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Friday, 2 January 2009

The Great Indian Chaos Theory


   

Was this the worst year experienced by India (and Indians) since the country was founded? Our annus horribilis?


RAMACHANDRA GUHA
Gripped and horrified by the sixty-hour, commercial-free, non-stop television drama played out recently in south Mumbai, some of us may have overlooked the fact that this was only the last in a series of terror attacks that our country and its people were subjected to in 2008. Before Mumbai, there was Delhi; before Delhi, Ahmedabad; and before that, Bangalore and Jaipur. The cumulative impact of these barbaric acts may have obliterated, from collective memory, the troubles caused in this twelvemonth by the fanatics on the other side. Through several long weeks in the autumn, cadres of the Vishwa Hindu Parishad and the Bajrang Dal attacked villagers in Orissa for having converted to Christianity. As a consequence, some 200 places of worship were destroyed, about forty people killed, and at least fifty thousand rendered homeless.
 
Turn your attention now to the most beautiful state in India where, this past June, several years of peace and (a relative) stability were disturbed and destroyed by a competitive communalism. A few hectares of land asked for by a temple board sparked protests by the residents of the Kashmir Valley; in exchange, the residents of Jammu blocked the highways and paralysed the state administration. The conflict escalated: mass meetings were held in the Valley calling for azadi, mass meetings were held in Jammu demanding justice and self-respect.

 

Lest we forget, 2008 also saw the renewal of sectarian protests based on identities other than religion. The MPs of the Telangana Rashtra Samiti resigned their posts; the cadres of the United Liberation Front of Asom set off a series of bombs. The activities of ULFA and the TRS pale into insignificance in comparison to the activities, also in 2008, of that other parochial body, the Maharashtra Navnirman Samiti. For the Mumbai that the terrorists attacked in November was also the Mumbai which Raj Thackeray and his goons had sought, just a few weeks previously, to purge of 'outsiders' to the city.

 

Move now from the domains of society and religion to the material bases of human existence. The ground here, seemingly sure and solid, was disturbed this past year by the meltdown in the global economy. The collapse of banks on Wall Street had its ripple effect in India too, with the Planning Commission revising its growth estimates downwards, auto companies asking workers to stay at home three days a week, and BPO firms laying off thousands of employees. Indian companies that had ventured into acquisitions abroad saw the prestige of those purchases being undermined by falling prices and profits. Meanwhile, at home, the aam admi was hit by inflation, whose rate had now reached double digits for the first time in more than a decade.

2008 was also the year that Mother Nature played havoc with her Indian children. In the last week of November, many parts of the great city of Chennai found themselves knee-deep in water. Earlier, in August, the same fate had been handed out to many districts of the great state of Bihar. The Kosi river changed course for the first time in more than a century, the overflow covering huge swathes of land with a fast-moving sheet of water, with humans and cattle fleeing in its wake. More than three million people were affected by the floods.

 

For the citizens of India, the calendar year 2008 was marked and scarred by the malign activities of Islamic fanatics, Hindu bigots and linguistic chauvinists; by the arresting of the onward march of the Indian economy; and by cyclones and floods. This listing probably overlooks some other nasty things that took place this past twelvemonth. But even the incomplete evidence offered above begs the question—was this the worst year experienced by India (and Indians) since the country was founded?

 

Speaking as an Indian who has just turned fifty, I can immediately offer one other candidate for that (very dubious) honour—1984, a year that was a nightmare for India at any rate, if not (as George Orwell had once predicted) for the whole world. On January 1, 1984, the Congress government led by Prime Minister Indira Gandhi was on the verge of completing four years in office. It was somewhat less than secure, for there was an insurgency on in the Punjab, and a major oppositional movement afoot in Assam. To these angry complaints of peripheral regions were added tensions of caste and class, and a vulnerable economy.

 

On or shortly after New Year's Day the Congress began planning its strategy for re-election. Its best chances, it thought, lay in a departure from its previously non-sectarian politics in favour of a more overtly 'Hindu' image. The prime minister began visiting temples across the country. Then, as the Khalistan movement gathered momentum, troops were sent into the Golden Temple. Two days of bloody battle—fortunately, not covered by live television—led to many hundreds of deaths and the near-destruction of the Akal Takht.

 

Never before had an elected government attacked a place of worship, still less a shrine as holy, and as beautiful, as this one. That was bad enough, but worse was to follow. Four months later, the prime minister was gunned down by her Sikh bodyguards. This act of revenge was immediately followed by another, as mobs led by Congress politicians roamed the streets of Delhi in search of Sikhs to kill. The rioting spread to other cities of northern India. In the end, more than three thousand Sikhs died, all of them innocent of crimes of any kind.

 

As it limped into its last month, the calendar year 1984 had already witnessed three dramatic, dreadful events—the attack on the Golden Temple, the assassination of a serving prime minister, the killings of innocent Sikhs. I remember all three well, and also the fourth that was to follow. On the morning of the December 2, I got married in Bangalore. As my wife and I proceeded to Goa on our honeymoon, news reached us of the gas leak in Bhopal, revealed in time to be the most serious industrial accident of the twentieth century, worse even than Chernobyl, killing more than two thousand Indians and maiming many thousand others.

