Retail FDI – The Real Dangers

With hands tied behind their backs, Indian retail is being asked to ‘compete’ with Big Retail. Like Subhiksha, Big Retail will fail – unless funded by RBI or US Fed.

Can an Indian bania fight against Ben Bernanke's printing press; churning out paper-dollars 24x7, for US corporations to buy the world. | Cartoonist - Clay Jones. Published 01/26/11 by the Fredericksburg Free-Lance Star (fredericksburg.com); source and courtesy - civilwar.org | Click for larger image.

Dominated by banias, small shopkeepers are notorious for cheating customers through adulteration and fiddled weighing scales. They are also notorious for evading sales tax and income tax. That’s why the bania is widely despised (although it is wrong to tarnish all with the same brush).

Yet we have the astonishing spectacle of several political parties and state governments supporting the crorepati bania against foreign retailers, whose alleged crime is that they will lower prices so drastically as to wipe out small shopkeepers. If indeed, foreign retailers will reduce prices dramatically–a highly exaggerated hope-this would be a fabulous blessing for the aam admi, struggling with inflation. So, politicians who oppose foreign retailers are promoting the aam bania against the aam aadmi. This is all phrased in socialist rhetoric, but amounts to backing rich traders against poor consumers. (via Swaminomics : SA Aiyar’s blog-The Times Of India).

Have no data – but will caricature

What data does Swaminathan A. Aiyer (SAA) have when he says ‘small shopkeepers are notorious for cheating customers’?

Swaminathan A. Aiyer (SAA) is actually attempting a simple colonial-socialistic demonization of the Indian entrepreneur. All but forgotten, SAA is trying to revive this propaganda image. The corner banias are usually more ethical than Big Corporations – especially looking at new, post-liberalized companies in media, power, finance, food, electronics, mining, .

Moreover, it is always easier to shift my business from an unethical bania than from the few monopolistic unethical companies in the new-era oligarchy.

Small business has disappeared from the economic landscape of the G20 countries - except India. How can the 'small' guy be allowed to survive? | Cartoonist - Terry Wise; source and courtesy - cartoonstock.com | Click for source image.

Hoax Claims

The other claim that modern retail makes is lower prices for consumers.

But, all major existing retailers in India have not been able to lower prices to the consumers in any manner, whatsoever.

Why assume foreign companies can do it?

Foreign retail has not benefitted the consumer or the farmer in the West.

Why assume that this miracle will happen in India?

One thing that unites both the proponents of foreign investment in multi-brand retailing and their disparate opponents is the conviction that foreign capital will introduce a spectacular degree of efficiency in a largely chaotic sector. It is recognized, and has been recognized since the NDA was first excited by the idea, that bulk buying and a streamlined distribution channel will help lessen the huge ‘farm to fork’ differential. That a transformation of retail into a part of the modern, organized sector will have a multiplier effect is also not seriously disputed. (via Right & Wrong : Swapan Dasgupta’s blog-The Times Of India).

With their hands tied behind their backs, Indian retail is being asked to 'compete' with big retail. Like Subhiksha, Big Retail will fail - unless funded by RBI or US Fed. | Cartoonist - Clay Jones. Published by the Fredericksburg Free-Lance Star (fredericksburg.com); source and courtesy - civilwar.org | Click for source image.

Foreign more problematic

Many commentators talk of how Indian business is afraid of competition. And wants protection.

The real story is that US corporations with access to endless dollars from the US Fed can easily kill Indian retailers.

And that is a real fear and a real problem.

Bad Idea

Giant Retail will wipe out 50 million entrepreneurs and convert them to obedient employees.

This basic change from an entrepreneurial India to employee-India is the dream that the Desert Bloc has – and with the help of our Desert Bloc polity, will attempt. The change from entrepreneur-to-employee is something that will help in the creation of Big Business and the Big State.

As it has happened in the West.

Worst Idea

As consumers we may get a few years of lower prices – financed by RBI /US Fed, but finally we will pay the price. We, the Indian farmers and the Indian consumers.

Make no mistake about that.

War On Terror – Desert Bloc Style

One 9/11 Tally: $3.3 Trillion By Shan Carter and Amanda Cox; Published: Sep. 8, 2011 | Click for larger image. | Short URL for Source - http://goo.gl/YmjzV

Bush, CIA, FBI did not have to convince anyone of the need for war, killing, death and destruction. Frenzied activity by people and media to convince each other did the job.

Convince each other

A reading or search on the internet, about Saddam Hussein’s killings and genocide, reveals feverish discussions. At one internet forum after another forum, participants were quoting a non-existent report to convince each other.

Based on cyber-fluff. Circular references. At the centre of which, is a cyber vacuüm.

शून्य. Nul. Zéro. Null. μηδέν. ゼロ. нул. Cero.零. Darkness. Nothing. Zilch.

Saddam’s war with Iran, at the behest and encouragement of the West, was painted as ‘human-rights’ violations. Death of soldiers in any war, cannot be equated to civilian casualties. Soldiers are going to war, armed to the teeth, with eyes wide open, knowing fully well, that it is a case of kill or get killed.

The alphabet soup behind this

Bush, CIA, FBI did not have to convince anyone. Frenzied activity by people to convince each other of the need for war, killing, death and destruction did the job.

Wonder who created these viral and circular links, (now dead, but live at some time) on the web, without any source or existence. Which of the American agencies – CIA FBI, NSA, DEA, DOE, Bureau of ATF, DIA, NRO, NIMA, CTC. NPC. INR. DOE Intel., Army Intelligence et al?

But let us assume that vox americanum populi, vox dei (Voice of the American people is the voice of god), and accept the figure of less than 600,000 deaths under Saddam Hussein.

Ten years later

After the bombing of twin towers, on September 11, 2001, there has been much official sentiment and sanctity.

How much of that is real and balanced?

Note the racial undertones to the comments? (Cartoon by Ted Rall; dated 2011-09-16; Source and courtesy - rall.com). Click for larger images.

Slice of life

Three images capture an ‘objective’ and factual way of looking at the last ten years.

One was an ‘infographic’ presentation by New York Times (fig.1), that has been doing the rounds on the internet.

The slick presentation using an attractive and thin graphic, calculated the US$ trillions that these wars are costing. As though, it was American money, to start with.

Iraqi money and Iraqi oil was being used to kill Iraqi civilians – and then an accounting done on that money, as though it was American money. The Nordhaus report, used by the nytimes.com, says,

Iraq’s oil resources could satisfy current U.S. oil imports for almost a century.

