Sunday, 13 December 2009

life in financial markets & general: food gets expensive in india

My country was abundant in natural resources until the industrialists, consumers and likes of Chidambaram and Manmohan Singh decided to fiddle too much with the nature's bounty in the name of 'development'.

Vagaries of climate, particularly rainfall, induced by global warming and other harmful consequences of mankind-generated toxic gases' emissions in the atmosphere and destruction of ecology, are creating with agriculture in India. And the Indian government is outright refusing to play its part in bringing down such emissions.

Anyway, agriculture-rich India is since the last couple of years facing a problem in keeping up the produce of essential food items such as grains, pulses and vegetables. The soil of India has also been badly affected by excessive use of chemical fertilisers and insecticides (that government calls as "green revolution").

Prices of food items have shot up by 50% and more in the last one year. See the graph below that shows India's Wholesale Price Index and the food index (click on the image to see it enlarged & clear).



Thursday, 10 December 2009

life in financial markets: home bias in markets such as india & china!

Unfailingly, over the last 10-12 years, we have clearly seen a strong and sustained home bias in the writings and views of almost very economist and market/investment analyst/guru in fast-growing economies such as India and China.

I think, half of this is based on genuine factors but the other half is on account of complete blindness to the internal developments, their causes and long-term implications.

The same is, however, not the case with North American and West European economists and market analysts as there are always a decent number of them who do not hold themselves back from highlighting the negatives in their own countries' economic developments.

Nowadays, Indians and Chinese economists/analysts are also beginning to get extremely confident that their countries' economies will soon become larger than the western economies. No problem with this confidence but then these same very jingoist Indian and Chinese economists/analysts lose their courage when it comes to aggressive lobbying by western companies to set up large industrial projects in all violation of environmental, forest and tribal laws and at tax rates much lower than those applicable to domestic companies.

In the ongoing tussle at Copenhagen climate change summit between India/China/etc on one hand and US/UK/Australia/etc on other hand, I fail to understand why the former does not say 'yes' to firm commitments on carbon emissions and then charge a hefty 'carbon tax' on all their exports to the latter. This is a direct way of making western consumers pay for their high carbon footprint. Also, a high carbon tax should be imposed on the consumption of the very affluent within India/China/etc as their carbon footprint is at par with the affluent of the West.

Sunday, 6 December 2009

life in financial markets: of spikes and regulatory opaqueness

That the Securities and Exchange Board of India (Sebi) is presently investigating a spike in prices and trading volume in the shares of Reliance Petroleum in November 2007 would not have as a surprise to the market participants. The spike was indeed rapid fast (see chart below, click on the image to see it enlarged & clear).


Sebi, while probing the largest traders in RPL shares in early November 2007, found out that about a dozen firms that were among the largest traders were linked to Reliance Industries. Spokespersons of RIL have, however, rubbished any allusions that the company violated any Sebi regulations.

RIL did, however, disclose on 23 November 2007 that it had sold 1804 lakh shares it held in RPL then (RPL was merged with RIL this year) at an average price of about Rs 223. RPL's share price had shot up by about 35% in a span of a week in early November 2007 although the broad market index, Nifty, had corresponding moved up by just about 4%.

It is now likely that RIL will file for a consent order with Sebi and this will push dirt, if any, under the carpet. Because, as I have written about problems with opaqueness in Sebi's consent order, the details of the violations are not given in the consent orders passed by Sebi. One never know what exactly happened and so one can never tell whether the monetary amounts collected under the consent orders are fair or not.

Sunday, 29 November 2009

life in general & financial markets: can we please have a nuclear-free India?


On Friday (27 November '09) this week, one of the few nuclear plants here, in India, (see the map of plants locations in India above; it was taken from http://www.cscap.nuctrans.org/Nuc_Trans/locations/india/india.htm and the original image is at http://www.cscap.nuctrans.org/Nuc_Trans/images/nuc-map1.gif) experienced a disaster. The newsreport below provides the detail.

Advanced science can offer potential benefits but these should far outweigh the potential dangers to Earth ands all its inhabitants. Nuclear science, unfortunately, does not fit this bill.

The harmful radiation leak in the Kaiga nuclear plant (see its pic to the left; taken from http://www.zeenews.com/news538492.html an the original pic is at .com/Img/2009/6/11/kaiga1.jpg)

I wish for a nuclear-free India, and a nuclear-free Earth.
has currently harmed humans (employees of the factory) but there is also the future potential risk of the ecology around the plants being completely devastated by a careless operation of the nuclear plants.


timesofindia.indiatimes.com/india/N-plant-radiation-leak-in-Karnataka-leaves-45-staffers-sick/articleshow/5280518.cms
N-plant radiation leak in Karnataka leaves 45 staffers sick
Prashanth G N , TNN 29 November 2009, 01:30am IST
BANGALORE/KARWAR: In a nuclear accident that is bound to raise key safety concerns ahead of India’s ambitious atomic expansion programme, about 45 employees of the Kaiga atomic power plant suffered radiation poisoning when radioactive heavy water from the plant contaminated the drinking water. Kaiga is one of India’s newer nuclear reactors.
There was no official word from the usually secretive nuclear establishment. Sources said the employees were in hospital because they experienced a mildly higher level of radiation than permissible on Friday after drinking from a water cooler near an open area in one of the reactors.
Though a tiny amount of radiation is normal, scientists said the contamination was unusual because the affected employees do not go into the actual reactor area but work around it. ‘‘With no exposure to the reactor directly, it was surprising to see them with mildly higher level of radiation,’’ was the only comment Kaiga station director A M Gupta had to offer.
Heavy water molecules have two atoms of deutrium instead of the hydrogen in drinkable water H2O. It can cause fatally high levels of toxicity in humans.
The Nuclear Power Corporation, which runs Kaiga, did not respond to media queries over the nuclear accident. According to the deputy commissioner of Uttara Kannada N S Channappa Gowda, there were no casualties or injuries reported.
‘‘Investigation is on and we’ll probe how the (heavy) water got into the drinking water. For now, we have isolated the cooler and drinking water. Simultaneously, water testing is on,’’ said an NPC official, speaking on condition of anonymity.
The contamination was detected when some of the affected employees felt a change in the pattern of urination.
They were rushed to the doctor and all of them were tested and found normal. The employees even got back to work.
However, tests confirmed radioactivity in the urine samples. Sources said some amount of used heavy water, used as a moderator in reactors that use natural uranium as fuel, had got into the cooler containing drinking water and contaminated it. This heavy water caused the higher radiation. NPC has not released the names of those hospitalised at NPC’s medical establishment at Malapur.

Saturday, 28 November 2009

life in general: (PICS IN THIS POST MAY SHOCK YOU) butchering animals


(WARNING! PHOTOS IN THIS POST MAY BE TOO STRONG FOR SOME TO SEE)

Violence is cruel and extremely degrading to those who suffer from it. Today is Bakri Id festival of Muslims where they kill a large number of goats as a sacrifice.

We mercilessly butcher animals not just for our food but also due to religious fervour. There are contradictions even when one religion tries to show compassion for animals. For instance, Hindu right-wing group, RSS, says animal sacrifice is inhuman but then also encourages full commercial use of bull power (that I can add is extremely painful to the bulls)

Below are five sets of photos -- first one pertains to Bakri Id, second one pertains to Hinduism's rituals, third one pertains to Christianity's turkey massacre during Thanksgiving, fourth one pertains to consumption of eggs and chickens by humans and fifth one pertains to consumption of pork by us.

I wish for a world where humans stop inflicting such extreme cruelty towards animals.

I REPEAT. THE PHOTOS ARE VERY SHOCKING.


SET 1: GOATS MURDERED DURING MUSLIMS' BAKRI ID FESTIVAL:

a) This pic has been taken from
tfproject.org/tfp/general-discussion/143745-gday-yemen-eid-al-adha.html and the original pic is at i165.photobucket.com/albums/u74/nab51e/Yemen%20-%20Eid%20Al%20Adha%202008/IMG_2386.jpg



b) This pic is taken from
rang7.com/myindia/photo/429.htm and the original pic is at rang7.com/myindia/uploads/11057/photo/429.jpg




SET 2: MURDER OF GOATS IN HINDU RITUALS

a) This pic is taken from
thefirstpost.co.uk/54103,in-pictures,nature,daily-animal-picture-hindu-goat-sacrifice-in-bangladesh



b)
This pic is taken from
beacononline.wordpress.com/2008/10/08/ and the original pic is at beacononline.files.wordpress.com/2008/10/maar-the-animal-sacrifice.gif?w=524&h=349



SET 3: MURDER OF TURKEYS DURING CHRISTIANITY'S THANKSGIVING FESTIVAL

a) This pic is taken from
vdomck.org/2008/11/the-thanksgiving-turkey-murder.html
and the original pic is at vdomck.org/wp-content/uploads/2008/11/dscf4408.jpg




b & c) These two pics are from
theslowcook.blogspot.com/2007_11_01_archive.html
& the original pics are at
1.bp.blogspot.com/_CZo9BuHHfqE/R0GMd7IybpI/AAAAAAAABtg/G0du-DWGQFE/s320/Turkey+slaughter.2007+021.jpg & 3.bp.blogspot.com/_CZo9BuHHfqE/R0GN8bIybqI/AAAAAAAABto/CutuKaO83BQ/s320/Turkey+slaughter.2007+036.jpg






















SET 4: CRUELTY TO CHICKENS AND HENS SO THAT THEY BECOME OUR FOOD

a & b) These two pics are from a CD I had received from the Bombay office of People for the Ethical Treatment of Animals about 3 years back.





SET 5: EXTREME CRUELTY TO PIGS BEFORE THEY BECOME PORK FOOD FOR HUMANS

a, b & c) These are grabs from the video at youtube.com/v/fDiSR0LGry8&color1=0xb1b1b1&color2=0xcfcfcf&hl=en_US&feature=player_embedded&fs=1


















Wednesday, 25 November 2009

life in general: india's regressive stance on climate change mitigation measures


India, China and some other economically-growing countries are refusing to commit to any global measures to reduce emissions of Earth-harmful carbon dioxide and other Earth-harmful gases. The logic is that the already-large economies have, in the last couple of decades, grown on the back of severe emissions and so these large economies should first cut down drastically on their emission levels.

So far, this line of argument is fair. The large economies should actually, and concretely, reduce their emissions.

But after this, the egg-headedness of India, China etc comes into play. Saying that they will not commit to emission-reductions is a regressive decision. The next 2-3 decades will see the highest harmful-gases emissions, on our Mother Earth, from China and India if it goes on at the current rate.

According to the ruling political forces from India & China the large economies became large only because of their past, un-hindered, emissions and so their growth can not be stunted. But in this argument it is forgotten that more than half of what is produced in countries such as India and China is consumed in the already-large economies. So, instead of cribbing, India and China should impose an extremely-large carbon tax on all its exports to the already-large economies. In the policy matters on environment and emissions, the guts to take on the western large economies should be in this fashion rather than simply say we will not commit to emissions and go on polluting and producing cheap goods and services that is lapped up by consumers in the western countries.

Also, India's and China's un-checked and rampant emissions by its industries are going to do more harm, than good, to their own populations. They will do well to remember this.

Tuesday, 24 November 2009

life in general & financial markets: india's connection to blood diamonds

Many many women, young or old, in India or elsewhere, tend to be obsessed with wearing jewellery and diamonds are the most sought after jewellery item. But behind jewellery, and most particularly behind diamonds, lie a sordid tale of terror, exploitation and horror.

Indian businesses are also participants in such a sordid tale. A news story in the latest issue of Tehelka brings out what some of us have always been aware of and conscious about. Here it is:


http://www.tehelka.com/story_main43.asp?filename=Bu281109the_blood.asp
The blood diamond files

Following the trail from Johannesburg to Mumbai, SHANTANU GUHA RAY finds that India is an important destination for Zimba stones

image
Priceless stone Sefadu, from Sierra Leone, is the largest uncut diamond

IT’S A crowded street market in Johannesburg. Boisterous youth and elderly women have set up stalls to sell polished ostrich eggshells, wrought iron flamingos and colourful bead strings. But in this Jo’burg bustle, there is often another hustle: the simple street markets also play host to the kind of sellers who come in big flashy cars and sell an item that’s quite, quite small in size — though not quite small when it comes to price.

