India in Cognitive Dissonance Book

10 From Indian Economic Miracle to Anglo-American Economic Miracle

What we call the Indian Economic Miracle is nothing but the sweat and blood of millions of Indians from the day we got in-dependence, in whatever fractured way, and were left to the vultures of international banking and financial elite. The new nation thus born was left with less than Rs 100 crores to manage, survive and grow. Immediately thereafter, a horrific war and partition was pushed upon us, which saw assets worth close to a trillion USD being wiped out. After this 1-Trillion dollar loss, and before we could recover from the human and resource loss of partition, Mahatma Gandhi was assassinated and the country was thrown into a psychological trauma and a now mental partition was further created:- a permanent division of “Secularists” versus “Nationalists”, where both these groups being actively created and controlled by the British as part of their divide-and-rule strategy. It is indeed a remarkable feat by the political-religious community and social leaders to put this trauma of the Mahatma Gandhi’s death on the back-burner, and yet with a heavy heart and with a single mind dedicated to re-build the nation to the level of a world-power in the next five years.

In this situation, the visionary Indians and leaders and people came together as a family to embark on re-building our Nation, with a sheer determination to survive and reclaim the ancient glory of India, with whatever little knowledge that was left over with them post the manipulations of the British.

These Visionaries adopted a socialist economic model for infrastructure development and an agrarian economic model for the food-self-sufficiency and embarked upon massive public sector investments to achieve self-sufficiency in defense. But still continuing the British-trend, Banking, Insurance and Oil industries were left in the Private hands, and these perpetuated frauds and prevented the formation of Capital in India.

 With a single master stroke, Feroze Gandhi nationalized all the insurance industries, resulting in the now gigantic LIC. The money needed for development of infrastructural projects was thus the people’s savings put into the LIC. The war with China was slapped onto us, with two aims: to de-moralize our army and secondly to drain our resources. Nevertheless, millions of unfazed Indians donated whatever they wore in Gold towards financing the defense of our country in this war. After the war with China, we nationalized our Banking and after the 1971 war India nationalized the oil industry, and expanded our Public Sector Units to cover many more fields in our life.

Without a single rupee by way of foreign debt, India generated Lakhs of Crores internally to achieve remarkable food- defense- and economic- sufficiency. And when the internal security apparatus realized that the British agents in India whose properties were nationalized became the conduits for the creation of the Black-Economy and the Black-Money on a massive scale, with the stroke of pen most of that Black-Money was neutralized and brought into the Public Accounting domain for further development of India making it a leading nation in terms of Science, Space and Nuclear Energy.

 We mention again that in the previous round of demonetization, higher-denomination currencies that were cancelled were not re-introduced. This toil of the sweat and blood of the poor, common, honest Indian with the vision, and iron-willed dedication and patriotism towards the country and a colossal understanding of the geopolitical and international colonial dimensions of death and destruction, though not exactly termed as geopolitics, made India by the turn of the century a giant economic engine based on its own strength of manufacturing and agriculture with a USD 1.2 Trillion white and USD 1.2 Trillion black economy (pre-Liberalization).

But around the world, by this time, the so-called Anglo-American Economies were collapsing under the massive burdens of debt, which they had incurred by complicated webs of fraud and colossal greed and hedonistic avarice. That is where their strategists realized that they could survive if they could parasite on the Indian Economic Miracle, and by plundering what the hard working Indians had created over the past 60 years. This was done by privatization and Liberalization, with the Privatization being spear-headed by the erstwhile owners of the East India Company i.e. the Bank of England. In doing so, they also fulfilled the promise made by Mountbatten to Churchill: “if Churchill were to lend unconditional support to his India-independence theory for now, in the next 50 years, not just British India, but the entire India would be re-occupied.” Perhaps, this may the only instance where an Englishman has kept his word.

Towards the middle of the twentieth century, the Colonial Era started winding down, and socialist republics started coming up. All newly formed republics and nation-states have realized the only way to re-build and recover their economies after the plunder perpetuated during the colonial era was to follow the economic model of socialism, with the government spending left over resources for the benefit of one and all. Thus starting from 1920 to 1970, huge economic assets were created in more than forty or so countries under the tight control and supervision of their own watchful governments. Though there were complaints about some level of mismanagement of the funds, but on an overall level, trillions of dollars worth of economic assets were created in these countries, these assets being off-limits to every Colonial Power.