 

Indira Gandhi's last year in office was tragic for her, and for her country. As it happens, Mrs Gandhi's first twelvemonth as prime minister must also be a front-runner in the race to be considered the 'most horrible of all'. The year 1966 began with the death, through a heart attack suffered in Tashkent, of the prime minister, Lal Bahadur Shastri. In his short time in office, the short-statured Shastri had grown in assurance and credibility. He had led India commandingly in a war provoked by Pakistan, he had laid the seeds of the Green Revolution, and he had taken steps to liberalise the economy.

 

When Shastri died in January, Indira Gandhi was chosen by the Congress bosses to replace him. She did not at first inspire confidence. Although immaculately groomed, she had little previous experience in government.She had a fine command of English as well as Hindi, but was little inclined (at least in public) to exercise it, so much so that the combination of her silence and her (sartorial) elegance led the socialist politician Ram Manohar Lohia to dub her a goongi gudiya (dumb doll). But then no doll, dumb or otherwise, has had to face as stern a test as Mrs Gandhi did in her first months in office. A check-list of select events in 1966 follows:

 

February: The Mizo National Front launches an armed uprising against Indian rule. Banks are looted, offices burnt, roads blocked. One town is captured and another threatened. The army is called in, followed by the air force; thus, for the first time since Independence, the Indian state uses air power against its own people.

March: A tribal rebellion in Bastar is quelled by the use of force—forty adivasis die in police firing, among them their venerated former maharaja, Pravir Chandra Bhanj Deo.

March, again: Successive failures of the monsoon lead to starvation deaths in the countryside. There are food riots in India's most populous city, Calcutta. In desperation, the prime minister goes to Washington to ask for aid in the form of wheat. The mission is captured in one American newspaper headline: 'New Indian Leader Comes Begging'. Meanwhile, the sorrow and the succour are captured at home in the only joke ever known to have been made by an Indian economist, which is that the country was now leading 'a ship-to-mouth existence'.

April: The peace talks between Naga rebels and the Indian government break down. The insurgents return to the jungle, only to re-emerge to blast trains and assassinate officials.

June: The foreign exchange reserves are so seriously depleted that the government is forced to devalue the rupee, an act considered by its critics to be an admission of national failure, since the devaluation came close on the heels of the begging for food, and since it was undertaken on the advice—or the orders—of the International Monetary Fund.

November: Angry sadhus calling for a ban on cow slaughter hold a massive meeting on the Boat Club lawns in New Delhi. One swami, even angrier than the rest, calls for the crowd to storm Parliament. The holy men make for the gates, but are stopped by the police. They then turn their wrath on passers-by and on property. Some 500 vehicles go up in flames, also the house of the Congress president and the guard room of All India Radio. For the first time since 1947, the army is called out to restore order in the capital.

 

Mrs Gandhi's first year in office was marked by a series of unfortunate events, and so also the first full calendar year that her father, Jawaharlal Nehru, served as prime minister. The year 1948 began with attacks by Hindu extremists on Muslims in Delhi and the Punjab, in revenge for attacks on minorities in what was now Pakistan. The Father of the Nation, Mahatma Gandhi, went on fast to help restore communal amity. For this noble and heroic act, he was murdered by a former member of the Rashtriya Swayamsevak Sangh. The nation was stunned and the fanatics shamed, for they now retreated into the margins. Their place was taken by the extremists on the other side. In the first week of March 1948, and acting on the orders of their Soviet masters, the Communist Party of India launched an armed insurrection against the Indian state.

 

I was not alive in 1948, but reading the newspapers of the time I sense that this must have been a very dark year indeed. This young and vulnerable nation was challenged by radicals of the left and right. There was a war on in Kashmir. Then a fourth obstacle presented itself. This was the princely state of Hyderabad which, unlike five hundred others of its ilk, was refusing to join the Indian Union.Now that would have been the end of the idea of India—for the territory of Hyderabad extended across the heart of the subcontinent, separating north India from the south.

 

To judge how bad 1948 must have been, consider this excerpt from a letter written in that year by the last British commander-in-chief of the Indian army, General Claude Auchinleck: 'The Sikhs may try to set up a separate regime. I think they probably will and that will be only a start of a general decentralisation and break-up of the idea that India is a country, whereas it is a subcontinent as varied as Europe. The Punjabi is as different from a Madrassi as a Scot is from an Italian. The British tried to consolidate it but achieved nothing permanent. No one can make a nation out of a continent of many nations.'

 

To the very many Indians reeling under the impact of the tragic events of 2008, let me offer this consolation—that there have been some other very bad years, too. 1984 and 1966 and 1948 were likewise peppered with violence and murder, and by riots and rebellions. Then we must also consider those years where a single event may have been momentous enough to undermine one's faith in the ideals of the Republic. I think here of 1962, an otherwise placid year marred by the humiliating defeat in the border war with China; of 1975, a year when India, for the first and hopefully the last time, was brought under the authoritarian rule of a single party run by a single family; of 1992, when the destruction of a medieval mosque and the riots that followed called into question the secular and plural ideals of the Indian Constitution; and of 2002, when a pogrom against Muslims was conducted by the Gujarat administration with the complicity of the central government, the event and its aftermath shaming India in the eyes of the world.

