Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 10 November 2016

The New Maths ?


The new maths is :

Less Rich = Less Poor

But,

Rich does not equal Poor !


Here is how :

A few lakh Black Money holders possess , some Rs 14 lakh*crore worth of OLD notes ( Rs 500 / 1000 ) in their cabinets / vaults


But all that they dare to deposit officially in their bank accounts , will be Rs 4000 crore , trying to stay under the Scrutiny Limit of Rs 2.5 lakh, to avoid tax / penalty / jail


So how will they get around to " save " their black money ?


By sacrificing some 30 % ( " Hawala Rate " being reported by all news papers and TV channels for past 2 days ) , in order to salvage 70 %


Not too difficult if you consider that , our country " boasts " of some 40 Crore potential hawala operators !


I refer to those 40 crore Indians below the official Poverty Line ( having expenditure of Rs 32 per day in Rural areas and Rs 47 per day in Urban areas )


Can Black Money holders succeed in convincing these 40 crore persons to go / deposit in their Jan Dhan Bank Accounts ( government claims that 99 % of Indians - including these 40 crores , now have a bank account ) , just Rs 1 lakh each ?


That would take care of some Rs 40 lakh*crore worth of OLD notes !


Of course , those 40 crore persons would be expected to withdraw ( after some time ) , Rs 70,000 ( 70 % of deposit ) in NEW notes and return to the Black Money holders !


And with the remaining Rs 30,000 in their bank accounts , these poor persons can now start spending every day ( say ) Rs 50 - way above the official Poverty Line !


With one fell swoop ( of demonetization ) , government might have managed to lift 40 crore Indians , ABOVE the official Poverty Line !


No mean achievement , by any standard !


Black Money holders would become less rich but poor people would become less poor !


Now we know , that Shahukars ( unauthorized money lenders ) in our small towns and villages , have lent thousands of crores of rupees to needy poor ( to whom , Banks would not lend since they have nothing to pledge by way of security )


These crores have been lent in Rs 500 / 1000 notes


And the Shahukars will accept " repayments ", only in Rs 500 / 1000 notes !


It is possible that these Shahukars will tell the borrowers :


" You owe me Rs 50,000 but you are unable to return that sum

  Now , take this Rs 1 lakh ( in OLD notes ) and go / deposit in your Jan Dhan bank account

  After 1 month , withdraw Rs 50,000 ( in NEW notes ) and return to me as your repayment
  of that loan . 

I will tear off that LOAN DOCUMENT in front of your eyes ! "



Would you say a " win - win situation "  for both !


Such a " generous offer " on part of the Shahukars , might even save thousands of farmers from committing suicides !


May be every dark cloud has a silver lining !


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11  Nov  2016

www.hemenparekh.in / blogs


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