How black money is responsible for terrorism and crime

These animals were killed because they could be sold for cash. The money obtained by this sale is Black money.

Moving towards a currency-free economy!

In this article, we shall see what Black money is and how eradicating Black economy will almost eliminate terrorism, naxalism, high level corruption, trading of votes, MPs and MLAs during elections, human trafficking (and hence forceful prostitution), illegal mining, extortion (kidnapping and blackmailing), drug trafficking and poaching (thus promoting wildlife conservation). Uprooting Indian Black economy will also have destabilizing effect on the major European and American economies and hence help in ending the hegemony of the west over world politics and economics, shifting the global power balance in favor of India. Uprooting the Black economy is a shortcut to not only a near crime-free society but also economic prosperity. How ?? Let’s see.

Let’s understand Black money through a discussion between you and me.

You: You are telling that eradicating black money would create a crime-free society ?? You seem to be living in utopia. Wake up!  You want me to believe you ??

Me: Yes!

You: And why should I believe this unfounded claim ?

Me: Ok, I guess, before we proceed, you will need some explaining. Let’s first understand what Black money exactly is. And even before that, what money exactly is.

You: Aaa han. Tell.

Me: Money is anything that can be used to make economic transactions on-demand. On-demand means that the object being called money must be available at the instant a person wishes to make an economic transaction. And the..

You: Wait! What do you mean by an economic transaction ?

Me: Any exchange of tangible goods or services is called an economic transaction. At the heart of an economic transaction lies the exchange of a good (like vegetables) or service (like internet service) for another good that is available on-demand (like currency notes or a bank cheque or gold coins). This latter good is called Money! A terrorist buying arms with cash or a cook buying vegetables with cash or a household availing internet service with a check are all examples of economic transactions.

You: Money is a good ??

Me: Yes! Of course. One of the goods in a non-barter economic transaction is always money. But in a barter economic transaction, none of the goods being exchanged is money. The hallmark of a good that may be called money is that the society has universally accepted that the good being called money can be exchanged for any other good. For example, today you may exchange currency notes for a TV set or a transportation service. But today, you can exchange wheat for neither a TV set nor a transportation service. Hence, currency note is money but wheat is not. Note, though, that any good can be used as money. From wheat, cows, wine, slaves to silver, gold and all the crazy objects you can think of have been used as money somewhere at sometime in history. The use of paper money is a very recent phenomenon. Historically, paper money was introduced by early banks to stealthily loot common people. Slowly, the kings took over the  sole authority to print paper money from banks when they realized how paper money can be employed to loot their subjects without the subjects even being aware of the loot, thus preventing the subjects from revolting! But let’s not digress by discussing that invisible loot. Here, let’s discuss only those aspects of paper money that enable us in grasping the notion of Black money.

You: Hmm, sounds interesting. Go on.

Me: To comprehend what Black money exactly is, one first needs to recognize that there are two-kinds of money today.

1) Traceable money (cheques or demand drafts drawn on various kinds of on-demand financial instruments)
2) Untraceable money (Currency notes and coins)

Traceable money is one that allows us to trace the economic transactions accomplished by it. For example, all the economic transactions I made from my bank deposit account, either through internet or cheque or demand draft, are recorded in the bank pass book and bank’s databases. The Income Tax department can access the list of my economic transactions from the bank records to accurately calculate Income tax payable by me or CBI may access the list of my economic transactions if it suspects that I am the elusive fraudster frustrating its nerve. Above all, the fact that I have made a traceable economic transaction garuntees that I have submitted proofs of my address and my other details while creating the bank account. Thus, law enforcing bodies will have easy time catching hold of me, if I ever commit a crime.

But those economic transactions that I make using paper money remain known only to me and the person I am transacting with! Most ac..

You: So you mean…

Me: Wait, let me complete. Most activities, whether legal or illegal, involve economic transactions. From buying arms to buying vegetables, from availing internet service to availing fetus’ sex determination service, all involve economic transactions. Just ponder over what does not involve economic transaction and you will be left with very few answers. So, money is required for most activities. While legal activities can be carried out using either traceable money or untraceable money, illegal/criminal activities can be carried out exclusively using untraceable money, else the criminals will be caught within no time.