Real people

Two Western estimates, of deaths in Iraq, (extrapolations from Lancet/John Hopkins estimate), and the statistical report by ORB (Operations Research Business) used a statistical sampling method.

A figure of one million Iraqi and Afghan civilian casualties has been arrived at by this estimation method. An estimation method commonly used and usually accepted.

Documented and cross verified reports by the Iraq Body Count, count more than a 100,000 civilian deaths in Iraq. To all those believe that only the Body Count report is good enough, I wonder why they don’t use the same standard for figures about deaths due to Saddam’s atrocities.

Whatever number one may chose, it is important to use the same standard. Saddam, it seems was a lesser evil.

Saddam killed far fewer Iraqis than the Americans have.

White House Trophy Room? (Cartoon by Herbjorn Skogstad | Published May 2011 | Source and courtesy - cagle.com) | Click for a larger image.

Does it matter

Of the nearly 1 million undocumented and estimated Iraqis dead or the documented 100,000 Iraqis dead, the number does not matter. Both the numbers, are huge numbers.

Not that this is the first time. After killing 20 lakh Vietnamese, the American Empire (and its respectable mouth-piece, Time magazine) only counts its own 60,000 killed. In Iraq, after 10 lakh dead Iraqis, the US Empire counts, its’ own less than 5,000 dead.

It is this part of the behaviour that is most revealing. Is self absorption an imperial trait?

Imperial Traits

The British Empire till well after its death, continued (s) to remain self-absorbed. As though other people did not exist, do not matter. Twentieth century, British writing about India, had deteriorated to pure drivel. Best epitomised by Chirol – Sir Ignatius Valentine Chirol (28 May 1852 – 22 October 1929).

In case of Pax America, in an earlier Cold-War era, this self-absorption was marked by books like The Ugly American – which sold 5 million copies, in a nation of some fifty million households. Since, the writing of The Ugly American, the self-absorption has only deepened.

This self-absorption screams through these three images linked to this post.

Image no.1 – About my money. It was Iraqi oil and Iraqi money, by the way. A message to David Leonhardt, the Washington Bureau Chief of nytimes.com, evoked no response.

Image no.2 – Talks about my social position. If every month, hundreds of people, are blowing themselves up, there has gotta be a bigger problem, than your social position. Stop looking at Muslims. Look at yourself.

Image no.3 – About my trophies.

Do more words and more bombs, make the War on Islam, OK?

What to do

Possibly, all this killing and war is my problem, in my mind. Who is to blame, if I was brought up, believing,

ईशावास्यमिदं सर्वं यत्किञ्च जगत्यां जगत्।

तेन त्यक्तेन भुञ्जीथा: मा गृध: कस्यस्विद्धनम्।।

(God resides in all; All this here, is permeated by Brahman [The Supreme Soul], whatever there is in this world. Enjoy things by renunciation. Do not covet others’ wealth. – Ishopanishad; Shloka 1; note alternate translation comment below.).

How I wish, I could erase this shloka from my head!

Related articles

• The Taking of Iraq (quicktake.wordpress.com)
• Wars By Desert Bloc (behind2ndlook.wordpress.com)
• Faction Feuds of Desert Bloc – Should India Get Involved? (behind2ndlook.wordpress.com)
• Terrorism, waterboarding and CIA censorship: Ex-FBI agent Ali Soufan talks to The Star (thestar.com)
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Adiga’s Vacuum Theorem

Arvind Adiga (hereafter Adiga-bhau), ‘winner of the £50,000 Man Booker prize’ makes a complete hash in a lengthy book review. Reading Arvind Adiga for the first time, I am surprised at the man’s obtuseness. Adiga writes,

Post-British Raj India had a difficult choice - which political system to choose! (Cartoon by RK Laxman; courtesy - timesofindia.com). Click for larger image.

French gives us vivid sketches of the peculiar, gifted men and women of the Gandhi-Nehru dynasty – India’s Julio-Claudians – who governed the country until the 1990s, managing simultaneously to keep India democratic and united, while running its economy into the ground.

French follows the political sketches with portraits of the Indian businessmen who struggled to survive in the socialist economy that their politicians made for them – and who then burst free, with entrepreneurial vigour, when these controls were eased in the 1990s.

To keep falling for this promise, election after election, millions of Indian voters must be utter morons – and not the smart budding world-conquerors that French describes them as. (via India: A Portrait by Patrick French – book review | Books | The Observer).

British Raj – The Golden Age

If the Gandhi-Nehru dynasty were responsible for ‘running its economy into the ground’ is Adiga-bhau implying that the dynasty started with a prosperous and well-run Indian economy – which the dynasty ruined.

I wonder which history book Adiga-bhau reads? Which school taught Adiga-bhau this history? And if it just bad English, who decided to give him that Rs.30 lakh award?

From an India, which was a ship-to-mouth basket case, in 1950, to an emerging power, in 2010, seems to be have been a facile and an easy experience – and little credit is given to Indian political leadership for managing the post-colonial Indian system.

In this case, is it because Adiga-bhau forgets the state of Indian economy in 1950-1980?

At least in the 60s and the 70s, India was long on promise and short on performance. To imply now that the British Raj was better? Cartoon by RK Laxman. Click for larger image.

Indian businessman. Patriotic …?

Coming to Adiga-bhau’s other point of ‘businessmen who struggled to survive in the socialist economy’ makes me hoot. As in laughter and cackle.

May be Adiga-bhau should keep his computer shut. After all, why take pains to prove himself to be an ignoramus?

Did anyone tell him about the Bombay Plan of 1944? India’s leading industrialists of the time proposed the Bombay Plan, which suggested a major role for the Indian State in independent India. Remember, way back in 1944,

the plan was put together by the who’s who of Indian industry (JRD Tata, GD Birla, Kasturbhai Lalbhai, Purshottamdas Thakurdas and Shri Ram) as well as top technocrats such as John Matthai, Ardeshir Dalal and AD Shroff (Matthai, who drafted the document, later became India’s Finance Minister). It was, in fact, half a Tata team. All three technocrats were working with the Tatas. Thirdly, and most importantly, what made everyone sit up and take notice of the Bombay Plan was its approach. Believe it or not, this capitalist-heavy team advocated government intervention and regulation. Words such as control, licenses and allotment were used in a manner no Indian capitalist has used ever since. Part II came a year later.