 

Here, then, is a listing of the bad and the very bad years experienced by India in the sixty years since independence: 1948, 1962, 1966, 1975, 1984, 1992, 2002, 2008. Which of these was the very worst? It is hard to give an unambiguous answer, for three reasons. The first is the imperfect state of our knowledge, the flawed powers of recall of the historian as much as of the citizen. Had Outlook given me 30,000 words instead of 3,000, this essay might have made for more mournful reading still—with many more unfortunate and tragic events described, with yet other calendar years being offered as likely candidates for the title of the 'worst ever'.

 

A second reason why I prefer not to pick one year above (or below) the rest is that, in such a choice, bias and prejudice must always play some part. The Indian for whom secularism is the most important binding value of the Republic will tend to think of 1992 and 2002 as being the worst of all years. The Indian motivated by a dislike of the Nehru-Gandhis might instead choose 1962 or 1975. The admirer of Mahatma Gandhi might cast his vote for the year in which the greatest of all Indians was murdered. Indian citizens of the Sikh faith may have the darkest memories of 1984.

 

The third reason why any singular choice must be contentious lies in the method being followed here. Because the media—and the electronic media even more so—tends to privilege spectacular, dramatic events, the citizen chooses to do so too. However, behind and beyond the killings and the bomb blasts lie very many less visible sufferings and tragedies. To speak only of this past year, 2008, even if the fidayeen had not targeted Mumbai, the MNS not targeted Biharis, and the VHP not targeted Christians, there would still have been millions of Indians without access to safe drinking water, decent schools and hospitals, and a fair living wage.Had these dramas not been played out in front of television screens, in homes and localities across the land there would still have been women abused and violated, Dalits and tribals harassed and victimised, slum-dwellers evicted, and beggars turned away. Had no gunmen entered the Taj on the night of 26th November, farmers plagued by debt and crop failure would still be killing themselves in the villages of Maharashtra.

 

This, indeed, may be the most significant reason why one must refuse to single out one particular year as more dreadful than the rest. For, in constructing an index of 'Gross National Unhappiness', the trials of daily life must necessarily count as much as the dislocations and deaths caused by extraordinary happenings such as terrorist strikes. However, given the variability of these different events and processes, and the impossibility of measuring them in quantitative terms, our index must remain hypothetical. I suspect that even the combined talents of Albert Einstein and Srinivasa Ramanujam would have found it impossible to accurately compute a Gross National Unhappiness index for a single year, let alone so many.

 

Who is to say which of the sixty years since India became independent has been the worst of all? Not this historian, at any rate. You may call this cowardice; I prefer to think of it as prudence. Suffice it to say that in our short career as a nation we have had quite some bad years and a few disastrous ones too. By my reckoning, we have had at least eight years that live on in public memory for the wrong reasons, for having been witness to crimes against individuals and communities of a scale that deserve that telling epithet, 'inhuman'.

 

Reflecting on that very troubled decade, the 1980s, a decade marked by caste wars and communal conflicts and many other nasty things besides, the sociologist Ashis Nandy remarked that 'In India the choice could never be between chaos and stability, but between manageable and unmanageable chaos, between humane and inhuman anarchy, and between tolerable and intolerable disorder'. I disagree with Nandy about many things, but think he has it exactly right here. For, as I have argued elsewhere, India is both an unnatural nation as well as an unlikely democracy. Never before has a single political unit been constructed from such disparate and diverse parts. Never before was a largely illiterate population given the right to choose its own rulers.

 

For India to be both united and untroubled would be a miracle. For it to be both democratic and free of conflict would be doubly so. Thus, in the 1940s, we overcame the crisis of Partition by forging a democratic and federal Constitution. No sooner had the nation observed its first Republic Day than it was confronted by oppositional movements based on language. When we contained and tamed these—by creating linguistic states—our unity was freshly imperilled by the Naga insurgency. Then, in the 1960s, anti-Hindi protests in Tamil Nadu and the rise of Naxalism in West Bengal and Andhra Pradesh posed fresh questions to the idea of India. In the 1970s we were subjected to the Emergency; and, when we came out of that, to separatist movements in Assam and the Punjab. The 1990s saw the sharpening of caste and religious identities, a process that unleashed conflicts and animosities that, when I last looked, had scarcely abated. And through these six decades there has remained the problem of the Kashmir Valley—was it, could it, must it be properly part of the Republic of India?

The history of independent India is one of fires being lit, doused, and then lit again. Seduced by the surge in some sectors of the economy, sections of the Indian elite (the media elite included) have taken our unity and our democracy for granted, and made a claim to be heard on the high tables of the world.In their eagerness to be seen as the spokespersons of a coming superpower, they have neglected the fissures and tensions within their own society.

 

If sections of the (so to say) thinking classes have been guilty of a premature internationalism, sections of our political elite have lapsed, meanwhile, into a malevolent parochialism. The parish is constituted variously: for the bjp it is the upper-caste Hindu; for the Congress it is the interests of the dynasty; for the lesser parties it is Indians of a particular caste or language group. Even at a time of national calamity these groups have not found it possible to suppress their sectarian affiliations (or personal ambitions) in favour of the public good. In the aftermath of the attack on Mumbai, Priyanka Gandhi was silly to claim that what the nation needed to combat terror was the spirit of that experienced instigator and provoker of extremism, Indira Gandhi. And it was despicable of Narendra Modi to attempt to bribe the widow of a police officer he had, just the past week, so unfairly abused.

 

As an unnatural nation and an unlikely democracy, India was never destined for a smooth ride. It is not, and can never be, Sweden or Norway— that is to say, a small, mostly homogeneous country with little crime, less violence, and very few poor people.

