2ndlook

The War on Drugs – A 2ndlook

Posted in Business, China, Current Affairs, European History, India, Media, politics by Anuraag Sanghi on June 9, 2011
On one side the government promotes drug use - and on the other wages a 'war' on drugs. Click for larger image.

On one side the government promotes drug use - and on the other wages a 'war' on drugs. Click for larger image.

The drug surge

With 2 crore (20 million) drug users in the USA, prisons overflowing with more than 20 lakh (2 million) prisoners, the American policy establishment is stuck for answers.

In the past 40 years, the U.S. government has spent over $2.5 trillion dollars fighting the War on Drugs. Despite the ad campaigns, increased incarceration rates and a crackdown on smuggling, the number of illicit drug users in America has risen over the years and now sits at 19.9 million Americans. (via The War on Drugs).

In modern times

The 2 crore (20 million) figure is more than 16% of the working-age, labour population of the USA – which stands at 16 crores (160 million). The use of opium, heroin, morphine by armies created a core group of addicts, from where opium addiction increased. Used extensively during the Civil War, by 1900, the US had more than a 10 lakh (1 million addicts) – compared to nearly 2 crore (20 million) narcotic-users now.

The current wave of drug usage possibly started after the Vietnam War. It is estimated that as many as 40% of US soldiers, in Vietnam, were heroin users.

Although the U.S. government has battled drugs for decades — President Eisenhower assembled a 5-member Cabinet committee to “stamp out narcotic addiction” in 1954 — the term “War on Drugs” was not widely used until President Nixon created the Drug Enforcement Administration (DEA) in 1973 to announce “an all-out global war on the drug menace.” (via The War on Drugs).

Earlier, in the 19th century, the Opium trade with China siphoned out vast amounts of silver, under the logic of ‘free trade’, giving rise to some of the biggest Western fortunes (of the Roosevelts, for instance). Or the remarkable story of David Sassoon.

Indian labourers processing opium for the British Raj. (Image source - Wellcome Library; Image courtesy - bbc.co.uk). Click for a larger image.

Indian labourers processing opium for the British Raj. (Image source - Wellcome Library; Image courtesy - bbc.co.uk). Click for a larger image.

The Sassoon opium saga

A Jewish trader, David Sassoon originally Daud ibn Sassoon, was born in Baghdad 1792 and died in Pune, 1864. The Jewish synagogue in Pune, Lal Deval, was set by up the Sassoon family; the Sassoon Library in Mumbai also, and above all the huge Sassoon Docks, from which their ships carried China’s destruction – opium from India.

Son of Sheikh Saleh ben Sassoon (1750–1830), David Sassoon came to Mumbai in 1832, after his father’s death in Bushehr, in modern Iran. His father, a rich Jew, well connected to the Ottomans rulers, chose Sassoon as the family name. This choice was possibly linked to the Persian royal origin, Sassan, grandfather of Ardashir-I, founder of the Persian-Zoroastrian Sassanian dynasty. Interestingly, Sason in Hebrew means joy, similar to the ancient Sumerian word for opium, hul gil.

David shifted from Baghdad-to-Persia-to-Bombay, after the Sassoon family fell out of favour with some powerful business interests in Baghdad. Meanwhile, the British branch of Sassoons cultivated the rising power – British royalty. Ferdinand Sassoon, Arthur and Philip Sassoon, hosted Prince Edwards, the future king and also Queen Victoria. Reuben Sassoon (1835-1905), part of the British branch of Sassoons, was especially close to the future king of England, Edward – to become ‘perhaps the Prince of Wales’s closest friend’. Not only British royalty, even big-name families in the USA, like

Franklin D. Roosevelt’s fortune was inherited from his maternal grandfather Warren Delano. In 1830 he was a senior partner of Russell & Company whose merchant fleet carried Sassoon’s opium to China.

Vietnam War created heroin addicts. (Book extract from - Drugs and society  By Glen R. Hanson, Peter J. Venturelli, Annette E. Fleckenstein; page 256). Click to go to source.

Vietnam War created heroin addicts. (Book extract from - Drugs and society By Glen R. Hanson, Peter J. Venturelli, Annette E. Fleckenstein; page 256). Click to go to source.

British opium trading companies like Jardine Matheson, David Sassoon & Company and sundry traders set up The Hong Kong & Shanghai Banking Corporation for facilitating this misery.

Karl Marx’s commentary on the opium trade, written some 150 years ago, makes interesting reading even today. Much loved by the capitalists of his time, Karl Marx analyzed opium trade well.

What’s common in the Golden Crescent & the Golden Triangle

After WWII, traditional opium supplies from (Greater) China, by Government granted opium monopolies of Yugoslavia and Italy, were replaced by Iran, India, Pakistan, Afghanistan and Mexico. It was the Golden Triangle and the Golden Crescent which dominated opium supplies from 1960s, after the start of Vietnam War.

For some time during the Vietnam War, the French intelligence also used drug money to funds its own operation. Like its British and American counterparts, French Government identified its intelligence agencies to manage drug trade.

After abolition of the French Indochina opium monopoly in 1950, SDECE imposed centralized, covert controls over the illicit drug traffic that linked the Hmong poppy fields of Laos with the opium dens operating in Saigon. This generated profits that funded French covert operations in their Vietnam war.

With the advent of the Fifth Republic, and through 1962, the SDECE was used as a strategic intelligence service by the prime minister Michel Debre, and was particularly efficient in the struggle against the rebellion in Algeria. (via DGSE – General Directorate for External Security – Direction Generale de la Securite Exterieure – French Intelligence Agencies).

Drug flows from these new supply sources coincided with America’s Asian Wars in Cambodia, Thailand, Laos, Vietnam, Korea, etc. These wars were justified under Eisenhower’s Domino Theory – which made Communism an enemy ‘under-your-bed’. The subject of much research, many Hollywood films and significant evidence confirm that American armed forces and the CIA were behind drugs import into USA. The so-called Phoenix operation was run by CIA with some 200 Green Berets – whose major activity apart from killings, assassinations and torture, was narcotics.

Some 75 years later Jardine Matheson-David Sassoon’s bank for opium, CIA too set up banks in the Bahamas, like the Mercantile Bank and Trust and Castle Bank and Nugan Hand Bank (incorporated in Cayman Islands and operating from Australia) to handle heroin trade out of the Golden triangle.

While the Oil and Terror linkage is much talked about, the role of Saudi Arabian funding much discussed, the global footprint of the drug trade is overlooked. As controls on gold sparked a global crime wave, the war on drugs is sparking another crime wave – a wave of terror. When the West wanted they imposed Opium Trade in the name of open markets. When the West wanted they declared a war on drugs.

Either way, someone else is paying.

The world pays for the US war on drugs!

The world pays for the US war on drugs!

