Quick … When Did India Become Free

Quick easy question … When did India become a free country.

Candidates

August 15th 1947. Wrong! The British walked away from a bankrupt colony on this day.

January 26th 1950. Wrong again! A unique nation in the history of the world was born.

The Top Contender is 8th August, 1942, when Gandhiji told the British to ‘Quit India”.

An all time front runner is January 26th 1943, when Subhash Chandra Bose declared Independence in Germany and selected Jana Gana Mana as India’s national anthem.

Choose 25 December, 1941! You cant go wrong. First 15 recruits of the Azad Hind Fauj (or the Indian National Army), raised by Subhash Chandra Bose amongst Indian POWs captured by Germans, leaving next day for Frankenburg, for the first training camp of the Azad Hind Fauj, got a warm send off from Indian residents at Berlin office of Free India Center.

February 27th 1931, the legend of Chandrasekhar Azad was born and Chandrasekhar Tiwari died – killing himself with his last bullet rather than be taken prisoner by the colonial British Administration.

1929 April 8th, 1929 was the day when Bhagat Singh threw leaflets (with an fireworks device) in Delhi Central Assembly, protesting against an ordinance permitting repressive measures by the colonial administration.

April 8th 1944, could be another candidate where a small INA contingent with the Japanese captured (briefly) Kohima.

Before the answer, some other historic examples.

American War Of Independence against the British carried on for 1775-1783. The agreed date is 4th July, 1776, when the Declaration of Independence was made.

14 July 1789 – A crowd of Parisians, stormed the Bastille prison – which held only 7 prisoners. This sparked off the French Revolution. The French emperor, Louis XVI’s execution happened more than 3 years later on January 21, 1793. Only in 1804, 5 years later was Napoleon I, crowned as Emperor of the French.

Or is it that India is still not a free country.

There are lakhs of under trial prisoners languishing in Indian jails. Hundreds are killed in “encounters’ by police. More than 10,000 laws (most of them, oppressive, colonial laws) on every conceivable subjects (and some imaginative also) chain Indians, make them habitual law breakers and engender corruption on a horrific scale.

Or is that we have become a free country

We want free roads, free electricity, free train rides, free bus journeys, free service.

The funny part is that the word free (meaning “no cost”) does not exist in Sanskritic languages. मुफ्त is a “free” import.

Freedom does comes at a price. Jefferson says it is eternal vigilance.

China’s Bullion Reserves – Gold, Silver and Silk

Modern economic research estimates that through most of last 1000 years, China and India have accounted for about 50% of the world economy. 20th century was different for both. While Indian gold based systems are better known, Chinese gold story is very different.

1. China & Neighbours – Gold Producers

India was always an importer of gold. Domestic gold production in India’s core geography has historically been negligible – or low.

China, on the other is different. Mongolia and China have been significant gold producers in history. Estimated gold reserves from current ore mining in China exceed 600 tons – and exploration efforts are expected to increase this to 3000-3500 tons. China is the world’s 4th largest producer of gold – ahead of USA and behind Australia, and expected to overtake South Africa soon.

Currently, illegal mining in China is big time activity and is indicted for supporting poaching!. Chinese were exporters of gold and silks.

2. Chinese – Great believers in silver

Chinese common coin was a silver coin – the tael (which came from the Malay word tahil; which came from Indian word tol; meaning ‘measure’). There were 2 taels – one was commercially pure silver ingot of one Chinese ounce called a liang. The other was a kuping tael - which was coin. Bulk silver was used as currency and called sycee. There were many other taels like Tsaoping, Peking, Tientsin, Hankow, Canton. Chinese also use silver jewellery - against gold preferred by Indian women

3. Chinese invention of Paper

Jiaozi - circulated in Sichuan in the Chunhua period of Emperor Taizong of Song Dynasty

Chinese rulers circulated paper money for longer (from 6th century onwards) and greater area than any country in the world. The first paper currency jiaozi was issued in 6th century – which collapsed very soon. The Song dynasty re-introduced paper currency in 9th century due to copper shortage. Probably, some Jewish merchants were also involved in the jiaozi manufacture.

Kublai Khan’s (a descendant of Genghis Khan) paper money management meant that all Chinese had to deposit all gold (or be prepared to die) with the Khan’s treasury and they got a currency note which was trade-able. This ’system’ received wide publicity in Europe (thanks to Marco Polo). 600 years later, Roosevelt did the same with the Americans – and collected 8000 tons of gold.

4. Opium & China

Western consumers bought tea, silks and other Chinese commodities for which they paid in silver. The Chinese did not need much of Western goods – like India. To correct this negative balance of trade, Europeans promoted opium in China. When Chinese resisted the Opium trade, wars followed.

In early 19th century AD, Opium imports into China by British, French, American, Dutch, Spanish traders, sourced from India led to an outflow of silver from China – and a currency crisis. The ruling Qing state went into a downward spiral- culminating in the Chinese Civil War and rise of Communism. The Kuomintang (supported by Chinese underworld, The Green Gang, The Red Gang and The Blue Gang) was pitted against the Mao Ze Dong’s Communist Party – and both were armed and supported by Western powers.

Opium for China was produced by indebted Indian farmers and a few Parsi traders set up their offices in Hong Kong. However, the Parsi role diminished after the advent of steamships, their big losses during the Opium Wars and the rise of the cotton trade. Other Indian traders, possibly restricted by ’shubh labh’ compunctions played a lesser role (compared to the European traders) in this Opium trade.

Major opium trading companies like Jardine Matheson, David Sasoon & Company and sundry traders set up The Hong Kong & Shanghai Banking Corporation for facilitating this misery. The Chinese Opium problem was finally solved by several draconian measures during Communist rule.

5. Wars In China

When Chinese resisted the Opium flood, Western traders resorted to war. The Japanese emboldened by new found wealth and military technology, joined Western powers. The Sino Japanese Wars, The Opium Wars with Europeans and The Boxer Uprising before WW1 imposed large war reparations on the Chinese. The Civil War in China between the world wars destroyed Chinese commerce systems. The Cultural Revolution has left the Chinese commercially backward.

6. How did the Chinese preference for silver affect them?

In 1500, the approximate exchange ratio between gold liang and and silver liang was 1:4. Today it is 1:50. Silver mineral deposits, mining and availability is more elastic than gold. Elasticity of gold production is very low. Secondly, above ground supplies of gold are far higher than known below the ground estimates. Hence, manipulation of gold prices over a period of time is difficult.

Touchy ... feely ... selly ... silly ...

7. Current Status

China, as the world’s largest holder of US dollar debt is constrained in its move to increasing gold reserves through market operations. A dollar sell off by China could collapse the world’s currency system – and the biggest loser would be the Chinese! But a negotiated conversion of some dollar reserves to gold is eminently possible.

Between 2000-2007, the Chinese Government increased their monetary gold reserves from more than 300 tons, to more than 600 tons. Official Gold Reserves of Chinese Central Bank Gold reserves are about 600 tons of gold.

China has become the world’s 3rd largest consumer of gold – up from a 100 tons to 350 tons. The Shanghai Gold Exchange has made it easier for individuals to invest in gold. They have reduced the transaction size from 1 kg to 100 gm.

8. Possible Chinese Strategy

China’s investment in US$3 billion in Blackstone Private Equity /hedge fund, was the first by any country. This gives China an inside track to the world’s largest hedge fund and private equity player. The Blackstone Fund on the other, gets access to the world’s largest liquid reserve – more than 1 trillion dollars of the Chinese Government’s monetary reserves.

China is setting up a US$200 billion sovereign fund that will invest in range of markets and instruments. With this institutional framework, for China to increase their monetary reserves by a 1000-2000 tonnes is well within realm of possibility.

9. The 2ndlook alternative (Oct.3, 2008, update)

Chinese assets ...

In any new world financial reform proposal, the Chinese voice will be very important. After all they are the world’s largest creditor nation! They have US$2 trillion worth of IOUs with them. Of course, the composition of these US$2 trillion Chinese reserves is a state secret.

The Chinese will not agree to any ‘hare-brained’ scheme by ‘tin-pot’ dictators, who are sitting on some raw materials – and think that the future belongs to them. The world has so many of this variety, that it does not require me to be specific.

The Chinese need to acquire some big ticket assets – maybe, some big US companies, for about US$1.5 trillion and bring down their reserves to US$0.5 trillion. This will reduce US outstanding debt, create demand for US stocks, lift the Dow Jones, and create value for the dollar. As I see it this is the only way that the Chinese can cash in their chips. The House will not let them take it away any other way.

10. What does this mean for others

China, the largest creditor nation in the world, carries a big stick. They are not democratically accountable and transparency is not required from them. Hence, a significant conversion from dollar holdings to gold is feasible, can be done quietly (hence, at an economic price) and with trade power they have, a strong negotiating position is a given.

And that is an opportunity others may not get!

In the last 150 years, strong monetary gold reserves have been a feature of Western monetary systems (acquired mostly, by  dubious means like slavery, genocide). China’s moves, if any, will diversify global monetary reserve systems away from the dollar and the West and spread the weightage in a more equitable manner – giving rise to speculation about a renminbi bloc.

And that is something that is good for global monetary system.

What should India do …

Oil Dollar Tango

Two years ago …

This post had estimated that the Chinese could possibly (and they have)  increase their monetary gold reserves. On April 24th, 2009, Bloomberg reported that China had increased

its (gold) reserves by 454 tons to 1,054 tons through domestic purchases and refining scrap metal, Hu Xiaolian, head of the State Administration of Foreign Exchange, said in an interview with the Xinhua News Agency today. China, the world’s biggest gold producer, has increased its holdings before, Hu said in the interview carried on the administration Web Site. They rose from 394 tons to 500 tons in 2001 and to 600 tons in 2003. The U.S. has the world’s biggest gold holdings at 8,134 tons, followed by Germany with 3,413 tons, World Gold Council data show. France has 2,487 tons and Italy 2,452 tons, while the IMF has 3,217 tons, according to the council.

Another report, from Market Watch, a WSJ web publication added,

The increase makes China the world’s fifth-largest holder of gold, just ahead of Switzerland, and among the six nations plus the International Monetary Fund that have reserves of more than 1,000 metric tons. Although Hu did not elaborate on where China had sourced the additional bullion, her comments were interpreted as meaning they came from domestic sources and may included refining of scrap metal.  Traders also say the gold was accumulated systematically over a number of years. Last year China ranked as the world’s largest gold producer with 12.2% of world output, equivalent to 288 metric tons. The U.S. ranked second with a 9.9% share, or 234 metric tons.

What are the future plans of the Chinese? A report quotes an analyst

China should increase its gold reserve from 600 tons to about 2,500 tons in a short term and to 3,000 tons in a long term to cope with the versatile exchange rate risks, said Teng Tai, an economist of China Galaxy Securities Company.

Of course, this really does not mean much – except that it may keep gold prices on boil. Whether a currency is backed by a 5% or a 10% gold reserve may not mean much, in this era of rampant use of “a technology, called a printing press” as an economic tool – not just by the US of A. For long term economic stability, gold needs to be in the hands of individuals – and not Governments.

India – 1 Country 2 Histories Many People

यूनान-ओ-मीस्र-ओ रूमा, सब मीट गए जहाँ से, अब तक मगर है बाक़ी, नाम ओ नीशान हमारा,
कुछ बात है के हस्ती,मीटती नहीं हमारी, सदीओं रहा है दुश्मन, दौर ऐ ज़माना हमारा

Allama Iqbal (Taraana-e-Hind)

Dead Civilisations

Understanding dead civilisations is dead easy. Grand hypotheses or criticism on scanty evidence can be heady wine. Archaeologists can speculate freely about Egypt, Greece, Rome, Babylon, Assyria, Hittites, knowing they are safe with only a limited material. India is different.

World’s oldest living civilisation, India, on the other, is difficult to understand. At every stage, India challenges historians and archaeologists. To make sense of India, we have to define India in 2 set of histories and many peoples within the 2 histories. After that, the haze drifts and it becomes clearer.