 
That said, 2008 was, even by our standards, a truly horrible year for Indians. The task before us now is not to put this past twelvemonth behind us, but rather to learn, from what happened then, to more sensitively manage the tensions and conflicts within. The premature internationalists must set aside their concern—perhaps one should say 'obsession'—with the number of Indian billionaires in the Forbes list, the number of nuclear weapons we own, and the memberships of international bodies we covet. The parochialists, for their part, might think of working to moderate conflicts of language, caste and religion, rather than—as is their wont—seeking to intensify them. Were this to happen, we may yet succeed in making 2009 a year in which the Indian chaos shall be manageable, the Indian anarchy, humane, and the Indian disorder, tolerable.





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Wednesday, 24 December 2008

Lok Sabha passes 8 bills in 17 minutes without debate

Amid din, LS passes 8 bills in 17 minutes without debate
24 Dec 2008, 0640 hrs IST, TNN


NEW DELHI: For the last two days, as the much-extended special session of parliament called for the Manmohan Singh government's July 22 trust vote drew to a close, a flurry of bills - four on Monday and a staggering eight in 17 minutes on Tuesday - were passed even as the Lok Sabha was frequently in disorder.

On Tuesday afternoon, when BJP MPs stormed the well rejecting the government's statement on minority affairs minister A R Antulay's demand that the shooting of ATS chief Hemant Karkare should be probed, the chair quickly took up pending legislation which had swelled to nine from the five listed at the start of the day.

With just one session of the current Lok Sabha to go in February-March, this week's proceedings marked yet another low for parliament.

The Times of India has consistently reported on the absence of debates and the decline in sittings. In its report on October 21 this year, TOI had pointed out that parliament had met only 32 days this year and the expectation that it should meet for a minimum of 100 days was not going to be met by a long margin. Looking at past years, the Lok Sabha met for as many as 151 days in 1956, and just 98 and 109 days in 1976 and 1985, respectively. In 1999, it had met for 51 days.

The procedure adopted on Tuesday was quite irregular as MPs complained that additional bills, pushed in as the supplementary list of business, were not circulated, while legislation was not discussed at all. In fact, amid the tremendous din in the House, it was barely possible to track which bill had been passed expect by keeping an eye on the minister rising in response to the chair.

Speaker Somnath Chatterjee, who had conducted proceedings since the morning, was absent when the House met at 2pm and, as was the case on Monday, deputy Speaker Charanjit Atwal simply ignored the tumult and went ahead with the legislative business. As it became apparent that the government was moving bill after bill, enraged Left MPs rushed to the chair in protest.

Left MPs N N Krishnadas and Sunil Khan gesticulated at the chair demanding that the proceedings be halted until they were hauled back by CPM deputy leader Mohammed Salim. The Left MPs then stood in a group and tore copies of the bills in their possession and flung them around in order to underline the mockery of parliamentary practice. All along, BJP MPs kept up a steady chorus of anti-Antulay slogans.

The bills rushed through the Lok Sabha on Tuesday were on the Post-Graduate Institute of Medical Education and Research, Chandigarh, amendments to the Prevention of Corruption Act, Agricultural and Processed Food Products Export Development Authority Amendment Bill, Compensatory Afforestation Act, Constitution (Scheduled Tribes) UT Order (Amendment), South Asian University Bill, Code of Criminal Procedure Amendment Bill and Collection of Statistics Bill.

Later, BJP spokesperson Shahnawaz Hussain said a ninth bill, High Court and Supreme Court Judges Salaries and Conditions of Service Bill, could not be taken up as law minister H R Bhardwaj was not in the House. However, ministry officials said a junior minister had been deputed but the bill was not taken up by the chair. What shocked MPs was the sheer opportunistic manner in which four bills were brought onto the list of business at the last minute.

On Monday, for a full 26 minutes, as the BJP MPs were yelling their lungs out in the well, telecom minister A Raja moved the Information Technology Amendment Bill clause by painful clause. A little earlier, railway minister Lalu Prasad moved the Appropriations Bill for his ministry. Other legislation to be passed included the Gram Nyayalaya Bill and the Prevention and Control of Infectious Diseases in Animals Bill.

By any standard, passing 12 bills in two days is a mammoth task even if the House had decided to sit late into the night. Even the most innocuous of bills attracts a dozen-odd speakers and often a couple of hours of discussion can be expected. On Tuesday, ministers who had spent the morning in their offices in the Lok Sabha being briefed by officials had nothing more to do than move bills in the House.

Parliament has met irregularly during the current Lok Sabha, often due to political blockades and sometimes, as in the case of the just-concluded session, to avoid the possibility of a no-trust vote being moved by the opposition. And while the sittings have declined, the practice of passing bills when the House is in disorder has almost become a norm - a precedent that many MPs feel bodes ill for the health of parliament.



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Economics as Pseudoscience


 By The Mogambo Guru

Around here, Today's Big Burning Question (TBBQ) is "Will the stupid Mogambo ever shut up and actually get any work done?" while I am consumed with my own version of TBBQ, which is "Can the Federal Reserve continue to lower interest rates forever, to zero and beyond, perhaps to negative infinity?"

You will probably agree with me that "negative interest rates" is a very interesting theory, as is "negative infinity" and the concept of a totally flat yield curve where all interest rates for every maturity period, from three-month T-bills to 30-year bonds, all pay the same interest rate! Weird stuff!

