Demonetization is Corporate-led Attack on People! - CPI (ML) Red Star Polit Bureau

21 November 2016
Modi’s demonetization announcement withdrawing 500 and 1000 rupees notes from circulation with effect from the midnight of 8th November has resulted in utter economic chaos and untold misery to the vast masses of common people in the country. As the so-called surgical attack along the Line of Control has boomeranged and the Kashmir situation is becoming worse, Modi has resorted to this dramatic move with the aim of cashing it for the forth coming elections to UP, Punjab like states. There is no economic justification for demonetization as a tool for curbing black money. So, Modi has put forward this anti people move by hiding himself behind the garb of patriotism. This sudden withdrawal of 86.4% of the currency value in circulation without making any efforts to replace it with notes of lower denominations for daily transactions has resulted in unprecedented collapse of people’s purchasing power. The catastrophic outcome of this credit squeeze has been a total devastation of all productive activities including agriculture, retail trade, traditional rural employment and so on. Since 95% of the work force in India is in the informal or unorganized sector where the whole economic transactions are cash based, the outcome of this move has been a disastrus credit crunch leading to halving of the countries growth rate within a span of two weeks.

It is a well-recognized fact that black money is generated by the present economic system, the ruling regime which is in unholy alliance with corporate billionaire black money holders like Ambanis, Adanis, Mallyas etc who have already stashed away more than the country’s national income in foreign tax havens. While ascending to the throne of the prime minister two and half years back Modi had promised that he would bring back this black money and put Rs 15 lakhs in the accounts of every Indian within hundred days. Instead of taking any steps in this regard, he was protecting corporate black money holders and even encouraging them to accumulate wealth by channeling their illegal money as FDI flows in to India through the Mauritius route. It is even officially recognized that almost 80% of the black money generated by the ruling regime is in ‘Swiss banks’. Lion’s share of the remaining 20% of the black money that is within the country is stored in the form of real estate, land, gold, company shares, drug trafficking etc. Only 5% of the currency in circulation is held as black or unaccounted cash. It is for capturing this 5% the 86.4% of the currency is withdrawn!

Instead of supplying the requisite badly needed small denomination notes, the advance printing of Rs 2000 notes is to appease corporate billionaires. At the same time, it is like rubbing salt in the wounds of common people. Even as 60 people standing in the queues have died so far, under the cover of demonetization Modi has also dared to freeze the hard earned money of the peasants and common people in the corporate banks, agricultural credit societies, housing societies and so on. This has altogether paralyzed the rural and agricultural economy. All these expose that the true intention of this corporate-led assault is not eradication of black money, but to unleash a social engineering for draining away the meagre earnings of the common people in to the coffers of corporate billionaires through the banking system.

In this crucial situation, the Polit Bureau of the CPI(ML) Red Star which met at New Delhi on 19-20 November appeals to the workers, peasants and all oppressed masses to come out on the streets and resist this brutal corporate led assault by the Modi government.

Demonetization not for abolishing black money, but an attack on people, resist it!

Confiscate all black money at home and abroad!

Put Rs. 15 lakh in the account of every citizen!

K N Ramachandran

General Secretary

CPI(ML) Red Star

New Delhi

20th November 2016
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The Communist movement in India has a history of almost a century after the salvos of October Revolution in Russia brought Marxism-Leninism to the people of India who were engaged in the national liberation struggle against the British colonialists. It is a complex and chequered history.