India Central Bank Knowledge Base
Why isnt there a central bank clearning house for money? transfers from the Gulf, to any bank in India, any branch? Why only some of the banks have tie ups with some of the banks? Why doesnt India have a central clearing account like cheque clearing? It receives and disburses the money to the appropriate bank appropriate branch in India if sent by anybody in Gulf to India? Federal Reserve is US based. I meant something like Central bank of india to act as intermediary to receive all payments intended for any bank account in India then disburse them appropriately. Currently to send money to a canara bank account in India you need to approach different exchange, same for State Bank - you cannot use the Canara bank exchange to send to State Bank - people scratching the benches of Indian Parliament wasting 100 crores per session do the needful. fast.
What is the reason that Officer staff of Public Sector Bank are sitting late in the evening? There are discussions in public that the staff, particularly officer staff is sitting quite late & at times even after 10.00P.M. A person told that a Regional Head of a bank has instructed the Branch Managers to ensure that no officer staff should leave the office before 10.00P.M. Can any Regional head give such instructions? What is your observation about late sitting in PUBLIC SECTOR BANKS?. What is your observation about general working conditions of Bank Employees? Are they being paid less than their counter parts in STATE BANK OF INDIA, Central Governament, Other PUBLIC SECTOR ENTERPRISE. Whether at the time of FIXATION of wages & perquisites; the PSB' memployees must bear the burnts of DEBT WAIVER SCHEME?
Whether GOI is keeping Dollars as reserve fund with Central Bank of America? Its implications on Rupee value? RBI is keeping Gold as reserves for printing Indian currency. If India is keeping its surplus foreign currency in $ with USA then it is loosing its capital due to depreciation in value of $ vis-a-vis Rupee? Is India facing this situation? Why cann't India invest in purchase of other currencies which have a trend of appreciation in value? Raising CRR or reducing rate of interest on savings is not the right solution as it would result in financial crunch. and dishearten the domestic trade. Why cann't India use surplus foreign exchange to develop or procure items of Infrastructural support? Even if there is deficit financing or fiscial dificit, how is it adverse to our economic interest. USA is consistently using this method in its national economy. With Rupee going strong, why India is accelerating its policy of attaching no controls over valuation of currency when China is deliberately controling Yuan at under-rated value to serve its export policy and is trade surplus state.
In India which concern is dealing all debts owed by indian citizen at any foreign countries..? Is it RBI ..? or any other central banks..? or CBI like people ..? or Insurance agents assigned by foreign banks in india ..? to collect the debts owed by a resident and escaped to india. Is there any inter-pol involvement to deal the case or they can sue us legally by indian law..? Pls illustrate me clearly.... (my cousin is in deep trouble. how he can come out & to whom he can approach to get rid of them..?) Actually he was working in UAE, as his mother was serious, he came on Emergency leave & time extended due to the operation of his mother and he couldn't get back on time. He sent an resignation letter to his company by e-mail for their information. His presence is must by seeing his mother's condition. Now what will be his debts around Dhs.85 K (say nearly 10 lakhs of indian money) which he got as personal 1 year back and last 15 installments were paid on time. This was totally based on salary transfer loan UAE (dubai). Now what and all complications he would face...? Pls explain it in detail...
India, China to escape economic downturn: German economist? (The Hindu, Aug 10, 2006) India and China will escape the downturn that other countries in the world are expected to face, with Asian countries expected to grow by at least seven per cent and nine per cent respectively during the current fiscal, Deutsche Bank Chief Economist Norbert Walter said on Wednesday. Delivering a lecture on "World Economy--Longest Ever Recovery About to End?", Walter said he sympathises with the concerns expressed by the Reserve Bank over inflationary expectations in its quarterly review of the monetary policy. RBI had hiked interest rates, at which banks park their short term funds with the central bank and vice versa by 0.25 per cent each, leading to increase in interest rates by some banks. To make up for the slowing down of investment that certain interest rate sensitive areas may witness, India should facilitate pumping of funds in other areas, he suggested. source:http://www.zoomchina.com.cn/index.php?/content/view/11020/1/
This question pertains to Indians only. How the ICICI Bank is counted as bank in Private Sector? ICICI the abbrevation is from Industrial Credit and Investment Corporation of India, which was an financial institution under special ordnance act of Parliament. ICICI Bank must have definitely been created with major share of ICICI (a corporation of Government of India, under a special act). According to 617 of Companies Act, as I know, a Government Company is a company in which not less than 51% of the shares of company is held by Central Government, or State Government, or Central andState Government, or a Government Company owned by Central Govt. or State Govt. or Central and State put together, or the holding company of which is a Central Govt. or State Govt. of Central and State put together................... If this is the case, how various economists and business magazines quotes the ICICI Bank, as a Private Sector Bank. Any Company or body controlled by the Central or State Government is considered to be a Company or Bank or a body in Public Sector. Then why not ICICI Bank.
What if ICICI Bank goes bankrupt? I am aware of the fact that in USA, banks (not all of them though) are insured with FDIC upto $100,000 for every account and incase of bank filing bankruptcy, every individual account is covered for $100K. What is the similar situation in India for the Banks? Especially the ICICI bank, does it have such an insurance policy for account holders? How safe is the money in ICICI (provided that the bank will go into bankruptcy all of a sudden)? I appreciate if someone could shed some light on the above questions especially with ICICI (since this is the central point of concerns today in India) and can show us some websites where the legalities of such issues are discussed (for India). Thank you guys in advance..
JESUS LIVED IN INDIA -with PROOF? Yes Jesus lived in India. You have got the right information. At the time of Jesus there were two major currents or sects within Judaism: the Pharisees and the Sadducees. The Pharisees were extremely concerned with strict external observance of their interpretation of the Mosaic Law, ritual worship, and theology. The Sadducees, on the other hand, were very little concerned with any of these and tended toward a kind of genteel agnosticism. Today these two groups might be compared with the Orthodox and the Reformed branches of Judaism respectively. There was also a third sect which both was and was not part of Judaism. They were the Essenes, whose very name means "the Outsiders."1 Whether they chose this name for themselves or whether it was applied to them by the disdainful Pharisees and Sadducees is not known. But that they were incongruent (even incompatible) to the normal life of Israel at that time is certainly known. Their claims about their very existence was a controversial matter. For the Essenes averred that Moses had created them as a secret fraternity within Judaism, with Aaron and his descendents at their head. The prophet Jeremiah was a Master of the Essenes, and it was in his lifetime that they ceased to be a secret society and became a public entity. From that time many of the Essenes began living in communities. Isaiah and Saint John the Baptist were also Masters of the Essenes. Their purpose was to follow a totally esoteric religious philosophy and practice that was derived from the Egyptian Mysteries. As the grandson of the Pharaoh, Moses had been an initiate of those Mysteries and destined to ultimately become the head of the Egyptian religion.2 These Mysteries were themselves derived from the religion of India: Sanatana-or Arya-Dharma.3 Because of this the Essenes had always maintained some form of contact and interchange with India-a fact that galled their fellow Israelites. Regarding this, Alfred Edersheim, in his nineteenth century classic The Life and Times of Jesus the Messiah, wrote: "Their fundamental tendency was quite other than that of Pharisaism, and strongly tinged with Eastern elements." The reality of this contact with India is shown in the Zohar (2:188a-b), a compilation of ancient Jewish mystical traditions and the major text of the Jewish Kabbalah. It contains the following incident regarding the knowledge of an illumined Rabbi concerning the religion of India and the Vedic4 religious rite known as the Sandhya, which is an offering of prayers at dawn and sunset for enlightenment. "Rabbi Yose and Rabbi Hiyya were walking on the road. While they were walking, night fell; they sat down. While they were sitting, morning began to shine; they rose and walked on. Rabbi Hiyya said, 'See, the face of the East, how it shines! Now all the children of the East [in India], who dwell in the mountains of light [the Himalayas], are bowing down to this light, which shines on behalf of the sun before it comes forth, and they are worshipping it....Now you might say: 'This worship is in vain!' but since ancient, primordial days they have discovered wisdom through it." Their contact and interchange with Indian religion-Brahminical practices in particular-were manifested in several ways among the Essenes: 1) They practiced strict non-violence. 2) They were absolute vegetarians and would not touch alcohol in any form. Nor would they eat any food cooked by a non-Essene. (Edersheim says: "Its adherents would have perished of hunger rather than join in the meals of the outside world.") 3) They refused to wear anything of animal origin, such as leather or wool, usually making their clothes of linen. 4) They rejected animal sacrifice, insisting that the Torah had not originally ordered animal sacrifice, but that its text had been corrupted-in regard to that and many other practices as well. Their assertion was certainly corroborated by passages in the scriptures such as: "Will I eat the flesh of bulls, or drink the blood of goats?"5 "To what purpose [is] the multitude of your sacrifices unto me? saith the Lord:...I delight not in the blood of bullocks, or of lambs, or of he goats."6 "For I spake not unto your fathers, nor commanded them in the day that I brought them out of the land of Egypt, concerning burnt offerings or sacrifices."7 The quotations from Isaiah are particularly relevant since he was himself the Master of the Essenes. It was the Essenes' contention that the "animals" originally offered in sacrifice were symbolic effigies of animals that represented the particular failing or fault from which the offerer wished to be freed. (Appollonius of Tyana taught this same thing in relation to the ancient Greek sacrifices, and urged a return to that form. Long before that, in India dough effigies were offered in "sacrifice."8) In the Essene practice, each person molded the effigies with his own hands, while praying and concentrating deeply on the traits he wished to have corrected, feeling that it was being transferred into the image. The effigies were made of five substances: powdered frankincense, flour, water, olive oil, and salt. When these had dried, they were taken to the tabernacle whose altar was a metal structure with a grating over the top and hot coals within. The effigies were laid upon this grating and burnt by the intense heat. As they burned, through the force of the heat the olive oil and frankincense liquefied and boiled or seeped upward. This fragrant liquid was called "the blood" of the sacrifice. It was this with which Moses consecrated the tabernacle, its equipment, and the priests,9 not animal blood. And it was just such a "lamb" whose "blood" was sprinkled on the doorposts in Egypt.10 For the Passover observance, the Essenes would bake a lamb effigy using the same ingredients-except for the frankincense they would substitute honey and cinnamon. (Or, lacking honey, they would use a kind of raisin syrup.) This was the only paschal lamb acceptable to them-and therefore to Jesus and His Apostles. Consequently, the Essenes refused to worship in Jerusalem, but maintained their own tabernacle on Mount Carmel. They did not have an actual building on Mount Carmel, but a tent-tabernacle made according to the original directions given to Moses on Mount Sinai. They considered the Jerusalem temple unacceptable because it was a stone structure built according to Greco-Roman style rather than the simple and humble tabernacle form given to Moses-a form that symbolized both the physical and psychic makeup of the human being. Further, the Jerusalem temple was built by Herod who, completely subservient to Rome, disdained Judaism and practiced a kind of Roman agnostic piety. Because of this the temple was ritually unclean in their estimation. They placated the Jerusalem Temple priests by sending them large donations of money. On occasion they gave useful animals to the Temple in Jerusalem, but only with the condition that they would be allowed to live out their natural span of life. 5) They interpreted the Torah and other Hebrew scriptures in an almost exclusively spiritual, symbolic, and metaphysical manner (as did the Alexandrian Jewish philosopher Philo). They also had esoteric writings of their own which they would not allow non-Essenes to see. But even more objectionable to the other Hebrews was their study and acceptance of "alien" scriptures-the holy books of other religions-so much so that an official condemnation was made of this practice. In contrast to all those around them, the Essenes held a universal, eclectic view of religion. 