After the 19 days of government initiative of demonitisation of currency notes of 500 and 1000 has proved as already estimated and protecting the national interest and preventing excessive speculation of price for Gold, stock and other commodities. the action brought indian banks with very high money deposits which made substantially recovery of money from market.
the government as being communal and capitalist in its idea will en-devour and urge to end the gold confidence in market as they want to shift the currency underline assets from Gold to stock market which will be high liquid and floating in its nature. gold always persist for stability in market which is always enemy for capitalist market.
The GOI will now try to break the circuit of gold held by public as the continuous halt on sale and purchase of gold is decreasing it's value which will ultimately effect the confidence and every passing day it will loose its value or the price of gold will collapse so the medium of exchange and borrowings from it in India.
the policy of nation will be that every person shall assess their gold assests before the banks or revenue departments and shall be preserved under banks in exchange of bonds which shall acknowledge that banks and government will guarantee to exchange the same when needed or specifically as specified.
the government will sell or deposit such gold received from public before world banks or other monetary institutions for loans which will be invested in infrastructure and military expansions.
people may think it as beneficial but what it will ultimately lead to public debt and inflation.
author; Athar Mudasir
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