2ndlook

The Third Currency Option – Junk the Dollar and the Euro

Europe’s Been Onto Something … While the US gently weeps

The EU region calling for a ‘G8 + India & China’ conference to thrash out this global monetary issue – and has been twisting the knife in the reluctant US side. The US has been dragging its feet. While the EU has been going gung-ho on this, the US has been floating many trial balloons.

Warren Buffet, Paul Volcker and Lawrence Summers have been co-opted by the President-elect of the US – Barack Obama. There has been talk of a manipulation in bullion prices – which may be required for re-anchoring currencies. Interesting deals – considered impossible till a few years, are being done in a tearing hurry.

Europe would obviously like to break the dollar hegemony – and muscle into the racket. They know the Third World-Russia-China are not prepared.

And what do Europeans want – some seats at the global regulatory table, to force US moneybags (for now) and others to seek approvals, which will come at a cost … or is it that the approvals will come at a price …

Which will solve no one’s problems … back to square one …

The US Gameplan

US analysts, led by Paul Krugman, have been calling for Barack Obama to emulate Roosevelt – who waded into WW2, with 25,000 tons of nationalized gold. If gold is nationalized, it may depress demand in the short term – giving rise to huge volatility in gold prices. But Warren Buffett has been on the silver bandwagon for a while – and that is making the gold-silver equation hazy. What if Warren Buffet becomes the new US Treasury Chief? There is the real risk of another fraud like the gold standard happening all over again.

The US has been making its moves – differently. Paul Krugman’s Nobel Prize is an indication of this. Will the US use Paul Krugman as the Keynes of the Bretton Woods. The background of Bretton Woods itself, is of course, something that the US and Europe do not want the world at large to know.

The financial stimulus plan hasn’t even a snow flakes chance in hell – as there are no targets left who can be funded. Industrial corporations are lip deep in debt. The housing sector is knackered. The tech sector has over capacity. No go, no show.

What Has Been India upto? Either … or …

India seems to completely lack direction on how to move independently in times like these. After, all why should India even look at IMF and World Bank – which are fig leaf organizations of the West, as transfer mechanisms of wealth from the Third World to the rich.

Interestingly, Manmohan Singh has done some huge work in the last 60 days – the nuclear deal with the USA and NSG, the IBSA Summit, the ASEAN free trade agreement – and now his three Asian nation visits. India’s Trade and Commerce Minister, Kamal Nath, has been talking about a multi-lateral set up. The UN was made to issue a statement on this. While the US has been resisting calls for action, busy doing post-mortem, Asia and Europe have been moving.

India is unlikely to get seriously affected by the current crisis – which is possibly creating complacency in India about what needs to be done.Or India is working on a different plan, of which we know nothing. After all, India does believe in moving steadily (even, if slowly).

Are we reading too much into this? At times, India has seemed clueless.

Russia and China – The DragoBear Dance

The big issue is of course, China and Russia. China has 2 trillion of US dollars – and what does China do with this? This crisis seems to have made the Chinese Premier shaky. Russia has come out from a default about a decade ago – with a nearly US$400 billion reserves – flexing its muscles in Georgia and dependent on a high oil prices. What happens to Russia if a new Pacific Republic (Cuba, Haiti, West Indies, etc) were to start drilling for oil? In 5 years, the world would be awash with oil – and Russia’s mineral earnings could evaporate.

So, the world may not trust China and Russia too much. Russia and China can be the party poopers – but they cannot be the life of the party. Russia and China as significant military powers as well as a part of P5, will want their pound of flesh. They will, of course, be afraid of being left out!

Among the P5, US and EU have their own reserve currencies – leaving Russia and China out in the open. Russia and China (as full P5 powers) will want a ‘lion’s share’ of influence in any new architecture. Which any Third World grouping will not give.

The US will not have them and the EU does not want them!

Stalemate.

Russia and China play blame-the-US game

The US has been evading transparency by not revealing M3 figures (on dubious grounds), printing money 24×7×365 and creating toxic assets. Now when the muck has hit the fan, they are acting coy. And this made the Chinese very angry.

China has alleged that the US has plundered the world – and is is now looking after its own. China alleges that the US is not bothered about the problems the US has created for other countries.

Late In the day, Mr.Hu … This is something that the world has been talking about for a long time. China has been a major supporter (and victim) of this scam – by allowing US companies unlimited access and support. Chinese citizens have been duped with low paying jobs at these enterprises.

Is China forgetting history … Mr.Hu – Today it is the US – but yesterday, it was Europe, Mr.Hu. Europe was blockaded by the US for the last 100 years – and hence, European loot is possibly forgotten in China. European loot was accompanied by a lot of bloodshed and killing also, Mr.Hu.

Has the Leopard Changed its spots Possibly, you dont know, Mr.Hu, because China has very little wildlife left. Leopards dont change their spots. Europe behaves today, because it has no options.

China is making common cause with EU over the dollar crisis. While Chinese disappointment is understandable, their actions are beyond comprehension. Just why will Europeans be bothered about Chinese welfare? Just look at their history!!

For that matter why in the world would anyone be interested in Chinese welfare – except the Chinese, of course. The Chinese Government is looking at all options – except Chinese welfare, unfortunately.

The answers A new currency floated by the five major economies who are most affected today – China, Russia, India, Brazil, South Africa. Maybe Japan will also join in. But, the answer, Mr.Hu is with these 5 – and not Europe.

OK … join the gang

Sometime back, Medvedev joined China in blaming the US. Now that the blame game is over, is it finished. Over. Satisfied with blaming the US, Mr.Medvedev.

Now what

Mr.Medvedev, now that you have blamed the US, are you better off. Apart from some (dubious) satisfaction, what else have you got.

Russia has a lot to feel bad about, I agree. US$400 billion is a lot of money – and to see it being printed out of existence, cannot be good. Sometime back China started the blame game – and now Russia has joined in. However, I am yet to see any constructive action. Especially from China and Russia.

Russia, China should join up with with Brazil, South Africa and India to present an alternative to the world community. With this grouping and backing, at least a 100 countries will sign up within 30 days.

Wakey, wakey, Mr.Medvedev. Let us get to work. Blaming the US gets us no where.

Japan + ASEAN

China-leaning Lee Kuan Yew with an Islamic Malaysia may not be very hot about ‘giving so much influence’ to a ‘new member’ like India for an ASEAN initiative. Any action which hurts the US, their largest market and patron, will be something that will make Japan and ASEAN hesitate. The very economic model of ASEAN + Japan is undervalued currency + exports to the USA. Hence, they will be wary of any initiative that affects the USA – and the West.

Status Quo …

And that is why South Africa and Brazil are essential for India. China and Russia must join in. The benefits are too obvious – and the fallout is non-existent!

