Babylon's Bankers

INDIA SEEKS US TECHNOLOGY TO TRACK COUNTERFEITS

As most of you know, I've been following the alleged counterfeit bearer bond story for some time now, since at the minimum it indicates that there is at least a major market for such things, and major players behind their manufacture. But there's another side to this counterfeiting story, and that is the state- or other organization-sponsored counterfeiting of currency, which seems, in India's case, to have reached serious proportions:

India looks at the US to check fake currency notes

The U.S., as the article notes, has a massive database of counterfeit notes - including photographs - and histories of their circulation, and India is seeking the technology.

But we can expect another "directed history narrative" to emerge here, as financial elites and private central banks seek to clamp down even more tightly on the control of their money monopoly. That narrative will go something like this: (1) more and more stories will be written, featuring the growth of counterfeiting as a threat to international financial security in a volatile time; (2) nations like India will increasingly look to the US to provide that technology.

Now, before we continue further with the projected emergence of  directed history narrative, let's pause right there. Anyone following Wikileaks, Julian Assange, the whole Anonymous story, or, for those with longer memories, especially the whole INSLAW scandal from the 1980s Reagan administration, will be aware that the US government is notorious for placing hidden back doors in the technology and software it "shares" with other countries, and one can only imagine that the same would hold true particularly in the case of technologies to monitor and track counterfeit currency notes.We can readily imagine India will seek assurances - behind closed doors of course - that the USA will not do this, and of course, the USA will politely reassure the Indians, and go ahead and do it anyway. And India, no doubt, will vet the technology themselves.

That in mind, the next step will be for banks to site "growing security problems with circulating currency," and push for a truly cashless, virtual electronic money, and side-stepping the whole issue of the fact that even such electronic money is not completely secure. After all, any system can be hacked, especially if the hackers engaged in the process have major state backing and ties to the community circulating the software to begin with. The other fly in the ointment is the growing cynicism worldwide toward governments and, more importantly, the central banks behind them, as the growth of local currencies attests.

See you on the flip side.

13 thoughts on “INDIA SEEKS US TECHNOLOGY TO TRACK COUNTERFEITS”

  1. There is an entirely different backstory here. Look at the progression of events in India, which is as you know one a GLD consuming nation. Late last year the gov’t promised to degreg (Wash consensus) the retail and insurance sectors. The plan was pulled in Dec. During late 2011 India also passed over the US and awarded the fighter contract to France. Then the US launched its sanctions on Iranian oil. The INR peaked in Feb and has been on a steady slide lower ever since now down to record low on the cross. What else happened. India rejected the sanctions as an unilateral. Inda was also you will recall swayed away form the IPI pipeline by the US-nuke deal, and just agreed to take supply form the TAPI (legacy of the nuke/GE deal?) In Fe/March India imposed taxes on gold imports to stem the flow (suggesting that it was impairing the current account).

    Looking at the INR against other EM currencies it doesn’t look totally out of line as Europe implodes. But the attack has been relentless and has a stink of speculative fervor (targeted). The FX markets are huge, something like 4T a day in turnover.

    Fast forward to this story about counterfiet. Going back to your own book on BB and the experience of the colonies and the British efforts to destroy script via counterfeit (while the colonies themselves were short of bullion). Well India is long bullion and the world is theoretically short – barring ETF flows.

    India has a huge private stock of gold.

    Recall back in 2009, India bought gold form the IMF (delivery? another issue)
    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aa6oc6Wz9Ftg

    “India, the world’s biggest gold consumer, bought 200 metric tons from the International Monetary Fund for $6.7 billion as central banks show increased interest in diversifying their holdings to protect against a slumping dollar. The transaction, equivalent to 8 percent of world annual mine production, was the IMF’s first such sale in nine years and propels India to the ninth-biggest government owner globally, according to figures from London-based research company GFMS Ltd. ”

    Gold was $1000 at that point.

    Not sure how it all fits together, but the story you sight fits into a broader mosiac that is as yet unclear.

    1. Oh, almost forgot in the context of the article this morning about the ECB possibly rating its own collateral (vs. cartel) that India received a warning from S/P and then a downgrade form Fitch to help along the deval.

  2. Non-white countries are constantly looking to take technologies from us. China, for instance, isn’t very creative. It just copies Western ideas.

  3. Robert Barricklow

    Just like in the U.S. drug business. Only authorized dealers in heroine, cocaine, marijuana, ect., may be distributed via the “authorized” illegal pipelines. The same goes for counterfeit money of ALL central banks. Probably orchestrated in some unknown channels through BIS strategies.

      1. Robert Barricklow

        Holy Cow Batman!
        Holy Swiss Cheese Banking …Is Smelly!
        Even Limburger smells better.

          1. Robert Barricklow

            No money no honey was a phrase I heard often in Bangkok. And if you had the money, you weren’t smiling three days later.

            R & R just ain’t what it’s cracked up to be.

            And don’t tell me that hairy woman fly upside down joke, because she already …

          2. that type of behavior will stick around four generations, best not too swim in those waters….me love you long time aint what its cracked upto cracked upto be.
            Pass the flouride i got a headache.

          3. Robert Barricklow

            Like the Laotian song, that sounds like
            bo-bo-pin-yuan-doke;
            the closed translation” “No Sweat”.

          4. when the heck did they start adding 2 drops of tabasco too deviled eggs and caesar salad…. ..corrupted bunch always fiddling with the recipes

            On a side note quick question, was it a Italian or German gun that took out Jack. gotta be a fourth option.

          5. Robert Barricklow

            I drive with 4 on the floor & a fifth under the seat.

            There’s goota be a 5th option.

Comments are closed.