Early Truth In Lending Disclosure Statement: Fill & Download for Free

Answering for consumers located in the United StatesThe meltdown started in the fall of 2006, with the collapse of Merit Mortgage in Kirkland, WA. Reports of a fraternity-like culture where the owners hired their frat brothers who knew nothing about lending can be found by a simple google search.The party's over at Kirkland mortgage companySo we start from 2006. At that time, the Conference of State Bank Supervisors had already written the law that President Bush would sign in the summer of 2008:2008The SAFE Mortgage Licensing Act, which required loan originators who work for a mortgage broker or non-depository mortgage lender to take a 20 hour pre-licensing course, pass a comprehensive national exam, take continuing ed each year, pass a background check, submit a set of finger prints, and set forth requirements such as "no felony convictions within the last 7 years and no felonies at all if the felony was a financial related crime." Here is The SAFE Act:Code of Federal RegulationsThe SAFE Act mentions "subprime" but the industry quickly found ways to say "subprime" without using that word because subprime lending was associated with predatory lending. Instead, we started using the phrases, "non-traditional loans" or "non-prime loans" and the first place we see these euphemisms emerge in the law is in the above mentioned ^SAFE Act.2008Housing And Economic Recovery ActSigned by President Bush in the summer of 2008, this law gave us many, many things but I'lll just focus on mortgage lending:1) The above mentioned SAFE Act2) The TARP Funds (troubled asset recovery program) which demanded banks accept capital whether or not they needed it, so more banks like Washington Mutual would not be in danger of failing. Note that after President Obama was elected, he re-allocated the TARP funds to help people obtain loan modifications. This program, while widely criticized is seen as a success.3)"If Fannie Mae and Freddie Mac become insolvent, the government shall guarantee its debt." AND F&F went insolvent about a month and a half later. As of this writing, Fannie and Freddie are still being run under government conservatorship. More fun and games here:Federal takeover of Fannie Mae and Freddie MacThe HERA was a bailout of the banking and mortgage lending industries. It was widely unpopular when President Bush signed it into law in the summer of 2008, but today as we look back, the bailout probably saved us from a global economic crisis and another Great Depression. Today, in 2016, Fannie and Freddie have completely repaid the Treasury all the money they borrowed, the list of failing banks has shrunk back down to a reasonably low level, home equity has returned and many underwater homeowners are no longer underwater. It worked. Will we do it again if we face a similar crisis? There is absolutely no doubt in my mind that the government WILL bail out the banking and mortgage lending industries should this happen again. Whether or not you approve of HERA, it averted disaster and for that reason alone, a future Congress will likely pass something similar.Don't like helping the big evil banks? Then you and the independent senator from Vermont can go create your own land of free unicorns on some other imaginary planet.Note: All investment banks either failed outright or were acquired during the 2008 crisis except the Vampire Squid: Goldman Sachs.Let's continue.With Countrywide Loans collapsing in the summer of 2007 and Washington Mutual's slow, painful demise, the federal regulators who were suppose to be regulating laws that were put into place in the 1970s such as the Truth in Lending Act and the Real Estate Settlement And Procedures Act, started realizing that they need to do something. So we saw another law:2009The Mortgage Disclosure Improvement ActMDIAThe Federal Reserve and the Federal Trade Commission were suppose to be regulating the Truth in Lending Act. And they didn't do a very good job of holding banks and lenders accountable. So they whipped up this law as an attempt to improve the Truth in Lending Act. MDIA is part of TILA. This law went into effect in the fall of 2009. Without going into long detail about MDIA, the main assault was against liar loans. MDIA required lenders to make sure people had the ability to repay their loan. That mean no more "no documentation" loans. Lenders began asking for tax returns, W-2, bank statements, and other old-fashioned documents that we use to collect and analyze back in the good old 1980s when they were still playing The Cure and Pat Benetar and Heart on our FM radios. Many loan originators began leaving the industry at this time because they could not obtain a license due to previous felony convictions or they thought it was "too hard" to put loans together.2010The Dodd Frank ActPresident Obama signed the Dodd Frank Act in 2010. The Act is massive at well over 2000 pages, but only 3 sections are directed at residential mortgage lending. The rest is aimed at Wall Street. The first thing The Act created was The Consumer Financial Protection Bureau, Senator Elizabeth Warren's idea. The CFPB now regulates all federal law governing residential mortgage loans (among other things) except Fair Housing, which is still regulated by HUD.By the way, all the links to the laws can be found by scrolling down to the VERY BOTTOM of this page:Regulations > Consumer Financial Protection BureauSince The Dodd Frank Act is so massive, the CFPB began enacting rules one at a time, which gave the industry time to prepare and train their staff. There are so many rules attached to the DFA, it would take quite a long time to list them, but I can do it if you need them. Just let me know. The one we just finished from the fall of 2015 is called the TILA RESPA Integrated Disclosure Rule (TRID) which gave the industry a new, combined early consumer disclosure called the "loan estimate," and a new "closing disclosure." TRID is not a separate law; it is part of the Dodd Frank Act.2011Federal Reserve Board Rule on Loan Originator CompensationThis rule was a direct reaction to predatory lending and the meltdown. The Federal Reserve Board was TEN YEARS too late on this issue so now the FRB no longer gets to regulate The Truth in Lending Act.This rule has three components:1) Loan originator cannot be paid by the customer and also by the lender funding the loan.2) Loan originators cannot be paid a bonus for selling a higher rate or for selling a specific loan program or specific loan terms.3) Loan originators cannot "steer" people into a lower quality loan (think subprime) for the sole purpose of receiving higher compensation.The above three prohibitions helped eliminate the most egregious forms of predatory lending. The FRB Rule was added into The Dodd Frank Act.FRB: Press Release--Federal Reserve announces final rules to protect mortgage borrowers from unfair, abusive, or deceptive lending practices that can arise from loan originator compensation practices--August 16, 20102013Unfair Deceptive and Abusive Acts and PracticesThis law attacks deceptive advertising, which continues to run rampant in the mortgage industry. Don't believe me? Open your spam bin and see deceptive mortgage ads every day promoting products and rates that may or may not exist, that only a very small percentage of people may qualify for, or ads that make it look like you're dealing with a government agency but instead it's just a lead generation vortex designed to suck you in and sell you as a lead to 100 different loan originators. If you're a hot lead, you get sold as a Glengarry Glenn Ross lead and lead gen companies can make some serious coin selling your lead by live-trasnfering you to a licensed loan originator who can get you to sign on the line that is dotted. Beyond your spam bin there are other deceptive ads running on the radio, or coming to your house in the form of a letter or postcard. This Act puts a black and white definition to the words Unfair, Deceptive, and Abusive Acts and Practices and CFPB now has the muscle to enact fines, penalties, order restitution and to make those fines against not just the company but also the individuals, including upper