We find Daud Ibrahim extorting ransom from his victims not through check but only through cash. Fees paid to a doctor performing illegal fetus sex determination is in cash not in demand draft, a terrorist comes from pakistan with a bag full of fake currency notes not with a bank account, a pimp lures poor and starving parents of a girl for prostitution not through a pay order but through cash. I can go on and on with more such examples, but..

You: Hmm. Makes sense. So currency is the root of all evil! And eliminating currency will eliminate all evil!

Me: No! The root of all evil are काम, क्रोध, लोभ, मोह, अहङ्कार and मत्सर्य and eliminating currency will not completely eliminate all evil. Evil can be eliminated only when काम, क्रोध, लोभ, मोह, अहङ्कार and मत्सर्य are eliminated from people’s minds. Currency may not be the root of all evil, but it definitely is the lubricant of all evil. Illegal activities can be performed even without currency, but eliminating currency will effectively push all illegal activities into primitive barter transaction which is a highly inefficient way of exchanging goods and services.

You: Hmm. But where is Black money in all this ??

Me: The untraceable money that is used to accomplish untraceable economic transactions is Black money. So the statement that currency is the lubricant of all evil can be replaced by Black money is the lubricant of all evil. But there is more to this concept of Black money. Any nation has two types of GDPs representing two types of economies. They..

You: Do not assume I know everything. What is this GDP ?

Me: Ok! All the activities in a nation are carried out through economic transactions. The greater the number of economic transactions happening in a nation per year, the greater is the size of the economy of that nation. GDP is a  cumulative measure of the number and size of all the economic transactions taking place in an economy per year. GDP divided by the population gives a rough measure of average income in a nation and hence GDP is also a rough measure of poverty.

So coming back to Black money. There are two types of economic transactions. Traceable and untraceable. The official GDP of India that the finance ministry measures, represents only traceable economic transactions. Whenever you use currency to buy something that costs Rs X, that X amount of money does not register anywhere and the government does not know of it. Hence, that X does not get counted while calculating the national GDP. Had you made that transaction using a check, the national GDP as measured by the Government would increase by ‘X’.

There are two types of economies in any nation. The white economy and black economy. The sizes of these two types of economies are measurable using white GDP and black GDP, respectively.

White GDP = Sum of all the traceable economic transactions => Can be calculated accurately because its constituent transactions are traceable
Black GDP = Sum of all the untraceable economic transactions => Can only be estimated theoretically because its constituent transactions are untraceable

Using Sanskrit terminology, the same thing can be paraphrased as

Black GDP =  measure of अधार्मिक activities

So, Black GDP of a nation is effectively a measure of crime, corruption, loot and terrorism prevalent in a nation.

In ancient times, killing evil people was a way to establish धर्म. But in today’s world, eradicating Black economy is the way to establish धर्म. If someone is able to eradicate Black economy, he is effectively fulfilling the pledge of establishing धर्म that Krishna takes before the battle millenia ago.

यदा यदा हि धर्मस्य ग्लानिर्भवति भारत। अभ्युत्थानमधर्मस्य तदात्मानं सृजाम्यहम्॥
परित्राणाय साधूनां विनाशाय च दुष्कृताम्। धर्मसंस्थापनार्थाय सम्भवामि युगे युगे॥

You: Awesome! But after all this talk, how can someone eradicate Black Economy ?

If Krishna existed today, the first thing he would try to do is eradicate Black economy!

Me: Easiest way of eradicating Black economy is to eradicate untraceable money. That means eradicating currency. A currency-free economy will effectively be a 100% white economy with little or no black component. That means a currency-free economy is also a crime-free economy because currency is the lubricant of all evil! Eradicating currency will effectively push all the अधार्मिक activities into the primitive and highly inefficient barter transactions.

Previously, a pimp used to stealthily sell little girls to brothels for cash. But now, to do that he would have to create a bank account and thus register himself with the income tax department!

You: What if the pimp starts using gold instead of money ??

Me: To do that, the pimp will have buy gold from somewhere and will have to create a bank account for buying that gold. All in all, any criminal or terrorist will be forced to make a monetary transaction at some point. And at that point, he is caught.

You: Seems a good idea. But, how will we create a currency-free economy ?

