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Indian Politics
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(12-13-2016 11:02 PM)scotian Wrote: What are your guys' thoughts on, or do you have any links to articles about Indian organized crime? I had a conversation with a Hindu co-worker about the invasion of the Sikh Gold Temple back in the 80s and he said it was because the Sikhs were storing drugs, guns and money there to fund the Khalistan separation movement. He went on to say that the Sikhs were the biggest gangsters in India and that's we now have Sikh gangs in Canada. I"m a pretty big fan of mafia stories but don't know much about organized crime in India, it must be pretty huge over there.
(12-13-2016 11:12 PM)Genghis Khan Wrote: What question do you want answered? I've gotten the impression you've moved the goal post a bit.
Your initial question: This to me implied you were asking if India could survive as a nation.
This implies a different question: Can India be successful/well-governed. Two different questions.
Quote:Also, the analogy is weak: 'diversity is our strength' mantra in the West is used to import foreignerswho have nothing in common with Europeans and do not assimilate at all. Nigel Farage himself said a big reason why Brexit succeeded was because they wanted to control their own borders and immigrations. Same with the United States - the US existed with 10-15% blacks for the longest time without really affecting the nation. It's only when you start importing hordes of immigrants who refuse to assimilate do you start having trouble.
Quote:I also want to point out the flaw in your own argument: on one hand you argue India was never a nation like Spain or the UK, yet elsewhere you bring up the Catalonian, Scotish and North Ireland independence movement. Not to mention that China too for a long time consisted of warring nations. Your argument could've been used for China a long time ago too: 'China was always a bunch of kingdoms fighting with each other that the Qin Dynasty unified'. And note that China has fallen apart several times.
Quote:As I said, whether India is well-governed and whether India remains as one nation are two separate questions. Let's not confound the two
Quote:Also, I can't comment on the relationship between the quality of governance of India and issues regarding religion, culture, etc. The average IQ in India is 85 and that may imply poor governance even if the entire country was one monolithic cultural block. As long as that IQ number doesn't change for the better, it really doesn't matter what the ethnicities, religious and cultural breakdown of the nation is.
Quote:So let's focus on your initial question of whether India can survive as a nation. Let's also clear up a second point: what time scale are we talking about? 10, 20, 50, 100, or 500 years?
Quote:This assumes the Muslim birthrate remains ahead of the Hindu one for a very long time. I don't know if this will be case: the gap has been closing and may be completely shut as the economy increases job and socioeconomic mobility for all:
http://www.thehindu.com/news/national/Mu...336665.ece
Besides the slowing down of the Muslim birth rate, who is to say the Muslim population won't be reduced. After all, Islam hasn't been in the subcontinent for that long and right-wing Hindu organizations are actively re-converting Muslims back to their ancestors' religion of Hinduism. The numbers are pretty small though:
Quote:Maybe that's the problem - Christianity and European cultures. Western cultures have always been more result-oriented, more individualistic. The reason Europe had the Industrial Revolution and conquered the world is the same reason Europe could also not maintain unity. Be very careful to assume because European cultures couldn't co-exist in one nation, Indian cultures such as Gujaratis and Punjabis cannot either.
Quote:I never said the Indian physical types are sufficient for a national identity. Your argument was that there was too much diversity in ethnicity, religion, language etc for India to be a single nation. I said those weren't enough of a big deal to break apart the country. That is a different argument than whether ethnicity on its own is enough to sustain a national identity.
You mention the tribals, Kashmiris and orientals. However, this is similar to saying you cannot downplay the native Americans in the US. Well, the reality is these groups are a small minority. How many Nicobar Island tribals are there? Enough to resist the 250,000 numbering Border Security Force (BSF)? Highly doubt it. These small groups can agitate all they want, unless they have the physical force to break apart their feelings are irrelevant.
This is a vastly different scenario compared to Europe where any nation can leave the EU and the EU can't do shit about it. Tribals, orientals and Kashmiris with all due respect do not remotely have the military force to break out on their own. But for argument's sake, let's say they did. So what? That's a very small part of the country and the bulk of India would still remain. And the nation of India with its currency, flag, constitution etc would remain.