management.http://files.consumerfinance.gov/f/201307_cfpb_bulletin_unfair-deceptive-abusive-practices.pdfSo what we have here is a wave of consumer protection legislation. When things go bad, consumers complain to the politicians and the regulators and we end up with a bunch of laws aimed right at the residential mortgage lending industry. We went through this around the 1960s-70s. During that consumer protection wave the industry saw the following laws passed:Fair Housing ActTruth In Lending Act (TILA)Real Estate Settlement And Procedures Act (RESPA)Fair Credit Reporting Act (FCRA)Equal Credit Opportunity Act (ECOA)And now, as a result of the 2008 financial crisis and the long recession, we have seen the following laws passed:Secure And Fair Enforcement Mortgage Licensing Act (SAFE Act)Mortgage Disclosure Improvement Act (MDIA)Federal Reserve Board Rule on Loan Originator CompensationDodd Frank Act (DFA)Unfair Deceptive Acts and Practices (UDAAP)Many in the mortgage industry loves to criticize The Dodd Frank Act and drink the hatorade when President Obama's name is mentioned. I am not one of them.We needed the Dodd Frank Act. We needed all these new rules. Our industry only listens to law. We don't listen to "suggestions" from regulators. Not following the laws comes with consequences and those consequences are monetary in nature. So the company owners complain loudly about all the laws...Yet when it comes to the very end of the line, when we cannot delay the new law or rule any further, our industry always does the right thing and we start following the law....And the world doesn't end. Loans get written, people can buy, sell, refinance, we all make money and we survive and thrive just fine. In the future, we will look back and nod our heads in agreement that ALL the 2008-era laws were necessary, especially the Dodd Frank Act. Just like we look back and realize that laws like Fair Housing and The Equal Credit Opportunity Act were needed in the 1960s and 1970s.Note: States can make their laws tougher than Federal law and some have definitely done that in the wake of the financial crisis and many consumer complaints. Some states have added laws targeting predatory loan modification scammers, and requiring short sale negotiators to hold a loan originator license, laws that give consumers more protections when facing foreclosure, and laws directed at people who want to take advantage of people in foreclosure. Also, some states elevated the relationship between the loan originator and his or her client to that of fiduciary.Let me know how else I can help!

That the Japanese were prepared to surrender and the two atomic bombs were not necessary, as succinctly stated by British historian Max Hastings:The myth that the Japanese were ready to surrender has been so comprehensively discredited by modern research that it is astonishing some writers continue to give it credence.Let’s examine how the myth emerged and debunk it.The Big SixThe fate of Japan rested in the hands of the Supreme Council for the Direction of the War which consisted of 7 prominent figures of the Japanese military and political establishment.Emperor HirohitoMitsumasa Yonai: Navy MinisterSoemu Toyoda: Chief of the Naval General StaffKorechika Anami: Army MinisterYoshijirō Umezu: Chief of the Army General StaffKantarō Suzuki: Prime MinisterShigenori Tōgō: Foreign MinisterJapan was ruled by a military dictatorship. The army was more dominant than the Navy and wielded absolute political power. The minister was an actively serving general in the Japanese Army. He had the power to dissolve a cabinet if it opposed army’s policies and found a new cabinet more amenable to the ambition and demands of the military.Also, contrary to the popular but mistaken belief that Emperor Hirohito was merely a figurehead who was manipulated by the militarists and that he was kept in the dark about the war, the truth was that he actually had real political power and was fully aware of the course of the war and its outcomes. In an underground chamber, he monitored the progress of the war, domestic conditions, and inquired about war plans with the aid of senior military commanders. The hearing sessions during which the Emperor passively listened to major military plans were intended to create the misleading impression that he was controlled by the military. In reality, the emperor had questioned those plans, voiced his opinions, concerns and suggestions behind the closed doors.Therefore, military leaders and the Emperor had the power to make decisions that determined the fate of Japan. No one else outside of this exclusive circle could negotiate or carry out any diplomatic initiative without unanimous approval of the group. This very fact will explain why the various attempts at peace negotiation carried out by Japanese diplomatic and military representatives in foreign countries failed.Magic and UltraUltra: intelligence about anything related to the Japanese military. It comprised information derived from decrypts of military messages and radio intelligence.Magic: decrypts of Japanese diplomatic messages. Before the outbreak of war between Japan and the US, American codebreakers had begun intercepting and deciphered Japanese diplomatic communication. Thereafter, they had uncovered huge amount of diplomatic information communicated between Japanese officials all over the world. In 1945, Magic became highly successful because in many cases, Japanese diplomatic messages were deciphered and read before they reached the intended recipients.An elite group of intelligence analysts was entrusted with separating the wheat from the chaffs - analyzing the mountain of information gathered to extract actionable insights. Specifically, the analysts would scrutinize decrypts, retain only the most significant parts and translate them into English. Whenever advisable, the analysts would complement those parts with their own assessments + cross references to other texts and ultra information. Finally, they would assemble those passages into Magic Diplomatic Summaries - top-secret documents spanning 6–32 pages to be delivered to a small circle of US wartime leaders every day.The value of Magic consisted in its truthfulness. Because Japan’s leaders were unaware that US intelligence regularly broke their code and read their messages, they expressed themselves candidly in coded messages. This makes Ultra and Magic the most definitive evidential basis for assessing claims of Japanese intention in the last year of the Pacific War: including the claim that Japan was prepared to surrender.How did the myth originate?Since the end of the war, critics of the A-bombs have promoted the following two assertions:The Japanese were prepared to surrender and actively seeking to do so in 1945.US wartime leaders were aware of Japanese peace-seeking attempts.From both of these assertions came the judgment that the use of the A-bombs were unnecessary and war atrocities.Now to be fair, there is some truth in those two assertions.The source of that basis? - Declassified Magic documents.At some point after the war, the US government declassified wartime documents, among which were Magic documents concerning Japanese peace-seeking attempts in 1945 and American awareness of those attempts. When people alighted on those documents, they concluded that the Japanese were prepared to surrender and the two atomic bombs should not have been dropped.BUTWhat these people did not realize at the time was that the declassification was partial, meaning that the US government did not declassify in one go all there was to be declassified.Particularly, the first batch of information was released in the early 1950s and they contained no Ultra information and only partial Magic information, the latter of which was about Japanese peace negotiation with the Soviet Union since mid-July 1945. Being partial, the released Magic information was only a fraction of all Magic information related to all Japanese diplomatic overtures in 1945.These initial disclosures were followed by disclosures of translations of all archived Japanese diplomatic communications. These disclosed documents lacked all the remarks and edits made and attached by intelligence analysts as well as cross-reference to Ultra.In 1978, a relatively