Obviously, it is something that we would have hoped would be delved into more deeply, as the headline "Treasury Curve Flattens on Speculation Fed May Go Beyond Cuts" seems to so richly imply.

Alas, it was not to be, and thus the fascination of theoretical "negative interest rates" remains just another amazing artifact of mathematics, like the artificial "consumption function" that is at the root of the econometric neo-Keynesian crapola that is practiced by Ben Bernanke of the Federal Reserve to actually try and guide monetary policy, which they have done to such disastrous consequences, and which is a theory that was previously taught by him as the actual head of the economics department of Princeton University, where nobody in the math department or the history department ever questioned him, his ridiculous theories, or even said, "You must be some kind of moron to think the stupid equation-laden crap coming out of your stupid mouth is real economics, when any semi-literate halfwit can see that the Classical and the Austrian schools of economics are obviously right, whilst you low-wattage 'constant stimulus via deficit spending' morons are going to destroy the dollar and the US economy with your econometric insanity!" which, I think, says all you need to know about the intellectual prowess of Princeton University.

Instead of helping me shame Princeton for promoting the equivalence of astrology as a science and how America is now ruined for it, I found that I had accidentally missed the whole point of the article, and the headline "Treasury Curve Flattens on Speculation Fed May Go Beyond Cuts" was significant in that the important point was that the Fed "may go beyond cuts" in interest rates, and that Ben Bernanke admitted that "there was limited room to lower rates", and now has "suggested" that "the central bank would consider buying Treasuries to prevent yields from rising"!!

Notice the part at the end where I added the two exclamation points as my clever non-verbal editing way of saying, "The freaking Federal Reserve is creating money and credit for its own use so that it can buy increasing amounts of newly-issued Treasury bonds for itself, and other securities and assets, in order to manipulate the supposed free market while giving the government oodles and oodles of new money to spend because the Congressional lowlife morons have now spent us into the grave and are so panicked that they will reflexively respond with MORE deficit-spending for the Federal Reserve to finance by creating the money and credit to pay for it, which will cause inflation and economic distortions a-plenty!!!"

Notice again the use of, not two, but three exclamation points, which is again my clever non-verbal editing way of saying, "I am freaked out at the blatant corruption and fraud that is happening right in front of our noses by Wall Street, Congress and the Federal Reserve, and people ought to be sending me money with which to do emergency research into animating the dead so as to raise an Army of the Undead to descend upon Washington, DC, and eat the brains of anyone tainted with the stench of Congress and the Federal Reserve!"

Mr Bernanke is apparently not afraid of my threats of mobilizing an army of vengeful zombies to send against him and his loathsome ilk, and ignoring me completely, defiantly said that one option open to the Fed is to buy "longer-term Treasury or agency securities on the open market in substantial quantities", which seems really odd, coming as it does at the same time as "International investors purchased a net US$34.6 billion of Treasury notes and bonds in October, compared with purchases of $20.7 billion a month earlier."

Or maybe it isn't odd, as "Investors sold US stocks, corporate bonds and a record amount of debt issued by mortgage-finance companies Fannie Mae and Freddie Mac and other agencies, according to the Treasury."

Bloomberg quoted Suvrat Prakash of BNP Paribas Securities saying that "There is still a lot of demand for assets at these yields. Whenever risky assets are performing as badly as they are now, you see people flock to safe assets."

Safe? Did he say safe? Hell, yes, it's safe! It's as safe as any fiat currency can be; if the government needs a little money to pay you back, it merely gets its central bank to create some credit in the banks from thin air, which becomes money when somebody borrows the money to buy the government debt! Hahahaha! What a racket!

So, since all the world's currencies are now fiat currencies, and they can all be easily inflated by infinite amounts until they are as worthless as a Zimbabwean dollar, thus they are all equally as safe and ultimately as valuable, too! Hahahaha!

About this time, you would normally expect me to switch to a rant on why this means that you should be buying gold, silver and oil, and indeed all commodities, but I will not, as your mere expectation proves that you understand this stuff perfectly!

I am very proud of you, my darling Junior Mogambo Ranger (JMR)!

Richard Daughty is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the editor of The Mogambo Guru economic newsletter - an avocational exercise to heap disrespect on those who desperately deserve it.




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Merry Xmas - An article on "Police State Britain"


 The Paranoia Squad

A British police unit is demonising peaceful protesters to stay in business. For how much longer will the government permit the police forces to drum up business like this? And at what point do we decide that this country is beginning to look like a police state?


GEORGE MONBIOT
When you hear the term "domestic extremist", whom do you picture? How about someone like Dr Peter Harbour? He's a retired physicist and university lecturer, who worked on the nuclear fusion reactor run by European governments at Culham in Oxfordshire. He's 70 next year. He has never been tried or convicted of an offence, except the odd speeding ticket. He has never failed a security check. Not the sort of person you had in mind? Then you don't work for the police.

Dr Harbour was one of the people who campaigned to save a local beauty spot � Thrupp Lake - between the Oxfordshire villages of Radley and Abingdon. They used to walk and swim and picnic there, and watch otters and kingfishers. RWE npower, which owns Didcot power station, wanted to empty the lake and fill it with pulverised fly ash(1).

