2ndlook

Rise of the British Empire – A 2ndlook

Posted in Business, European History, Gold Reserves, History, India, Media, politics by Anuraag Sanghi on July 6, 2010
Leo Tolstoy in Yasnaya Polyana, May 23, 1908. An early colour photography example in Russia Photo - By Yevgeny Kassin. Courtesy - www.guardian.co.uk

Leo Tolstoy in Yasnaya Polyana, May 23, 1908. An early colour photography example in Russia Photo - By Yevgeny Kassin. Courtesy - http://www.guardian.co.uk

Indian history fails

Indian history’s biggest failing is in understanding and explaining the rise of English imperial power in the Indian subcontinent.

Facing foreign conquest for the first time in 12th century AD, Indians have difficulties in understanding invasion, conquests, territorial expansion and the motive power behind such imperial actions.

Equally for the British, the ‘gain’ and ‘loss’ of India happened so quickly, that they cannot accept the loss and they still cannot believe their luck.

The central question of how India could ever have fallen under British rule continues to engage almost obsessive attention. How so few Britons, as servants of a private business enterprise, could have conquered so huge an area and so many people, so far away, has never ceased to amaze or embarrass. Neither British nor national historiography has proven satisfactory. (From The Oxford history of the British Empire: Historiography By Robin W. Winks, Alaine M. Low).

Modern Indian historians have not been of much help.

The perplexed Indian

The question of Indian subjugation by Islamic and English invasions has rarely been answered with any balance.

For instance, with reluctant admiration, some Indians ‘acknowledge’ that the British must have had something special. After all, how could Robert Clive with 400 English soldiers, defeat Siraj-ud-Dowla’s armies of 60,000? This left the ordinary, disbelieving Indian with the second assumption. Indians must have been fighting with bows and arrows, while the English had guns and cannons.

Now both these answers are wrong – because in 1857, Indian had equally good ship-building docks (if not better) and gun smiths. The best steel in the world came from India – as did the raw material for gun-powder, saltpetre.

A hundred years ago, a perplexed Indian, Taraknath Das, sought to understand the cause of Indian subjugation. He wrote to Tolstoy, the 19th Russian writer. Tolstoy’s very ‘insightful’ answer on Indian independence was

What does it mean that 30,000 people, not athletes, but rather weak and ill-looking, have enslaved 200 millions of vigourous, clever, strong, freedom loving people? Do not the figures alone make it clear that not the English, but the Hindus themselves are the cause of their slavery?’ For the Hindus to complain that the English had enslaved them was like villagers addicted to drink complaining that that the winesellers who had settled in their midst were the cause of their drinking habit. ‘Is that not the case with all the people, the millions of people, who submit to thousands or even hundreds of individuals of their own nation or those of foreign nations?’ If the Hindus had been enslaved by violence, it was ‘because they themselves have lived, and continue to live by violence, and fail to recognize the eternal law of love inherent in humanity.

Gandhiji, made 20,000 copies of this waffling and rambling narrative – and distributed it among the Indian population in South Africa. Tolstoy’s ‘explanation’ is today repeated in Indian schools as a defeatist question, ‘How could a few thousand people conquer a nation of crores?’

Tinged with ‘admiration’ for the English ‘character’!

Modern parallels

What was behind the rise of English power – especially, in the Indian sub-continent? After 60 years and a few hundred-crores (or a few billions) of tax-payer funds, Indian academia and historians have failed to answer this question – satisfactorily.

The usual answers trotted out are:-

  • Military superiority (better trained and motivated English soldiers)
  • Technological superiority (Indians had bows and arrows versus English guns and cannons)
  • Political unity (united English vs a divided India)

Historical evidence completely contradicts these three constructs during the 1600-1850 period, the phase of English ascent. For real answers we will need to look somewhere else.

Later in the post, we will use two widely syndicated posts, that appeared on the same day, originating in the USA. These two reports are an excellent parallel of what happened some 300 years ago.

But before that let us look at the key events and developments.

The coup at Plassey - became a 'military' victory for the British!

The coup at Plassey - became a 'military' victory for the English!

Cut to India in 1757

Robert Clive’s ‘genius’ lay in cobbling exactly one such cabal. This cabal consisted of Armenian, Indian and English merchants.

The Armenians were represented by Khojah Petrus Nicholas, and Indians were represented by the Jagat Seths, Seth Mahtab Chand,and Seth Swarup Chand, and other seths like Raja Janki Ram, Rai Durlabh, Raja Ramnarain and Raja Manik Chand. The Armenians, and the ill-fated Omichund, a “notorious Calcutta merchant who was later to engineer the Plassey Revolution” played an important part in the Bengal/Bihar saltpetre trade. They were all significant players in the export of saltpetre (potassium nitrate). Also known as niter, saltpetre was a necessary ingredient for gunpowder.