Quote:I've addressed the muslim issue. Which parts of India don't celebrate Holi? Island tribals, orientals and Kashmiris? OK, anyone else?
The majority of the US has some level of resentment towards the East and West Coast elites. Does that mean the US is doomed to fail too? I don't know much about China or Russia, but I bet people in rural China and Siberia have resentment towards Beijing and Moscow. In every nation, you're gonna have some people feeling resentment towards others. That's not enough to break a nation apart.
Quote:EVERYONE cares about the British Raj. India is not the United States which achieved its independence from the Brits 250 years ago. It barely happened 50 years ago and it's still fresh in the country's memory. The scars of the British Raj are still deeply ingrained into Indian culture - the weariness Indian diplomats have towards the West and its ideas come directly from it. The reason why India took such a long time to accept capitalism is because it reminded them too much of the British/western world. Politicians like Shashi Tharoor are still pining for reparations from the British and there's people still demanding the Koh-i-noor be returned to India. I remember a decade ago a movie called Mangal Pandey came out. It was about the 1857 mutiny in British India - the movie was a huge sensation (it didn't do well at the box office), it created such an uproar of nationalistic Indian pride.
Quote:You seem a bit too fixated on some analogy between the EU and India. As I've tried to explain they are vastly different scenarios. You keep trying to bring up that because in Europe the EU seems to be falling apart, and everyone is pining for a nation based on some ancient culture India must be facing the same situation or eventually will. As such, you seemed to have missed my point that because of the British Raj, we now have a common currency, flag, army, sports teams, passport and anthem. All things that contribute towards a certain common culture and nationalistic pride. And the EU has almost none of those - not even the currency since the Brits never gave up the Pound.
Quote:Another weakness of 'the multiculturalism never works' argument is that it's always based on nations which import people who refuse to assimilate. The Roman Empire had that problem because it conquered a shit ton of land and then starting importing barbarians because it was struggling to maintain its own borders. I wonder if nationalism in Europe would be such a big deal right now if the economy was on the rise and migrant populations were minimal (you know, the way it is in India).
Bihar and Tamil Nadu - provinces and states in all nations argue. That's not enough of a reason to demand separation. Indian provinces have been fighting over all sorts of shit, I don't think I've ever heard of any of them demanding independence (barring Khalistan which was an anomaly). If anything, people tend to fight inside a province more often and demand their own province. Example of new provinces: Haryana, Telangana.
Quote:No idea, but they damn sure accept the Indian flag, army, anthem, public schooling system, currency, passport, national railway system, etc. Speaking of nationalist parties - one should note that BJP - an Indian nationalist Hindu party dominated the national and regional elections recently. The regional parties got whooped. The other national party, Congress Party, has traditionally done well. Let me know when a pan-European party can beat country-specific parties in European national elections and I'll take this Europe/India comparison seriously.
Quote:That people are inclined to support their own race (your example of Europeans supporting each other if they didn't win enough medals) does not negate my argument that Indians support each other for nationalistic reasons. I would be surprised if Chinese people didn't support other Chinese (race) people, but does that mean the Chinese don't have a national identity?
You haven't given a single piece of evidence that Indians only support Indians because of race. For your argument to stand you need to show me at least one example of Indians rejecting an Indian athlete based on race. I can give you an example of at least one Indian athlete being loved despite not looking anything like the majority of Indians: why do Indians love Baichung Bhutia, an oriental former football captain, so much?
https://en.wikipedia.org/wiki/Bhaichung_Bhutia
Quote:Quote:What other country in the world has succeeded without either a common language, ethnicity, or culture? None! That's why these are the main markers of a nation state and why the alt-right is booming in the West as these nations reject multiculturalism and why the nation state ultimately failed in the Middle East. You can't just invent national identities and expect them to succeed.
The alt-right is booming in the West because of mass import of low-skilled immigrants who refuse to assimilate, whether it's Muslims in Europe or Mexicans in the US. Had it not been for that type of mass import I doubt the alt-right would exist. India does not have this issue. I don't know enough about nation states in the Middle East to make a comment. Though it's hard for me to make a statement when Islam/Wahhabism is involved. I mean, I could look at the same nation-states in the Middle-East as you do and come to a different conclusion: what nation state can work when the majority of people follow Islam? It's unfair to say nations in the Middle East failed because of a lack of common language, ethnicity or culture when Islam is involved.