The New 5 – Three Horsemen Of Apocalypse

The real action will be 5 countries – Russia and China on one hand – and India, South Africa and Brazil on the other.

The G3 (i.e. India, South Africa and Brazil) have functioning democracies, decent regulatory systems (which can be ramped up), the technology platforms, the trading systems, a vibrant entrepreneurial class – all of which is powering their economies forward. What they don’t have is P5 status – which is useful, though not essential.

This Washington meeting – Contours Of The Deal

During the con-fab, ‘committees will be set up’ which will create mechanisms for this management. The EU-USA-Asia may agree (for the time being) on a broad a global regulatory and oversight body to monitor and maintain oversight over a Dollar-Euro currency regime. Some of Asia may want to cling to this Dollar-Euro skirt.

But what the BRICS must work on is a Third reserve currency for the Third World.

The new currency may an Asian-Developing world currency. The big issue for the developing world will be obtaining assurances against predatory raids by the dollar bloc and the Euro-zone to dismantle any new system – like the alleged plot of 1997 Asian crisis.The lesser issues will also be inter-bank settlements, anchoring currencies (the role of gold or bullion).

Following is a 2ndlook at the how the Third currency option will work.

The Organization for the 3rd currency option

Q: Who will handle this currency?

A: The BRIX Reserve Organization will be a the global body which will manage the operations of the BRIX currency. This organization will have initially shareholding by the BRICS countries – equally.

Q: What will happen when new shareholders come in?

A: The promoter shareholders will (later) offer shareholding to other countries to the extent of minimum 1% of total capital and not exceeding 5%. The promoter countries will gradually reduce their shareholding proportionately and equally by inducting other shareholders or selling existing shareholding to new shareholders.

Q: What will be the capital contribution by member countries?

Member countries will contribute to capital equal to 4000 tons of gold (but not gold). Capital will be increased by addition of new members and/or existing members. In case of exchange rate fluctuations, exchange rate will be based on 90 days average. In case of any significant decline in exchange value, concerned member country to make good the shortfall in capital contribution or face shift in member status.

Q: What will be the role of gold in BRIX-BRO system?

A: All citizens of member countries will be allowed to own and trade in gold – within and outside the country during peacetime. In cases of national emergencies, countries may impose export restrictions for a limited defined period.

Governments will not be required to maintain any gold balances at all.

Q: What will be the role of BRO?

A: Firstly to provide and maintain Realtime Settlement System (RSS) – a on line, real time, trading platform – for all the national currencies of member banks and countries. Additionally, there can be ‘permitted’ currencies’ – like the Dollar and the Euro, for trading in non-member currencies.

The RSS will enable participating members will be allowed to nett off transactions.Th BRO will also approve ‘standard packages’ for over-the-counter (OTC) trading of derivative products.

Q: How will BRO make money?

A: The RSS will earn fees through transaction fees and earnings from float – which currently is used by the US and ECB. Individual countries based on trade and production patterns can expand or contract currency supply. Based on supply and demand for individual currency, the RSS will aid the price discovery and setting. National Central Banks will be able to borrow or lend BRIX through the BRO.

Q: Who will man the BRO?

A: Banking specialists will be deputed from (initially, founder) member countries in equal proportion at each level in the organization. Over a period of time, the BRO will build it own cadre of banking specialists – starting with entry level candidates.

The Currency

Q: What will the currency be called?

A: Initially, the start up name of the currency unit can be BRIX.

Q: How will the BRIX currency look like?

A: The BRIX currency will only exist in bank accounts. It will not be printed, circulated physically or stored in vaults.

Q: What will happen to current US$-Euro reserves?

A: Initially all dollar reserves will be used to facilitate trade between member and non-member countries. The BRO will maintain Dollar /Euro reserves equal to 3 months requirements for member countries. Excess dollar reserves of member countries will drawn down gradually over 12-36 months based on market developments.

Q: How will monetary expansion of the BRIX be handled?

A: All monetary expansion of the BRO will happen through trade volumes and capital infusions. The BRO cannot print, monetize, expand money supply.

The Mechanics and Operations

Q: How will exchange rates be determined?

A: Demand and supply for currencies will determine exchange rates. Output of products, services, will create supply and demand for various currencies.

Q: Who will be allowed to trade on the RSS?

A: National currencies will be traded on electronic platforms with accredited traders, backed by institutional settlement system, trade guarantee – based on demand and supply for various national currencies.

Member Benefits

Q: What changes will countries need to make?

A: Very few. All transactions must be linked to the index currency – the BRIX. No country will be required to change from their current currency system. As trades happen, a BRIX amount will be created. As the payout happens, that many BRIX will be extinguished.

Q: What reserve requirements will be imposed on member countries?

A: All countries will be required to maintain a reserve of 1 month’s BRIX usage with the BRO. This amount will earn interest rate at market determined rates.

Q: What happens when countries go through emergencies, catastrophes or calamities?

A: In case of extreme volatility in any currency due to currency /economic /natural disaster, the BRO Board of Governors may approve loans – which will be guaranteed by the donor central banks. Loans by BRO will at all times will be covered by guarantees.

The benefit of this that any country can raise loans from BRO by finding sponsors. Thus hegemony by a few powerful country will not be possible. Thus a small economy (like say) Iceland can raise a loan by finding a consortium of guarantor (say African) countries.

National central banks may guarantee ‘interest’ payments or ‘interest+principal’ amounts. In case of normal commercial loans, the principal and interest repayments can be a commercial credit decision by the BRO.

Q: How will countries maintain their foreign currency reserves?

A: Countries will need to maintain minimal BRIX reserves. BRIX will be fully convertible into other currencies. However, since all national currencies will be convertible, the need will be minimal.

Q: What will be the disclosures and information requirements?

A: BRO will collate, circulate and publish information given by all member Governments regarding M3, currency, etc.

Safety, Checks & Balances

Q: What will happen when a ‘rogue’ Government prints too much money?

A: Whenever, exchange rate volatility exceeds the prescribed bands, BRO will impose trade restrictions after due inquiry.

Q: What about predatory currency traders?

A: Since, BRIX cannot be bought except by creating business trade, there cannot be large holdings of BRIX which can be used for predatory activities. National currencies of member countries can be at risk if excessive monetization happens. But, since, trading in all currencies will happen continuously, excessive monetization will first come to light in terms of excess supply and deterioration in exchange rates.

Q: What about fake currency?

A: The BRO will have its own mint and currency printing units which will print currencies for member countries. This will ensure that mala fide, fake currency by foreign agencies, criminal elements will be eliminated. The BRO may also insist that weak economies print their currency at the BRO mint to ensure that there is transparency in money supply.

Q: What about trade in Government debt and securities?

A: All member countries will be required to intimate and route transactions of Government debt, securities through the RSS. This will ensure that there will be complete transparency in debt, M3, etc.