Increasing demand for Indian saltpetre from Europe increased prices in India. Indian traders benefited. Was this Plassey-nexus between Armenian, English and Indian traders, a result of restrictions on saltpetre trade itself by the Nawab of Oudh.

As a battle, observes Panikkar, “Plassey was ridiculous. Mir Jafar, who vacillated during the engagement, came timidly round with congratulations and he was told he was now Nawab.” Plassey thus, was “a transaction, not a battle.

The ‘importance’ of Plassey is a colonial invention. It is the Battle of Buxar which started off the East India Company. It is conveniently ignored that the East India Company recruited some 18000 sepoys in the next 6 years (1757-1763). It is these 18000 sepoys which clinched the Battle of Buxar for the East India Company.

The coup of Plassey was not a military success, but industrial and economic. Industrially, the English gained global control over saltpetre, an essential component in gunpowder. With Bihar and Bengal being production centres of saltpetre, control over the global gunpowder production system, passed into English hands. Rest of India and the world were cut-off from saltpetre supplies.

Economically, till the grant of Bengal diwani to the East India Company in 1765, after the battle of Buxar (1764) England used to export bullion to make investments in purchase of Indians goods. After the 1765, diwani, the excess revenue was used to make the purchases – and the English bullion was used to fund expansion, grow armies, et al. It was the battle of Buxar (1764) which created the roots of the English Empire in India via the East India Company.

Such exclusive companies, therefore, are nuisances in every respect ; always more or less inconvenient to the countries in which they are established, and. destructive to those which have the misfortune to fall under their government. (An inquiry into the nature and causes of the wealth of nations By Adam Smith).

Such was Clive’s legacy. A troubled Robert Clive committed suicide in 1774.

The colonial Indian army was used against the civilian population - e.g. Jallianwala bagh.

The colonial Indian army was used against the civilian population - e.g. Jallianwala bagh.

The oppressive army of the colonial Raj

The growth in the Colonial Raj’s army to maintain its authority is the simple reason why the Raj was able to maintain its rule for nearly 200 years.

The 18000 sepoys enrolled in 1763 grew in the early years of the nineteenth century to 150,000 and to nearly 350,000 by about 1820. (from Neighbors & strangers: the fundamentals of foreign affairs By William Roe Polk).

In 1820, Britain ruled less than half of modern India. The population of India at that time has been estimated at 25 crore- and the possible population under the Colonial Raj was less than 12 crore.

To sustain an army of 350,000 on a population of 12 crores is an oppressive burden beyond imagination. In a population of 12 crores, the number of able-bodied men would be around Rs.3.0 crore – and army of 350,000 would have meant 1 in every hundred was a soldier. Another writer on the British Empire confirms

the East India Company’s own army, especially its sepoy regiments, grew rapidly. This created a new demand for officers. By 1772 the Company’s officer corps in India was about 1560 strong, more than half the number of regular British army officers at that time. Regular officers were encouraged to transfer to the Company, but most of the increase was accounted for by the recruitment of very young men straight into the Company’s army as cadets. (from The making and unmaking of empires – Britain, India, and America c.1750-1783 By Peter James Marshall).

A proportionate army in India today would be close to 35 lakhs – twice the size the 16 lakhs that India, defence forces (army, air-force and navy) have today. Not only did the East India Company pay better, they also made timely payments.

The East India Company had a justified reputation for not only paying better but for being a more reliable paymaster for its Indian sepoys than any Indian ruler was likely to be.

Many Indians soldiering communities joined the armies of the British Raj as the

Company sepoys’ pay was high; infantry received about Rs.80 per annum, several times the pay of a specialist field worker. The regularity of pay … distinguished British from indigenous Indian armies.

The other reason why the British Raj military size was greater was that instead of police,

many civil duties, which in this country (England) are performed by the police, are in India discharged by the military force.

The small size of Indian police force was a historical trend, predating the English and continues till date. The small police force was derived from the economic habits of the Indian population which did not depend on crime for a livelihood (unlike say, piracy or slave trade in Europe). The constant warfare against Indian polity in India was essential for imperial English objectives. It was the large size of the Colonial Indian Army, consisting of Indian sepoys that was behind the might of the British Empire.

But during WW2, the situation changed. As Indian armies were sent to various theatres of war, and the Quit India movement exploded – as did various other movements across India, the British hold on India seemed to be hanging by a thread. The British response was interesting.