The scenes are reminiscent of the 2006 Leonardo DiCaprio Hollywood movie Blood Diamond, and these people are dealers, many of them former mineworkers who have been driven out by the military from the Marange mines.

Diamond merchants such as these operate freely on the streets of Jo’burg. Those who cannot strike a deal here can head to Mozambique’s Vila de Mancia, a town close to the Machipanda frontier often referred to as diamond country.
These areas have dealers from everywhere, Somalia, Mozambique, Congo and Sierra Leone. They usually offer diamonds in tea-bag size sachets, a little like packets of washing powder or shampoo. “It is easy operating in South Africa and Mozambique if your passport is in order,” says a dealer.
The brisk trading happens openly in the Jo’burg street markets, under umbrellas shading the open-air coffee tables, where waiters serve Huntley Palmer biscuits as free accompaniment to guests who complete their transactions within seconds. They then discuss, among other things, the 2010 football World Cup, national politics and cricket.
But this open trade is, as Surat diamond trader Vipul Jain explains, just the first step towards credibility for diamonds mined from South Africa’s wartorn and troubled neighbours — Angola, Sierra Leone and Zimbabwe. “Direct import is impossible. The traders use this route to get the Zimba stones a taint-free stature,” Shah told TEHELKA.
Once sold, the diamonds first go to Dubai and then to Asia, usually India. But now, they have an air of certification about them — call it the Johannesburg effect. This means that importers can be sure the diamonds and gems have a stamp of legitimacy, regardless of which country they come from.

image

Hard life A worker at a diamond mine in eastern Zimbabwe
Photo: GETTY IMAGES

Although many operators in Johannesburg say it is getting harder to smuggle Zimbabwe’s diamonds, the sale continues unabated. The Zimbabwean authorities have awarded contracts for the Marange mines to two companies: Mbada Mining, a little-known local firm, and Canadile Miners, a company that has South African investors. Desperate for cash, Zimbabwean Mines Minister Obert Mpofu has gone ahead with mining what he believes can bring the cash-strapped nation a whopping £360,000 a day.
Since the Zimbabwean government took over the mines in October 2008 (after the Mugabe regime reached a power-sharing formula with challenger Morgan Tsvangirai), there have been reports of rampant abuse by the military forces: forced labour, child labour, beatings and killings.
For the importers, there are several advantages. For one, this trade ensures a steady supply. For another, they are substantially cheaper. For firms in places such as Surat, home of the Indian diamond cutting and polishing industry, already reeling from a global recession in cutting and polishing in 2008, these stones from conflict zones in Africa — estimated at nearly 20 percent of India’s annual diamond imports — are often 40 percent cheaper than the rest.
Most of the time, that is. Sometimes they are not. Last week, a Mumbai firm that had imported uncut diamonds worth several crore rupees from an African nation delayed taking delivery of the packet from the customs. The packet, which had come from Congo, was filled with plastic granules and brass powder. Ekta Enterprises, which has offices in Mumbai and Vadodara, had imported diamonds worth Rs 17 crore. “We were amazed to find plastic granules and brass powder,” says Naresh Mehta, a Mumbaibased diamond merchant and a valuer.
Customs authorities say under or overvaluing diamond shipments is routine, but plastic granules in a packet was indeed surprising. “We are tracking the case,” Deputy Commissioner (Customs) Dr Somesh Chandra, told TEHELKA. Still, the completely fake consignment was probably an aberration. When diamonds are imported from conflict areas, consignments normally have a Kimberley Process (KP) certificate that 74 nations dealing in diamonds recognise.
In this case, even the certificate was faked. Gujarat Jewellery Export Promotion Council (JEPC) Chairman Vasantbhai Mehta is certain it’s a case of cheating. “Either the parcel has been swapped or it is a hawala transaction,” says Mehta. “For more than four to five years, many such diamonds have hit the Indian shores and we have realised these are Zimba stones (blood diamonds) much after they were cut, polished and exported,” he adds.

image

Brisk trade Employees at a Surat diamond cutting and polishing factory
Photo: REUTERS

image

Sparklers Diamond jewellery displayed at a store in London
Photo: GETTY IMAGES

image

Tainted shine A man checks raw diamonds in war-torn Sierra Leone
Photo: AFP

Trade in conflict diamonds has certainly been going on for some years, augmented by – experts claim – the efforts of some of the world’s top diamond miners to slowly increase output.
Meanwhile, demographic changes have tended to sap demand in traditional markets in the West and threatened a long-term crisis for the industry. With demand ebbing from the US and Europe, Surat traders are now seeking newer markets: 70 per cent of polished diamonds are now exported to Hong Kong, China, UAE, Israel and Australia.
FIGURES AVAILABLE from the Gems and Jewellery Exports Promotion Council show that export of polished diamonds from India to the US — the world’s biggest market (at 60 percent in better days) — fell by 30 percent in the first six months of the current fiscal year ($1,791 million, compared to $2,527 million in the corresponding period in 2008). But then, exports to Hong Kong and China grew nearly nine percent. For the record, polished diamond exports to Hong Kong in the first half of 2009 were $3,126 million, compared to $2,853 million in the same period last year. Prices for rough, uncut rocks have risen more than 40 percent since February, impacting retail sales that nosedived to $65 billion this year from $74 billion in 2008.
And it is here that the low-priced Zimba and other ‘blood’ stones make a huge impact. They come cheaper, are routinely smuggled across the South African border and then end up in countries like India and Israel. “And these stones are not just coming from South Africa, they are coming from a number of African nations that receive such gemstones,” says Pravin Nanavati, a Surat diamond trader who has tracked such supplies.
Global experts told TEHELKA that an international effort to curb such illegal shipments could catch countries like Botswana and Namibia in the crossfire. The Kimberley Process could suspend Zimbabwe from the world diamond market because of human rights violations and other irregularities at the notorious Chiadzwa diamond fields.
In fact, the KP report on the state of diamond trade calls for a temporary ban of six months or more to allow Zimbabwe time to comply with Kimberley Process standards. “If such smuggling continues, southern Africa’s main diamond producers, Botswana, Namibia and South Africa, may find their excellent reputation undermined if they continue to be a destination for diamonds from conflict zones,” adds Nanavati. The report by the KP review mission has already suggested that other KP participants in the region, particularly Botswana, South Africa and Namibia, should act against smuggling.
But will that happen? Diamond merchants in Surat and Mumbai say smuggling has been fuelled – at least in the last six to eight months – by an increased demand that has had the tiny Gujarat town gasping because of a drop in the supply of rough diamonds caused by reduced production at downturn-affected companies. “Everyone wants to pick up whatever supplies and it is here that the smugglers are slowly pushing in such diamonds,” says Auguar Sanghvi, another Surat diamond trader.

The blood diamonds first go to Dubai and then to India, where they turn ‘clean’

With steady supplies available now, and demand having picked up, very few importers bother to check the origins of their diamonds. On paper, the consignments come from a legitimate nation, right? And for a cutting and polishing industry that is showing signs of revival after almost a year of depression, would anyone genuinely care to bother too much about the antecedents of the product? The answer is a simple no. “The problem is that no one actually knows the origin. Or, very few would actually know and care about not getting these stones because the KP certificates are there. But we must be cautious,” says Rohit Mehta of the Surat Diamond Association.
BHP Billiton, among the largest mining companies in the world, has already hiked rough diamond prices by five to 10 percent. Diamond Trading Corporation, a leading distributor and part of the De Beers group, is about to follow suit. The increase in prices has been triggered by huge demand. Owners of large units are flush with orders for supplying polished diamonds before Christmas. “It’s a demand and supply principle and everyone is awaiting supplies,” adds Mehta.

Dealers sell diamonds in tea-bag size sachets, a little like packets of washing powder

Still, the fact that blood diamonds are among those being imported continues to cause concern. Tim Dabson, executive director of De Beers, recently told an international conference in Antwerp, Belgium, that ethical consumerism is of utmost importance if someone has to checkmate the outflow of conflict gemstones. “The risks include the tendency of consumers in India and China to favour less expensive gems than what sell elsewhere,” Dabson told The Wall Street Journal.

Last June, the Human Rights Watch exposed the horrors of Marange and shot a film to highlight the situation there. A task team from the KP Certification Scheme confirmed HRW’s findings and recommended that Zimbabwe be suspended from trading in diamonds. But the horrors have continued. “Gems from Marange travelling to India, China and Israel are blood diamonds, extracted through the persecution and oppression of those living in the area,” Georgette Gagnon, HRW’s Africa director told TEHELKA, adding that importers need to make sure of the stones’ origin.

image

Digging dirt Miners often violate rules in Congo and Zimbabwe

But it’s not easy. In fact, diamond merchants in Surat and Mumbai say it’s almost impossible. “When we are following the KP certificates, we are playing it safe. The onus to check and cross check whether such diamonds are coming from Congo, Zimbabwe and Sierra Leone lies on those who keep getting supplies from such troubled zones,” says Nanavati.

He says there’s enough of a divide within the Kimberley Process itself on whether there should be a suspension of such supplies or whether there should be some strict monitoring of such mining. Many have argued against the scheme because Zimbabwe has been defended most strongly by South Africa, Namibia, Congo and Russia.

Importers don’t check the origin of such diamonds, when sent by a legitimate exporter

Ian Smillie, one of the KP architects who resigned earlier this year in protest against its working, told Bloomberg that he found the functioning of KP farcical, irresponsible and a disgrace. “Here we have a government that has lied repeatedly to the KP and has a tenuous grip on its diamond industry — that courtesy of gross human rights violations. The regulatory body that is supposed to assure consumers that the diamonds it certifies are clean ignores its responsibility and sets up an open-ended tea party. It will turn the KP into a laughing stock and give Zimbabwe more or less carte blanche for business.
HE SHOULD know. Global Witness, a London-based campaign gro - up, said the recent KP decision to allow Zimbabwe to sort out its troubled mining business would ruin the credibility of the watchdog body.

There are other problems as well. Diamond mining in eastern Zimbabwe is being carried out by companies in which South Africa’s Old Mutual has a share. The companies are now setting up a diamond- cutting operation at Harare airport: that will allow them to export diamonds without the KP certification.
Once, conflict stones made up about 15 percent of the world market. Though they are believed to account for less than 1 percent of stones bought and sold today, it’s also a fact that millions of carats produced annually remain untraceable. “They must track all supplies from Africa,” Smillie told Reuters.
His report highlighted the case of Congo — a big source of diamonds for India and the world’s second largest producer of diamonds by volume. Congo is a KP member but, despite recommendations to improve traceability, lack of internal controls has created the world's most perfect system for laundering dirty diamonds to Asia, the report said. In 2008, Congo produced more than 33 million carats, accounting for around 20 percent of the world diamond market. However, the study found that nearly half of the country’s exported stones were untraceable.

Congo produced over 33 million carats for exports but half of it was untraceable

But there are those trying to stop illegal diamond trafficking. Israel has agreed to lead a group working to stop rebels from using the $6 billion trade in conflict diamonds to fund fighting.
The Israel Diamond Institute said Boaz Hirsch, the country’s minister of industry, was elected as KP chairman after a UN panel of experts said Israel, whose diamond trade is worth more than $10 billion, might be involved in the illegal export and sale of blood diamonds from the Ivory Coast. At least, the process of trying to plug the loopholes in the illegal diamond trade has begun. Where it will end might just depend on how discerning buyers across Asian markets become about the origin of their

WRITER’S EMAIL
shantanu@tehelka.com


From Tehelka Magazine, Vol 6, Issue 47, Dated November 28, 2009

Monday, 23 November 2009

life in financial markets: (part 2 of 2) why be afraid of volatility?


Last Monday, I blogged about volatility in equity markets. This post is a continuation of that.

Volatility, inevitable though it is in the context of equity markets, need not be dreaded. The best way to to deal with it is to follow set principles of investing that do not change no matter how much the stock prices change.Wise financial planners would not even want to track the index movements on a day to day basis.

Its a test match and not 20-20! Stockbrokers will mock you saying "in the long run we are all dead" but equities fetch certain returns, higher than fixed income assets, over a long time span of 10 years and more. But you need to stay committed to your equity investments continuously over this long time and not get carried away with bouts of panic selling during crises and excessive buying during irrational exuberance in the markets.