complete set of the Magic Diplomatic Summary was released. Finally in 1995, a complete set of the Magic Diplomatic Summary was released.Because the first and second batches of Magic information contained selected pieces that only indicated that the Japanese were seeking peace and were missing all the assessments and cross references by intelligence experts, people were misled into thinking that Japan was truly near surrender and that top-level US leaders were aware of this. The lack of expert assessments plus the missing pieces of sensitive information contained in subsequent disclosures allowed a false picture of historical reality to emerge. By the time the complete set of Magic information was released in 1995 which allowed the actual situation to be accurately and completely reconstructed, the myth had become well-entrenched in public consciousness after 40 years of perpetuation.That is how the myth developed and has lingered as long as it has. The misunderstanding created by partial declassification of Magic information which distorted historical reality and gave rise to the mistaken belief that the Japanese were ready to surrender. By the time all Magic information became public knowledge, this mistaken belief had gained so much credence that it became “historical truth”, and its proponents have refused to consider the other pieces of Magic information that contradicted their belief.This begs the question: what was the rationale of the partial declassification?The answer to this question derives from comparing the two batches of information released in 1978 and 1995. As it turned out, American codebreakers were reading diplomatic messages not only of Japan but also of other allied and neutral nations: Argentina, Belgium, Bulgaria, Chile, China, China, Japanese puppet state, Colombia, Cuba, Free France and Vichy France, Greece, Iran, etc… This amounted to an act of spying.Because the revelation of the fact that the US had been reading diplomatic exchanges of friendly nations could have jeopardized diplomatic relations with those nation, the US government chose not to disclose all Magic Information in one-go.Debunk the MythLet’s examine the MAGIC Information concerning Japanese intention in 1945. This body of information could be divided logically into 2 time frames: before and after 13th July 1945 - the date on which Emperor Hirohito personally intervened into diplomatic attempts.Content-wise, it can be logically divided into two categories: Intention toward the US and intention toward the Soviet Union.These documents had three underlying themes in common:The Big Six’s consistent lack of any desire for peace negotiation with the Western Allies.The rejection of Allies’ demand for unconditional surrender.The will to fight to the bitter end.On January 20, 1945, American codebreakers deciphered a message transmitted to French Ambassador to Japan Henri Cosme. According to the message:thinking people at the Court and in the Navy . . . appear inclined to believe that an end must be put to this war.The so-called thinking people in Cosme’s message did not include Army leaders. As explained the above, Army leaders wielded absolute power in Japan’s government. According to Cosme, they were not among those who wanted to end the fighting.A summary report of 1944 produced by the German military attache in Tokyo indicated that the attitude of the Japanese government toward the war had changed very little. The report points out:recent increases in preparations to defend the Homeland and noted that total mobilization is progressing. The Japanese Army and the circles it influences were determined to go through with the war without compromise on the side of Germany.A Magic decrypt of a mid-January 1945 cable sent to Berlin by German Ambassador Stahmer in Tokyo reported the precarious situation of the cabinet under Kuniaki Koiso. Stahmer expressed concern over the attitude of the Japanese Navy and warned that anew Cabinet would probably be formed of liberal personalities whose past would facilitate a settlement with the Americans. Such a Cabinet would then be overthrown, however, by ultranationalist groups who demand total war until final victory and would oppose with their full strength - and probably with violence - a compromise Cabinet. If these nationalist groups obtain control - which is possible - it will mean a substantial increase in Japan’s total war effort.On 12th March 1945, a deciphered message sent by Swiss Minister Camille Gorge indicated that although the Japanese government “is being criticized more more.”, there was a conspicuous determination to continue the war:there was even talk of transferring the greater part of Japan's war industry to Manchuria in order to carry the war as far as possible to Chinese soilAfter the collapse of the Koiso cabinet on 5th April 1945, Magic experts monitored diplomatic traffic to gauge the intentions the new government led by Kantaro Suzuki and found some glimmers of hope in the assessment of the German ambassador in Japan:To judge by its inner make-up, the new Cabinet is devoting itself to continuing the war with the utmost exertion of energy. It is seeking to reach an agreement with Russia, even if this involves the greatest sacrifices. By this means, in addition to protection in the rear, a more favorable basis for later negotiations with America is expected.However, subsequent Magic information dissolved any hope of and end to hostilities. On 5th May 1945, Swiss Minister Gorge reported to his government that he:no perceptible difference between the present government and its predecessor.The Portuguese minister suspected that the Suzuki cabinet would be short-lived:since the military and the nation in general are not yet prepared to make peace.On 6th May 1945, a message sent from Portuguese Minister Fernandes to his government indicated that:the fortification of coasts and mountains continues, giving the impression that this country, like Germany, is disposed to prosecute the war to its very end without the least probability of victory.On 22nd June 1945, Swiss Minister Gorge noted in his report:Japan does not expect to win, but is still hoping to escape defeat by prolonging the war long enough to exhaust [her] enemies.When the battle of Berlin was raging, a Magic decrypt of a message dated 28th April 1945 indicated that Japan’s government instructed its military attache in Lisbon to:report as fully as possible on the last stage of resistance [in Berlin] in order to furnish reference material for the decisive battle in the Homeland. His attention was directed to matters such as the training of civilian militias, as well as whether the direct participation of the German High Command in combat and the death of Hitler in Berlin would brace German morale and determination to defend the capital to the bitter end.This message unambiguously demonstrated the determination of the Japanese military to commit the nation to one last desperate battle modeled after the Battle of Berlin.One Magic decrypt featured a message announced by the Vice Chief of the Japanese Army general staff to his attaches in Europe. Magic experts commented on this message that while the Vice Chief expressed pessimism over all aspects of the war and concern over a potential invasion of the Home Island, he also proclaimed thatJapan preserves unaltered her conviction of inevitable victory.Other Magic decrypts indicated that despite heavy destruction and death tolls inflicted, there was no sign that the military’s resolve to fight to the bitter end wavered. A total of at least 13 diplomatic messages indicated that the Japanese resolved to continue the war no matter how dire the situation had become for them, as implied by their plans to:produce synthetic aircraft fuelsorganize regional governments designed to continue the war in case an invasion occurred and occupy parts of the countryinduct boys ages 14 and older among Japanese colonists in China.You see? All the Magic decrypts showed an unequivocal determination to continue fighting and refusal to capitulate. This fact alone makes a mockery of the claim that Japan was about to surrender.Next, let’s examine the basis of the myth: Japanese peace-seeking attempts.There were indeed attempts to