In 1932 there were 215,004 policemen in India (for a population in excess of 300 million) of whom 32,596 (15.16 per cent) were armed. By the end of 1938, the figure had fallen slightly to 193,118 with 28,703 men (14.86 per cent) under arms. But in December 1943, as political and administrative responsibilities of the police grew, the total reached 300,656 (an increase of over 60 per cent since the outbreak of the war) with 137, 222 (45.64 per cent of the total) under arms. (from Policing and decolonisation: politics, nationalism, and the police, 1917-65 By David Anderson, David Killingray.).

The Royal Indian Navy decided to raise to flag of Independence in Bombay in 1946, after which the Indian Army saw a mutiny in Jabalpur. (Photo courtesy - www.outloook.com).

The Royal Indian Navy decided to raise to flag of Independence in Bombay in 1946, after which the Indian Army saw a mutiny in Jabalpur. (Photo courtesy - http://www.outloook.com).

The day the worm turned, the British Raj ended. On February 18th 1946, the Indian Naval force, then the Royal Indian Navy raised the flag of independence. Colonial history calls it the Naval Ratings Mutiny – on February 18th 1946. Within 1 week, Britain decided to evacuate from India.

On February 18th, the ‘lowly’ Naval Ratings from the Royal Indian Navy rained on the British parade – by raising the flag of Indian Independence. Britain did not have the stomach to take on the Indian Colonial Army, battle hardened and exposed to warfare in all the global theatres of WW2. Penderel Moon, a much quoted British Civil servant, felt that the Raj was on “the edge of a volcano.” As did Nehru and Pethick Lawrence. The INA trials had created serious ruptures in British control over India.

On February 19th, 1946, PM Clement Attlee announced that a British Cabinet delegation of three ministers would visit India. He followed this up, on 20th February, 1946, with a statement in the British House of Commons,

His Majesty’s Government desires to hand over their responsibility to authorities established by a constitution approved by all parties in India … His Majesty’s Government wish to make it clear that it is their definite intention to take necessary steps to effect the transference of power to responsible Indian hands by a date not later than June 1948 … His Majesty’s Government will have to consider to whom the powers of the Central Government in British India should be handed over on the due date

On 15th March, 1946, Attlee announced in the British House of Commons that Britain was leaving India. 23rd March, 1946, Lord Pethick-Lawrence, Secretary of State for India, A. V. Alexander, First Lord of the Admiralty, and Sir Stafford Cripps, President of the Board of Trade came to India for consultations on modalities for power transfer. The British acquiesced and 18 months later the British were out.

It took nearly 200 years for the The Indian sepoy to decide that he was no longer willing to be a loyal soldier of the Company Bahadur. And the British Raj crumbled.

Noiselessly.

The seed capital of the British Raj

In all this, the important thing was funding!

The recruitment and expansion of the standing army, the purchase and stockpiling of gunpowder, needed exceptional financial resources that only the English seemed to have. Where did this ‘liquidity’ come from?And that is where the English secret lies.

Apart from the Indian loot, it was the loot from the rest of the world that enabled the English to fund the acquisition of these power sources. The surge in English financial capital can be explained by a succession of English ‘adventures’ which created the seed capital for Indian subjugation.

Of which, the most celebrated is the piracy.

A captive bows before Welsh pirate Sir Henry Morgan as Morgan and his men sack the city of Panama in the 1670s. (Hulton Archive/Getty Images)  Read more: http://www.cbc.ca/world/story/2008/11/21/f-pirates-whoswho.html#ixzz0stPqRYn3

A captive bows before Welsh pirate Sir Henry Morgan as Morgan and his men sack the city of Panama in the 1670s. (Hulton Archive/Getty Images) Read more: http://www.cbc.ca/world/story/2008/11/21/f-pirates-whoswho.html#ixzz0stPqRYn3

Britain – a pirate power

The explicit use of pirates in the Caribbean brought great riches to the Britain. Keynes famously linked all British foreign investment to the single act of looting of the Spanish Armada.

For a good part of 300 years (1550-1850), the English crown gave permits for pirates to operate on high seas – through, what were known as, letters of marque. With the sanction of the English State, high seas piracy became a national pastime in Britain.

Pirates like Sir John Hawkins made money on slave trade and piracy – targeting Spanish ships. Queen Elizabeth, apart from knighting him, also participated in these criminal enterprises. In a modern context, imagine the Italian government giving legal sanction to the Mafia, or Colombians to the Cali cartel.

The Spanish Armada was assembled by Spain to end British piracy. Further on, British propaganda made these pirates and privateers into heroes – and the Spanish Armada into an instrument of Catholic repression.