Have a big heart! Build a diversified portfolio of equities comprising of several stocks and a couple of exchange traded funds (ETFs). If you prefer mutual funds then ignore direct stocks and have a portfolio of several equity schemes of mutual funds, but do also hold some ETFs. Think of earning decent returns on a portfolio and not on select stocks. If the Sensex is crashing it does not necessarily mean that the value of your portfolio is crashing as well.

The stocks or ETFs you hold, when taken as an aggregate, may or may not co-relate very closely with that of the Sensex or Nifty. If it does then it is pointless to have this portfolio and you should instead just put all your money in a Nifty ETF and sit quite. Inversely, when Sensex is at its peak do not get tempted to book profits because your portfolio returns may not have risen as much as the Sensex.

Slow and steady wins the race! Buy little but buy at least once every month. Scatter your purchases across a minimum of 12 periods in a year with more or less equal amounts of investment each time. This will average out your cost of purchases over a longer time frame and any bouts of high volatility like the one seen from mid-October to mid-November will not affect your investments adversely.

If you are buying into stocks through your broker then do so at different time slots during a trading day. Avoid the first and the last one hour of the day as markets generally are trying to find their rhythm in the beginning and traders are generally trying to rush to close their open positions during the end of the day.

Re-jig to cut the flab! Equities should ideally be one of a few asset classes in your overall investments. If you have set a 60:30:10 ratio for investing in equities, debt and gold for a specific period then ensure that during that period this ratio does not get skewed towards any particular asset class. "Re-balance your portfolio not because markets have risen or fallen but because the value of your investments in a particular asset class has gone above or below the initial limit you decided upon," says Mashruwala. He suggests this be done once every quarter.

Re-balancing should be done through selling that much part of the asset class that has gone above the limit and using the proceeds from this to buy into the asset class that had gone below the limit. As your age progresses you may want to re-set the asset allocation ratio itself. Say, you change it to 40:50:10 for equities, debt and gold. This too involves re-balancing.

Long, but not teary, farewells! When to sell and how much t sell are the two most difficult questions in investing. It is time to sell when you are re-balancing or when your pre-determined investment tenure is over. When you sell to re-balance you should sell a little part of many component of your equity portfolio. You should not sell all your holdings in one, or few, stocks or an ETF in one go.

Even on completion of your investment tenure you should not sell whole of your equity portfolio in one go. Just as you bought little every month during the investment tenure you should sell a little every month after the tenure is over. This averages your cost of selling.

The above strategies are good enough.If you want some adventure then you can also directly exploit, an expectation of high volatility, in the equity derivatives segment. One of the most common ways to potentially profit from expected volatility is through a 'straddle' that involves buy a call option and a put option of the same strike price. On 10 November, spot Nifty closed at 4880. The premium on a November-end put option on Nifty of strike price 4900 traded at Rs 125 during the close, and that of call option on Nifty of same strike price traded at Rs 100. If you bought both these options and paid an aggregate premium of Rs 225 then you will profit from a rise or fall of Nifty of 225 points from its level on that day till the end of November. If it doesn't then your loss will range between Rs 100 and Rs 225.

Volatility can not be wished away. Dealing with it patiently helps.

Saturday, 21 November 2009

life in financial markets: better late than never

Here is something I wrote (in the magazine I presently work for) on Sebi's recent allowance to mutual funds and stock exchanges to settle purchases and redemptions in mutual fund units through the brokers' trading terminals:

Getting wings
It could have been a reality a few years back itself but the stock exchanges have just been allowed to settle purchase and redemption transactions between investors and asset management companies' (AMCs') various mutual fund offerings. The Securities and Exchange Board of India has modified its mutual regulations such that transactions, 'know your customer' compliance and the holding of securities can happen in the same manner as in equity shares.
So, as an investor, you can buy and redeem units of an open-ended or close-ended mutual fund scheme on a NSE or BSE trading terminal through the same equity broker through whom you presently buy and sell stocks. You also hold the units in the same demat account of yourNSDL—or CDSL—DP as you hold your stocks in. The price at which units are bought or redeemed, however, will be fixed, based on same-day or next-day NAV depending on the time of the day you trade. You would also have to pay between 0.2% and 1% as brokerage charge.
The conventional way of buying or redeeming funds will continue. The stock exchange route will be an additional route. The development, however, increases the short-term pain for mutual fund agents who have, in recent months, been facing the wrath of Sebi, mainly in the form of the ban on entry loads that led to a stoppage of receipt of commissions from AMCs.
"But independent fund selling agents will not suffer for too long," says Mukesh Dedhia, director at Ghalla Bhansali Securities, a NSE-broker firm as well as registered agent with several AMCs. "The market for mutual funds will itself expand with trading terminals spread all over the country becoming available and the independent agents can become fund-selling sub-brokers with the main NSE or BSE brokers." We second that.

Friday, 20 November 2009

life in journalism: another cowardly attack on nikhil wagle & his team by shiv sena goons


Whenever any one asks me who is my most favorite editor in the media I take no more than a micro-second to answer "Nikhil Wagle". Yes, Nikhil Wagle, who is presently the editor of a Marathi TV channel, IBN-Lokmat, but whom I know since 1992-93 as the editor of daily Marathi newspaper, Apla Mahanagar. I do not watch TV so I don't know what Wagle and his team is upto on IBN-Lokmat channel but I still buy and read, as often as I can, the Marathi newspaper 'Apla Mahanagar'.


Today, two groups of Shiv Sena party workers, under instructions from their goon leaders, severely attacked the offices of IBN-Lokmat in Bombay and Pune. In the Bombay office they targetted Wagle as well as physically assaulted journalists and other employees including women. These goons were armed with iron rods and cricket wickets (these wickets have pointed metal jutting out at one end, see the image to the right) and they used these to break computers as well as assault people in the two offices. Read more about the attacks here and here among several other places.

What a shame! I am born and brought up in Bombay and studied Marathi as one of the three language subjects in school. But my real grasp on Marathi is thanks completely to the Marathi newspaper 'Apla Mahanagar' because it was the only newspaper in Bombay during December 1992 and January 1993 that dared to take on the terrorism of Shiv Sena, Bajrang Dal, Vishwa Hindu Parishad and Bharatiya Janata Party. Wagle and his small team of brave Marathi journalists then formed a civil group called 'Nirbhay Bano Andolan' ('Be Firm' Movement) that organised public meetings to protest against the terror of Shiv Sena and the other three rogues.

I participated in these public meetings and a few of them were also attacked by Shiv Sena's goons. But the group sustained itself and the Shiv Sena and BJP terrorists learnt that civil society will not get intimidated by their terror tactics. Today, Pakistani civil society is also undergoing attacks by Talibani terrorists. Its a sad state of affairs in this sub-continent of our planet.

There is no difference between Shiv Sena goon-leaders and the goons of their subsidiary political group 'Maharashtra Navnirman Sena'. After Bal Thackeray, the mastermind of terror in Bombay since the last 40 years, these two groups will merge themselves and continue spreading their terrorism in Bombay and elsewhere.

But the real onus lies on the Congress party and the Nationalist Congress Party which is the joint ruling alliance in Maharashtra. They failed miserably in 1992-93 and several other times to book these goons to justice. The NCP itself is known to be violent in Pune and some other parts of Maharashtra. I do not think they will fare any less miserably this time around. Bombay's police force is completely communalised and beholden to elements from Shiv Sena and MNS. Nothing can be expected from them.

But I once again salute Nikhil Wagle and his team of brave Marathi journalists and staff members because of whose force of moral and ethical strenght which I respect Maharashtra's culture and its language. Shame on the false representatives of Maharashtra belonging to Shiv Sena and MNS!

Wednesday, 18 November 2009

life in financial markets: rare action against listed companies


Securities market regulators, including stock exchanges that regulate their intermediaries and issuers, tend to show weakness when it comes to non-compliance of disclosure or any other rules of a stock exchange.


In India, although cases (occasional or frequent or a bit of both, I don't know) of delayed, improper, misleading disclosures by listed companies happen, the National Stock Exchange and the Bombay Stock Exchange have never imposed a hefty monetary penalty on any of their listed companies that will send out a clear message to future potential miscreant companies.

No wonder then I was pleasantly surprised yesterday in learning that London Stock Exchange
(LSE) imposed an unprecedented amount of monetary penalty on one of the companies listed {Regal Petroleum, see its price graph below (click on image to see it enlarged & clear)} on


its Alternative Investment Market (AIM). Read LSE's official press release below.


The real challenge before LSE, however, is to keep an intense eye on what their Main Market listed companies. The AIM is for small and medium companies and the Main Market has all the biggies. It is easier to go after the small fish. Therefore, a standing ovation beckons a stock exchange that dares to go after the big fish.

Of course, if there are no violations by any of the big companies then what can you do? But that is an illusion created by the strong lobby groups these big companies manage to create and successfully use in excessively influencing government ministers and regulators' chiefs. You just have to look at India's one-year old Satyam Computers case to see how not a single rupee or dollar fine has been imposed yet by Sebi on the company for rigging its accounts and inflating its profit figures for 3-5 years.

Here then is LSE's press release of yesterday:


17 November 2009

REGAL PETROLEUM PUBLICLY CENSURED AND FINED £600,000

("Regal" or "the Company"). These sanctions were imposed by the AIM Disciplinary Committee for numerous, serious breaches of the AIM Rules in connection with its oil exploration wells in the The London Stock Exchange today issued a public censure and fine of £600,000 against Regal Petroleum plcKallirachi Prospect, an area in the North Aegean Sea.

On 11 separate occasions, Regal failed to take reasonable care to ensure that its announcements were not misleading, false or deceptive, and did not omit material information. On two occasions, Regal also failed to release price sensitive information without delay.

In particular, Regal contravened AIM Rule 9 (equivalent to the current AIM Rule 10) by:

using language in its announcements that created a misleading impression as to the potential commercial viability of the Kallirachi Prospect;
being over-optimistic in the information it notified, focussing on the higher end of expectations without adequate explanation of this fact, and omitting an adequate description of the risks associated with the Prospect; and
not accurately reflecting in its announcements the test results from the Kallirachi wells or the conclusions of independent experts on which the announcements were based

In contravention of AIM Rule 10 (equivalent to the current AIM Rule 11), Regal failed to announce without delay poor test results and the plug and abandonment of the two wells drilled within the Kallirachi Prospect.

Nick Bayley, Head of UK Regulation at London Stock Exchange Group, said:

"Today's public censure and fine closes an exceptional case in AIM's history. It is unprecedented in terms of the seriousness of the rule breaches involved and the resultant market impact. These factors contributed to the AIM Disciplinary Committee's decision to impose the highest fine in AIM's history.

"Following an investigation by the Exchange and the FSA, the Exchange's action was contested by Regal, resulting in lengthy disciplinary proceedings. Today's action demonstrates that the Exchange takes the accurate and timely disclosure of price sensitive information by quoted companies very seriously. Whatever the size, profile or complexity of the breach, the Exchange is prepared to take firm action against companies that fall short of the required standards."

Full details of the breaches can be found in the censure.
- ends -
For further information please contact:
Patrick Humphris / Alastair Fairbrother
Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com

Background to Regal Petroleum:
Regal Petroleum, a company focussing on exploration, development and production of oil and gas assets in various countries including Greece, Ukraine and Romania, was admitted to AIM in September 2002.
Relevant Regulatory Provisions:
All references to the AIM Rules in today's censure are to those in effect at May 2003. While the AIM Rules were amended during the Relevant Period, the rules that are the subject of this censure remain unchanged, other than in respect of their numbering. The equivalent rules currently in force are Rules 10 and 11 of the AIM Rules for Companies, June 2009:
AIM Rule 10
The information which is required by these rules must be notified by the AIM company no later than it is published elsewhere. An AIM company must retain a Regulatory Information Service provider to ensure that information can be notified as and when required.
An AIM company must take reasonable care to ensure that any information it notifies is not misleading, false or deceptive and does not omit anything likely to affect the import of such information.
It will be presumed that information notified to a Regulatory Information Service is required by these rules or other legal or regulatory requirement, unless otherwise designated.
AIM Rule 11
An AIM company must issue notification without delay of any new developments which are not public knowledge concerning a change in:
♦ its financial condition;
♦ its sphere of activity;
♦ the performance of its business; or
♦ its expectation of its performance,
which, if made public, would be likely to lead to a substantial movement in the price of its AIM securities.

Monday, 16 November 2009

life in financial markets: (part 1 of 2) why be afraid of volatility?