negotiate an end to war made by Japanese diplomatic and military representatives in foreign nations. However, promoters of the ready-to-surrender myth have either conveniently omitted or overlooked one crucial fact: those Japanese peace-feelers were not empowered to negotiate on behalf of the Japanese government. It follows that their intentions and attempts were not approved by the Japanese government (or more accurately the Big Six)MAGIC uncovered genuine attempts to secure peace for Japan by Japanese representatives serving in Japanese embassies in foreign countries. There were several notable attempts by in Switzerland, the Vatican, and Sweden.In Switzerland, Naval attache Commander Yoshiro Fujimura sought to establish a diplomatic channel to negotiate peace between between the US and Japanese governments. I recounted his commendable attempt here. However, his attempt ended in utter failure due to Japanese military leaders’s apathy toward any peace talk with the US or Britain.Simultaneously with Fujimura’s endeavor, Japan’s military attaché in Zurich and Basel, Lieutenant General Seigo Okamoto, personally made an attempt to negotiate peace with the US. He explained his intentions to Army Chief of Staff Umezu. He hoped to gain official blessing for the talk by appealing to his long-standing friendship with Umezu. But Okamoto’s attempt also failed utterly.In Stockholm, minister Suemasa Okamoto attempted to persuade the Swedish government to facilitate peace talk between the US and Japan. Unfortunately, his commendable but unapproved attempt was flatly rejected by the vice chief of the Imperial Army General Staff as revealed by Magic decrypts dated 24th June 1945:As we have said before, Japan is firmly determined to prosecute the Greater East Asia war to the very end. There is a report, however, to the effect that some Japanese official stationed in Sweden is making peace overtures to America. That is demagoguery pure and simple, and if you have any idea as to the source of those reports please inform us.These genuine peace attempts had two commonalities:They were initiated by Japanese representatives in foreign countries, far away from the military-controlled government in Tokyo.They all failed due to army leaders’ lack of interest in peace talk with the Western Allies.The 2nd point is telling in that it demonstrated the power of army leaders in any political matter: including diplomacy. Without their authorization, no one was entitled to negotiate with the Allies. The fact that all of these secret peace talks failed utterly pointed to a complete lack of desire of army leaders to negotiate peace with the Allies, let alone surrender.That refusal to capitulate and the determination to keep fighting will become more obvious through examining MAGIC documents concerning Japanese diplomatic dealings with the Soviet Unions.Japanese dealing with the Soviet UnionWhile the Big Six shunned negotiations with the Allies, they chose to negotiate with the Soviet Unions to effect an end to the war on terms favorable to Japan. Indeed, a topic that drew great attention from Magic analysts was Japan’s evolving relation with the Soviet Unions which developed from:Japanese wartime leaders’ concern over the prospect of Soviet violation or cancellation of the Neutrality Pact (signed in April 1941) which would likely entail Soviet military aggression against Japan in Manchuria.The hope that the Soviets could somehow be persuaded to mediate an end of war. This hope arose much later in 1945.Since the start fo 1945, Japan’s foreign ministers, Mamoru Shigemitsu and later Shigenori Togo instructed Japanese ambassador to the Soviet Union Naotake Satō to gauge Soviets’ intention toward Japan. The Japanese government feared that as the defeat of Germany was inevitable and Japan’s situation was deteriorating rapidly, the Soviets would exploit Japan’s weakness to opportunistically attack and seize Manchuria.Through several meetings with Soviet foreign minister Molotov, Sato realized that Japan was facing potential danger posed by the Soviet Union and urged the Supreme Council for the Direction of the War to make concessions to forestall Soviet hostile moves.Starting since June 1945, Magic decrypts revealed intriguing Japanese intention with regard to the Soviet Union.On 1st June 1945, Togo sent Sato the message below:In view of our situation both at home and abroad, it is quite clear that we will find it extremely difficult to reach any settlement with Russia. We must realize, however, that it is a matter of the utmost urgency that we should not only prevent Russia from entering the war, but should also induce them to adopt a favorable attitude toward Japan. I would therefore like you to miss no opportunity to talk to the Soviet leaders.To discourage the Soviets from entering the war against Japan, Japanese diplomats attempted all kinds of talks such as forming an alliance, renouncing fishing right in exchange for Soviet supply of oil, renouncing the terms of the Treaty of Portsmouth that ended the Russo-Japanese war, etc…Of course, the pragmatic Soviets were fully aware that the Japanese were just trying to buy time to delay defeat. Hence, they had no interest in dealing with the Japanese.Soviet indifference alarmed Togo and compelled him to try harder in the diplomatic gamble. On 11th July 1945, he sent Togo the two cables below:We are now secretly giving consideration to termination of the war because of the pressing situation which confronts Japan both at home and abroad. Therefore, when you have your interview with Molotov ... you should not confine yourself to the objective of a rapprochement between Russia and Japan but should also sound him out on the extent to which it is possible to make use of Russia in ending the war...While we naturally hope[d] to obtain a treaty through negotiations between Hirota and Malik, those talks are also intended to find out the extent to which it is possible to make use of Russia in ending the war. We should like to know the views of the Russian government on this subject with all haste.And:Despite the last statement in my previous message, it would appear suitable to make clear to the Russians our general attitude with regard to termination of the war. Therefore, please tell them that:“We consider the maintenance of peace in East Asia to be one aspect of the maintenance of world peace. Accordingly, Japan—as a proposal for ending the war and because of her concern for the establishment and maintenance of lasting Peace—has absolutely no ideas of annexing or holding the territories occupied as a result of the war.”One noteworthy point: the Japanese government was seeking to enlist Soviet help in “ending the war”. Just exactly what the Japanese meant by “ending the war” was extremely vague and suggested a lack of a definite desire for peace.On 12th July 1945, Togo sent Sato a message marked “Very Urgent”:I have not yet received a wire about your interview with Molotov. Accordingly, though it may smack a little of attacking without sufficient reconnaissance, we think it would be appropriate to go a step further on this occasion and before the opening of the Three Power [i.e Potsdam] Conference, inform the Russians of the Imperial Will concerning the ending of the war. We should therefore like you to present this matter to Molotov in the following terms:His Majesty the Emperor mindful of the fact that the present war daily brings greater evil and sacrifice upon the people of all the belligerent powers, desires from his heart that it may be quickly terminated. But so long as England and the United States insist upon unconditional surrender the Japanese Empire has no alternative but to fight on with all its strength for the honor and existence of the Motherland. His Majesty is deeply reluctant to have any further blood lost among the people on both sides, and it is his desire, for the welfare of humanity, to restore peace with all possible speed...It is the Emperor’s private intention to send Prince Konoe to Moscow as a Special Envoy with a letter from him containing the statements given above. Please inform Molotov of this and get the Russians’ consent to having the party enter the country.Two noteworthy points in the cable above:Damning evidence