John Maynard Keynes, famously and honestly, tracked the source of British capital – and computed the compounded value of this loot. Keynes wrote: –

I trace the beginnings of British foreign investment to the treasure which Drake stole from Spain in 1580. In that year he returned to England bringing with him the prodigious spoils of the Golden Hind. Queen Elizabeth was a considerable shareholder in the syndicate which had financed the expedition. Out of her share she paid off the whole of England’s foreign debt, balanced her Budget, and found herself with about £40,000 in hand. This she invested in the Levant Company –which prospered. Out of the profits of the Levant Company, the East India Company was founded; and the profits of this great enterprise were the foundation of England’s subsequent foreign investment. Now it happens that £40,ooo accumulating at 3f per cent compound interest approximately corresponds to the actual volume of England’s foreign investments at various dates, and would actually amount to-day to the total of £4,000,000,000 which I have already quoted as being what our foreign investments now are. Thus, every £1 which Drake brought home in 1580 has now become £100,000. Such is the power of compound interest!

Now we all know where the Spaniards got their gold from!

English Chartered Companies – monopoly public-sector trading houses

The next major source for English capital were English corporations, in which the British ruling classes were the prime promoters and beneficiaries. English use of corporations was ‘pioneering’. It allowed the State to hide behind the veil of an artificial person. The EEIC could be blamed as the tyrant – and Queen Victoria could be displayed as a saviour.

The earliest English experiences with corporations started with the Muscovy Company (formed during 1550-155), the Spanish Company (1577), giving rise, in turn to the Levant Company (1581). Precursors to the East India Company, the Levant Company for instance was a mostly successful English monopoly of trade with the Turkey, Venice, Genoa and Middle East. English royalty became shareholders in these English corporations like the Muscovy Company or the Russia Merchants Companies in the 1550s, Levant Company, The Royal African Company – and later also the East India Company.

James Lancaster, John Eldred (Treasurer of the Levant Company) and Alderman Thomas Smythe and his assistant Richard Wright were common to both the Levant company and the East India Company. The English Queen contributed to the slave trading enterprise of Jack Hawkins the pirate, with her own ships, the Jesus of Lubeck and the Minion.

These trading houses, set up with royal patronage, controlled wealth, power and trade. Controlled by a few people, these corporations were extensions of the State.

British Slave Trade (Data source - Table from 'The Oxford history of the British Empire: The eighteenth century By P. J. Marshall, Alaine M. Low'; page 446)

English Slave Trade (Data source - Table from 'The Oxford history of the British Empire: The eighteenth century By P. J. Marshall, Alaine M. Low'; page 446)

Britain – prime slave trader

Britain and US were the largest users of African slaves – which gave these economies a 20% labour cost advantage. It also ‘freed’ its unemployed youth to go to the colonies and join the military.

The Royal African Company, a slaving trading ‘enterprise’, branded slaves with the letters ‘DY’, after its benefactor and promoter, the Duke of York, (better known as King James-II) and later the company’s initials, RAC. The Royal African Company, formed as the Company of Royal Adventurers Trading to Africa, was created to exploit the ‘opportunity’ for slavery in general – and the trans-Atlantic slave trade specifically.

Between 1699-1807 alone, there were more than 12100 slave voyages from the English ports of London, Bristol, Liverpool, Newport and others. Britain was the prime slave-trading European power. More than 20 million slaves were captured from West Africa and sold into slavery. The overall number of slaves from Africa to Europe and Americas are much higher than 20 million. Wealthy slave traders built grand edifices across Britain, donated to universities, museums, charities.

Britain – sugar and spice

Based on slavery, was Britain’s chain of sugar production colonies across the Caribbean. With the collapse of slavery in Haiti, sugar prices zoomed. Places in the West Indies, like Barbados, Jamaica competed to become the ‘richest spote of ground in the worlde.’ Between 1793-1798, sugar prices trebled. For a few years, English territories imported more slaves than Cuba.

As slavery became impossible due to revolts and mutinies, Britain turned to India again. This time for indentured labour. Slavery diluted and called by another name, India became a source to fall back on for indentured labour. How could the British afford to buy indentured labour? Bought with new gold discoveries in Canada and Australia. Nearly 1 crore (10 million) indentured labourers were shipped out from India alone to various parts of the world – and continued till about 1917. As is to be expected, the UK Government grossly underestimates these figures.

By the time the indentured labour scheme was finally brought to an end in 1917, it is estimated that 2.5 million East Indians had been shipped to British colonies around the world. (From Empire’ Children – Channel 4).

After the finally abolishing slavery in 1833, indentured labour replaced slavery with indentured labour. Upfront, indentured labour was only slightly more expensive, but was cheaper in the long run. Indentured labour also came fewer issues related to capture, transport, trade and maintenance of slaves – with a veneer of respectability that was needed for propaganda purposes.

Indentured labour – Slavery by another name

In the late and middle 19th century, capture of Indians by British agents indentured labour, (slave traders and slavery by another name) was also the reason, that possibly, the myth of ‘kaal-paani’ became prevalent and Indian traders preferred buyers to come to them. Intrepid Indians, suddenly discovered kaala paani - a defensive response to indentured labour, which was a close parallel to slavery.

