Saturday, June 7, 2014

Rethinking Money-IV

Who owns the money or the capital? Particularly, the kind of money that belongs to common pool. For example, the money deposited by way of donations at a temple or a gurudwara. By this fact, there are thousands of tonnes of gold, silver and other valuable forms of stones etc deposited in the temple vaults. Who owns this money? If it is owned by the people, who represents the people - the government or the deity of the temple? If it is the government, it would be ultimately owned by the power elites of the current regime. If it is owned by the deity, it is owned by all those who respect that faith and faith related institutional network. India is governed monetarily by the western notion of singular control of money in the hands of power elites. They subvert it by choosing the term 'social contract' instead of any established faith-based practices. That is why any control of money by plurality of institutions is ruled out. We are ruled by monochromatic notions of monetary control. The central banks think in terms of only fractional reserve banking whereas the faith based institutions aggregate wealth by donation and philanthropic efforts thus by creating only the surplus and that too permanent surplus of capital. India needs to move from monochromatic control of money to poly-chromatic control where not one central bank would print money only. Anybody can print money but within the limit set by the amount of silver or gold, one has in its vault. There should be a straight-jacket on everybody not to issue money more than one is authorized to. Let there by thousand saviours of India and not the one saviour of India as is assumed by making Rupee the only legal tender option in India.

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