Define culture - see above, most Indians are Hindu and we have a common flag, currency, etc etc - all these things are part of culture. Again, Europe as the EU does not have anything like this.
Quote:Language - Belgium has existed as a nation for almost 200 years while having 2 languages. And unlike the Belgians, Indians don't fight over language continuously. China too has multiple languages, does it not?
Quote:One of the problems of putting a Western lens on Eastern nations is that the ensuing prophecies never pan out. I completely agree that if you use the strict Western definition of a nation-state, India makes absolutely no sense. It never made sense and should've collapsed 50 years ago. And yet as I've said, many Western commentators and political experts have predicted India's demise in its current state and always have they been hilariously wrong.
A lot of this ties into how people think. People in the West and India simply think differently about life, culture, politics, religion. Much of this has to do with the monotheistic religions that are prevalent in the West and how it influences your thinking. If you genuinely believe you must have one common tongue, ethnicity, and culture to survive (as we do in the West) and at the same time you invite barbarians into your home - no doubt it becomes a self-fulfilling prophecy of needing one common tongue, ethnicity, and culture to have a nation.
But that's not how Indian people think. Eastern philosophies have always been much better at dealing with seemingly extractible paradoxes like having a nation of 1.3 billion people with over a thousand languages and dialects, 4-6 religions and still somehow not collapse. India is not going anywhere.
(12-20-2016 08:30 AM)bacon Wrote:
Very interesting interview. According to this Indian who is an advisor to insititutional investors he thinks the cashless society plan is the worst man made disaster in Indian's history. He says of the 1.3 billion Indians roughly 1 billion live on 2 dollars a day and most of these people do not have bank accounts, are illiterate, and will be unable to adjust to electronic banking.
He states that roughly 93% of all the cash has been deposited into the banks because the middle class and up hold onto all the wealth have already done so.
He says that the government is making it illegal to own more than 50 grams of gold something like 15 ounces. And basically the gold dealers and all going underground and becoming a black market. (While not in this podcast the price of gold I have heard on other websites is going for 100% above the spot price in the west.)
![[Image: brexit.jpg]](https://s23.postimg.org/wgo37nvq3/brexit.jpg)
Quote:This article continues right where Part VI left off (for earlier updates on the demonetization saga see Part-I, Part-II, Part-III, Part-IV, and Part-V).
There is still huge support for Modi even among the poor. A big carrot is dangled before them, which makes many stay numb to their current suffering. During his election campaign in 2014, Modi promised to deposit more than Rs 1.5 million (~$22,000) in each poor person’s account once the government had seized all black money.
Massive problems have been reported with the new bills. Some have been printed on defective paper and are simply falling apart. The inferior quality of the print job is generally often on the appalling side of deplorable. The new notes are counterfeited with great abandon, quite likely to a much greater extent than they ever were in the past. So much for Modi’s plan to stop counterfeiting.
How he arrived at this fantastic figure is anyone’s guess. But given India’s GDP of $1,718 per capita, Modi has promised to deposit 1,300% of annual GDP in individual bank accounts. The total amount would be larger than the entire GDP of the US. Evidently, this does not even remotely add up.
So what is really motivating the anti-corruption feelings of so many Indians — including the salaried middle class — simply seems to be a mixture of greed and envy. There have also been hints that India’s income tax might be repealed. This is very appealing to the salaried middle class.
Banned bank notes must be deposited by 31st December 2016. Modi supporters widely expect that the windfall he has promised them will be announced soon thereafter. Not only isn’t there going to be any free stuff, but bank accounts are likely to stay frozen, because the Indian government is incapable of printing all the cash needed to re-liquefy the economy.
On January 1st 2017, when members of the salaried middle class start waking up to the reality that they have been scammed, Modi’s support should begin to crumble. Anecdotal evidence indicates that not only the opposition, but even members of Modi’s own party are unhappy with the demonetization scheme. These politicians have been left holding bags of banned currency, on which they have had to take a cut of 20% to pay for the services of the mafia.