that the Japanese government preferred fighting to the bitter end over accepting unconditional surrender.The intervention of Emperor Hirohito in diplomatic dealing with the Soviets.While his superiors in Tokyo demonstrated a complete loss of touch with reality, Ambassador Saito displayed tremendous rationality. He candidly and accurately pointed out the flaw in the various instructions Togo had sent: a complete lack of realistic terms on the part of the Japanese government. Sato argued convincingly that realistic terms were indispensable to elicit Soviet interest in engaging in a negotiation.In all of Togo messages addressed to Sato, the Japanese government offered zero realistic terms. Losing most of its naval assets, the IJN had been reduced to an ineffective fighting force. Most of Japan’s territories gained during the war were of little economic value beyond natural resources. The offer of fishing rights was just ludicrous. In response to Togo’s “Very urgent” message on 12th July, Sato conveyed his unequivocal and scathing remark:How much of an effect do you expect our statements regarding the non-annexation and non-possession of territories which we have already lost or are shout to lose will have on the Soviet authorities?As you are well aware, the Soviet authorities are extremely realistic and it extremely difficult to persuade them with abstract arguments. We certainly will not convince them with pretty little phrases devoid of all connection with reality.If the Japanese Empire is really faced with the necessity of terminating the war, we must first of all make up our own minds to terminate the war. Unless we make up our own mind here is absolutely no point in sounding out the views of the Soviet Government.Most tellingly however, is that Sato incisively argued that since the unlikelihood of enticing the Soviets meant that Japan had no choice but to accept unconditional surrender:in the long run . . . has indeed no choice but to accept unconditional surrender or terms closely Equivalent thereto.I would like to point out, however, that even on the basis of your various messages I have obtained no clear idea of the recent situation. Nor am I clear about the views of the Government and the Military with regard to the termination of the war. Moreover, I have been of the opinion that, if it were finally decided to bring the war to an end, it would be necessary to obtain a new formal resolution which would be sufficient to overrule the decision reached at the conference held in the Imperial Presence on 8 June.Now, being a rational realist that he was, Sato was also a committed patriot who revered the Emperor. Hence, he appealed for accepting unconditional surrender with one condition: the preservation of the Emperor and Imperial Institution.Here was Togo’s response to Sato’s rational assessment? The answer is in his 17th July 1945 message:Although the directing powers, and the government as well, are convinced that our war strength still can deliver considerable blows to the enemy, we are unable to feel absolutely secure peace of mind in the face of an enemy who will attack repeatedly. If today, when we are still maintaining our strength, the Anglo-Americans were to have regard for Japan’s honor ' and existence, they could save humanity by bringing the war to an end. If however, they insist unrelentingly upon unconditional surrender, the Japanese are unanimous in their resolve to wage a through-going war.The Emperor himself has deigned to express his determination and we have therefore made this request of the Russians. Please bear particularly in mind, however, that we are not seeking the Russians’ mediation for anything like an unconditional surrender.Two things that stood out from the message above:A non-committal desire to “solicit Soviet’s favor” without offering any realistic term.Most conspicuous of all: the refusal to accept unconditional surrender and the determination to fight to the end.Saito responded to Togo’s message on 17th July, trying to awaken his superiors to the reality:It goes without saying that in my earlier message calling for unconditional surrender or closely equivalent terms, I made an exception of the question of preserving our national structure [i.e., the Imperial system]. Although I have no fear that you misunderstood what I said in the last part of my 8th June message, I am wiring this for your information.In connection with the question of preserving our national structure.......we must create a strong impression [with the Soviets] that our proposals represent the positive demands of Japan’s 70 million people.Except for the matter of maintenance of our national structure, I think that we must absolutely not propose any conditions. The situation has already reached the point where we have no alternative but unconditional surrender or its equivalent.Here is Togo’s response on 21st July 1945,With regard to unconditional surrender we are unable to consent to it under any circumstances whatever. Even if the war drags on and it becomes clear that it will take much more than bloodshed, the whole country as one man will pit itself against the enemy in accordance with the Imperial Will so long as the enemy demands unconditional surrender. It is in order to avoid such a state of affairs that we are seeking a peace, which is not so-called unconditional surrender, through the good offices of Russia...Therefore, it is not only impossible for us to request the Russians to lend their good offices in obtaining a peace without conditions, but it would also be both disadvantageous and impossible, from the standpoint of foreign and domestic considerations, to make an immediate declaration of specific terms.Once again the same complete absence of unambiguous and realistic terms to the Soviets AND the unequivocal rejection of demand for unconditional surrender.And here is Togo’s public announcement in response to the broadcasts by Captain Zacharias:The fact that the Americans alluded to the Atlantic Charter is particularly worthy of attention at this time. It is impossible for us to accept unconditional surrender, no matter in what guise, but it is our idea to inform them by some appropriate means that there is no objection to the restoration of peace on the basis of the Atlantic Charter.All of these messages between Togo and Saito were deciphered and commented on by Magic experts. On July 27th, the analysts delivered a Magic Summary Report which contained the following accurate assessment of Japan’s political situation:An analysis of Japan’s situation, as revealed through Ultra sources, suggests her unwillingness to surrender stems primarily from the failure of her otherwise capable and all-powerful Army leaders to perceive that the defenses they are so assiduously fashioning actually are utterly inadequate. There is nothing in the Japanese mind to prevent capitulation per se, as demonstrated by the advocacy of virtual unconditional surrender by an increasing number of highly placed Japanese abroad. However, until the Japanese leaders realize that an invasion can not be repelled, there is little likelihood that they will accept any peace terms satisfactory to the Allies.Summary of Magic insightsHopefully the preceding presentation of facts has demonstrated beyond any dispute the true picture of Japanese intention in the chaotic last months of the Pacific War.While it is true that there were attempts to open diplomatic channels to negotiate for peace with the US, those attempts were carried out entirely by representatives of the Japanese government; and they failed utterly due to the lack of official blessing of army leaders in Tokyo who wielded absolute political influence.Even in diplomatic dealings with the Soviet Union, the Japanese government displayed appalling ineptitude evidenced through its lack of specific diplomatic objectives beyond the general desire of keeping the Soviets from entering the war against Japan and attempting to persuade the Soviets to mediate an end to the war. They did not even define exactly what “end to the war” meant; and they asked the rational Sato to negotiate with the Soviets without providing him with clear and realistic terms to elicit Soviet interest in negotiating.Most importantly, as far