Re: [IAC#RG] "good" BLACK Money

The SlowMoney concept is too advanced for India.
However, the basic principle that money should be
invested in assets a person understands instead of
exotic financial instruments is unexceptionable.

What gets overlooked in this fake "black money is the
cause of corruption" debate is the role of CREDIT.
There is formal credit (ie. the White Credit) which
keeps pumping the balloon up) and informal BLACK
Credit which keeps a reality check on the Real Economy.

If there was no Black Money, India would cease to function
since all the business is actually done in black and
reconciled later in the books of accounts.

Which is why institutions like these MICRO-Finance
companies are insidious and deserve to be expelled
/ banned.

See how the informal sector operates.
1) A rickshaw puller "hires" a rickshaw for Rs. 50
for a 12 hour shift, everything after that is his profit.
2) A vegetable vendor commits to buying Rs. 900
worth of vegetables in the morning on the promise
that he will pay back Rs.1,000 in the evening. The
rest being his profit.

There is nothing wrong with this traditional model
until some Western styled economists look into
the TIME aspect and declaim .. ONG that is equal to
1,200% interest per year !!. What they don't understand
or factor in is that THIS is what provides CHEAP
services for consumers and keeps the informal
sector going with minimal social security burden
on the state.

Sarbajit

On 3/6/13, Vidyut Kale <wide.aware@gmail.com> wrote:
> While we focus on how money moves, the ideas on slowmoney.org are
> interesting as well. I found them interesting in the sense of having
> potential on the grassroots level.
>
> Better money brains than me ought to take a look.
>
> Vidyut
>
> On Tue, Mar 5, 2013 at 11:51 AM, <ssr.singh@gmail.com> wrote:
>
>> Really thought provoking. Thanks indeed. SR
>> Regards,
>>
>> SR