Left parties, politicians on the Right, Gandhians – all found fault with the Bombay Plan. But, India’s official planning documents that came out 4 years later in 1948, were very similar to the Bombay Plan.

So, much for business which struggled, Adiga-bhau!

A British War poster of 1939. British war poster of 1939. Just 8 years before independence. British racism and attitude towards 'Brown' Indians was discriminatory. Like this poster displays. Click for larger image.

Soon after WWII

From 1950, Britain still a major economy and a super-power, a victor of WWII, sent its best economists to advise the Indian Government.

They came from the leading Cambridge School, led by the redoubtable Joan Robinson, the keeper of Keynes’ ideological flame – and the group became famous as the Cambridge School. Apart from Cambridge School economists, other leading economists from all over the world came to India.

Long list, Big names

Among them was Harold Laski, of the London School of Economics, and Nicholas Kaldor and John Strachey from Britain. Not a few, but many American economists were sent to India, including Oskar Lange and Michael Kalecki (technically from Poland, but associated with US universities). Prominent among the American group were Neil Jacoby and Milton Friedman.

Apart from the Who’s Who of the world of economics many other big names like Paul N. Rosenstein-Rodan, Arnold Harberger, Richard Eckhaus, Alan Manne, James Mirlees, Ian Little, Charles Bettelheim, Brian Reddaway, Ragner Frisch, Richard Goodwin, Wassily Leontief and Jan Tinbergen – all came to India. Quite a few of these visits were financed by the Ford and Rockefeller foundations.

Many of these economists were neededto ‘sell’ the Indian point of view to the Western institutions like World Bank and IMF. And later the Aid India Consortium.

More than 30 years after this cartoon, solar power is still not competitive. The West controlled technology, financial markets and raw material sources. Plus they had the killing machines like CIA, Mosssad. Just in case you stepped out of line. (Cartoon by Mike Peters; cartoon from the book-cover of SolarGas by David Hoye, published in 1979. Image courtesy - http://jimsbikeblog.wordpress.com) Click for larger image.

Unhappy endings

Apart from the Cambridge School economists, the other big name was the leader of the Chicago School. Milton Friedman.

Unhappy at the reception to his proposals, Milton Friedman went for greener climes. Specifically, Chile.

Chile’s descent into the hands of a military junta, the human rights abuses, the political assassinations are the stuff of a Le Carre novels – except it was all real. And they happened under Milton Friedman’s very nose.

Sad and real, Adiga-bhau!

Neil Jacoby became advisor to another dictatorship – Taiwan.

The summer of hunger and poverty

Joan Robinson, it is claimed, used to say, “The frustrating thing about India is that whatever you can rightly say about India, the opposite is also true.” Joan Robinson felt that in India the ‘problem is so formidable, that the mind boggles at it’.

Was it surprising that ‘more than half the world’s planning models were probably about India.’ And economists remembered Joan Robinson appearing dressed in a saree, at a conference in Europe.

British propaganda poster, promoting the 'special relationship' among Anglo-Saxon Bloc members. Was it possible for Nehru-Gandhi dynasty to confront the Anglo-Saxon Bloc in the 1950s and 1960s. Image courtesy - http://bertc.com. Click for a larger image.

The Ugly American

Post-War Europe itself, went down the way of planned economies – with some hilarious implementations.

Academic disagreement was battened down by threats and violence. Nehru appeared in CIA assassination lists.

It is unclear if it was Stalin’s lukewarm response to Nehru’s overtures or the alleged CIA plot against Nehru in 1955, temporarily Nehru did get close to Eisenhower.

The subsequent killing of Patrice Lumumba, the assassination of Salvador Allende or the ongoing coup in Iran, managed by USA and UK made these assassination fears real. One must not forget, (if one knows), that the price for independence was (and still is) CIA assassination or a regime change by USA.

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

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

The CIA, led by Kermit Roosevelt Jr., and the British intelligence, launched Operation Ajax. Finally, in 1979, the Shah was replaced by the regressive regime of Ayatollah Khomeini, which has taken Iran out of the USA orbit.

The real story, Adiga-bhau!

The Stick … and the carrot

Western aid was tied to India following Western advice. This continued to happen – at least till 1991. For instance, MJ Akbar quotes how American influence was behind Manmohan Singh’s appointment in 1991.

Really, Adiga-bhau!

India’s post-colonial choices were a mix of pragmatism, necessity and accepted wisdom of the times – and Western pressures and influences that are responsible for more than a fair share of guilt in these wrong choices.

This scene from Kolkatta in 1943. Just 4 years before independence. Millions died, like flies, on the streets of Kolkatta, and across Bengal. Is this the economy that the Nehru-Gandhi run into ground?

Insult – but was there injury

Western media and academia conveniently forgets that Western institutions like World Bank, IMF, stampeded India (and Nehru), into some of these bad choices – which the West now claims were India’s own choices in the first place.

For instance, one of the worst choices made by India, tied to World Bank, IMF and US aid, was to follow the infamous population control policy. Blaming Nehru-Gandhi has become an article of faith in modern India.

But is it justified?

Related articles

• Kashmir – How US Supported Pakistan Subversion (quicktake.wordpress.com)
• Indian History – Blind At Birth? (quicktake.wordpress.com)

1971 Bangla Desh War – Why was China quiet?

Why was China militarily neutral in Indo-Pak Wars-1965, 1971? Tibet Card used by Indian Foreign Policy?

Signing of Surrender Document on 16 December 1971 Surrender received by Lieutenant General Jagjit Singh Arora (General Officer Commanding (GOC), Eastern Command) from Pakistani General A.A.K. Niazi. (Photo courtesy - indopakmilitaryhistory.blogspot.com). Click for larger image.

War on two fronts

One of the major reasons why India could take on Pakistan on two fronts – in Bangla Desh and on the Western Front, was because, there was no Chinese action to support Pakistan. China has been positioned as an all-weather friend of Pakistan? So, in the hour of need, China did not lift its little finger to help Pakistan against India?

The Bangla Desh Theatre of war (Graphic courtesy - timesofindia.com). Click for larger image.

China’s inaction

The 1971 Bangladesh War changed world perception of India – leading to Nixon’s famous outbursts. As the tapes show, the US President pushed, prodded and cajoled the Chinese to act against India – to no avail.

China’s puzzling inaction, similar to its inaction in 1965 also, declassified White House Tapes show, in the 1971 Bangladesh War, is rarely analysed in the current India-China narratives.

Indo-Soviet alliance

The answer for 1971 seems to be the dreaded Soviets.