End game

With a BRICS grouping behind an initiative outlined above, a 100 countries will join this system within 30 days. Japan will defect – as will some poorer European countries. OPEC countries will dither – and then join. Singapore and Malaysia may also dither for some time – but will finally join. Most of Africa, South America and Asia will sign up.

With US$6 trillion amongst the BRICS, Japan, ASEAN and Africa, the Third currency Bloc can give a huge financial stimulus to the global economy. Poorer countries can jump start industrialization – and massive orders for high tech equipment can be placed with Japan, EU and USA to jump start their economies.

Bretton Woods – What they wont teach or tell you …

Posted in Business, Current Affairs, Environment, European History, Gold Reserves, History, Media, Uncategorized by Anuraag Sanghi on October 8, 2008

Prequel to Bretton

Keynes’ first book that gained him some following in the world of economics was the ‘Indian Currency And Finance‘. This work examined in significant detail the workings of the Indian currency system. The Indian colonial currency system was anchored to the British pound – and various other local Indian currencies were in use – and even legal tender in large parts of India.

G5 will take on G8

G5 will take on G8

Thus there was always great pressure on Britain to keep the British pound on gold standard – as there was always the option for the common citizen to use coinage from other kingdoms and princely states. In 1900, the British colonial Government tried to enforce circulation of British sovereigns in India – which failed.

Of course, gold importation into India was severely restricted. The gold blockade against India was effective as the major gold production centres were under Anglo Saxon occupation (Australia, Canada, USA, South Africa, Rhodesia, Ghana, etc.).

The Birth Of Bretton Woods

As WW2 was winding down, the Anglo Saxon Bloc went ahead and devised the Bretton Woods system. This system was a copy of the Indian currency system – where instead of the British pound, the American dollar became the Index currency.

Instead of milking only India, the Anglo Saxon Bloc could now milk the whole world. Keynes noted how America when dealing ‘her dependencies, she has herself imitated almost slavishly, India.’ So, when the time came, it took very little time for the US to scale the Indian currency model on the rest of the world.

The success of Bretton Woods-I depended on blockading India from buying gold – which was effectively done by Morarji Desai. (I wonder why the ungrateful Anglo Saxon Bloc has not made a statue of Morarji Desai at Mount Rushmore). He has after all been the single biggest contributor to their prosperity for the last 50 years.

What was Bretton Woods

The world stamped their approval on Bretton Woods.

As per the agreement, all countries of the world would use the dollar as the index currency – for international trade and foreign exchange reserves and for nominal exchange rate fixation. This system allowed the USA to print ‘excess’ dollars. These ‘excess’ initially in limited quantities, but soon at an accelerating pace. Today the USA has flooded the world (and the USA markets with more than US$50 trillion) of excess currency. The housing bubble, the M&A frenzy, the credit crisis are by products of this printing of dollars. With these excess dollars, the US consumers and others bought what they wanted – and US went ahead and printed some more dollars.

Bearing the dollars cross

Bearing the dollar's cross

Behind Bretton Woods – Gold

If the Bretton Woods system was defective, unfair, weighted et al, why was it accepted? Why did the world believe that only the Anglo-Saxon Bloc could deliver.

Why?

In 1944, the Anglo Saxon Bloc (countries, colonies and companies) controlled more than 90% of gold production and reserves. The largest private gold reserve in the world, India was still a British colony. Hence, it was fait accompli.

The Cornering Of Gold Supplies

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

Who paid for the dollar hegemony

Who paid for the dollar hegemony

Bretton Woods – Broken Promises

The promise of the Bretton Woods system was stability. USA promised the world that they will redeem the US dollar for gold – at a rate of US$35. Anyone could (except Indians and Americans) buy an ounce of gold from the USA for US$35 – managed by the the London Pool system. Within 20 years, the first promise was broken. Redemptions of dollar for gold to individuals was stopped in 1968 (March15th).

The Bretton Woods system worked for 20 years because Indians were not allowed to buy gold. India’s finance minster during that crucial period, Morarji Desai, (allegedly on CIA payroll during Lyndon Johnson’s Presidency 1963-1968), presented a record 10 budgets, between February 1958, up to 1967.

His break with Indira Gandhi began when the Finance portfolio was taken away from him. Morarji Desai’s ban on gold imports allowed the sham of Bretton Woods to continue for 20 years. His adamant attitude on gold cost the government popularity and electoral losses – and the Indian economy and Indians much more. Was it a co-incidence that many of the RBI functionaries later got (and even now) plum postings at LSE (IG Patel) and BN Aadarkar (IMF)?

The Bretton Woods Twins

Bretton Woods also gave rise to the the Bretton Woods twins (the IMF and the World Bank) which are run and managed by the Anglo Saxon countries. The ABC countries, their client states like Japan, OECD, etc. have 65% of the voting rights. With this huge voting majority, less than 5% of the world’s population (of the ABC countries) decide how 95% of the world lives.

The Bretton Woods twins (the IMF and the World Bank) been significant failures. Aid (spelt, ironically, very similarly to AIDS) projects are approved – which are tied to imports from these Anglo Saxon countries.

Bretton Woods Fraud

The Bretton Woods system was technically created by more than 700 delegates from the 44 allied nations. But the match was fixed.

It was designed by the Anglo-Saxon countries (America, Australia, Britain, Canada), for the benefit of the Anglo Saxon countries. Notice how much Britain resisted and finally did not join the European Currency Union. This system has swamped the world with accelerating inflow of dollars (American, Australian, Canadian) and British pounds. Producers and exporters are left with vast reserves of a depreciating currencies.

Nixon Chop And Bush Whack

From the Nixon Chop to the Bush Whack final months of Dubya’s Presidency, the Bush Family has been in the Presidency for 12 years of the 37 years. And in positions of lesser power for the entire period. George Bush Sr. was the US representative to the UN during the Nixon era – when Nixon made his infamous remarks to Kissinger about the ‘sanctimonious Indians’ who had pissed on us (the US) on the Vietnam War’. George Bush Sr. was also the US Vice President during the 8 years of Reagan Presidency.

The bend in the flow

The bend in the flow

During these 37 years – between the Nixon Chop (1971) and the Bush Whack (2008), the world has changed significantly.

The Nixon Chop

On August 15th, 1971, President Nixon after a two day huddle with 15 advisers at Camp David, delivered the Nixon Chop to the world. The Nixon chop (my name for this event), one month after his China breakthrough, cut the convertibility peg of US$35 to gold as US gold reserves were severely depleted.

The French had been regularly redeeming gold for their dollar earnings – and for this ‘perfidy’ the US had not forgiven France. This was much like the pre-WW2 French methodology of devaluation, new peg, old debt for new gold routine which got the US hackles up. Many decades have passed since these redemption by France, and the new French President, Sarkozy believes it is now possible to renew US-French relations again.