The villagers marched, demonstrated and sent in letters and petitions. Some people tried to stop the company from cutting down trees by standing in the way. Their campaign was entirely peaceful. But RWE npower discovered that it was legally empowered to shut the protests down.

Using the Protection from Harrassment Act 1997, it obtained an injunction against the villagers and anyone else who might protest. This forbids them from "coming to, remaining on, trespassing or conducting any demonstrations or protesting or other activities" on land near the lake(2). If anyone breaks this injunction they could spend five years in prison.

The act, parliament was told, was meant to protect women from stalkers. But as soon as it came onto the statute books, it was used to stop peaceful protest. To obtain an injunction, a company needs to show only that someone feels "alarmed or distressed" by the protesters, a requirement so vague that it can mean almost anything. Was this an accident of sloppy drafting? No. Timothy Lawson-Cruttenden, the solicitor who specialises in using this law against protesters, boasts that his company "assisted in the drafting of the … Protection from Harassment Act 1997″(3). In 2005 parliament was duped again, when a new clause, undebated in either chamber, was slipped into the Serious Organised Crime and Police Act(4). It peps up the 1997 act, which can now be used to ban protest of any kind.

Mr Lawson-Cruttenden, who represented RWE npower, brags that the purpose of obtaining injunctions under the act is "the criminalisation of civil disobedience"(5). One of the advantages of this approach is that very low standards of proof are required: "hearsay evidence … is admissable in civil courts". The injunctions he obtains criminalise all further activity, even though, as he admits, "any allegations made remain untested and unproven."(6)

Last week, stung by bad publicity, npower backed down. The villagers had just started to celebrate when they made a shocking discovery: they now feature on an official list of domestic extremists.

The National Extremism Tactical Co-ordination Unit (NETCU) is the police team coordinating the fight against extremists. To illustrate the threats it confronts, the NECTU site carries images of the people marching with banners, of peace campaigners standing outside a military base and of the Rebel Clown Army (whose members dress up as clowns to show that they have peaceful intentions). It publishes press releases about Greenpeace and the climate camp at Kingsnorth(7). All this, the site suggests, is domestic extremism.

NECTU publishes a manual for officers policing protests. To help them identify dangerous elements, it directs them to a list of "High Court Injunctions that relate to domestic extremism campaigns", published on NECTU's website(8). On the first page is the injunction obtained by npower against the Radley villagers, which names Peter Harbour and others.Dr Harbour wrote to the head of NETCU, Steve Pearl, to ask for his name to be removed from the site. Mr Pearl refused. So Dr Harbour remains a domestic extremist.

It was this Paranoia Squad which briefed the Observer last month about "eco-terrorists". The article maintained that "a lone maverick eco-extremist may attempt a terrorist attack aimed at killing large numbers of Britons."(9) The only evidence it put forward was that someone in Earth First! had stated that the world is overpopulated. This, it claimed, meant that the movement might attempt a campaign of mass annihilation. The same could be said about the United Nations, the Optimum Population Trust and anyone else who has expressed concern about population levels.

The Observer withdrew the article after NETCU failed to provide any justification for its claims(10). NETCU now tells me that the report "wasn't an accurate reflection of our views"(11). But the article contained a clue as to why the police might wish to spread such stories. "The rise of eco-extremism coincides with the fall of the animal rights activist movement. Police said the animal rights movement was in disarray" and that "its critical mass of hardcore extremists was sufficiently depleted to have halted its effectiveness."(12) If, as the police maintain, animal rights extremism is no longer dangerous, it is hard for NETCU to justify its existence: unless it can demonstrate that domestic extremism exists elsewhere. A better headline for the article might have been "Keep funding us, say police, or civilisation collapses."

NETCU claims that domestic extremism "is most often associated with single-issue protests, such as animal rights, anti-war, anti-globalisation and anti-GM crops."(13) With the exception of animal rights protests, these campaigns in the UK have been overwhelmingly peaceful. As the writer and activist Merrick Godhaven points out, the groups whose tactics come closest to those of violent animal rights activists are anti-abortion campaigns(14). The UK Life League, for example, has published the names and addresses of people involved in abortion and family planning(15,16). Two of its members have been convicted of sending pictures of mutilated foetuses to doctors and pharmacies(17). Anti-abortionists in the US have murdered doctors, nurses and receptionists. Yet there is no mention of the UK Life League or anti-abortion campaigning on the NETCU site. This looks to me like partisan policing.

Just as the misleading claims of the security services were used to launch an illegal and unnecessary war against Iraq, NETCU's exaggerations will be used to justify the heavy-handed treatment of peaceful protesters. In both cases police and spies are distracted from dealing with genuine threats of terrorism and violence.

For how much longer will the government permit the police forces to drum up business like this? And at what point do we decide that this country is beginning to look like a police state?

www.monbiot.com

References:

1. saveradleylakes.org.uk/
2. The High Court of Justice. Order arising from Case HQ07X00505. para 6.4. netcu.org.uk

3. lawson-cruttenden.co.uk

4. Sections 125-127. opsi.gov.uk

5. Timothy Lawson-Cruttenden, 2007. Injunctive Relief Against Harassment and trespass.Case Commentaries, p194. Environmental Liability.

6. ibid.

