China - Loans from The Godfather

 

There are no shortcuts

Pritish Nandy in The Times of India

When people run short of ideas, they reach out for other things.

There’s money, the first crutch of all fools. For all those who lack self esteem, the first argument is: If I had enough money, I could have done it. This is untrue. Money can make nothing happen unless you will it. And you can will nothing without a precise premise, a strategy or game plan that you have clearly thought through. In short, an idea. Without the idea, without the intellectual or emotional muscle that goes with that idea, any idle dream based only on the availability of money is always doomed. That’s why angel investors do due diligence. Not only of the idea to invest in but also of the person who will deliver it. Does he or she have the grit, gumption, dedication and leadership? Or the persistence to see the idea through its initial days when all that can go wrong always does, following Murphy’s Law?

The other crutch, very popular in India, is connections. Most people think they can achieve anything if only they had a godfather to see them through. The truth is, much as we may like to believe the opposite, few success stories of modern India have anything to do with godfathers. Except in politics and business, where it has been a tradition to mentor heirs from within the family. So it’s tough to break in. It’s far simpler to go out and make your own road. To do that, the first important step is to stop looking for godfathers. Mentor yourself. The rich uncle will always come to you once you have demonstrated your ability to deliver on your own promise. But if you hang around him hoping he will give you the first break, be sure that he will soon start avoiding you.

The third crutch is fate. We believe so much in it that we spend the best years of our life chasing those who pretend they can predict it. Fortune telling is big business out here and there’s a large contingent of charlatans who make their money telling us how we must live our life, what coloured stones to wear, which God to pray to, and on what days we ought to fast. The same person who is vegetarian five days a week to appease a certain God is also ready to slaughter a hapless animal to please another God on another occasion. We would rather go with what others tell us to do than follow our own heart. We are not ready to think through our own solutions. We need intermediaries to advise us on how to live, how to invest, how to seduce luck. Curiously, the richer people become, the more they depend on fake gurus and fraudulent fortune tellers.

The fourth crutch is new: Technology. We have suddenly found technology as a placebo for everything. Doctors have forgotten how to diagnose. So everyone goes for every stupid test. Robotic surgery is replacing human skill and ingenuity. You can’t make good movies. Go for 3D. Dazzle everyone with SFX and sheer wizardry. Demand a 250 million dollar budget when the greatest films in the world have been made for a pittance. (Pather Panchali was made for Rs 150,000 and Bicycle Thief, $133,000!) We have become so stupid that we can’t even make imaginative porn. So Hugh Hefner now uses 3D to make his centrespread girls look sexy whereas a fully clad Garbo once had the whole world salivating every time she turned around and Mae West, at 83, could get any young man into her pad with a single come hither line.

The purpose of technology, we often forget, is not to replace human ingenuity but to support it. We don’t need a computer to write like Shakespeare. We need to create new Shakespeares. The future lies in technology that can support our skills, not supplant them. Avatar is not the future of movies. Marge Simpson is not the future of sexuality even though she was on the Playboy centrespread. Ever seen Madhubala wet in the rain? Now try it. Rediscover the unforgettable power of sexuality.

I'm starting to think that the Left might actually be right

 Charles Moore in The Telegraph on 23/7/2011

It has taken me more than 30 years as a journalist to ask myself this question, but this week I find that I must: is the Left right after all? You see, one of the great arguments of the Left is that what the Right calls “the free market” is actually a set-up.

The rich run a global system that allows them to accumulate capital and pay the lowest possible price for labour. The freedom that results applies only to them. The many simply have to work harder, in conditions that grow ever more insecure, to enrich the few. Democratic politics, which purports to enrich the many, is actually in the pocket of those bankers, media barons and other moguls who run and own everything.

In the 1970s and 1980s, it was easy to refute this line of reasoning because it was obvious, particularly in Britain, that it was the trade unions that were holding people back. Bad jobs were protected and good ones could not be created. “Industrial action” did not mean producing goods and services that people wanted to buy, it meant going on strike. The most visible form of worker oppression was picketing. The most important thing about Arthur Scargill’s disastrous miners’ strike was that he always refused to hold a ballot on it.

A key symptom of popular disillusionment with the Left was the moment, in the late 1970s, when the circulation of Rupert Murdoch’s Thatcher-supporting Sun overtook that of the ever-Labour Daily Mirror. Working people wanted to throw off the chains that Karl Marx had claimed were shackling them – and join the bourgeoisie which he hated. Their analysis of their situation was essentially correct. The increasing prosperity and freedom of the ensuing 20 years proved them right.