In the absence of the free flow of goods under the concept of global free trade, the colonial powers started starving and could not even enter the economic structure, with the exception of the USA which had cornered most of the reparations from World War -2. Thus, the push started from 1950’s to disrupt these socialist economies and oust their political leadership under any available flimsy pretext, and to install puppet regimes which would then sell off the massive economic assets of the country under consideration for a few cents or for a dollar.

Every war that happened during this period, every coup that took place aimed at knocking down the socialist republics one after the other and sucking their resources into the un-maintainable, wasteful Western Economic Lifestyle based on faulty economic theories. After thirty such countries were knocked down, the process of divide and rule and plunder was christened with a nice-sounding name: “Privatization and Liberalization”. The theoretical framework of this was proposed by the Chairman of the Bank of England around 1971. The final frontiers in this process of knocking down the country’s resources were Russia and India.

Russia with an estimated worth of 75 Trillion USD natural resources became the prime target during the eighties. The Colonial Powers almost succeeded in occupying Russia, but for the dawning of the era of Vladimir Putin who ruthlessly purged one and all, literally hunting them whether inside or outside the country, and restoring the economic self-reliance of Mother Russia. With Russia slipping out of their hands, the eyes were set on an unfathomably resource-rich country, which even after thousand years of non-stop plunder and looting still captures the imagination of one and all, thugs, thieves and robber-barons alike with her yet-unknown massive resource potential — that country is India.

With the assassination of two Prime Ministers in succession, a stage was set for the final round of Liberalization and Privatization in India, using the Mantra of “Development” as if India was some aboriginal country.

The Black component inside India, in terms of assets and cash alone is more than 70 Trillion USD. This is roughly equal to the value of the entire natural resource base of Russia. No one knows how much Gold is with the people, no one knows how many diamonds, precious stones and metals are with the people and religious and spiritual institutes of India, no one knows how vast  the unexcavated Gold Reserves. No one knows what quantity of other natural resources including the rare-earth metals are hidden within the Indian continent, no one knows what were the technologies used to extract and use them over the past thousands of years.

But what certainly they knew are the following facts and statistics that were compiled over the past fifty years since Independence, though we have a phenomenal, abysmal ignorance about what India had in terms of human and economic resources prior to Independence. The value of immovable property of the several-thousand or so spiritual and religious institutions of Karnataka alone is valued at 30-50,000 crores (7.5 b USD). The most conservative estimate of the Gold holdings under one vault alone of the temple of Shri Padmanabha Swamy in Tiruvanathapuram is valued at a whopping Trillion USD. The income generated from the former united Andhra-Pradesh state from the Prostitution rings alone is in far excess of Rs 30,000 crores (4.5 b USD) per year. (Rs 1000 crore ~ 155 million USD)

The register maintained in the Tirumala Temple that deals with the broken non-usable discarded jewellry is more than 500-billion USD. The average wealth amassed by any Chief Minister who held the position for more than a decade is over 50,000 crores (7.5 b USD). The total amount of money swindled away in the top 35 scams is over 8 Lakh crore (120 billion USD). The amount of NPAs written off by the SBI recently is 280,000 crores (42 b USD). The total amount of tax evaded by major 30 industrial corporations over the past fifty years is close to 3 Lakh crores (45 b USD). It is no wonder these figures with large numbers of zeroes do not make sense to Indians, but they make very clear economic sense to the collapsing Western Economies, who realize that India can bail out every other economy of the World for the next 100 years. The list if we start compiling about what we have, what we are losing, will be a Magnum Opus of two or three volumes and could well be titled “Corrupt Indians”.

The Indian economy now stands at 1.2 Trillion USD, which is what we call the white economy and the Black economy is another 1.2 Trillion USD. Our entire national debt is less than 90 billion USD.

If the massive assets created under the Indian Economic Miracle were to be sucked out of India, this would create a massive Western Economic Miracle. This process has started since 1985 and is continuing with and incremental numbing and dumbfounding of the minds of the Indian population, subjecting them to a massive array of propaganda with every Government turning India into a sloganocracy rather than into a thinking participative democracy.

The current round of demonetization is the first large-scale plunder executed on India. Let us take a closer look. On the surface, we invalidated all the 500 and 100 Rupee notes and in the process, according to official figures, 14 Trillion Rs (~0.25 billion USD) moved into the Banking system, from the general working public.  Then we re-introduced the same denomination 500 and a double denomination of 2000; the last two steps having no precedent in the entire history of demonetization the world over.

