# 1972 Government Debt Crisis **URL:** https://tradingqna.com/t/1972-government-debt-crisis/102127 **Category:** General **Created:** [February 11, 2021, 2:35pm UTC](https://tradingqna.com/t/1972-government-debt-crisis/102127 "2021-02-11T14:35:25Z") **Posts on this page:** 1 **Showing post:** 5
### Author: ![rupeshmandal](https://tradingqna.com/user_avatar/tradingqna.com/rupeshmandal/32/71770_2.png) [@rupeshmandal](https://tradingqna.com/u/rupeshmandal) #### Post date: [February 11, 2021, 5:25pm UTC](https://tradingqna.com/t/1972-government-debt-crisis/102127/5 "2021-02-11T17:25:56Z")
In case of a national crisis and financial emergency, the govt. can seize our bank accounts and freeze the fixed deposits .etc. Mostly during war, it is done so. It’s called - Mobilization of resources to protect the sovereignty. It happened only once in my knowledge in pre-independent India in 1945, during World War II, when India fought for the British. BTW, Govt. does not pay you back or refund the same after the situation is restored back to normalcy. You just get a certificate of your contribution to the nation. Since India’s money and resources were already exhausted into the WW2, while fighting for the Britishers, they had sucked it all and when they realized nothing is left of us is when they decided to free India, basically abandon it. One of the many reasons India got independence in 1947. This link talks further about instances when GoI breached sovereign guarantee or came close to doing so. > [@What's the best option to invest in gold?](https://tradingqna.com/t/whats-the-best-option-to-invest-in-gold/93314/15): > > There have indeed been instances when it has been considered that GOI breached the sovereign guarantee or was very close to breaching it. The most famous example is the abolition of Privy purses. Even though the amount due was around [4 crores](https://www.deccanchronicle.com/opinion/op-ed/201119/is-a-state-apology-in-order-for-the-abolition-of-privy-purses.html#storyBody:~:text=four%20crores) annually & it was guaranteed directly by the Constitution, the Govt of that time decided to do away with it. Nani Palkhivala summarizes that issue briefly (From [3:19 to 5:02](https://www.youtube.com/watch?v=G9PqkitIUsQ&t=199)) SSNNL Bonds. This matter remains sub judice & doesn’t directly involve the… --- _[View the full topic](https://tradingqna.com/t/1972-government-debt-crisis/102127)._