In this discussion with Maurice Jackson of Proven & Probable, I discuss India’s currency catastrophe after Modi’s demonetization.

The government’s attack on 500- and 1,000-rupee notes is creating chaos across the country. The poor, small businesses, and the informal economy are being hit hardest, while ordinary people are being forced into bank lines, left in uncertainty, and driven by fear. Gold and silver remain essential protections when governments destroy trust in currency and banking.

Watch the full discussion below:

Key Takeaways

• India’s demonetization is creating a currency catastrophe across the cash-based economy.
• The poor and informal workers are suffering the most from the sudden loss of usable cash.
• Small businesses and daily commerce are being disrupted by arbitrary state action.
• The policy is unlikely to end corruption; it is likely to create new forms of corruption and greater state coercion.
• Gold and silver remain important safeguards when governments attack cash and banking freedom.