as Magic evidence reveals, there was NO attempt, official or unofficial, on the part of the Big Six to negotiate with the Western Allies for peace. Instead, what Magic experts had seen led them to the conclusion that Japanese army leaders consistently rejected Allied demand for unconditional and resolved to fight to the bitter end. After reading Magic Summary Report, Joseph Grew stated in an announcement to the press on 10th July 1945:We have received no peace offer from the Japanese Government, either through official or unofficial channels. Conversations relating to peace have been reported to the Department from various parts of the world, but in no case has an approach been made to this Government, directly or indirectly, by a person who could establish his authority to speak for the Japanese government, and in no case has an offer to surrender been made. In no case has this Government been presented with a statement purporting to define the basis upon which the Japanese government would be prepared to conclude peace…Japanese determination to continue fightingJapanese refusal to accept Allies’ demand for unconditional surrender was accompanied by the determination to continue fighting. In the last months of the war, Ultra uncovered an alarming increase in Japanese military strength in Kyushu - the chief target of operation Olympic. Having deduced accurately where and when the American invasion would be mounted, the Japanese stationed large number of troops, weapons near the invasion areas. In addition, they stockpiled thousands of aircraft, motor boats and sea crafts for kamikaze attacks.Japanese intention was clear. They would endeavor to inflict heavy casualties on the invaders in the hope that US leaders - horrified by the losses - would seek to negotiate an end to the fighting. At the negotiation conference, Japanese leaders would dictate terms from an advantageous position that would allow the Japanese to exit the war with the honor of the Empire preserved and some gains of their previous conquest retained.Reference(s)1/ Downfall: The End of the Imperial Japanese Empire - Richard B. Frank2/ Hirohito’s War: War in the Pacific - Francis Pikes

With 99.3% of banned notes back as stated by central bank RBI, can we conclude that demonetisation was for nothing?No, we can't. This is going to be a long one, so, I humbly request you to kindly bare with me.(6–7 minute read. Implore you to read till the end.)Modi, on his 7th Nov speech vaguely referred to 3 target areas which he sought to remedy with Demonetization, which were-Black Money, primarily.Terror financing.Fake note menace.Black MoneyThe most common complaint against Demonetization has been the return of cash into the system. This has led some people to interpret Demonetization as some sort of a purging exercise and that the resultant money is squeaky clean.Nothing could be further from the truth.A bit about how Income Tax works and how long does collection of taxes take-These are some of the modes of collection of income tax-The most unpopular and widely hated way is through the TDS.Applicable to Self Employed Businesses and Professionals- Self Assessment Tax, Advance Tax.Other Routes- Tax Collected at Source.As you might have gathered, not all people pay taxes properly, as and when they are required to. Therefore, the Income Tax department cross checks the details submitted in the returns with other information that it gets it's hands on via various routes, inter alia, including submissions from the taxpayer himself. This procedure of ascertaining the correct tax liability is called an assessment.Assesments can be broadly divided into two parts- Summary Assessment & Scrutiny Assessment.Summary Assessment- sort of like a Preliminary Examination. Mundane Mistakes are weeded out at this stage like arthmetic errors, TDS mismatches and so on. The officials/software could either send a Notice(to request more details) or an order to complete the 'Summary'.Scrutiny Assessment- This is serious business. The officer goes through every number, every explanation, every justification in great detail. He may call for more information, summon such other people as he may think fit. At the end of this procedure, he issues an order recomputing the Income and imposing such Tax, Interest & penalty, if any.Typically, it takes close to 2 years for the abovementioned procedure to meet it's rightful conclusion, which is also the legally allowed time limit for completion(21 months to be precise).Translated into English, returns filed in the aftermath of Demonetization, the assessments would only be completed by 31.12.2018.The fun part- the taxpayer, if aggrieved by the order, may prefer an appeal with the higher authorities which could last anywhere between 1 year-5 years, depending upon whose doors the taxpayer chooses to knock.Therefore, all the post Demonetization proceedings, additions, demand orders, assessments have not even completed 50% of their tax lifecycles. Those are still cruising through stage 2 i.e. the Scrutiny Assessment.Bonus fact- the order copies of the proceedings upto the Assessment (Summary+Scrutiny) & 1st appellate authority-Commissioner of IT(Appeals)- cannot be made public. Order copies of only the second level appellate authority-ITAT- & above can be made public.{Therefore, the ones that are claiming that it was a failure would not even have the data required to arrive at such a conclusion}.Information is king in the world of any law enforcement authority. A return is just one of the many ways the tax department gets its information from. Other prominent places include, inter alia, the authority responsible for registration of sale & purchase of property, Banks & other Financial Institutions, Jewelry merchants, other law enforcement agencies, Businesses & so on. These persons are required to file an additional statement called the Annual Information Return(AIR).However, in order to bolster the existing framework of the AIR, and, enable the department to get information relating to the deposits during Demonetization, in a time bound manner, new provisions were added. Instance, this-Cash deposits during the period 9th November, 2016 to 30th December, 2016 aggregating to—(i) Rs. 12,50,000 or more, in one or more current account of a person; or(ii) Rs. 2,50,000 or more, in one or more accounts (other than a current account) of a person.(iii) Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable.Persons who are required to report:(i) A banking company or a cooperative bank(ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898By virtue of these provisions, among others, IT department was able to get it's hands on comparative information, which is capable of being used to fix culpability since the pre Demonetization data could be used to set a benchmark to compare the post demonetization activity with.Armed with a truckload of rich information, the Government has :Identified about 18 L suspect cases where transactions could raise a stinkbeen able to bring close to ₹ 30,000 Crores under tax net by way of disclosures & seizures[1]identified 13.33 L accounts belonging to ~9 L persons, netting ₹ 2.9 L Cr, where notices have been shot off and response has been sought(Yes, scrutiny assessment)[2]unearthed over 14000 properties valuing over ₹ 1 Cr, the owners of which had not even filed Returns of Income. [3]revved up the number of search proceedings(a Raid, sort of) from 447 to 1152 in a pre & post Demonetization context.[4]ramped up the number of surveys by 300% to 12500+(sort of like a Pre-Assessment proceeding that usually leads to reopening of Prior Assessments and admission of concealed Income) [5]managed to achieve remarkable uptick in the Tax Compliance, not just in the number of people filing returns but also the Number of People paying Advance Tax, TDS & Self Assessment Taxes.managed to clock above 15–20% YoY growth rates in collection of Income Taxes. This is no mean feat.[6]managed to steadily increase the buoyancy of tax collections{Growth in Tax Collections/Growth in GDP} to ~1.7(+). Meaning, every % point growth in the GDP will realize a 1.7% growth in the net tax collections.