6) Celibacy was prized by them, being often observed even in marriage, and many of them led monastic lives of total renunciation. 7) They considered their male and female members-all of whom were literate-to be spiritual equals, and both sexes were prophets and teachers among them. This, too, was the practice in Hinduism at that time, women also wearing the sacred thread. 8) They denied the doctrine of the physical resurrection of the dead at the end of time, which was held by some Pharisees-who usually believed in reincarnation-and later became a tenet of Mediterranean Christianity. 9) They believed in reincarnation and the law of karma and the ultimate reunion of the soul with God. This is clearly indicated by the Apostles asking Jesus about a blind man: "Master, who did sin, this man, or his parents, that he was born blind?"11 10) They believed that the sun was a divine manifestation, imparting spiritual powers to both body and mind. They faced the rising and setting sun and recited prayers of worship, refusing, upon rising in the morning, to speak a single word until the conclusion of those prayers. They did not consider the sun was a god, but a symbol of the One God of Light and Life. It was, though, felt that appropriate prayers directed toward the sun would evoke a divine response. (See Jesus' words to the king of Kashmir as recorded in the Bhavishya Maha Purana that are given later on.) 11) They believed in both divination and the powers of prophecy. 12) They believed in the power of occult formulas, or mantras,12 as well as esoteric rituals, and practiced theurgy (spiritual "magic") with them. 13) They believed in astrology, cast horoscopes, and made "magical" amulets of plants and gems according to astrological aspects. They also believed that angels had taught Moses the practice of herbalism. 14) They believed that miraculous cures were natural extensions of authentic spiritual life. 15) They would wear only white clothes13 as a sign that they worshipped God Who is Light and were clothed by Him in light. This so provoked the other Israelites that praying in white clothing was prohibited by the Pharisees and Sadducees, and laws were drafted accordingly. (The Mishnah begins with such a prohibition.) 16) They observed the identical rules of purity (shuddhi) as the Brahmins in India at that time, especially in the matter of bathing frequently. 17) They practiced the strictest adherence to truthfulness.14 It should also be noted that most of these Brahminical practices were observed by Buddhists as well, so it is not out of place to consider that the Essenes-and Jesus and His disciples-possessed the qualities of both Hindu and Buddhist religion. From all this we can see why Edersheim states that "In respect of doctrine, life, and worship, it [the Essene community] really stood outside Judaism." As a result of these differences from ordinary Judaism, the Essenes lived totally apart from their fellow Hebrews, usually in separate communities or in communal houses in the towns and cities. (The supposed "communal experiment" in the book of Acts15 was really a continuation of the Essene way of life. The Last Supper took place in just such an Essene "house.") The History of Isha Messiah-Jesus the Christ16 Among the Essenes of Israel at the threshold of the Christian Era, none were better known or respected than Joachim and Anna of Nazareth. Joachim was noted for his great piety, wealth, and charity. The richest man in Israel, his practice was to divide his increase into thirds, giving one third to the temples of Carmel and Jerusalem and one third to the poor, keeping only one third for himself. Anna was renowned as a prophetess and teacher among the Essenes. Their daughter Mary [Miryam], Who had been conceived miraculously beneath the Holy of Holies of the Temple, had passed thirteen years of Her life as a Temple Virgin until her espousal to Joseph of Nazareth. Before their marriage was performed, She was discovered to have conceived supernaturally, and in time She gave birth to a Son in a cave of Bethlehem. His given name was Jesus (Yeshua in Aramaic and Yahoshua in Hebrew). This Son of Miryam was as miraculous as His Mother, and astounding wonders were worked and manifested daily in His life-for the preservation of which His parents took Him into Egypt for some years where they lived with the various Essene communities there. But before that flight, when the Child had been about three years old, sages from India17 had come to pay Him homage and to establish a link of communication with Him, for His destiny was to live most of His life with them in the land of Eternal Dharma before returning to Israel as a messenger of the very illumination that had originally been at the heart of the Essene order. Through the intermediary of merchants and travellers both to and from India, contact was maintained with their destined Disciple. At the age of twelve, during the passover observances on Mount Carmel (not in Jerusalem), Jesus petitioned the elders of the Essenes for initiation-something bestowed only on adults after careful instruction and scrutiny. Because of His well-known supernatural character, the elders examined Him before all those present. Not only could He answer all their questions perfectly, when the examination was ended He began to examine them, putting to them questions and statements that were utterly beyond their comprehension. In this way He demonstrated that the Essene order had nothing whatever to teach Him, and that there was no need for Him to undergo any initiation or instruction from them. Upon His return to Nazareth preparations were begun for His journeying into India to formally become a disciple of those Masters who had come to Him nine years before. The necessary preliminaries took something more than a year, but sometime between the age of thirteen or fourteen,18 Jesus of Nazareth set forth on a spiritual pilgrimage that would transform Jesus the Nazarene into Isha the Lord, the Teacher of Dharma and Messiah of Israel. The spiritual training of Jesus In the Himalayan fastnesses Jesus was instructed in yoga and the highest spiritual life, receiving the spiritual name "Isha," which means Lord, Master, or Ruler, a descriptive title often applied to God, as in the Isha Upanishad. Isha is also a particular title of Shiva.19 The worship of Shiva centered in the form of the natural elliptical stone known as the Shiva Linga (Symbol of Shiva) was a part of the spiritual heritage of Jesus, for His ancestor Abraham, the father of the Hebrew nation, was a worshipper of that form. The Linga which he worshipped is today enshrined in Mecca within the Kaaba. The stone, which is black in color, is said to have been given to Abraham by the Archangel Gabriel, who instructed him in its worship. Such worship did not end with Abraham, but was practiced by his grandson Jacob, as is shown in the twenty-eighth chapter of Genesis. Unwittingly, because of the dark, Jacob used a Shiva Linga for a pillow and consequently had a vision of Shiva standing above the Linga which was symbolically seen as a ladder to heaven by means of which devas (shining ones) were coming and going. Recalling the devotion of Abraham and Isaac, Shiva spoke to Jacob and blessed him to be an ancestor of the Messiah. Upon awakening, Jacob declared that God was in that place though he had not realized it. The light of dawn revealed to him that his pillow had been a Shiva Linga, so he set it upright and worshipped it with an oil bath, as is traditional in the worship of Shiva, naming it (not the place) Bethel: the Dwelling of God. (In another account in the thirty-fifth chapter, it is said that Jacob "poured a drink offering thereon, and he poured oil thereon." This, too, is traditional, both milk and honey-which Shiva promised Moses would flow abundantly in Israel-being poured over the Linga as offerings.) From thenceforth that place became a place of pilgrimage and worship of Shiva in the form of the Linga stone. Later Jacob had another vision of Shiva, Who told him: "I am the God of Bethel, where thou anointedst the pillar, and where thou vowedst a vow unto me."20 A perusal of the Old Testament will reveal that Bethel was the spiritual center for the descendants of Jacob, even above Jerusalem. Although this tradition of Shiva [Linga] worship has faded from the memory of the Jews and Christians, in the nineteenth century it was evidenced in the life of the stigmatic Anna Catherine Emmerich, an Augustinian Roman Catholic nun. On several occasions when she was deathly ill, angelic beings brought her crystal Shiva Lingas which they had her worship by pouring water over them. When she drank that water she would be perfectly cured. Furthermore, on major Christian holy days she would have out-of-body experience in which she would be taken to Hardwar, a city sacred to Shiva in the foothills of the Himalayas, and from there to Mount Kailash, the traditional abode of Shiva, which she said was the spiritual heart of the world. Isha's life in India For the next few years the Himalayas became Jesus' well-travelled home. During part of that time Jesus meditated in a cave north of the present-day city of Rishikesh, one of the most sacred locales of India, and also on the banks of the Ganges in the holy city of Hardwar. In the years He spent in the Himalayas, He attained the supreme heights of spiritual realization. Having attained perfect inner wisdom in the Himalayas, Jesus journeyed to the Gangetic plain to engage in the formal study that would prepare Him for the public teaching of Sanatana Dharma both in India and in the countries between India and Israel as well as in Israel itself. First he went to live in Benares, the spiritual heart of India, the city most consecrated to the worship of Shiva and the major center of Vedic learning in all of India. During His time in the Himalayas, Jesus' endeavors had been centered almost exclusively on the practice of yoga. In Benares Jesus engaged in intense study of the spiritual teachings embodied in the Vedic scriptures-especially the books of spiritual philosophy known as the Upanishads. He then journeyed to the sacred city of Jagannath Puri, which at that time was a great center of the worship of Shiva, second only to Benares. In Puri Jesus officially adopted the monastic life and lived some time as a member of the Govardhan Math,21 the monastery founded three centuries before His birth by the foremost philosopher-saint of India known as Adi Shankaracharya.22 There He perfected the synthesis of yoga, philosophy, and renunciation, and eventually began to publicly teach the Eternal Knowledge. As a teacher Jesus was as popular as He was proficient in teaching, and gained great notoriety among all levels of society. However, because He insisted that all men should learn and be taught the meaning of the Vedas and their allied scriptures and began teaching the "lower" castes accordingly, as well as teaching that all could attain spiritual perfection without the intermediary of external, ritualized religion, He incurred the hatred of many religious "professionals" in Puri who began to plot His death. Since "His hour was not yet come,"23 He left Puri and returned to the Himalayas where He again spent quite some time in meditation, preparing Himself for His return to Israel. He also lived in various Buddhist monasteries in the Himalayan region, studying the wisdom of the Buddha. Before beginning the long journey westward, instructions were given Him regarding His mission in the West and the way messages could be sent between Jesus and His Indian teachers. Jesus was aware of the form and purpose of His life and death from His very birth, but it was the Indian Masters who made everything clear to Him regarding them. They promised Jesus that He would be sent a container of Himalayan Balsam to be poured upon His head by a close disciple as a sign that His death was imminent, even "at the door." When Saint Mary Magdalene performed this action in Bethany, Jesus understood the unspoken message, saying: "She is come aforehand to anoint my body to the burying."241 Return to the West Jesus then set forth on His return journey to Israel with the blessings of the Masters to thenceforth be a Dharmacharya,25 a missionary of Arya Dharma to the Mediterranean world, which at that time was "the West." All along His way, Jesus taught those who were drawn to His spiritual magnetism and who sought His counsel in the divine life. He promised that after some years He would be sending them one of His disciples who would give them even more knowledge and benefit. Arriving in Israel, Jesus went directly to the Jordan where his cousin John, the Master of the Essenes, was baptizing. There His Christhood was revealed to John and those who had "the eyes to see and the ears to hear."26 In this way His brief mission to Israel was begun. Its progress and