2ndlook

Andy Mukherjee’s Poverty

Posted in Current Affairs, Gold Reserves, History, Satire, Uncategorized by Anuraag Sanghi on February 13, 2008

Andy Mukherjee – On The American Stimulus Package

Andy Mukherjee, on Wednesday, February 13, 2008, in his syndicated column used his Andy MukherjeeAsian background with devastating effect. Devastating to his (at least, partly Indian) background.

He writes,the stimulus package that has been put together to keep the U.S. economy from tipping into a recession”.

Just what is the problem with that. In the current economic thinking, all Governments are expected to create these ‘stimulus’ package.

Andy Still Talks Of Aid

He further writes,

At $168 billion, the largesse is almost three-fifths more generous … than the record $107 billion that 22 rich nations together gave out as official foreign aid in 2005 …” (ellipsis mine)

I thought every country has a right – and as per current acceptable political philosophy, it is the bounden duty of Governments to be generous to their citizens. What exactly is the objection that Andy has to the US Government’s ‘largesse’ and ‘munificence’, (his words)? I am unclear about on that till now.

Which planet is Andy on? Since he is writing a business and finance columns, is he aware (I hope he is) of the large body of research that shows how aid has in fact creates problems – and doesn’t solve any. The notorious PL-480 was abandoned because it elongated the cycle of food scarcity.

Low self esteem, Andy?

He advises,

Middle-class Asians ought to turn green with envy at the “home bias” implicit in the munificence of President George W. Bush’s administration.”

So what does Andy expect – Uncle Sam should be more liberal to Asians than to Americans? Does he expect Americans to earn and be taxed for the benefit of Asians? And just why does he think that Asians (at least Indians) will turn green with envy.

I am sure that Asia wishes to compete with the largest, best, competitive economies – but surely there is no envy involved (exceptions apart). I am also sure (unlike Andy) that, in time, we will create a level playing field (more important and more on that later) and Americans will want to be born in Asia (and most probably, India).

You want aid, Andyboy!

Andy’s Cheques by mail programme

Unlike the 111 million US households that will enjoy some tax rebate, there won’t be any cheques in the mailbox for the Asian workers.

And who exactly does Andy think, is going to send cheques by mail to Asians? Americans? Just why will Americans do that? How does Andy think Americans will fund this Andy’s ‘cheques by mail’ programme? Does Andy think that 60-80 million working Americans can suport 3 billion Asians?

And why does Andy think that Asians will queue up to take this charity? Just why is Andy’s opinion of Asians so low? Is is it because of his own low self esteem?

Asians Are Funding the US Stimulus Plan

Asia lost last year (my estimate) more than US$300 billion dollars due to the monetary policy of the USA. Deliberate, well thought out monetary policy by the USA Government.

The truth my dear Andy, is that American lifestyle is being maintained due to Asian stupidity. The Chinese, Japanese, Indian, and other ASEAN countries have lent the USA – which is in the hock, by over US$4trillion dollars. They will lose US$ 300 billion for the privilege of lending US$4 trillion to the USA.

What? Asians Fund The USA …Dollar Reserves in Developing Economies

Why? Because the system is fixed. Go back to Bretton Woods! The Anglo Saxon Bloc controlled 80% of the world’s gold production and reserves. Hence, only they could underpin their currency with gold- which the world accepted. It is separate story that they defrauded the world – and the system unravelled within a short 20 years.

And the world has been paying a price for that moment of folly.

What Does Asia Need

Asians need to create a new financial system. That is what Asia needs – and that is what US has been sabotaging for years now.

And a case for that is what I would have expected from you, Andy – or is that too much too ask for!

Country Model Of The West

Posted in Current Affairs, European History, Feminist Issues, Gold Reserves, History, Media, Uncategorized by Anuraag Sanghi on February 7, 2008

Chinese R & D SpendsThe Myth Of Western Technology

In the last 50 years, after WW2, the rise of Japan, Korea and China in manufacturing and technology and the Indian software success, have taken away the sheen from the myth of Western technological prowess. Post colonial revisions in history are eroding the euro-centric version of biased history.