[7] Read more about that here.TAKEAWAY-Since most accounts are still in 2nd stage and not yet complete, the process is a long time coming from being able to be judged.The orders will start going out from mid September & early October extending all the way upto December. This will get reflected in the Tax Collection data of 2018–19 & 2019–2020.So, everyone claiming that all the money in the banks is now white is either shooting from the hips or woefully ignorant about how assessments work in the context of Income Tax Act.Rest Assured, the Income Tax department isn’t stupid, and, the money that made it’s way into the Bank is not white!Second Charge against the exercise was that intermediaries were employed to get in line by the wealthy hoarders of Black Money.While there is no denying that such a method was used, but, to think that such a crude method was employed to launder close to 16L crores is plain facetious. Not to take away the fact that such crude methods are always fraught with logistical nightmares & could lead to potentially loss of all that money should the conduit turn their backs on the kingpin.An important aspect of being rich is always being somewhat less stupid. And the above method done on large scale is just plain stupid.This method could have been employed by the uneducated Slumlords & other hoodlums who have the kind of loyal manpower at their disposal, but the quantum of their collective Black Money might, at best, run into a few thousand crores.NB: These transactions are subject matter of Benami Transactions Act. If caught, such benamidar will be required to pay around north of 70% in Taxes.Also, S 115BBE was introduced to plug this hole, the gist of which is as follows-Any credit in your account or Books, the source of which you can't explain, shall be taxed at 60% and will attract a 25% flat surcharge, and education cess to the boot.In other words, if I was to deposit ₹ 100 in somebody's Bank A/c and the software picks it up (which it does a lot of time, for outliers), the Assessing Officer will shoot a notice to that person to come see him in order to explain the source of that cash. Should the account holder be unable to explain the source, the AO will pass the order demanding tax of ₹ 77.25 to be paid within 30 days.It is pertinent to note that, whether the money is still lying in the bank or not is irrelevant.And, I've not even started about the penal provisions. In addition to the above demand, there will be levied a penalty and interest.The worst criminals buckle under the IT pressure because they don't care much about putting you in the Jail, which a lot of hardened criminals seem to have gotten accustomed to, but they take away your money by employing whatever means necessary, and available under the law, so I don't imagine the poor conduit not blurting out the name of the real beneficial owner of that money.However, a few very efficient laundering schemes that have been extensively used in the past and how have they been bucked in the recent pastUsing Slumfolk to launder unaccounted cash: Companies followed this smart idea of using less fortunate people with no tax history to launder money.The M.O- The errant companies usually gathered a bunch of people, typically slum-dwellers and got their basic KYC done. Then, probably with the help of an employee of the Bank, Companies opened large number of Bank Accounts.Thereafter, the companies deposited ~ ₹ 2.5 L in the bank accounts, and, using the same money applied for the shares in their own company.At this point, the Company is sitting atop (₹ 2.5L * No of Inidividuals) of laundered cash. The process however is not yet complete.The companies then makes fake calls for further deposits from the applicants for shares, who do not pay up leading the company to forfeit the application money under the pretext of non payment of calls.Following the above steps, the companies laundered money bucking the legal framework.Bonus: The forfeited money was not taxable under Income Tax(The difference between capital expenditures and revenue expenditures).The Income Tax officers could only stand watch since persons making deposits earned less than 2.5L. The Company could not be compelled to give details of the persons making the deposit( This was due to a court ruling).Post Demonetization:Cash credits.68. Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year :Provided that where the assessee is a company (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless—(a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and(b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactoryThat scam has now been laid to rest!Method 2: Shell Companies & Value InflationAnother very rampantly used method. Letterbox companies would be floated, typically in Mumbai, Delhi & Kolkata(most prominent). Shares would be bought for a very nominal sum.Then, the books would be fudged with bogus transactions thereby strengthening the financial position on paper. Cash would be laundered and deposited into the Bank Accounts. Parallelly, the owners & their representatives would also indulge in fictitious Buy/Sell transactions in shares of company, thereby, perking the value of the share up with every transaction. This way, one step at a time, a lot of cash would be laundered gradually over a period of 3–5 years typically. Then, using the long term capital gains exemption, which was available hitherto, pocket all of the laundered money without paying a penny in Income Taxes. (The long term capital gains exemption is also done away with w.e.f 01/04/2018.)Post Demonetization:With the introduction of GST, cooking books has become much more difficult than it already was due to the stringent invoice rules under which issuing invoice with value upwards of ₹ 50K/transaction has been made mandatory. Coupled with the mandatory requirement of filing invoice wise details of sales & purchases has dealt a body blow to easy fudging of books. This part has hit a lot of unruly traders in India and had to face stiff resistance before its promulgation.Also, a Special Task Force under the joint chairmanship of the Secretaries of the Ministry of Corporate Affairs & the Ministry of Finance was constituted in order to tackle the shell company problem. And, the Government and it’s agencies have:Struck off 2.25 L companies off the register of companies.[8] [9]Disqualified over 3 L directors for not failing to comply with the requirements of the Companies Act, 2013[10]Invoked the Serious Fraud Investigation Office to look into the matters of the companies[11]made it mandatory to disclose the amount of cash deposited during Demonetization on their Balance Sheet & Profit & Loss Accounts[12]Put out a list of companies you should be wary of dealing with[13] check for companies in your area using the link.Put out a list of Directors who are disqualified from holding Directorships[14]- You can check the names of the Directors from your area using the given link.Outlawed having more than 2 layers in their Corporate Structure for the purpose of Investment in order to curb obscure corporate structures.[15]Constituted a super regulatory-NFRA- authority to keep the CA, CS, CWA in check.via the Enforcement Directorate, conducted raids across the country at over 110 locations spanning all major metro cities. Benami Transactions will be invoked on whoever is found guilty.[16]Method 3: Treaty ShoppingAnother time tested way was to route the money out of India by Hawala networks, and then bring the money back into India via shell companies registered in Tax Havens such as Mauritius, Cyprus and some times, Singapore. The exemption from payment of any tax in India was the chief allure of the famed Mauritius route. However, the Mauritius route was sealed in May of 2016. Other routes also followed suit behind it.Sealing of these tax-free routes has probably had an effect on the levels of deposits in the Swiss Banks.[17][17][17][17] [18][18][18][18]2. Terror FinancingI’m no expert on issues concerning national security, so I would refrain from making long commentaries on the efficacy of the exercise.However, I would like to quote a few news pieces in order to drive home a point that demonetization indeed had a good effect on Terror Financing as well.A record number of over 276 maoists had surrendered post Demonetization. This was unprecedented.