conclusion are well known, so we need not recount it here except to rectify one point after the next section. Misunderstanding becomes a religion Throughout the Gospels we see that the disciples of Jesus consistently misunderstood his speaking of higher spiritual matters. When he spoke of the sword of wisdom they showed him swords of metal to assure him they were well equipped.27 When he warned them against the "leaven" of the Scribes and Pharisees they thought he was complaining that they did not have any bread.28 Is it any wonder, then that he said to them: "Perceive ye not yet, neither understand? have ye your heart yet hardened? Having eyes, see ye not? and having ears, hear ye not? How is it that ye do not understand?"29 Even in the moment of his final departure from them, their words showed that they still believed the kingdom of God was an earthly political entity and not the realm of spirit.30 This being so, the Gospels themselves must be approached with grave caution and with the awareness that Jesus was not the creator of a new religion, but a messenger of the Sanatana Dharma, the Eternal Religion he had learned in India. As a priest of the Saint Thomas Christian Church of South India once commented to me: "You cannot understand the teachings of Jesus if you do not know the scriptures of India." And if you do know the scriptures of India you can see where-however well-intentioned they may have been-the authors of the Gospels often completely missed the point and garbled the words and ideas they heard from Jesus, even attributing to him incidents from the life of Buddha (such as the Widow's Mite) and mistaking his quotations from the Upanishads, the Bhagavad Gita and the Dhammapada for doctrines original to him. For example, the opening verse of the Gospel of John, which has been cited through the centuries as proof of the unique character and mission of Jesus, is really a paraphrase of the Vedic verse: "In the beginning was Prajapati, with Him was the Word, and the Word was truly the Supreme Brahman."31 Having confused Christ with Jesus, things could only go downhill for them and their followers until the true Gospel of Christ was buried beneath two millennia of confusion and theological debris. Return to India-not ascension It is generally supposed that at the end of His ministry in Israel Jesus ascended into heaven. But Saint Matthew and Saint John, the two Evangelists that were eye-witnesses of His departure, do not even mention such a thing, for they knew that He went to India after departing from them. Saint Mark and Saint Luke, who were not there, simply speak of Jesus being taken up into the heavens. The truth is that He departed into India, though it is not unlikely that He did rise up and "fly" there. This form of travel is not unknown to the Indian yogis. That Jesus did not leave the world at the age of thirty-three was written about by Saint Irenaeus of Lyon in the second century. He claimed that Jesus lived to be fifty or more years old before leaving the earth, though he also said that Jesus was crucified at the age of thirty-three. This would mean that Jesus lived twenty years after the crucifixion. This assertion of Saint Irenaeus has puzzled Christian scholars for centuries, but if we put it together with other traditions it becomes comprehensible. Basilides of Alexandria, Mani of Persia, and Julian the Emperor said that Jesus had gone to India after His crucifixion. Some Buddhist historical records about Jesus A contemporary written record of the life and teachings of Jesus in India was discovered in 1887 by the Russian traveler Nicholas Notovitch during his wanderings in Ladakh. He had it translated from the Tibetan text (the original, kept in the Marbour monastery near Lhasa, was in Pali) and, despite intense opposition from Christians in Russia and Europe, published it in his book The Unknown Life of Jesus Christ.32 As would be expected, the authenticity of Notovitch's book was attacked33 and various articles written claiming that the monks of the Himis monastery, where Notovitch had found the manuscript, told investigators that they knew nothing of Notovitch or the text. But both Swami Abhedananda and Swami Trigunatitananda-direct disciples of Sri Ramakrishna34 and preachers of Vedanta35 in America-went at separate times to the Himis monastery. The monks there not only assured them that Notovitch had spent some time in the monastery as he claimed, they also showed them the manuscript-part of which they translated for Swami Abhedananda, who knew from having read Notovitch's book that it was indeed the same writing found in The Unknown Life of Jesus Christ. Subsequently, Abhedananda had the English translation of Notovitch's text printed in India where the Christian authorities had until then prohibited both its publication or its importation and sale. Swami Trigunatitananda not only saw the manuscript in Himis, he also was shown two paintings of Jesus. One was a depiction of His conversation with the Samaritan Woman at the well. The other was of Jesus meditating in the Himalayan forest surrounded by wild beasts that were tamed by His very presence. A copy made from his description is reproduced on the cover of this booklet. Later, Dr. Nicholas Roerich, the renowned scholar, philosopher, artist, and explorer, traveled in Ladakh and also was shown the manuscript and assured by the monks that Jesus had indeed lived in several Buddhist monasteries during His "lost years." He wrote about his own viewing of the scrolls in his book The Heart of Asia. In 1921 the Himis monastery was visited by Henrietta Merrick who, in her book In the World's Attic tells of learning about the records of Jesus' life that were kept there. She wrote: "In Leh is the legend of Jesus who is called Issa, and the Monastery at Himis holds precious documents fifteen hundred years old which tell of the days that he passed in Leh where he was joyously received and where he preached." In 1939 Elizabeth Caspari visited the Himis monastery. The Abbot showed her some scrolls, which he allowed her to examine, saying: "These books say your Jesus was here." Robert Ravicz, a former professor of anthropology at California State University at Northridge, visited Himis in 1975. A Ladakh physician he met there spoke of Jesus' having been there during His "lost years." In the late 1970s Edward Noack, author of Amidst Ice and Nomads in High Asia, and his wife visited the Himis monastery. A monk there told him: "There are manuscripts in our library that describe the journey of Jesus to the East." Toward the end of this century the diaries of a Moravian Missionary, Karl Marx, were discovered in which he writes of Notovitch and his finding of scrolls about "Saint Issa." (Marx's diaries are kept in the Moravian Mission museum. The pages about Notovitch and the scrolls have "disappeared" and their existence is now denied in an attempt to discredit Notovitch, but before their disappearance they were photographed by a European researcher and have been made public.) From all this testimony we see that Jesus studied the Buddhist Dharma as well as the Hindu Dharma during His life in India. Notovitch also claimed that the Vatican Library had sixty-three manuscripts from India, China, Egypt, and Arabia-all giving information about Jesus' life. In 1812, Meer Izzut-oolah, a Persian, was sent to Ladakh and central Asia by the East India Company. Though religion was not his mission, he observed much and subsequently wrote in his book Travels in Central Asia: "They keep sculptured representations of departed saints, prophets and lamas in their temples for contemplation. Some of these figures are said to represent a certain prophet who is living in the heavens, which would appear to point to Jesus Christ." When Swami Abhedananda was in the Himis monastery doing his research on the records of Jesus life in India he was told by the abbot that Jesus had not departed from the earth at the time His Apostles saw Him ascend, but that He had returned to India where he lived with the Himalayan yogis for many years. The Nathanamavali The Bengali educator and patriot, Bipin Chandra Pal, published an autobiographical sketch in which he revealed that Vijay Krishna Goswami, a renowned saint of Bengal and a disciple of Sri Ramakrishna, told him about spending time in the Aravalli mountains with a group of extraordinary ascetic monk-yogis known as Nath Yogis. The monks spoke to him about Isha Nath, whom they looked upon as one of the great teachers of their order. When Vijay Krishna expressed interest in this venerable guru, they read his life as recorded in one of their sacred books, the Nathanamavali.36 It was the life of Him Whom the Goswami knew as Jesus the Christ! Here is the relevant portion of that book: "Isha Natha came to India at the age of fourteen. After this he returned to his own country and began preaching. Soon after, his brutish and materialistic countrymen conspired against him and had him crucified. After crucifixion, or perhaps even before it, Isha Natha entered samadhi by means of yoga.37 "Seeing him thus, the Jews presumed he was dead, and buried him in a tomb. At that very moment however, one of his gurus, the great Chetan Natha, happened to be in profound meditation in the lower reaches of the Himalayas, and he saw in a vision the tortures which Isha Natha was undergoing. He therefore made his body lighter than air and passed over to the land of Israel. "The day of his arrival was marked with thunder and lightning, for the gods were angry with the Jews, and the whole world trembled. When Chetan Natha arrived, he took the body of Isha Natha from the tomb, woke him from his samadhi, and later led him off to the sacred land of the Aryans. Isha Natha then established an ashram in the lower regions of the Himalayas and he established the cult of the lingam there."38 This assertion is supported by two relics of Jesus which are presently found in Kashmir. One is His staff, which is kept in the monastery of Aish-Muqan and is made accessible to the public in times of public catastrophe such as floods or epidemics. The other is the Stone of Moses-a Shiva linga that had belonged to Moses and which Jesus brought to Kashmir. This linga is kept in the Shiva temple at Bijbehara in Kashmir. One hundred and eight pounds in weight, if eleven people put one finger on the stone and recite "Ka" over and over, it will rise three feet or so into the air and remain suspended as long as the recitation continues.39 "Shiva" means one who is auspicious and gives blessings and happiness. In ancient Sanskrit the word ka means to please and to satisfy-that which Shiva does for His worshippers. The Bhavishya Maha Purana One ancient book of Kashmiri history, the Bhavishya Maha Purana, gives the following account of the meeting of a king of Kashmir with Jesus sometime after the middle of the first century: "When the king of the Sakas came to the Himalayas, he saw a dignified person of golden complexion wearing a long white robe. Astonished to see this foreigner, he asked, 'Who are you?' The dignified person replied in a pleasant manner: 'Know me as Son of God [Isha Putram], or Born of a Virgin [Kumarigarbhasangbhawam]. Being given to truth and penances, I preached the Dharma to the mlecchas....O King, I hail from a land far away, where there is no truth, and evil knows no limits. I appeared in the country of the mlecchas as Isha Masiha [Jesus Messiah] and I suffered at their hands. For I said unto them, '"Remove all mental and bodily impurities. Remember the Name of our Lord God. Meditate upon Him Whose abode is in the center of the sun."'40 There in the land of mleccha darkness, I taught love, truth, and purity of heart. I asked human beings to serve the Lord. But I suffered at the hands of the wicked and the guilty. In truth, O King, all power rests with the Lord, Who is in the center of the sun. And the elements, and the cosmos, and the sun, and God Himself, are forever. Perfect, pure, and blissful, God is always in my heart. Thus my Name has been established as Isha Masiha.' After having heard the pious words from the lips of this distinguished person, the king felt peaceful, made obeisance to him, and returned."41 The word mleccha is a powerfully derogatory term meaning one who is unclean, barbaric and abhorrent, an alien to all that is good and true. A mleccha is execrable on all levels of his being. The fact that Jesus would refer the Israelites themselves as "mlecchas" and Israel as "the land of the mlecchas...where there is no truth, and evil knows no limits...the land of mleccha darkness" indicates that He in no way identified with either the people or the religion of Israel. He was fully a Sanatana Dharmi-follower of the Eternal Dharma. Another Kashmiri history, the Rajatarangini, written in 1148 A.D., says that a great saint named Issana lived at Issabar on the bank of Dal Lake and had many disciples, one of which he raised from the dead. When teaching in Israel, Jesus told the people: "Other sheep I have, which are not of this fold,"42 speaking of His Indian disciples. For when Jesus came to the Jordan at the beginning of His ministry, He had spent more years of His life in India than in Israel. And He returned there for the remainder of His life, because in all things He was a Son of India-the Christ of India.43 This is the cave north of Rishikesh in which Sri Isha lived for some time. In the last century both Swami Rama Tirtha and Swami (Papa) Ramdas lived there (at separate times), and had visions of Isha meditating there, though they had no prior knowledge of His having lived there.