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

Can the dollar be fixed?
Can the dollar be fixed?

On August 15th, 1971, the world got the Nixon Chop – where even Governments could not redeem dollar holdings. The dollar was put on float. In little time, dollar value depreciated from US$35 per ounce of gold to US$800 in 1980. Over the next 20 years, through various clandestine methods (check out the Edmond Safra and the Yamashita stories links), gold prices were managed and brought down to US$225 per ounce – but still 80% reduction in value of dollar value. Foreign reserves of poor countries got eroded. It was a gigantic fraud on the world – especially the poor, developing countries. And the fraud continues.

Every Few Years

Every 10-25 years, the world seems to go from one financial crisis to another. Trucks full of economic analysis follow each crisis – and everyone agrees after each meltdown, that there will not be another catastrophe. What the poor (and not so poor) economists don’t see is that the Anglo Saxon bloc with 80% of the world’s gold production in a choke-hold does what it wants.

On December 31st, 1974, nearly forty years after Roosevelt nationalized private American gold stocks, Americans were allowed to invest in gold again. Again Indian liberalization (1991) of gold imports happened a good 17 years after the US laws (1974) were liberalized. I wonder, how that was tied.

And that is what has happened for the last 60 years. Of course, all good (for the Anglo-Saxon Bloc) things come to an end. And so has Bretton Woods – I & II.

The Two Wars Of Robert McNamara

Posted in Current Affairs, Environment, European History, Feminist Issues, History, Media, Uncategorized by Anuraag Sanghi on June 7, 2008

Robert McNamaraIn the beginning

In 1937, this young ‘genius’ (supposedly) scored 800 all correct answers in his GMAT test (reputedly, a first in the history of GMAT) – and joined Harvard Business School. Harvard milked this story to sell its struggling business school. In the next 60 years, (as the urban legend goes) only 3 others scored 800 points – all Indians (confirms IIT, Mumbai website).

During WW2

The young ‘genius’ was Robert S. McNamara (ironically, S. stands for Strange). During WW2, he was a part of the Statistical Control Office. Statistics is what the legendary Edward Deming used to increase production and improve quality during WW2 in the USA. Robert McNamara, Col. Charles B. “Tex” Thornton and 8 others were a team that were in-charge of war transportation and logistics. They made these ‘boring’ jobs glamorous – and used their academic excellence to create an aura around themselves.

Robert McNamara

At Ford Motors

After WW2, this team joined Ford Motors. The Ford PR team promoted them as the Whiz Kids, the American press lionized them, even as Ford’s business results were ordinary. This Ford connection was to prove relevant to McNamara’s activity later, we will see. The Ford in charge of the company was Henry Ford II, a direct descendant of the racist Henry Ford, who bankrolled Hitler and funded research into Eugenics – whose most famous practitioner turned out be Joseph Mengele.

The Kennedy Presidency

In 1961, Robert McNamara became Secretary of Defense under President John F. Kennedy. Kennedy’s presidency was marred by more scandals than any other. Joseph Kennedy, JFK’s father made his fortune from bootlegging, many Wall Street Scams – and reputed shorted the market, which resulted in the Great Depression. On the other side was the inspired leadership of Ho Chi Minh.

Sinh Cung Nguyễn - Ho Chi Minh

The story picks up speed

In 1954, the Viet Minh defeated the French Army at Dienbienphu. Eisenhower outlined the infamous Domino Theory – based on Anglo Saxon paranoia that the whole world was against them (unfortunately, not true) and an assumption that Asia was retarded and incapable of making a suitable political choice – and that the Anglo Saxons knew better. The French handed over their mess to the Americans and walked away in 1956. And thus started McNamara’s War.

Fools Rush In Where Angels Fear To Tread

Kennedy-McNamara turned this into a war. Lyndon Johnson (on advice of McNamara) increased American involvement against the Vietnamese – without permission from the US Congress, which is essential as per US constitution. Then began the lies, duplicity, covert operations – directly monitored by McNamara. No wonder, McNamara boasted that “each hour of testimony requires 3 to 4 hours of preparation.”

The Vietnamese had the support of the Russians and the Chinese. American troops increased to 500,000 in this unconstitutional (and hence, illegal) war. Cost to the USA – more than 200,000 dead or disabled. Cost to Vietnam – incalculable.

What McNamara Learnt From Vietnam

Americans lost the Vietnam War. Against a determined enemy (like the Viet Cong), the technological edge that America had was not very useful. Worse, American technological edge, was only temporary. The experience of the Vietnam War, preyed on McNamara’s mind. The Vietnam War brought home the reality that India and China could raise an army bigger than the entire population of United States.

McNamara’s unique contribution to the Vietnam War was ‘body count’

he was so impressed by the logic of statistics that he tried to calculate how many deaths it would take to bring North Vietnam to the bargaining table … (later) he wanted to know why his reckoning had been wrong, why the huge casualties that he had helped inflict had failed to break the will of the men in Hanoi …

His ruminations about this began at the Americans’ April meeting in Washington, where he, Cooper and General Vesser agreed that casualties did not seem to weigh heavily with North Vietnam …. “Was there any consideration of the human cost in Hanoi as they made these decisions?” McNamara asked. “Is the loss of life ever a factor?” He noted that while 58,000 Americans had been killed, the most authoritative estimate — in a September 1995 article by General Uoc — put the number of Vietnamese deaths at 3.6 million. “It’s equivalent to 27 million Americans!” McNamara exclaimed.

To explain this to himself, he remembered … There were some people to whom life was not the same as to us, he reasoned as he stood one evening in the hotel lobby. (Ellipsis, bracketed text mine).

He was right. Only he could have killed an equivalent of 27 million Americans – and still talk about the value of life, with a straight face. For American neo-colonial objectives.

Against America’s temporary technology superiority, the population superiority that the Indians and the Chinese had was permanent. India’ subsequent rise in technology (with engineering skills in software, pharma, automobiles, etc.) and the Chinese rise in manufacturing proved some of McNamara’s ‘fears’ true. McNamara’s legendary quantitative skills made him a convert to The Population Crisis propaganda.

Lester ThurowThe Population ‘Crisis’ Ideology

You win, we lose.

That is what Lester Thurow proposed in his book, The Zero Sum Game. The ‘rise’ of India and China is a threat to America – and the West? In Anglo Saxon terms, the ‘rise’ of India and China is a zero-sum gain.

If India and China prosper, the West will lose, goes the paranoid thinking. Contributory growth as opposed to supplanting growth is an alien concept in Anglo Saxon strategy. Hence, the theory that population is the biggest problem for India and China – was ‘created’ as a development strategy.