And then, we clamped restrictions on withdrawals to the bear-minimum limits, thus cornering all the cash into the Banking system. What happens to the velocity of the white money here? It drops heavily. High school students can predict its impact on the Economy.

Of particular note is that this 14 Trillion Rupees (0.25 Trillion USD) was the money put into the system by the General Honest and Hard-working people of India, the vast majority of who are not black-money hoarders. The black money which is about several tens of times this amount which was stacked up with the corrupt officials, politicians, industrialists, hawala dealers and other such groups, could not and did not go into the Banking system, if it did there is an obvious problem. Then where did it go?

Enter the Re-monetization of Black Money. Where did the massive amount of Black Money go? It is a simple question to which everyone knew the answer….even a rickshaw puller on the street could tell you the first part of where the black money went. But amazingly neither the corporate media, which has become a mirror image of the US fake media, nor the Indian economists, nor the Indian bankers ever discussed this question, the first part of the answer to which being common knowledge in the public.

 But anyway, the following lines will explain de-monetization. Most of the money that has not entered the system from the above groups, valued at a barest of minimum estimates at 5 Trillion USD was bought by many illegitimate money-exchangers at a discounted-rate, up-to 40%. These money exchangers who are connected to various political parties who were financing gold-, dollar-, pound- and diamond- and narcotic-smuggling operations and are spread all across the West Coast, Delhi and Southern Coastal towns of Tamil Nadu and Kerala, swung into action and purchased the entire Black Money at a discount of 40%. The next obvious question is does, either the Enforcement Directorate, the Income Tax Department, the CBI, the Police, the IB or any other branch of the Government have a detailed list of who these illegitimate money-exchangers were?

Now the next obvious question is why did these illegitimate money-exchangers do with if this invalidated currency has no value? Were they Saints trying to help the people of India who could not go to the banking system for help?

Well no, the same people who violate every international and national law and became a vehicle to suck the blood of the Indian Common Man could not have suddenly become saints! They did not purchase the money to alleviate the suffering of their fellow Indians at 40% discount. Then, what did they do with the cash?

Someone pointed a finger blaming the Banks. So, we had to believe that when the common man was standing for hours in the heat of the Sun to withdraw 4000 Rupees, that the “Corrupt Bankers” sold all the newly printed currency of the same-denomination to these black-money hoarding groups in high priority order (e.g. in just one exposed case, a low-level party official was caught with several thousand crores of newly issued currency).  First of all, they became richer overnight by about 30%, and this entire money now being legitimate. And what did they do with the new money?

 This legitimized money was then transferred out of India into the US, Cananda, England and Israel by purchasing dollars, pounds, diamonds and gold in the international markets. This sudden flow of money into the International Markets from India explains overnight hike in the price of Gold, and the hike in the exchange value of dollar and pound, though there was no valid economic reason that existed either in Europe or in America at that same time to explain this hike. So when every leading European economist had predicted that the value of the Pound will fall heavily post-Brexit, but yet —defying all those predictions of the European Economists— yet lo and behold! Surprise of surprises !! —the pound actually appreciated and Britain declared that they would be able to sustain the economic losses of the Brexit.  At the same stretch of time, even US and Canada predicted a revival of their nearly-destroyed real-estate markets and a revival of their long-pending infrastructure projects slated at a whopping  2-Trillion USD?

So, then from the Perspective of the Americans and the British, the obvious question they asked for their own motive was: “Why not ?? — Why not let Britain Survive and Why not let America Revive?”  To accomplish this, both of them were able to move 4 Trillion USD of hard earned money Indian money into their economies, from India and pump it into their economies in a matter of one week.

No wonder then, the Head of State of the British Government and of the erstwhile British East India Company was present in India, perhaps symbolically, to ensure that the money was properly transferred to them during the period of de-monetization; and no wonder all of this gang of Money Lenders praised her and elevated her to the level of Durga, so that she could punish the fingerprintable-biometrically-tagged-thieves and slaves of India one more time and can loot their wealth away.

While our own Prime Minister Mrs Indira Gandhi was not allowed entry into the Puri temple on the flimsy grounds that she had married a Parsi (who are actually very much a part of our own civilization), the British Prime Minister, a foreigner and of a semitic faith was by your own priests elevated to the level of the Goddess inside the sanctum sanctorum of a Temple, precisely when this saga was going on.

