[IAC#RG] Trump win responsible for 'panic' demonetisation in India

Dear IAC-ians

The "truth" about why Narendra Modi hastily sprang demonetisation on India the same day as the US elections results has been "revealed" to me by somebody (secret).

It was very well known that a Trump victory would cause serious capital outflows from emerging markets and into the US.

"Once it became clear who the next U.S. president would be, investors dumped U.S. Treasurys for stocks that might benefit from Trump cutting corporate taxes and going on an infrastructure spending spree. As a result, the yield on the benchmark 10-year Treasury spiked, inviting money that had been parked in emerging market stocks and bonds back to the U.S.

Meanwhile, the U.S. Federal Reserve has hinted that it may raise interest rates in December. If it does, the pace of capital racing out of emerging markets and into the U.S. may accelerate.

Countries with weak economic fundamentals are suffering a triple whammy -- falling share prices, weaker currencies and lower bond prices."

India's demonetization was thus an unplanned 'panic' move (done with less than 20 days of planning once unexpected dynamics swung the tide towards Trump)  to protect some high level international currency speculators trapped on the wrong side of the INR-USD$ betting.

NB: These forex operators were safely generating returns of 20%+ p.a. in US$ for last 3 years while Raghuram Rajan was RBI Guv'nor.

So, everything we have been told so far about demonetisation is a lie !!!

(Correlate this graph exposing the currency manipulations during BJP rule in partnership with some Hungarian origin "philanthropic" persons)

Sarbajit


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