The Ugly American Book Cover

How the Developing World was sold this dud

Initially the Carnegie Endowment and the Ford Foundation worked with USAID, (part of the US Government) to sell this theory – specially to the Chinese and the Indians. Since, there was no ‘apparent’ economic or political interest of the Americans, this paranoid construct was given respect as a theory. This lack of ‘apparent’ self interest also helped the ‘Ugly American’ (The Ugly American, by Eugene Burdick William Julius Lederer) to cover his face.

Next, the American economic aid started coming with the ‘population control’ strings attached. It took a while for the dots to start getting connected. At the first whiff of a scandal, USAID, Ford Foundation and Carnegie Endowments handed over this project to the UN, World Bank and IMF. This gave the Population Control programme, the respect it did not deserve.

Paul EhrlichPaul Ehrlich, Robert McNamara, Club Of Rome – False Doomsdayers

Paul Ehrlich’s The Population Bomb (1960 coincided with the start of Robert McNamara’s World Bank stint. Together, the “smartest man” (Lyndon Johnson’s description of Robert McNamara) and Paul Ehrlich did a hatchet job on this. Economists Herman Kahn and Max Singer (of the Hudson Institute) did come out with a alternative model which disproved this theory. Yet in the midst of the din, the furore and the determined PR push by various UN bodies, the World Bank and the IMF, poor Third World countries never examined this theory critically.

The Western world synchronised and the infamous Club of Rome’s The Limits to Growth predictions were released …”the world would run out of gold by 1981, mercury by 1985, tin by 1987, zinc by 1990, petroleum by 1992, and copper, lead, and natural gas by 1993. The end was nigh” intoned the The Club Of Rome (from Reasononline …). This psuedo-academic report was jointly authored by heavyweights – Donella H. Meadows, Dennis L. Meadows, Jørgen Randers, and William W. Behrens III.Reason Cartton - Paul Ehrlich

The venue for the release of this report was carefully chosen – Smithsonian Institute, to give it an air of solidity and authority. This report itself was released with much fanfare, publicity and PR. Yale economist Henry C. Wallich noted, the quantitative content of the model comes for the authors’ imagination, although they never reveal the equations that they used.”

Economist Julian Simon rubbished this theory and made the famous Simon-Ehrlich US$100 bet – against the population doomsdayers. Julian Simon won the bet. Of course, he may bet either because he believed in the continued dominance of the western mode of exploitation or the inability of the rest of the world to stop this exploitation.

Un Helps?The bottom line was that these economists (the Ehrlich’s, The Club Of Rome, The McNamara’s, etc.) wanted the poor of this world to feel guilty about sex, about electricity, about having cattle, drinking milk and eating food.

Western critics (like critics Hermann Kahn and Max Singer) of the population theory were saying “Why bother? Our technology and military, economic might ensure that they (the poor) never lay their hands on the goodies!”

Population Crisis and The Population Problem

Nothing but re-packaged Eugenics programs of Pre-WW2. Hitler made these programs notorious. Hence, family planning and population crisis and population problem became other names for the same programs that killed more than 10 million Jews, Roma Gypsies and others. The repackaging and reselling was supervised by World Bank – under Robert McNamara.

McNamara’s two wars – on Vietnam and population control (of India and China) have both been a disaster. Strange, that a ‘genius’, supported and backed by the world’s only ‘superpower’ and the largest economy, could not achieve much against backward and developing nations like Vietnam, India and China.

The Population Control Network

Population Problem – Western Paranoia & Eastern Gullibility!

Posted in Business, Current Affairs, Environment, European History, History, Media, Uncategorized by Anuraag Sanghi on January 30, 2008

In 1972, the Club of Rome’s The Limits to Growth (Universe Books) suggested that at exponential growth rates, the world would run out of gold by 1981, mercury by 1985, tin by 1987, zinc by 1990, petroleum by 1992, and copper, lead, and natural gas by 1993. The end was nigh.” – From the Reason website.

Sleepless nights & billions required

Bill Gates cant sleep at night. He is a worried man. He is spending billions (ok … ok … not billions for now … just hundreds of millions) to solve this problem. Ted Turner is equally worried. Ted Turner ‘thinks’ that people will eat people – instead of food, which will become scarce. He has already given away billions – and waiting in line to give away more. David Packard (of Hewlett Packard) was an equally worried man. His foundation has given hundreds of millions each year.

What’s worrying them? Linux? Naah Why worry? Is anyone else making money?. Mobile phones OS. That is Nokia’s problem. Google? They are a long way off. Let them get closer.

So, what is it? It is the thought of all the Asians, Browns and the Blacks in the world having sex. And the children they will have. The Packard family, Bill Gates, Ted Turner are not alone in having the population crisis and the people bomb on their mind.

Kill The Problem At The Root

Before the chemical process for synthesis of chloroquine phosphate (for malaria treatment) was invented, the most popular synthetic compound was quinacrine. Quinacrine fell out of favour as patients did not tolerate quinacrine well and after a course of quinacrine, acquired a yellow complexion. Choloroquine phosphate became the anti-malarial drug of choice.

What happened to quinacrine. The world forgot about it. Except a small Swiss company, Sipharm Sesseln AG. This company was making quinacrine for two Americans – Stephen D.Mumford, and Elton Kessel.

What were these two doing with quinacrine.

They want to change the world with quinacrine – by sterilising women in the Third World.

“This explosion in human numbers, which after 2050 will come entirely from immigrants and the offspring of immigrants, will dominate our lives. There will be chaos and anarchy,” said Stephen Mumford.

They had read Paul Ehrlich’s The Population Bomb. They were worried. Just imagine living with Blacks, Indians, Vietnamese, Banglas, etc!

Urgh! And urgh again! Yech … yech …

How much money did Mumford and Kessel make? Nothing at all! They were true believers – in their own race. They just wanted to use this cheap drug technology to stop reproduction of other races.

They were funded by rich anti-immigration individuals in the US – and they used a untested and unapproved method of sterilisation. When poor women came for health examination (especially pelvic), these two and their associates, injected quinacrine, which causes an internal bodily reaction which impairs subsequent reproduction. This method may also cause cancer, heavy menstrual bleeding, pain and fever. Very soon they notched up impressive numbers – more than 1,00,000 such sterilisations in Vietnam, another 1,00,000 in India, and another 1,00,000-2,00,000 in the rest of the world.

This story won awards. The writer’s name – Alix M. Freedman. When this story broke out on WSJ, there was heat. To certify the safety of this procedure, anti-immigration groups put up a an Indian doctor.

What did the manufacturer have to say about the risk of the product? Sipharm Sesseln AG President Fritz Schneiter told her (Alix M. Freedman) “But it isn’t our role to check if this is safe or not. We aren’t the conscience of the world.”

Where did this madness begin. There are many threads to this story.