(this is part 1 of the subject matter of this post... part 2 will follow after a few days...)

I can not but feel amused when people, who are supposed to know better, get excited about volatility in the stock markets and then go on to call them all sorts of names like "mad" and "manic".

Volatility is an intrinsic part of the markets that predominantly affects, both positively and otherwise, day traders and short-term speculators. But it does not, I repeat, does not matter to long-term investors how markets are moving from one day to another. When you are investing a little, once or twice a month, on randomly-selected days, you can never be hurt badly by volatility.

So, what exactly is volatility? One out of a couple of dictionary meanings of 'volatile' is something that is difficult to capture or hold permanently.

The commonly accepted technical measure of volatility for a stock—and an index (which is a combination of stocks)—is the standard deviation (SD) of day-to-day price changes for a period. SD is the square root of the variance and variance, in case of stocks or indices, is the average of the squared deviations of the daily changes during a period from their average. An accepted-and-followed mathematical theorem then says that at least 75 per cent of the values will fall within plus and minus two standard deviations from the mean of a distribution.

Take, for example, 10 day-to-day changes in Nifty during 11 trading days. Find its simple average. Say, it is -0.3%. Calculate, for each day-to-day change, its deviation from the mean. Square each of these 10 deviations. Then, total these 10 squared figures and divide by 10 to get their average. This is the variance. Its square root is the SD.

Say, the SD is 1.6%. Now, applying the theorem it follows that would be at least 7-8 days (75%) on which the daily Nifty change would be between -3.5% [-0.3 - (2*1.6)] and 2.9% [-0.3 + (2*1.6)]. If the SD (volatility) for the next set of 10 days is higher than 1.6% then it follows that this range has widened.


Another measure of volatility in the financial markets is the movement of a Volatility Index (VIX) that takes the implied volatility from actively traded index options trades. The most tracked VIX is that of the Chicago Board of Options Exchange. In India, the National Stock Exchange too has its own VIX based on Nifty options trades.


It is generally believed that when VIX goes above 30 the stock market is likely to experience a correction. See below (click on the image to see it enlarged & clear) to the see the co-relation between S&P 500 (US) and CBOE's VIX, as well as between S&P CNX Nifty (India) and NSE's VIX.





Global equity markets tend to co-relate in the short term but it is interesting to note how their narrow differences widen over time. Below is a graph I made of global indices movements from end of 2005 onwards (click on the image to see it enlarged & clear).

Sunday, 15 November 2009

life in financial markets: unviable Sebi's new small companies' listing rules


It looks like it is doomed to fail.

The latest Securities and Exchange Board of India (Sebi) move to allow listing of small IPOs of paid-up equity capital of Rs 10 crore and less on existing stock exchanges had been in the offing for about two years.

Such small IPOs were already possible under BSE's listing norms but had to comply with difficult requirements such as minimum revenue of Rs 3 crore in each of preceding three years and a 1,000 minimum public shareholder requirement.

These restrictions won’t apply under the new relaxations for the BSE. Even the NSE, that presently has a minimum paid-up capital requirement of Rs 10 crore for IPOs, will be able to list small companies.

But two new conditions that Sebi has introduced are expected to discourage small-size IPOs. These are the minimum IPO application size amount of Rs 1 lakh and a post-listing minimum trading lot size of Rs 1 lakh. These are expected to take away liquidity in trading and scare away even the big investors and institutional investors.

Friday, 6 November 2009

life in general: afghanistan: drugs, oil, violence

Like many people of many countries in some form of extreme distress or the other are the Afghanis. Sandwiched between the terrorist group of Taliban and the US-installed-terrorist group of warlords, the citizens of Afghanistan are a traumatised lot.

I share below a recent insightful analytical report, that I came across, on some aspects of Afghanistan:


http://www.informationclearinghouse.info/article23884.htm

Opium, Rape and the American Way
By Chris Hedges
November 03, 2009 "Truthdig" -- The warlords we champion in Afghanistan are as venal, as opposed to the rights of women and basic democratic freedoms, and as heavily involved in opium trafficking as the Taliban. The moral lines we draw between us and our adversaries are fictional. The uplifting narratives used to justify the war in Afghanistan are pathetic attempts to redeem acts of senseless brutality. War cannot be waged to instill any virtue, including democracy or the liberation of women. War always empowers those who have a penchant for violence and access to weapons. War turns the moral order upside down and abolishes all discussions of human rights. War banishes the just and the decent to the margins of society. And the weapons of war do not separate the innocent and the damned. An aerial drone is our version of an improvised explosive device. An iron fragmentation bomb is our answer to a suicide bomb. A burst from a belt-fed machine gun causes the same terror and bloodshed among civilians no matter who pulls the trigger.
“We need to tear the mask off of the fundamentalist warlords who after the tragedy of 9/11 replaced the Taliban,” Malalai Joya, who was expelled from the Afghan parliament two years ago for denouncing government corruption and the Western occupation, told me during her visit to New York last week. “They used the mask of democracy to take power. They continue this deception. These warlords are mentally the same as the Taliban. The only change is physical. These warlords during the civil war in Afghanistan from 1992 to 1996 killed 65,000 innocent people. They have committed human rights violations, like the Taliban, against women and many others.”
“In eight years less than 2,000 Talib have been killed and more than 8,000 innocent civilians has been killed,” she went on. “We believe that this is not war on terror. This is war on innocent civilians. Look at the massacres carried out by NATO forces in Afghanistan. Look what they did in May in the Farah province, where more than 150 civilians were killed, most of them women and children. They used white phosphorus and cluster bombs. There were 200 civilians on 9th of September killed in the Kunduz province, again most of them women and children. You can see the Web site of professor Marc Herold, this democratic man, to know better the war crimes in Afghanistan imposed on our people. The United States and NATO eight years ago occupied my country under the banner of woman’s rights and democracy. But they have only pushed us from the frying pan into the fire. They put into power men who are photocopies of the Taliban.”
Afghanistan’s boom in the trade in opium, used to produce heroin, over the past eight years of occupation has funneled hundreds of millions of dollars to the Taliban, al-Qaida, local warlords, criminal gangs, kidnappers, private armies, drug traffickers and many of the senior figures in the government of Hamid Karzai. The New York Times reported that the brother of President Karzai, Ahmed Wali Karzai, has been collecting money from the CIA although he is a major player in the illegal opium business. Afghanistan produces 92 percent of the world’s opium in a trade that is worth some $65 billion, the United Nations estimates. This opium feeds some 15 million addicts worldwide and kills around 100,000 people annually. These fatalities should be added to the rolls of war dead.
Antonio Maria Costa, executive director of the United Nations Office on Drugs and Crime (UNODC), said that the drug trade has permitted the Taliban to thrive and expand despite the presence of 100,000 NATO troops.
“The Taliban’s direct involvement in the opium trade allows them to fund a war machine that is becoming technologically more complex and increasingly widespread,” said Costa.
The UNODC estimates the Taliban earned $90 million to $160 million a year from taxing the production and smuggling of opium and heroin between 2005 and 2009, as much as double the amount it earned annually while it was in power nearly a decade ago. And Costa described the Afghan-Pakistani border as “the world’s largest free trade zone in anything and everything that is illicit,” an area blighted by drugs, weapons and illegal immigration. The “perfect storm of drugs and terrorism” may be on the move along drug trafficking routes through Central Asia, he warned. Profits made from opium are being pumped into militant groups in Central Asia and “a big part of the region could be engulfed in large-scale terrorism, endangering its massive energy resources,” Costa said.
“Afghanistan, after eight years of occupation, has become a world center for drugs,” Joya told me. “The drug lords are the only ones with power. How can you expect these people to stop the planting of opium and halt the drug trade? How is it that the Taliban when they were in power destroyed the opium production and a superpower not only cannot destroy the opium production but allows it to increase? And while all this goes on, those who support the war talk to you about women’s rights. We do not have human rights now in most provinces. It is as easy to kill a woman in my country as it is to kill a bird. In some big cities like Kabul, some women have access to jobs and education, but in most of the country the situation for women is hell. Rape, kidnapping and domestic violence are increasing. These fundamentalists during the so-called free elections made a misogynist law against Shia women in Afghanistan. This law has even been signed by Hamid Karzai. All these crimes are happening under the name of democracy.”
Thousands of Afghan civilians have died from insurgent and foreign military violence. And American and NATO forces are responsible for almost half the civilian deaths in Afghanistan. Tens of thousands of Afghan civilians have also died from displacement, starvation, disease, exposure, lack of medical treatment, crime and lawlessness resulting from the war.
Joya argues that Karzai and his rival Abdullah Abdullah, who has withdrawn from the Nov. 7 runoff election, will do nothing to halt the transformation of Afghanistan into a narco-state. She said that NATO, by choosing sides in a battle between two corrupt and brutal opponents, has lost all its legitimacy in the country.
The recent resignation of a high-level U.S. diplomat in Afghanistan, Matthew Hoh, was in part tied to the drug problem. Hoh wrote in his resignation letter that Karzi’s government is filled with “glaring corruption and unabashed graft.” Karzi, he wrote, is a president “whose confidants and chief advisers comprise drug lords and war crimes villains who mock our own rule of law and counter-narcotics effort.”
Joya said, “Where do you think the $36 billion of money poured into country by the international community have gone? This money went into the pockets of the drug lords and the warlords. There are 18 million people in Afghanistan who live on less than $2 a day while these warlords get rich. The Taliban and warlords together contribute to this fascism while the occupation forces are bombing and killing innocent civilians. When we do not have security how can we even talk about human rights or women’s rights?”
“This election under the shade of Afghan war-lordism, drug-lordism, corruption and occupation forces has no legitimacy at all,” she said. “The result will be like the same donkey but with new saddles. It is not important who is voting. It is important who is counting. And this is our problem. Many of those who go with the Taliban do not support the Taliban, but they are fed up with these warlords and this injustice, and they go with the Taliban to take revenge. I do not agree with them, but I understand them. Most of my people are against the Taliban and the warlords, which is why millions did not take part in this tragic drama of an election.”
“The U.S. wastes taxpayers’ money and the blood of their soldiers by supporting such a mafia corrupt system of Hamid Karzai,” said Joya, who changes houses in Kabul frequently because of the numerous death threats made against her. “Eight years is long enough to learn about Karzai and Abdullah. They chained my country to the center of drugs. If Obama was really honest he would support the democratic-minded people of my country. We have a lot [of those people]. But he does not support the democratic-minded people of my country. He is going to start war in Pakistan by attacking in the border area of Pakistan. More civilians have been killed in the Obama period than even during the criminal Bush.”
“My people are sandwiched between two powerful enemies,” she lamented. “The occupation forces from the sky bomb and kill innocent civilians. On the ground, Taliban and these warlords deliver fascism. As NATO kills more civilians, the resistance to the foreign troops increases. If the U.S. government and NATO do not leave voluntarily, my people will give to them the same lesson they gave to Russia and to the English who three times tried to occupy Afghanistan. It is easier for us to fight against one enemy rather than two.”
Chris Hedges, whose column is published on Truthdig every Monday, spent two decades as a foreign reporter covering wars in Latin America, Africa, Europe and the Middle East. He has written nine books, including “Empire of Illusion: The End of Literacy and the Triumph of Spectacle” (2009) and “War Is a Force That Gives Us Meaning” (2003).
Copyright © 2009 Truthdig, L.L.C. All rights reserved.


COMMENTS:

This article is good as far as it goes which is to the same depth that most reports reach. The article makes it seem that we "good guys" are over there consorting with the tribal leaders for the purpose of defeating the Taliban. WE ARE CONSORTING WITH THE TALIBAN WHO ARE THE TRIBAL LEADERS!
Karzi is a mere American fig leaf to cover the repulsive fact that we are there to protect and collect on the Afghan opium production. How does Hedges think the world obtains the Afghan heroin? Is he stupid enough not to know that the CIA is the main buyer and distributor for the 92% of the world's heroin supply? Perhaps Hedges should research the present world financial situation including the source of worldwide financial liquidity - especially that of the large American banks. Perhaps Hedges should do a little research on a certain former State Department chieftan by the name of Richard Armitage who was responsible for organizing the Afghan poppy farmers and helping them increase their production.
Hedges is smart enough not to try giving an American version of the truth that could easily have been written by any member of the national media.