The West re-invented slavery (in the 20th century again) and renamed it as apartheid which made native populations into slaves. They could, of course, truthfully claim that great Anglo-Saxon frontiersmen discovered gold and settled empty continents – in ‘hostile conditions.’

As sugar prices climbed, Cuban plantation owners expanded plantations – and increased slave labour. From 1840, rumblings among Cubans slaves increased – which would continue for many decades.

Cuban sugar industry was itself kick-started, with English import of 5000 slaves in 1762, during their brief occupation of Cuba. In 1844 Cuban slaves revolted unsuccessfully. 10th, October 1868, Carlos Manuel de Céspesdes released his slaves and El Grito de Yara War, (a 10 year campaign) against Spain started. General Valeriano Weyler, “The Butcher,” was sent 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.

And English sugar colonies gained another second wind.

But what do the Portuguese call their ocean-going ships? Nau. Yes, nau as in Hindi, for boat. Vasco da Gama’s ship, was illustrated in the Libro das Armadas in 1497. (ACADEMIA DAS CIENCIAS DE LISBOA / GIRAUDON / BRIDGEMAN ART LIBRARY). Picture saudiaramcoworld.com

But what do the Portuguese call their ocean-going ships? Nau. Yes, nau as in Hindi, for boat. Vasco da Gama’s ship, was illustrated in the Libro das Armadas in 1497. (ACADEMIA DAS CIENCIAS DE LISBOA / GIRAUDON / BRIDGEMAN ART LIBRARY). Picture saudiaramcoworld.com

Indian shipping

50 years before Independence, a 100 years ago, India was one of the largest ship building countries in the world. The “modern era” began with the building of a dry dock at Bombay about 1750; a second was erected in Calcutta about 1780.

During Shivaji’s reign, as per estimates, more than 300 ships of 300 tons capacity were launched. The Wadias alone built more than 350 ships – during 1735-1863 170 war vessels for the East India Company, 34 man-of-war defence vessels for the British Navy, 87 merchant vessels for private firms, and three vessels for the Queen of Muscat at Bombay docks.

In 1872, Jamshedji Wadia, from a Parsi ship-building family, constructed the “Cornwallis”, a frigate with 50 guns, bought by the East India Company. This led to several orders from the English Navy.

Bengal was the other major port where ship building was for global markets. Chittagong was the center for shipbuilding (now in Bangladesh). The Turkish Navy (a major world power till WWI) was a major customer.

Ma Huan, the famous chronicler and interpreter of Zheng He (also called Cheng Ho) voyages, during the Ming dynasty, studied boat building in Bengal during the early 15th century (1400-1410).

The third major center for ship building was Narsapurpeta (near Masulipatnam) port – which was a major center of exports of steel, diamonds, saltpetre (potassium nitrate, for gunpowder, to kill Indians, Negroes, Aborigines and Red Indians with) from the Deccan plateau.

Sixteenth century painting of the Calicut port - showing shipbuilding yards. (Courtesy - www.saudiaramcoworld.com; BRAUN AND HOGENBERG, CIVITATES ORBIS TERRARUM, 1572 (2)) Click for larger image.

Sixteenth century painting of the Calicut port - showing shipbuilding yards. (Courtesy - http://www.saudiaramcoworld.com; BRAUN AND HOGENBERG, CIVITATES ORBIS TERRARUM, 1572 (2)) Click for larger image.

These buyers preferred Indian ships, because of better jointing technology and elimination of metal sheeting. Indian shipbuilders had a special system where wood was seasoned in partial vacuum, with oils for timber improvement. British shipbuilders, colonialists ensured through tariff and other barriers, that Indian shipbuilding “was prevented from continuing to develop, even though it had a proven ability to adapt to changing technological needs” – and thus finally killing it. English naval superiority rested on Indian ships – and paid for by exploitation of Indian resources.

In 1498, Vasco da Gama’s ocean-going ship, the Sao Gabriel came to India. The Portuguese caravel are well-known. But what do the Portuguese call their ocean-going ships? Nau. Yes, nau as in Hindi, for boat. Few of these Indian built ships have been recovered in various parts of the world. Indian shipbuilding expertise ruled the world – till colonialism killed it.

History repeats itself

On June 6th, two posts appeared in the Indian newspapers. These two posts were remarkable, as these mirrored events and behaviour some 200-400 years ago.

One report dealt with the American War in Afghanistan. To smoothen logistics in Afghanistan, the US ‘recruited’ an Afghan warlord, Matiullah Khan. Much like the English recruited many Indian kings, chieftains to fight their wars.