[19] [20] (Don’t go by the headlines for link no. 20. That’s the Indian Media for you)The Insurgency in NE India & Maoists were set back by ₹ 800 Crores due to Demonetization [21]Kashmiri Militants- were in a real scramble. They had to resort to robbing ATMs, Banks and also stealing guns because, there’s no Azaadi without the money [22]90% decrease in stone pelting incidents: DGP, J & K.[23]NIA got it’s hands on incriminating material leading to several raids across Delhi-NCR and the epicenter of Terror itself-Srinagar, J & K. Led to the busting of Hawala networks which contributed to the above decrease and led to arrests of several people connected with the Money trail.[24]Normally, this is the Hurriyat time of the year, when it issues a calendar for protest dates, and detailed SOPs. Coincidentally, this is also the time of the year when Kashmir gets a lot of tourist footfall. Therefore, Hurriyat’s M.O is to choke the population of the cashflow and income, in order to get them to revolt and do nasty things destroying their collective futures. However, we have not heard a lot of untoward incidents this & the previous years as compared to the 2016 year.3. Counterfeit Currency, High Value NotesCounterfeit notes have shown a marked decline from being pegged at 7.62 L pieces in pre-Demo days to 5.21 L pieces in the post demo phase. That’s a neat ~32% gain.[25][25][25][25]#Introduction of a Higher Value currencyThis is another pet peeve of the critics of the demonetization. This is a legitimate concern since it makes hoarding black money twice as easy as it was with ₹ 1000 notes.However, the post Demonetization phase is seeing a steady decline in the High Denomination Notes as a % of Total Notes in circulation.The pre demonetization High Denomination Notes to Total Notes stood at 86.4%, while, the post Demonetization one stands firm at 80.4%.[26]#The Infamous ₹ 2000 noteThe supply of ₹ 500 is being beefed up by the month. ₹ 500 now stands at double the demonetization levels at 42+ %.[27] [28]4. But Black Money doesn’t exist in the physical form. It exists in the form of Real Estate, Jewelry etc.This claim is a valid one. However, artificial inflation can be kept up only if the cash is in steady supply. But, post demonetization, the system was in a state of supply shock due to which the realty developers undersold their assets leading to the fall in prices of various assets. Perhaps, Real Estate was the hardest hit sectors.This is the reason why property prices fell after demonetization.[29]Acclaimed property consultants and researchers claimed that price of properties could fall by as much as 30% due to Demonetization.[30]Demonetization also hit the secondary market pretty bad leading to cheaper properties thereby making lives easier for the homebuyers.[31]Thereafter, the government passed the Real Estate (Regulation & Development) Act, which has made further strides in formalizing the sector & protecting the Buyer. Under RERA, the builder is required to deposit 70% of the booking money in an escrow account and issue a receipt to the Buyer. This gives an idea of the Revenues of the Builder by simple extrapolation.A few more hits Demonetization managed:Demonetization led to formalization of savingsIn and of itself, this is not the mindblowing news you want to hear, however, put in perspective, this is a great inflection point in the economic future of India.The Equity funds saw a steady flow of ₹ 2.86 L crores as against ₹ 1.35 L crores seen in the previous year.[32] The above was also achieved because of the slash in the Interest Rates on fixed deposits & Savings Bank account.The gross Asset under Management reached ₹ 21.41 L crores, an all time high, and the equity AUM reached upwards of ₹ 6.5 L Crores.The money in these funds, is then invested in the Public Offerings floated by companies in order to finance their new project requirements. This money is the fuel that propels the economic growth.Demonetization & Interest RatesAwash with funds, the Banks lowered lending rates on fresh loans, thereby making the cost of doing Business cheaper.The RBI had, during 2014–16, reduced 1.75% in repo rates, however, that had translated in only 0.5 % reduction in lending rates.Post demonetization, a mere reduction of 0.25% in repo rates, has resulted in the same effect of reduction of 0.5% in lending rates.[33]If you have stayed on till here, can only mean either of the two things- You’re one big fan of it, or, a vehement critic. I hope, I have been able to do justice to the sensibilities of both types of people, since I’ve based the entire answer on facts, and not opinions.They say, it ain’t over till the fat lady sings, and, I can vouch that she hasn’t sung, yet.In my humble opinion, it would be extremely wrong to proclaim it was all for nothing. The facts are there for you to see. I hope you had a good time reading.Footnotes[1] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[2] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[3] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[4] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[5] Cash deposits of ₹ 2.89 lakh crore post demonetisation under I-T dept. radar[6] What demonetisation did to tax collections[7] What demonetisation did to tax collections[8] Ministry of Corporate Affairs (MOCA) identifies more than one lakh directors of shell companies for disqualification[9] Govt cancelled 2.24 lakh suspected shell companies post demonetisation, disqualified 3.09 lakh directors - Firstpost[10] Govt cancelled 2.24 lakh suspected shell companies post demonetisation, disqualified 3.09 lakh directors - Firstpost[11] http://www.mca.gov.in/Ministry/pdf/Commencementnotification_25082017.pdf[12] http://www.mca.gov.in/Ministry/pdf/AmendmentinScheduleIII_Notification31032017.pdf[13] Ministry Of Corporate Affairs[14] List of Disqualified Directors u/s 164 (2)(a)[15] http://www.mca.gov.in/Ministry/pdf/CompaniesRestrictionOnNumberofLayersRule_22092017.pdf[16] How Modi’s crackdown on shell companies has waged war on black money post demonetisation[17] Deposits by Indians in Swiss bank accounts down 80% during NDA tenure: Govt[17] Deposits by Indians in Swiss bank accounts down 80% during NDA tenure: Govt[17] Deposits by Indians in Swiss bank accounts down 80% during NDA tenure: Govt[17] Deposits by Indians in Swiss bank accounts down 80% during NDA tenure: Govt[18] Money held by Indians in Swiss banks fell by 34.5% in 2017[18] Money held by Indians in Swiss banks fell by 34.5% in 2017[18] Money held by Indians in Swiss banks fell by 34.5% in 2017[18] Money held by Indians in Swiss banks fell by 34.5% in 2017[19] Maoists worst hit by Demonetisation - The Sunday Guardian Live[20] Maoist papers show how note ban didn’t hurt them[21] Demonetization has hit terror funding[22] Jammu and Kashmir bank robberies reflect just how hard militants were hit by demonetisation - Firstpost[23] 90% dip in stone-pelting incidents in Kashmir in 2017: J&K DGP - Times of India[24] Hurriyat, hawala raids are a body blow to terror funding network in Kashmir[25] Cut the politics, D-Street says cash ban was worth it & why![25] Cut the politics, D-Street says cash ban was worth it & why![25] Cut the politics, D-Street says cash ban was worth it & why![25] Cut the politics, D-Street says cash ban was worth it & why![26] Cut the politics, D-Street says cash ban was worth it & why![27] Reserve Bank of India[28] Cut the politics, D-Street says cash ban was worth it & why![29] http://Property prices fell after note ban, likely to go down further, says economic survey (https://www.hindustantimes.com/real-estate/property-prices-fell-after-note-ban-likely-to-go-down-further-says-economic-survey/story-wW8qCrwfnRlaYfV5JER2CL.html)[30] Impact of Demonetisation[31] http://Demonetisation hits secondary market: Will property become cheaper now? (https://m.economictimes.com/markets/stocks/news/demonetisation-hits-secondary-market-will-property-become-cheaper-now/amp_articleshow/55537864.cms)[32] http://Inflows in equity mutual funds surge to Rs 2.86 lakh crore after note ban (https://m.economictimes.com/mf/mf-news/inflows-in-equity-mutual-funds-surge-to-rs-2-86-lakh-crore-after-note-ban/amp_articleshow/61638985.cms)[33] The impact of demonetisation on interest rates