7. netcu.org.uk

8. NETCU, November 2007. Policing Protest: pocket legislation guide, p51. It can be viewed here: indymedia.org.uk

9. Mark Townsend and Nick Denning, 9th November 2008. Police warn of growing threat from eco-terrorists. The Observer.

10. Stephen Pritchard, 23rd November 2008. Anonymous sources and claims of eco-terrorism. The Observer

11. NETCU, pers comm, 22nd December 2008.

12. Mark Townsend and Nick Denning, ibid.

13. netcu.org.uk

14. Merrick Godhaven, 15th November 2008. Civil Disobedience is a Terrorist Threat. UK Watch.

15. Leading article, 12th March 2006. Email campaigns. The Observer.

16. Linda Harrison, 9th July 2001. Anti abortion activists step up UK Net campaign. theregister.co.uk

17. Jeremy Laurance, 8th May 2006. Anti-abortionist jailed for photo protest. independent.co.uk




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Tuesday, 23 December 2008

Can You See The Fog?


  

Links between financial crises and recessions are unalterably vague


KAUSHIK BASU
Until a few weeks ago there was no agreement among experts on whether or not a recession was imminent. Then last week, America's National Bureau of Economic Research—widely viewed as the final arbiter on such matters—declared that the recession is here. Not just that, it started in December 2007. So a recession, it seems, is not only unpredictable, but also cannot always be recognised when present. Clearly, this is not the high point of the economics profession.

The fact that this financial crisis came upon us with so little forewarning has led to a lot of criticism of economics as a discipline. Some of the criticism is valid, but not all. First, it needs to be appreciated that in economics a prediction itself can alter the object of the prediction. Hence, for certain kinds of economic phenomena, forecasting may be a logical impossibility. Consider predicting a fall in stock prices one month in advance. If anyone can actually master the art of doing this, then, as soon as the person makes this forecast, people will sell their shares and prices will come down immediately. So no one can have a reputation for predicting share price declines well in advance.

Second, in these troubling times, the demand is for economists who do not temporise but make clear statements, who do not waver about the causes of the crisis but are unequivocal. This, however, is the wrong lesson.

I am currently reading Jean-Jacques Rousseau's autobiography, Confessions. Poor fellow. When at last, in his late forties, he makes it as a man of letters, music composer, trenchant critic of 18th century European mores and, above all, the grand philosopher, his bladder gives way. Page after page, he laments about poor "urine retention" and how he cannot accept invitations from kings and dukes for fear that he may have to run, mid-conversation, to the loo. He sees the best doctors of France and Geneva. The medical diagnoses that follow (and are described in some detail) remind me of the pronouncements on the current crisis by finance experts. Notwithstanding the primitive knowledge of human anatomy, Rousseau's doctors prescribed confidence treatments that had no scientific basis.

The correct stance in such situations is to recognise that we do not understand. So for economists, now is the time to be sceptical and to question. Fortunately, scepticism is the mainspring of knowledge. It may not be entirely coincidental that at the same time that contributions to knowledge in ancient Greece peaked, the philosophy of scepticism was also at its height. Pyrrho of Ellis (circa 300 BC), the "apostle of disillusionment", lectured on the value of equivocation. Pyrrho's disciple, Timon, wrote about the essential ambiguity of nature. Later, circa 200 AD, Sextus Empiricus penned a series of books challenging traditional knowledge. This is clear from the titles of his many books—Against Dogmatists; Against the Physicists; Against the Ethicists; Against the Professors. He wrote more, but you get the point.

In economics the big open question is the connection between financial assets and the real economy. If one million rupee notes owned by a businessperson burns down, what will happen to the total amount of apples, homes and haircuts in the economy? Not only do we not have an answer to this question, we do not even have a methodology for answering it. Till we get to grips on this, the link between financial crises and recessions will remain ambiguous.

In this age of quick claims and hasty recognitions, our urge is for quick assertions. However, 'social phenomena' are inherently ambiguous. To ignore this is to court failure.

Postscript: Tenuous though its links may be with science and scholarship, and feeble though it may be in humour, let me end with the best account of ambiguity that I have heard.It consists of a husband's remark and how one may interpret it. After a lady was declared dead and was being carried out of the house in a coffin, the pall-bearers bumped into a wall, whereupon they heard a groan. The coffin was promptly set down and, lo and behold, the lady had not died. She was taken out and nursed back to health. Ten years passed, and then she died. Her corpse was placed in a coffin; and, as the pall-bearers carried it out, they heard her husband's anxious voice, "Mind the wall".




(Kaushik Basu is Chair and C. Marks Professor, Department of Economics, Cornell University)




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Monday, 22 December 2008

Financial crisis: Bank of England 'did not understand problem'


 

Financial crisis: Bank of England 'did not understand problem' 

 

The Bank of England underestimated the severity of the current financial crisis, according to its deputy governor who has admitted that interest rates are only a "blunt instrument" with which to control the economy.
 

Sir John Gieve told the BBC's Panorama programme, to be screened tonight, that new tools are needed to complement rates. He also admitted that the Bank knew "crazy borrowing" was taking place and the price of houses and other assets was rising unsustainably, but did not fully understand the problem.

 
"We didn't think it was going to be anything like as severe as it's turned out to be," says Gieve, who is in charge of financial stability at the Bank. "Why didn't we see that it was so serious? I think that's because we, perhaps, we hadn't kept pace with the extent of globalisation. So the upswing here didn't involve the big increases in earnings and consumption and activity which we saw in previous booms. We saw the credit, we saw the house prices, but we did see a fairly stable pattern of earnings, prices and output."