Me: Creating a currency-free economy means replacing the paper money with some other form of money that is as convenient (for small transactions) as paper money but is traceable at the same time. The form of money has kept on changing with society. When the society was nomadic, cattle was used as money. When the society got based on agriculture, grains were used as money. When metallurgical skills got developed, gold/silver money came in vogue. When the printing press was invented, paper became the de facto money. Today, with the advent of IT, digital money will be the norm of the future. And the biggest advantage of digital money is that it is traceable. But the corrupt people who are today flourishing on paper money would definitely resist this change. Nonetheless, change is going to happen. Today we have a great chance of shifting to digital money,  esp. in the wake of the economic revolution that Baba Ramdev is talking of and working for. When our economy will be completely based on digital money, that day we have successfully created a currency-free economy and hence a crime-free nation.

You: But creating a currency free economy would not be that easy. It seems next to impossible.

Me: Yes! the idea of a currency-free economy is difficult to achieve because no one has tried it before. But then every new task is difficult. That should not deter one from attempting it. Creating a currency-free economy will require lot of research and pilot experimentation. It is achievable only in the long run. But in the short run, crime and terrorism can be drastically reduced by banning currency notes of Rs 500 and Rs 1000!

You: Now that you have explained the notion of Black money, I see merit in banning the use of Rs 500 and Rs 1000 notes. But is it feasible ??

Me: Yes! Of course. Even today, making transactions of more than Rs 20,000 in cash is illegal. So if someone is really following laws, he would not need the notes of Rs 100, 500 and 1000. In fact, by printing these notes, the government is indirectly giving opportunity to people to break the law (and indulge in corruption by making untraceable transactions).

The ArjunSen Gupta Report released in 2009 found that 77% of Indians live on less than Rs 20 per day. And this 77% people are the real aam aadmi. In such a nation, what is the necessity of notes of Rs 100, 500 and 1000 where 77% people do not even use a note of Rs 50 ?? The point is that common people do not require high denomination notes. Payments upto Rs 20,000 can be easily made using notes of Rs50. The high denomination notes are only required for making the payments of the order of lakhs and crores convenient. Such huge transactions are made not by aam aadmi (and aurat) but by the political and social elite like A Raja or Shahid Balwa. But if they are making any such genuine transaction, then why can’t they make it through their bank account ?? Of course, the answer is, if they used their bank accounts, how could they possibly create such a big 2G scam and profit elite capitalists at the expense of aam aadmi ??

You: What you are telling makes sense. But, don’t you think paying Rs15,000 with Rs 50 notes is more inconvenient than paying same with Rs 1000 notes ?

Me: Yes, you are right. Rs 1000 notes make it more convenient to pay Rs 15,000 than Rs 50 notes do. But then, throwing garbage on the road is more convenient than searching for dust-bin, crossing a road by jumping over a road-divider is more convenient than crossing road through a zebra-crossing, bribing Rs 20 to a police constable is more convenient than paying a fine of Rs 200. The major reason for corruption today is that people become blind to long-term problems for the sake of short-term convenience. Using traceable money is a good habit, just as not spitting on road is a good habit. The job of the government is to promote good habits and give people minimum chance of indulging in bad habits. Moreover, why do you wish to pay Rs 15,000 using cash, pay it using a check! Check is much more convenient for transacting in the scale of thousands than is cash. Just because the limit set by government is Rs 20,000, it does not mean that all the transactions less than that amount should be made in cash. I do not even remember the last time I made a transaction of more than Rs 1000 in cash. I have pledged to use traceable money as much as I can. When the government can promote the use of harmful chemical fertilizers so much that 99% poor farmers today are dependent on wealthy capitalist MNCs for their agricultural inputs, then why can’t the government promote the use of traceable money so much that 99% people willingly use traceable money ??

You: You are right! Thanks mann! You have opened my eyes. I will use traceable money from now on as much as I can.

Me: Do not thank me. You should thank Baba Ramdev who is doing a great job of creating awareness among people. Something that the government should have done long ago is today being done by a rishi.

You: Hmm. You are right. By the way, I need to go now. Talk to you later. Bye.

Me: Bye 🙂

Do not get fooled by the face of Mahatma Gandhi on these notes. They represent evil intentions, not ahinsa. The only reason that these notes are printed is to promote corruption, crime and loot. Hundreds of scams since independence from 2G to Bofors would not have been possible, had these notes not existed. And if the scams were not possible, then how would the politicians and wealthy capitalists loot common people and store the loot in their American and European bank accounts ??