But as we have surveyed the Murdoch scandal of the past fortnight, few could deny that it has revealed how an international company has bullied and bought its way to control of party leaderships, police forces and regulatory processes. David Cameron, escaping skilfully from the tight corner into which he had got himself, admitted as much. Mr Murdoch himself, like a tired old Godfather, told the House of Commons media committee on Tuesday that he was so often courted by prime ministers that he wished they would leave him alone.

The Left was right that the power of Rupert Murdoch had become an anti-social force. The Right (in which, for these purposes, one must include the New Labour of Tony Blair and Gordon Brown) was too slow to see this, partly because it confused populism and democracy. One of Mr Murdoch’s biggest arguments for getting what he wanted in the expansion of his multi-media empire was the backing of “our readers”. But the News of the World and the Sun went out of the way in recent years to give their readers far too little information to form political judgments. His papers were tools for his power, not for that of his readers. When they learnt at last the methods by which the News of the World operated, they withdrew their support.

It has surprised me to read fellow defenders of the free press saying how sad they are that the News of the World closed. In its stupidity, narrowness and cruelty, and in its methods, the paper was a disgrace to the free press. No one should ever have banned it, of course, but nor should anyone mourn its passing. It is rather as if supporters of parliamentary democracy were to lament the collapse of the BNP. It was a great day for newspapers when, 25 years ago, Mr Murdoch beat the print unions at Wapping, but much of what he chose to print on those presses has been a great disappointment to those of us who believe in free markets because they emancipate people. The Right has done itself harm by covering up for so much brutality.

The credit crunch has exposed a similar process of how emancipation can be hijacked. The greater freedom to borrow which began in the 1980s was good for most people. A society in which credit is very restricted is one in which new people cannot rise. How many small businesses could start or first homes be bought without a loan? But when loans become the means by which millions finance mere consumption, that is different.

And when the banks that look after our money take it away, lose it and then, because of government guarantee, are not punished themselves, something much worse happens. It turns out – as the Left always claims – that a system purporting to advance the many has been perverted in order to enrich the few. The global banking system is an adventure playground for the participants, complete with spongy, health-and-safety approved flooring so that they bounce when they fall off. The role of the rest of us is simply to pay.
This column’s mantra about the credit crunch is that Everything Is Different Now. One thing that is different is that people in general have lost faith in the free-market, Western, democratic order. They have not yet, thank God, transferred their faith, as they did in the 1930s, to totalitarianism. They merely feel gloomy and suspicious. But they ask the simple question, “What's in it for me?”, and they do not hear a good answer.
Last week, I happened to be in America, mainly in the company of intelligent conservatives. Their critique of President Obama’s astonishing spending and record-breaking deficits seemed right. But I was struck by how the optimistic message of the Reagan era has now become a shrill one. On Fox News (another Murdoch property, and one which, while I was there, did not breathe a word of his difficulties), Republicans lined up for hours to threaten to wreck the President’s attempt to raise the debt ceiling. They seemed to take for granted the underlying robustness of their country’s economic and political arrangements. This is a mistake. The greatest capitalist country in history is now dependent on other people’s capital to survive. In such circumstances, Western democracy starts to feel like a threatened luxury. We can wave banners about “life, liberty and the pursuit of happiness”, but they tend to say, in smaller print, “Made in China”.

As for the plight of the eurozone, this could have been designed by a Left-wing propagandist as a satire of how money-power works. A single currency is created. A single bank controls it. No democratic institution with any authority watches over it, and when the zone’s borrowings run into trouble, elected governments must submit to almost any indignity rather than let bankers get hurt. What about the workers? They must lose their jobs in Porto and Piraeus and Punchestown and Poggibonsi so that bankers in Frankfurt and bureaucrats in Brussels may sleep easily in their beds.

When we look at the Arab Spring, we tend complacently to tell ourselves that the people on the streets all want the freedom we have got. Well, our situation is certainly better than theirs. But I doubt if Western leadership looks to a protester in Tahrir Square as it did to someone knocking down the Berlin Wall in 1989. We are bust – both actually and morally.

One must always pray that conservatism will be saved, as has so often been the case in the past, by the stupidity of the Left. The Left’s blind faith in the state makes its remedies worse than useless. But the first step is to realise how much ground we have lost, and that there may not be much time left to make it up.