His main effort — and his biggest money maker — is securing the chaotic highway linking Kandahar to Tirin Kot for NATO convoys. One day each week, Matiullah declares the 100-mile highway open and deploys his gunmen up and down it. The highway cuts through an area thick with Taliban insurgents.

Matiullah keep the highway safe, and he is paid well to do it. His company charges each NATO cargo truck $1,200 for safe passage, or $800 for smaller ones, his aides say. His income, according to one of his aides, is $2.5 million a month, an astronomical sum in a country as impoverished as this one. (via With U.S. Aid, Warlord Builds Afghan Empire).

Matiullah Khan, yet another report reveals, is one of the

… eight trucking contractors who share the US military’s $2.16bn (€1.68bn, £1.45bn) two-year host nation trucking contract. The companies include NCL Holdings, run by Hamed Wardak, the US-educated son of Afghanistan’s defence minister, and others founded by investors in the US and the Gulf.

The system relies on an opaque network of sub-contractors who pay Afghan security companies to escort their trucks. Investigators suspect these companies in turn pay tolls to militia leaders with groups of hundreds of gunmen.

Prominent militia commanders in southern Afghanistan include Matiullah Khan and Ruhullah. Although some hold ranks in the Afghan security forces, such commanders exercise considerable autonomy and often field better forces than the army or police. Industry insiders say militias run what amount to protection rackets on convoys passing through their territory.

Two aspects of this stand out. One is the figure US$2.16 billion over two years – i.e. US$1.08  billion per annum. Now that is a lot of money for the 1500 Matiullah Khan’s militia – and the other 10,000-15,000 members of the other militias.

Are these private militias a problem for the local Afghans? Yes, say the local people. But, like this reports says, “But as long as the Americans are behind him, there is nothing I can do. They are the ones with the money.”

And that pretty much was what happened in India from 1757 to 1947.

The day we decided to invest in 'Desert Bloc' is the day that evil started becoming so awesome!

The day we decided to invest in 'Desert Bloc' is the day that evil started becoming so awesome!

Indian history according to Dilbert

All this still does not explain how the English could become ascendant in Indian – without Indian collaboration. For understanding this collaboration, let us turn to another column by Scott Adams – the creator of Dilbert.

When I heard that BP was destroying a big portion of Earth, with no serious discussion of cutting their dividend, I had two thoughts: 1) I hate them, and 2) This would be an excellent time to buy their stock. And so I did. Although I should have waited a week.

People ask me how it feels to take the side of moral bankruptcy. Answer: Pretty good! Thanks for asking. How’s it feel to be a disgruntled victim?

I have a theory that you should invest in the companies that you hate the most.

If there’s oil on the moon, BP will be the first to send a hose into space and suck on the moon until it’s the size of a grapefruit. As an investor, that’s the side I want to be on, with BP, not the loser moon.

Perhaps you think it’s absurd to invest in companies just because you hate them. But let’s compare my method to all of the other ways you could decide where to invest.

Perhaps you can safely invest in companies that have a long track record of being profitable. That sounds safe and reasonable, right? The problem is that every investment expert knows two truths about investing: 1) Past performance is no indication of future performance. 2) You need to consider a company’s track record.

Right, yes, those are opposites. An investment professional can argue for any sort of investment decision by selectively ignoring either point 1 or 2. And for that you will pay the investment professional 1% to 2% of your portfolio value annually, no matter the performance.

I’m not saying that the companies you love are automatically bad investments. I’m saying that investing in companies you love is riskier than investing in companies you hate.

If you buy stock in a despicable company, it means some of the previous owners of that company sold it to you. If the stock then rises more than the market average, you successfully screwed the previous owners of the hated company. That’s exactly like justice, only better because you made a profit. Then you can sell your stocks for a gain and donate all of your earnings to good causes, such as education for your own kids.

My point is that I hate Apple. I hate that I irrationally crave their products, I hate their emotional control over my entire family, I hate the time I waste trying to make iTunes work, I hate how they manipulate my desires, I hate their closed systems, I hate Steve Jobs’s black turtlenecks, and I hate that they call their store employees Geniuses which, as far as I can tell, is actually true. My point is that I wish I had bought stock in Apple five years ago when I first started hating them. But I hate them more every day, which is a positive sign for investing, so I’ll probably buy some shares.

Looking back at how the Rajputs, like General Mansingh et al, collaborated with the Mughals (Mughals were better than the Khiljis, right?) Indians also justified alliances with the colonial Raj. It took some time for the reality of English rule to sink into Indian minds.

Reluctant admirers

Thus, at historical crossroads, in the 18th century, Indian industrial technology (shipping and gunpowder), wealth (Indian gold reserves) and Indian manpower (Indian sepoys and indentured labour) powered the rise of Britain.