The North Indian Geography

One India is North of Vindhyas and the other is South of Vindhyas. These 2 India’s have a overlap (as is to be expected) and are complementary. The North of Vindhyas, stretching from modern day Orissa, MP, Maharashtra upwards has its core around the Indo Gangetic plains and the Himalayas. It is the core of North Indian geography.

This North Indian geography radiates out and spreads on the उत्तरपथ Uttarapatha (the Western world knows this as the Silk Route) to modern day Samarkand, Afghanistan, Tibet, Pakistan, Iran, Oman, Tajikstan upto the Caspian Sea. Central Asian tribes and kingdoms of Persians, Sakas /Scythians, Kushans (Kanishka, their most famous ruler), Huns, Mongols, Tartars set up empires with shifting boundaries. Hueng Tsang narrates that India ruled till east of Taklamakan desert. Sir Aurel Stern, recovered Indian language scripts from Central Asia.

Intermarriage, trade, alliances, diplomacy, military campaigns stretched and contracted zones of influence in this melting pot of peoples. Many board games played today were born along the Uttarapatha (the Silk Route from China to the Central Asia and thence to Europe). Chaturang, became shatranj and now known as Chess moved to Persia during the reign of Khusru Nuwshirwan in 6th century AD before the birth of Islam and from there into the Central Asia and the Levant – before the wave of Islamic aggression. Bana in early 7th century AD, praises Harsha, the King Of Kannauj, who reigned from 606-647. Bana describes this king as prince of peace, noting that in his kingdom the only wars were fought those moves on 64 squares. Thaayam, Chaupar, Pachisi (played today as Ludo) were Indian games that have become popular under different names all over the world.

In modern terms this geography was influenced significantly, by Greeks, Roman, Persian, Chinese and Indic cultures – in order of increasing importance. Indian classical characters have origins from various (now foreign) lands. Kaikeyi was a Caucasian /Iranian princess. Draupadi’s marriage with Pandavas was solemnised as per Tibetan practice (where polyandry is an accepted customs amongst in the ruling class). Gandhari was from modern Afghanistan or Gandhar as it was known earlier. Indian spiritual exchanges continued well till the advent of the colonial period. Guru Nanak Dev’s 11 years travel in the Middle East and his religious discussions with Bahlol Dana at Baghdad, Iraq are proof of this exchange.

Three major religions now dominate this Greater North Indian geography. Islam dominates most of modern Central Asia. Buddhism has deep roots in Modern Tibet, Ladakh, Sikkim, Bhutan and Burma. Major population in the modern North India follows Hinduism and Sikhism and has an Islamic minority.

It is the North-of Vindhiya India that gave birth to Hinduism, Jainism, Buddhism and Sikhism, the four major religions that dominate the world, Sanskrit (World’s first artificial, revolutionary language, as opposed to other evolutionary, Prakrit प्राकृत languages). India’s first known civilisation sprang in the Indus valley – evidenced by the cities of Mohenjodaro and Harappa. Many more archaeological site of the same civilisation (Lothal, etc) have been excavated. The Indus Valley script is not yet deciphered – hence linkages to pre-Sankrit is difficult to make.

British colonial understanding of India depended on limited and intermittent Greco-Roman writers for the definition of India. Colonial British and European historiographers further limited India’s definition to suit colonial ends. Colonialists have resisted change from the Egypt-Greece-Rome-Europe world view – which was called in question by the excavations and study by Friedrich Delitzsch, Alfred Jeremias, Peter Jensen, Eduard Stucken and Hugo Winckler, whose work has been obscured. To view India from modern political boundaries is to severely limit understanding of India. India was historically (and as per Indian texts) has been different from the current India that one sees. Post colonial India has further limited its own definition.

What Does This Mean

European historians have traditionally dated Aryan Indian civilisation at 1500-1800BC. The Indus valley was dated 1500-2000BC. At these dates, Hammurabi, ancient Babylon were already established. Greece was flourishing.

As for India – (following Max Mueller’s theory), it was a desolate, backward civilisation, awaiting Aryan conquest. Aryan conquerors came, raped Indian women, pushed Dravidians to the South, and ruled India. India’s progress was thus entirely due to the colonisers. This was history that was used by British colonisers and is accepted today.

And this colonial history is suspect – and being questioned.

Aryan Invasion & Migration Theory

Max Mueller’s theory, a German (orientalist, whatever they are) popularised a theory that originates the Indic civilisation from the Central Asia down to Iran – whether migration or invasion is possibly immaterial. Max Mueller’s theory is questionable due to his “open” agenda of Christian propaganda and the British colonial state patronage.

As per Max Mueller, from Iran, the Aryans branched out to Europe and India. Hence, the similarities in languages. There are alternative historical scenarios being mapped out. Politically, Max Mueller’s theory created a political divide in India that proposed Aryan conquest (by North India) of Dravidians(from South India). Unfortunately, our schools and history books still carry this suspect theory.

Recently, after racist attempts in the USA to push this theory, some NRI /PIO academics have carried out further research – which has made this theory look very flimsy.

From India To Babylon and Russia

Post colonial historical revision is proposing new theories. New archaelogical evidence supports history that shows Aryans moved from India to the Anatolian plains and established the Sumerian, Mesopotamian, Babylonian cultures of Elam, Mitannites, Kassites along modern Syria to Turkey. The Elamites, Mittanis, Hittites competed and traded with the Egyptians.

West Asian reluctance to give up slavery, made Indo Aryan rulers disengage politically from West Asia and Middle East. Judaism, Christianity and Islam, the three ‘desert religions’, gained the first converts from slaves, but continued with slavery till the 20th century. The 3 ‘desert religions’ instead of reforming slave societies, just transferred slave titles. Old slaves in turn became the new slave masters. Non-political Indian role in West Asia and Middle East continued to grow in terms of trade and learning. Babylon became a part of Alexander’s empire (and then the Roman Empire).

In 1906-07, an Turkish archaeologist , Theodore Makridi-Bey, started excavations at Hattusas (Boghazkoi), 150-200 kms from Ankara, in Cappadocia. He was joined by Hugo Winckler, a German archaeologist, specialising in Assyria. They unearthed more than 10,000 clay tablets which proved to be of tremendous interest.

Deciphered cuneiform tablets show worship of Varuna, Mitra and Indra – Gods worshipped by Indo Aryans. Rulers and Kings had names likes Shutruk (Shatrughna), Tushrutta meaning “of splendid chariots” (similar to Dashratha; Master of Ten Chariots) Rama-Sin (Assyrian Moon Good was Sin; in other words Ramachandra) Warad (Bharat) immediately before and after Hammurabi – the world’s first law giver. The Elam culture had a language which is similar to Dravidian languages. The Mitannite, Kikkuli, wrote on how to manage chariot horses. Egyptian king, Amenhotep I, married a Mittanite princesses. Elamites were founders of the first kingdom in the Iranian geography.

The Amarna letters (written by Tushratta) have made historians sit up – and a reluctant re-interpretation of history is beginning.

Aryans In Russia

In the new theory of migration from India, a second stream of migrants went up Iran into Upper Central Asia to the borders of Siberia. In 1972, excavations at Dalverizin Tepe in Uzbekistan uncovered what are possibly chess pieces – a game that has been popular in India, Iran and Central Asia. These have been dated around 100 BC.

In 1987, north of Kazakhstan border, at Chelyabinsk Oblast, a archaeological site, situated in Southern Ural Mountains, was to be flooded by a reservoir being built. The complex city built seems to have been built by Indo-Aryans, named Sintastha. Sin was the Assyrian /Central Asian Aryan Moon God and stha meaning place. This can be loosely translated to Chandrapur in modern Hindi. This city, shaped as ’rounded swastik’, followed the burial culture of the Mitanni rulers and Gandhara Aryan cities of 1500 BC-1700BC period – but 3000 kms apart.

Scientific Proof – Apart From Theory

A further bolster to the new theory is DNA and mitochondrial mapping done by various teams. These mapping and analyses (Sanghamitra Sahoo, et al) show that there has been no major DNA (Analabha Basu, et al) inputs into India. Some expert interpretation show that this data may require more and further research – as everything does all the time. This same research also shows that Indians share certain DNA markers with West /Middle East Asia – which supports Indian presence in Egypt, Mesopotamia (Syria, Iraq) and Anatolia (Turkey).

DNA research shows that a band of Indians went into Europe – now referred to as Roma Gypsies and share Indian genetic code. These Roma Gypsies have been living at the edge of European society – and have been severely persecuted through history. While Nazi and Croat brutalities against the Jews is known, that against the Roma Gypsies is swept under the carpet. European derisory references to Indian untouchability, overlook their own treatment of co-inhabitants for at least 1000 years is matter of shame for Europe.

Does This Change Indian History?

January 19th, 1992, an archaeologist, Albert Glock was killed in Israel. Many rumours, many allegations and many theories. What is it that he had discovered? Why did his discovery make it essential to kill him? Israelis, Palestinians?

In 1996, another writer made waves – Suzanne L. Marchand (Down from Olympus: Archaeology and Philhellenism in Germany 1750-1970. Princeton, NY: Princeton UP, 1996). The core of the book was how archaeology was being thwarted and her case in point – the Boghazkoi team.

If King Ram-Sin (1822-1763 B.C.), also Rim Sin, who ruled from the capital city of Larsa, a few miles north of Ur shortly before Hammurabi’s time was an Indian Aryan, then the history of the world changes.

It implies: -

• Indian-Aryans had reached the borders of Greece (Boghazkoi) – as the Greek civilisation was being shaped.
• Indian priests at Ur, managed the temple of Babylon where the world’s first banking was carried out.
• Ramayana, Upanishads, Puranas, Vedas were already composed and far ahead of any known civilisation at that time.
• Was the Temple Of Ishtar a temple to Durgalakshmi?
• Were the Tower Of Babel a place where Sanskrit teachers moulded and shaped the languages of the world? Is the ziggurat a later day version of शीखर shikhar?
• The oldest surviving Babylonian tower is an Elamite construction!
• Russia and Urals, where significant gold deposits have been mined, is the site for the Sintastha, Arkaim.
• The cylindrical seals at Ur were similar to the Indus Valley seals – including a sacred bull.
• Was the Trojan War actually a war between Indic rulers of Anatolia and the Greeks?

For most modern Western historians (and also modern Indian historians), only the Core North India, is Indian history, society and culture. This is the history which British propagated and showed India as a defeated civilisation. Invaded, pillaged and dominated. Inferior. Technologically backward. This is the history that is taught in schools and exists in popular imagery. Despite its many fallacies, this view is being perpetuated by propaganda interests of the British (Euro-American interests now) and the (various versions of) Congress party which has been the ruling party for the most of post-colonial India.

Some of the myths that have taken root and which have done much damage to the post colonial India. The infamous population theory, Chidambaram’s ill-informed 5000 years of poverty, poor natural resources, the supine Hindu, non-aggressive behavior by Indians amongst many others myths.

Scorched Earth Incidents In History – What They Reveal …

Guiding Spirit

“Novit enim Dominus qui sunt eius” (Kill them all, God will know his own) instructed the Abbot of Citeaux to followers at the start of the Albigensian Crusade.

And 200,000 people were killed.

Emerging nations (India is hopefully, re-emerging), at some point, will confront militant and aggressive powers, who have used major massacres to secure their ends. Apart from well documented and known military massacres , there are equally effective massacres – the Bengal Famine of 1943 being a prime example.

Apart from two major incidents of slaughter in Indian history – the Kalinga War and the sacking of the Vijayanagar Kingdom, there is no other recorded incident of massacres initiated by Indian rulers or conquerors.