The Chinese dreaded the Soviets. China’s aggressive posturing against Soviet Russia on the border island of Zhenbao-Damanskii had alienated the Russians. Soviet Russia backed off after China was made to pay a price. It was some US show of support to China, that made the Soviets stop from complete bull-dozing of China. This aspect of international politics is rarely analyzed or factored into analysis. But this does not explain 1965-Chinese neutral posturing.

This extract below from The Guardian gives a perspective on the USSR-China-USA relationship.

The Tribune announcing Niazi's appeal for surrender. Niazi's surrender with 1,00,000 soldiers, was the largest surrender received by any general in 20th century. (Picture courtesy - bangladesh-tour.blogspot.com). Click for larger image.

de facto alliance was personally decided by Nixon in August 1969 just as the Soviet Union was preparing to launch a pre-emptive nuclear attack on China. Nixon had decided the Soviets were the more dangerous party and that it was against American interests for China to be “smashed” in a Chinese-Soviet war. “It was a revolutionary moment in US foreign policy,” Kissinger explains. “An American president declared we had a strategic interest in the survival of a major communist country.”

In October 1969, Mao Zedong was so convinced war was nigh, he ordered all Chinese leaders to disperse around the country, except for the indispensable Zhou Enlai. Kissinger says that it was only Moscow’s uncertainty about America’s response that led the Soviets to postpone the project. Soon after, Kissinger, as Nixon’s national security adviser, engaged in the secret negotiations that led to the American president’s meeting with Mao in 1972, an event that astonished America’s enemies and its friends. (via On China by Henry Kissinger – review | Books | The Guardian).

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• The respect Pakistan deserves – and does not get (quicktake.wordpress.com)
• Managing China (quicktake.wordpress.com)
• Kissinger on India-China War of 1962 (quicktake.wordpress.com)
• 1971 Bangla Desh War – Why was China quiet? (quicktake.wordpress.com)
• Turnaround In Tashkent (2ndlook.wordpress.com)
• Dealing With Pakistan (quicktake.wordpress.com)
• Af-Pak – The Coming Oil Bottleneck (2ndlook.wordpress.com)
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• Commentary on Indian Foreign Policy (quicktake.wordpress.com)
• A task that’s remained unfinished for 40 years (thehindu.com)

• Manekshaw’s 1971-war strategy questioned (indianmilitarynews.wordpress.com)
• On China by Henry Kissinger: review (telegraph.co.uk)
• Henry Kissinger on China (nytimes.com)
• On China by Henry Kissinger – review (guardian.co.uk)
• On China by Henry Kissinger – review (guardian.co.uk)
• Kissinger fails to answer key question – Jasper Becker (chinaherald.net)
• The China syndrome (boston.com)
• The Next Scheme of the Empire (lewrockwell.com)
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Racial attacks on Sikhs in USA continue

Legal or illegal immigrants - Xenophobia Rules ("Illegal Immigrants" Named "Texan Of The Year" by Dallas Morning News; Cartoon by Daryl Cagle; courtesy - cagematch.dvorak.org). Click for larger image.

A Sikh Metropolitan Transportation Authority (MTA) employee was sucker-punched by a man in Brooklyn who accused him of being related to Osama Bin Laden.

Jiwan Singh, 59, an Indian immigrant, was riding a Brooklyn train from his home in Richmond Hill, when the incident took place, the New York Daily News reports.

“He said, “You are the brother of Osama, and I replied, “I am not Osama. I have nothing to do with him,” said Singh, who lost three teeth from the blows. (via Sikh loses three teeth in ‘Osama’s brother’ racial attack in New York – Times Of India).

West – Thy middle name is freedom

In the Land of The Free, Home of the Brave, in the years after 9/11, more than 200 attacks occurred in the US. Among 500,000 Sikhs, in an US population of 30 crores (300 million).

I am not even counting attacks on ‘guilty’ Arabs and other Muslims. Let us not even talk about the Afghan and Iraqi invasions by the US – after 9/11.

Truth of prejudice is stranger than fiction of freedom. (Cartoon By Joe Heller, Published by Green Bay Press-Gazette - 4/26/2010 12:00:00 AM; courtesy - caglecartoons.com). Click for larger image.

West does not need immi-grunts – for now

A serious problem is many believe that the Western world is about freedom, choice, individual rights, et al. After all even Kasab wants to go to Yumm-rika!

When the West wanted cheap labour from the Rest of the World they changed laws – and made a charade of change. During the Great Recession, with economic stagnation – they no longer need immi-grunts.

If this was not bad enough

These attacks are worse than the 1984 Sikh riots in India – which were not spontaneous, but engineered by political elements. These incidents in the US are obviously spontaneous. Osama was on the opposite side of the world. What could a New Yorker – of any race, colour, have to do with him?

Melting pot, eh?

PS – Thanks for the story, Poonam.

Why does Gujarat-Godhra riots get special treatments from the Supreme Court? Cartoon courtesy - churumuri.wordpress.com). Click for larger image

News related to 1984 Anti-Sikh Riots

The Hindu : News / National : Anti-Sikh riots: Supreme Court to give verdict on Sajjan’s appeal

CBI had filed two chargesheets against Kumar and others on January 13 in the riots cases registered in 2005 on the recommendation of Justice G. T. Nanavati Commission which inquired into the sequence of events leading to the riots.

1984 anti-Sikh riots: Trial to continue against Sajjan Kumar, says Supreme Court | The India Daily

The Supreme Court today refused to quash the charges of murder and other offences against senior Congress leader Sajjan Kumar and said the trial will continue against him in a 1984 anti-Sikh riots case.

Show details of compensation to 1984 Sikh riot victims: HC – Times Of India

The high court on Friday summoned the secretary concerned, dealing with the payment of compensation to victims of Sikh riots of 1984, on December 22 with records, inquiry reports and list of persons to whom compensation has been paid. The court also appointed a local government lawyer as amicus curiae to extend assistance to it in the matter.

The order was passed by a division bench of Justice D P Singh and Justice S C Chaurasia on a petition of victim, Amar Singh Virk. The petitioner was aggrieved by the meagre payment of compensation to the member of the family, who had died in riots that had occurred in 1984.

A nation of immigrants hates 'immigrunts'! (Cartoon By Dario Castillejos, Dario La Crisis - 6/9/2010 12:00:00 AM : courtesy - caglecartoons.com). Click for larger image.

Related Posts – Racial Attacks on Sikh in USA

Sikh youth brutally assaulted in ‘racial’ attack in US : World: India Today.