One thread …

Robert McNamaraIn the beginning

In 1937, this young ‘genius’ (supposedly) scored 800 all correct answers in his GMAT test (reputedly, a first in the history of GMAT) – and joined Harvard Business School. Harvard milked this story to sell its struggling business school. In the next 60 years, (as the urban legend goes) only 3 others scored 800 points – all Indians (confirms IIT, Mumbai website).

During WW2

The young ‘genius’ was Robert S. McNamara (ironically, S. stands for Strange). During WW2, he was a part of the Statistical Control Office. Statistics is what the legendary Edward Deming used to increase production and improve quality during WW2 in the USA. Robert McNamara, Col. Charles B. “Tex” Thornton and 8 others were a team that were in-charge of war transportation and logistics. They made these ‘boring’ jobs glamorous – and used their academic excellence to create an aura around themselves.

At Ford Motors

After WW2, this team joined Ford Motors. The Ford PR team promoted them as the Whiz Kids, the American press lionized them, even as Ford’s business results were ordinary. This Ford connection was to prove relevant to McNamara’s activity later, we will see. The Ford in charge of the company was Henry Ford II, a direct descendant of the racist Henry Ford, who bankrolled Hitler and funded research into Eugenics – whose most famous practitioner turned out be Joseph Mengele.

L to R - U.S. Army Chief of staff General Maxwell Taylor, Robert S. McNamara and President John F. Kennedy. (Image - Photo: Agence France-Presse -- Getty Images; Courtesy - nytimes.com). Click for larger image.The Kennedy Presidency

In 1961, Robert McNamara became Secretary of Defense under President John F. Kennedy. Kennedy’s presidency was marred by more scandals than any other. Joseph Kennedy, JFK’s father made his fortune from bootlegging, many Wall Street Scams – and reputed shorted the market, which resulted in the Great Depression. On the other side was the inspired leadership of Ho Chi Minh.

The story picks up speed

In 1954, the Viet Minh defeated the French Army at Dienbienphu. Eisenhower outlined the infamous Domino Theory – based on Anglo Saxon paranoia that the whole world was against them (unfortunately, not true) and an assumption that Asia was retarded and incapable of making a suitable political choice – and that the Anglo Saxons knew better. The French handed over their mess to the Americans and walked away in 1956. And thus started McNamara’s War.

Sinh Cung Nguyễn - Ho Chi MinhFools Rush In Where Angels Fear To Tread

Kennedy-McNamara turned this into a war. Lyndon Johnson (on advice of McNamara) increased American involvement against the Vietnamese – without permission from the US Congress, which is essential as per US constitution. Then began the lies, duplicity, covert operations – directly monitored by McNamara. No wonder, McNamara boasted that “each hour of testimony requires 3 to 4 hours of preparation.”

The Vietnamese had the support of the Russians and the Chinese. American troops increased to 500,000 in this unconstitutional (and hence, illegal) war. Cost to the USA – more than 200,000 dead or disabled. Cost to Vietnam – incalculable.

What McNamara Learnt From Vietnam

Americans lost the Vietnam War. Against a determined enemy (like the Viet Cong), the technological edge that America had was not very useful. Worse, American technological edge, was only temporary. The experience of the Vietnam War, preyed on McNamara’s mind. The Vietnam War brought home the reality that India and China could raise an army bigger than the entire population of United States.

McNamara’s unique contribution to the Vietnam War was ‘body count’

he was so impressed by the logic of statistics that he tried to calculate how many deaths it would take to bring North Vietnam to the bargaining table … (later) he wanted to know why his reckoning had been wrong, why the huge casualties that he had helped inflict had failed to break the will of the men in Hanoi …

His ruminations about this began at the Americans’ April meeting in Washington, where he, Cooper and General Vesser agreed that casualties did not seem to weigh heavily with North Vietnam …. “Was there any consideration of the human cost in Hanoi as they made these decisions?” McNamara asked. “Is the loss of life ever a factor?” He noted that while 58,000 Americans had been killed, the most authoritative estimate — in a September 1995 article by General Uoc — put the number of Vietnamese deaths at 3.6 million. “It’s equivalent to 27 million Americans!” McNamara exclaimed.

To explain this to himself, he remembered … There were some people to whom life was not the same as to us, he reasoned as he stood one evening in the hotel lobby. (Ellipsis, bracketed text mine).

He was right. Only he could have killed an equivalent of 27 million Americans – and still talk about the value of life, with a straight face. For American neo-colonial objectives.

Against America’s temporary technology superiority, the population superiority that the Indians and the Chinese had was permanent. India’s subsequent rise in technology (with engineering skills in software, pharma, automobiles, etc.) and the Chinese rise in manufacturing proved some of McNamara’sLester Thurow ‘fears’ true. McNamara’s legendary quantitative skills made him a convert to The Population Crisis propaganda.

The Population ‘Crisis’ Ideology

You win, we lose.

That is what Lester Thurow proposed in his book, The Zero Sum Game. The ‘rise’ of India and China is a threat to America – and the West? In Anglo Saxon terms, the ‘rise’ of India and China is a zero-sum gain.

If India and China prosper, the West will lose, goes the paranoid thinking. Contributory growth as opposed to supplanting growth is an alien concept in Anglo Saxon strategy. Hence, the theory that population is the biggest problem for India and China – was ‘created’ as a development strategy.

The Ugly American Book CoverHow the Developing World was sold this dud

Initially the Carnegie Endowment and the Ford Foundation worked with USAID, (part of the US Government) to sell this theory – specially to the Chinese and the Indians. Since, there was no ‘apparent’ economic or political interest of the Americans, this paranoid construct was given respect as a theory. This lack of ‘apparent’ self interest also helped the ‘Ugly American’ (The Ugly American, by Eugene Burdick William Julius Lederer) to cover his face.

Next, the American economic aid started coming with the ‘population control’ strings attached. It took a while for the dots to start getting connected. At the first whiff of a scandal, USAID, Ford Foundation and Carnegie Endowments handed over this project to the UN, World Bank and IMF. This gave the Population Control programme, the respect it did not deserve.

Paul Ehrlich, Robert McNamara, Club Of Rome – False Doomsdayers

Paul Ehrlich

Paul Ehrlich

Paul Ehrlich’s The Population Bomb (1960 coincided with the start of Robert McNamara’s World Bank stint. Together, the “smartest man” (Lyndon Johnson’s description of Robert McNamara) and Paul Ehrlich did a hatchet job on this. Economists Herman Kahn and Max Singer (of the Hudson Institute) did come out with a alternative model which disproved this theory. Yet in the midst of the din, the furore and the determined PR push by various UN bodies, the World Bank and the IMF, poor Third World countries never examined this theory critically.

The Western world synchronised and the infamous Club of Rome’s The Limits to Growth predictions were released

the world would run out of gold by 1981, mercury by 1985, tin by 1987, zinc by 1990, petroleum by 1992, and copper, lead, and natural gas by 1993. The end was nigh” intoned the The Club Of Rome (from Reasononline …).