Megasthenes (the Greek ambassador in Gupta court) writes, “”Whereas among other nations it is usual, in the contests of war, to ravage the soil and thus to reduce it to an uncultivated waste, among the Indians, on the contrary, by whom husbandmen are regarded as a class that is sacred and inviolable, the tillers of the soil, even when battle is raging in their neighborhood, are undisturbed by any sense of danger, for the combatants on either side in waging the conflict make carnage of each other, but allow those engaged in husbandry to remain quite unmolested. Besides, they never ravage an enemy’s land with fire, nor cut down its trees.”

This makes the Mumbai 1993 riots, the 1984 Sikh Pogrom and the Godhra carnage in India a matter of concern and historical discontinuity.

Vercingetorix

Rome was sucked into the vacuum left behind by Alexander’s death. Roman generals consolidated in Asia Minor and expanded into Europe. One significant territory was Gaul (most of modern France). In 52 BC, the Gaels rebelled. Governor of Gallic provinces – Julius Caesar.

The rebellion was led by Gaellic chieftain, Vercingetorix (pronounced with a k; or in Gaellic possibly Fearcuincedorigh, Chief of a hundred heads, was son of Celtillus, a chieftain executed by his tribesmen, for attempting to unite the tribe). After nearly 2 years of campaigning, Vercingetorix was defeated by Julius Caesar, imprisoned for 5 years and brought in chains to Rome – and strangled to death after a public display.

Rome used massacres freely to quell this rebellion, and to instill fear amongst the tribes. An entire population of Avaricum (Bourges), varying estimates of between 40,000-120,000, was massacred. At the least, 1 million of 3 million Gallic Celtic populations was killed by the time Caesar finished with Gaul. Many Gaels were taken as slaves by soldiers to carry their baggage or sold to slave traders which accompanied these armies.

Carthage

Kart Hadasht, or Carthage as we know it today, was a city founded by Phoenicians, a sea-faring nation, (based in an area near Tunis and modern Lebanon) – and one of the first rivals that Rome had. Carthage ruled over much of the Mediterranean and North Africa. It expanded into Spain – Barcelona is named after the Barca family, of whom Hannibal is the most famous.

Alexander’s campaign had taken the best of male youth from the Greek population and made it incapable of holding at the centre. Alexander’s vast dominions and revenues were unprotected. Greek political leadership were engaged with Alexander abroad. Its armies were tied up in Asia. No ruler after Alexander’s death in 323 BC was in a position to consolidate the conquests or overcome Greek-Macedonian infighting.

It took Greece another 600 years to recoup and challenge the Western Roman Empire. The split between the Western Roman Empire and the Byzantine Empire was along linguistic lines. The Byzantine Empire used Greek as the official language - and had many Greek Kings. The ‘Greek Miracle’ was rewritten by these Greek historians – 800-to-1000 years later. Much like modern day propaganda by the West, the Greeks used their language to create a myth around the Greek civilization. Alexander, a Macedonian (from modern day Balkans), was usurped by the Greeks (from the Mediterranean region) as their own.

In 306, BC, Rome allied with Carthage against the Greeks. Over the next 150 years, Carthage and Rome battled Greece, conquered Sicily and attacked each other. After three Macedonian wars and the war with Antiochus the Great of Syria, Rome established itself as a prime power.

Rome then turned its attention to other challengers, most notably, Carthage. Scipio’s armies, engaged Carthage in the Second Punic war (218-203) – and Carthage thereafter, was militarily, a spent force. Over the next 50 years, Carthage declined militarily – but prospered economically.

And Rome…

In 150 BC, controlling much of Alexander’s empire, Rome decided that no one must be left to challenge its power. Cato the Elder, influenced the Roman Senate and pushed for Delenda est Carthago(”Carthage must be destroyed”). An army under consuls Manius Manilius and L.Marcius Censorinus was sent to destroy Carthage, militarily, a shell of its former self. Carthage offered to surrender and deposited all its armour and armament. Roman generals refused to accept the surrender.

Carthage re-armed to defend itself. Roman generals could not make much headway. Finally, the Roman senate sent a descendant of Scipio Africanus (of the Second Punic War), Scipio Aemilianus – and in 146BC, Carthage was defeated. Carthage city was destroyed, its fields plowed and salted, so that the city would never come up again. 50,000 residents of Carthage were enslaved. In parallel, in 146BC, Corinth suffered a similar fate. Final tally during the Punic Wars over 200 years – 10 lakhs people (1million).

Spartacus

50 BC. Alexander had passed into mythology. Romans had taken complete hold of the Alexandrian Empire. Millions (men, women and children) were enslaved. Swollen by revenues from the inherited Alexandrian territories of Asia Minor; by loot and conquests from Europe, Roman society was rolling in wealth. Nearly a million slaves toiled to keep Roman population well fed and in luxury.

On the other side of the world, Alexander’s conquests had increased trade manifold. Indo Roman trade flourished. Greco-Roman currency, laws started at Indian borders and led right to the heart of the world’s largest and most prosperous market. A ‘merchant prince’, Chandragupta Maurya and a Brahmin minister, Kautilya Chanakya, with the support of the 16 mahajanapadas (principal ruling Indian federations) had united most of Indian subcontinent. The most famous of this dynasty, Ashoka (The Great) started the spread of Buddhism.

With rapid economic growth, also came rapid change in social differences. In Rome, slacvery was political and economic (slaves and master). In India, many religious teachers started movements against slavery – now commonly popular as ‘ahimsa’. In Rome this sparked the Spartacus revolution. 100,000 slaves mutinied and were led by Spartacus. After many battles between 72BC-71BC, Spartacus and his slave legions were defeated. 6,000 slaves were crucified on the main Roman highway – the Via Appia.

Ustashe Cleansing

Ustati in slav languages means “to rise”. 1939, Italy, supported and created the Croat Ustashi Army made up Croats. This army reached a size of upto 100,000.

After Hitler’s sweep across the Balkans, a Nazi puppet government of Ante (Anton) Pavelic, headed the “Catholic State of Croatia.” The Pavelic regime supported “Clerical Fascism”-a mix of Catholic religiosity, Anti-Semitism and authoritarian politics. Mussolini’s Italy and Nazi Germany’s “Ausland” department assisted Ante Pavelic and his Catholic terrorists to set up a dictatorship. Ante Pavelic was declared Poglavnik – or what we better know as Fuhrer. Archbishop A. Stepanic established a Croat Separatist Movement and seized power.

They had a simple one point agenda – One third to be converted from Orthodox Christians to Catholic Christianity; one third to be killed and one third to be expelled . Their allies – Before and during the WWW2 – Italy, Germany and The Vatican. More than 10 lakh were put in concentration camps – and most died.

After WW2, Marshal Tito curbed the Ustashi – and the USA embraced these Ustashi to “fight communuism”. After death of Marshal Tito and collapse of the Soviet Empire, these groups were sent back - and the old massacres restarted.

Final tally – More than 20 lakh people killed.

Mau Mau

Post WW2, Churchill was the British Prime Minister from 1950. Kenya became the new jewel in the depleted British crown. The crown princess (the current queen) celebrated the end of war, with a well publicised holiday (1952) at a tree top lodge in Kenya. Churchill resisted the “liquidation of Her Majesty’s empire …” and “winds of change” were yet to blow across Africa.

Kenyan de-colonialisation movement was symbolised by a Kikiyu tribesman, Kamau wa Ngengi, who later took the surname, Kenyatta (from the Kikuyu word for a type of beaded belt he wore) and the first name Jomo – Jomo Kenyatta. Meanwhile, inspired by Gandhiji’s success in India, 1950 saw, at a joint meeting of KAU and Kenya Indian Congress at Nairobi, Trade Unionist Makhan Singh’s resolution for freedom for East Africa being passed. In 1952, Jomo Kenyatta was arrested in ‘Operation Jock Scot’ with 182 other African leaders.

The Kikiyu tribe, considered relatively less aggressive (compared to the Masais) and well settled in agriculture, were provoked to revolt by loss of their lands to white settlers. They formed the Land and Freedom Army and what followed was a 11 year guerilla war, which descended very soon into brutality – and reminded some of Nazi ways of Joseph Mengele. The British and the Western press called this the Mau Mau uprising in a derogatory manner.

Final count – as per Caroline Elkins 100,000 dead; 10,00,000 imprisoned and detained without legal cause; a record 1090 people hung to death. British Government numbers – 12,000 dead Kenyans, (certified). 100,000 imprisoned. Another article estimated close to 12.5 lakhs (of a total population of 50 lakhs) were killed or imprisoned.

Wipe out of the Red Indian Population

In 1492, when Columbus landed in the West Indies, the native American population was 3 million (in the what is currently USA) and more than 10 million in the Americas – and they spoke a 600 languages. 300 years later, they had become tourist attractions.

The British and the independent Americans were equally brutal with the Red Indians. During the French and Indian Wars, Britain waged a biological warfare against the Red Indians by distributing small pox infected blankets to Red Indians. 70 years later, Andrew Jackson delayed (some say withheld) small pox medical supplies and vaccines from Red Indians.

During the American War of Independence against the British, George Washington, was clear what to with native Red Indians at least. On May 31, 1779 Washington sent his official Instructions to Major General John Sullivan:

Sir: The expedition you are appointed to command is to be directed against the hostile tribes of the six nations of Indians, with their associates and adherents. The immediate objects are the total destruction and devastation of their settlements and the capture of as many prisoners of every age and sex as possible…whence parties should be detached to lay waste all the settlements around, with instruction to do it in the most effectual manner; that the country may not be merely overrun but destroyed…

Reminiscent of George Bush threatening the world , either you are for us or against us , George Washington, made a similar remark more than 200 years ago. George Washington wrote to the President of the Continental Congress in 1776:

In my opinion it will be impossible to keep them [Indians] in a state of Neutrality, they must, and no doubt soon will take an active part either for, or against us…

Thomas Jefferson view of the native Red Indians was equally dismissive.

He (King George III) has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions… (Thomas Jefferson, Declaration of Independence, 1776).

Treaty after treaty was made with Red Indians – which were broken time and again. The whites coveted everything that the Red Indian had – but mostly, his life. This “land of the free” by all possible (and some impossible) means was soon made land free of the “natives and savages”.

The US President, Andrew Jackson started by (December 8, 1829) posing as a Red Indian sympathiser. He proclaimed

“By persuasion and force they (Red Indians) have been made to retire from river to river and from mountain to mountain, … tribes have become extinct … Surrounded by the whites … which by destroying the resources … doom him to weakness and decay … That this fate surely awaits them if they remain within the limits of the states … Humanity and national honor demand that every effort should be made to avert so great a calamity.” (parts excised for brevity and ellipsis inserted; bold letters mine).

His solution – remove the Red Indians. In 1830, 40 years after George Washington became the President, the “land of the free”, a law was passed to make the land free of the native Cherokee (Red Indian) population. The vast prairie lands were expropriated – and the Cherokee Indians were marched out by the US army. This march, Trail Of Tears, signalled the break of treaty by white Anglo Saxons. Land West of the Mississippi were to belong to the Eastern Indians ‘in perpetuity.’

The Red Indians resisted removal and forcible transfers. Their resistance was brutally crushed.

By December 4, 1832, Andrew Jackson was saying,

“After a harassing warfare, prolonged by the nature of the country and by the difficulty of procuring subsistence, the Indians were entirely defeated, and the disaffected band dispersed or destroyed. The result has been creditable to the troops engaged in the service. Severe as is the lesson to the Indians, it was rendered necessary by their unprovoked aggressions, and it is to be hoped that its impression will be permanent and salutary.” (bold letters mine)

Gen. Winfield Scott was sent in May 1938, (with an army) to deliver the ultimatum to the Cherokees. Move or we will make you. At your cost.

President Woodrow Wilson echoes the ideology behind the alleged “genocide” –

“The experience of Liberia and Haiti show that the African race are devoid of any capacity for political organisation… there is an inherent tendency to revert to savagery and to cast aside the shackles of civilisation which are irksome to their physical nature. Our industries have expanded to such a point that they will burst their jackets… Our domestic markets no longer suffice; we need foreign markets. “In the matter of Chinese and Japanese coolie immigration, I stand for the national policy of exclusion… We cannot allow a homogeneous population of a people who do not blend with the Caucasian race.”