The Indian enigma

Some things strike me as interesting: –

  • All the major drugs in the world came from India – opium is afeem, khus-khus, पोस्त; cannabis is charas, ganja, marijuana, hashish. Heroin is a derivative of opium.
  • The Sanskrit word for opium is अहिफेनः, अहिफेनम् ahi-fenam – which also means venom. The Arabic word afeem, Chinese word ya-pien, come from this. Though modern history believes that Arabs introduced opium to India, it seems improbable.
  • Most of the world’s drug production (based on opium and cannabis) still happens in India and neighbouring countries – Pakistan, Afghanistan, Iran, Burma, Thailand, Cambodia. In recent times, Indian gold smuggling was funded by carriage and export of drugs.
  • Why has drugs never become a big problem in India. Even, as Indians are significant producers, Indians themselves are not high on consumption lists – or have significantly profited from it.
  • Unlike in China, or in Medieval Middle East (when drug crazed criminals called hashishis became assassins). Or the West in the last 100 years.
  • Till the 80′s, these substances were available in India, through ‘licensed’ outlets.

Nail them, jail them

The police actions against drug cartels have given little benefit. The heavy-handed legal approach of criminalizing possession of drugs too has yielded no results either.

in the past 40 years, the U.S. government has spent over $2.5 trillion dollars fighting the War on Drugs. Despite the ad campaigns, increased incarceration rates and a crackdown on smuggling, the number of illicit drug users in America has risen over the years and now sits at 19.9 million Americans.

Director of National Intelligence Dennis Blair declare(d) last week that the Mexican government had lost control of its own territory. President Felipe Calderón responded by pointing out that his nation shared a border with “the biggest consumer of drugs in the world and the largest supplier of weapons in the world.” (via The War on Drugs).

Gold and drugs .. and India

The world pays for the US war on drugs!

A major effect of US restrictions on gold ownership, sparked a global crime wave – in which drugs played a major part. The opening of the gold trade across the world during 1973-1993 (especially in India) damped down the power of the Indian Underworld. The other leg on which the Indian underworld stands, is drug trade.

Indian belief in gold is not a recent - but a centuries of trust and habit. Cartoon courtesy - indiauploads.wordpresscom. Click for larger image.

Indian belief in gold is not a recent - but a centuries of trust and habit. Cartoon courtesy - indiauploads.wordpresscom. Click for larger image.

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

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

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

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

The tobacco parallel

The complicity of governments is very similar to tobacco monopolies across the world. Or the modern expansion in prostitution – especially in the West.

Six companies and sundry State monopolies drive global cigarette consumption. These six companies derive more than US$100 billion dollars in revenues, globally. For many years they were advertising industries largest customers.These six companies are headquartered at former European imperial powers (UK, France, Spain), USA and Japan. These six companies work at an arm’s length from the State, giving the State a luxury of ‘plausible deniability’.

After creating appetites and markets for narcotics, the State wants to control the same appetite.

During a 1984 appearance at an Oakland, Calif. school, then-First Lady Nancy Reagan was asked by 10-year-old Angel Wiltz what to do if someone offered her drugs. “Just say no,” replied Reagan. Within a year, 5,000 “Just Say No” clubs had formed around the country, with Soleli Moon Frye, (Punky Brewster) as honorary chairperson. The Los Angeles Police Department’s 1983 Drug Abuse Resistance Education (D.A.R.E.) school lecture program, grew into a national phenomenon that, by 2003, cost $230 million and involved 50,000 police officers. (via The War on Drugs).

British Cartoon on Opium (Source - Drugs and society  By Glen R. Hanson, Peter J. Venturelli, Annette E. Fleckenstein; Page 253). Click to go to the source book.

British Cartoon on Opium (Source - Drugs and society By Glen R. Hanson, Peter J. Venturelli, Annette E. Fleckenstein; Page 253). Click to go to the source book.

Chinese State Tobacco monopoly

Or how China has replaced Western powers pushing opium in China in the nineteenth century.With a national tobacco monopoly.

Not expected after the opium experience of the Chinese, when Western trading houses, under State protection, using the garb of ‘free trade’, made China into the largest consumer of opium.

The Chinese Govt. has replaced opium with tobacco. In the 19th century, China became the largest grower of opium to stop the drain of wealth from Chinese addiction to opium. The Chinese opium crop of 1906, of more than 35,000 tons, remains the largest ever in recorded history. Compared to that the current crop in Afghanistan has varied between 5000-10000 tons at its peak.

The second secret of the tobacco business is to be dominant in purchasing and cornering tobacco stock. For cornering tobacco stocks, Big Tobacco depends on Central Banks’ support – aka State support. For instance, ITC (and other major global tobacco purchasers) in India has a major presence in Guntur, where Indian tobacco trade is headquartered. ITC’s over-sized chequebook buys it market dominance.

In India, such State policy on drugs and crime was a feat by Mughals and the British. Post-independence Indian State has partly patterned itself on Desert Bloc lines. Will it become a drug dealer?

Will the Indian government ‘learn’ from its counterparts?

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The inn-keeper of Babylon

Posted in European History, History, India by Anuraag Sanghi on May 12, 2011
5th century Indian innkeeper in Kish, Babylon (from The shape of ancient thought: comparative studies in Greek and Indian ...  By Thomas McEvilley; page 11).

5th century Indian innkeeper in Kish, Babylon (from The shape of ancient thought: comparative studies in Greek and Indian ... By Thomas McEvilley; page 11). Click to go to books.google.com

This figurine is a small (18 cm tall) bronze rein-ring, constructed as a decoration for a four-wheeled chariot. Collected in 1928 on a joint Field Museum of Natural History/Oxford University expedition, it dates to the late Early Dynastic I period - c. 2800-2750 BC. (Data Source - Darren Naish; Picture courtesy - scienceblogs.com). Click for larger picture.

This figurine is a small (18 cm tall) bronze rein-ring, constructed as a decoration for a four-wheeled chariot. Collected in 1928 on a joint Field Museum of Natural History/Oxford University expedition, it dates to the late Early Dynastic I period - c. 2800-2750 BC. (Data Source - Darren Naish; Picture courtesy - scienceblogs.com). Click for larger picture.

Indian confetti over the world

A 5th century cuneiform clay tablet, dating probably from the reign of Darius the Great) was found at Kish (near modern town of Al-Hillah, Babil province of modern Iraq). Kish, about 100km south of Baghdad, was one of the important cities in the Babylonian cluster – along with Babylon, Sippar, Seleucia and Borsippa.

Unlike the popular image, of ‘static’ Indians, we have some free-ranging Indians roaming the world. With elephants, expert horsemen – and a probable case of a Siwalik giraffid.

Siwalik giraffid

Kish was the site of another intriguing find. A bronze chariot rein ring, which probably seems related to the African giraffe or a species of deer from Iran. Called Sivathere of Kish, it has been object of many studies  – an unknown hoofed mammal of the Middle East. Initially thought to be related to the Sivatherium – a large, short-necked giraffid, originally described for S. giganteus from the Siwalik Hills of India.

So, apart from the deep links in astronomy, there are other intriguing such confetti sprayed around Babylon – which the Americans have pounded with tons of explosions.