A Sikh student was “racially abused” and brutally assaulted after being thrown into a swimming pool in west Texas, the Sikh Coalition, an advocacy group for the community in the United States, said.

Four men brutally assaulted the unnamed graduate Sikh student, who works as a part-time pizza delivery person, the advocacy group said.

US: FBI to probe attack on two elderly Sikhs – Rediff.com India News

A troubled Sikh community shocked by the shooting of their two elderly members on Monday offered a reward of US $ 30,000 for any information leading to the culprits, as the local police said they suspected it to bea hate crime and have called in the Federal Bureau of Investigation to join the manhunt.

The West Sacramento Police in California said they suspect that the tradition turbans worn by the Surinder Singh, 68, and Gurmej Atwal, 78, could have become beacons for an attack on them.

NY Sikh Victim of Brutal Racial Attack May Lose Vision

Jasmir Singh, a 21-year-old Sikh college student was savagely attacked and stabbed in his left eye during an unprovoked attack on Sunday outside a grocery store in Queens, New York by three young men wielding a glass bottle. Jasmir sustained injuries to his left-eye, head, face, and back, and has not regained his vision after undergoing a five hour surgery where he received 18 stitches to his eye.

Police arrested two of the suspected attackers nearby, but the third remains at large. The two arrested have been charged with assault in the first degree and robbery in the first degree, both serious felony charges. United Sikhs is working with the NYPD Community Affairs Liaison to urge police to charge the attackers additionally with hate/bias crime charges.

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• U.S. Attorney op-eds for the first time (laobserved.com)
• From California to New York: a tale of two hate crimes (americanturban.com)
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War and crimes

After killing 20 lakhs of Viets, America cannot gloss over these deaths.

After the French had dug their own grave, the US arrived to impose a new form of colonialism in Asia again. (Cartoon by Bill Sanders.). Click for a larger image.

War gone bad

1971, it was clear that the war in Vietnam was over. America was trying to find ways out of the mess.

America

oozed into Vietnam, starting with President Harry Truman’s decision to subsidize the French in their futile effort to retrieve their Asian colony. Presidents Eisenhower and Kennedy deepened our involvement, reiterating the “domino theory,” the dubious notion that the collapse of Vietnam would spark a global wave of communist triumphs. As he escalated the commitment, Lyndon Johnson cautioned, in his typically gaudy rhetoric, that defeat would compel us to retreat to the beaches of Waikiki; his aides, whether or not they believed it, dutifully echoed the party line. Only afterward did Robert S. McNamara, the former Defense Secretary and a pivotal architect of the war, confess that “we were wrong, terribly wrong”–cold comfort for the families of the 60,000 names on the Vietnam Memorial in Washington. Senator Max W. Cleland of Georgia, a paraplegic veteran, said McNamara’s book should have been titled Sorry ‘Bout That. (via Lost Inside the Machine – TIME).

The maya machine

American handling of the post-Vietnam events were the usual propaganda tricks.

Take the above post – written some 30 years after the war ended, and 40 years, after the war became serious. Yet it counts the 60,000 Americans killed. And conveniently glosses over the 20 lakhs Vietnamese killed.

Or for instance, the infamous My Lai massacre. March 16, 1968 more than 300 elderly, women and children killed. My Lai happened in wake of a desperate US, struggling in Vietnam and resorting in massacres. After My Lai massacre, came to light, a prolonged drama of justice of played out.

The Great Game

From 1969 to 1974. Finally, all the perpetrators went scot-free – except the commander, Lt. William Calley, who served a token 3 or so years in prison – instead of the original sentence of 20 years. Seymour Hersh won a Pulitzer for uncovering the My Lai massacre and his brave reporting. After the outrage blew over, Lt. Calley too was pardoned. The Vietnamese ended with hundreds killed at My Lai. America has made a show of being a civilized society.

There are two crimes in this war. America had no business to impose this war in the Viets. After killing 20 lakhs of Viets, America cannot gloss over these deaths.

There was no reason for the Americans to be in Vietnam – except to set up Pax Americana, for which these American soldiers died. What about the Viets?

Why did 20 lakhs of them have to die.

---

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• Behind Population Control (2ndlook.wordpress.com)
• Afghanistan: Obama’s Moment of Decision (thedailybeast.com)
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• “Honoring War Heroes” and related posts (lewrockwell.com)
• My Lai Revisited (thedailybeast.com)
• Robert McNamara, Ex-Pentagon Chief, Dies (cbsnews.com)
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The respect Pakistan deserves – and does not get

Global alarm about Pakistan, is triggered by a new and disruptive player, who has joined the power-grab game. Meet the mullah-madrasa-mujahhid combine.

Pax Americana has abused its power to bend Pakistan to a path of failures - and then US media makes mockery of Pakistan. (Cartoon by Joel Pett; source and courtesy - cartoonistsgroup.com). Click for larger source image.

Test of Political leadership What do you say about a leadership that has two of the world’s super-powers, USA and China, swearing friendship and loyalty – at least once, every week. Must be a rich, hi-tech country. No. We are not talking of Saudi Arabia or Japan. How about describing a leadership that gets economic and military aid – on its own terms, after flouting every previous conditionality imposed on it by the aid-givers? Is it some super-power? Or a very poor country. Even Haiti, Cuba, Congo, Ethiopia have to live with very strict conditionalities, imposed on them. In your words describe a country that shelters and protects half of the world’s most wanted fugitives? A-ha! We are talking of tax-evaders. Sorry. Switzerland, it ain’t. This country has also become a de facto nuclear power – and liberally auctioned nuclear technology, to anyone willing to pay for it. Israel is not who we are talking of. One hint. They have been doing this for 60 years.

All this – and more

Any regime that can dictate terms to USA, China, Saudi Arabia, like Pakistan has, is a skilled leadership. What more can I say? Except doff my imaginary hat in respect. (Not that I would like to live under such leaders).

USA, China, Saudi Arabia have been able to do little about Pakistan, apart from some squealing, public name-calling. In the end they paid up. Each time. For 60 years.

That is what matters.

United States is being subjected to an old-fashioned protection racket by Pakistan: pay up or things could go bad for you. Those making money out of extortion and blackmail always come back for more. (via US is paying for Pak protection racket | By SHAUN GREGORY |

Pakistan’s DNA

60 years ago, Jinnah held the entire sub-continent to ransom. After 200 conflicts in 150 years, as the British, their backs to the wall, were walking away, Jinnah became a spoiler. The hour of triumph turned into moment of tragedy. A country born out of this blackmail, has now formalized blackmail as State Policy.