Failed Westernisations

For some time, the easy way out seemed to be ‘copycat’ westernisation. One of the first ‘copycat’ states was China. China, led by Sun Yat Sen, (original name Sun Wen and started calling himself Yat-sen; Chinese call him Sun Zhongshan), was the first major power which tried going down the western path. The Japanese invasion of Manchuria sounded the death knell of the Chinese Republic and Monarchy.

China – Mao & Sun

Sun Yat Sen decided to westernise and make China into a Republican democracy. Chinese were made to cut their queue – pleated hair braids. This diktat was enforced in 20 days time. Sun Yatsen and later Mao Ze Dong made the Chinese change their dress styles too. The effect of this westernisation – an enduring sense of being followers. The Chinese add a western name to their Chinese one – Michael Tang, Bruce Lee, Jerry Yang, Tommy Tang, Tommy Chi.

In Hong Kong and Macao, white tourists are royalty. Chinese companies routinely parade White, Western investors – and the Chinese investors follow. Western marriage ceremony, Chinese couples think, is very romantic. The Christian Church wedding is common in China.

Not that Indians are too far behind – consider Steve Sanghi, Paul Parmar, or the best of them all, Bobby Jindal.

Mustafa Kemal AtaturkAtaturk’s Turkey

Turkey – led by Mustafa Kemal Ataturk was the next ‘copycat’ attempt at westernisation. After WW1, the victorious allied powers dismantled the Ottoman Empire. Turkey was reduced to a rump state.

Mustafa Kemal Atatürk was ‘installed’ by Western powers. Thereafter, Turkey has lurched from crisis to another. Post WW2, it has mostly been ruled by military dictatorships. From an arbiter in Europe, it has become a supplicant, begging for entry into EU. Instead of the queue in China – it was beards in Turkey. Atatürk enforced a new dress code on the hapless Turks – and the traditional fez was banned. Stop wearing the fez or else …

Russia – Westernising Since Peter The Great

Peter the Great, (of the Naryshkin family) co-ruler of Russia, (along with Ivan of the Miloslavsky family) ruled from 1682-1725. For more than 40 years, his agenda was to create Russia in the Western mould. His travels to Germany, Britain, Sweden (before becoming a Tsar) shaped this agenda.

One of the first things he did after becoming a Tsar was to ask his boyars (Russian nobility) to shave their beards! Catherine The Great continued this during her reign from 1762-1796. For the next 125 years, Russia vacillated between a medieval country and modern western country.

Now, the imprisoned oil tycoon Mikhail Khodorkovsky takes pains to show how Russia is a western nation and should be democracy. Khodorkovsky, who at one time nursed political ambition, says, “…I’m convinced that Russia is a European country, it’s a country with democratic traditions …”

How Every US Dollar Is SpentThe Anglo-Saxon Country Business Model

These Turkish and Chinese failures down the western garden path is to mistake the trees for the forest. There are five major features of the Anglo-Saxon country model which these countries did not copy. Not that I am recommending that they be copied.

The Use Of Corporations

The use of the British East India Company was an eye opener for the rest of the West. After Vasco da Gama’s discovery of trade route to India (for Europeans) round Africa, the British were the first of the block – with the English East India Company formed in the 1600.

The Dutch started soon after with the Vereenigde Oostindische Compagnie (Dutch East India Co.) in 1602. The Danish Opperhoved initially started in 1616 and was reborn in 1732, as Asiatisk Kompagni. The Portuguese organised themselves as chartered company in 1628. The French came with the French East India Co. in 1664. The Swedes joined the rat race in 1731 with Svenska Ostindiska Companiet. The Italians came in as the Genoa East India companies. The Hanseatic League had its own operations.

In North America, the Hudson Bay Company (Compagnie de la Baie d’Hudson in French) was given a Royal Charter in 1670 by Charles II. It practically owned Canada when the Dominion of Canada was formed – and is the oldest surviving company in North America. It monopoly ended only in 1870 – a few years after the Indian Independence War of 1857.

