Demonization: Method; Mechanics & the Madness

Posted in America, British Raj, Desert Bloc, History, India, politics, Propaganda by Anuraag Sanghi on July 27, 2012


The day when Churchill will join Genghis Khan, Taimur Leng, Adolph Hitler for the top honors of being the greatest killer of humanity is not far off.

Extract from one of Churchill's 1897 newspaper reports  |  Image source & courtesy - dailymail.co.uk  |  Click for image.

Extract from one of Churchill’s 1897 newspaper reports | Image source & courtesy – dailymail.co.uk | Click for image.

For instance, in the Swat Valley, during the First Mohmand Campaign (1897-1898) in the picturesque part of North India (now in modern Pakistan), Churchill

gladly took part in raids that laid waste to whole valleys, writing: “We proceeded systematically, village by village, and we destroyed the houses, filled up the wells, blew down the towers, cut down the shady trees, burned the crops and broke the reservoirs in punitive devastation.”

He then sped off to help reconquer the Sudan, where he bragged that he personally shot at least three “savages.”

When the first concentration camps were built in South Africa, he said they produced “the minimum of suffering” possible. At least 115,000 people were swept into them and 14,000 died, but he wrote only of his “irritation that kaffirs should be allowed to fire on white men.” Later, he boasted of his experiences. “That was before war degenerated,” he said. “It was great fun galloping about.”

As war secretary and then colonial secretary in the 1920s, he unleashed the notorious Black and Tans on Ireland’s Catholics, to burn homes and beat civilians. When the Kurds rebelled against British rule in Iraq, he said: “I am strongly in favor of using poisoned gas against uncivilized tribes.” It “would spread a lively terror.”

Churchill believed the highlands, the most fertile land in Kenya, should be the sole preserve of the white settlers, and approved of the clearing out of the local “kaffirs.” When the Kikuyu rebelled under Churchill’s postwar premiership, some 150,000 of them were forced at gunpoint into detention camps, later called “Britain’s gulag” by the historian Caroline Elkins. Obama never truly recovered from the torture he endured.

Didn’t everybody in Britain think that way then? One of the most striking findings of Toye’s research is that they really didn’t: even at the time, Churchill was seen as standing at the most brutal and brutish end of the British imperialist spectrum. This was clearest in his attitude to India. When Gandhi began his campaign of peaceful resistance, Churchill raged that he “ought to be lain bound hand and foot at the gates of Delhi and then trampled on by an enormous elephant with the new Viceroy seated on its back.” He later added: “I hate Indians. They are a beastly people with a beastly religion.”

This hatred killed. In 1943, to give just one example, a famine broke out in Bengal, caused,by British mismanagement. To the horror of many of his colleagues, Churchill raged that it was their own fault for “breeding like rabbits” and refused to offer any aid for months while hundreds of thousands died.

This is a real Churchill (via Book Review – Churchill’s Empire – By Richard Toye – NYTimes.com).

Winston Churchill in the Hussars just before he saw action in North India  |  Image courtesy - dailymail.co.uk  |  Click for image.

Winston Churchill in the Hussars just before he saw action in North India | Image courtesy – dailymail.co.uk | Click for image.

Churchill was someone who excelled at reducing other people with a non-stop flow of derogatory labels, till the tide of opinion turned.

This ‘reduction’ process works in four stages:

  • Stereotype
  • Demonize
  • Genocide
  • Apologize

Let us see how this process has been used in the USA. This kind of

dehumanization can have deadly consequences.

Saturday, June 23, is the 30th anniversary of one of the watershed events in the formation of the Asian American community as we know it: The killing of Vincent Chin in Detroit, Michigan, by auto workers Ronald Ebens and Michael Nitz. Chin, due to be married in two days, was celebrating his bachelor party at a strip club called the Fancy Pants when Ebens and Nitz began verbally haranguing him. “It’s because of you m_____f_____ that we’re out of work,” shouted Ebens. A fight broke out, after which all of the participants were encouraged to leave.

Chin challenged Ebens to continue the fight outside. Ebens responded by going to Nitz’s car and procuring a Louisville Slugger baseball bat (ironically, a Jackie Robinson model). After chasing Chin and cornering him in McDonald’s parking lot, Nitz held Chin down as Ebens pummeled him with the bat, sending him into a coma from which he never awoke.

Ebens and Nitz were convicted in a county court of manslaughter. They were given three years probation with no jail time, fined $3,000 and ordered to pay court costs of $780. Though Ebens was later found guilty of violating Chin’s civil rights in federal court, and sentenced to 25 years in jail, the decision was overturned on appeal.

Neither of Chin’s killers spent any time in prison for his death.