Pakistan leadership knows what it is doing. There must be a reason why there is

hostility towards India and belief in the reality of the Indian threat to Pakistan (that) is woven into the fabric of every Pakistani soldier.

Pakistani state education system inculcates a hatred of the Hindu “other” and glorifies the Pakistan Army as the saviour of the nation, and second through an outdated military training regime which builds on the child’s prejudice and lays the foundation for a career of military service at the metaphorical remote frontier military post. (via Primary threat to Pak is from within, not India – Times Of India).

For most Indians, the puzzling thing about Pakistan, is their hostility towards India.

Has India hurt Pakistan

Logically, all this hostility and threat perception of India is misplaced, feel Indians. The Indian attitude towards Pakistan is best represented by an anti-Pakistan hawk, Bal Thackeray of the Shiv Sena, a right-wing party and a a known Pakistan-baiter. In a recent interview, he says

TIMES NOW: How do you view what has been happening in Pakistan over the last few months?

Bal Thackeray: Why should I bother? Let them go to hell. I don’t want to know.

For  this is just about what Pakistan means to-day to Indians. Except when there are terrorist incidents. Must Pakistan be wary and suspicious of India. After all, India

has twice imposed military defeat on Pakistan – in 1965 and 1971 – and in neither case sought to assimilate, occupy or otherwise destroy Pakistan. The creation of Bangladesh in the latter war was Bengali-led and an inevitable working through of the inherent contradictions of East and West Pakistan; India did not press its advantage in 1971 over the rump West Pakistan despite Pakistan having lost roughly half its navy, one third of its army, and a quarter of its air-force.

India did not seek to exploit its nuclear monopoly over Pakistan, after the nuclear test in 1974, to the detriment of the Pakistan state. Nor has India been involved in significant military action against Pakistan since 1971 except in response to Pakistani or Pakistani-backed adventurism, such as in Kargil in 1999. India has a “no first use” nuclear policy and in terms of casus belli “Cold Start” is reactive not pre-emptive. (via Primary threat to Pak is from within, not India – Times Of India).

How are Ajmal Kasab and Jared Laughner different? Guns in the hands of killers.

Power grab

Pakistan is actually 5 parts.

First is the army and the ISI combination. Then there are the popular politicians who take part in elections.

Add the mullah-madrasa-mujahhid combine with a fundamentalist clergy, various terrorist groups – like JeM, LeT, Al Qaida, various Taliban factions et al.

The economy and wealth are in hands of the 22 families. Mahbub-ul-Haq’s “22 families” speech in Karachi in 1968 highlighted the power and wealth of a few families in Pakistan.

And bringing up the rear there are the rest. No one in Pakistan talks to anyone. Each has contempt for the other four.

And all five have separate agenda.

Going for broke

To anyone but the most biased or blinkered, it is clear that there are political and economic goals that drive Pakistani rulers. Just like other rulers of the world. Instead of the one-party ‘dictatorship’ of China or a ‘two-party’ democracy in the West, there are many more Pakistani players – each jockeying for power, differently. In a very messy manner, according to ‘modern’ political standards.

Pakistani leadership has been able to use Saudi Arabia, China and USA to meets its own ends. (Cartoon by Ajit Ninan; on 24th May, 2011; source and courtesy - timesofindia.com). Click for source image.

Without making value judgements, multiple Pakistani factions are competing with each other to grab power.

The anti-India hysteria, alleged Islamization of Pakistan, the radical elements being a lunatic fringe or the mainstream, is just that much baloney.

Pakistani perception of the Indian threat to Pakistan is inculcated by the Pakistan Army for one central reason – to legitimize the Pakistan Army and ISI’s primacy in the Pakistan polity and thereby to justify the Army’s claim to a huge slice of Pakistan’s national resources. The perception of an Indian threat thus serves a purpose quite disconnected from the reality of that threat.

India’s large standing army is a material reality that has to be at the heart of Pakistan’s security concerns – is legitimate but misses two essential qualifications. The first is that India is no longer Pakistan’s primary security challenge; that is now the terrorism and extremism of militant Islam. The second is that in military terms, capability does not automatically equate with intent: India’s large standing army does not pose a threat to Pakistan per se any more than a large American or French army poses a threat per se to the UK. (via Primary threat to Pak is from within, not India – Times Of India).

India lives in a tough neighborhood. What to do? (cartoon by Kirtish Bhatt; courtesy - bamulahija.blogspot.com). Click for larger image.

All this talk of God, Allah, etc., is just that much hot and fetid air. The truth – all these are tools for power-players to use and come to power. What has made a difference and caused alarm across the world, is that a new disruptive player has joined the game.

What is worrying the world is that the LeT, Taliban are different kind of players  – and they play rough. Will the outcome be any different?

It will not be the usual ‘suspects’ but four different groups of Pakistanis on who will control Pakistan – and Pakistan’s atom-bombs, wealth, people, natural resources – the works. And a whole, new element.

It is called oil.

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• China ‘asks USA to respect Pak sovereignty’ / China has “warned in unequivocal terms that any attack on Pakistan would be construed as an attack on China” (theboldcorsicanflame.wordpress.com)
• You: Pak-US relations at turning point: Clinton (nation.com.pk)
• ‘India must demonstrate that it is capable of making things difficult’ (wired.com)
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Gold grand prix – The Chinese challenge

Total Gold demand - Top world markets (Image courtesy - ft.com). Click for a larger copy.

Golden ambitions

Western media has breathlessly announced that India’s leadership of many centuries as the largest buyer of gold has been broken by the Chinese. What does this mean for India and China? Not to forget the rest of the world. In the last few months,

India and China combined to contribute 63 percent of the total gold jewelry demand in the world in the first quarter.

Investment demand has grown (in China) by an average 14 percent a year since deregulation of the market in 2001, “a trend that has continued with the strong growth momentum witnessed in the first quarter,” it said. China’s investment demand jumped 123 percent to 90.9 tons in the first three months, compared with an 8 percent rise to 85.6 tons for India.

The country’s total (investment + jewelry)  gold demand in the first quarter jumped 47 percent from a year ago to 233.8 tons, the council said. That still lags behind Indian consumption of 291.8 tons, according to the council. (emphasised text in brackets supplied.)

Gold-to-silver ratios in the past few decades. Image courtesy - wsj.com. Click for larger image.