The conspiracy of high denomination notes runs much deeper than what we have discussed so far. In this short video, Baba Ramdev explains that conspiracy and deduces an estimate of India’s Black GDP. The crux of what Baba Ramdev is trying to say in this video is that Indian government has printed excess currency notes than what is required to sustain India’s official (white) GDP. That means India’s money supply must contain an excess of currency notes when compared to other countries. I tried verifying this fact and I did not need to go far away. This data is available on Wikipedia.

Percentage of currency notes in European Union’s money supply

Percentage of currency notes in Australia’s money supply

Percentage of currency notes in New Zealand’s money supply

Percentage of currency notes in India’s money supply

The above data tells that India has a huge excess of currency. Moreover, according to Baba Ramdev, 90% of that currency is in the form of high denomination notes as per the information obtained through RTI. A nation where poverty line lies at Rs 26 for rural areas and Rs 32 for urban areas has 90% currency in the form of Rs 100, Rs 500 and Rs 1000! And this conspiracy is continuing since 1935 when the British created RBI. At that time, the highest denomination note was of Rs 10,000!

The so-called Baba Ramdev is not a baba. He is a rishi. He does not wear shoes or rubber slippers, but pAdukA (see behind him) that our ancient rishis like garga, bharadwaj and heros like Krishna and Chanakya used to wear! Not only that, he can also speak the language of the rishis viz. Sanskrit with native fluency. Above all, he neither talks superstition nor spews religious hatred, but talks logically only what is good for the world.

Last year, when Baba Ramdev was fasting with a demand for banning Rs500 and Rs1000 notes, all the big media houses from TV Today network (Aaj Tak, Headlines Today, India Today etc) to CNN IBN, NDTV 24×7, who claim to the upholders of democratic debate and unbiased opinion, were criticizing Baba Ramdev by calling him impractical, extremist, childish and illiterate. The free media  who always opposes any law regulating it, on the grounds of ‘freedom of speech’, was debating on perceived personal characteristics of Baba Ramdev instead of debating on the pros and cons of banning high denomination notes. For the  media, the freedom of speech means hiding real issues and promoting non-issues like Rihanna goes topless in sexy Hawaii holiday pics or Rakhi Sawant says Baba Ramdev is hot and sexy. The Indian media houses are great hypocrites and I will try to explain in the next article about probable reasons as to why the media always tries to defame Baba Ramdev and generate negative prejudice in common people against him.

On the other hand, our honest economist Dr. Manmohan Singh (studied from Cambridge and Oxford) and the clever lawyer Kapil Sibbal (studied from Harvard) were calling this demand of Baba Ramdev impractical. And they were right, else how could they practically loot common people by keeping them unaware ? Had the media and politicians let the common people know the ill-effects of currency and had more people supported Baba Ramdev, a huge populist blow would have eroded the chances of future loot. Preventing loot by politicians and capitalists is obviously impractical. And people making such impractical demands deserve some beating so that they do not make such impractical demands in future. Isn’t it ?

To conclude the article, paper currency was invented to loot common people and today high denomination currency is printed solely for the purpose of looting. High denomination currency is not required and we must take immediate steps to move towards a currency-free economy.

Here is a video in which a thinker of Bharat Swabhiman Trust of Baba Ramdev explains this topic of Black money in great detail. This video can form a good starting point for those who want to do further research on this topic.

In the next article, we shall see how eradicating Indian Black economy has the potential to trigger a chain of events ultimately leading to the economic downfall of Europe and US and the economic rise of South Asia and Africa.


Here I am making a collection of news reports showing the ill-effects of currency. I’ll add as and when I find them.

Fake notes, real threat – The Hindu

This entry was posted in Economics, Politics, Ramdev and tagged , , , , . Bookmark the permalink.