The entire Anglo Saxon race was against the very existence of the native Red Indian. The British Colonialists and the White Anglo Saxon settlers continued a scorched earth policy in their genocidal campaign.

Just like Romani Gypsy and Australian aboriginal children were taken away from their parents, Red Indian children were also removed. In different continents, at different times, similar tactics were used by Europeans and the Anglo Saxons in the colonies.

Aborigines

In 1788, the estimated Aboriginal population was 7,50,000. By 1911, the survivors, were estimated at 31,000. Prior to the Anglo Saxon settlement, “Australia was an ‘empty land‘ because its inhabitants did not count as human“. Today, the Anglo Saxon race prides itself for the building of Australia. Australia was a British colony and till date the Queen (or King) of Britain is the head of State for Australia.

Churchill, the British Prime Minister during WW2, one time Chanecllor Of The Exchequer, had his views on Arabs, Indians, Aborigines, Red Indians –

“I do not agree that the dog in a manger has the final right to the manger even though he may have lain there for a very long time. I do not admit that right. I do not admit for instance, that a great wrong has been done to the Red Indians of America or the black people of Australia. I do not admit that a wrong has been done to these people by the fact that a stronger race, a higher-grade race has come in and taken their place.”

Churchill similarly had highly enlightened views on Arabs – “The Arabs are a backwards people who eat nothing but Camel dung.”

One of the main causes of deaths was public health. In India, in the early 19th century, an estimated 25 million died due the cholera epidemic – as the colonial Government was not bothered (to give them the benefit of any doubt). In Northern Ireland, during the Irish Famine, the then British Prime Minster with held supplies essential aid from starving Irishmen. In USA, the Government delayed allocations to fight small pox, 20 years after similar actions for the whites. Similarly from the Australian aborigines.

Genghis Khan & The Mongol Tribes

Temujin, more famous as Genghis Khan had an empire larger than Alexander and lasted longer than Alexander’s. From remote fastness of Mongolia to borders of Western Europe, from Central Asia to Arabia, his family ruled for nearly 300 years – over an empire larger than Alexander’s. The expansion of the empire continued well after his death – unlike Alexander.

His armies made a habit of slaughtering entire cities – and the final tally is close to 30 lakhs (3 million). In his direct line of conquest along The Silk Route, Eastern /Central Europe had a population of 35 million. European population in medieval times is estimated at 60-80 million. World population at that time is estimated at 50 crores (500 million). Genghis Khan and his hordes slaughtered 20%-30% of humanity in affected territories.

The Bengal Famine 1943 & Indian Gold Drain

Between 1920-1945, the British manipulated exchange rates and trade to impoverish the Indians. Food grain prices rose sharply on supply disruptions during WW2. Indians had no financial reserves. 40 lakhs Indians died in the resultant Bengal Famine.

India Pakistan Partition

After WW2, Churchill promised that he will not “preside over the liquidation of Her Majesty’s empire …” Clement Atlee promised the British voter a quick exit from India. Post war Britain was tired of rationing, shortages – and subsidising a starving, bankrupted India. The Colonial Office was reporting deficits. Gold transfers from India had reduced to a trickle.

The clue is in the body language

Clement Atlee won. Mountbatten was sent to India. An unprepared India and a leaderless Pakistan were handed over governance.

Many theories apart, it showed another extension of the “scorched earth policy” and a callous disregard for 10 lakh brown lives that were lost to Hindu-Muslim-Sikh riots.

Similarly, after the fall of the Chinese Imperial Dynasty, The Japanese Occupation, WW2, Western powers aided both sides in a conflict. Mao Ze Dong was aided by the Americans against the Japanese, Chiang Kai Shek against Mao Ze Dong and Communist Chinese army built with western aid (during WW2), occupied a pro-India Tibet.

Haiti – First Slave Independence

14th August 1791. St Dominque. A black slave overseer killed a pig. And it sparked off the world’s first successful slave uprising.

Boukman Dutty was Voudou N’Gan (oungan, houngan, voodoo priest), killed a pig as a part of an African tribal ritual Bwa Kayiman, to his ancestors and Ogoun, god of fire, iron and war. Ogoun and Erzulie Dantor (Ezili Dantor), a Vodou l’wha (loa) a warrior spirit, responded to this call to protect these slave warriors.

25th August. Night of Fire. 50,000 slaves rose in revolt. More than 1000 sugar and coffee plantations were put to fire. Flames could be seen as far as Bahamas. 31st December 1803, liberation brought about by vengeance, independence was declared.

St. Dominque, now called Haiti, was a French colony with 800 sugar plantations and 4,00,000 slaves from Niger and Dahomey (now Benin) in West Africa. Haiti, the greatest jewel of French colonies, accounting for 40% of French GDP in 1700s, was the largest market for slaves in Atlantic trade. It was the largest producer of sugar in the world and competed with British colonies (like India) for indigo production and had thousands of coffee plantations. Discovered and exploited by Christopher Columbus,

What happened to the original population 1.3 million of its original population. Done to death in forced silver mines in 10 years.

Cuban Independence

After the fall of Haiti, by 1860, Cuban production grew to 500,00 tons of sugar – 1/3 of the world’s production. Under Spanish rule from 1511, the indigenous population was annihilated and the island was populated by imported African slave labour. Henry Clay, Secretary Of State, in President John Quincy’s administration,”This counry prefers that Cuba and Porto Rico remain dependant on Spain …”

In 1844 Cuban slaves revolted unsuccessfully. 10th, October 1868, Carlos Manuel de Céspesdes released his slaves and El Grito de Yara, a 10 year war against Spain started.

General Valeriano Weyler, “The Butcher,” to stamp out the independence movement. He created modern history’s first concentration camps. Hundreds of thousands of men women and children were put into concentration camps. In Havana city, 52,000 people died. The peasants retaliated by burning down vast Spanish owned sugar plantations. Weyler was recalled to Spain in 1879. October 7th 1886, slavery was finally abolished. Spain continued to rule Cuba – with greater repression.

” Seventy-five percent of Latin America’s exports to the United States came from Cuba and half of the Latin American imports from the United States went to Cuba in 1894. The United States had well entrenched itself in the Cuban economy and did not want to lose a valuable market so close by. Spain clung to its remaining claim. Cuba was caught in the middle in the mid-1890’s when the United States reduced sugar imports with the Wilson-Gorman tariff and Spain restricted United States imports to Cuba. Proponents of annexation and independence divided Cuba’s population.” by Brad Williford in The Cuban Revolution of 1895-98

125 years after Independence, US was developing colonial ambitions. The Monroe doctrine was used to create colonies in the American backyard. “Yellow Journalism” invented. On April 25th 1898, the US Congress declared war. For the next 4 months, the US fought the Spanish American War. On August 12th, 1898, Spain signed the peace treaty. On December 10th 1898, the treaty of Paris was signed. USA annexed Philippines, Guam and Puerto Rico in exchange for US$2,00, 00,000. Cubans became nominally declared free but with many conditions.

Cost – Over 20 years that Cuba fought the Spaniards, 500,000 people died.

The Israel – Palestinian Conflict

Post WW2, USA was the significant power which could project its power across continents. To protect this position, the USA and Europeans created Israel on specious grounds. Less than 1 lakh Jews (original inhabitants) were given preference over 10 lakh Muslims and the state of Israel was formed. Palestinians are today paying for Europeans genocide of Jews. If the Jewish state was essential, the Europeans could have created a Jewish state in Europe and guaranteed safety and neutrality of the same.

Why did West Asia have to pay for European genocide? One reason – Oil.

Israel is the Western world’s cat’s paw in West Asia. Price of this oil politics – More than 2 million in the last 50 years. Innocent Israelis and Palestinians – fed on distorted history kill and maim each other. The beneficiaries – Europe and USA.

Tally – More than a million dead.

The US Philippine War

After the abolition of slavery in USA, the ‘land of the free’ turned to proxy slavery – colonialism. The first attempt was Cuba.

In Asia, Philippines was the American colony in the Asia. To protect the US$2,00,00,000 payment made by the USA to Spain, USA colonial forces killed 1.4 million during the period 1899 to 1905. Over the next 80 years, Philippines was ruled by Americans and foisted dictators like Marcos – at the cost of these Filipinos. As history would have it, Brigadier General Arthur MacArthur fought the first Filipino war – and his son, Douglas fought in the second during WW2.

Human Cost – Some 1.4 million dead during the period from 1899 to 1905.

More updates on …

Atomic Bombing Of Japanese

The Jewish Persecution In Europe

African Slavery

Brussels & Berlin Conferences – Agreement on Colonies & Slavery

Conquistadors

Hitler’s Holocaust

The Sacking Of Vijayanagar Kingdom

Timur, the Lame

Sovereign Gold – How Safe Is Indian Gold …

How safe are the world’s largest reserves of gold?

India, with the largest (private and government) reserves of gold in world, needs to examine the safety question. While, there have been many advocates and supporters for many European claims, I am yet to see any support for reclaim of any of the colonial loot from India by Britain.

In spite of close cultural and economic relations, WW2 was started by countries of Western world for gold, oil and access to markets. With excess of printing capacity, any country in world can print notes. During any period of turmoil, what matters is gold. After all, even India with the largest gold reserves in the world, needed to pledge gold in 1991 for small loan from IMF and World Bank.

Is our gold safe? Look at the experience of some of these countries.

Belgian Gold

Anticipating German invasion of the Netherlands, the National Bank of Belgium moved some part of its gold reserves to Bank of France, for safe keeping. However, after France itself came under attack, Belgium instructed the French to transfer Belgian gold to London. The French instead, moved that gold to Dakar, Africa, to a French bank. After the fall of France, Pierre Laval, Foreign Minister in the French Vichy government of Marshal Petain, handed over the gold to Hitler’s Germany – which reportedly, recast this gold, put pre-war stampings and sold it to the Swiss. What happened after that. Well, the Belgians lost it all, I presume.

British Experience

Britain itself found that the they could buy anything only with gold. A staunch ally like the USA, demanded payments in Gold. Britain sold the Viscose Company, receiving a paltry amount. British investments in Canada were disposed to pay US for for raw materials. A significant part of British gold reserves, were safely moved to Canada on board the battleship Revenge and HMS Emerald to the vaults of Bank Of Canada (which still acknowledges the British crown) banks. American warship, Louisville was sent to Simonstown South Africa to take delivery of British gold

Czech Gold Diversion

After Hitler’s invasion of Czechoslovakia, under the British-Czech treaty, Britain was enjoined to join the war on the Czech side. Instead, Montagu Norman, the head of Bank Of England, under a technicality, handed over Czech Gold to the Germans – in spite of the British Parliamentary restrictions; a supposedly secret transaction, blown open by a connected reporter.

After many enquiries, investigations, Montagu Norman, (yes, the same racist who collaborated with Churchill to loot the Indian peasantry) was let off without even a rap on his knuckles. After the war, Montagu Norman set up an institute to do research (like Joseph Mengele) in eugenics. His former boss, another racist, Churchill, set his armies on the Mau Mau, fighting for Kenya’s independence, and hundreds of thousands black Kenyans disappeared. Did the Czechs get their gold back? I doubt!

Central Banks – Portugal, Spain

From the 1980s, it became fashionable to hedge, trade, create derivates, get into junk bonds. And the King Of Junk was Michael Milliken. His company Drexel, Burnham and Lambert.

A subsidiary of Drexel, Burnham and Lambert, used borrowed gold from Central Bank of Philippines, Pitcairn Island, Poland, Portugal, Puerto Rico – all lost money. Further investigations show that more central banks lost more money – which were finally shown as “gold sales” by many European banks – and there this where things get murky.

Death Of Edmond Safra

Friday. December 3rd, 1999. TV channels (in India too) announced that Edmond Safra died in mysterious circumstances. Based out of Monaco, a known off shore finance centre, he is believed to have been in the know and arranged numerous gold dealings. He was supposed to be behind the George Soros run-in with the Bank Of England gold sale and physical delivery.