Currency Note / Bill Bundling? In India the Currency Notes are bundled in 100 pieces and stictched or banded togther into bundles. The Central Bank of the country called the Reserve Bank of India has now issued instructions not to pierce the bundles. But due to lack of confidence even banks continue to do the same today. How do other countries bundle their currency notes/bills? I do not find even a single piercing in dollar bundles. Do they just band it? Or they have some other method to keep bundles of money togther. In India just banding do not
I have several pieces of old currency from several countries around the world and want them appraised? 1. Central Bank Of Barbados One Dollar qty:4 Five Dollar qty:1 Twenty Dollar qty: 1 2.United Arab Emirates Currency Board Five Dirhams qty:2 3.Bank Of Ghana Ten Cedis qty:1 4.Banco De Espana 100 Cien Pesetas qty:1 5.Saudi Arabian Monetary Agency One Riyal qty:1 6.Banco Central De Honduras Un Lempira qty:1 7.Reserve Bank Of India Five Rupees qty:1 8.Bahrain Monetary Agency One Dinar qty:2 Half Dinar qty:2 9.Banque Du Canada Un Dollar qty:1 10.Repvbblica Italiana Cinquecento 500 Lire Cinquecento qty:1 Can you please tell me how to get these appraised and where to go?
Why are Buddhists and Hindus killing each other in Sri Lanka which is known as the home of the suicide bomber? Tamil Tigers have staged two thirds of all the suicide bombings in the world. Tamil Tigers are driven by ethnonationalism. In the case of the Tamil Tigers, they go for civilian (Central Bank, Maradana, etc.) as well as infrastructure (airport, port, World Trade Centre, Colombo) targets. In an interview with FRONTLINE/World, a Sri Lankan newspaper editor described the Tamil Tigers' process of taking young orphans and refugees off to a hidden area in the jungle where they are given special status and primed to become suicide bombers. At the moment, the Tamil Tigers are continuing to recruit, raise funds, arm, and train Tamil youth, including children. Although verbally the LTTE has agreed to negotiate towards an end to violence, in terms of their actions or deeds we have yet to see sincerity. Unless the Norwegian facilitators/negotiators link devolution of power to decommissioning, the LTTE will try to strengthen themselves militarily and violate the cease-fire and return to conflict as they did before both with the Government of India and two Sri Lankan administrations previously.
Have you play : Second Life ? Economy ? The Coming Second Life Business Cycle By Matthew Beller Posted on 8/2/2007 | Subscribe or Tell Others | Matthew Beller's Second Life avatar, designed to resemble Ludwig von Mises Ludwig von Mises once wrote that an economist "must be conversant with mathematics, physics, biology, history, and jurisprudence, lest he confuse the tasks and the methods of the theory of human action with the tasks and the methods of any of these other branches of knowledge." In modern times, with the increasing popularity of computer-based interactive virtual worlds, it may soon be necessary for economists to familiarize themselves with the intricacies of virtual reality, lest they confuse the tasks and the methods of real-world economics with those that apply to virtual reality. Some economists might dismiss virtual worlds as an application for economics, given that they do not contain any resources that are traditionally considered scarce (lumber, steel, oil, etc.), but a closer inspection reveals that some virtual worlds contain real market economies complete with scarce resources, property rights, entrepreneurship, and exchange. Furthermore, real people underlie the inhabitants of virtual worlds, so we can therefore analyze their economies using Austrian economics and the science of human action. One virtual world that is currently popular is called Second Life. Second Life was created by the San Francisco-based company Linden Research, Inc. and opened in 2003. It is an Internet-based three-dimensional virtual world where its 8 million unique residents can interact with one another.[1] Residents can create virtual clothing, hairdos, houses, airplanes, concert halls, video games, and endless other items by using an infinite supply of "primitives," which are atomistic objects that can be shaped, colored, combined, and programmed to behave in a particular way. Residents can then replicate their creations and sell the copies to one another at whatever price they set. Second Life has attracted attention from Wired Magazine, The Economist, and other media with stories of a burgeoning economy and entrepreneurs earning their sole incomes by selling virtual goods and services. Accordingly, real-world economists and Second Life's residents alike could benefit from a closer look into the actual workings of its economy, and the effects of economic intervention. Second Life's economy could reasonably be compared to that of a small foreign country dependent on tourism. Consumers are inhabitants of the real world who take what are essentially pleasure trips to Second Life, perhaps to meet new people at a dance club, shop for virtual clothing, attend a conference, or gamble at a casino. Like real tourists, consumers exchange their real US dollars for Second Life's currency, the Linden Dollar (L$), typically on a currency exchange run by Linden, called the LindeX. They then use their L$ to purchase goods and services created by other Second Life residents, and if they have extra L$ when they're done, they can sell their L$ for US$ on the LindeX. Linden, essentially representing the state in Second Life's economy, does not generally interfere with economic activity. The Economist reports on Linden founder Philip Rosedale's attitude toward intervention, "Mr. Rosedale prefers to rule Second Life with Adam Smith's 'invisible hand' only. To him that means treating every resident the same, whether it happens to be Toyota or 'an 80-year-old woman from India.' Both will pay the same price for their [virtual land]; what they do with it is up to them." Proponents of private property and non-intervention would certainly laud such a hands-off policy. If Linden's goal is to create a setting for a stable, growing economy that will provide the most satisfaction to the most residents, it must avoid the pitfalls of interventionism that plague real-world economies. As Ludwig von Mises and others have shown, one interventionist policy creates distortions that must be fixed by other interventionist policies, which lead to problems that require further intervention, and so on, until the state controls every aspect of the economy. Unfortunately, despite Mr. Rosedale's free-market rhetoric, a look at Linden's actual practices reveals that it has already started down the path of intervening in the economy. One critical example of Linden's intervention is that it has granted itself the ability to manipulate the single-most important commodity in any economy: money. In the Terms of Service, the L$ is defined as "a limited license right available for purchase or free distribution at Linden Lab's discretion, and is not redeemable for monetary value from Linden Lab." By defining the L$ in such a way, Linden has granted itself the power of a central bank in managing Second Life's equivalent of a fiat currency. Linden can create as many new L$ as it wants, whenever it wants, and spend them or give them away at its own discretion. Also, because Linden maintains a peg of about L$270=US$1 on the LindeX, it gives the appearance that the L$ is as good as real-world money. Fiat currencies are subject to much criticism, particularly by Austrians. However, they are not criticized because they cause undesirable economic distortions in and of themselves. Rather, they are criticized because, unlike commodity monies such as gold, they can be created from nothing, so are highly susceptible to artificial expansion and manipulation. This expansion, as the Austrian theory of the business cycle shows us, is the source of economic distortions that lead to unsustainable booms, followed by inevitable busts. To establish whether Linden has in fact been manipulating the L$ supply and determine if Second Life is susceptible to bust, we can examine historical economic statistics published by Linden for signs of artificial growth in the L$ supply. The graph below shows Second Life's L$ supply since September of 2005, as well as the two consolidated sources of month-to-month changes in the money supply. Your eye might be drawn to the sudden acceleration in L$ growth at the end of 2006 coincident with a significant increase in LindeX sales (where Linden is creating new L$ and selling them for US$), but that is not necessarily a bad thing. Ignoring the problems with the US$, LindeX sales represent inflows of real wealth into Second Life. When residents purchase L$ on the LindeX using US$ that they have earned in the real world, they are foregoing consumption in the real world in order to spend or invest their newly purchased L$ in Second Life. It is actually the small, perpetual budget deficit that reveals something quite sinister. Unlike L$ sales on the LindeX, they do not reflect a flow of real wealth into Second Life. Instead, they are created by Linden to represent wealth, but no economic production was involved in creating them. These deficits occur when the weekly L$ stipends Linden pays to premium residents exceed its revenues from land rentals and other administrative services it provides to residents. In order to fund the deficits, Linden creates new L$ and injects them into Second Life. In the United States, the Federal Reserve's primary mechanism for increasing the US$ supply involves purchasing debt securities issued by the US Treasury. Linden's process slightly differs in that it creates exactly as many L$ as are needed to make up for its budgetary shortfalls without ever issuing any debt. Every time Linden runs a deficit, the L$ supply instantly increases by an equivalent amount. Linden's monthly budget deficit might appear insignificant in the graph, but in fact Linden has been increasing the money supply by an average of 6% per month this way. Annualized, it is more than doubling it each year. During the past year and a half, Linden created L$876 million through its deficits, which makes up over 33% of today's L$ supply. These figures certainly suggest that Linden has been artificially expanding the L$ supply, but there is one possible argument that would indicate otherwise. Premium members who receive weekly L$ stipends pay Linden US$9.95 per month for that privilege. One could argue that this US$9.95 represents an inflow of real wealth into Second Life to make up for the L$ created through deficits, but this argument is tenuous. These US$ revenues are presumably used by Linden to pay its employees, maintain its servers, and pay other operating and financing costs, with the remaining profit or loss passed on to its shareholders. Unfortunately, as the graph below shows, there have been months when Linden's US$ revenues would not have been enough to cover the new L$ creations. In September of 2005, Linden collected as much as US$98,000[2] from premium members, which is equivalent to about L$26 million at the L$'s current exchange rate. But during that month, it created L$36 million in order to fund its fiscal deficit. That means that even if Linden had not allocated a single US$ to its employees or incurred any real-world costs whatsoever, it still would not have collected enough US$ to match its newly created L$. $25 "Second Life's residents could benefit from a closer look into the actual workings of its economy, and the effects of economic intervention." Given the strong evidence that Linden has unnaturally inflated the L$ supply, Austrian economics tells us that there are a couple of potential outcomes that are likely to occur. In the first, Linden will stop running significant deficits at some point. With less L$ available to spend, residents will demand fewer goods and services, leading to lower prices and reduced profits. Previously profitable enterprises will go out of business and the wealth of many residents will decrease, slowing overall economic activity. The other possibility is that Linden will continue running deficits to the point that a sufficient number of residents and speculators will recognize the L$'s frailty. In what Ludwig von Mises referred to as a "crack-up boom," everyone will scramble to redeem his L$ for "real goods," which, in the case of Second Life, is probably the US$. As more and more people sell their L$ on the LindeX, Linden might choose to maintain its L$270=US$1 peg for some amount of time, but operating under the assumption that it has not maintained 100% US$ reserves, it will eventually run out of US$ or decide to stop selling them, and the L$ will depreciate rapidly. In either outcome, residents will discover that they possess less wealth than they perceived they had during the time leading up to the crash. To summarize, it appears very likely that Second Life will experience at least some form of economic recession. Depending on its severity, it might result in Linden's losing many of its customers. If Linden wants to prevent this from happening and foster a stable, growing economy within Second Life, it should apply the lessons of Austrian economics to its policies: abolish restrictions on content, strengthen the ability of residents to enforce their property rights, and, most important, tie the L$ to a real-world commodity money backed by 100% reserves. -------------------------------------------------------------------------------- Matthew Beller is a former employee of the Federal Reserve Board of Governors and currently works for the Securities and Exchange Commission in Los Angeles. Send him mail. Comment on the blog. The Securities and Exchange Commission disclaims responsibility for any private publication or statement of any SEC employee or Commissioner. This article expresses the author's views and does not necessarily reflect those of the Commission, the Commissioners, or other members of the staff. Notes [1] SecondLife.com/