 No wonder also then that the Israeli president was present in India at this same time, to smoothen the workings of the transfer of the trillions of dollars and pounds.  This entire saga being too complex for the so-called Indian Economists to understand, our Prime Minister decided not to rely on them and handed over the process of de-monetization to Israeli-based economists and their advisors, and himself set out for a vacation in Japan.

Does this explain why our Honorable Prime Minister did not take the advice of Indian Economists, but chose to depend instead upon Israeli Economists/American Economic Think Tanks/British Based Friends-and-Family for his de-monetization decision?  Every other country that de-monetized including as recently as Spain, never re-issued the same denomination or a higher denomination currency after demonetization.  In fact, after demonetization, these countries have kept a restriction on withdrawals to a minimum limit, so that whatever is currently printed to the extent of cancelled denomination, it is used for the National rebuilding.

On a relatively much smaller note, let us mention what was done with the money deposited in the banks. Once the money was collected into the Public Sector Banks and put the restrictions on the cash withdrawals, they have written off the No-Performing-Assets bad loans to the tune of lakhs of crores, which were in the first place, given to the Politicians or Industrialists who have borrowed thousands of crores and never paid back a single penny (e.g. Kingfisher, Tata and many others) across the political spectrum under every government since Liberalization. Most of this money was used to revive sick industries in Britain, Europe, America, from which not a single pie was paid back to the Indian Banks. By cancelling all this debt, we have converted Indian white money into that much black money in the economy….. the Black money problem has actually worsened.

The wise bankers have not yet explained why a common man could not withdraw more than 4000 Rs from an ATM while politically connected Industrialists could withdraw thousands of crores and invest this England and America to revive their sick Industries. Of course, the Banking Chiefs are saying they are not cancelling the loans, but are keeping them in the Escrow Accounts and will collect them later. Somebody should explain to the people of India that if in the last 60 years they could not collect a single pie from them, there is no chance whatsoever of them doing it now.

In order to facilitate the help given by these Bankers and government, the unscrupulous politicians/industrialists, the requirement to put the identities of the donors on the political contributions has been removed in the recent finance bill.

But the banks are not only sitting on Rs 2.85 Lakh Crores (60 billion USD) of NPAs, they are also sitting on 100 times that value in terms of physical assets, which according to accounting depreciation rules will show as zero in their books. But the experienced accountants, international bankers, crooked politicians and the heirs of the East India Company, know the value of these assets and of the banks that own them. And Governments want to privatize these Public Sector Banks for all this “India-loving, India-favoring, India-Development” shouting groups do not want to purchase these PSUs with the debt. So they want to zero out the debt, purchase the bank suck the invisible assets and exit.  So much for the domestic aspect of what was done with the white money collected. It was converted into Black Money, although the scale was much smaller than what was done with the money outside India.

But there is still something does not add up with the picture presented above. If the Indian banks had got 14 trillion rupees this gets only 200 billion dollars. But the cash infusion into the American and British economies as explained above was about 4 Trillion Dollars. Then where did the balance come from? As has been noted even in our Parliamentary Committee Reports, the printing of Indian currency has been given to more than one foreign country more than once before. The public of India learnt about it much later via the Parliamentary reports. It would of course now merit the question: So, in the recent de-monetization (both prior to- and post-) was the money printed from outside the country and the figures being given to us by our financial centers the correct ones cannot be taken for granted?

The complete absence of any critical role of our own Economists and of our own IIMs and the minimal role if any of the NIBM, in what is a major national economic process, is indicative of their actual irrelevance in anything meaningful or in anything that is directly observed. Neither did we see them as much as offer the above explanation or any other convincing explanation to the people of India who experienced the event, nor were they taken into confidence by their own government.

Why can’t we see an independently-set up panel of Eminent Economic Professors being given an insight into the working of the RBI and be able to come up with Economic Theories that will tell us what is really happening in the country? This panel changing every two-years or so and drawn up from Universities across the country? Instead of the public seeing a highly erratic set of facts, confused theories combined with big words being used to destroy all common-sense questioning, with Economic Professors giving explanations that are only marginally more illumining than that which  un-educated common men talk, aping the words put into their ears by the corporate fake media?

But in the absence of this valid scientific process, the public are being left with no choice but to to start dis-believing their own financial authorities.

Read this explosive hard-hitting myth-buster, a timely reminder for the decadent Indian society; a masterpiece on Indian geopolitics – India in Cognitive Dissonance only in GreatGameIndia – India’s only quarterly journal on Geopolitics & International Relations.

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