Meshing and gnashing – The Clash of civilizations

Posted in Current Affairs, European History, History, India, Islamic Demonization, Media, politics, Religion by Anuraag Sanghi on February 16, 2011
Huntington's book gave pseudo-intellectual justification started the Western campaign of Islamic demonization. (Image source - http://www.bayesianinvestor.com/books; artist attribution not available at image source)

Huntington

Mercenary logic

Samuel P . Huntington’s 1993 book, Clash of Civilizations, has a historical ring to it – a hint of something grand. An influential book, it ostensibly examined ‘conflicts between Western and non-Western cultures’ – and brought the phrase, Clash of Civilizations into limelight.

In the post-Soviet World, the book marked the launch of a new Western campaign – Islamic demonization. This book, released some four years after Rushdie-fatwa, provided pseudo-intellectual justification for West’s anti-Islamic campaign.

The America+NATO sponsored ‘ethnic cleansing’ campaign in Bosnia was underway, since 1992. Saturation media coverage of Monica Lewinsky and cigars effectively drowned President Clinton’s role in the initiation of the anti-Islamic campaign – and the news coming out of the Balkans. Deliberate diversionary tactics?

India’s co-option too, into this campaign was planned in significant detail – and successfully executed. 9/11 (September 11, 2001) was still 8 years in the future. The verbal trickery behind Huntington’s Clash of civilizations ‘package-deal’ has gone by without challenge or de-construction in India. This post will cover some Trojan concepts Huntington  smuggled into the mainstream.

A Basic Stance

For one, the definition of civilizations has to be beyond race, ruins and region. Instead, a definition  around differentiated structures – political, social, economic and ethical structures makes comparative analysis possible.

Civilizations tend to repeat political, social, economic and ethical structures. In the last five thousand years, only three civilizational models can be identified and substantially differentiated.

Desert Bloc

The world’s dominant model today, it has been able to nearly erase competing systems from the collective minds of the ruling elites in the world.

Signs of the Desert Bloc’s birth were first evidenced in the Assyrian Empire – its first laws codified by Hammurabi. Dating is contested, and best estimates are that the Assyrian Empire collapsed around c.600 BC. Seven of history’s largest empires used the Assyrian Empire, as a springboard.

The Desert Bloc extends from west of India, across Middle East, West Asia, extending to Central Asia and Eastern Europe – with its core in a region of 1000 miles radius of Palestine. Inventors of religion, world’s three important religions, (Judaism, Christianity, Islam) were born within 1000 miles radius of Palestine, in the deserts of Middle East. Each of these religions were, so to say, ‘backward compatible’. Islam recognizes Christianity, which uses Judeo-Mosaic texts for its foundations.

Anti-feminist, none of the three religions have female goddesses – unlike the two other civilizations specified below. Western Christian world gave women the right to vote, mostly between 1920-1950. Low levels of marital success are institutionalized – and instead prostitution levels are high.

The Desert Bloc depends on extreme competitiveness between its own factions to gain leadership – extending the analogy of survival of the fittest. Some of its defining struggles in the last 1000 years were Islam vs Christianity; Spain vs Portugal; England vs France; USA vs USSR.

Such factions spring up around deified leaders based on a sharp identity – race, tribe, language, region, religion. Significant leadership struggles have broken out between even intra-religious sects – like Catholics and Protestants, Shias vs Sunnis.

A significant marker of the Desert Bloc is concentration of wealth, power and land in the hands of these deified leaders and their inner circle. Unlike the two other civilizational groups, as we will see. This allows Desert Bloc factions to indulge in extremism. Over 90% of the world’s bloodiest wars, genocides, massacres, annihilations, are to the Desert Bloc account.

The Desert Bloc is differentiated by extensive use of slavery, rule by elites, conspicuous consumption (show piece buildings, spectacular technology) et al.

Driven by ‘at-any-cost’ approach, in the Desert Bloc, everything and everyone is expendable to attain leadership position. Driven more by accelerated creation and destruction, Desert Bloc sub-groups have short life spans (Achaemenid Iran, Greece, Rome, Mongol Empire). Greece, Rome, the Ummayyads, Abbasids, Mongolian Empire, Colonial Spain and Britain best represent the Desert Bloc.

Can different factions of the Desert Bloc, like the Christian West and Islam collaborate? The Islāmic Ottoman Empire and the Christian European powers could not get around to colluding with each other. Even the collusion between the Christian European colonizers was  difficult.  Unless it was over carving the spoils, dividing areas for exploitation – like Papal Bulls (between Spain and Portugal) or the Berlin Conference which triggered the ‘scramble for Africa.’

The  Afro Group

Apart from the Indic System, the only other civilization, the Afro Group could resist the Desert Bloc onslaught in the last 1000 years. The Afro Group successfully kept its identity, at a great cost, unlike Native Americans or Australian aborigines.

An iconic photograph of the Soweto uprising. (Image courtesy - le-regent.net; photographer attribution absent at source).

An iconic photograph of the Soweto uprising. (Image courtesy - le-regent.net; photographer attribution absent at source).

They successfully engaged with the Desert Bloc in Haiti, at Battle of Isandlwana (22 January 1879), by the Mau Mau in Kenya.

Monica Schulyer, an assistant professor of history at Wanye State University, (thinks) the name Mau Mau was itself a British invention and means nothing in Kenyan. Members of the independence movement called them selves the Land and Freedom Army.

In modern South Africa, on July 16, 1976, the ‘day began with a march by 10,000 students carrying banners and slogans, saying “Down with Afrikaans” and “Viva Azania” (the name given to South Africa by black nationalists)’. Soon the number swelled to ‘fifteen thousand school children involved in the protests (Tuttle 1)’, rose against imposition of Afrikaans language by White Apartheid rule. Known to the world as Soweto Uprisings, it is without parallel in the annals of history. In the very heart of the modern Desert Bloc – the USA, after centuries of slavery and discrimination, the Afro Group was able to roll back excesses.

Their robust ‘native’ intelligence best describes how Desert Bloc works. In Jomo Kenyatta words,

“When the Missionaries arrived, the Africans had the Land and the Missionaries had the Bible. They taught how to pray with our eyes closed. When we opened them, they had the land and we had the Bible.”

Another unit from the Afro Group, Cuba, far from its base in Africa, after breaking from slavery,  successfully resisted coming under political bondage of the Desert Bloc, for the last 100 years. In the ancient world, Carthage checked the spread of Desert Bloc, represented by Greece. Carthage allied with Rome to destroy Greece.

Before that, Nubians brought the Egyptian Empire to heel. The 25th dynasty from Nubia or Kush, south of Egypt (modern Sudan), ruled over Egypt for at least 75 years. Piye, earlier”Piankhy”the Nubian king invaded Egypt (ca. 746 BC) – and started the 25th Dynasty, that probably continued till 650 BC. He was succeeded by Shabaqo (ca. 716-702 BC) and his successors Shebitqo (ca. 702-690 BC) and Taharqa (690-664 BC).