Law abiding citizens

International regulatory damping of gold demand – especially in USA, India and China eased from 1975 onwards – from December 31st, 1974, with Executive Order 11825 by Gerald Ford.

Unlike India, which was well serviced and supplied with gold by the Indian underworld, China and the USA were deprived of gold supplies during this regulatory blackout of nearly 50 years. Current growth in demand for gold in China is building on a

low base which means that the investment demand and demand for an inflation hedge from 1.3 billion increasingly wealthy Chinese people is more than sustainable.

The not realized important fact that the people of China were banned from owning gold bullion from 1950 to 2003, means that the per capita consumption of over 1.3 billion people is rising from a tiny base. Gold ownership by the Chinese public remains minuscule. Especially when compared to other Asian countries such as Vietnam and India.

Should the Chinese economy crash as some predict, demand could fall. However, sharp declines in Chinese equity and property markets and a depreciation of the yuan would likely lead to significant safe haven demand for gold. Chinese demand alone likely puts a floor under the gold market at $1,450/oz.

It is worth noting that the People’s Bank of China’s gold reserves are very small when compared to those of the U.S. and indebted European nations. China appears to be quietly accumulating gold bullion reserves. As was the case previously, they will not announce their gold purchases in order to ensure they accumulate sizeable reserves at more competitive prices.

China – Biggest gold producer and consumer

China is already the world’s largest producer of gold from 2007, for four years now. China has captured the top position from

South Africa, which was producing as much as 1,000 tons of gold in 1970, (but) has seen its mining production decline for five straight years.

Accelerating a drop in output last year, the country’s mining authorities started a crackdown on unsafe mines after 3,200 workers were trapped at Harmony Gold Mining Ltd.’s Eldestrand mine in October.

Following an order by President Thabo Mbeki, the mining commission in the last three months started to requiring gold mines that suffer a fatal accident to suspend operations while a safety audit takes place. (emphasised text in brackets supplied.)

In 2010 Chinese gold production was

340.88 tonnes of gold in 2010, retaining the position of the world’s largest producer of the precious metal, the China Gold Association said. The number of domestic gold producers shrank to around 700 at the end of 2010, from 1,200 in 2002, through mergers and acquisitions

Further recently, the Chinese Government, through public sector companies, bought South African gold mines from the Australian owner.

Citic Group, China’s biggest state- owned investment company, and partners agreed to buy Gold One International Ltd. (GDO) for about A$444 million ($469 million), gaining gold assets in South Africa.  China Development Bank Corp. and Long March Capital Group are the other members of the bidding group, which is seeking as much as a 75 percent stake and plans to keep the company trading in Australia and South Africa, with a potential listing in Hong Kong. Citic is bidding through its Baiyin Non-Ferrous Group Co. unit and China Development Bank through its China-Africa Development Fund.

Gold One operates the Modder East mine in South Africa and also has projects in Mozambique and Namibia.

A frothing-at-the-mouth FT.com found many reasons to critique the deal.

China and silver

The other big story is silver. Why this sudden spurt in prices? How sustainable is price increase in silver?

Silver is down nearly 30% this month in volatile trading. Such a move in the Dow Jones Industrial Average would equate to an eye-popping drop of more than 3,700 points. Tony Crescenzi of Pacific Investment Management Co. called silver’s parabolic rise and subsequent skid a “tulip mania-style move.”

Silver backers counter that even with its recent drop, the lesser precious metal has retained a nearly 80% gain over the past year.

While gold supply is well understood, silver bulls and bears argue about just how much silver is out there. Some analysts make the case that silver in batteries and photographic film is “recycled” back into the market, reducing scarcity. Silver bulls, of course, think that’s a bunch of poppycock.

More important, the gold-silver price ratio has gotten out of whack. During most of the past 10 years, the ratio hovered around 60, meaning gold was 60 times more expensive than silver. Silver’s incredible surge over the past year has pushed the ratio down to 43, a level not seen since silver’s last crazed phase in the early 1980s. At its peak, back on April 29, the ratio narrowed to 31, a level not seen in three decades.

Silver bulls will argue that the gold-silver price ratio should reflect the 15.5 level authorized by France in 1803, or the 15 level outlined in the U.S. Coinage Act of 1792. It’s more likely that the ratio will revert to modern-era norms rather than race back to the Napoleonic era. And that means that gold, more than silver, looks like the solid store of value today.

Behind this huge spike in silver prices

The Chinese.

As 2ndlook has pointed out earlier, Chinese love silver – and Indians love gold. Most of Chinese consumption of gold is by a few well-heeled elites with guanxi.

But only look at the Chinese trading frenzy in silver.

Chinese speculators have emerged as a big driver of silver’s spectacular rally and subsequent crash with trading in the metal in Shanghai soaring nearly 30-fold since the start of the year.

The commodity, nicknamed “the devil’s metal” for its wild price swings, surged 175 per cent from August to a peak of almost $50 a troy ounce two weeks ago. Since then, it has plummeted 35 per cent, hitting a low of $32.33 on Thursday.

At the same time, silver turnover on the Shanghai Gold Exchange, China’s main precious metals trading hub spiked, rising 2,837 per cent from the start of this year to a peak of 70m ounces on April 26, according to exchange data.

The number of contracts outstanding, an indicator of investor exposure, doubled over the same period.

Silver trading in Shanghai remains below the levels in London and New York, the two main global hubs, but its rapid growth means its has become increasingly significant in driving prices.  “I’m pretty certain it’s the Chinese retail [investment] that is driving this move,” one senior precious metals banker said. “There’s an enormous amount of speculation going on out there, they’ve got the bit between their teeth.”

The Chinese gorilla

Looking at the reports of the market and commodities, it is plain that the Chinese Government is an interested player in gold acquisition – something that 2ndlook projected nearly 4 years ago. And the Chinese consumer is behind the rise in silver prices.

Since China is anyway the world’s largest producer of gold, disruption in gold supplies has not highly marked. If other Governments follow the Chinese example, gold prices could explode. If Chinese buying gets very aggressive, again, prices could spike.

The only cloud on the horizon could be some kind of consensus to bring some undeclared quantities of gold into the market – like the Central Banks Gold Agreement (CBGA). Is that likely? The only such seller could be EU members? With the Euro-zone and the Euro-currency itself in such trouble,  would ECB members dare to sell gold?

Especially, if the Chinese Government is ready to buy?

Top national central bank gold holdings. (Image courtesy - FT.com.). Click for larger copy.