The greatest profit margins come from drugs, oil and war. As far as I know nothing else even comes close. It makes me wonder if the input for the manufacture of vicodin, percocet, percodan, norco and other analgesics is opium? Could oil, opium and opression be why we are over there?

The analgesics (pain killers) fentanyl, morphine, oxycodone, oxycontin and hydrocodone are all derivatives of opium.
Afganistan farmers produced 185 metric tons of opium in 2001 and 8,200 metric tons of opium in 2007. Farmers made about $1 Billion dollars from opium production in 2007.
Pharmaceutical companies in the United States of America manufacture 100% of the hydrocodone used worldwide.
88 million prescriptions were written for hydrocodone products in the U.S. in 2000. 130 million prescriptions were written for hydrocodone products in the U.S. in 2006. A 48% increase. Vicodin and Norco are two examples of these products.
www.usdoj.gov/dea/concern/ hydrocodone_factsheet.doc
Make up your own mind why we are in Afghanistan.

Good article and Interview Chris! Crime and conspiracy confirmation is important for us to know and understand the reasoning behind the US and NATO's involvement in Afghanistan - that way we can be numbed into complacency about why we are fed the bullshit in order to keep us focused on what they want us to see as a war on Terroism.
Plain and simple - we're (US & NATO) all there for the money from Drugs, Oil Pipelines, and a wedge to guard against a unified regional resistance to our seizing it all by force. All in the name of Freedom and Democracy- of course!
The one thing I'm confused about though when we're told that "we are fighting the terrorists over there, so we don't have to fight them over here" is - aren't we already fighting the terror of Opium and Heroin addiction on our streets?
I guess that the class of person becoming addicted to these drugs on our streets aren't considered to be "casualties" of this escalating war on terror are they? I mean, afterall - they're just a bunch of worthless minority citizen's anyway right? It's easy to hide a lot of the opium when it gets to the hands of the big Pharma drug lords here and in Europe. That way it's easier to get it into the hands of the middle and upper classes. Heaven forbid that those wholesome "Whitey's" would have to make a deal in the Ghetto's for their daily fix!
It's like peeling an Onion I guess - the deeper you get the more layers you discover!

Thursday, 5 November 2009

life in financial markets: trading hours on india's stock exchanges

There are no clear answers to the question on whether trading hours on stock exchanges should be long or short, but, I, for one, would like it to be as long as the stock exchange is able to offer it after ensuring that its risk-management system is be able to handle it. In India, for instance, the NSE or BSE can keep its trading system on for few hours in the morning-afternoon and a few hours in the late evening. For settlement purposes, each batch's trades should be cleared and settled separately on T+2.

Anyway, here is something I wrote in the magazine I presently work on the subject:


Missing the woods for the trees
If you open the door, open it fully. That is the message from some market observers on Sebi’s green signal to the stock exchanges to keep their trading system open any time between 9 am to 5 pm and extend their timings before and after the current 9.55 am – 3.30 pm regime.
The NSE had been lobbying hard to start their trading earlier in the morning due to gradual loss of global investors’ trading volume in its Nifty futures contract to Singapore Exchange’s Nifty futures contract that had a 2-hour head start due to the time difference between the two countries.
But domestic brokers and investors, wanting to use European and US markets developments in their trades in India, would be better off if NSE or BSE offers them a late evening trading hours slot.
“Exchanges ought to be free to decide their trading hours,” says Ajay Shah, associate fellow at the National Institute of Public Finance and Policy. “It is wrong for the regulator to control this.” We second that.

Monday, 2 November 2009

life in general & financial markets: isn't this also terrorism?


If citizen groups turn radical and resort to violence the government calls them terrorist. In some extreme cases of violence this may even be justified.

But also justified is calling the government and its various organs "terrorists" when they resort to (more frequently so in the last 10 years in India) extreme forms of violent behaviour against NGOs and citizen groups.

See below a recent example of government's terrorism:


From:
Date: 2009/11/1
Subject: [nbapresslist] Nationwide support to NBA's Indefinite protest fast against GoMP's atrocities
To: nbapresslist@lists.riseup.net
NARMADA BACHAO ANDOLAN
• 62 M.G Marg, Badwani, Madhya Pradesh - 451551
Telefax: 07290-222464; E-mail: nba.medha@gmail.com
•Maitri Niwas, Tembewadi, Behind Kakawadi, Dhadgav, Dist. Nandurbar,
Maharashtra - 425414 – Telefax: 02595-220620

November 1st, 2009
Thousands of displaced gathered today as well in Khandwa to lend solidarity and support to the jailed activists of Narmada Bachao Andolan and to condemn the malicious and brazen attempts of the Government of Madhya Pradesh to scuttle their lawful attempts to enforce the directives of the High Court. The displaced of Maheshwar, Upper Veda, Omkareshwar and Indira Sagar dams were joined by representatives of various people’s organizations from within and outside the state.
Even as the protest fast of activists Chittaroopa Palit and Ramkuwar Rawat inside the jail continued undaunted on the second day, the Government seemed to be investing all its energies and resources in hounding the activists, instead of respecting the High Court’s orders and speedily rehabilitating the displaced.
The NBA office was again searched today and shockingly, the police officials (instead of electricity officials!!!) slapped an additional bill of Rs. 15,149/- on the Andolan for electricity charges, terming it a ‘commercial establishment’, even though it is well-known that NBA is a people’s organization, working for the realization of the constitutional and human rights of the displaced. It is clear that the office is being targeted. While it was told that activist Alok Agrawal was being taken for interrogation; he was detained all through the night and was then framed in old cases. NBA is contemplating legal action against such annoying tactics of the State.
Citizens groups and eminent persons from across the country have extended support to the ongoing ‘sangharsh’ in the valley. Major Genl. (Retd). Sudhir Vombatkere wrote to the Prime Minister and Chief Minister, terming the
arrests as repulsive to democratic resistance and demanded urgent release of the activists and justice to the displaced. Vetern Gandhian idealogue Raha Bhatt and Vasant Pandey of Uttarakhand Nadi Bachao Abhiyan, in a seperate letter to the CM, demanded him re-establish the rule of law in the state. Prof. Kamal Mitra Chenoy,of Jawaharlal Nehru University, New Delhi also wrote to the District Collector and sought the release of the illegally detained NBA activists who are genuinely demanding for court-ordered rehabilitation.
Yesterday, activists Yogesh Diwam, Azam Khan, Sarika Sinha and others of Jan Pehal met the Chairperson of the State Human Rights Commission, Justice (Retd) Shri D.P. Dharmadhikary, in person and expressed serious concern on the ersosion of democratic space in the state. The Chairperson later issued notices to the District Collector and Superintendent of Police and demanded a Report on the incident within 3 days.
The Government also drew flak from citizen’s groups in Bhopal, Indore, Jabalpur, Badwani and Harda where protetsts are taking place. The Indore Solidarity Group and People’s Union or Democratic Rights as well expressed vocal condemnation of the arrests in seperate releases and expressed solidarity with the Andolan. An online petition has also been circulated and more than 500 sensitive citizens and organizations have already expressed their support. The Asian Human Rights Commission also came down heavily upon the State Government and has issued an action altert for global support.
Meanwhile, addressing a press conference in Khandwa, today evening, Medha Patkar along with Rajkumar Sinha of Bagri Dam Displaced and Affected Organiation and others stated that the actions of the State Government tantamount to contempt of Court, which it will have to answer. She said that the administration is tarnishing its own image by leveling false allegations against the activists.
Yesterday, a delegation along with Medha Patkar met the Collector Mr. Singh and pressed for the immediate and unconditional release of the activists and enforcement of the Court’s directives. He was also warned that any inaction from the administration will not be brooked anymore and all the diasplaced are even ready for a ‘Jail Bharo Andolan’, if their demands are not met.
Interestingly, the Staff Union at the Collector’s office also submitted a letter of solidarity with the diplaced. Respecting their gesture, Medha Patkar convyed that the struggle was not against the staff, but against the
thick-skinned administration that has such disrespect towards the Constitution and the Court.
The struggle continues with some other activists joining in the fast today.
Kailash Chauhan Ashish Chauhan Gururaj Singh
------------------------------
---------------------------------------------------
Date: 31/10/2009
To,
Hon’ble Justice (Retd.) Shri Dharmadhirkari
Chairperson,
State Human Rights Commission,
Bhopal
Madhya Pradesh
Respected Shri Dharmadhirkariji,
I would like to draw your urgent attention to an incident of grave human rights violation in Khandwa district and seek your immediate intervention in the same. As I had communicated to you over the phone yesterday, the unlawful treatment of the activists and displaced who are non-violently asserting lawful rights continues, even as twenty activists, including senior activists Chittaroopa Palit, Alok Agrawal, Kamla Yadav, Ramkuwar Rawat are still locked up in the jail.
On the 28th of October, thousands of farmers, adivasis, fish workers and labourers affected by the giant Indira Sagar and Omkareshwar dams took out a huge rally, seeking immediate enforcement of the directives of the Hon’ble High Court with regard to the rehabilitation of the displaced. Thousands of displaced from the Maheshwar, Upper Veda, Maan, Sardar Sarovar, Tawa, Bargi and other dams and representatives of other people’s organizations had participated in the peaceful demonstration.
Receiving no positive response from the administration and the NHDC with regard to implementation of the High Court’s orders, the displaced began their Dharna in the premises of the Collector’s office. All through the 28th and the 29th, they were hoping for some response from the Collector and NHDC, but all of a sudden all the senior officials fell ‘ill’ and they all refused to meet the agitators.
When some of the people tried to go to Collector’s office in the evening and find out the reasons, the police fell upon them in the corridor itself. Senior activists Chittaroopa Palit, Kamla Yadav, Ramkuwar Rawat and 18 other activists were brutally caned and arrested by the police, while the others were also ruthlessly beaten up and drove out of the Collector’s premises.
The police then went on to foist false cases on the activists and displaced under inappropriate provisions of law such as Sec 332, 353, 323, 294, 427 and 188 IPC. Surprisingly, one more new case on these same jailed activists was registered yesterday under Sec 342, 147 and 452.
Further, on the 30th of October, the Anti-Terror Squad, along with the police headed by ASI Mr. Pathak illegally raided the Narmada Bachao Andolan’s office. In this process, they forcefully arrested senior activists Alok Agarwal and 5 other activists and sifted through all the office papers, without any notice. We have no clue as to what did to the papers and computers, since activists Sangeta Kanera and Guabchand Patel were not allowed to enter the office all through the course of the investigation, which went on for more than an hour. Underneath is a brief time-wise description of the events:
Chronology of incidents: Time and Description of the incident
AT 5:15 p.m:
A batch of policemen under the leadership of A.S.I. Mr. Pathak, barged into the NBA office, along with the Anti-Terror Squad (ATS) and without any intimation or warrant, arrested senior activist Alok Agawal and 5 other activists. After taking the activists into their custody, the office was seized and locked by the police. When the activists sought the grounds of their arrest at City Kothwali police station, they were not provided the same
AT 5:30 p.m:
The police again came with Vajr vaahan and entered into the Andolan’s office. The office was searched without producing any warrant. In the process, they cluttered up the entire documents and in the garb of investigation, messed up with the computers and also took away some of the papers and literature from the office. The police did not allow activists Sangeta Kanera and Guabchand Patel to enter the office all through the course of the investigation, which went on for more than an hour. After the search, they again went away, by locking up the office.
AT 6:20 p.m:
The 5 other arrested activists, besides Alok Agarwal, were released from City Kothwali.
AT 7:05 p.m:
The A.S.I. Mr. Pathak had come to the NBA office, along with some other policemen and Alok Agarwal and unlocked the office.
In the light of the aforementioned atrocities and illegalities of the Madhya Pradesh police and administration, we demand that the Hon’ble State Human Rights Commission may consider the following demands in the best interests of justice and rule of law:
1) The terror unleashed by the police and human rights violations of the arrested displaced and activists must be taken up with utmost seriousness and the Commission may urgently recommend / direct their unconditional release.
2) The baseless and false allegations (and related cases) of destroying public property in the Collector’s office be dropped, as the activists did not enter the Office at all, in the first instance. Their arrests were made from the Corridor in the Collectorate and the office of NBA.
3) Ensure that the orders of the Hon’ble Jabalpur High Court are implemented and that the human rights of the displaced persons are guaranteed.
4) Demand an answer from the State Government for the terrorizing treatment it has meted out to the peacefully agitating displaced and activists, seeking lawful implementation of the Court’s orders for realizing their right to life
and livelihood.
5) Take appropriate steps to guarantee and safeguard the constitutional right to peacefully agitate for the protection of one’s life and livelihood, freedom of speech and expression and the freedom of association.
6) Investigate, identify and take necessary legal action against all the police officials responsible for the illegal arrest and detention of activists Alok Agarwal and others.
7) Direct the state Government to adequately compensate the activists and displaced for the physical and mental injury and agony caused to them.
I earnestly reiterate that the terror unleashed on the activists and displaced seeking the implementation of the Court’s order is nothing less that a challenge to the rule of law in the state. It is in this context that your role as the Chairperson of the State Human Rights Commission becomes extremely significant to establish the rule of law and common people’s faith in the legal system.
We hope that you would take this incident of gross human rights with all the seriousness it deserved and initiate appropriate action immediately.
With sincere regards
Medha Patkar
Issues and Demands of the ISP and OSP displaced:
Indira Sagar Project:
1. Immediately implement the Orders of the Hon’ble High Court of Jabalpur dated 08-09-2006 and 2-09-2009 issued in the writ petition filed by Narmada Bachao Andolan, directing grant of 5 acres agricultural land to all adult sons and unmarried daughters of every affected farmer.
2. The displaced labourers must be given rights over the land under partial submergence (thousands of acres of talak zameen) as they would reap the benefits of the wheat crop in the rains and the summer crop, when the water recedes, and can thus earn a respectable livelihood.
3. The displaced fish workers in the Indira Sagar project affected areas are being subjected to physical assault and hooliganism which must be immediately stopped and the right to fishing must be granted to the fish workers and not the contractors.
4. NHDC has occupied the agricultural lands by paying paltry sums of compensation and the farmers have not be able to purchase land again. It is, therefore, necessary that the Special Rehabilitation Grant being given for the lands must be on par with the Harda command rate of at least 1.5 lakhs to 2 lakhs per acre.
5. The thousands of houses in the ISP submergence area, which are excluded even to this day, must be acquired and appropriate compensation be paid immediately.
6. The houses in all such villages where the lands have submerged and there is no other alterative source of livelihood must be immediately acquired and lawful compensation and rehabilitation must be urgently provided.
7. There is rampant corruption in the rehabilitation of the ISP displaced, particularly in the Harda district. The rehabilitation entitlements are being reaped by the agents and middlemen with the connivance of the officials, which must be immediately stopped and an independent inquiry into the same initiated and the guilty punished.
8. The livelihood of all those in the resettlement colonies must be guaranteed and BPL ration cards be issued to them immediately along with the provision of other civic amenities such as schools, drinking water, hospital etc.
9. It astonishes that until now; even the lists of families are not finalized in many of the villages. This should be immediately undertaken and the affected families must be provided all the rehabilitation entitlements which they are deprived of, until now.
10. All the left-out villages upto Handia and Nemavar in the Indira Sagar submergence area must be surveyed on a war-footing and the affected families be granted compensation and rehabilitated.
11. Along with the acquisition the less than 25% of remaining land, any other assets also must be acquired.
12. Where the houses are in submergence, but the lands are not, resettlement sites must be established with a radius of 1 km
13. The scale indicating the water-level at the Indira Sagar dam site has been maliciously erased by NHDC, which is a matter of grave concern. A new scale, indicating the correct water level must be immediately put in place, in a transparent manner.
Omkareshwar Project:
1. All the project-displaced must be fully and fairly rehabilitated as per the Orders of the Hon’ble Supreme Court and Jabalpur High Court by giving irrigated and cultivable land.
2. The Government should not give already encroached lands as this would jeopardize the livelihoods of other poor and create social tensions and insecurity to the displaced.
3. The Orders of the Hon’ble High Court dated 23-09-2009 and all other orders must be immediately and fully implemented.
4. The displaced must be given house plots of their choice in the command area as per the judicial orders and the Rehabilitation Policy.
5. The houses that have been left out must be acquired and the affected duly compensated, as per law.
6. The farmers have been given paltry amounts as compensation. Special Rehabilitation Grant for the agricultural lands should be given at the rate of at least 1.5 lakhs to 2 lakhs per acre.
7. The fishing rights in the reservoir should in no case be given to the contractors. Instead full rights should be granted to the displaced fish workers on a priority basis.
8. All families who are arbitrarily excluded of or denied the due entitlements of rehabilitation should be given the same immediately, including house plots, livelihood grants etc.
9. NHDC must be punished as per law for its criminal act of causing the death of hundreds of people in Dharaji due to the sudden release of waters in 2004. NHDC should also be brought to book for the tragic death of an adivasi infant, last month in Kamankheda who died due to a sudden increase in the water level.