This psuedo-academic report was jointly authored by heavyweights – Donella H. Meadows, Dennis L. Meadows, Jørgen Randers, and William W. Behrens III.Reason Cartton - Paul Ehrlich

The venue for the release of this report was carefully chosen – Smithsonian Institute, to give it an air of solidity and authority. This report itself was released with much fanfare, publicity and PR. Yale economist Henry C. Wallich noted,

the quantitative content of the model comes for the authors’ imagination, although they never reveal the equations that they used.”

Economist Julian Simon rubbished this theory and made the famous Simon-Ehrlich US$100 bet – against the population doomsdayers. Julian Simon won the bet. Of course, he may bet either because he believed in the continued dominance of the western mode of exploitation or the inability of the rest of the world to stop this exploitation.

Un Helps?The bottom line was that these economists (the Ehrlich’s, The Club Of Rome, The McNamara’s, etc.) wanted the poor of this world to feel guilty about sex, about electricity, about having cattle, drinking milk and eating food.

Western critics (like critics Hermann Kahn and Max Singer) of the population theory were saying “Why bother? Our technology and military, economic might ensure that they (the poor) never lay their hands on the goodies!”

Popuation Crisis and The Population Problem

Nothing but re-packaged Eugenics programs of Pre-WW2. Hitler made these programs notorious. Hence, family planning and population crisis and population problem became other names for the same programs that killed more than 10 million Jews, Roma Gypsies and others. The repackaging and reselling was supervised by World Bank – under Robert McNamara.

McNamara’s two wars – on Vietnam and population control (of India and China) have both been a disaster. Strange, that a ‘genius’, supported and backed by the world’s only ‘superpower’ and the largest economy, could not achieve much against backward and developing nations like Vietnam, India and China.

What Is The Impact

Sanjay Gandhi at the Maruti factory before nationalization (Image courtesy - outlookindia.com.).

Sanjay Gandhi at the Maruti factory before nationalization (Image courtesy - outlookindia.com.).

The Chinese Communist dictatorship rammed this policy down the poor Chinese throat – and still does. Vietnam has made its citizens into guinea pigs. India was ideologically committed to this and practically did little. Call this ambivalence – except for a brief while during the 1975-1977 Emergency. During the Emergency phase, Sanjay Gandhi in India very much did, what had happened in the US and Europe earlier under the Eugenics laws. Forcible sterilisations and human rights abuses. The ethical ramifications are real and present.

The greater damage in India (and in the rest of the world) is the disrespect it has created for humanity amongst the administrative class and the advantaged. The population problem is ‘others’ – and western altruistic ethics and racist ideologies sanction solutions for the ‘greater good.’ Indian ethical system and constructs approve of purusharth पुरुशार्थ – धर्म dharm (righteousnss) arth, अर्थ (wealth), काम kaam (desire, including sexual desire) and मोक्ष moksh (deliverance, freedom, liberty at various levels, political, social, from life and death, from death by a thousand cuts) and disapproves violence against the living as they are vaasudevaiya kutumbakam (all living are God’s creation). The other damage is the to the self esteem of country.

Of course, once a population gets on this train, it is difficult to get off. In another 25-40 years, China will face the reality of slowing population growth, an aging population, increased health costs, increased capital spending to increase productivity. In short, the insurmountable problems that Western societies and Japan are wrestling with.

In India three aspects have kept this policy from being implemented. Children are seen as nandlala नंदलाला and balagopal बालगोपाल (instead of naughty children controlled by satan, shaitan) – popular expressions of respect for a new life. Combine this with the democratic backlash against the population policy in India in 1977 elections, and you have a case of lost political will. What has driven the final nail in the coffin is the healthy disrespect (some would even say contempt) for western ideas that non-English speaking Indians (which is more than 90% of India) have for western ideas.

The Economics of Population Control

The population theory does not stand up to any economic logic. Humans beings are the biggest factor in the production process. How can people become a problem? More people mean more production, bigger markets, lower costs, larger tax base, et al. False data, false assumptions, false propaganda (deliberate use of an oxymoron to make a point) have all been used to ‘sell’ this theory. Lower population growth is increasing health costs, aging populations, decreasing competitiveness. The Western societies were able to progress over the last 100 years at the expense of developing world.

The fight between these western proponents and western critics of the population control theory was not about equity or about ecology. The proponents were working hard to ensure that the poor did not demand or ask for resources.

The critics (cynics) were in fact saying that the poor were too weak to challenge the powerful rich countries – and what the west must do to keep them weak.

The Green Arguments & Population ControlIndian Cows Fart Too Much

By the later 1990’s the Green lobby, global warming, Ozone layer, environment had become an issue. The Kyoto protocol negotiations began. As usual, the Western world (led by the Anglo Saxon Bloc) dumped this problem onto the developing world. Secure a greener earth – at the cost of the poor.

Cattle in India started getting blamed for global warming (Indian cattle fart too much!). UN and FAO got involved in this psuedo scientific study.

Global Warming Is A 3rd World ProblemWhile 10% of the earth’s population, in the developed world (largely the western world) does not adequately price or cost the ecological damage they cause, into their production, the post facto price is borne by the rest of the world (90% of the world population). This damage is then inversely blamed on increasing population of the under-developed world!

An exquisite instance of acrobatics in inverting logic.

Amartya Sen, Gandhiji, Food, Population and Greed

In a landmark study in famines, economic policy and food availability, (by) Amartya Sen says,

“There has been a good deal of discussion recently about the prospect of food supply falling significantly behind the world population. There is, however, little empirical support for such a diagnosis of recent trends”. Further, he goes onto say, “… famines can take place without a substantial (decline in) food availability decline is of interest mainly because of the hold that food availability approach has in the usual famine analysis…” (Italics and ellipsis mine).

Gandhiji had something to say – “Earth provides enough to satisfy every man’s need, but not every man’s greed”.

The West in its greed wants to leave nothing for others – and this entire population conspiracy has been invented so that the victim delivers himself on sacrificial altar of western greed.

History of Population Control – Many Fathers

Another thread. Malthusian stories and Social Darwinism.

Population pressures leading to destruction and chaos was still-born concept – propagated by Thomas Robert Malthus from (yes, you guessed it right), an Anglo Saxon economist whose theories have remained just that – malignant theories. One of the landmark studies on this is by Paul Jalsevac in his study, “The Inherent Racism Of Population Control.”

But more insidious was the Eugenics program. This psuedo-scientific program was initiated, yes again, by another Anglo Saxon, Sir Francis Galton (related to Charles Darwin, the British co-originator of the Evolution Theory). The Eugenics programme was designed to create a ‘superior’ race of people – and ‘eliminate’ defective people and births. It gained many high profile adherents – and finally responsible for many medical, psychiatric and political abuses.