Traditional African structures had diffused land and wealth ownership – unlike the Desert Bloc. There is little proof of concentration of wealth in African structures.

Both, the Afro Group and the Indic System have a much superior record of minimal environmental degradation. The Big 5 in animals – elephant, tiger /leopard, lion, wild bull, rhino exist only in the these two core geographies. Big Game hunters in Africa (from the Desert Bloc, where else) described 5 animals as the Big 5 – elephants, lion, buffalo, leopard and the rhino as the Big Five. These were animals that were difficult to hunt and kill (for pleasure, if you thought otherwise).

This ‘pleasure’ was the operating principle. As a result of this ‘pleasure’, there are only two parts of the world where such Big Five exist. India and Africa. China, the Middle East and of course Europe and America, have wiped entire continents of all these animals.

Modern history, under a Hegelian spell has ignored Afro Group history. Bereft of spectacular structures, visible ‘leaders’ or the recent decline in fortunes, the study of African history has been decided as unimportant.

Indic systems

Based on भारत-तंत्र Bharattantra platform. Indic systems focus on four freedoms – काम kaam (desire, including sexual) अर्थ arth (wealth), मोक्ष moksh(liberty)and धर्मं dharma (justice), and stipulates unrestricted access to ज़र zar (gold), जन jan (people) and ज़मीन jameen (land).

Originating in India, based on platform of anti-slavery, distribution of power and diversity, this was the dominant ideology in the world till about 8th century. In Tibet, Songtsen Gampa, the 33rd king, became the first dharma-raja in 7th century – a follower of भारत-तंत्र Bharattantra . The Indic system has been in sharp retreat for the last 500 years – especially after Mughal rule in India. Inspite of sharp reversals in the last 500 years, half the world is still significantly influenced by Indic systems.

Militarily impregnable till about 17th century, Mughal rule established the first beachhead for the Desert Bloc in India.

Strong population growth based on widespread marital occurrence, strong and extensive family structures, are features that have sustained Indic systems in the society, even though some rulers defected to the Desert Bloc.

Indians worship every item of God's creation - not just cows. (Image source - Sri U.Ve. Prasanna Venkatachariar Chaturvedi Swamin)

Indians worship every item of God's creation - not just cows. (Image source - Sri U.Ve. Prasanna Venkatachariar Chaturvedi Swamin)

With diverse liturgical, beatification, sacramental practices, graded pantheism (local deities, semi-divine gods and goddesses with a top layer of the Holy Trinity), faith and belief do not occupy the space or importance that religion has in the Desert Bloc. These are within the realm of individual choice with scattered efforts at proselytization

The Indic system still has significant following in China and most of ASEAN region – notably Indonesia, Tibet, Cambodia, Thailand, Sri Lanka. The modern proof of this was the India Independence League (IIL) headed by Subhash Chandra Bose.

In recent times

Each of these megaliths have traditional spheres of influence.

Post-WWII world has been been seriously influenced by the Desert Bloc. The Desert Bloc split into two factions. The liberal-progressive, democratic, Judeo-Christian faction led by America. Significant parts of the world has moved to the Desert Bloc orbit, and adopted the religion of Westernization.

An interesting study is the post-WWII behaviour of the Euro-American faction. After WWII, as British, French and Dutch colonialists were being thrown out of Asia, in country after country, the West was in real danger of losing markets and raw material sources.

To make war palatable, Desert Bloc invented religion. (Image source - loonpond.com; artist attribution not available at image source)

To make war palatable, Desert Bloc invented religion. (Image source - loonpond.com; artist attribution not available at image source)

A new power, fueled by a growing migrant population, USA, took the place of tired, old powers – Britain, France and the Dutch. Instead of the openly-exploitative system of European powers directly running colonial governments in these Asian countries, the US installed an opaque system – which is equally exploitative. To impose its writ on the newly independent Asian countries, the US simply destroyed their  economies by war. The USA, then instituted the innovative USCAP Program and ‘helped’ these countries. These countries (Taiwan, Singapore, Japan, South Korea, Indonesia, Malaysia, et al) were now ruled by overtly independent regimes – but covertly, client states of the USA.

US multinationals and home-grown oligarchs (keiretsus, chaebols, etc.) took over the economy – and sidelined British, French and Dutch companies. To impose this economic model, US armies, using nearly 1 million troops, killed 50 lakh Asians. The takeover of European colonial possessions by the USA was handled over 3 regimes of Eisenhower-Kennedy-Johnson seamlessly.

Islamic units

The second faction is the Islamic faction. After the breakup of the Ottoman Empire, by the West, after WWI, new renegade groups supported by the West, sprang up. These renegade groups are using extremist  Islam to meld the Islamic faction into a more powerful factor in the global power equation.

Some of these Islamic regimes installed and supported by Western powers have been slowly drifting away from the West – like Turkey, Syria, Jordan, Iran, etc. Some other regimes are longer able to call the shots – like the Saud family, or the Iraqi regime.

The other aspect of the Islamic faction is the geographical spread. The primary Islamic region is the Arab region, centred around Middle East /West Asia region. The secondary Islamic region is the Central Asia – earlier a part of the Mongol Empire. Walled in by China and Japan on the East, by Russia on the West and diverse countries in the South, it is a shadow of its former self.

The region with the largest Islamic population is South and South East Asia – concentrated across India, Indonesia, Pakistan, Bangladesh and Malaysia. The South and South East Asia Islamic region has a moderate and non-imperial history.

Hence these three regions (Middle-East region, Central Asian region and South /SE Asian) have evolved differently and have little in common. Hence, the image of the Islamic ‘world’ as a monolithic unit is misleading.

Big trouble in Little China

The other puzzle is classifying China. China under Confucian State model was solidly in the Desert Bloc. After the advent of Buddhism, as the Chinese people became landholders, as they obtained rights to own silver and gold, they moved to Indic system. Marriage and family systems became the norm – instead of exception.

After and under Mongols, for instance the Kublai Khan restricted silver and gold rights – and issued fiat currency. The Chinese State has mostly been Desert Bloc in its tendency. But the Chinese people have great faith in their Buddhist teachers. Will China become a staunch Desert Bloc member like Iran in the past, is still possibly an open question.

Even stevens!

The Assyrian thread

With Niniveh, (also called Asshur) as its capital, the Assyrian Empire, ended in 600 BC. The Assyrian Empire passed through many hands – recreating and renewing itself in the same mould. The name, Assyrian Empire was a Roman modification of Asuristan – the area of current Iraq.

The  Achaemenid Empire (c. 550–330 BC) were the first successor power to preside over the Assyrian Empire, from their capital in Perspolis. Many wealthy Jews were envied for their vast slave holdings. Alexander ousted the Achaemenids to rule over the Assyrian Empire – effectively after the Battle at Gaugemela (331 BC). Daidochi Wars after Alexander’s death and attacks by Rome-Carthage alliance  led to the disintegration of Macedonian rule. Romans, added Western Europe, and ruled over the Assyrian Empire for the next 350 years (60 BC-285 AD), with its capital in Rome.