News of the case galvanized the Asian American community, forcing many who had resisted political involvement in the past to consider the grotesque implications of Chin, a Chinese American, being mistakenly identified as Japanese, and then blamed by proxy for the decline of the U.S. car industry.

The upshot is that Chin’s killing was like a bad ethnic joke gone horribly wrong: “Chinese, Japanese? What’s the difference?” (via Is Your Font Racist? (Tao Jones) – Speakeasy – WSJ).

British officers and Indian troops from the 45th Sikhs Regiment in 1897 at Chakdara fort sent to subdue Indian militants  |  Image source & courtesy - dailymail.co.uk  |  Click for image.

British officers and Indian troops from the 45th Sikhs Regiment in 1897 at Chakdara fort sent to subdue Indian militants | Image source & courtesy – dailymail.co.uk | Click for image.

Or for that matter, it can also be brown-skinned people.

In 1943, some 3 million brown-skinned subjects of the Raj died in the Bengal famine, one of history’s worst. Official documents and oral accounts of survivors paint a horrifying portrait of how Churchill, as part of the Western war effort, ordered the diversion of food from starving Indians to already well-supplied British soldiers and stockpiles in Britain and elsewhere in Europe, including Greece and Yugoslavia. And he did so with a churlishness that cannot be excused on grounds of policy: Churchill’s only response to a telegram from the government in Delhi about people perishing in the famine was to ask why Gandhi hadn’t died yet.

British imperialism had long justified itself with the pretense that it was conducted for the benefit of the governed. Churchill’s conduct in the summer and fall of 1943 gave the lie to this myth. “I hate Indians,” he told the Secretary of State for India, Leopold Amery. “They are a beastly people with a beastly religion.” The famine was their own fault, he declared at a war-cabinet meeting, for “breeding like rabbits.”

Some of India’s grain was also exported to Ceylon (now Sri Lanka) to meet needs there, even though the island wasn’t experiencing the same hardship; Australian wheat sailed past Indian cities (where the bodies of those who had died of starvation littered the streets) to depots in the Mediterranean and the Balkans; and offers of American and Canadian food aid were turned down. India was not permitted to use its own sterling reserves, or indeed its own ships, to import food. And because the British government paid inflated prices in the open market to ensure supplies, grain became unaffordable for ordinary Indians. Lord Wavell, appointed Viceroy of India that fateful year, considered the Churchill government’s attitude to India “negligent, hostile and contemptuous.”

The way in which Britain’s wartime financial arrangements and requisitioning of Indian supplies laid the ground for famine; the exchanges between the essentially decent Amery and the bumptious Churchill; the racism of Churchill’s odious aide, paymaster general Lord Cherwell, who denied India famine relief and recommended most of the logistical decisions that were to cost so many lives.

Churchill said that history would judge him kindly because he intended to write it himself. The self-serving but elegant volumes he authored on the war led the Nobel Committee, unable in all conscience to bestow him an award for peace, to give him, astonishingly, the Nobel Prize for Literature — an unwitting tribute to the fictional qualities inherent in Churchill’s self-justifying embellishments. (via Books: Churchill’s Shameful Role in the Bengal Famine – TIME).

For Indians the crucial lesson is that an enemy’s enemy need not be our friend.

He may be the second enemy.


A New Currency Bloc – The Chinese Question

Posted in Business, Current Affairs, European History, Gold Reserves, History, language, Media by Anuraag Sanghi on October 3, 2008
Estimated Chinese Holdings

Estimated Chinese Holdings

Stumbling Block

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. And after the Chinese come the Japanese with US$1 trillion of reserves. Russia, India and Brazil total to another US$1 trillion.

Given the Chinese history in the last 100 years, 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.

Even a serious attempt by the EU, with the Euro, has not been able to significantly dent the dollar market share! Apart from the Euro, in the the last 10 years, there have been at least 3 half-baked – and unbaked attempts to break the dollar hegemony. So, there you have it – it is out in the open!

What can you do about the Chinese question?

The Way Out

China, in its own short term interest (importantly) and long term interest (definitely) needs to find a way out!

Buying gold in such large quantities is not possible – there will simply be no deliveries. Increasing import ‘trade volumes’ is also difficult – as what more can China import. It cannot send many more Chinese on holidays! They don’t have the single-mindedness of the Indians – when it comes to buying gold.

What it can do is buy Western firms! China has been always been a laggard in terms of growth in software! Maybe they can buy some software firms. The domestic Chinese entrepreneurial spirit has been damped in the last 100 years. What if the Chinese were to spend on some Venture Capital funds! What if China were to kick-start their fast-moving consumer goods industry by buying P&G!

The Chinese need to acquire some big ticket assets – 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.