Political leadership or hard worker honest people taking care of family?? In this dreadful election season, many politicians have promised to "lead us into the future." I can hardly think of a worse fate for any society than to be led into the future by the political class of gangsters, marauders, looters, and liars. Even the most honest and well-intended among them are powerless to improve the world in any way except by diminishing rather than increasing their power. Politicians haven't the capacity to lead whole societies anywhere. They are outclassed and outrun by trends in the world economy that are beyond the ability of the political class to control or direct. The market economy—globalized, enormously powerful, breathtaking in scope and breadth—is remaking the world in ways that far surpass any existing political development in the US, from the crafted blather of Congressional hearings on this or that to the mad rush to grab the presidential brass rings. We are living through changes that may appear slow if observed from the point of view of the daily headlines, but which are momentously fast and completely transforming when looked at globally and from the point of view of years and decades into the future. These developments are going to bring about surprising political shifts, profound upsets in rooted cultural assumptions, and an eventual and merciful end to the US imperium. These changes will touch everyone in ways that will be both stunning and glorious for average Americans, and deeply disturbing for the American regime that aspires to unchallenged global hegemony. What is the underlying cause? The unleashing of human energies in nations that have been isolated, regimented, and closed for centuries. China, Malaysia, India, the countries of Latin America, and the new economies of Eastern Europe, among many others, are expanding at as much as twice the rate of American and European markets. This is not only remaking their nations, but the way we perceive the geographical distribution of wealth and power. Over time, and extended far into the future, this trend is going to mean dramatic upheavals in the way Americans perceive their role in the world. Within the institution of trade—whether on the most local level or the global level—we find the key to peace, prosperity, and human flourishing. The people in these emerging countries, confronted with new economic opportunities, are making the fruits of their labors, assisted by investments by US firms, available to American consumers, driving down prices and driving up the quality of everyday goods and services consumed by Americans. This phenomenon has been the saving grace of the US economy for a decade, and, in the future, it will become integral to our very lives. To get a glimpse of the change, take a tour of the local Wal-Mart, the largest company in the world, and take note of the stunning availability of a huge range of consumer goods at very low prices. Note too that such an array would be inconceivable without the work of international trade. From bicycles and electronics to foodstuffs and flowers, we find the shelves dominated by goods that were produced, in part or in whole, by countries outside US borders, and to this we owe the low prices and the quality that accords with US consumer preferences. Now, Wal-Mart isn't on some campaign to become the leading importer; it is only looking to make available to consumers all the things they want at the lowest possible prices. Where they find these goods is outside the US, where we find ever more comparative advantages. Every retailer in the world is taking notice of this fact, studying the case of Wal-Mart to see how and why it so quickly became the dominant player in the world economy. Its example of seeing both the wholesale and retail market as global in scope—all in the interest of consumer service—has taught the entire business class that nationalism and parochialism are losing propositions. The left may continue to rail against this company, and the right may continue to warn of its dangers to local culture and life, but the example is there for all to see. Average people love this company. It is all old-fashioned consumer service combined with a global reach to bring to average people things that improve their lot in life. Wal-Mart may eventually go the way of so many companies, displaced by some other firm that knows how to do it even better. The point is the model from which it is working. It is a global model focused on the individual buyer, and it works its wonders by depending on the voluntary decisions of average people. The nation state as such plays no part in its calculus, and this has proven to be the winning ticket. So it will continue to be. What about the economic impact? Is marketing all these wares to the world a danger? One might be initially alarmed by this, until one considers the savings to the consumer. For every dime saved in consumer prices, one more dime is made available for other pursuits, whether savings, consumption, or investment. It is this fact which is subsidizing American prosperity right now. Far from being a sign that America has lost its edge, it constitutes the world's gift to American consumers. The trade is mutually beneficial, producing winners on all sides, with the only losers being those American producers who can't seem to drive their costs down low enough to compete in the world marketplace. It is because of this, and despite the constant attempts by central banks to inflate the currency, that prices are continuing to fall for consumer goods. People who have noted these trends say that we should panic that there won't be any jobs left for Americans to do. What this forgets is the reality of scarcity in the world, which implies that there are always and everywhere jobs to do because there are always and everywhere unmet needs. Specialization and the division of labor permits Americans to produce most efficiently in a way that is integral to world demand and not waste time and resources in jobs that can be done more cheaply elsewhere. This does indeed mean a change in world patterns of production, but the market will manage the change with minimum disruption, as it has for the last several hundred years. For the developing world, it means something far more dramatic: a nearly complete abandonment of traditional economic pursuits that were imposed on them by virtue of their previous isolation from the capitalist West. The point is not that their economies are free or have been completely unleashed from the chains of the state. The US and Western Europe, in many respects, remain the most free economies. What matters here is the direction of change. Whereas the US and Europe are increasingly controlled, countries such as China, India, Romania, Poland, Thailand, and many others, are far less controlled than they once were. This has unleashed pent-up human energies and made a fantastic difference in the ability of these people to integrate themselves into the worldwide division of labor. This has meant rising incomes, better diets, less starvation, less disease, better sanitation, falling infant mortality, much longer lifespans, and ever more economic opportunities for work and investment. The fate of these economies has two major links to that of American citizens: in their capacity as consumers, they have a strong interest in seeing it continue, and, as investors, many portfolios of US investors are heavily invested in these emerging economies. The quality of life in these distant lands is increasing in ways that would have been unimaginable even a decade ago, with information technologies made available by the private sector coming into the hands of a new generation that relies on cell phones and high-speed web access, where their parents struggled barely to survive. The lifespan in China alone has risen from 25 years to 65 years in the course of a century. It also means more revenue for the governments of these countries, which, if driven to build up militaries to fend off US political influence, could eventually challenge the supremacy of the US in world public affairs. Again, this is nothing to regret. A world dominated by a single superpower is a gravely dangerous place, especially when that power is irresponsibly managed (and, some would say, is managed by maniacs). A decline in the power, might, and influence of the US is not the same thing as a decline in America; quite the opposite. The only real downside is the transition: the US government may increasingly behave like a dying and rabid animal, posing a danger to its random victims. But once you hear the "thud" of the final fall, the world will be more peaceful and prosperous than ever before. In the meantime, political trends in the US will become increasingly irrelevant, despite appearances. Until recently, Americans thought of themselves as a self-contained people with a nationally bound culture and economy that can be conceptualized and managed in the way that civics texts describe. This is on the verge of being impossible. The managerial class of the regime will continue to pose as experts and top-flight managers, but old assumptions about government are being shredded. Trends on this scale reduce the bellowing of politicians for protection to mere peeps. There is a tendency on the part of everyone to judge a historical moment by our own daily affairs and in relation only to the headlines that dominate the news. Economic analysis takes a much broader view to consider the overall impact of billions of people in many lands over a long period of time. It is through examining these trends that we can see that we are entering into a new world of global economic expansion that will rout any attempt to keep it at bay. Now, clearly, this will not occur without periods of crisis, particularly so long as the world is on a dollar standard and governments are still at work bringing calamity wherever they can. Take a look at where and how the products you use every day are made. Therein lies a remarkable story of the genius of entrepreneurship, the capacity for the world economy to manage itself and overcome ten thousand barriers, and the direction we are headed. It is a world in which consumers and producers from all nations can join hands in praise of the networks that draw them together, and against their common enemy: governments that would stand in the way. To understand the world being recreated before us, we must constantly keep this principle in our mind: trade based on ownership is always and everywhere mutually beneficial. Within the institution of trade—whether on the most local level or the global level—we find the key to peace, prosperity, and human flourishing. If we understand this, we have no reason to fear our fate except to the extent that anyone anywhere dares to interfere. If we understand this, we can see why being led into the future by the political class is something we should neither desire nor expect
Recession : With War or Without it ? Isrel vrs Iran// War - and US?? Recession: With War or Without It? by Gary North by Gary North DIGG THIS The world's economy has been in growth mode at least since 1991. China has been in growth mode since 1979. The American economy had a sharp recession in 1991. Asia had a financial crisis in 1998. America had a very brief, very shallow recession in 2001. The Federal Reserve System pumped in money at an accelerating rate after mid-2000 through 2004, and did not go to tight money until the month Bernanke took over: February 2006. Inflation overcame the recession of 2001, and it overcame the crisis of 9/11, but it created the housing bubble and the commodity bubble. The housing bubble has popped. This is going to take the price of housing in the United States lower than it is today. I think 20% lower is a conservative figure. We are nowhere near the end of this popped bubble. The commodity bubble is still in full force. It is a worldwide bubble. The price of energy and the price of rice and other food commodities have received most of the attention. Federal Reserve policy since early 2006 has been one of relatively stable money. There is a lot of chatter to the contrary, but if we look at the two most significant monetary indicators, the adjusted monetary base and M1, we see that there has been very little growth in either. This is why the United States is now either in a recession or is facing one in the next few months. When a period of monetary inflation ends, economies go into recession. The American economy is slowing down, and it will continue to slow down. Both China and India have expanded their money supplies dramatically for a decade. Both countries are now facing a crisis of rising prices. Price inflation is a major threat to the continued prosperity of both countries. China's government has begun to impose selective price controls. This is creating shortages and production bottlenecks. India's government is considering doing the same thing. What both governments need to do is to tell their central banks to cease buying all government debt and all assets of any kind. The central banks need to stop inflating the money supply. But if the banks do this, both countries will experience major recessions. The governments do not want to have major recessions, but they also do not want to experience the effects of monetary inflation: price inflation. So, both of them are tempted to go back to the traditional policy of imposing price controls. This always creates shortages, and it always reduces the rate of growth of the economy. China and India are trapped. AN INTERNATIONAL TRAP The United States is in the same trap. The headlines scream of the skyrocketing costs of energy and food, but the broader consumer price indexes indicate slow increases: maybe 3% a year. This is because families are readjusting their budgets. As the prices of gasoline and food rise, families are forced to cut back expenditures in other areas. So, the general price indexes are not rising dramatically, but families are struggling with their budgets. This struggle will get much worse this winter, when the price of heating oil rises. This will exacerbate the existing economic slowdown. Furthermore, the rising price of oil means a rising balance of payments deficit for the United States. Oil-exporting countries are the main beneficiaries of the rising price of oil. This means that foreign sellers of oil will get the lion's share of the increase of the price of oil. American producers will pay for the prosperity of the oil exporting countries. They will pay in the form of reduced demand for their products. The world is facing simultaneous recession. Meanwhile, the American financial system has absorbed hundreds of billions of dollars of IOUs from home buyers who cannot possibly pay off their debts. They are in the process of defaulting to the lenders. This has created a crisis for America's largest banks, and for several major European banks. We all know the story by now, but psychologically, most Americans have not adjusted to the new economic reality. Most investors have not adjusted. Yes, the American stock market is down by 20% since last October. But still they think a recovery is just around the corner. The media keep saying this. American investors still have faith that the economy is essentially healthy, that there will not be a continuing fall in the stock market, and