Rome formally lost the Assyrian Empire when Diocletian was forced to split Roman Empire in 285 AD. Eastern Roman Empire, well-known for its premier city, Byzantium (a cognate of Indian Vyjayanti) mostly had its capital in Constantinople (modern Istanbul) continued to gain power and wealth over the next 400 years.

Various Islamic dynasties (c.700-1300) ruled over large parts of the Assyrian Empire, with capitals mostly in Damascus, Baghdad, till they were deposed by Genghis Khan’s Mongols. After adding China, Mongol factions ruled over the Assyrian Empire for varying periods, between 1300-1600 AD over different parts of the Assyrian Empire.

It was the Mongols who helped in the rise of the West. First, was the trade in millions of slaves from Eastern Europe (the Slavs, hence slaves) by Venetian and Florentine traders, which funelled vast monies into European economies from Egyptian and Byzantine slave-buyers. This wealth from slave trade was the stuff of which tales are told. Shakespeare wrote of Merchant of Venice, Comedy of Errors, Gentlemen of Verona. Leonardo da Vinci,  architect Bramante, sculptor Donatello, Michelangelo, Titian and other famous artists found patrons with the earlier Visconti, powerful Medicis, notorious Borgias, lesser known Sforza (Milan), Pazzi and the Albizzi families. It was this slave-trade that fuelled Renaissance art and culture. Florence, Venice, Milan became major banking centres. Double-entry book keeping became standard, under which any kind of financial picture can be created. Quite unlike the Indian single-entry system.

Mongols brought to the West two major technologies. One, was the Indian decimal system and Indian saltpetre for gunpowder, was the other. Indian mathematics (initially outlawed by European rulers) is the foundation of Western science and technology. Indian gunpowder was their ticket to military power. Wealth from trade in African slaves, conquest, loot, annihilation of Native Americans, using gunpowder, fuelled a 500 year technology boom in the West.

The last significant dynasties that ruled over the ancient Assyrian Empire were Islamic Ottomans and the Christian Austro-Hungarian Empire. These two empires were dismantled after WW1 (1920) by Western allies.

Slavery rarely finds mention in Indian media. Much less is any discussion or understanding about the role of slavery in the rise of the West. A rare Indian columnist with awareness of the slavery factor. Even this discussion about clash of civilizations does not work.

People for Profit – The NGO story

Posted in Business, Current Affairs, Environment, European History, Feminist Issues, History, India, Media, politics, Religion by Anuraag Sanghi on November 22, 2010
(Cartoon courtesy - http://www.bihartimes.in). Click for larger image.

(Cartoon courtesy - http://www.bihartimes.in). Click for larger image.

Funding India NGOs

Something very strange is happening. There are some 33 lakh (3.3 million) NGOs, operating in India – for the 20 crore (200 million) odd families in India. That would be one NGO for every 70 families.

These mushrooming NGOs are getting billions of US$ in funding. Recently,

Statistics released by the home ministry regarding ‘foreign funds to NGOs’ show that India, which has a total of 33,937 registered associations, received Rs 12,289.63 crore in foreign contributions during 2006-07 as against Rs 7,877.57 crore in 2005-06, a substantial increase of nearly Rs 4,400 crore (56%) in just one year.

The US, Germany, the UK, Switzerland and Italy were the top five foreign contributors during 2006-07. These five countries have consistently been the big donors since 2004-05. Spain, the Netherlands, Belgium, Canada and France are the other countries which figure prominently in the list of foreign donors. (read more via Foreign funds to Indian NGOs soar, Pak among donors-India-The Times of India).

Foreign aid kitty - Table courtesy - Times of India

Foreign aid kitty - Table courtesy - Times of India.

What does this mean …

Rs 12,289.63 crore is roughly US$3 billion – based on average dollar value for 2008.

And that, is a lot of money.

That is more money than what the US Govt. gave as aid to more than the 100 poorest countries. Till a few years ago, India annual FDI was US$ 4 billion. Just a little more than the US$3 billion that India received as charity through various NGOs in 2008.

The total US Official Development Assistance to the whole of sub-Saharan Africa (more than 40 countries), in 2007, was “US$4.5 billion contributed bilaterally and an estimated $1.2 billion was contributed through multilateral organizations”.

What is the source of these funds …

The rich, the poor and the middle class in these ‘charitable countries’ are themselves deep in debt. Where are they getting the money from? Why are they being so liberal towards India? What is the source of these funds?

Where this money going …

Is it going as thinly disguised aid to Naxal affected areas – where some ‘Christian’ missionaries are working tosave’ the tribals? Is it going towards publicity for causes which are thinly disguised trade issues. For instance, child labour – which is, in many cases, a system of apprenticeship for traditional skills.

Or are these NGOs promoting policy frameworks which are distorting India’s social systems? The Population Myth /Problem /Explosion for instance was promoted for the first decade by Ford Foundation, the Carnegie Foundation and USAID. Are they behind the NGOs which are promoting Section 498 laws as a legal solution – a solution that ‘benefits’ about 5000 women and creates about 150,000 women as victims.

AIDS was the excuse to open doors. (Cartoonist - Godfrey Mwampembwa “Gado”; from Nairobi, Kenya; courtesy - http://www.pambazuka.org). Click for larger image.

AIDS was the excuse to open doors. (Cartoonist - Godfrey Mwampembwa “Gado”; from Nairobi, Kenya; courtesy - http://www.pambazuka.org). Click for larger image.

These are laws and policies which are undermining the Indian family system. Which country in the world has a stable family structure with such low divorce rates as India?

The Clintons, The Gates, The Turners, et al

The ‘progressive-liberal’ establishment of the West is viewed rather benignly in India – and seen as ‘well-wishers’ of India. Many such ideas are welcomed in India without analysis. These ideas are viewed positively, as the source of such initiatives is seen as well-intentioned. These rich money-bags in cahoots with the State’s propaganda machinery, the media and academia are creating false messiahs, hollow idols and instant saints.

St.Tony Judt - The media and academia in cahoots with the State (Cartoon by Pavel Constantin, Romania; Cartoon Courtesy - caglecartoons.com).

St.Tony Judt - The media and academia in cahoots with the State (Cartoon by Pavel Constantin, Romania; Cartoon Courtesy - caglecartoons.com).

The beatification of Saint Judt

The last 90 days saw a surge on obits, reviews and tributes to Tony Judt.

Tony who? Exactly.

An unknown writer till a few months ago, has suddenly become famous in his death. Media (at least in India) has gone overboard. But when Marathi media started on Tony Judt, it was high noon. The straw on the camel’s back.

OK, guilty of misrepresentation. Not the camel’ back! It was my back.