And then the Chinese are free to join any currency bloc – or even initiate one!

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Behind The Web Of Terror

“…one who knows the higher criminal world … for years …I have …been conscious of some power behind the malefactor, some deep organizing power which … stands in the way of the law, and throws its shield over the wrong-doer. Again and again …I have felt the presence of this force, …when I seized my thread and followed it, …it led me, …to ….” Arthur Conan Doyle – The Final Solution

Syria For Dessert

The Root Of All Terror

In today’s world, behind all terror you will similarly see another baleful influence. No, it is not Osama bin Laden. Osama is either a minor reactionary (in Marxist terms) or a diluted repetition of the Hashishi influence.

Hashishis were major source of terrorism in the Dark Ages in Europe and Middle East. Their influence was finally extirpated by Genghis Khan’s army – which systematically went after this band of mercenary killers. The English word assassin is derived from Hashishis.

The source of modern terrorism is the USA.

The formation of Israel

Similar to the Middle East carve-up after WW1, and the collapse of the Ottoman Empire, USA’s baleful story started immediately after WW2. The creation of the US cat’s paw in the Middle East – Israel. Less than 1,00,000 Jews were considered more important than the 5,00,000 Palestinian’s. This was American solution, aided by odious British legalities, (the Balfaour Declaration) to the Jewish persecution in Europe.

Just why, did Muslim Palestinians in Asia have to pay the price, for Christian persecution of Jews in Europe.

The Jews promptly forgot all about persecution – and started a new chapter in persecution. Palestinians became homeless – no passports. They could not go anywhere. Israel did not want them as Israeli citizens – but as a source of cheap labour, without rights. Jordan accepted a few. Syria was persuaded to accept some. They became stateless citizens – property of the UNHCR. And Palestinians started a new chapter in terrorism!

What Can Palestinians Do

The biggest successes in post WW2 world have been those that followed Gandhiji – Poland, South Africa, Martin Luther King and others. Odds are in favour of following the Gandhian way. The one unique military success in the last 60 years of struggle by emerging nations was Ho Chi Minh.

Ho Chi Minh from Time MagazineLike Haitian generals, time and again, Ho Chi Minh, drove back Western colonials – each time they went back on their word. The French had promised freedom and de-colonialisation after WW2. Thereafter, they tried wriggling. Ho Chi Minh wouldn’t let them move.

The French created a mess – before leaving in 1956. Just like Britain did in India (by creating a Pakistan and Kashmir). US decided that they could ‘clean up’ – and make Vietnam into another client state like other SEATO (now ASEAN) members. 20 years later, the US admitted defeat and decided to slink away. The Chinese decided to take swipe. Same story.

Three of the five permanent members of the Security Council, (supposed Super Powers or mini-Super Powers) tried their hand at Vietnam. All failed. And after defeating these ‘Super Powers’, the Viets did not flex their muscles with any of their neighbours.

Ho Chi Minh’s quiet leadership, his frugality, his unblemished personal life inspired the Viets to take on the world – and win. After becoming President of the Democratic Republic of Vietnam, he lived in a ‘gardener’s cottage and then a peasant house built on stilts beside a pond.’ Just like Gandhiji, he died just before seeing his dream came true. Ho Chi died in 1969 – a few years before the last of the colonialists was thrown out.

His was the kind of war that Gandhiji always believed in – ethical, moral. Without hate, rancour, ill-will or subjugative ambitions. Ho Chi Minh was truly the second coming of Gandhiji – the predicted Kalki. This is the success that Middle East freedom fighters need to learn from. Regressive practices by rag-tag terror outfits corrupt the freedom struggle – and dilute the stability of the outcome.

The Islamic DemonisationNext was Iran.

They foisted a corrupt Reza Shah Pahlavi in Iran. A king no one wanted. The Shah of Iran wrote new chapters in state repression.

In 1974, I was introduced to a visitor from Iran in Hyderabad, India – someone my father picked up an acquaintance with. He was afraid of speaking anything in our house in India – 2500 miles away. He was afraid as if the Savak (Shah’s secret police) was in the room next door. He was from an Iranian minority that spoke Aramaic – and the first time I came to know that Aramaic was one of the language in which the Bible was originally written (but that is another story).

The Shah of Iran worked against his own nationalist Prime Minister Mohammed Mossadeq – to protect Western Oil interests. To turn public opinion,

declassified documents detailing the 1953 U.S. overthrow of Iran’s Prime Minister Mohammed Mossadeq reveal that something actually called the “CIA Art Group” produced cartoons to turn public opinion against the democratically elected leader.