that the economy will not go into recession and stay in the recession for two or more years. So far, I am giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. Why is this good news? Because this recession is going to put a cap on the rising cost of energy. Commodity prices will fall during the recession; this includes the price of oil. NO MORE FISCAL WIGGLE ROOM Americans have steadily stopped saving over the last 28 years. In 1981, they saved over 11% of their discretionary income. Today, they save nothing. They are now in full spending mode. They have borrowed money against their future income, against their home equity, and on simple promises to pay (signature loans: credit cards). They have stretched themselves thin with respect to debt. If oil goes to $400 a barrel, or $500 a barrel, and stays there for a year, American consumers will be in panic mode. They will have to cut their budgets, and they have forgotten how to cut their budgets. They have forgotten how to save. The strategy of the optimists is to tell us that the worst is over economically. This is the government's official position. Chairman Ben Bernanke does not say this. He keeps hinting of more trouble to come. He keeps telling us that the Federal Reserve System is monitoring events. He keeps implying that there is some sort of rabbit still remaining in the Federal Reserve System's hat which they can pull out if the banking system moves into paralysis mode. But he doesn't tell us what these rabbits are, or under what conditions the FED will pull them out of its hat. The good news regarding the economy in general is not backed up by anything specific. The government tells us that the worst is over, but there are almost no indications that the worst is over. The housing market is still in decline. Foreclosures are still rising rapidly. The lenders are not selling foreclosed properties at market prices. Instead, they keep buying back the properties. There is a growing inventory of unsold properties on the books of the lenders. Meanwhile the two major sources of liquidity for the housing market, Fannie Mae and Freddie Mac, are verging on bankruptcy. On Wednesday, July 9, the stock price of Freddie Mac dropped by 23%. Yet its stock price was down over 50% since January. These two stocks have continued to fall. Everywhere we look on the horizon of the domestic economy, there is bad news. There is no sector of the economy that is improving, unless it is heavily funded by the Federal government. Health care has not slumped, because health care as funded by Medicare and other state and local government programs. This means that the Federal deficit is going to get worse in any recession. Medicare and Social Security are non-discretionary spending items. The revenues will fall. So, the supposed strength sectors of the economy are in fact guarantees of a government fiscal crisis. If the general economy slumps, the Federal deficit is likely to go over $500 billion a year. When the recession hits, commodity prices will fall. If the recession does not hit, commodity prices will continue to rise. But rising commodity prices will force bankruptcies in those firms that are not in a position to pass on increased costs to their consumers. This means industries associated with discretionary spending. If your company is dependent upon discretionary spending by the public, your job is at risk. If the recession hits, your company will suffer. If the recession doesn't hit, rising commodity prices will squeeze your company. Consumers will spend their money for gasoline and heating oil, not on the products or services your company produces. The boom economy has not been based primarily on non-discretionary income. The boom has come at the margin: those areas of the economy in which consumers do have the option of spending their money rather than saving it. So far, I have been giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. THE BAD NEWS The bad news is that the State of Israel is increasingly likely to launch an air strike on suspected Iranian nuclear weapons production facilities. I have discussed this before. If this happens, the price of oil will skyrocket. This will force massive readjustments of family budgets in every country on a permanent basis. This is going to force producers to fire people out of fear of bankruptcy. Consumers are going to stop buying much in the area of discretionary income. That is, those items that can be cut back will be cut back. This could mean you. If the State of Israel launches an attack on Iran, the economic news will get really bad really fast all over the world. So, the most important question today is whether or not the Israeli Air Force will attack Iran. From an economic standpoint, this is the crucial question. Here, too, the mainstream media have generally promoted optimism. They suggest that the Israelis will not attack Iran. The problem is, they can't point to anything specific that officials in the State of Israel have said that indicates that there will not be an attack. On the contrary, officials there keep saying "no comment." Something else is really ominous. The political leaders in the countries over which Israeli bombers will have to fly are deadly silent. They are not telling Israel in full public view that if Israel sends planes over their airspace, they will go to war with Israel. They are not saying that they are preparing right now to shoot down every Israeli plane that flies over their airspace. They are saying nothing. Why? I think the main reason is that they will not back up their words with deeds. They will not shoot down Israeli planes. They say nothing in public because they will do nothing if the overflights take place. If they go public with bellicose threats today, their own people will turn on them if they fail to back up their words with deeds if the flights take place. "You said you would do something. You did nothing. Get out!" This could start internal revolutions in the overflown countries. Silence is golden. It's yellow, but it's golden. This tells me that the overflight countries' leaders think the attack may take place. They would prefer to be accused of having been caught flat-footed by the Israeli Air Force than unwilling to back up a threat. American officials are offering the bipartisan line: "We must settle this through diplomacy." (To which Israeli government officials can respond, Tonto-like: "Who you mean we, paleface?") They are not saying anything about what sanctions against the State of Israel that America will impose as soon as Israeli jets bomb Iran. That is because there will be no such sanctions. Admiral Mullen supposedly sent Israel a statement in early July saying that the United States has not issued a green light for an Israeli attack on Iran. This supposedly means something important in itself. It means nothing in itself. What it means is the United States has not issued a red light against an Israeli attack on Iran. This means that there is no stop sign. There is no red light, so the absence of a green light means nothing. Of course no one has said that the United States will help Israel in such an attack. So what? Israeli officials are not asking for a public offer of American help. If the United States and those governments over which the Israeli Air Force must fly are not issuing public statements at this time warning that there will be significant negative sanctions imposed on the State of Israel as soon as the attack is launched, then this is an implied green light. Do we imagine that senior decision-makers in the Israeli government care a whit about the lack of an official American green light to their attack on Iran? They are as unconcerned about the lack of a green light as Iran is unconcerned about President Bush's threat of sanctions if Iran does not comply with all requirements announced by the Bush administration. Iran knows what Israel knows: the Bush administration is terminal. It will end on January 20, 2009. It has no teeth. Lame ducks don't bite. They merely squawk. Why should we think that either Iran or Israel gives a fig about the red light/green light debate? American pundits may think this debate is important, but why should anyone with common sense think it's important? TIMETABLES Iraq has announced that the United States must pull out its troops. It is demanding dates for this withdrawal. The Bush administration is pooh-poohing all this, and will not under any circumstances announce such a timetable, but so what? There is a timetable for the Bush administration's withdrawal: January 20, 2009. This means that the United States is going to be pressured by Iraq's government to leave Iraq from now on. Most of the troops will be forced to leave Iraq unless things change dramatically. Then what will be done with the 14 major military bases that have been built? As the pressure increases to force us to leave Iraq, and as the pressure from the Taliban increases in Afghanistan, and as the pressure from voters increases to get our troops out of both countries, and as the likelihood of the election of Obama increases, decision-makers in the State of Israel are caught between the proverbial rock and a hard place. If the United States pulls out of the region, the State of Israel will be left high and dry. But there is another possible scenario. If Iran's surrogate Shia forces in the region take on the United States troops in reaction to an Israeli attack on Iran, American public opinion will swing in favor of keeping the troops there, no matter what. "Who do those Iranians think they are? We issued no green light to the Israelis. It's not our fault." If Iran begins to supply weapons to Shia forces in Iraq and Afghanistan, and the American death rate goes up, then American voters will switch back to a pro-war position. At least, this is a possibility. Americans do not like to be pushed around. Any escalation of war in the region will create havoc for the supply of oil. The world economy is moving into recession already; it may go into a true depression if oil goes to $500 and stays there. So, the stakes are enormous. The outcome is no longer in the hands of the United States, Europe, Asia, or any of the other outsiders to the Middle East. The outcome, or at least the trigger, is completely in the hands of the decision-makers in the State of Israel. They hold the gun. Unless the United States and Western Europe tell the decision-makers in the State of Israel that Europe and the United States will impose significant negative sanctions after an attack on Iran, then decision-makers there are going to make a decision based on the self-interest of the ruling party, not the self-interest of American or European voters. They are going to take care of their perceived problem, exactly as we would expect any other national political leaders would take care of their problem. That's why all talk about war being a threat to the self-interest of the whole makes sense only if the Israelis conclude that the economic crisis will be so severe that it will take them down in the whirlpool of economic collapse. They are not afraid of military retaliation from Iran. They are also not afraid of the United States, Europe, Asia, or any other coalition that does not have the backbone to say in advance that there will be major sanctions placed on the State of Israel if there is an attack on Iran. This is why I am concerned about the threat of an Israeli attack on Iran. I am in no way calmed by statements attributed to Admiral Mullen. When Admiral Mullen holds a press conference and says publicly that there is no green light for an attack by the Israeli Air Force on Iran, and that any flyover of Iraq by Israeli planes will lead to shoot downs of Israeli planes by American planes, then I will stop worrying about the threat of an attack on Iran by the Israeli Air Force. How likely do you think such a press conference is? We must face reality: the decision to go to war with Iran is 100% in the hands of Israeli decision-makers. It is not in the hands of the United States, Europe, or Asia. In other words, the economic fate of the West over the next decade is now in the hands of decision-makers who are concerned about the long-term survival of their own country. They are concerned because they do not want to have Iran in the possession of nuclear weapons. Both candidates for President have said the same thing. We have seen saber-rattling by the Iranians with the film-doctored test of the missiles this week. These missiles are militarily useless as weapons against the Israelis. They are as irrelevant militarily as Germany's V-2 missiles were in 1945. They cannot inflict enough damage to make a difference, unless they are used against Saudi Arabian oil fields. But, if they had a nuclear warhead, that would make all the difference. The Israelis know this. So, they are going to make their decision in terms of this long-term threat. The main inhibition against an attack is the possible collapse of the Western economy, which buys Israeli-produced goods. This threat may be sufficient to keep them from attacking. I dearly hope that it is. But it is naïve to believe that they are going to make their decision because of worries about whether Admiral Mullen has issued a green light or not. CONCLUSION When you invest your money, do not ignore the worst-case scenario. Set aside some of your money on the assumption that the worst-case will come true. This is what any military strategist does. He makes his decisions in terms of what the enemy can do, not what it would be convenient for the enemy to do. I suggest that you be aware of this threat. I suggest that you sit down with the family budget and outline what your response would be if the price of gasoline were $10 a gallon or $15 a gallon or $20 a gallon. What would you do? I know what you would do. You would drive less. Ignore the happy-face assessments of the geopolitical strategists. Ignore the happy-face assessment of the Secretary of the Treasury, Henry "Goldman Sachs" Paulson. These assessments are being issued to keep panic from spreading. I am doing my best to encourage people to take rational steps with some of their liquid assets: to hedge themselves against the possibility that there will be an attack on Iran before January 20, 2009. This doesn't mean that I think such an attack is a sure thing. Decision-makers in the State of Israel are going to have to live with $400 oil, just like all the rest of us. They may decide that this risk is too great. They may decide to put up with the threat of a future nuclear-armed Iran. I won't bet all of my money on this. I don't think you should either. July 12, 2008 Gary North [send him mail] is the author of Mises on Money. Visit http://www.garynorth.com.