Thursday, 29 October 2009

life in journalism & financial markets: no! its not appreciated!

As a financial journalist, covering financial markets in India for 19 long years, I have come across several disturbing things. This post is about one such thing.

If I have to bring about a deeper insight into issues that involve protecting basic rights of transparency of investors I am up against extremely cunning minds working in the securities market regulators, stock exchanges, depositories, brokers, depository participants, investment bankers etc.

This happens most often when I ask any of these clever people about the criteria they apply behind their policies and rules. Say I ask a broking firm, offering online trading to investors, "what are the criteria applied behind disabling of many derivatives contracts (that, otherwise, are getting traded on the exchange)?" I get this kind of answer, "You would appreciate that we will not be able to share the exact details of the algorithms we run and the criteria we
have for enabling and disabling."

This is so ridiculous. My answer is "No, sorry, it is not appreciated by me or my readers." Why should I blindly believe him that the alogs and criteria he is running for his clients is efficiently serving the purpose it is being claimed to serve (and that usually is "its for investors' interests")?

Similarly, when I ask NSE, BSE or Sebi, about what price and volume criteria they apply in their market surveillance systems, I never get the answer. I am bluntly told that it can't be disclosed. So, how can investors know whether NSE, BSE and Sebi are efficiently doing the job of ensuring there is no price manipulation?

Journalists are responsible to their readers and so they ask questions. Regulators and intermediaries are not responsible to my readers directly and so they evade these questions! The battle goes on.

Wednesday, 28 October 2009

life in financial markets: wild west among india's equity brokers!

In the last one month or so, the National Stock Exchange has been publishing ads in newspapers alerting readers (who would be investors in the stock market) about the role of Power of Attorney (PoA) that they hand over to brokers.

I am amused. The NSE is spending a lot of money in these ads. Instead, it can spend one-tenth of it by just auditing the records of 5% clients of its top 20 brokers (by number of clients) and checking the PoA documents signed by the investors and handed over to brokers. These lie with with the broker and NSE has regulatory powers to inpsect any broker's records.

But as I said in a post earlier this month, the stock exchanges are amazingly loathe to take any tough action against its brokers.

Anyway, the NSE ad reminded me of a story I had written last year and submitted, in December 2008, to the magazine I work for, for a potential new, but undecided, specialised and frequent section in the magazine.

That story talked of the dangers of the documents that investors were being forced to sign by brokers and DPs. Here is that story:


One-sided agreements


Its a wild west out there among brokers and DPs. Put on your Client Eastwood hat to take them on.

The underlying principle behind legal agreements is that they protect the rights—and spell out the obligations—of ALL the parties to the contract or agreement. The stock market has its share of legal agreements but they are getting increasingly opposed to the rights of you—the investor.

To carry out your investment activities in equity shares you have a trading account with a NSE (National Stock Exchange) or BSE (Bombay Stock Exchange) broker and a demat account with a NSDL (National Securities Depository) or CDSL (Central Depository Services) depository participant (DP). The legal umbrella is the client-broker and client-DP agreement. Willy-nilly you sign them.

Well, this umbrella is leaking. What's worse is that brokers are making you sign various authority letters and powers of attorney. We take a look at these legal agreements to see whether they offer you protection or potential hazards.

Client-broker agreement. In the last seven years, brokers have almost resorted to incorporating all kinds of clauses that are heavy on your obligations but feather-light on the broker's. More than 95 per cent of them dwell on your do's and don'ts and the remaining tiny portion is on jurisdictional and dispute issues. This wasn't the case two years ago. Then, these agreements contained specific clauses on broker's obligations to deliver shares and pay funds within 24 hours of settlement pay-out to the client and dispatch of contract notes within 24 hours of the trade. Such clauses have performed the Houdini act. In their place have come new ones that are nothing but a sleight of the hand for investors.

The NSE and BSE have been mute witnesses to the mutation of this crucial legal document. Pick up any agreement of any big broking firm and one sees this new trend. Although exchanges' rules and regulations also define the rights and obligations of broker vis-a-vie their interactions with investor-clients, not-so-savvy investors are not likely to know the existence of these and therefore vulnerable to being taken for a ride by some unscrupulous brokers. Their brokers will point to the agreement and say "See! Your complaints are not covered here. So chill!" The chill should have been going down the spines of the officials of the inspection department on uncovering such agreements during their yearly sojourn of brokers' offices. But so far the two exchanges have chosen to ignore this investor-related area in their regulation of the markets.

Irrevocable power of Attorney. The rolling settlement cycle got shortened to T+2 from April 2003, and since then there has been pressure on you to pay funds or deliver shares to your brokers on time. Taking advantage of this situation many brokers today coerce you to give them your irrevocable power of attorney (PoA) to manage your demat account (and with some brokers whose associates are banks even your bank account) so that you are saved from the effort of handing debit instruction slips to your DP against your sales on time. These PoAs also go further to include your investments in mutual funds, government securities and other securities through the broker who could be an authorised mutual fund agent and investment agent to government agencies.

But the problem arises when you are given no other option but to give your broker or DP such a PoA. Says the NSE official: "As far as any authorisation is concerned the investor has got complete freedom not to give it and the broker can't refuse service on that ground. Brokers' internal arrangements can not override our or Sebi rules."

This would be reassuring if the reality reflects it. But walk in to any office or branch of a large- or medium-sized brokerage firm and enquire about opening a new trading account and demat account with either of them and you will find their representatives clearly telling you that if you do not sign on the POA, they will not process your application form at all. A majority of brokers do this and NSE and BSE do nothing about it. This is despite alternative solutions made available by NSDL and CDSL enabling investors to move shares through the internet. Brokers and DPs are stingy in informing their investors of such an alternative solution.

What makes matters worse is that the PoA does not specify that it will be used only for settlement for trades done through the broker. They give unhindered and all-pervasive rights to the broker to do what it wants to with your demat account including making off-market transfers. Where the PoA confers rights to your broker to operate your money account with certain specified banks then your entire savings account balances are at risk if there is malfeasance committed by any official of the broker. The chances of this are not exactly remote because in most PoAs the brokers are also conferring upon themselves the right to choose one or more substitutes, that is external persons, to execute the rights under the PoA. Potentially it could really become a wild west out there.

In the past even DPs used to take PoAs. In November 2005 NSDL detected anomalies in the account-opening process of one of its DP, Indiabulls Securities, wherein not only the PoA was made mandatory but it took away all rights of the investors to operate their demat account and only the DP retained that the right. Taking a cue from its inspection of Indiabulls NSDL ended up issuing a circular to all DPs to discontinue with the PoA compulsion and desist from doing four things through the PoA – (i) restraining the investor from operating his demat account, (ii) denying delivery instruction slip books, (iii) merging shares kept under various client accounts and (iv) having a lien on the clients' shares.

Other authorisations. Many brokers additionally take an authority letter to maintain a running account wherein the broker keeps the shares you bought or the funds received against your sales unless you ask for it in writing to be returned to you. This too is being forced upon investors.

On 3 December, posing as an investor, this BW reporter walked in to the Annie Besant Road (Worli, Bombay) branch of LKP Shares & Stock Brokers, and enquired with an official, Jolly Shah, about wanting to open a trading account and a demat account. On asking, she showed the documentation docket that included the client-broker agreement but also included a set of documents termed as 'Voluntary documents'. The first document in the 'Voluntary documents' was that of a running account authorisation. This reporter asked her whether it was a must for him to sign that document she said 'Yes'. On questioning how LKP is making it compulsory for investors to sign on a 'Voluntary document' she took offence and did not answer.