The CIA, led by Kermit Roosevelt Jr., and the British intelligence, launched Operation Ajax. Finally, in 1979, the Shah was replaced by the regressive regime of Ayatollah Khomeini, which has taken Iran out of the USA orbit – but kept Iran from progress for the last 30 years. Iran has become a source of de-stabilisation various parts of the world (Sudan, Iraq, Afghanistan, etc) – in its anti USA crusade.

US Targets Paula Abdul For Regime ChangePakistan – Old Story.

Pakistan was a part of the USA troika with Iran and Turkey in the CENTO alliance against USSR. Pakistan’s next ruler will be selected by the USA. During the Kargil war, India was talking to the USA. USA called the shots – and decided to replace Nawaz Sharif with Musharraf.

Pakistan was the training ground for New York sub-way bombing, 9/11 terrorists, for the Mujahiddin in Afghanistan and for the rogue trade in nuclear material with AQS Khan. India’s Kashmir and Khalistan problems – direct result of USA foreign policy.


Iraq started a war with Iran in 1980 (prodded by USA) against Iran. As a reward. Saddam wanted Kuwait. Before the Kuwaiti invasion, Saddam took USA “permission”. By the time USA realized what was happening, Kuwait was over. USA did a volte-face – and Saddam became a demon. Today, Iraq has become a quagmire of a civil war amongst Iraqis. The cost of an alliance with the USA. The war on terror has become another foray for the America-Australia-Britain-Canada (ABC) Axis – at a cost to the rest of the world.

“By God, we’ve kicked the Vietnam syndrome once and for all!” So said President George Bush in a euphoric victory statement at the end of the Gulf War. Did Iraq have to pay the price for exorcising the Vietnam ghost in the American mind?

Osama was operating from Afghanistan.

What did the USA have to do there!! It started with USSR. The King Of Afghanistan – Zahir Shah was replaced by a USSR backed group. A despotic, directionless regime replaced Zahir Shah. The secular voice of Khan Abdul Ghaffar Khan, an avowed Gandhian, in Afghanistan was silenced by Pakistan – an USA ally.

Afghanistan decayed into a regressive nation – which the USSR decided to change! The civil war between the mujahideen (armed by the USA) and the Russians pushed back the character of the Afghans by 1500 years. An USA supply agreement flooded Afghanistan and Peshawar with for arms and armaments. Waziristan in Pakistan, NWFP has practically been conquered by the Mujahideen. The touch that kills.

Teror Outsourcing?Who’s next?

Saudi Arabia? One of the Central Asian Republics! Anglo Saxon propaganda overdrive tells us that Islam is to be blamed. Hardly!

Three causes for this US policy.

Oil – Cheap oil. Never mind the cost to others.

Oil – All it can get. And then some more.

Oil – For no one else. Uncle Sam wants it all.

Three Monkeys – Toshogu Temple

Amazingly, one of the US presidential hopefuls, John McCain, even blames a Muslim for killing Gandhiji. This was demonisation of Muslims by the American political establishment at its best.

Post Script

The first step

On February 22nd, 2008, the Deoband Seminary, the most respected Islamic seminary in South and South East Asia, issued a anti-terrorism declaration at a huge public meeting attended by hundreds and thousands of people. This set up a new direction in Islamic social dialogue – where a non-establishment, Islamic theological group came out against terrorism. Subsequently, some other ‘liberals’ jumped onto this bandwagon.

And then …

In October 2008, Pakistan was sent on a cold turkey … by Saudi Arabia, China and the US. Pakistan has been forced to go to IMF which is prescribing a heavy cut back in defence spending.

But most interestingly …

On October 3rd, 2008, the Frontier Gandhi’s grandson was the target of suicide bomber. The terrorists are obviously worried that Khan Abdul Khan Ghaffar Khan’s sensibility may make a comeback. Suddenly the world has been reminded about Khan Abdul Khan Ghaffar Khan.

Coincidentally, in India, a film was made on Khan Abdul Ghaffar Khan. The LA Times recently ran an column on him. The answer to the Pakistani problems in the North West tribal areas was Khan Abdul Ghaffar Khan.

And the tribal chiefs of Pakistan and Afghanistan Pashtuns decided to call for a ‘mini-jirga’ on violence – to decide on the future of the two countries.

Hopefully, this a new beginning for Pakistan …

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China’s Bullion Reserves – Gold, Silver and Silk

Posted in Gold Reserves, Uncategorized by Anuraag Sanghi on November 26, 2007

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

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 ...

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 ...

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

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.

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Scorched Earth Incidents In History – What They Reveal …

Posted in Current Affairs, Gold Reserves, History, Uncategorized by Anuraag Sanghi on November 19, 2007

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.


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.


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).


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.


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

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


Hitler’s Holocaust

The Sacking Of Vijayanagar Kingdom

Timur, the Lame

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