMS Risk

risk

Categories
Links

Linkfest: November 10,2016

Some stuff I am reading today morning:

Asian shares to join global rebound (Bloomberg)

Icahn bet more than $1 Billion on US Stocks (Bloomberg)

How Modi kept his black money master stroke a secret (ET)

Why Mumbaikars bought gold all night long (Teekhapan)

All cash deposits of more than 2.5L will be reported (Mint)

Ash Wednesday (Prashanth)

Do markets really hate uncertainty? (Market Watch)

Pricing Pressure slows Indigo’s flight (Mint)

7 Leadership Principles (Jeff Bezos)

High Conviction Shorts:Empathy for the Bull (CFA Institute)

Categories
Excerpts

A Tale of 2 Chinese Stocks

Source: Bloomberg

Shares of software and heavy equipment provider Wisesoft Co. Ltd. moved more than 6 percent higher on Wednesday morning. The local name of the company sounds like “Trump Wins Big” to Chinese speakers. It’s fitting that as a man who accumulated wealth through licensing deals en route to the presidency is now helping others profit off the association with his own.

Meanwhile, at Yunnan Xiyi Industrial Co. Ltd., an auto-parts manufacturer whose name sounds like “Aunt Hillary,” shares tumbled by 10 percent.

1x-1

Categories
Excerpts

RBI dismisses rumours of Chip Enabled 2000 Rs Notes

The Reserve Bank of India has dismissed as “figments of imagination” rumours that a new series of Rs 2,000 will come with a GPS-chip that will help government track illegal money transactions.

“Such a technology does not exist at the moment in the world, then how can we introduce such a feature?” RBI spokesperson Aplana Killawala told News18.

She said that the RBI website had detailed the security features of the new note and that there was nothing else besides what has been officially said, especially any possibly of a GPS-enabled chip.

 

Reports of a chip-enabled series of new currency notes had surfaced immediately after Prime Minister Narendra Modi announced on Tuesday that the government was scrapping the existing denominations of Rs 500 and Rs 1000 currency notes.-from News18