At the time of his death, he was negotiating the sale of his bank to The Hong Kong & Shanghai Banking Corporation – set up with opium earnings by Jardine Matheson and David Sassoon and sundry others.

This time the conspiracy is supposed to have been hundreds of tons of Russian-Soviet gold (looted from Tsars?) and never returned to Soviet Russia – and now sold through Edmond Safra.

French Pragmatism

Before, during and after WW2, large numbers of national and private treasures were looted, misappropriated and generally fell into disputes. The French Government had a similar experience .

Secret of Japan’s rise

Year 1542. The Sado gold mines were discovered. In 16th-17th century, Japan became the second largest producer of gold in the world. Rapid rise of Japan after that and the rest of story is known to the world.

Korea claims that Japan plundered Korea of hundreds of tons of gold from 1937-1944. Philipines, Indonesia have all raised claims against Japan for war time gold loot.

Regardless, one American writer had definitely hit a jackpot – Gold Warriors: America’s Secret Recovery of Yamashita’s Gold (By Sterling Seagrave, Peggy Seagrave). Ian Fleming is supposed to have based his story on the Yamashita chapter of WW2.

Japan’s top underworld crime boss, Taisho (Admiral) Yoshio Kodama, (ranked as an admiral at 34 years) a major figure in the Japanese underworld was in charge of Project “Golden Lilly” – after one of Hirohito’s poems! Objective – looting gangsters in Japanese occupied territories. Supervising the operations was Emperor’s Hirohito’s brother, Prince Chicubi. Management – Japan’s top financial figures.

Subsequently, allegedly, a lot of this gold landed with Ferdinand Marcos; the Filipino dictator. Swiss banks, Macao criminals, American generals and politicians – all involved.

Glen Yeadon, writer of “The Nazi Hydra in America: Suppressed History of a Century” writes how Presscott Bush (grand-father of George Bush), Douglas MacArthur were involved in various launderings, diversions and subterfuge involving Nazi gold and Japanese gold after WW2.

The Melmer Account

After WW2, and fall of Germany, at the Mercker mines, occupying armies found Nazi treasures.

And details of a bank account.

The bank account held in the name of Bruno Melmer, a SS captain. Further investigations revealed that this account received various looted material of the German Army – and gold recovered from Jews killed in concentration camps. After due investigations these files were returned to the the concerned German bank. In 1975, a journalist Peter Bild discovered that all these files had disappeared.

So had the gold.

Spain and Gold

For nearly 10 years, the Spanish Civil War raged – a proxy war between the Germans and Russians. The target, Spanish gold. In the see-saw of the civil war, entire Spanish gold disappeared – between the maws of the French and the Russians. Reputedly, Stalin boasted that Spain will never see their gold again.

I am sure the ghost of Incas were at peace after 400 years.

Ustashi Gold

Balkans, true to their name kept fighting and looting each other – before Alexandar (the Great) and after.

During WW2, after Hitler’s sweep across the Balkans, a Nazi puppet government of Ante (Anton) Pavelic, headed the “Catholic State of Croatia.” Archbishop A. Stepanic established a Croat Separatist Movement and seized power with Ante Pavelic. The Pavelic regime supported “Clerical Fascism”-a mix of Catholic religion, Anti-Semitism and authoritarian politics. Mussolini’s Italy and Nazi Germany’s “Ausland” department assisted Ante Pavelic and his Catholic terrorists to set up a dictatorship. Ante Pavelic was declared Poglavnik – or what we better know as Fuhrer.

Under the Ustashi, a reign of terror descended upon Jews, Gypsies and political dissidents. The Ustashi extorted a fortune in gold and other valuables from Jews and Gypsies and thereafter shipped them to work in concentration camps. The Jews have a well-organised lobby, organisation and a nation which has pursued banks, criminals, countries for recovery of their property.

What happened to the Roma Gypsies (claim they are of Indian descent). Nothing. Sweet nothing at all.

Quantity Of Gold – 2400 kgs atleast.

The Final Accounting

Nazi gold was found by various armies and individuals all over Europe. In Lake Toplitz and in the Thuringien salt mines. Finally a co-ordinating agency was set up by Americans for gold recovered by American Armies to account, re-distribute and reconcile claims. The European banking system, especially the Swiss and the Vatican have been subject to various claims, allegations and conspiracy theories.

Feminism, Women, Social Position, et al

Indian women in the ancient world …

One of the wonders of the ancient world was The Hanging Gardens of Babylon – commissioned by King Nebuchadnezzar of Babylon for Amytis, his homesick Elamite princess. Amytis, the daughter of the Median King, (a neo Elamite King), longed for the greenery of her homeland. A prominent ruler of Babylon, Nebuchadnezzar, 605-562 BC, (as spelt in English) not only married a Elamite princess, but also took on an Elamite name (related to the Dravidian languages). Replace ‘b’ with ‘d’ and you are very close the Tamil name of Neduncheziyan (Nedunchedianuru) – a current and modern Tamil name.

Interestingly, Neduncheziyan is more famous as the fabled erring Pandyan King in the Tamil classic – Silappadhikaaram. Neduncheziyan’s mistaken justice, brings him grief and finally death. In the Tamil classic, Neduncheziyan is overshadowed by the other King, Cheran Senguttavan. Cheran Senguttuvan’s fame rests today on the Tamil classic, Silappadhikaaram – written by Jain Saint, Elangovadigal.

And who were the Elamites?

The Elamites

The people of Elam (yes in Tamil, Eelam means homeland), were the first to civilise the Iranian Peninsula in the 2700 BC period. They were contemporaries of the Egyptians, the Mittanis and the Hittites. The Elamites were a significant people till the 800BC in Persia (modern day Iran).

The Elamites concluded a major treaty with the Akkadian, King Naram-sin (Naram to Narain and Sin is the moon goddess, Chandra; possibly Narayan Chandra). Akkadian language, is itself implicated of being in cahoots with Sanskrit and Indus Valley languages – and the creation and spread of most modern languages. The Elam culture had a language which is similar to Dravidian languages. Elamites were founders of the first kingdom in the Iranian geography.

The Greatest Chariot Battle In History

1301 BC. An Egyptian land army, numbering more than 20,000, (divided in 4 divisions) was raised. The leader – Pharoah Ramesses-II of the XIX Dynasty. They were out to punish a small kingdom of Hittites, for trying to lure Amuru, Egyptian vassals, to their side. Another force set sail, in ships, to reach Byblos and squeeze the Hittites in the world’s first pincer movement.

What followed was a historic chariot battle.

Peace broke when the queens of Hatti and Egypt, Puduhepa and Nefertari, both of Indo-Aryan extract and parentage, respectively, sent one another congratulatary gifts and letters. Over the next 15 years, they arrived at modus vivendi and drafted a peace treaty.

This peace treaty is the first in recorded history. A replica of this peace pact, in cuneiform tablet, found at Hattusas, Boghazkoi, hangs above the Security Council Chamber, United Nations, in New York, – a demonstration to modern nations the power of peace through international treaties.

Enter The Mittanis

One series are letters written by a Mittani king named Tushratta (meaning ” of splendid chariots”, similar to Dashratha meaning ” of ten chariots”) writes to his son-in-law, Amenhotep III, the king of Egypt ( the letter reads much like an Indian father-in-law’s letter will). Amenhotep married Tadukhepa, Tushratta’s daughter.

In these letters Tushrutta reminds Amenhotep, how his father, Thutmose IV had sought marriage seven times, with Tushrutta’s daughter, before this marriage to, Tadukhipa, was agreed upon.

Hittites were one of the main branches of Indics in the region. Ramesis II is about 100 years after Akhenaten – (एकनाथन Eknathan meaning One God in Sanskrit). Akhenaten’s father, Amenhotep-III who wanted to marry the Mittani (another Indic kingdom) princess, daughter of Dashratta (Tushrutta).

Similarly, in order to marry Hattusil II’s daughter, the Amorite King Putakhi agreed, in the treaty of alliance for a specific clause “to the effect that the sovereignty over the Amorite should belong to the son and descendants of his daughter for evermore”.

The daughter of King Artatama was married to Tuthmose IV, Akhenaten’s grandfather, and the daughter of Sutarna II (Gilukhipa, – “khipa” of these names is the Sanskrit “kshipa,” night) was married to his father, Amenhotep III (1390-1352 BC), the great temple builder (alike the focus on temple construction in South East Asia 1000 years later).

Queen Sitamen

In his old age, Amenhotep wrote to Dasharatha many (7 requests are documented and evidenced) times wishing to marry his daughter, Tadukhipa. It appears that by the time she arrived Amenhotep III was dead. Tadukhipa married the new king Akhenaten and she became famous as the queen Kiya (short for Khipa).

What is it, about these Indic princesses, that made them so sought after?

Indic women and Political Power

Interestingly, most Indic countries have had women in political power – in the post WW2 nations. Srimavo Badranaike, Indira Gandhi, Benazir Bhutto, Shaikh Hasina, Khalida Zia, Sukarnoputri, (not to forget Mayawati, Jayalalitha, Uma Bharathi) were amongst the first in the world to rule their countries. The three divas/devis of Indonesia are not a co-incidence. Aung San Suu Kyi is waiting in the wings to add to this list.

An all-time favorite is, of course, the USA without a woman President, Chief Justice. So, much for political opportunity in the land of the free!

Economic Power

India has the world’s largest private Indian gold reserves! And it is Indian women who have created, maintained these reserves over the centuries - even to the amusement of the westerners. It is RBI’s failure that India has no financial instrument to make this gold, liquid, usable and empower India(n women).

Chinese Guanyin Figure

Religious

The 2 most important festivals in India – Deepavali and Dusshera, are devoted to Lakshmi and Durga. Feminine goddesses. How many societies in the world have any female deities at all? Which society celebrates the biggest days in the year with female deities?

Marija Gimbutas, a Lithuanian archaeologist, an expert in 16 European languages, excavated sites of Vinca, Starcevo, Karanovo and Sesklo cultures. Based on some pioneering work, she suggested that Indo-European cultures have descended from matristic (not even matriarchal) cultures which also worshiped “mother goddess” or female deities – something which starts happening from Indic cultures only. The whole of West Asian, European cultures have no worship of any female deity. Interesting thing is the furore this has caused – How can We Europeans, be female worshipers? is the unspoken objection!

In China, it was Buddhism which enabled the introduction of a female deity, Guanyin (or Kuanyin, Kwan Yin, Miao Shan, 观音觀音), the Goddess of Mercy, in the Chinese pantheon. Though there are 4th century mentions of Guanyin, but it was only 14th century, during the Ming dynasty, that worship of Guanyin became popular.

Working Women

Amongst the poor and low income income families, women are in a position of power as they significant contributors to family income. Malnutrition amongst poor, exists – regardless of gender or age.

Amartya Sen highlights in his landmark study (Poverty and Famines: An Essay on Entitlement and Deprivation By Amartya Sen) about The Great Bengal Famine that “…for every dead woman there were nearly two dead men …” Sir Charles Elliot Famine Commissioner in Mysore in 1876 the general belief about Indian famines that “all authorities seem agreed that women succumb to famine less easily than men.”

However, it was by the beginning of 20th century, that the West put the Birkenhead Drill in place. First used by HMS Birkenhead, in 1852, it allowed orderly evacuation of women and children first. Over the next 50 years this became standard practice. In India, during famines, the old, the children and women were the last to be deprived. It was the men who paid the price.

Role Models

Indian texts, scriptures and classical litertaure has no negative characterisation for a wife – Mandodari, Ahalya, Sita, Draupadi, Kunti – the entire pantheon. The story of Kannagi’s fight for justice for her husband (from the classic Tamil play, Silappatikaram) is repeated in some part of South India, every day, even now, 2000 years later.