Anglo-American Oil Company (subsidiary of Standard Oil) of Iran plotted the the assassination of Iran’s Prime Minister Haj Ali Razmara and the overthrow of the Mohammed Mossadegh regime. Thereafter, it was the puppet regime of Shah Of Iran which terrorised Iran for 30 years that paved the way for return of Ayatollah Khomeini – and Iran’s regression to medieval times. And who was leading this campaign – Kermit Roosevelt (Teddy Roosevelt’s grandson).New Clues to JFK’s Murder?

In South America

In 1997, the CIA de-classified papers which admitted it planned and executed the coup in Guatemala – something that was known all along. This was done to protect the interests of the United Fruit Company – which owned large tracts of agricultural land in South America, used South American labour and shipped out fruit to America. Guatemalan farmers were run out of the market.

When Guatemala proposed land reforms so that Guatemalans could prosper in Guatemala, the Government of Jacobo Arbenz was overthrown. By the way, the term Banana republics came into being from the frequent intervention of the US into South American countries – and then ridiculing these countries for instability. To obtain US Governmental intervention, the United Fruit Company engaged services of Edward Louis Bernays (Sigmund Freud’s nephew) as PR front man.

Good ole DaysThe last 100 years saw the use of these companies as a means to economic dominance. ITT was used in South America for installing and removing dictators

… ITT papers published by Jack Anderson in March 1972, and in the hearings on these papers conducted by the Senate Foreign Relations Committee a year later. This material establishes that offers of financial aid aimed at stopping Allende were made by ITT president Harold S. Geneen to the CIA in July 1970 and to Henry Kissinger’s office in September” (Foreign Affairs; January 1974).

Had Richard Nixon and Henry Kissinger not responded to International Telephone & Telegraph and Pepsi-Cola by overthrowing Salvador Allende, Chile “would have found a less violent, more constitutional way out of its conundrum.” writes Stephen Kinzer in his book Overthrow: America’s Century of Regime Change From Hawaii to Iraq.

To gain control of the Panama Canal Company, the operator of the Panama Canal, US engineered the secession of Panama from Colombia. With a puppet Government in place, The Hay-Bunau-Varilla Treaty allowed the U.S. to build the Panama Canal. Subsequent interventions to advance Western oil interests in Colombia and the Canal interests in Panama have reduced Governmental authority in these countries. Drug cartels, kidnapping and ransom now control the economy of these countries.

Nearer home, of course, the next ruler of Pakistan (military or otherwise) is decided by US – at least for now.

First Gold Discovery In AustraliaThe Cornering Of Gold Supplies

For the last 150 years, the ABC countries (America, Australia, Britain, Canada) comprising the Anglo-Saxon bloc (countries, colonies and companies) have controlled 90% of the world’s gold production. Till (a large part of) India was a British Colony, they also controlled more than 50% of the above-the-ground gold reserves. This gave them absolute liberty to print depreciating currency and flood the world pieces of paper(called dollars and pounds), manipulate the world financial system and keep other populations poor and backward.

Enslavement & Annihilation Of The Natives

They could capture gold supplies by the annihilation of native populations in America and Canada (‘Red Indians’ are tourist attractions now), killed the aborigines in Australia (and apologise now).

Till the middle of 19th century, raw slavery continued. By mid 19th century new forms of slavery was introduced – indentured labour, share cropping, etc. They 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’.

https://i0.wp.com/img219.imageshack.us/img219/2897/koreausaflagmashupob5.gifThe Creation Of Client Sates

Japan, Korea, Indonesia, Pakistan, Afghanistan, Iraq, Kuwait, most of South America – have been reduced to the situation of client states. The basic position is Uncle Sam knows best – or else! These states have become production centres for the USA, cheap labour will be given an ‘opportunity’ to serve the ‘master’ states.