Is thye political leadership a Myth ?? more cost than benefit ?? Elections? In this dreadful election season, many politicians have promised to "lead us into the future." I can hardly think of a worse fate for any society than to be led into the future by the political class of gangsters, marauders, looters, and liars. Even the most honest and well-intended among them are powerless to improve the world in any way except by diminishing rather than increasing their power. Politicians haven't the capacity to lead whole societies anywhere. They are outclassed and outrun by trends in the world economy that are beyond the ability of the political class to control or direct. The market economy—globalized, enormously powerful, breathtaking in scope and breadth—is remaking the world in ways that far surpass any existing political development in the US, from the crafted blather of Congressional hearings on this or that to the mad rush to grab the presidential brass rings. We are living through changes that may appear slow if observed from the point of view of the daily headlines, but which are momentously fast and completely transforming when looked at globally and from the point of view of years and decades into the future. These developments are going to bring about surprising political shifts, profound upsets in rooted cultural assumptions, and an eventual and merciful end to the US imperium. These changes will touch everyone in ways that will be both stunning and glorious for average Americans, and deeply disturbing for the American regime that aspires to unchallenged global hegemony. What is the underlying cause? The unleashing of human energies in nations that have been isolated, regimented, and closed for centuries. China, Malaysia, India, the countries of Latin America, and the new economies of Eastern Europe, among many others, are expanding at as much as twice the rate of American and European markets. This is not only remaking their nations, but the way we perceive the geographical distribution of wealth and power. Over time, and extended far into the future, this trend is going to mean dramatic upheavals in the way Americans perceive their role in the world. Within the institution of trade—whether on the most local level or the global level—we find the key to peace, prosperity, and human flourishing. The people in these emerging countries, confronted with new economic opportunities, are making the fruits of their labors, assisted by investments by US firms, available to American consumers, driving down prices and driving up the quality of everyday goods and services consumed by Americans. This phenomenon has been the saving grace of the US economy for a decade, and, in the future, it will become integral to our very lives. To get a glimpse of the change, take a tour of the local Wal-Mart, the largest company in the world, and take note of the stunning availability of a huge range of consumer goods at very low prices. Note too that such an array would be inconceivable without the work of international trade. From bicycles and electronics to foodstuffs and flowers, we find the shelves dominated by goods that were produced, in part or in whole, by countries outside US borders, and to this we owe the low prices and the quality that accords with US consumer preferences. Now, Wal-Mart isn't on some campaign to become the leading importer; it is only looking to make available to consumers all the things they want at the lowest possible prices. Where they find these goods is outside the US, where we find ever more comparative advantages. Every retailer in the world is taking notice of this fact, studying the case of Wal-Mart to see how and why it so quickly became the dominant player in the world economy. Its example of seeing both the wholesale and retail market as global in scope—all in the interest of consumer service—has taught the entire business class that nationalism and parochialism are losing propositions. The left may continue to rail against this company, and the right may continue to warn of its dangers to local culture and life, but the example is there for all to see. Average people love this company. It is all old-fashioned consumer service combined with a global reach to bring to average people things that improve their lot in life. Wal-Mart may eventually go the way of so many companies, displaced by some other firm that knows how to do it even better. The point is the model from which it is working. It is a global model focused on the individual buyer, and it works its wonders by depending on the voluntary decisions of average people. The nation state as such plays no part in its calculus, and this has proven to be the winning ticket. So it will continue to be. What about the economic impact? Is marketing all these wares to the world a danger? One might be initially alarmed by this, until one considers the savings to the consumer. For every dime saved in consumer prices, one more dime is made available for other pursuits, whether savings, consumption, or investment. It is this fact which is subsidizing American prosperity right now. Far from being a sign that America has lost its edge, it constitutes the world's gift to American consumers. The trade is mutually beneficial, producing winners on all sides, with the only losers being those American producers who can't seem to drive their costs down low enough to compete in the world marketplace. It is because of this, and despite the constant attempts by central banks to inflate the currency, that prices are continuing to fall for consumer goods. People who have noted these trends say that we should panic that there won't be any jobs left for Americans to do. What this forgets is the reality of scarcity in the world, which implies that there are always and everywhere jobs to do because there are always and everywhere unmet needs. Specialization and the division of labor permits Americans to produce most efficiently in a way that is integral to world demand and not waste time and resources in jobs that can be done more cheaply elsewhere. This does indeed mean a change in world patterns of production, but the market will manage the change with minimum disruption, as it has for the last several hundred years. For the developing world, it means something far more dramatic: a nearly complete abandonment of traditional economic pursuits that were imposed on them by virtue of their previous isolation from the capitalist West. The point is not that their economies are free or have been completely unleashed from the chains of the state. The US and Western Europe, in many respects, remain the most free economies. What matters here is the direction of change. Whereas the US and Europe are increasingly controlled, countries such as China, India, Romania, Poland, Thailand, and many others, are far less controlled than they once were. This has unleashed pent-up human energies and made a fantastic difference in the ability of these people to integrate themselves into the worldwide division of labor. This has meant rising incomes, better diets, less starvation, less disease, better sanitation, falling infant mortality, much longer lifespans, and ever more economic opportunities for work and investment. The fate of these economies has two major links to that of American citizens: in their capacity as consumers, they have a strong interest in seeing it continue, and, as investors, many portfolios of US investors are heavily invested in these emerging economies. The quality of life in these distant lands is increasing in ways that would have been unimaginable even a decade ago, with information technologies made available by the private sector coming into the hands of a new generation that relies on cell phones and high-speed web access, where their parents struggled barely to survive. The lifespan in China alone has risen from 25 years to 65 years in the course of a century. It also means more revenue for the governments of these countries, which, if driven to build up militaries to fend off US political influence, could eventually challenge the supremacy of the US in world public affairs. Again, this is nothing to regret. A world dominated by a single superpower is a gravely dangerous place, especially when that power is irresponsibly managed (and, some would say, is managed by maniacs). A decline in the power, might, and influence of the US is not the same thing as a decline in America; quite the opposite. The only real downside is the transition: the US government may increasingly behave like a dying and rabid animal, posing a danger to its random victims. But once you hear the "thud" of the final fall, the world will be more peaceful and prosperous than ever before. In the meantime, political trends in the US will become increasingly irrelevant, despite appearances. Until recently, Americans thought of themselves as a self-contained people with a nationally bound culture and economy that can be conceptualized and managed in the way that civics texts describe. This is on the verge of being impossible. The managerial class of the regime will continue to pose as experts and top-flight managers, but old assumptions about government are being shredded. Trends on this scale reduce the bellowing of politicians for protection to mere peeps. There is a tendency on the part of everyone to judge a historical moment by our own daily affairs and in relation only to the headlines that dominate the news. Economic analysis takes a much broader view to consider the overall impact of billions of people in many lands over a long period of time. It is through examining these trends that we can see that we are entering into a new world of global economic expansion that will rout any attempt to keep it at bay. Now, clearly, this will not occur without periods of crisis, particularly so long as the world is on a dollar standard and governments are still at work bringing calamity wherever they can. Take a look at where and how the products you use every day are made. Therein lies a remarkable story of the genius of entrepreneurship, the capacity for the world economy to manage itself and overcome ten thousand barriers, and the direction we are headed. It is a world in which consumers and producers from all nations can join hands in praise of the networks that draw them together, and against their common enemy: governments that would stand in the way. To understand the world being recreated before us, we must constantly keep this principle in our mind: trade based on ownership is always and everywhere mutually beneficial. Within the institution of trade—whether on the most local level or the global level—we find the key to peace, prosperity, and human flourishing. If we understand this, we have no reason to fear our fate except to the extent that anyone anywhere dares to interfere. If we understand this, we can see why being led into the future by the political class is something we should neither desire nor expect.
Whether GOI is keeping Dollars as reserve fund with Central Bank of America? Its implications on Rupee value? RBI is keeping Gold as reserves for printing Indian currency. If India is keeping its surplus foreign currency in $ with USA then it is loosing its capital due to depreciation in value of $ vis-a-vis Rupee? Is India facing this situation? Why cann't India invest in purchase of other currencies which have a trend of appreciation in value? Raising CRR or reducing rate of interest on savings is not the right solution as it would result in financial crunch. and dishearten the domestic trade. Why cann't India use surplus foreign exchange to develop or procure items of Infrastructural support? Even if there is deficit financing or fiscial dificit, how is it adverse to our economic interest. USA is consistently using this method in its national economy. With Rupee going strong, why India is accelerating its policy of attaching no controls over valuation of currency when China is deliberately controling Yuan at under-rated value to serve its export policy and is trade surplus state.
y is saudi arab denying pakistan ask for oil rebates?y r saudis so mean? pakistan has to cancel its weapons deal of $4 billion with usa to buy new f-16's.the country suspended military test of nuclear carrying missile hatf -9.pakistan nuclear authority has explained serious concern over funds saying we need funds to upgrade the technology (as india has tested weapon head of range 3,000km whearas pakistan hatf-8 has range of 2,00 km).$20 million of all developments works across the country suspended.central bank stressed out with ruppe falling freely.20 pple killed themselved by hanging ,infront of trains, bcz of food inflation in just 1 month.above is bcz of one reason "oil is $125 per barrel".pakistan contacted saudi arab for two times saying they should give free oil rebates to pakistan.moreover if pakistan stops its military deals and development works,the result would be pakistan would be over .it should be kept in mind 40% pakis r arab migrants including dr aq khan, 20% persians.y r saudis doing this to their muslim brothers?people here r dieing the prb is pakistan has massive money being spent on military pruposes like development of jet industry,(recently developed jf-17 thunder),pakistan is the only muslim nuclear power millions r spent on nuclear research, only muslims country who can develop n manufacture jets,only muslims country who has devloped the most advanced tank which ranks top ten of the world.the pakistan is giving jf-17 jets to saudi arab ,as well as arabs gets their most weapons(inculding al-khalid tank) from pakistan...we r helping ourselves .pakistan is under constant threat as world powers continue to target and plan to attack pakistan.pakistan has been ranked as the breeding place of islam(terrorists) as called by times magzine.we r doing enough help , we r sharing our techolongy with arabs and arabs should understand pakistan is the country that needs funds for the sole purpose of development of military technology for all muslim countries.we share our tech with brothers..