Both the exchanges are not taking action against the scores of brokers who are subtly but surely forcing the signing of documents that according to NSE's rules and regulations they can't force any one to sign. The running account authorisation is pernicious because under it the broker gets to retain the shares or funds for almost any reason or even without a reason when the investor buys or sells shares. As per NSE's and BSE's rules the broker has to transfer the shares/fundswithin 24 hours of the pay-out. The forced running account authorisations are violating this important exchange rule. BW queried both the exchanges but did not receive any response.

As an investor you can complain to the stock exchange if you have similar experiences. If it's with a NSE broker write to cc_nse@nse.co. if it's a BSE one write to corporate.affairs@bseindia.com. Safe investing!

Saturday, 24 October 2009

life in general: more from the '11 Sept. Truth Movement'


I have written in the past about the many problems with US government's official explanation of the reasons behind the collapse of WTC 1, 2 & 7 towers (of which 1 & 2 were hit directly by the planes) on 11 September 2001.

I share below one old and one recent follow-up to the same matter.



http://physics911.net/closerlook

Taking a Closer Look: Hard Science and the Collapse of the World Trade Center

by Dave Heller, article originally appeared in Garlic and Grass

.......

While none of the many 9-11 researchers knows exactly what happened on that fateful day in September almost 3 years ago, any sensible person can easily spot dozens of inconsistencies in the official story that is being forced upon us.

And these inconsistencies are huge. They range from the apparent stand-down of our immense military arsenal (for over an hour and a half) to the small hole and lack of debris at the Pentagon. There was Bush’s bizarre, uninterrupted photo op in a Florida elementary school, and then there is the matter of the remains of Flight 93 being scattered over eight miles of Pennsylvania farmland, a fact which suggests the plane may have been shot down. The official story seems wrong on all of these points.

But the focus of this article is on just one point: the odd collapse of the three buildings in the World Trade Center complex.


How I First Began to Question: WTC7

The World Trade Center (WTC) contained seven buildings. The Twin Towers were called buildings One (WTC1) and Two (WTC2). They collapsed in truly astounding fashion, but the event that caused me first to question the official story about the events of 9-11 was viewing videos of the collapse of World Trade Center Building 7 (WTC7).

If you’ve forgotten, WTC7 was a 47-story building that was not hit by an airplane or by any significant debris from either WTC1 or WTC2. Buildings 3, 4, 5, and 6 were struck by massive amounts of debris from the collapsing Twin Towers, yet none collapsed, despite their thin-gauge steel supports.

World Trade Center Buildling 7 implodes

Viewing the Collapse of WTC7

The 9-11 commemorative videos produced by PBS and CNN are best. Both clearly show WTC7’s implosion.

WTC7, which was situated on the next block over, was the farthest of the buildings from WTC1 and WTC2. WTC7 happened to contain the New York City Office of Emergency Management (OEM), a facility that was, according to testimony to the 9-11 Commission, one of the most sophisticated Emergency Command Centers on the planet. But shortly after 5:20 pm on Sept. 11, as the horrific day was coming to a close, WTC7 mysteriously imploded and fell to the ground in an astounding 6.5 seconds.

What About Towers One and Two?

6.5 seconds. This is a mere 0.5 seconds more than freefall in a vacuum. To restate this, a rock dropped from the 47th floor would have taken at least 6 seconds to hit the ground. WTC7, in its entirety, fell to the earth in 6.5 seconds. Now, recall, we’re supposed to believe that each floor of the building “pancaked” on the one below. Each of the 47 floors supposedly pancaked and collapsed, individually. Yet WTC7 reached the ground in 0.5 seconds longer than freefall. Is this really possible?
Judge for yourself. Watch WTC7 go down. It takes 6.5 seconds. Take out your stopwatch.

The odd, swift collapse of WTC7 made me reconsider the Twin Towers and how they fell. As I had with WTC7, I first studied video footage available on the web. Then I acquired and watched a DVD of the collapses, frame by frame.
What struck me first was the way the second plane hit WTC2, the South Tower. I noticed that this plane, United Airlines Flight 175, which weighed over 160,000 pounds and was traveling at 350 mph, did not even visibly move the building when it slammed into it. How, I wondered, could a building that did not visibly move from a heavy high speed projectile collapse at near freefall speed less than an hour later?


WTC1, WTC2, and WTC7 are the buildings in gray.

Next, I turned my attention to steel beams that fell in freefall next to the building as it collapsed. The beams were falling at the same rate that the towers themselves were descending. Familiar with elementary physics, including principles of conservation of energy and momentum, this seemed quite impossible if the towers were indeed "pancaking,”which is the official theory.
......
Yet another observation one makes in watching the collapsing towers is the huge dust clouds and debris, including steel beams, that were thrown hundreds of feet out horizontally from the towers as they fell. If we are to believe the pancake theory, this amount of scattering debris, fine pulverized concrete dust, and sheetrock powder would clearly indicate massive resistance to the vertical collapse. So there is an impossible conflict. You either have a miraculous, historical, instantaneous, catastrophic failure that occurs within a fraction of a second of freefall and that kicks out little dust, or you have a solid, hefty building that remains virtually unaffected after a massive, speeding projectile hits it. You either have a house of cards or a house of bricks. The building either resists its collapse or it doesn’t.
And we know the WTC Towers were made of reinforced steel and concrete that would act much more like bricks than cards.
Thus, put simply, the floors could not have been pancaking. The buildings fell too quickly. The floors must all have been falling simultaneously to reach the ground in such a short amount of time. But how?

What About the Fires?
The official story maintains that fires weakened the buildings. Jet fuel supposedly burned so hot it began to melt the steel columns supporting the towers. But steel-framed skyscrapers have never collapsed from fire, since they’re built from steel that doesn’t melt below 2750 degrees Fahrenheit. No fuel, not even jet fuel, which is really just refined kerosene, will burn hotter than 1500 degrees Fahrenheit.


It’s also odd that WTC7, which wasn’t hit by an airplane or by any significant debris, collapsed in strikingly similar fashion to the Twin Towers. There wasn’t even any jet fuel or kerosene burning in WTC7.
According to the 9-11 report by the Federal Emergency Management Agency (FEMA),
"the specifics of the fires in WTC7 and how they caused the building to collapse remain unknown at this tim."
Aside from its startling nonchalance, this statement makes a rather profound assumption. Again, no building prior to 9-11, in the 100-plus year history of steel frame buildings, had ever collapsed from fire.

Satellite shot of WTC ruins
The flattened ruins are WTC1 and WTC2 (in the middle), and WTC7 (at the bottom

This fact was known to firemen. Hence their unflinching rush up into the skyscrapers to put out the fire. Partly it was bravery, to be sure, but partly it was concrete knowledge that skyscrapers do not collapse due to fire. Yet after 100 years, three collapsed in one day.
......
There is a method that has been able to consistently get skyscrapers to fall as fast as the three buildings of the World Trade Center fell on 9-11. In this method, each floor of a building is destroyed at just the moment the floor above is about to strike it. Thus, the floors fall simultaneously ? and in virtual freefall. This method, when precisely used, has indeed given near-freefall speed to demolitions of buildings all over the world in the past few decades. This method could have brought down WTC7 in 6.5 seconds. This method is called controlled demolition.

A controlled demolition would have exploded debris horizontally at a rapid rate. A controlled demolition would also explain the fine, pulverized concrete powder, whereas pancaking floors would leave chunks of concrete. Controlled demolition would also explain the seismic evidence recorded nearby of two small earthquakes, each just before one of the Twin Towers collapsed. And finally, controlled demolition would explain why three steel skyscrapers, two of which were struck by planes and one of which wasn’t, all collapsed in essentially the same way.

WTC collapses with huge explosions
The massive energy required to pulverize concrete into microscopic dust
suggests the use of explosives

Ongoing Questions

But having established that all three WTC towers had to have been assisted in their failures, I asked myself, Who could have planted the explosives to blow up the buildings in a controlled demolition? Could fundamentalist Muslim fanatics have gotten the plans for those buildings, engineered the demolition, and then gotten into them to plant the explosives?
This seemed improbable. And after learning that WTC7 housed the FBI, CIA, and the OEM, it seemed impossible. Then I thought, Why would terrorists engineer a building to implode? Wouldn’t they want to cause even more damage to the surrounding buildings and possibly create more havoc and destruction from debris exploding away from the building? And if they’d planted explosives in the buildings, why would they have bothered hijacking and flying planes into them? Perhaps WTC7 was demolished to destroy evidence that would answer these questions. To this day, I don’t know. But this is how I began to question the official story about 9-11.
Recently I learned that President Bush’s brother, Marvin Bush, is a part owner of the company that not only provided security for both United and American Airlines, but also for the World Trade Center complex itself. I also discovered that Larry Silverstein, who had bought the leasing rights for the WTC complex from the NY/NJ Port Authority in May of 2001 for $200 million, had received a $3.55 billion insurance settlement right after 9-11 - yet he was suing for an additional $3.55 billion by claiming the two hits on the towers constituted two separate terrorist attacks! He stood to make $7 billion dollars on a four month investment. Talk about motive.
In conclusion, I’ll repeat myself. None of the many 9-11 researchers can definitively say exactly what happened on that fateful day in September almost 3 years ago. But any sensible person can easily spot dozens of inconsistencies in the official story that is being forced upon us. And the fact is, most of the available 9-11 evidence points to at least some level of government complicity or foreknowledge.
Please, read more for yourself. Don’t take my word for it. Most of all, do not buy the double-speak that visible politicians and the media use to discount any question about 9-11. Clearly, there are no "conspiracy theories”surrounding 9-11. The official story itself affirms that there was obviously some kind of conspiracy. It’s just a question of which conspiracy occurred. We know it wasn’t mere coincidence that several hijackers happened to be on several different airplanes and happened to hijack them at the exact same time and happened to pick the World Trade Center as a target. The real question is, "Who was involved in the conspiracy?”
Dave Heller, who has degrees in physics and architecture, is a builder and engaged citizen in Berkeley, California.



http://www.globalresearch.ca/index.php?context=va&aid=15201

At 5:21 in the afternoon of 9/11, almost seven hours after the Twin Towers had come down, Building 7 of the World Trade Center also came down. The collapse of this building was from the beginning considered a mystery. [1]
The same should have been true, to be sure, of the collapse of the Twin Towers. But they had been hit by planes, which had ignited big fires in them, and many people assumed this combination of causes to be sufficient to explain why they came down.

But WTC 7 had not been hit by a plane, so it was apparently the first steel-framed high-rise building in the known universe to have collapsed because of fire alone. New York Times writer James Glanz quoted a structural engineer as saying: “[W]ithin the structural engineering community, [WTC 7] is considered to be much more important to understand [than the Twin Towers],” because engineers had no answer to the question, “why did 7 come down?” [2]

From a purely scientific perspective, of course, there would have been an obvious answer. Scientists, presupposing the regularity of nature, operate on the principle that like effects generally imply like causes. Scientists are, therefore, loathe to posit unprecedented causes for common phenomena. By 9/11, the collapse of steel-framed high-rises had become a rather common phenomenon, which most Americans had seen on television. And in every one of these cases, the building had been brought down by explosives in the process known as controlled demolition. From a scientific perspective, therefore, the obvious assumption would have been that WTC 7 came down because explosives had been used to remove its steel supports.

However, the public discussion of the destruction of the World Trade Center did not occur in a scientific context, but in a highly charged political context. America had just been attacked, it was almost universally believed, by foreign terrorists who had flown hijacked planes into the Twin Towers, and in response the Bush administration had launched a “war on terror.” The idea that even one of the buildings had been brought down by explosives would have implied that the attacks had not been a surprise, so this idea could not be entertained by many minds in private, let alone in public.

This meant that people had to believe, or at least pretend to believe, that Building 7 had been brought down by fire, even though, as Glanz wrote: “[E]xperts said no building like it, a modern, steel-reinforced high-rise, had ever collapsed because of an uncontrolled fire.” [3] And so, this building’s collapse had to be considered a mystery – insofar as it was considered at all.

But this was not much. Although WTC 7 was a 47-story building, which in most places would have been the tallest building in the city, if not the state, it was dwarfed by the 110-story Twin Towers. It was also dwarfed by them in the ensuing media coverage. And so, Glanz wrote, the collapse of Building 7 was “a mystery that . . . would probably have captured the attention of the city and the world,” if the Twin Towers had not also come down. [4] As it was, however, the mystery of Building 7’s collapse was seldom discussed.