There seems an effort at beatification of Tony Judt. In the modern era, temporal authorities, award a quick Nobel Prize, pin a Congressional Medal of Honor – and the process of ‘secular’ sainthood is completed. Media aids by marching to the drumbeat of the State. These ‘secular’ sainthoods by the ‘modern-secular-liberal-progressive-democratic’ establishment are not meant to be enduring or important. They , the latter-day, disposable, ‘secular’ saints, serve a utilitarian purpose to their masters – the State.

Tony Judt is no exception.

How come 'modern' Western identities are not included by Tony Judt in his 'problem' list? (Cartoon By - Angel Boligan, Courtesy - Cagle Cartoons)

How come 'modern' Western identities are not included by Tony Judt in his 'problem' list? (Cartoon By - Angel Boligan, Courtesy - Cagle Cartoons)

From the safety of a university cloister

By being overtly anti-Israel, Tony Judt, gets an inside track into the Islāmic mind – to start his ideas of ‘identity’.

A self-confessed, Social Democrat (but that is not ‘identity’) Tony Judt is the type who speaks from the comfort of a winning side.

We know enough of ideological and political movements to be wary of exclusive solidarity in all its forms. One should keep one’s distance not only from the obviously unappealing “-isms”—fascism, jingoism, chauvinism—but also from the more seductive variety: communism, to be sure, but nationalism and Zionism too. And then there is national pride: more than two centuries after Samuel Johnson first made the point, patriotism—as anyone who passed the last decade in America can testify—is still the last refuge of the scoundrel. (read more via Edge People | The New York Review of Books).

As fortunes shifted and wavered, Tony Judt’s recounts how his family moved from one declining economy to another growing economy. From Eastern Europe, vaguely in a region near Russia, to Antwerp in Belgium, thereon to Britain, and finally to the USA. He finds

over the years these fierce unconditional loyalties—to a country, a God, an idea, or a man—have come to terrify me. The thin veneer of civilization rests upon what may well be an illusory faith in our common humanity.

The West has systematically deformed Islamic identity - after dismantling the Ottoman Empire. (Cartoonist - Paresh Nath, Published by - The National Herald, India)

The West has systematically deformed Islamic identity - after dismantling the Ottoman Empire. (Cartoonist - Paresh Nath, Published by - The National Herald, India)

To people like Tony Judt, identity is a matter of convenience. And they rightly, recommend that people must have no identity – and by extension, no loyalty. Fly flags of convenience. May the highest bidder win.

I wonder where Judt’s family was, when the Belgians were flogging the Congolese.

Sainthood by the Vatican

The ‘modern’ State and the media of the Free World have it easy when it comes to cannonising people like Tony Judt!

The Catholic Church has a rather exacting process, stretching over a few years, at the very least. The Catholic Church even appoints a Devil’s Advocate – someone who tries to find reasons why the candidate should NOT be declared a saint.

This process has sometimes taken decades too. After multiple processes and steps, a committee. the Congregation for the Causes of Saints decides on these issues. With the kind of rigour that the Vatican process follows, Saints have ‘public memory’ life span extending to centuries.

The perversion of the Islamic world started with the break up of the Ottoman Empire (Cartoon By - Emad Hajjaj, Jordan; Cartoon Courtesy - caglecartoons.com)

The perversion of the Islamic world started with the break up of the Ottoman Empire (Cartoon By - Emad Hajjaj, Jordan; Cartoon Courtesy - caglecartoons.com)

Coming to Saint Judt

Today when the West is paying the price for creating a misshapen Islāmic identity, people like Judt thinly speak out against identity – an Islāmic identity. Or when the West faces a challenge from Asia, China and India, it pays to talk of less identity.

This idea of less identity would not be such a bad idea – if you have so little of identity, to start with!

Remember trojan horses

A ‘tolerant’ and ‘open’ society like India can be a complacent victim to trojan horses – and ‘secular’ saints like Tony Judt. Another article a few weeks ago gave an overview of the NGO ‘economy’.

In many ways, (the) metamorphosis from a modest, village-level, kurta-pyjama clad activist into a well-heeled, suited-booted, city slicker whose voice is heard in high places, mirrors the changing face of India’s burgeoning voluntary sector. Once the preserve of the humble jholawallah, the ‘third sector’ of the Indian economy is now teeming with smart men and women, armed with management degrees, laptops and huge funds generated by a liberalised and booming economy. As the state retreats in an era of privatisation, new-generation NGOs have moved in to fill the vacuum, often doing what the government used to do in rural areas and urban slums or conducting advocacy programmes for policy interventions, even holding skill-building workshops to update small voluntary groups. Their activities are vast and varied and bear little resemblance to the sweetly charitable work of the silent, selfless grassroots workers of the ’70s and the ’80s.

The growth of the sector has been explosive in the past two decades, both in numbers and financial resources. First, the numbers. If the findings of a survey conducted by the Central Statistical Organisation of the ministry of statistics in 2008 are to be believed, there are as many as 3. 3 million NGOs registered in India. In other words, there is one NGO for every 400 Indians. No other country in the world boasts of such huge numbers in the third sector. However, this mind-boggling figure should be taken with a pinch of salt, as even the CSO report has acknowledged that many are probably defunct. But, as Sanjay Agarwal, a chartered accountant who works with several NGOs, said, “At least the CSO has tried to shine a light where there was darkness all these years. No one has ever tried to collate any kind of data on the voluntary sector. “

The CSO report then is a starting point and its data is revealing. It found that the big growth spurt has happened since 1991. As many as 30 per cent of the 3. 3 million NGOs were registered in the decade of the ’90s and 45 per cent more came up after the year 2000. While religious organisations and charities were the most commonly registered societies in the period before 1970, there was a phenomenal expansion in social service organisations after 1991 – as much as a 40 per cent increase, according to the CSO report.

It is significant that the phenomenal expansion of the voluntary sector coincides with the opening up of the economy and its rapid growth. India was changing as it privatised and globalised, and the changes saw NGOs blooming in thousands as civil society matured and began asserting itself. Nothing underscores their growing influence more than enforcement of the Right to Information Act and the National Rural Employment Generation Act, both of which were products of pressure from civil society organisations.

Yet, despite such unprecedented growth, there has been little or no effort to map the voluntary sector or streamline it for transparency. It remains opaque, with questionable accountability levels, leaving it vulnerable to scams and scandals and the inevitable public suspicion about sources and utilisation of funds. Because of the lack of comprehensive data, even estimates about the financial size of the sector vary. One figure is as high as Rs 75, 000 crore annually, but Rajesh Tandon, president of PRIA (Society for Participatory Research in Asia), a leading mega NGO that works with a host of smaller ones, puts the amount of money available to this sector at around Rs 40, 000 crore per year.

Most of the funding comes from domestic sources, of which the government is the largest donor. However, foreign donations make up a significant portion of the financial resources available to NGOs. Unfortunately, here too, despite a Foreign Contributions Regulation Act, no authentic figures are available, underlining the laxity that prevails in this sector. Home minister P Chidambaram told Parliament recently that the government recorded a figure of around Rs 10, 000 crore from foreign donations last year. He went on to add that this figure was grossly undervalued because nearly half the NGOs registered to receive foreign aid had not reported contributions they have received over the years. In other words, he said, foreign funding of the NGO sector could be as high as Rs 20, 000 crores.