They cannot oppose Modi openly, as that entails the risk that they might be seen as corrupt and unpatriotic. It seems likely that Modi will eventually lose his political support. But by then he may well have established himself independent of his party. He could easily be an autocrat in the making.
Vegetable prices have declined by 25% to 50%. Electronic transactions fail even in big cities, as connections are often bad. How is this supposed to ever work in rural places, where electricity and internet connections might not even exist? One needs to be mindful of the fact that prices are not going down due to excess supply, but because poor people cannot buy anything. Are they going hungry?
Is India the Next Venezuela?
India, the world’s largest democracy, is surrounded by banana republics as the accepted narrative has it: Pakistan, Bangladesh, Nepal, Sri Lanka, Myanmar, Thailand, and Afghanistan. The situation in the Middle East and in Africa is considered yet worse.
There seems to be a lot to celebrate about India. Its democracy has been sustained over the 70 years following independence. The army has remained fully under civilian control. Today India is also seen as an information technology juggernaut. It is claimed to be the fastest growing large economy. India is the next China, so the story goes.
The reality is very different from the perception of those who only see India through the lens of the international media. India has a population of 1.34 billion people with a GDP of $1,718 per capita. Almost 50% of India’s citizens have no access to toilets, electricity or running water. 48% of children under the age of five are stunted, a percentage greater than in any other major country in the world.
Contrary to the perceptions created by the international media, if Africa were a country, it would actually look better than India with respect to these metrics. India has lower GDP per capita and a proportionately greater number of Indian children are exhibiting stunted growth.
As a second step in trying to understand India, it makes sense to split the population in two parts: the 25% that have benefited — directly or indirectly — from the internet and cheap telephony over the past three decades, and the remaining 75%, whose lifestyle is comparable to a medieval existence, almost animal-like.
For all intents and purposes, India is a banana republic, a wretched place of poverty and disease. The only difference between India and other well-recognized banana republics is that India has so far avoided overly negative headlines in the international media; Indian lobbies in the US and the UK work very hard to make India look good. As noted above, this mainly serves to prop up the self-esteem of NRIs.
It has become fashionable to compare India to China. This comparison seems extremely far-fetched. Chinese GDP per capita is more than five times higher, and is growing more than four-times faster than India’s in absolute terms. If India keeps growing at the recent high rate of 7.5% and China at a mere 6.3%, it will take India more than 135 years to catch up with China’s economic output in absolute terms.
People who have been concerned about the demonetization policy have repeatedly asked me if India is the next Venezuela. My response was “I wish it were.” On per capita basis, Venezuela’s GDP is more than seven times that of India. Venezuelans fight when they go hungry. Indians are too weak to even leave their homes. Indians should be fighting, particularly the poor, who have always got a very bad deal.
When India becomes the next Venezuela, which hopefully won’t take longer than three decades, one would actually have cause to celebrate.
Almost half of Indians have no choice but to defecate in the open. What looks like a simple problem has proved impossible for India’s government to solve. The government nevertheless wants to send probes to Mars and make India the first cashless economy. In due course, Modi will get swept away by India’s realities. The problem is that whoever succeeds him, will very likely be worse. A military general perhaps?
Millennia of human progress in terms of economic transactions have been wiped out overnight. People have been forced to go back to barter.
Demonetization Continues
More than 90% of the banned banknotes have reportedly already been deposited in banks. This is widely hailed as a victory of the government. As Mumbai-based economist Mithun B. Dutta explained in a note, the reality is the exact opposite. He argues that demonetization would only have made sense if a large part of the banned currency had never made it into bank deposits.
Up until recently, the banned currency was selling for a 20% discount to its face value. Not only has this discount disappeared in recent days, but the remaining banned bills are now trading at premiums of up to 10%.
The poorest people lack the connections to deposit their cash and get it back out. The queues outside bank branch offices have continued and the mood is increasingly desperate. Businesses are closing, with many too damaged financially to be able to ever restart again. Poor people are losing their jobs.