The Western frieze of mythical characters includes Delilah, Helen, Clytemnestra , Jezebel - murderesses, adulteresses. The entire Greco-Roman frieze does not have a single positive characterisation of a wife.

Women are the source of all evil is current western concept – after all, Eve led Adam to his downfall from the Garden Of Eden. After a war with Midianites, Moses asked the Israelite army to kill all the women captives.

Moses blames the women – and an angry Moses tells the commanders

“of thousands and commanders of hundreds – who returned from the battle.”Have you allowed all the women to live?” he asked them. “They (the women) were the ones who followed Balaam’s advice and were the means of turning the Israelites away from the LORD in what happened at Peor, so that a plague struck the LORD’s people. Now kill all the boys. And kill every woman who has slept with a man, but save for yourselves every girl who has never slept with a man.” (Italics, emphasis, bold letters mine).

In India a Grihalakshmi can take her Pati Parmeshwar anywhere in life.

Universal Suffrage

Universal suffrage came to the USA, Britain, France, Belgium, Canada, Australia after a long struggle. The USA had to pass the Nineteenth Amendment in 1920; Italy in 1945; Canada in 1940; France gave women the right to vote in 1945; Switzerland in 1971 gave its women the right to vote in all elections.

These “advanced” countries, gave women the right to vote after a long struggle. In India, universal suffrage in 1950 started from the very first election in sovereign India. Without any female activism, Republican India had universal adult franchise from the very first day.

Education And Women

Indian women have been doctors, lawyers – and freedom fighters. The role of women like Sarojini Naidu, Kamala Nehru, Kasturba Gandhi’s Annie Beseant, Madam Cama is more famous than known.

An interesting insight on the role that Indian women are playing in education is highlighted in – “Postcolonialism, Feminism, and Religious Discourse” by Laura E. Donaldson, Pui-lan Kwok. Indian women have been in the vanguard of the Indian culture – Bharatnatyam, Classical Indian Music and Sanskrit. If Indian culture survives another 100 years, Indian Woman, you saved it.

In the explosive TV content sphere, it is a matter of interest that TV stars are women – and men seem to be playing a nominal role (of looking good; next to their women).

Indian Women & Fashion

Much to the grief of Luciano Bennetton, Indian women have not taken after western fashion – unlike Indian men. Indian women have changed their fashion sense – from very regional variations to the very pan-Indian salwar kameez. But Indian.

But 2300 years before Luciano Bennetton, when Alexander’s armies visited India, one of the few things they could take away were Indian clothes. Indian clothing became popular in Macedonia. The Macedonian national costume is the salvaria – which is the same as the salwar of the Indian North West. The entire North West Indian sub-continent, from Punjab to Afghanistan wears the salwar – which is tubular leggings.

This is a unisex garment – like the sari /dhoti also is. And popular all over India today. Unlike other parts of the world, where women were forced to conform to a male standards and prescriptions of dressing, Indian women were free and dressed like their men did (Feminists note – Indian men were forced to dress, like their women did, since you insist).

Unisex clothing, saris and dhotis dominate the Indian plains, and the salwars, in the North West mountain regions of Indian sub-continent. The Indo-Scythians used leather leggings – which were helpful in case of long marches on horse backs.

Criminals & Rape

While the press and activists beat their breasts about crimes against women, an interesting first hand insight that I can share. In Indian prisons, criminals and under-trials accused of rape are shunned by all other prisoners. They are not welcome in by other prisoners – in any any social activity. This is one crime that other criminals do not accept. However, much Indian films may show criminals targeting women, in reality, inside prison walls, criminals who have targeted women are not accepted.

Divide et impera

Indian women have a poor status in society – just like all other Indians. Period.

Indian society, due to economic poverty, political evolution, social changes has a long way to go before people (women, men and children) are treated right. Indian poli+bureau+crats are following their old colonial gurus and using ‘divide et impera’ divide and rule strategy. Further, western agenda, ideology, humungous funds drive many governmental programmes – which further creates false issues.

So, there are a myriad lost causes – child labour, dowry, poverty, backward classes, reservations, each one of which divides and gets lost in the “dreary desert sands”. Isolating “women’s” causes just furthers the date when everybody will get treated right. And that is my quarrel with all these sociologists, feminists, NGO groups who have serious misgivings about the status and empowerment of women in Indian society.

These misgivings – based on anecdotal evidence, ‘international’ (read as western) imagery and paradigms, social biases and prejudices completely miss the picture.

Post Script

Shobha Narayan, a columnist, wrote,

Correct me if I am wrong, but I think Indian clothes are on the verge of dying out of corporate India. Sure, there are women executives who wear saris: ICICI’s Renuka Ramnath, Britannia’s Vinita Bali and HSBC’s Naina Lal Kidwai come to mind. In Bangalore, I am proud to say that prominent women such as Sudha Murthy and Rohini Nilekani don’t just wear Indian clothes, but bindis as well.

Unlike traditional Japanese attire such as the kimono, Indian clothes are wonderfully adaptable and comfortable. Nobody even knows what traditional Chinese clothing is. You have to go to Lijiang and Dali and observe pretty maidens from the Yi tribe in colourful red clothes to realize what China has lost in its race for economic prosperity at all costs

For my Delhi gig, I took the middle path, which I guess is the same as copping out. I wore Western clothes for one session and Indian clothes for another. I am not proud of my choice. I feel that I should have worn Indian clothes throughout, particularly in light of what I’ve just said. But cut me some slack, okay? It was my first presentation and I wanted to blend in.

Shoba Narayan has spent time in three countries – India, the United States and Singapore. After graduation, she enrolled as a Foreign Fellow at Mount Holyoke College where she majored in Fine Arts, focusing on welded steel sculptures. She went on to do five years of Art – three in graduate school in Memphis, and a summer at the Vermont Studio Center in Johnson, Vermont.

After marriage, … she attended Columbia University’s Graduate School of Journalism (J-school) and received a Master’s degree. She also won the Pulitzer Travelling Fellowship awarded to the top three students in each graduating class. Armed with the degree, she pursued a career in freelance journalism, writing for many publications including the New York Times, Wall Street Journal, Financial Times, Condenast Traveler, Time, Gourmet, Food & Wine, Saveur, Newsweek, Beliefnet and House Beautiful, among others. She also worked as a commentator for NPR’s All Things Considered Weekend.

Shoba’s first book, “Monsoon Diary: A Memoir with Recipes” was published in April 2003 by Random House. She lives in Bangalore, India with her husband and two daughters.

And no! Indian clothes (and whole parts of India) are not dying out, Shobha! There are Indian Women (many more like you) taking care of that! Thanks.

But a rare piece of journalism was recently in the Times Of India. Untouched by Western effacement of Indian alternatives, this post makes some interesting points about the role of Indian women in Indian politics.

“A patriarchal ethos dominates both the societies, American and Indian, but they operate in different ways. In India, despite the patriarchal ethos, powerful women leaders have emerged,” says political scientist Imtiaz Ahmed.

The most famous examples are BSP chief Mayawati and AIADMK head Jayalalitha. Both emerged from the shadow of iconic godfathers, to establish themselves as leaders with grassroots support.

Neerja Gopal Jayal, professor at Jawaharlal Nehru University’s centre of law and governance points out that “Even at the panchayat level, we have had women from the member families being nominated. But the first time, patronage may work but not the second time. And this is true at the national level too.”

Clearly, the Indian system — or lack of it — gives space to those who have no political backing or godfathers. For every Jayalalitha, Sonia Gandhi or Sheila Dikshit, there is a Mamata Banerjee, Sushma Swaraj and Renuka Chaudhary.

Ranjana Kumari, director of the Centre for Social Research says, “What is unique to India, is the fact that women have the space to grow as leaders. Maybe, it has to do with our cultural ethos, where women are worshipped as goddesses.’’

More power to you Indian Woman.

Chidambaram Says … “End 5000 years Of Poverty”

This was Chidamabaram’s statement in the parliament and at least a couple of magazines – including India Today.

Nations Wealth

A nation’s wealth can be a number of things – intellectual wealth, economic wealth, social and political institutions and structures leading to wealth. But primarily, most look at wealth as a measure of economic wealth. And that is what Chidambaram was referring to and most of us accept. Therefore in this write up we will limit ourselves to the economic debate.

A few things.

Obviously, paper money cannot be a measure of wealth. Probably, the de la Rue family would have been the world’s richest family, if paper money was of value. The Bretton Woods mechanism under which the US dollar was the world’s reserve currency lasted as long as it was the only currency on the gold standard. The US Government broke the Bretton Woods mechanism by printing too many dollars. De Gaulle’s French Government started trading in US dollars for gold. In 1971 President Nixon abandoned the Gold standard. Thereafter the world got the first Oil shock and 10 years of stagflation. This French ‘perfidy’ strained US-French relations for the next 30 years. President Sarkozy is today trying to change that – and he can. The casus belli – the US dollar is no longer an issue. Today the US is the world’s largest debtor nation.

Measure Of A Nation’s Wealth?

How does one measure a nation’s wealth? A reliable method is, of course, gold reserves.

India’s private and governmental reserves of gold are by far the largest in the world. Estimates of total Indian gold reserves vary between 25,000 to 30,000 tons. The next highest is the United States with 14,000 tons of gold – with the US Govt accounting for 8000 tons. For at least the last 50 years, India has been world’s largest consumer of gold. (Pliny lamented 1800 years ago as to how imports from India were draining Rome of gold. In 1960’s, James Bond was sent after an arch villian, Auric Goldfinger, to close down illegal gold export from Britain to India in Goldfinger - the book.)

Secret of Japan’s rise

Year 1542. The Sado gold mines were discovered. In 16th-17th century, Japan became the second largest producer of gold in the world. Rapid rise of Japan after that and the rest of story is known to the world. Korea claims that Japan plundered Korea of hundreds of tons of gold from 1937-1944. Philipines, Indonesia have all raised claims against Japan for war time gold loot. Regardless, one American writer had definitely hit a jackpot – Gold Warriors: America’s Secret Recovery of Yamashita’s Gold (By Sterling Seagrave, Peggy Seagrave). Ian Fleming is supposed to have based his story on the Yamashita chapter of WW2.

Sounds like a 5000 years of poverty?

The intellectual father of India’s freedom movement was a British MP of Indian origin – Dadabhai Naoroji. His seminal work on the British colonial loot of India cut away the legs of the Raj – and thereafter, the Raj could not stand. Statistical analyses by Angus Maddisson, Groningen University showed India with a world trade share of 25% for much of the 500 years during 1400-1900.

India loss of wealth is a recent phenomenon. This trend of increasing poverty was halted only with Indian independence and subsequent growth of the Indian economy.
India’s rapid economic decline in the first half of the 20th century is what Chidambaram refers to as the 5000 years of poverty.

Lees Mody Pact

October 28th 1933. Much of India’s Hindu rate of growth can be traced back to this date. On that day, the Bombay Mill Owners Association signed the Lees-Mody Pact. This earned all Indian industrialists Nehru’s distrust. The British had succeeded once again in divide-and-rule.

Japan had become the largest buyer of Indian cotton – in spite of imperial preferences. Lancashire was hurting. Duty on Japanese textiles was raised from 31.5% to 75%. Japan stopped buying Indian cotton in retaliation. Cotton prices crashed. Montagu Norman was already wreaking havoc with his economic policies. demand had collapsed. Britain agreed to “help”. Customs duty was lowered for British goods only to 20%. Britain agreed to buy Indian stock piled cotton at lower prices. Indian mills and the Indian farmer paid the price. GD Birla said “They have lost their nerve …”. Churchill made life difficult in Britain as this pact did not deliver.

While the whole country was following a boycott of foreign goods (specially Lancashire goods), 21 businessmen led by Homi Mody (father of Russi Mody, Piloo Mody) agreed to the system of ‘imperial preference’ – which was behind India’s impoverishment. Earlier, Homi Mody had warned Gandhiji against the renewing the swaraj movement. The “money famine” had collapsed demand in India.