The Indian military market was completely dominated by the private sector. Elements of the Indian military mix – soldiers, elephants, horse traders and trainers, saltpetre production, shipping, wootz steel production, was supplied to the various kingdoms. Operating on a commercial basis, across borders, these production and recruitment systems were technology leaders with high production capacity. In such a military system, standing armies were rare. Production capacities catered to the entire Indic area – and limited export markets.

As the linkage between Indian intellectual and industrial centres (Takshashila against Alexander; Nalanda and saltpetre) broke, after Indian polity fell under the spell of ‘Desert Bloc’ ideology, from 1200 (Qutubuddin Aibak onwards) till date, Indian military production also  lost discretion and propriety. From being market-oriented, and end-use sensitive, India’s military production became mercenary.

Using their ill-gotten gains, from slavery, piracy, crime, loot, et al Islamic rulers and the English outbid Indian rulers. For military elements like saltpetre, elephants, sepoys, horses, armies et al. The first time in Indian history, defence production became public sector monopoly, under Nehru’s ‘commanding heights’ and ‘temples of modern India’ socialistic policy.

To marginally ethical people, without recourse to loot, piracy and slavery under the Indic values system of shubh labh, ‘Desert Bloc’ ethics were an ‘attractive’ alternative. Economically affected by shrinkage in Indian exports due to slave raids and piracy, land grab by the colonial Indian State, some took the easy way of embracing English practices and values – giving the British Empire a leg up in India.

Pirates and slave traders as vectors of the insidious Desert Bloc ethic are usually not factored, analysed or discussed. Indian ship manufacturing centres were world leaders. Hence, ‘traders’ (especially slave traders) from the world over came to India shipyards – centred around Kerala, Gujarat and Chittagong. But slavery and loot are the two elephants in the Desert Bloc room which needs to be recognized, examined – and understood.

Sandwiched between buying Indian collaborators (like Americans are today buying Matiullah Khan) or obtaining cooperation (like Scott Adams is suggesting) from ‘reluctant’ Indian admirers lies the story of the rise of Britain and the British Raj in India.

Not a great mystery this. If you can cut out all the ‘White’ noise.

New Empire Builders – Neo-Cons Sneaking In

Posted in Uncategorized by Anuraag Sanghi on February 27, 2008

This North-South global compact … would consign … despotisms to the obscurity which the old “salt empires” of the Tortuga and Turks islands, critical to … Royal Navy, were reduced once we had overcome our saline dependency. Posted by Shri Brendan Simms (Reader in the History of International Relations at the Centre of International Studies at the University of Cambridge)

Meet The Neo-Cons

The Social Affairs Unit is a what is called these days a neo-con think tank. Unfortunately, it is neither neo nor about thought – but is definitely a con.

And the blog of one of their stars is published at their site. Shri Brendan Simms, a reader in History, I am sure, knows that what he is saying is wrong.

In this post, (linked above) Simms is proposing certain actions that “would consign the Middle Eastern despotisms to the obscurity which the old “salt empires” of the Tortuga and Turks islands, critical to the eighteenth-century Royal Navy, were reduced once we had overcome our saline dependency.”

Oil Prices – Western Democracies Are Being Held To Ransom

Simms, (like most neo-cons), has various problems in life. He starts with his western capitalist democracies find themselves held to ransom.” Mr.Simms, how many of your glorious Western democracies, have elected a single Black head of state in the last 100 years? Or a Muslim head of State? America, your epitome of a Western democracy, is struggling to nominate a woman Presidential candidate after 200 years of Republican democracy? Or am I being naive in raising these questions?

Coming to the ransom bit, is Simmie-boy getting this feeling because of the price that the Middle East is charging for oil. Simms Dearie, I know the feeling, believe me! We Indians have been through that. It is the similar feeling that we in India, (and developing countries) used to get while negotiating for food purchases (called aid) after the Bengal Famine and while rebuilding collapsed agriculture economies in post colonial India.

Ban The Business Burqa

All that OPEC wants is a market driven price. Any problems, Simmie? Why does the West not explore and drill for oil along their huge off shore areas and kill their dependence on oil. If the Oil producers are wary of the dollar price due to depreciating dollar, who can you blame.

If the West led by ‘helicopter Ben’ wants to print more dollars, who will pay the price ? The rest of this gullible world? Does Simms think, that oil rich countries will ship out limited oil resources with the same speed that Bernanke prints money – or helicopter drop dollars?

The Saudi Wealth

Simms feels bad that the Saudis “could buy General Motors with just six days of production.” At least, in this scenario, the Saudis are buying US companies with US currency as per the valuation done by US stock markets. It is not based on slave labour, which is what the British operated in the Turks and Tortugas – in the Caribbean.

