Media Watch: Meath VS Reality
….Many naive folk think demonetisation will deal a body blow to black money and shift India towards a clean, cashless economy. Sorry, but the benefits will be limited. Black money is both a stock ( that is, a hoard of past untaxed money) and a flow ( the constant generation of fresh untaxed income).
As a stock, probably not even 2 percent of historical black hoards are held in cash- almost all have been converted to gold, real estate through inflation, so no savvy person holds large hoards. The vast bulk is converted into assets across the world and much is brought back to India ( Via Mauritius and othjer legal routes) to be invested in Indian shares and real Eestate. The voerwhelming stock of black money has been laundered into white ages ago.
-Excerpt from SWAMINOMICS BY SWAMINATHAN S ANKLESERIA AIYER SUNDAY TIMES OF INDIA, NOVEMBER 13 2016