Mody had his own political ambitions. After Independence, Nehru did try and make up with Homi Mody later. Homi Mody was included in to India’s Constituent Assembly – even though he had served the British well.

Chidambaram Should Look At …

What Chidambaram should focus on is a monetary mechanism to leverage India’s 25,000 tons of gold to make India a capital rich country. From there India can start on its way to becoming the richest economy of the world – again.

Significantly, Chidambaram needs to answer if the Indian defence system is adequately funded for its task of protecting the world’s largest gold reserves!

Indian Gold Reserves. Forgotten History! New Opportunity?

Private Gold Reserves - India (2ndlook model)

Quiet Progress

For the last 20 years, World Gold Council has shown Indian gold consumption rising from 400 tons (1987) tons to 800 tons (2007). Estimated Indian gold reserves at 25,000-30,000 are double of the next largest country – the USA with 14,000 tons. India has 20% of the world population and also 20% of the world’s above-the-ground gold.

Which is quite unlike China!

India and the World

For much of the last 2000 years of recorded history, India has been the largest buyer of gold. Roman historian, Pliny, lamented some 1800 years ago, how India, the sink of precious metals, was draining Rome of gold – an appellation that resonates even today.

In the Indian North West (modern Afghanistan), Greco-Bactrian coins were made (seemingly) from the “Roman gold coins, which poured into India.” To “manage”  this drain of gold, Romans started cheating the Indians. They reduced the gold content in coins. Septimus Severus, (193 AD-211) further debased the currency. Indians just stopped accepting the debased coin – and demanded payment in pure gold.

In mid 17th century, a Superior of the Capuchin Mission at Isfahan, friar Raphael du Mans wrote an authoritative (in 1660) Estat de la Perse, which was used by the French Minister Jean Baptiste Colbert, to form the French East India company (1664) – and in modern times, as a source book for tobacco habits in medieval Iran. This Christian missionary in Iran, Raphael du Mans thought that India is “where all the money in the Universe is unloaded as if into an abyss.” Central Asian invaders, for gold, aimed at the सोने कि चिडिया (loosely the ‘golden goose’). Their partially  successful raids, were deemed as invasions by colonial historians.

The Byzantine Empire, successor to the Assyrian-Achmaenid-Macedonian-Roman lineage, similarly found that their reserves of precious metals were ‘again, leaked away to India.’ A significant part of Indian royal treasuries, when these hoards “fell a prey to European invaders, it was found that the gold coins of the Byzantine emperors formed no small part of their treasures”

In 1748, Baron de Montesquieu, warned Europeans that …

Every nation, that ever traded to the Indies, has constantly carried bullion, and brought merchandises in return. … commerce of the Romans to the Indies was very considerable … this commerce was carried on entirely with bullion … They want, therefore, nothing but our bullion, to serve as the medium of value, and for this they give us merchandises in return … that bullion was always carried to the Indies, and never any brought from thence. (ellipsis mine).

Restrictions on export of gold from Iran to India to India were put by the Safavid Iran. – and the Ottomans in turn put restrictions of export gold to Iran. No help at all.

Even modern writers resent the fact that despite the “absence of indigenous sources of gold and silver” the “very favourable export-import balance” resulted in “inherent strenghth of the Indian economy”. Further, it has been correctly observed that in “our period the subcontinent drew vast amounts of gold and silver, exceeding previous periods and exceeding all other parts of the contemporary world so far.”

A French visitor to India Francois Bernier enviously wrote how

It should not escape notice that gold and silver, after circulating in every other quarter of the globe, come at length to be absorbed in Hindostan. (from Travels in the Mogul Empire By François Bernier, Irving Brock)

Another current day writer describes how

“in exchange for textiles, spices and other Indian agricultural and industrial products, merchants from across Europe and Asia flooded India’s bazaar’s with dinars, tangas, ducats, guilders, reals, francs, rixdollars (reichthalers) and countless other varieties of coins, all of which were minted into rupees. (from The Indian diaspora in Central Asia and its trade, 1550-1900 By Scott Cameron Levi)

Moving away from Central Asia, the general European economy, was simple -

Europe had a net balance in the difference between the arrivals of precious metals (mostly from the New World after the sixteenth century) and export of the same (mostly to the Far East for the purchase of luxury commodities).(from Economic systems and state finance By Richard Bonney, European Science Foundation)

It was not surprising therefore to find that Ian Fleming, pitted Western fiction’s best secret agent, James Bond against Auric Goldfinger – who was smuggling gold out of a declining, post-war Britain to India.

And Indian exports were not only textiles, spices and indigo. Students came from all over the world – and paid large sums of money to Indian teachers for education!

The Pre-WW2 Currency Crisis

During various collapses of temporary gold standards in history, Indian gold reserves (usually unwillingly) stabilised world economies. In recent history, Indian gold reserves went out to stabilise the American currency during the Great Depression and the German currency during the post-Wiemar drift. Indian silver reserves broke the Hunt Brothers’ back and their silver gambit in the 1980’s.

After (colonial) India’s accession to the world gold standard in 1898, India, especially during WW1,  rapidly built up a export surplus. British reserves of gold started drying up – in spite of gold export restrictions to India by the USA, Britain and much of the Western world. There was hysteria in popular press and politicians on the subject of India and its appetite for gold.

Crash in silver prices

Between 1800-1900, new mines and increased silver production saw a crash in silver prices. Abundant silver discoveries and mining had flooded the world with silver, depressing prices. Germany moved to the gold standard in 1873, further releasing silver in the world markets. The Opium trade further released vast amounts of silver from China – which was opened to ‘free trade’, giving rise to some of the biggest Western fortunes (of the Roosevelts, for instance).

US silver coinage was being depreciated due to increasing supplies of silver.

On the other side, Britain had a large debt due to WW1 – principally to the US of A and India.  Groaning under the weight of WW1 debt, Britain took the easy way out to assuage the impatient creditor – US of A. Britain and America stuck a deal at the cost of the Indian subjects of the British Raj. They paid the US in gold – sourced from South Africa, Ghana, Australia and Canada – and instead bought silver from the US at inflated prices, to settle Indian debts.

Britain decided to settle Indian debts with silver. Large US silver reserves were released when the US passed the Pittman Act which mandated silver sales at more than a dollar per ounce – double the 50c per ounce prevailing price of silver.  The resulting payment crisis was averted,  and it was decided to pay India in silver released by the Pittman Act. Silver prices which were ruling at o.50p an ounce in the London market, was sold to the Indian colonial Government for more than US$1.0 under the Pittman Act.

Gold prices were deflated. Interest rates in India were increased. Restrictions on gold (and even silver) imports on were placed and gold demand in India was ‘normalized’. Subsequently, even payments in silver became difficult. India then started getting paid by Bank Of England credit notes.

So, finally, it was the Indian native, who was forced to finance the WW1!

But of course, the Indian native was ungrateful to the Congress of the US of A who, “by passing the Pittman Act, … gave India an opportunity to obtain silver” (from Our silver saved India from crisis - New York Times, Published, August 23, 1918; ellipsis mine).

Modern restrictions on gold exports to India

Between WW1 end and the start of the WW2, it was evident that India would not remain a colony for long. Indian independence would happen sooner rather than later. Between 1920-40, in a series of measures, policy decisions were taken, which made Indian interests subsidiary and inferior to Western interests. Central bankers from the USA, Britain, France and Germany had many meetings to “coordinate monetary policy.” The agenda – gold flow management between themselves and an obvious understanding - don’t let the browns get the gold.

Indians were paid, with inflated and abundant silver stock, instead of gold. This silver was the same silver released by the Pittman Act – a “buffer to protect Western gold reserves against the Indian drain …” Of course, later the British Raj decided to settle Indian debts with promissory notes – and not even silver. It was this Indian ‘sacrifice’ which enabled the recovery of the West.

They (Hjalmar Schacht, Governor, Reichsbank, Charles Rist, Deputy Governor, Banque de France, Benjamin Strong, USA Federal Reserve, Montagu Norman, Bank Of England) agreed that Indian demand for gold had a “…deflationary effect on global liquidity,” therefore Indian demand for gold had to be regulated.”

in the spring of 1926, when Norman induced Strong to support him in fiercely opposing a plan of Sir Basil Blackett’s to establish a full gold-coin standard in India. Strong went to the length of traveling to England to testify against the measure, and was backed up by Andrew Mellon and aided by economists Professor Oliver M.W. Sprague of Harvard, Jacob Hollander of Johns Hopkins, and W. Randolph Burgess and Robert Warren of the New York Reserve Bank. The American experts warned that the ensuing gold drain to India would cause deflation in other countries (i.e., reveal their existing over-inflation) (from America’s Great Depression By Murray N. Rothbard, Chapter 5, The Development of the Inflation; Ludwig von Mises Institute)

The Anglo Saxon bloc clearly realized that “it was most important for the Allies to agree on a policy that would prevent the Huns from capturing the very valuable raw materials which can be obtained in India, and sometimes in India alone” (from Our silver saved India from crisis – New York Times, Published, August 23, 1918). Further, The New York Times stated “how without Indian products there would be greater difficulty in winning the war” (from SELLING OUR SILVER TO INDIA from The New York Times, Published – August 25, 1918).

So, as the West traded, profited and consumed Indian production and goods, when it came to paying for the goods, they caviled – and ‘regulated’ Indian demand for gold – and even silver!!

How millions of Indians died

Like much of Western history, the British Colonial administration (Lord Willingdon, Montagu Norman, Neville Chamberlain, Winston Churchill, the Chancellor of the Exchequer) executed a scorched earth policy in India. (After all what is brown life worth?)

They implemented a series of economic and administrative measures, (significantly, under Churchill’s baleful influence) that killed millions in the Bengal Famine, would impoverish India – and sustain the empire. The result – Bengal Famine of 1943 which killed 40 lakh Indians. The Bengal Famine of 1943, of course had may other layers to it – but nett, nett, as Gideon Polya has pointed out, Australian sheep have lower mortality rates.

The Bengal-Burma link of the ages was broken. After being demonized, the Chettiar money lenders were thrown out of Burma, the role of Chettiars (for e.g. in Singapore) was wiped clean. From being a granary of Asia, Burma started declining – and there was no rice for exports. Result – The Bengal Famine of 1943. Tally – 40-50 lakh deaths.

Cabinet ministers, August 1931. Back row (left to right): C Lister, J Thomas, Rufus Isaacs, (Lord Reading), Neville Chamberlain and S Hoare (Viscount Templewood). Front row (left to right): Philip Snowdon, Stanley Baldwin, prime minister Ramsay MacDonald, H Samuel and Lord Stanley. Photograph: Getty

After the fall of Singapore, and the rapid Japanese advance, with Subhash Chandra Bose in the vicinity, a revolt by Bengal would have had catastrophic effect on the colonial administration. Howard Fast, in his novel ‘The Pledge’ believes that the Bengal Famine was deliberate creation – possibly to weaken the local population and deter support for Subhash Chandra  Bose.

Crisis in Britain

Britain in the meantime, returned to the gold standard under Montagu Norman and Winston Churchill (then the Chancellor of the Exchequer) – with the famous prediction by Keynes that this action would result in a world wide recession – of which much came to pass. Churchill confessed “I’m lost and reduced to groping” but went along with Montagu Norman, united by their racism.

On October 27th, 1931, the Ramsey Macdonald led “National” Government (Conservatives and Liberals coalition, fearful of the rising Labour Party) in Britain won a huge majority of 554 MPs of 615. The economic crisis of September (misnamed as the Indian Currency Crisis), ensuing Depression era problems in the US, the Weimar Republic problems – and other issues pushed this ‘National’ government to ram through a series of measures (page 130-131) that depressed silver and gold prices and raised interest rates in India.