All these states also have significant military presence of the Anglo-Saxon Bloc which is a matter of concern for India.

Elephants in the room

Western models, which have evolved through the prism of slavery, colonialism, genocide, concentration of power are an end-of-life model. To use end-of-life products may seem like a low cost solution in the short run. The bigger issue in most cases is the  lock-in effect that these legacy systems impose on the ‘buyers’ – e.g. Singapore.

The western model of (natural and people) exploitation has runs its course – for instance, in India even salt was made into a high-tax commodity. It is a dead-end model. Parts of this model, have been used successfully by other countries – Japan with its keiretsus and Koreans with their chaebol. But obviously, this is a model that the West is an expert in – and what others copy, the West has finished with. Copycat models allow the west to predict the next steps easily and taken competitive actions with certainty. The answer for others is to create another country model. The only country which has tried this is India.

The Alternate Model

Bharat-tantra, the Indic political system that depends on local justice, low-policing, non-state free-coinage /gold-as-currency, absence of religion, property rights for all, low-tax systems, free-labour (as opposed to slave labour), enterprise instead of employment, wealth-and-property distribution instead of concentration, is the model that has a future – and a record of past success.

India, where non-State reform has played a very major role in crime, policing (JP’s dacoit reform), land reform (Vinoba Bhave’s Bhoodan movement), political change (JP’s Sampoorna Kranti movement). After the economic buffer from Bombay High oil discovery in 1974, the Indian State has certainly, steadily shed various aspects of its colonial legacy. More importantly, India did not go through the slavery-colonialism-capitalism route at all.

It has instead inching towards a republican, (largely) market-driven, democratic, declining role of State, multi-ethnic-religion-linguistic political model which is unique in modern history. What India needs to do is to one decrease the colonial inheritances further. Deliberate amnesia by historians, has obscured Bharat-tantra. India is today slotted as a socialist country – where as it has been reducing the features of a socialist State.

The underestimated and undermined political leadership in India, has worked at renewing  the Indian model – which is non-exploitative, stable and can bring equity and growth. It is this model that before others, India (and Indians) should believe in – and beat a modern path for the world to follow.

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Gold policy in modern India

Posted in Business, Current Affairs, European History, Gold Reserves, History, Media by Anuraag Sanghi on December 2, 2007
Terrorism comes to town.

Terrorism comes to town. ( Policemen inspect the Bombay Stock Exchange building after the blast in 1993. Thirteen serial bomb blasts tore the city in which at least 250 people were killed. - Photo - AP).

Who is responsible for Mumbai Bomb blasts?

Dawood Ibrahim? Wrong!

Tiger Memon? Wrong?

The answer is Late Morarjee Desai – India’s ex-Prime Minister and Finance Minister.

And a whole lot of RBI and GOI officials who were behind 40 years of legislation which has created India’s underworld, corrupted 4 generations of India Government officials and reduced the value of Indian savings by Rs.1,20,000 crores. (4000 tons of gold purchased by Indian consumers at a 30% premium at today’s value – do your numbers).

Blind Imports

The Indian development idiom is an imported idea. For instance, the Five Year Plans, from Russia. Indian monetary authorities have been led by western discourse and strategy.

No enabling mechanism, (an output of differential thinking) like the Japanese business led by MITI, American business supported by Marshall Plan, NATO, CENTO, SEATO, IMF, World Bank, US Exim Bank, ADB et al. It is these mechanisms that enabled these economies retain their dominant and exploitative positions.

India’s Gold Policy was also a case of warped thinking. To be fair, domestic thinking had to contend a tectonic shift – from a colonial-feudal system to a nationalist, democratic economy. Not discounting, Western pressures tied to aid. For instance, India’s infamous population control policy.

The other big disadvantage – English language.

TN Ninan on Indian poverty

TN Ninan on Indian poverty

The French Lesson

India’s red herring of English language stopped it following French strategy, an empire under eclipse before WW2. Today, 60 years later, France has come ahead of its arch rival and competitor – Britain. Of course, the French strategy is simple – nationalize the economy, with token private sector presence.