 
Explaining why the Bank did not raise interest rates to curb the lending and house price boom, Gieve says: "If we'd used interest rates to try and address this asset-price credit growth, we would have been holding down the level of activity elsewhere in the economy, in manufacturing, in other services, holding down the level of employment at a time when consumer price inflation and earnings were stable and reasonably low. And people would have said, you know, 'this is a wilful reduction in the prosperity of the country'."

 
The Bank cannot just rely on interest rates to control the economy, he argues. "One of the main lessons from this is that we need to develop some new instruments which sit somewhere between interest rates, which affect the whole economy and activity, and individual supervision and regulation of individual banks," Gieve says.

 
"Maybe we need to develop something which bridges that gap and directly addresses the financial cycle and prevents the financial cycle and the credit cycle getting out of hand ... I think we need to complement interest rates, which are a blunt instrument - you set one interest rate for the whole economy - with something which is more financial-sector specific."

 
"This is a major storm we haven't seen the like of for 100 years," he adds. "It would be very surprising if we weren't learning lessons from it and we are."

Gieve also casts doubt on whether the Treasury will get all of the money back that it has poured into the banking sector, pointing to a "level of defaults" in the books of nationalised lenders Northern Rock and Bradford & Bingley, which are now held by the taxpayer.

 
Speaking on the same programme, John Varley, the chief executive of Barclays, predicts that consumers and businesses will struggle to access credit for the next one to two years.


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Saturday, 20 December 2008

No Houris Inside Our Jails - Why Kasab must have legal defence and why he mustn't hang


 
 
......
Ram Jethmalani
 
Mohammad Ajmal Amir Kasab does not need a lawyer; someone in this country needs a client. That's why some lawyers seem to be amusing themselves imagining that Kasab sought their services and that they declined only to oblige Mother India.

In medieval times, witches were feared, despised and burnt by furious mobs. They never got a fair trial; no one dreamt of giving them one. Prejudice and irrational fear ensured that they got nothing but undeserved punishment.

In modern society, the "spy" has taken the place of the witch, with one vital difference. The danger so-called witches posed was entirely imaginary. Some spies do pose a threat. But to argue that a crime is so vile and dastardly that an accused must not be allowed to demonstrate his innocence is bad law. The measure of a civilisation is the way its society treats those it hates.

It is the duty of every lawyer to defy a bar association resolution that a particular accused should not be defended. So important is the right of an accused to have the services of a lawyer that our constitution-makers were not satisfied with the right to defence created by criminal law. They made it a fundamental right so that no tyrannical regime could curtail or destroy it. Article 22 declares that no accused shall be denied the right to consult and be defended by a legal practitioner of choice.

And the 42nd Amendment of the Constitution, carried out during the Emergency, introduced at least one wholesome provision. The newly-added Article 39-A mandated that the legal system shall provide free legal aid to ensure that opportunities for securing justice are not denied to any one by reason of economic or other disabilities.

When Thomas Paine was jailed and tried for treason for his pamphlet Rights of Man, the great advocate Thomas Erskine was briefed to defend him. Erskine, at that time, was the attorney-general for the Prince of Wales. Though he was allowed private practice, he was warned that if he accepted Paine's brief, he would be dismissed from office. Undeterred, Erskine accepted the brief and was deprived of office. His immortal words, which the editor of Howell's State Trials printed in capitals, stand out as a shining light:

"From the moment that any advocate can be permitted to say that he will or will not stand between the Crown and the subject arraigned in the Court where he daily sits to practice, from that moment the liberties of England are at an end. If the advocate refuses to defend from what he may think of the charge or of the defence, he assumes the character of the Judge; nay he assumes it before the hour of judgement; and in proportion to his rank and reputation puts the heavy influence of perhaps a mistaken opinion into the scale against the accused in whose favour the benevolent principle of English law makes all assumptions, and which commands the very Judge to be his Counsel."

Indian lawyers have followed this great tradition. The Razakars of Hyderabad were defended; Sheikh Abdullah and his co-accused were defended; and so were some of the alleged assassins of Mahatma Gandhi and Indira Gandhi. No Indian lawyer of repute has ever shirked responsibility on the ground that it will make him unpopular or affect the electoral prospects of his party.

The Bar Council of India has also formulated standards of professional conduct. Among other things, the resolution says that an advocate is bound to accept any brief; that anyone in need of a lawyer is entitled to one, whether or not he can pay for one; that an advocate shall uphold the interests of a client...without regard to any unpleasant consequences to himself or any other; and that an advocate shall defend an accused regardless of his opinion as to the guilt of the accused, bearing in mind that his loyalty is to the law, which requires that no man should be convicted without adequate evidence.

So, no doubt, Kasab has a right to defence. But what will the lawyer do? It does not seem to me possible for any lawyer or even a combination of lawyers seriously to dispute that he committed what he is accused of. The arguable question will be one of sentence—namely the choice between death and life imprisonment.

If I were a judge I wouldn't sentence Kasab to death. For it is only in the hell of an Indian jail that he would realise that what the mullahs told him is false. God has no place for him in heaven and probably none exists. His nine dead companions will not, in any event, communicate with him about their sad fate. A long stay in an Indian prison will detoxify him of the superstitions and illusions instilled in him.


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