Millions of captured Black Africans toiled (and died) in the Caribbean, to create wealth and luxury for Britain – the comfort of which he now uses to “consign the Middle Eastern despotisms to the obscurity … of Tortuga and Turks islands, were reduced once we had overcome our … dependency”

Iraqi Invasion

What Were The Turks & Caicos Islands

These were slave islands – and part of the Caribbean group of islands which were used by the British Navy to run their slave colonies. To call these ‘despotisms’ is right – but these were British slave despotisms.

The ‘salt colonies’ are not as well known as the ‘sugar colonies’ – Haiti, Cuba, Demerra, Trinidad and other West Indian Islands, and the millions of slaves that were imported and subsequently died. Similarly, millions of local Native American populations were wiped out. And of course, once their usefulness, was over, the European powers walked away.

Of course, some of these islands have become colonies, of the USA, Britain and the people there continue to serve the interests of these Western nations. Haiti, Cuba, Granada have been made an example of by Britain and USA, for trying to make a country of themselves. A lot of such places would be quite happy without the British attention they received – and subsequent ruin that they faced.

Privateers, slave traders and pirates were licensed to operate from these islands, by the British Government to loot – and kill.

Gertrude Margaret Lowthian BellCome To The Middle East Despots

After the WW1, the victorious allies carved up the entire Ottoman Empire – which stretched from the Middle East to Central Asia to the Eastern Europe.

Out of the Ottaman Empire, Iraq was carved up and King Faysal was put on the throne. A British amatuer Gertrude Margaret Lowthian Bell made the selection of the King Of Iraq. This new King did not even know his kingdom – and he was taken around by his new makers. Similarly, an amateur like TE Lawrence (never mind the propaganda) was used to determine the fate of the Middle East.

TE LawrenceWW1 resulted in the Balfour Declaration, which promised a Jewish homeland, to be carved out of the Ottaman Empire. Saudi Arabia was similarly made up.

By 1916, Britain, France and Russia had signed the secretive Sykes-Picot Pact – a framework for the division of the Ottoman Empire after the future defeat of the Turks. While the WW1 was going on, a civil war broke out in Russia. Kerensky, a member of the moderate Labor party, Lenin, Trotsky et al of the Bolshevik Party, overthrew the Tsar and assumed power in February 1917.

Till 1923, the Russian Civil War continued, to the defeat of Kerensky and his White Army in 1923. Kerensky wished to continue war alongside Britain and France. Lenin broke ranks, and in October 1917, the Russian-Communists started negotiations for a peace treaty with Germany. In 1918 the Treaty Of Brest Litovsk followed. After the end of WW1, Britain and France did not honor Russia’s claim under the Sykes Picot Pact. Russians retaliated and were actively involved in destabilizing the Middle East for the next 50 years, by playing of one Middle East Country against another.

Thus the entire Middle East was put on shaky political ground. Exploitative commercial contracts favoring Anglo Saxon bloc of countries were signed with these puppet governments – and the rest of the story is being played out for the last 90 years. Hobbyists decided fates of million of people.

So Mr.Simms, these Middle Eastern despots, are a creation of Western Foreign Policy - of which you claim a College Readership.

Western Investments

“West invest blood and treasure to make the Middle East a better place” out of the milk of human kindness Mr.Simms? All investments that the west has made is by the loot from Canada, Australia, Africa – and of course, India. Out of magnamity, if we call old accounts quits, current Western investments have been made for reasons of commercial self interest. Sell your Western assets, Mr.Simms, if they are not profitable enough. Possibly, it is equivalent to one hours oil production for the Saudis – and they will buy you guys out.

Regarding the blood in the Middle East, it is the poor Arabs, Palestinians, Iraqis, Kurds, Afghans, Pakistanis who are spilling it. Western blood (whatever little) is being spilt for brazen extortion. The Middle East has become a quagmire after the West decided to intervene.

Right Wing Paranoaia

Saudi foreign policy – Export of extremist Islamist ideology

And what is the foreign policy of the West Mr.Simms. Instability in Africa, Middle East. Every terror hotspot is a creation of the West – and specifically, America. And amongst others, we in India, pay a price for this. When you demonise Islam, they pay a price.

Partnerships With The West?

What partnerships are you talking about, Mr.Simms?

The kind that you has with the Turks and Tortugas? The kind that you had when the West put incompetent Emirs and Shaikhs on the various thrones of the Middle East – and now want to ‘consign to obscurity.’ After they helped you to weaken your Cold War enemy. After they have given you 60 years of luxury – with cheap oil.

Why Wont You Accept Criticism

Now these are the points that I made on your blog, Mr. Simms – 2 weeks ago. Why the hesitation in publishing those comments.

Run you can, Simmie boy, but at least, don’t hide.

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