In the 1960s, most of the world was buying gold at an artificially low price of US$35 – and the USA was bleeding gold. The French team of Charles de Gaulle and his economic advisor, Jacques Rueff did quick maths. It was clear this मेला would not last long. The USA was printing dollars and dumping it in world markets.

The French redeemed their dollar holdings, sent the French navy to take delivery of gold from USA and bring it to Banque de France. The French raised gold reserves and dumped dollars. Banque De France finally increased its gold reserve to 92% (as a percentage of total foreign currency /monetary reserves).

The Bretton Woods system.

The world after WW2, has been governed by a financial system that has been a failure. The Bretton Woods Agreement, a millstone around the developing world. As WW2 came to a close, British-American economists came together and devised this system. The Bretton Woods system was technically created by more than 700 delegates from the 44 allied nations. But the match was fixed.

It was designed by the Anglo-Saxon countries (America, Australia, Britain, Canada), for the benefit of the Anglo Saxon countries. Did anyone notice how much Britain resisted, joined and finally exited the European Currency Union. Thie Bretton Woods System has swamped the world with accelerating inflow of dollars (American, Australian, Canadian) and British pounds. Producers and exporters are left with vast reserves of depreciating currencies.

The dollars cracking

The dollars cracking

It also gave rise to the Bretton Woods twins (the IMF and the World Bank), which are run and managed by the Anglo-Saxon countries. The ABC countries (and their client states like Japan, etc.) have more than 67% of the voting rights. With this huge voting majority, less than 5% of the world’s population (of the ABC countries) decide how 95% of the world lives.

Indian Government supported the Bretton Woods sham

The Bretton Woods system worked for 20 years because Indians were not allowed to buy gold. India’s finance minster during that crucial period, Morarji Desai, (allegedly on CIA payroll during Lyndon Johnsonn’s Presidency 1963-1968), presented a record 10 budgets, between February 1958, up to 1967. His break with Indira Gandhi began when the Finance portfolio was taken away from him.

Morarji Desai’s ban on gold imports allowed the sham of Bretton Woods to continue for 20 years. His adamant attitude on gold cost the government popularity and electoral losses – and the Indian economy and Indians much more. Was it a co-incidence that many of the RBI functionaries later got plum postings at LSE (IG Patel) and IMF (BN Aadarkar-IMF)?

The burden of the dollar

The burden of the dollar

March 15th, 1968. Finally, US support for gold prices stopped at consumer level. USA continued to promise redemption to Governments at US$35 per ounce. And on August 15th, 1971, the world got the Nixon Chop. By that time, USA gold reserves had dropped from 20,000 tons to 8500 tons – from 21,828 tons (701.8m troy ounces) in 1949 to 8130 tons (261.4-264.6m troy ounces) in the 1980s.

What did India do.

From practically, 1939, (the start of WW2) gold imports into India were controlled or banned. This British legacy (aimed at colonial exploitative ends) was continued by Indian Government and RBI. Many Gold control laws were enacted which stopped all legal gold imports into India.

Our finance minister at that time – Late Morarjee Desai.

Seymour Hersh, an American investigator implied that Morarjee Desai was in CIA pay. Morarjee Desai filed a court case – and subsequently died. Henry Kissinger, made a bald defence of Morarjee Desai.

The other thing that happened was that gold imports went underground.

Morarji Desai may get his place on Mount Rushmore

Morarji Desai may get his place on Mount Rushmore

Gold (illegal) imports (called smuggling) spawned biggest criminals that India has seen. Karim Lala, Haji Mastan, Varadarajan Mudaliar, Yusuf Patel, Tiger Memmon, Chota Rajan, and of course, Dawood Ibrahim – a biological son of a police constable Sheikh Ibrahim Kaskar, was spawned by Morarjee Desai’s laws.

These laws corrupted four generations of Indians Government and politicians. It made gold in India very expensive – and the Indian buyer remained in poverty longer.

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