Related articles

• China Is Now Top Gold Bug (online.wsj.com)
• Chinese set new standard in buying gold (ft.com)
• China loves gold (theglobeandmail.com)
• Why Gold Will Outshine Silver (online.wsj.com)
• 4 Must-See Charts About Silver (businessinsider.com)

Of Mice and Men – 2015 Gold Outlook

USA, EU trade relationships with oil producers. The European hands-on, micro-management issue of trade balance seems to be delivering? Some may question, what it is delivering, though.

Of mice and men

While the US dollar is weakening, by design, Greece, Ireland, Portugal and Spain are being bankrupted by a deliberately overvalued Euro.

In such a scenario, China believes that it has a winning hand. Even though, the Chinese exports juggernaut has been slowed by a yuan, trading at 17 year-highs. March 2011 reports indicate

an unexpected $7.3 billion trade deficit, the biggest in seven years. The nation’s (China’s) exports rose at the slowest pace since November 2009.

The US is betting that a weak dollar will reignite economic growth – much like what happened after the Japanese Yen strengthened due to Plaza Accord (1985).

For Europe, the grand prix is to replace the dollar as the currency of international trade – especially oil trade. Euro as a international trade-currency-of-choice, will give the Euro region access to more than 1 trillion euros in zero-cost floating balances.

China is expecting the yuan to play a similar role. Such are plans made by mice and men.

Monsieur Murphy says

What can go wrong with these plans? Plenty.

The eternal enemy of currency manipulation – gold. As a million bureaucrats work on the mechanics of their plans,

Increasingly, everyone is a victim - except the powerful 0.5% elite that rules the world. Break their power. Buy gold. (Cartoonist - Ted Rall; courtesy - http://charlesgoyette.com). Click for larger image.

Sales of gold coins are on track for the best month in a year amid the worst commodities rout since 2008, a sign that bullion’s longest bull market in nine decades has further to run, if history is a guide.

The U.S. Mint sold 85,000 ounces of American Eagle coins since May 1 as the Standard & Poor’s GSCI Index of 24 raw materials fell 9.9 percent. The last time sales reached that level, bullion rose 21 percent in the next year. Gold will advance 17 percent to a record $1,750 an ounce by Dec. 31 and keep gaining in 2012, the median estimate in a Bloomberg survey of 31 analysts, traders and investors shows.

UBS AG, Switzerland’s biggest bank, had its second-best day this year for physical sales on May 9, according to a report the following day. The bank’s sales to India, the world’s top bullion consumer, are more than 10 percent higher than in 2010. (via Gold Coins Show Bull Market Unbowed in Commodities Decline – Bloomberg).

You take free advice …?

While George Soros talks of gold being the ultimate bubble, his companies are quietly buying gold.

Back in late January, as the world’s important people rubbed elbows in Davos, billionaire investor George Soros had some rather definitive thoughts to offer on gold, which he called “the ultimate asset bubble,” according to reports.

However, he neglected to mention that his hedge fund had been buying.

Another report points out that the liquidation (by people like Soros) of investments in public investment vehicles may be replaced by private investments.

In this game of musical chairs, when the music stops, everyone who does not own gold is out. (Cartoon by David Horsey; Courtesy - http://politicalhumor.about.com). Click for larger image.

The new filings from funds “may show that big names exited ETPs and this news may cause prices to slip in the very short term,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. Some funds switched to holding gold directly so they wouldn’t have to announce it publicly, he said.

Is gold a bubble?

A rather disbelieving journalist writes of the situation in the West

Gold is in a bubble. Anyone will tell you that. They’ve been saying it since gold was about, oh, $500 an ounce. But it’s a funny kind of a bubble. It’s the only one I’ve encountered where so few people seem to own the asset in question.

During the dot-com bubble, you met lots of people with tech stocks. Taxi drivers told you what dot-coms they owned. During the housing bubble you met normal, ordinary people who were trading up to expensive homes using adjustable-rate mortgages, buying new condos off plan to flip, and cashing out their fictional “equity” through a refinance mortgage.

But who actually owns gold? I keep hearing about the gold bubble, but every time I ask people if they own any themselves, they say, “no, no, of course not, it’s a bubble.”

Some bubble.

Central banks around the world are printing more dollars, euros, pounds and yen. Gold may simply be a less awful currency than all the others. Banks can’t print any more of it, so its price should probably rise while other currencies fall.

For this year, the question in India seems to be, “Will gold cross Rs.25000, by 2011 Diwali?”

Related articles

• Gold Coins Show Bull Market Unbowed in Commodities Decline (businessweek.com)
• Soros Sells Most of Gold ETP Holdings During First Quarter (businessweek.com)
• A closer look at George Soros’ big quarter of selling gold (financialpost.com)
• Why is George Soros selling gold, but John Paulson not? (theglobeandmail.com)
• China Is Now Top Gold Bug (online.wsj.com)
• Gold Investment Demand in China (lonerangersilver.wordpress.com)
• Chinese set new standard in buying gold (ft.com)
• Gold grand prix – The Chinese challenge (quicktake.wordpress.com)
• Shanghai Planning Gold Exchange-Traded Funds as Demand Jumps (businessweek.com)
• Oil, gold back in demand (news.theage.com.au)

The shadow of oil

Middle East Politics (from Coming apart, coming together By Edward R. Kantowicz; Page 165; courtesy - books.google.com). Click to go to source.

Is Pax Americana like Britain was a hundred years ago? (Cartoon courtesy - mpg50.com.). Click for larger image.

Fat and lazy

Between 1875-1935, Britain was dependent on India for gunpowder, on USA and Iran for  oil, on Malaya and India for rubber. British economy had grown fat and uncompetitive – unlike Italian, German and Japanese economies.

Even though Britain won WWII, their economy was a lost cause. Though Germany, Italy and Japan were losers, with their economy in shambles, they could make a brilliant recovery and vastly out-compete Britain.

The story of Middle East oil is similar for USA and West. The Welfare State, built on a diet of cheap oil, easy dollars,  is now too expensive for the West to sustain. The above book extract gives an excellent snapshot of the oil industry in the 20th century.

And the shadow of oil on the 21st century.

Related articles

• Onward, American Soldiers! Another million await death. (quicktake.wordpress.com)
• Out with the old? (bbc.co.uk)
• UK economy trailing (thesun.co.uk)
• Skidding Oil Prices: A Blip or a Trend? (green.blogs.nytimes.com)