3 Responses to How black money is responsible for terrorism and crime

  1. sunerjee says:

    काम, क्रोध, लोभ, मोह, अहङ्कार and मत्सर्य were the biggest enemy when money had not been invented by the crooked kings. In अलक्ष्मी नाशन सूक्त Rig Vedas spells out the strategy for poverty removal.Social leadership
    RV 10.155
    RV 10-155 ऋ 10-155 (Role of Society & Leadership)
    सामाजिक दायित्व
    अरायि काणे विकटे गिरिं गच्छ सदा¬न्वे।
    शिरिम्बिठस्य सत्वभि स्तोभिष्ट्‌वा चातयामसि ॥ ऋ 10-155-1
    स्वार्थ और दान न देने की वृत्ति को सदैव के लिए त्याग दो. कंजूस और स्वार्थी जनों को समाज में दरिद्रता से उत्पन्न गिरावट, कष्ट, दुर्दशा दिखाई नहीं देते. परंतु समाज के एक अंग की दुर्दशा और भुखमरी आक्रोश बन कर महामारी का रूप धारण कर के पूरे समाज को नष्ट करने की शक्ति बन जाती है और पूरे समाज को ले डूबती है.
    Banish the attitudes to be miserliness and selfishness, of not being disposed to give money in charity. Misers being blind to suffering &deprivation of fellow beings bring misery upon society. The resulting deluge caused by famines and social misery will drown you also in it.
    चत्तो इतश्चत्तामुतः सर्वा भ्रूणान्यारुषी ।
    अराय्यं ब्रह्मणस्प्ते तीक्ष्णशृङ्‌गोदृषन्नहि ॥ ऋ 10-155-2
    अदानशीलता समाज में प्रतिभा विद्वत्ता की भ्रूणहत्या करने वाली सिद्ध होती है. तेजस्वी धर्मानुसार अन्न और धन की व्यवस्था करने वाले राजा, परमेश्वर इस दान विरोधिनी संवेदना विहीन वृत्ति का कठोरता से नाश करें.
    The life style of not sharing with others around us is destroyer of all creative activities before their inception. Strong social leadership should work to destroy such insensitive tendencies.
    अदो यद्दारु प्लवते सि¬धोः पारे अपूरुषम्‌ ।
    तदा रभस्व दुर्हणो ते¬न गच्छ परस्तरम्‌ ॥ऋ10-155-3
    ऐसे स्वार्थी प्रजाजन इस संसार रूपी समुद्र में बिना किसी लक्ष्य के जल पर बहते काठ जैसे हैं . उस तत्व का सदुपयोग करके समाज के संकट को दूर करो.

    Such unguided people are like an aimlessly floating piece of wood in the river of the society. It becomes the duty of elders in society to provide guidance to such people.( to motivate them by setting an example in public welfare services)
    यद्ध प्राचीरजग¬न्तोरो मण्डूरधाणिकीः ।
    हता इ¬द्गस्य शत्रवः सर्वे बुद्धुदयाशवः॥ऋ10-155-4
    यह अलक्ष्मी एक लोहे के दाने छर्रे दागने वाली तोप जैसी है जो अनेक जनों को हिंसित करती है. इस के चलते शूरवीर जनों के सब प्रयास जल के बुलबुलों के समान नष्ट हो जाते हैं

    Uncharitable social malaise of not sharing with community is like an automatic machine gun that shoots out innumerable bullets that kills all efforts like water bubbles aimed at public welfare. When such abominable, potentially violent, situations get to be known, they require to be crushed very strongly by positive social forces.
    परीमे गाम¬नेषत पर्यग्निमहृषत ।
    देवेष्वक्रत श्रवः क इमाँ आ दधर्षति ॥ऋ 10-155-5
    इस भयंकर आपदा से निपटने के लिए समस्त देवताओं द्वारा गौ को वापस ला कर , यज्ञाग्नि के द्वारा भिन्न भिन्न स्थानों पर स्थापित किया गया. पौष्टिकता और अन्न से प्राप्त समृद्धि को कौन पराभूत कर सकता है.ने

    When society takes steps to rehabilitate cows based agriculture in households and enables people to grow their own agriculture produce, no body can stop public prosperity. This is the modern concept of ZERO FOOD MILES, Decentralized Economy and SMALL IS BEAUTIFUL
    Prosperous and rich was not one who had lot of gold or money , but one who enjoyed healthy mind in a healthy body in a peaceful environment .
    Modern wisdom calls it Gross index of Happiness, GDP is no longer the accepted criterion.of progress and prosperity of a nation.

  2. chandrika says:

    Good content and great writing skills.. 🙂

    looking forward for more posts.. 🙂

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