The prevailing confusion and the lack of systems to track movement of funds have only served to tarnish the image of the voluntary sector, despite the good work that many of them do. As with every sector, there are good NGOs and bad NGOs. Unfortunately, the latter hog the headlines. Scams are aplenty, particularly when it comes to the disbursement of government money. The rural development ministry’s main funding agency, which also happens to be the biggest government donor, CAPART (Council for Advancement of People’s Action and Rural Technology ), fell into disrepute because of the high level of corruption in the department. (read more via People for Profit | Cover Story | Times Crest).

Vatican opposes abortion for a steady supply of targets? (cartoonist - Adam Zyglis; cartoon courtesy - www.adamzyglis.com.). Click for larger and original image.

Vatican opposes abortion for a steady supply of targets? (cartoonist - Adam Zyglis; cartoon courtesy - http://www.adamzyglis.com.). Click for larger and original image.

The hoax of this century

2ndlook tracked and collated the entire Climate change campaign, where

  1. Multiple PR agencies, NGOs were used and funded by the British, Norwegian and Australian Governments
  2. To mount a global campaign of ‘epic’ proportions
  3. To stampede the world into a regime of faceless and unaccountable bureaucrats –
  4. That would monitor nations, industry and economies of the world.

The campaign possibly even subverted the Maldives election campaign to propel a Trojan horse into the developing world camp. Nobel prizes were dangled in front of the Trinidad’s PM. A group of ‘Vulnerable 14′ was promoted to make proxy noises on behalf of the organizers of his climate change hoax.

The do-gooder industry

These NGOs under the garb of being do-gooders, soon end up showing their true colours. Whether its was the Climate change campaign, or the social-service sector, the do-gooder industry is dangerous idea.

A 62-year-old British national, who was arrested by the UK police on charges of sexually abusing several boys of a boarding school in Chennai over three years from September 2003, is likely to walk free in a fortnight because of a year-long delay on the part of Indian authorities in assisting the probe. (read more via UK paedophile may walk free-Chennai-Cities-The Times of India).

The do-good industry

An Australian do-gooder was arrested for sexually assaulting children of an orphanage in Puri. Powel Allen, an eye surgeon employed with the orphanage for the past four years, was arrested in Vishakhapatnam (Andhra Pradesh). Sometime back, two other orphanage administrators, and alleged pedophiles, Duncan Grant and Allan John Waters were convicted (their conviction is now under appeal-review).

What do the supposed beneficiaries get? A lot of 'wind' ...(Cartoonist - Godfrey Mwampembwa “Gado”; from Nairobi, Kenya; courtesy - http://www.pambazuka.org). Click for larger image.

What do the supposed beneficiaries get? A lot of 'wind' ...(Cartoonist - Godfrey Mwampembwa “Gado”; from Nairobi, Kenya; courtesy - http://www.pambazuka.org). Click for larger image.

Further back, Wilhelm and Lile Marti, a Swiss couple, again in the do-good industry, were granted bail in a pedophilia case. After bail, they promptly fled India.

Do we really need these do-gooders?

Mother Teresa, another do-gooder raised hundreds of crores in the name of Kolkatta’s poor, A few hundreds of the Kolkatta’s poor benefited from that money. But many missionaries rode on the backs of these poor Kolkattans, raising even more money. The PR machine of the Vatican has done a great job on this scam.

Create false alarums! (cartoon date - 2009/12/22; SeattlePI - (cartoon - Horsey) What's the take-away message?). Click for larger image.

Create false alarums! (cartoon date - 2009/12/22; SeattlePI - (cartoon - Horsey) What's the take-away message?). Click for larger image.

Even if India can’t take care of its poor, we don’t need these do-gooders!

Away!! Begone!

Should we say, ‘Get thee behind me, Satan!!’

They have problems at home

Spain has 400,000 prostitutes (for a population of 40 million) who ‘attract’ 15,00,000 clients every day. Some state the Spanish social system is in! Britain has 10,000 Muslim prisoners out 16,00,000 British Muslims . Quite a number of prisoners to have!

And these very countries had the temerity to ‘donate’ Indian NGOs a humungous US$3 billion (nearly) last year. May I suggest? Keep your money and keep your do-gooders at home.

Your need is greater than ours.

Turning points in 20th century history

Posted in Business, Current Affairs, European History, Gold Reserves, History, India, politics by Anuraag Sanghi on November 19, 2010
A poster advertising life of the "Abonos Nitrato de Chile" (Fertilizer Nitrate of Chile), 1930.

A poster advertising life of the "Abonos Nitrato de Chile" (Fertilizer Nitrate of Chile), 1930.

Gunpowder monopoly ends

Towards the end of 19th century, newly discovered nitrate deposits (sodium nitrate) in the Atacama desert of Chile came onto world markets. Chile’s nitrates were a crucial intermediate for gunpowder.

Chile’s nitrates broke the British monopoly over the trade in Indian saltpetre for the first time in modern history. French domestic production of saltpetre, barely enough for their own needs, could not challenge Indian saltpetre output that the British monopolized.

Indian saltpetre (potassium nitrate) could be simply refined and used directly in gunpowder – unlike Chilean nitrates. Also Chilean nitrates were limited natural deposits, whereas Indian saltpetre was produced on an industrial scale, accounting for some 70% of global production.

Germans quickly secured supplies of Chilean nitrates. A few years into the WWI, Germans brought the Haber-Bosch process from the laboratory stage to industrial production. The Haber-Bosch process for production of ammonia, gave Germans industrial capacity to produce gunpowder.

Causes for WW1

With this industrial capacity for gunpowder in place, Germany and Turkey, both non-colonial, industrialized powers challenged colonial powers, Britain and France, for access to world markets.

Diagram showing the world nitrogen quantities ...

Image via Wikipedia

The breakup of the Islamic Turkish Ottoman Empire was long seen (1890-1920) as an outcome essential for continued Anglo-French hegemony.

Funding WWI

Against Britain and France, the then dominant world powers, with extensive colonies, were Germany, the Austro-Hungarian Empire and the Ottoman Empire out of Turkey. Once WWI started, US funded both Britain and France. The US plied the Anglo-French alliance with extensive supplies and credit.

Emergence of USA

While millions died in European trenches, the USA bided its time. With mud, blood and disease taking a heavy toll, Britain, France, Germany, Turkey and Russia were soon exhausted and prostrate into a stalemate by the end of 1916. As the fate of WWI hung in balance, USA finally joined the Anglo-French side to gain a share of spoils.

 A soldier evacuated from the battlefront on a stretcher during WW1 - Image courtesy - bbc.co.uk. Click for larger image.

A soldier evacuated from the battlefront on a stretcher during WW1 - Image courtesy - bbc.co.uk. Click for larger image.