Food prices are down by 25% to 50%, leaving farmers without the funds needed to support the next crop planting cycle. Shops remain empty, as discretionary spending is put on hold. Many businesses have suffered sharp declines in sales. Wheat sowing is said to be down sharply as well.
Who cares when one has problems of one’s own? This half-dead old woman serves as an example for more than 75% of India’s population. She cannot even write her own name, but is expected to learn to use plastic cards. For Modi she does not count if she isn’t paying taxes and isn’t part of the formal economy; but it is Modi who will eventually be thrown out.
Desperate poor people, whose pain is not reflected in any news or statistics.
Members of the salaried middle class, Modi’s biggest supporters, are slowly starting to face the pinch as well. When they went to their banks on December 1, 2016 to collect part of their salaries, they had to rub shoulders with the poorest of the country, for whom they have deep-rooted disgust. And then they had to go back home empty-handed or with only part of the cash they had wanted to withdraw.
They are still hoping that their bank accounts will be unfrozen after the demonetization deadline on December 31 passes. They will soon realize that their accounts will stay frozen, as simple math shows there is no other possibility. Modi will have to make a new announcement on December 31 to keep his social engineering project on track with yet another patch-up job, and to keep people’s hopes up.
There has been a significant surge in spontaneous outbreaks of violence across the country. Indian police are not sufficiently trained and lack the competence to keep a material increase in social unrest under control.
Conclusion
No one has explained yet how the currency demonetization policy will lead to less corruption. Most of the outstanding cash has already made it into bank accounts, but despite that, the queues at bank branch offices seem to be never-ending. It is the unbanked, the poorest people, who are most likely to have failed to deposit their currency and get their cash back out.
The government clearly has the intention of keeping bank accounts frozen after the official deadline of 31st December 2016. The economy will remain stalled at an enormous human cost. Modi is losing his control over his own party. He has isolated himself in a cocoon, surrounded by yes-men; but the middle class, which has so far considered itself to occupy the moral high ground, is starting to experience cash-related problems as well now.
At the same time, the political opposition is fragmented and weak. Modi probably cannot even imagine losing power, believing himself to be indispensable. If he sees his support dwindling, India could easily end up being pushed toward outright autocratic rule.
To properly understand all the undercurrents, it is best to consider first principles. India is an extraordinarily irrational, tribal and superstitious place. Despite the country’s long association with Britain, which by now has lasted over 300 years, it has failed to adopt the concept of reason. India and its institutions as they exist today were constructed by the British. It was inevitable that they would crumble, as India lacks the will and human capabilities needed to maintain them.
A society lacking in rationality cannot be expected to be able to differentiate between right and wrong. It cannot have respect for the individual, or develop moral instincts. Its people will be lacking in empathy and compassion, as demonstrated by the indifference of members of the middle class to the suffering of their desperately poor fellow citizens.
When such people are given western education, it merely sits in their minds as yet another belief system. Evidently, they don’t even understand that an ethical society cannot possibly be compatible with a government reneging on the contract that is printed on its currency.
Even poor people suffer in silence, or even worse, are fighting among themselves. They too lack the necessary understanding of moral principles to feel revulsion when they are mistreated. Instead of directing their anger at those responsible for their plight, they take out their frustrations on the nearest persons weaker than themselves.
With the passage of time, Indian institutions are necessarily mutating to accommodate India’s irrational culture. Culture cannot be changed through education alone, and changing it takes a very long time. India is likely to disintegrate at some point, fragmenting into tribal units or several smaller countries. Institutional decay has been underway for the past 70 years, but with Modi as a catalyst, its pace is picking up. The story of many countries in South Asia, the Middle East, Africa and large parts of South America is quite similar.
What should investors do? Ultimately India is likely to turn out to be a terrible investment destination. Indian savers should consider moving their wealth abroad. Indians are still permitted to transfer $250,000 per year, but eventually capital controls are bound to be instituted. Keeping in mind that Indian savers are already paying premiums of 30% or more to purchase US dollars or British pounds, there seems hardly a good reason for foreigners to send money to India.
Quote:India, the world’s largest democracy, is surrounded by banana republics as the accepted narrative has it: Pakistan, Bangladesh, Nepal, Sri Lanka, Myanmar, Thailand, and Afghanistan. The situation in the Middle East and in Africa is considered yet worse.