Done over the protests by Gandhiji, trade bodies and merchants and threats of resignation by the Viceroy and his Executive Council, the resulting ‘money famine’ (page 155) had the Lord Willingdon ecstatically say ‘Indians are disgorging gold.’ Indians have a different reason to revile Neville Chamberlain, who with great satisfaction said “…The astonishing gold mine that we have discovered in India’s hordes has put us in clover …” after impoverishment of the Indian serf.

More currency and less gold

The Nixon Chop

On August 15th, 1971, President Nixon after a two day huddle with 15 advisers at Camp David, delivered the Nixon Chop to the world.

The Nixon chop (my name for this event), one month after his China breakthrough, cut the convertibility peg of US$35 to gold as US gold reserves were severely depleted. The French had been regularly redeeming gold for their dollar earnings – and for this ‘perfidy’ the US had not forgiven France. This was much like the pre-WW2 French methodology of devaluation, new peg, old debt for new gold routine which got the US hackles up. Many decades have passed since these redemptions by France, and the new French President, Sarkozy believes it is now possible to renew US-French relations again.

On the opposite side of the world, a beleaguered Indian Prime Minister was celebrating 24 years of Independence with a “ship-to-mouth” economy, dependent on PL-480 grain. Private gold reserves in the Indian economy after nearly 25 years of post-colonial rule, were steadily rising. Over the next 10 years, the Western world (and most of the rest) blamed OPEC for post-1971 inflation, gold scaled US$800 an ounce; the Hunt Brothers launched their bid to corner the silver market; stagflation made an entry and Soviet power grew. Nixon Chop, itself the result of many years of gold reserves erosion, was one in many steps that brought the US$ to its knees – only to be saved by the Oil dollar tango.

The Greatest Crime Wave … Ever?

From the 1960-1990, the Big Issue for people across large parts of the world was Big Crime. The 1960-1990 peak in organized crime, globally, is interesting due to the synchronized time frames – across USA, Europe and India.

In India, the rise of the underworld was delayed by a decade – as was its decline. India’s underworld, centred in Mumbai, at its peak, intruded into trade unions, films and entertainment, gambling, real estate, extortion and smuggling. The specter of Dawood Ibrahim haunts India-Pakistan Governmental relations – even today.

Roosevelt had earlier in 1933, during his New Deal years, nationalized all American gold. This restriction was finally eased only on December 31st, 1974, with Executive Order 11825 by Gerald Ford. It was Roosevelt’s gold nationalization which allowed the US to wage WW2 and create the Bretton Woods system.

From 1939, (the start of WW2), gold imports into India, the world’s largest market and also the largest private reserve  of gold, were controlled or banned. Not only the largest, but Indian reserves of gold, are also the only significant reserve in the world without a history of war, genocide, slavery or loot, (unlike US, UK, Canada, Australia) or to due nature’s bounty (unlike South Africa, China, Peru, Ghana, etc.).

The first effect of restrictions on gold imports in India was on prices. Indian gold prices, on an average, were 30%-40% higher than international prices. The other thing that happened was that gold imports went underground. Gold imports (illegal), called smuggling, spawned the biggest criminals that India has seen.

The common threads in this were, of course, America, drugs, underworld, war, corruption, warlords – but what made all this possible was Indian appetite for gold.

All this was made possible by the Indian hawala system of money exchange. Hawala made money transfers safe, instantaneous, at a low cost. Traditional Indian ships from a thousand ports in Goa, Maharashtra and Gujarat sailed with this contraband and brought back gold.

Golden Triange & Golden Crescent

The countries comprising these Golden Triangle /Crescent are India’s neighbours. The Indian underworld transported drugs through India. These drug shipments originated, were acquired, grown and traded from the Golden Crescent and the Golden Triangle.

The US eliminated gold ownership restrictions in 1975. India followed. In 1992, India started its first hesitant steps towards legalizing gold imports. By 1995, these import control laws had been diluted to near non-existence. With the dilution of restrictions on gold imports came the abatement in the biggest crime wave in modern history.

Today, the abatement in organized crime is ascribed to vigourous efforts by the police and legal systems. The earlier lack of success is conveniently forgotten. Many ‘encounter’ specialists claimed credit for the reduction in the power of the India’s underworld. Much like the fading away of the mafia in the US and Italy, in India too, after the gold trade was legalized, the mafia’s source of power, liquidity, earnings, profit were taken away. With it came the underworld’s loss of power and influence. And that coincided with the reduction and control of organized crime from the US and Europe and India. And an end to the greatest crime wave in the modern history.

So, why this desperate poverty

With global monetary system in a flux and the decline of the dollar (especially after the Plaza Accord), the perceived utility of gold and the price outlook of gold has been positive. After the Nixon chop, at an estimated 15,000-18,000 tons, India was in a position to create instruments, obtain leverage and create wealth from the world’s largest gold reserves.

It is the failure of the Indian economic minds – that they have not found any instruments and means. Some 35 years after the Nixon Chop, and with Indian gold reserves approaching 30,000 tons mark. Some other countries tried feebly, and failed. Japan and ASEAN tried setting up the Asian Monetary Fund – after 1997, currency crisis – and were arm twisted by the US to drop the idea.

Is the US likely to give up the central role?

Unlikely! Let me correct myself! Pretty damn unlikely!!

Will the Western world share its pre-eminence with Japan, China and India. Bet your bottom yuan, yen, rupee or gold – they wont. Especially since the Anglo Saxon Bloc control nearly 80% of world gold production.

What are they likely to do! Some of the older measures by which gold was transferred from the old (and the new) world to Western world are no longer possible.

But if any central bank (or monetary authority) were to: -

1. Mask purchases
2. Build up gold positions
3. Take physical possession of gold (Avoid Czech Gold, Montagu Norman & BIS Scam)
4. Look at a positive outcome to a war scenario

then that country will be able to bolster their gold reserves position by: -

• About 10,000-15,000 tons
• Limit the cost of purchase
• Make it economically unviable for anyone else to match them

The only country that can (currently) match these criteria is the USA – and China.

The US GATA Committee has been running a low profile campaign on gold price manipulation. This attempt, if successful, at increasing gold prices will possibly make it difficult for Indians to buy gold in larger quantities. The Indian Central Bank, preoccupied with a developmental agenda, is in no position to take up this challenge.

From an Indian standpoint

While the silver lining is private reserves, we have a blinkered RBI & GOI response. India has one of the lowest monetary reserves of gold in the world. Against a global average of 10.5% RBI holds only 3.4% of its reserves as gold. The EU holds 40% of its reserves in gold and USA – 70%.

And while the RBI and GOI gently sleep, the Chinese have grown their gold purchases. China has become world’s 3rd largest consumer of gold – up from a 100 tons to 350 tons. Shanghai Gold Exchange has made it easier for individuals to invest in gold by reducing the transaction size from 1 kg to 100 gm.

Importantly: -

1. Is India in a position to militarily defend these reserves
2. Does the GOI and the RBI have any strategic intent vis-a-vis gold

Making the job easier for the GOI and the RBI are Indian economic habits of the centuries that have allowed this build up of gold reserves. India stands at a historical cross road. Are Indian economic and political minds at work to exploit this window of opportunity. Or will it be a wasted chance.

Gold and War

Alexander’s campaign started with the gold reserves that his father had built from the mining operations at Mount Pangeus. The Macedonians were the first in the Hellenistic world to keep standing army – a luxury and a big expense, in Greece, at that time. The Roman empire was similarly funded by gold mining and loot. Julius Caesar’s European conquests were funded by Gaellic loot. The Punic Wars with Carthage were fought over Spanish Gold. Roman conquest and love affair with Egypt was motivated by grain and Nubian gold.

Carolus Magnus, Karel de Grote, Karl der Grosse, Carlomagno, Charles the Great – or more commonly known as Charlemagne (ruled between 768-814) waged war for 30 years, spread over more than 50 battles. Charlemagne’s conquests were funded by gold and silver from the Saxony mines, the Haartz mountains, etc. During Charlemagne’s rule, gold and silver mines (S-Chemnitz, Kremnitz etc.),  were also re-opened for mining. His victory over Avars, (modern Hungary) gave him treasures which needed 15 carts, pulled by grey steppe oxen for transport.

The British loot from Canada, Australia, South Africa – and India, gave the world, numerous wars and brought humanity “under the heel by means that will not bear scrutiny.” It is these very same Gold reserves which gave birth to the Bretton Woods – and we know what happened after that! Roosevelt gave a New Deal to the Americans. He took away all their gold. WW2 followed soon thereafter.

This short look at Western history makes the linkage apparent. The main factor is the pattern of gold ownership by Governments and war becomes a fait accompli.

Gold Reserves - Global (2ndlook estimates)

What Should We Do With Gold

Just sell it to people. From all the countries of the world.

The world financial organization should limit control of global gold output by any mining organization to 10% or a single mine – which ever is lower. Gold holding should be widely dispersed, as widely as possible, amongst individuals – like the Indian gold possession model. No national government, in the new financial architecture should be allowed to have more than 250 tons of gold – to progressively reduce to 50 tons.

What this will do, is disperse gold holdings among the citizens of the world – and dilute the ability of nations to wage war! National Governments (like the US), have used gold looted from their own citizens (and others) to deprive other peoples of the world of gold – and wage war.

What we should not do?

Good Ole’ Gold Standard

In the last few decades between the Nixon Chop and the Bush Whack, the Western academic world, has floated another ‘hot air’ balloon. It is the revival of the ‘pure,’ Gold Standard. The story goes that in the ‘olden’ days of 19th century, in the golden age of Western civilization, there once reigned the Gold Standard.

The simplistic logic of this theory is that the world should ‘go back’ to the Gold Standard - or as some put it, improve the ‘corrupted Gold Standard’ of the 19th century, and then everything will be fine. All currencies of the World, should be indexed to Gold – and then everything should be fine. Currency can be redeemed against gold – and gold reserves equivalent to currency should be kept as reserves. This will kill inflation, stop war, make politicians honest, make tax payers honest, citizens hard working and business efficient.

In short a magic bullet.

The last time, we saw this, it was called the Bretton Woods. The US and the Anglo Saxon Bloc came together and said we will administer the new world currency system. The world agreed – once again. And we know what happened.

Two years ago …

This post had estimated that the Chinese could possibly (and they have)  increase their monetary gold reserves. On April 24th, 2009, Bloomberg reported that China had increased

its (gold) reserves by 454 tons to 1,054 tons through domestic purchases and refining scrap metal, Hu Xiaolian, head of the State Administration of Foreign Exchange, said in an interview with the Xinhua News Agency today. China, the world’s biggest gold producer, has increased its holdings before, Hu said in the interview carried on the administration Web Site. They rose from 394 tons to 500 tons in 2001 and to 600 tons in 2003. The U.S. has the world’s biggest gold holdings at 8,134 tons, followed by Germany with 3,413 tons, World Gold Council data show. France has 2,487 tons and Italy 2,452 tons, while the IMF has 3,217 tons, according to the council.

Another report, from Market Watch, a WSJ web publication added,

The increase makes China the world’s fifth-largest holder of gold, just ahead of Switzerland, and among the six nations plus the International Monetary Fund that have reserves of more than 1,000 metric tons. Although Hu did not elaborate on where China had sourced the additional bullion, her comments were interpreted as meaning they came from domestic sources and may included refining of scrap metal.  Traders also say the gold was accumulated systematically over a number of years. Last year China ranked as the world’s largest gold producer with 12.2% of world output, equivalent to 288 metric tons. The U.S. ranked second with a 9.9% share, or 234 metric tons.

What are the future plans of the Chinese? A report quotes an analyst

China should increase its gold reserve from 600 tons to about 2,500 tons in a short term and to 3,000 tons in a long term to cope with the versatile exchange rate risks, said Teng Tai, an economist of China Galaxy Securities Company.

Of course, this really does not mean much – except that it may keep gold prices on boil. Whether a currency is backed by a 5% or a 10% gold reserve may not mean much, in this era of rampant use of (not just by the US of A) “a technology, called a printing press” as an economic tool. For long term economic stability, gold needs to be in the hands of individuals – and not Governments.