Financially unaffected, industrially strong, militarily effective, the US emerged on the world stage.

Post-WW1

Soon after WWI, as Anglo-French colonies and markets started opening up, US products gained new customers. Indians started buying Chevrolets, Buicks, Packards in small numbers. Victrolas started playing music in India – and on India. Michelin’s radial tyres from France became a byword in India for long-life. Indian natural rubber started going to Italy’s Pirelli and France’s Michelin.

Impoverishment of India

But Britain, a victorious nation was deep in debt – to USA and Colonial India. US emerged as the largest creditor nation. To settle these wartime debts, debtor Britain and creditor USA worked out a debt-repayment ‘mechanism’. Nothing but financial jugglery, this mechanism slashed the amount due to Colonial India and actually transferred the debt-burden of WW1 onto the backs of Indian peasant.

To settle this debt, Britain took recourse to gold from India. To give impetus to this transaction US supplied Britain with silver – then in abundant supply, in the form of US silver currency coins. This silver was ‘sold’ to Britain at double the market price – under the guise of the Pittman Act. Britain paid its wartime debt to India with this silver – at this inflated Pittman Act price. Abundant silver coins were stuck by the Colonial Raj, which are still available across India in large quantities.

To settle loans taken from USA to fight WW1, Britain extracted scarce gold from India. While payments for Indian exports were made in overpriced silver, the Indian peasant was forced to pay for imports and taxes in under-priced gold.

Starving Indian woman with swollen ankles & feet because she suffers from dropsy as young daughter stands by with swollen belly from hunger during famine crisis. (Photographer - Margaret Bourke-White; Date taken-1946; picture courtesy - life.com). Click for larger image.

Starving Indian woman with swollen ankles & feet because she suffers from dropsy as young daughter stands by with swollen belly from hunger during famine crisis. (Photographer - Margaret Bourke-White; Date taken-1946; picture courtesy - life.com). Click for larger image.

Due to this overpriced silver-under-priced gold combination, a surge in gold outflows started from India. Soon the US banking system was flush with liquidity.

Great Depression

Expecting the closed markets of Anglo-French colonies to open up, US economy expanded trade relations and industrial capacity. This expansion in trade and production of industrial goods was funded partly on the back of inflows of gold from India through Britain.

Finally though, protective barriers did not come down substantially enough – creating industrial over-capacity and excess liquidity in USA. Seeing ‘irresponsible’ bankers, waste ‘hard-earned’ gold on ill-planned trade expansion and production capacities, the US Federal Reserve clamped down on liquidity.

Great Depression followed. To ‘save’ gold-reserves, Roosevelt went further and nationalized gold.

Crime in the 20th century

In turn, Roosevelt’s gold nationalization, sparked a global crime tsunami. Only after the easing of restrictions on gold ownership by 1990, did the crime tsunami subside. The axis of this tsunami of crime was gold smuggling into India and narcotics trans-shipment through India.

A tsunami that engulfed all major economies of the world.

WW2

Unresolved issues of WW1 triggered WW2. Germany hemmed in from all sides by British client-states, unable to find markets for its industrial production,  reacted.

Germany, allied with Japan and Italy, proposed creation of larger ‘home’ markets. This was to be done by ‘expanding’ their own borders – to include neighboring countries. As first steps, on 3 October 1935 Italy invaded Abyssinia, now Ethiopia, Germany on 11-12 March, 1938, swallowed Austria; and Japan occupied Manchuria.

The basic assumptions of all the European powers, Japan and the USA were the same. The Confucian-Platonic ideal of superior, wise rulers who ruled over ‘inferior’ peoples.

These militant powers shared the same disregard for human life. Britain wreaked havoc by creating The Great Bengal Famine. Some 40-50 lakh (4-5 millions) Indians died. Hitler rained the Holocaust on the Jews. Some 50-60 lakh (5-6 million) Jews died.

Same difference.

Three faces of stagnation

Production capacity of non-OECD world was destroyed by years of colonialism, WW1 and WW2. Economic conditions after WW2 improved due to relative peace and as countries of the world started rebuilding their economies in the last 60 years (1950-2010).

The last 60 years has seen significant increase in industrial capacity of non-OECD nations. US extended supplier’s credit – using the US dollar, the favored currency of the Bretton Woods system.

A significant portion of economic expansion of OECD economies during 1950-1980 happened as production capacity of the world was rebuilt. The same capacities that were destroyed by colonialism, WW1 and WW2 – especially during 1850-1950 period.

WW3?

This creation of production capacity in non-OECD countries means economic stagnation and loss of political power for a few decades across OECD. With greater production capacity in the hands of non-OECD producers,  production capacity in OECD-USA must shrink.

Or a WW3 will be ‘needed’ to destroy the production systems of the poorest countries – to ‘save’ the West-OECD.

Creating false agenda's has become a full time job in the West with specialist think-tanks, media organisations and PR firms. (cartoon courtesy - http://polyp.org.uk). Click for larger image.

Creating false agenda's has become a full time job in the West with specialist think-tanks, media organisations and PR firms. (cartoon courtesy - http://polyp.org.uk). Click for larger image.

Red herrings

To get around this ‘problem’ of stagnation, the West has created artificial ‘crisis’ situations.

  1. Population Explosion
  2. Global Warming and climate change
  3. Civil Wars in Africa
  4. Islamic Demonization
  5. Terrorism
  6. Financial meltdowns

Complicating the current situation is the US currency mechanism, called USCAP (by 2ndlook) which favors selected US allies with advantageous exchange rates. China, Asian Tigers, Japan and NATO-Europe have gained significantly from the USCAP program.

The most notable loss due to trade distortion has been Africa’s.

Power Corrupts

During the 20th century, the world had to contend with an intolerable situation. The Anglo-Saxon Bloc (America, Australia, Britain and Canada) accounted for 80% of gold production (between 1200-1800 tons per annum) and controlled 80% of global gold reserves (around 100,000 tons circa  1920) also. Not even Chengez Khan had that kind of control over global economy.

Dawn of a new century

Things change.

At the beginning of 21st century, gold reserves in the hands of all the nation-States, are at a historic low. All the Governments in the world own less than 20%, i.e. 30,000 tons from global gold reserves of 150,000 tonnes.

Another 5 years of aggressive gold buying by global consumers will see this down to possibly 15%-17%. This will severely limit the ability of any State to wage a prolonged war.

A collapse of the currency systems in the world is imminent – in the next 5-15 years. Gold may give super-normal returns in the face of such an event.

Desert Twins - Westernization and Jihad. Problems both!

Desert Twins - Westernization and Jihad. Problems both!

Desert Bloc – beginning of the end?

The 20th century possibly saw the Desert Bloc reach its high-point. The world fully understands the bankruptcy of the Desert Bloc – and it may take some time for the effects of Desert Bloc propaganda to wear off.

Celebrations may, however, be premature. The alternate to Desert Bloc politics – भारत-तंत्र Bharat-tantra is yet to regain traction.

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