DavidsSling
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Will the Economic Collapse of India happen in 2020? India’s banking collapse began as far back as 2007 and 2008, before the global financial crisis and stock market crash, when a lot of investments were made. Those investments created a lot of bad loans that needed to be cleaned up in order to spur lending. Banks are the most significant source of funding for
Indian companies. The banks have stopped lending because their balance sheets were getting clogged with non-performing assets. India’s banking system has lost $24.8 billion dollar due to non-performing loans of 416 defaulters being written off, CNN-News18 reported last month. In the last three years alone, the Indian banking system has lost more than 26 billion Dollars on accounts of non-performing loans of 416 defaulters. Subsequently, any deterioration of banking has a deep and durable shock on the economy and will cause economic collapse sooner or later in India.
The recent NPA crisis has been followed by a sharp downturn in investment expansion and a compelling economic slowdown. Among the many causes that the crisis has been attributed to, a critical one is the influence of government-owned banks in the system. In India, government-owned banks, or public sector banks PSBs, account for seventy percent of bank loans.
All along the late banking collapse, they were hit worse than private and foreign banks and accounted for ninety percent of the total NPAs. The PSBs had to make rations for these bad loans, Contributing to the corrosion of their capital. The government had to re-capitalize the banks.
The aggregate amount of capital infused by the government in PSBs since 2008–09 is US$42 billion. Roughly two percent of India’s total GDP. For a government that is faithfull to fiscal strengthening, this is a severe budgetary burden.
There are grave institutional concerns with these PSBs, which succeeded in being in 1969 as a result of bank nationalization. India is in a deep crisis, and these kinds of news are slowly spread as eventually, bank accounts will be frozen and the next economic collapse will finally arrive! The govt is fudging all numbers, and the RBI has bailed them out for the moment.
But hiding facts won't improve the economy...so the last step will be confiscating deposits!! With an economic collapse building, the Reserve Bank of India is struggling to reassure the public that the banking sector isn't imploding.
It is coming to a bank near you soon. The Punjab Maharashtra Co-operative Bank, PMC, in India, has been busted cooking the books and giving false statements on non-preforming loans of Mumbai-based real estate developer Housing Development & Infrastructure Ltd.
As Reuters reports, PMC disguised the bad loans using 21,000 bogus accounts, which has freaked out depositors, investors, and government officials. Suits them right to entrust the banks. Instead of abiding by the tried and actual traditional precious metals. You should have kept all your Rupees in silver and gold. You can never trust A BANK OR YOUR GOVERNMENT!
The crisis development at PMC Bank is but the tip of the iceberg of more substantial, pending issues in India’s banking sector. Your money in the bank coffers is not really your money; it belongs to the bank and ultimately to the state. Capital controls... Bail-in's.... 'And it's all gone by a huge stock market crash.’ This can't happen if you take ownership of either Gold or silver or even bitcoin.
This is the lesson to be learned here. Also, history shows us that India is the testbed for anything nasty The Power That Be have planned for us 99% It happens first in India, lessons are learned, the people studied. Then it is rolled out in the west. The DEPRESSION IS COMING SOON TO A CITY NEAR YOU. Here it comes. It is hitting already in Communist China now India, and you are getting a taste in the US as the Repo rates are going crazy.