There seems to be a lot to celebrate about India. Its democracy has been sustained over the 70 years following independence. The army has remained fully under civilian control. Today India is also seen as an information technology juggernaut. It is claimed to be the fastest growing large economy. India is the next China, so the story goes.
The reality is very different from the perception of those who only see India through the lens of the international media. India has a population of 1.34 billion people with a GDP of $1,718 per capita. Almost 50% of India’s citizens have no access to toilets, electricity or running water. 48% of children under the age of five are stunted, a percentage greater than in any other major country in the world.
Contrary to the perceptions created by the international media, if Africa were a country, it would actually look better than India with respect to these metrics. India has lower GDP per capita and a proportionately greater number of Indian children are exhibiting stunted growth.
As a second step in trying to understand India, it makes sense to split the population in two parts: the 25% that have benefited — directly or indirectly — from the internet and cheap telephony over the past three decades, and the remaining 75%, whose lifestyle is comparable to a medieval existence, almost animal-like.
For all intents and purposes, India is a banana republic, a wretched place of poverty and disease. The only difference between India and other well-recognized banana republics is that India has so far avoided overly negative headlines in the international media; Indian lobbies in the US and the UK work very hard to make India look good. As noted above, this mainly serves to prop up the self-esteem of NRIs.
It has become fashionable to compare India to China. This comparison seems extremely far-fetched. Chinese GDP per capita is more than five times higher, and is growing more than four-times faster than India’s in absolute terms. If India keeps growing at the recent high rate of 7.5% and China at a mere 6.3%, it will take India more than 135 years to catch up with China’s economic output in absolute terms.
People who have been concerned about the demonetization policy have repeatedly asked me if India is the next Venezuela. My response was “I wish it were.” On per capita basis, Venezuela’s GDP is more than seven times that of India. Venezuelans fight when they go hungry. Indians are too weak to even leave their homes. Indians should be fighting, particularly the poor, who have always got a very bad deal.
When India becomes the next Venezuela, which hopefully won’t take longer than three decades, one would actually have cause to celebrate.
(01-24-2017 09:31 PM)MOVSM Wrote:(01-24-2017 08:12 PM)rw95 Wrote: What the hell happened to India?
Invasions of Aryans, Mongols, Arabs, Hindu Kush (slaughter of Hindus), Europeans, Engllish, USSR (check Bezmenov).
It is only now starting to recover in last... what? 30-40 years?
(01-24-2017 09:35 PM)SamuelBRoberts Wrote:(01-24-2017 09:31 PM)MOVSM Wrote:(01-24-2017 08:12 PM)rw95 Wrote: What the hell happened to India?
Invasions of Aryans, Mongols, Arabs, Hindu Kush (slaughter of Hindus), Europeans, Engllish, USSR (check Bezmenov).
It is only now starting to recover in last... what? 30-40 years?
Was it the USSR or the Mongols who made them crap in the street, and who made them elect a demagogic idiot who promised to put 22,000$ in everybody's bank account? Perhaps it was the Aryans?
(01-24-2017 09:37 PM)MOVSM Wrote: Crapping in the streets I'm pretty sure is the Arab thing, maybe French. Electing an idiot is the effects of soviet, err, international assistance.
(01-24-2017 09:45 PM)SamuelBRoberts Wrote: So all the Indians had working toilets and outhouses, until the French came along and said, "Why bother with those toilets? Just use the streets!"
I don't know enough about Indian history to say that what you're describing is completely impossible, but I would want to see some fairly solid evidence.
(01-24-2017 10:05 PM)MOVSM Wrote:(01-24-2017 09:45 PM)SamuelBRoberts Wrote: So all the Indians had working toilets and outhouses, until the French came along and said, "Why bother with those toilets? Just use the streets!"
I don't know enough about Indian history to say that what you're describing is completely impossible, but I would want to see some fairly solid evidence.
Pretty sure that has to do with invasion of muslims and ensuing genocide. These things generally result in degradation of standard of living.
But yes, those with better knowledge of Indian history please clarify the record.
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