Rat meat in demand in Cambodia as inflation bites. Talk about inflation? Your thoughts? Wed Aug 27, 2:44 AM ET PHNOM PENH (Reuters) - The price of rat meat has quadrupled in Cambodia this year as inflation has put other meat beyond the reach of poor people, officials said on Wednesday. With consumer price inflation at 37 percent according to the latest central bank estimate, demand has pushed a kilogram of rat meat up to around 5,000 riel (69 pence) from 1,200 riel last year. Spicy field rat dishes with garlic thrown in have become particularly popular at a time when beef costs 20,000 riel a kg. Officials said rats were fleeing to higher ground from flooded areas of the lower Mekong Delta, making it easier for villagers to catch them. "Many children are happy making some money from selling the animals to the markets, but they keep some for their family," Ly Marong, an agriculture official, said by telephone from the Koh Thom district on the border with Vietnam. "Not only are our poor eating it, but there is also demand from Vietnamese living on the border with us." He estimated that Cambodia supplied more than a tonne of live rats a day to Vietnam. Rats are also eaten widely in Thailand, while a state government in eastern India this month encouraged its people to eat. (Reporting by Ek Madra; Editing by Alan Raybould and Paul Tait)
Recession : With War or Without it ? Isrel vrs Iran// War - and US?? Recession: With War or Without It? by Gary North by Gary North DIGG THIS The world's economy has been in growth mode at least since 1991. China has been in growth mode since 1979. The American economy had a sharp recession in 1991. Asia had a financial crisis in 1998. America had a very brief, very shallow recession in 2001. The Federal Reserve System pumped in money at an accelerating rate after mid-2000 through 2004, and did not go to tight money until the month Bernanke took over: February 2006. Inflation overcame the recession of 2001, and it overcame the crisis of 9/11, but it created the housing bubble and the commodity bubble. The housing bubble has popped. This is going to take the price of housing in the United States lower than it is today. I think 20% lower is a conservative figure. We are nowhere near the end of this popped bubble. The commodity bubble is still in full force. It is a worldwide bubble. The price of energy and the price of rice and other food commodities have received most of the attention. Federal Reserve policy since early 2006 has been one of relatively stable money. There is a lot of chatter to the contrary, but if we look at the two most significant monetary indicators, the adjusted monetary base and M1, we see that there has been very little growth in either. This is why the United States is now either in a recession or is facing one in the next few months. When a period of monetary inflation ends, economies go into recession. The American economy is slowing down, and it will continue to slow down. Both China and India have expanded their money supplies dramatically for a decade. Both countries are now facing a crisis of rising prices. Price inflation is a major threat to the continued prosperity of both countries. China's government has begun to impose selective price controls. This is creating shortages and production bottlenecks. India's government is considering doing the same thing. What both governments need to do is to tell their central banks to cease buying all government debt and all assets of any kind. The central banks need to stop inflating the money supply. But if the banks do this, both countries will experience major recessions. The governments do not want to have major recessions, but they also do not want to experience the effects of monetary inflation: price inflation. So, both of them are tempted to go back to the traditional policy of imposing price controls. This always creates shortages, and it always reduces the rate of growth of the economy. China and India are trapped. AN INTERNATIONAL TRAP The United States is in the same trap. The headlines scream of the skyrocketing costs of energy and food, but the broader consumer price indexes indicate slow increases: maybe 3% a year. This is because families are readjusting their budgets. As the prices of gasoline and food rise, families are forced to cut back expenditures in other areas. So, the general price indexes are not rising dramatically, but families are struggling with their budgets. This struggle will get much worse this winter, when the price of heating oil rises. This will exacerbate the existing economic slowdown. Furthermore, the rising price of oil means a rising balance of payments deficit for the United States. Oil-exporting countries are the main beneficiaries of the rising price of oil. This means that foreign sellers of oil will get the lion's share of the increase of the price of oil. American producers will pay for the prosperity of the oil exporting countries. They will pay in the form of reduced demand for their products. The world is facing simultaneous recession. Meanwhile, the American financial system has absorbed hundreds of billions of dollars of IOUs from home buyers who cannot possibly pay off their debts. They are in the process of defaulting to the lenders. This has created a crisis for America's largest banks, and for several major European banks. We all know the story by now, but psychologically, most Americans have not adjusted to the new economic reality. Most investors have not adjusted. Yes, the American stock market is down by 20% since last October. But still they think a recovery is just around the corner. The media keep saying this. American investors still have faith that the economy is essentially healthy, that there will not be a continuing fall in the stock market, and that the economy will not go into recession and stay in the recession for two or more years. So far, I am giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. Why is this good news? Because this recession is going to put a cap on the rising cost of energy. Commodity prices will fall during the recession; this includes the price of oil. NO MORE FISCAL WIGGLE ROOM Americans have steadily stopped saving over the last 28 years. In 1981, they saved over 11% of their discretionary income. Today, they save nothing. They are now in full spending mode. They have borrowed money against their future income, against their home equity, and on simple promises to pay (signature loans: credit cards). They have stretched themselves thin with respect to debt. If oil goes to $400 a barrel, or $500 a barrel, and stays there for a year, American consumers will be in panic mode. They will have to cut their budgets, and they have forgotten how to cut their budgets. They have forgotten how to save. The strategy of the optimists is to tell us that the worst is over economically. This is the government's official position. Chairman Ben Bernanke does not say this. He keeps hinting of more trouble to come. He keeps telling us that the Federal Reserve System is monitoring events. He keeps implying that there is some sort of rabbit still remaining in the Federal Reserve System's hat which they can pull out if the banking system moves into paralysis mode. But he doesn't tell us what these rabbits are, or under what conditions the FED will pull them out of its hat. The good news regarding the economy in general is not backed up by anything specific. The government tells us that the worst is over, but there are almost no indications that the worst is over. The housing market is still in decline. Foreclosures are still rising rapidly. The lenders are not selling foreclosed properties at market prices. Instead, they keep buying back the properties. There is a growing inventory of unsold properties on the books of the lenders. Meanwhile the two major sources of liquidity for the housing market, Fannie Mae and Freddie Mac, are verging on bankruptcy. On Wednesday, July 9, the stock price of Freddie Mac dropped by 23%. Yet its stock price was down over 50% since January. These two stocks have continued to fall. Everywhere we look on the horizon of the domestic economy, there is bad news. There is no sector of the economy that is improving, unless it is heavily funded by the Federal government. Health care has not slumped, because health care as funded by Medicare and other state and local government programs. This means that the Federal deficit is going to get worse in any recession. Medicare and Social Security are non-discretionary spending items. The revenues will fall. So, the supposed strength sectors of the economy are in fact guarantees of a government fiscal crisis. If the general economy slumps, the Federal deficit is likely to go over $500 billion a year. When the recession hits, commodity prices will fall. If the recession does not hit, commodity prices will continue to rise. But rising commodity prices will force bankruptcies in those firms that are not in a position to pass on increased costs to their consumers. This means industries associated with discretionary spending. If your company is dependent upon discretionary spending by the public, your job is at risk. If the recession hits, your company will suffer. If the recession doesn't hit, rising commodity prices will squeeze your company. Consumers will spend their money for gasoline and heating oil, not on the products or services your company produces. The boom economy has not been based primarily on non-discretionary income. The boom has come at the margin: those areas of the economy in which consumers do have the option of spending their money rather than saving it. So far, I have been giving you the good news. The good news is there is going to be an international recession, rising corporate bankruptcies, bank failures, and retrenchment by consumers because they can no longer pay the rising cost of energy. THE BAD NEWS The bad news is that the State of Israel is increasingly likely to launch an air strike on suspected Iranian nuclear weapons production facilities. I have discussed this before. If this happens, the price of oil will skyrocket. This will force massive readjustments of family budgets in every country on a permanent basis. This is going to force producers to fire people out of fear of bankruptcy. Consumers are going to stop buying much in the area of discretionary income. That is, those items that can be cut back will be cut back. This could mean you. If the State of Israel launches an attack on Iran, the economic news will get really bad really fast all over the world. So, the most important question today is whether or not the Israeli Air Force will attack Iran. From an economic standpoint, this is the crucial question. Here, too, the mainstream media have generally promoted optimism. They suggest that the Israelis will not attack Iran. The problem is, they can't point to anything specific that officials in the State of Israel have said that indicates that there will not be an attack. On the contrary, officials there keep saying "no comment." Something else is really ominous. The political leaders in the countries over which Israeli bombers will have to fly are deadly silent. They are not telling Israel in full public view that if Israel sends planes over their airspace, they will go to war with Israel. They are not saying that they are preparing right now to shoot down every Israeli plane that flies over their airspace. They are saying nothing. Why? I think the main reason is that they will not back up their words with deeds. They will not shoot down Israeli planes. They say nothing in public because they will do nothing if the overflights take place. If they go public with bellicose threats today, their own people will turn on them if they fail to back up their words with deeds if the flights take place. "You said you would do something. You did nothing. Get out!" This could start internal revolutions in the overflown countries. Silence is golden. It's yellow, but it's golden. This tells me that the overflight countries' leaders think the attack may take place. They would prefer to be accused of having been caught flat-footed by the Israeli Air Force than unwilling to back up a threat. American officials are offering the bipartisan line: "We must settle this through diplomacy." (To which Israeli government officials can respond, Tonto-like: "Who you mean we, paleface?") They are not saying anything about what sanctions against the State of Israel that America will impose as soon as Israeli jets bomb Iran. That is because there will be no such sanctions. Admiral Mullen supposedly sent Israel a statement in early July saying that the United States has not issued a green light for an Israeli attack on Iran. This supposedly means something important in itself. It means nothing in itself. What it means is the United States has not issued a red light against an Israeli attack on Iran. This means that there is no stop sign. There is no red light, so the absence of a green light means nothing. Of course no one has said that the United States will help Israel in such an attack. So what? Israeli officials are not asking for a public offer of American help. If the United States and those governments over which the Israeli Air Force must fly are not issuing public statements at this time warning that there will be significant negative sanctions imposed on the State of Israel as soon as the attack is launched, then this is an implied green light. Do we imagine that senior decision-makers in the Israeli government care a whit about the lack of an official American green light to their attack on Iran? They are as unconcerned about the lack of a green light as Iran is unconcerned about President Bush's threat of sanctions if Iran does not comply with all requirements announced by the Bush administration. Iran knows what Israel knows: the Bush administration is terminal. It will end on January 20, 2009. It has no teeth. Lame ducks don't bite. They merely squawk. Why should we think that either Iran or Israel gives a fig about the red light/green light debate? American pundits may think this debate is important, but why should anyone with common sense think it's important? TIMETABLES Iraq has announced that the United States must pull out its troops. It is demanding dates for this withdrawal. The Bush administration is pooh-poohing all this, and will not under any circumstances announce such a timetable, but so what? There is a timetable for the Bush administration's withdrawal: January 20, 2009. This means that the United States is going to be pressured by Iraq's government to leave Iraq from now on. Most of the troops will be forced to leave Iraq unless things change dramatically. Then what will be done with the 14 major military bases that have been built? As the pressure increases to force us to leave Iraq, and as the pressure from the Taliban increases in Afghanistan, and as the pressure from voters increases to get our troops out of both countries, and as the likelihood of the election of Obama increases, decision-makers in the State of Israel are caught between the proverbial rock and a hard place. If the United States pulls out of the region, the State of Israel will be left high and dry. But there is another possible scenario. If Iran's surrogate Shia forces in the region take on the United States troops in reaction to an Israeli attack on Iran, American public opinion will swing in favor of keeping the troops there, no matter what. "Who do those Iranians think they are? We issued no green light to the Israelis. It's not our fault." If Iran begins to supply weapons to Shia forces in Iraq and Afghanistan, and the American death rate goes up, then American voters will switch back to a pro-war position. At least, this is a possibility. Americans do not like to be pushed around. Any escalation of war in the region will create havoc for the supply of oil. The world economy is moving into recession already; it may go into a true depression if oil goes to $500 and stays there. So, the stakes are enormous. The outcome is no longer in the hands of the United States, Europe, Asia, or any of the other outsiders to the Middle East. The outcome, or at least the trigger, is completely in the hands of the decision-makers in the State of Israel. They hold the gun. Unless the United States and Western Europe tell the decision-makers in the State of Israel that Europe and the United States will impose significant negative sanctions after an attack on Iran, then decision-makers there are going to make a decision based on the self-interest of