Eugenics In The USA

It attracted big ticket backers. John Harvey Kellogg (of Kellogg cornflakes) was an early sponsor and formed a “partnership” with the Race Betterment Foundation. Andrew Carnegie (1835-1919) established the Station for Experimental Evolution at Cold Spring Harbor, Long Island, in 1904 – a centre for Eugenic research. In 1937, before, the start of WW2, when it became apparent that Hitler had hijacked Eugenics and where Eugenics was going, the Carnegie Foundation changed direction – and renamed the Eugenics Record Office to Genetics Record Office. After WW2, in 1952, the USA needed some ‘special weapons’. The Carnegie Foundation stepped in to assist the research. What were these ‘special weapons’ – new birth control methods.

Henry Ford was a supporter of Eugenics – and one of the most notorious Eugenics practitioner was Michael Teitelbaum – who worked with the Ford Foundation till the 1970’s – shaping population policy matters for world consumption. Clarence J Gamble, (of Proctor & Gamble) fame, advocated population control amongst the poor, Puerto Ricans, Negros – as they were a problem. The wives of Edward Henry Harriman, (financier and railway tycoon) and HB Dupont, were some of the others who participated in the Eugenics projects.

Today, the newly renamed Planned Parenthood Federation of America receives funding from the US Government, billionaires like the Hewlett family and the Packard family, Ted Turner of CNN fame, Bill Gates of Microsoft amongst others.

Three generations of imbeciles are enough

These abusive actions were possible due to legal sanction by the US Courts. A celebrated Supreme Court judge, Oliver Wendell Holmes, decided that

“…the public welfare may call upon the best citizens for their lives. It would be strange if it could not call upon those who already sap the strength of the State for these lesser sacrifices …” (Italics and ellipsis mine)

of getting sterilised, lobotomised, committed to mental asylums on flimsy grounds, become guinea pigs for dubious medical research.

This judgement’s admirers were found all the way till Germany. Was Oliver Wendell Holmes very far from Nazi Germany? Not if you consider the Binding-Hoche study (Karl Binding was a lawyer and Alfred Hoche, a doctor). The Binding-Hoche study suggested that the German state had already lost its best people during WW1 – and hence the country was filled with ‘human ballast’. To remedy this situation, they suggested that these ‘inferior elements’ should be eliminated – much like what the American Chief Justice said. During the Nuremberg trials, the Nazis did cite the US practices of sterilisations, lobotomies, euthanasia as a defence.

Yes, instead of acting as parens patriae, which would be the first duty of the court, the US Supreme Court colluded with the executive to deny basic rights to the incapable, in the land of the free. This was much like slavery was approved by the US Supreme Court in the Dredd Scott vs Sandford case. Chief Justice Taney not only ruled that slavery was legal, but barred slaves from approaching the US Supreme Court.

Eugenics In Europe

The most notorious on Eugenics in Europe was Hitler who killed 60 lakh Jews and another 40 lakhs of Gypsies and assorted segments of the population. Montagu Norman, the Chief Of Bank England, who supervised the economic drain from India was another famous follower of Eugenics. Much before these practitioners of Eugenics, were others. Such racist concepts were tried by Germany – in Paraguay. Germany decided to breed a race of superior White Germans, in the colony of Nueva Germania. Heading the Nueva Germania project was Elizabeth Nietzsche – brother of Frederick Nietzsche.

In Britain, Julian Huxley, grandson of Thomas Henry Huxley, first head of UNESCO, brother of Aldous Huxley, joined the population propaganda machine. Julian Huxley called himself a ‘scientist’ and

advocated a much greater use of … Eugenic Insemination, … deep-frozen sperm banks containing donations by eminent men, Nobel Prize Winners … from which a prospective mother could choose … Huxley hoped that many of the users of such a sperm bank would opt for intelligence and he calculated that if the mean IQ of the population could be raised by as little as 1.5 per cent this would lead to a 50 per cent increase in the number of people with an IQ of 160 or more …” (from the galtoninstitute website).

This kind of psuedo-science was used by UN and the various population control propagandists to further their agenda.

This Doesn’t Happen Now

A law inspired by Eugenics was in force and utilised in the state of Orgeon, till 1980. 33 states in the USA approved eugenics laws during 1900-1925. An estimated 60,000-1,00,000 people were forcibly sterilised using these laws. Switzerland repealed forced sterilisation laws against the Romani Gypsies only in 1972.

New names for old ills continue. The new exercises in this could be the SARS and the Bird Flu. A few humans or birds die (due to respiratory complications) and entire continents are devastated. Is this another form of ‘conditioning’ for future bio-terrorism or bio-warfare? These new kinds of global hysteria use ‘neutral’ bodies – like the UN and World Bank to whip up fear, rumours and over reaction.

You still don’t believe that this happens even now?

The largest donors to the population control organisations in the last 10 years are (hold onto you chair or whatever) Bill Gates (of Microsoft-Windows fame), Ted Turner (of CNN-Time Warner) and David & Lucille Packard Foundation (co-founder of Hewlett Packard). It is re-run of the same story. Population Control is funded by the rich (in the USA) as they feel threatened by the poor of this world, especially if the colour of the poor is different.Nandan Nilekani

Post Script

On February 16, 2008, I read a post in Business Standard, one of India’s leading business newspaper. It carried a preview of a book by Nandan Nilekani, a business leader and director of Infosys. Nandan Nilekani says, his book traces (apart from other subjects) how India has “gone from seeing population as a burden to population as a source of human capital.” That is the good news.

Farcically, in the same breadth, Nandan also overestimates the importance of English. Is he implying that without English, India would have been backward like – China, Japan, Germany, Russia, Italy, Korea. In fact dear Nandan, show me one country that has become significant using some other country’s language – in the last 4000 years of history. Look again Nandan, Take A Secondlook. By 15th August, 2008, Nandan Nilekani, was invited to write for Economic Times. This time around, Nandan did not make too much on the importance of English language. Attaboy, Nandan!

China Takes Secondlook At One Child PolicyThe tide is turning. One month after this post(dated Jan 30th, 2008), China decided to take a secondlook at their population policy (on Feb 27th, 2008, link embedded). And on 4th March, Economic Times, India’s leading daily informed,“China takes second look at one-child rule, 4 Mar, 2008, 0231 hrs IST, AGENCIES.” In case the link does not work, click here China Takes Secondlook At One Child Policy.

An alarmed USA Today, wrote China ‘Considers changing one-child policy’. But the New York Times re-assured its readers that “this change the country’s one-child-per-couple family planning policy would not change for at least another decade.” The International Herald Tribune also repeated this reassuring report. The China Daily, at its website also released a similar report.

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