For those few people who were paying attention, the mysteriousness of this collapse was not lessened by the first official report about it, which was issued by FEMA in 2002. This report put forward what it called its “best hypothesis” as to why the building collapsed, but then added that this hypothesis had “only a low probability of occurrence.” [5]

This FEMA report, in fact, increased the mystery, thanks to an appendix written by three professors at Worcester Polytechnic Institute. This appendix reported that a piece of steel from WTC 7 had melted so severely that it had gaping holes in it, making it look like a piece of Swiss cheese. [6] James Glanz, pointing out that the fires in the building could not have been hot enough to melt steel, referred to this discovery as “the deepest mystery uncovered in the investigation.”[7]

The task of providing the definitive explanation of the collapse of WTC 7 was given to NIST, the National Institute of Standards and Technology. Although NIST had been expected to issue its report on this building along with its report on the Twin Towers, which came out in 2005, it did not. NIST then continued to delay this report until August of 2008, at which time it issued a Draft for Public Comment.

1. NIST’s Denial of Evidence for Explosives
At a press briefing, Shyam Sunder, NIST’s lead investigator, declared that “the reason for the collapse of World Trade Center 7 is no longer a mystery.” Also, announcing that NIST “did not find any evidence that explosives were used to bring the building down,” [8] he said: “[S]cience is really behind what we have said.” [9] In the remainder of this lecture, I will show that both of those statements were false.
.........
Before going into details, let me point out that, if NIST did engage in fraudulent science, this would not be particularly surprising. NIST is an agency of the US Department of Commerce. During the years it was writing its World Trade Center reports, therefore, it was an agency of the Bush-Cheney administration. In 2004, the Union of Concerned Scientists put out a document charging this administration with “distortion of scientific knowledge for partisan political ends.” By the end of the Bush administration, this document had been signed by over 15,000 scientists, including 52 Nobel Laureates and 63 recipients of the National Medal of Science. [10]
Moreover, a scientist who formerly worked for NIST has reported that it has been “fully hijacked from the scientific into the political realm,” with the result that scientists working for NIST “lost [their] scientific independence, and became little more than ‘hired guns.’”11 Referring in particular to NIST’s work on the World Trade Center, he said everything had to be approved by the Department of Commerce, the National Security Agency, and the Office of Management and Budget---“an arm of the Executive Office of the President,” which “had a policy person specifically delegated to provide oversight on [NIST’s] work.” [12]
One of the general principles of scientific work is that its conclusions must not be dictated by nonscientific concerns – in other words, by any concern other than that of discovering the truth. This former NIST employee’s statement gives us reason to suspect that NIST, while preparing its report on WTC 7, would have been functioning as a political, not a scientific, agency. The amount of fraud in this report suggests that this was indeed the case.
According to the National Science Foundation, the major types of scientific fraud are fabrication, falsification, and plagiarism. There is no sign that NIST is guilty of plagiarism, but it is certainly guilty of fabrication, which can be defined as “making up results,” and falsification, which means either “changing or omitting data.” [13]
The omission of evidence by NIST is so massive, in fact, that I treat it as a distinct type of scientific fraud. As philosopher Alfred North Whitehead said in his 1925 book, Science and the Modern World: “It is easy enough to find a [self-consistent] theory . . . , provided that you are content to disregard half your evidence.” The “moral temper required for the pursuit of truth,” he added, includes “[a]n unflinching determination to take the whole evidence into account.” [14]
NIST, however, seemed to manifest an unflinching determination to disregard half of the relevant evidence.

Some of the evidence ignored by NIST is physical evidence that explosives were used to bring down WTC 7.
Swiss-Cheese Steel: I will begin with the piece of steel from WTC 7 that had been melted so severely that it looked like Swiss cheese. Explaining why it called this “the deepest mystery uncovered in the investigation,” James Glanz wrote: “The steel apparently melted away, but no fire in any of the buildings was believed to be hot enough to melt steel outright.” [15] Glanz’s statement was, in fact, quite an understatement. The full truth is that the fires in the building could not have brought the steel anywhere close to the temperature – about 1,482°C (2,700°F) – needed for it to melt. [16]
The professors who reported this piece of steel in the appendix to the FEMA report said: “A detailed study into the mechanisms [that caused] this phenomenon is needed.”[17] Arden Bement, who was the director of NIST when it took on the WTC project, said that NIST’s report would address “all major recommendations contained in the [FEMA] report.” [18]
But when NIST issued its report on WTC 7, it did not mention this piece of steel with the Swiss-cheese appearance. Indeed, NIST even claimed that not a single piece of steel from WTC 7 had been recovered. [19]
This piece of steel, moreover, was only a small portion of the evidence, ignored by NIST, that steel had melted.
Particles of Metal in the Dust: The Deutsche Bank building, which was right next to the Twin Towers, was heavily contaminated by dust produced by their destruction. But Deutsche Bank’s insurance company refused to pay for the clean-up, claiming that this dust had not resulted from the destruction of the WTC. So Deutsche Bank hired the RJ Lee Group to do a study, which showed that the dust in the Deutsche Bank was WTC dust, which had a unique signature. Part of this signature was “Spherical iron . . . particles.” [20] This meant, the RJ Lee Group said, that iron had “melted during the WTC Event, producing spherical metallic particles.” [21] The study even showed that, whereas iron particles constitute only 0.04 percent of normal building dust, they constituted almost 6 percent of WTC Dust – meaning almost 150 times as much as normal. [22]
The RJ Lee study also found that temperatures had been reached “at which lead would have undergone vaporization” [23] – meaning 1,749°C (3,180°F). [24]
Another study was carried out by the US Geological Survey, the purpose of which was to aid the “identification of WTC dust components.” Besides also finding iron particles, the scientists involved in this study found that molybdenum had been melted. This finding was especially significant, because this metal does not melt until it reaches 2,623°C (4,753°F). [25]
NIST, however, did not mention either of these studies, even though the latter one was carried out by another US government agency.
NIST could not mention these studies because it was committed to the theory that the WTC buildings were brought down by fire, while these studies clearly showed that something other than fire was going on in those buildings.
Nanothermite Residue: What was that? A report by several scientists, including chemist Niels Harrit of the University of Copenhagen, showed that the WTC dust contained unreacted nanothermite, which – unlike ordinary thermite, which is an incendiary – is a high explosive. This report by Harrit and his colleagues, who included Steven Jones and Kevin Ryan, did not appear until 2009, [26] several months after the publication of NIST’s final report in November 2008.
But NIST, as a matter of routine, should have tested the WTC dust for residue of explosives, such as nanothermite. The Guide for Fire and Explosion Investigations put out by the National Fire Protection Association says that a search for evidence for explosives should be undertaken whenever there has been “high-order damage.” Leaving no doubt about the meaning of this term, the Guide says:
High-order damage is characterized by shattering of the structure, producing small, pulverized debris. Walls, roofs, and structural members are splintered or shattered, with the building completely demolished. [27]
That description applied to the destruction of the Twin Towers and WTC 7. The next sentence – “Debris is thrown great distances, possibly hundreds of feet” – applied to the destruction of the Twin Towers, a fact that NIST had to admit in order to explain how fires were started in WTC 7. [28] So NIST should have looked for signs of explosives, such as nanothermite.
But when asked whether it had, NIST said No. A reporter asked Michael Newman, a NIST spokesman, about this failure, saying: “[W]hat about that letter where NIST said it didn’t look for evidence of explosives?” Newman replied: “Right, because there was no evidence of that.” “But,” asked the reporter “how can you know there’s no evidence if you don’t look for it first?” Newman replied: “If you’re looking for something that isn’t there, you’re wasting your time . . . and the taxpayers’ money.” [29] (You couldn’t make this stuff up.)
When Shyam Sunder, who headed up NIST’s investigation of the WTC buildings, gave his press conference in August of 2008 – at which he announced that “the reason for the collapse of World Trade Center 7 is no longer a mystery” – he began by saying:
Before I tell you what we found, I’d like to tell you what we did not find. We did not find any evidence that explosives were used to bring the building down. [30]
By making this point first, Sunder indicated that this was NIST’s most important conclusion – just as it had been NIST’s most important conclusion about the Twin Towers. However, although Sunder claimed that this conclusion was based on good science, a conclusion has no scientific validity if it can be reached only by ignoring half the evidence.
Molten Metal: In addition to the ignored evidence already pointed out, NIST also, in its investigation of the WTC, ignored reports that the rubble contained lots of molten metal – which most people described as molten steel. For example, firefighter Philip Ruvolo, speaking of the Twin Towers, said: “You'd get down below and you'd see molten steel, molten steel, running down the channel rails, like you're in a foundry, like lava." [31]
Peter Tully, president of Tully Construction, which was involved in the clean-up operation, said that he saw pools of “literally molten steel.” [32]
However, when John Gross, one of the main authors of NIST’s reports, was asked about the molten steel, he said to the questioner: I challenge your “basic premise that there was a pool of molten steel,” adding: “I know of absolutely no . . . eyewitness who has said so.”[33]
However, in addition to Ruvolo and Tully, the eyewitnesses who said so included:
• Leslie Robertson, a member of the engineering firm that designed the Twin Towers. [34]
• Dr. Ronald Burger of the National Center for Environmental Health. [35]
• Dr. Alison Geyh of The Johns Hopkins School of Public Health, who headed up a scientific team that went to the site shortly after 9/11 at the request of the National Institute of Environmental Health Sciences. [36]
• Finally, the fact that “molten steel was also found at WTC 7” was added by Mark Loizeaux, president of Controlled Demolition, Inc., which was involved in the clean-up. [37] And yet John Gross suggested that no credible witnesses had reported molten steel. That appears to have been a gross lie.

Besides ignoring physical evidence that explosives had been used, NIST also ignored testimonial evidence.
NIST’s Twin Towers Report: In its 2005 report on the Twin Towers, NIST ignored dozens of testimonies provided by reporters, police officers, and WTC employees, along with 118 testimonies provided by members of the Fire Department of New York. [38] NIST even explicitly denied the existence of these reports, saying that there “was no evidence (collected by . . . the Fire Department of New York) of any blast or explosions” that would have suggested that explosives were going off. [39]
However, when a group of scholars including scientists and a lawyer called NIST on this false statement, NIST refined its meaning, saying:
NIST reviewed all of the interviews conducted by the FDNY of firefighters (500 interviews). . . . Taken as a whole, the interviews did not support the contention that explosives played a role in the collapse of the WTC Towers. [40]
So, although NIST had said in its report that there was no testimonial evidence for explosives, it now seemed to be saying that, because only 118 out of 500 reported explosions, the testimonies, “taken as a whole,” do not support the idea that explosions were going off, so that NIST had been justified in claiming that there was no testimonial evidence to support the idea that explosives had been used.
Imagine an investigation of a murder on the streets of San Francisco. Of the 100 people who were at the scene at the time, 25 of them reported seeing Pete Smith shoot the victim. But the police release Pete Smith, saying that, taken as a whole, the testimonies did not point to his guilt. That would be NIST-style forensic science.
Reports from People Outside WTC 7: NIST continued this approach in its WTC 7 report. There had been several credible reports of explosions. A reporter for the New York Daily News, said:
[T]here was a rumble. The building's top row of windows popped out. Then all the windows on the thirty-ninth floor popped out. Then the thirty-eighth floor. Pop! Pop! Pop! was all you heard until the building sunk into a rising cloud of gray. [41]
NYPD officer Craig Bartmer said:
I was real close to Building 7 when it fell down. . . . [A]ll of a sudden. . . I looked up, and . . . [t]he thing started pealing in on itself. . . . I started running . . . and the whole time you're hearing “boom, boom, boom, boom, boom.” [42]
Reports from Hess and Jennings from Inside WTC 7: Besides ignoring these and other reports of explosions made by people outside Building 7, NIST distorted the testimony of two highly credible men who were inside: Michael Hess, who was New York City’s corporation counsel, and Barry Jennings, the deputy director of the Emergency Services Department of the New York City Housing Authority.
Immediately after the North Tower was struck that morning, both men followed the instruction that, whenever there was an emergency, they were to meet Major Giuliani at his Emergency Management Center on the 23rd floor of Building 7. The North Tower was struck at 8:46, so they would have arrived at about 9:00. They found, however, that everyone had left. Calling to find out what they should do, Jennings was told to get out of the building immediately. So, finding that the elevator would not work (the electricity had evidently been knocked out at 9:03 by the airplane strike on the South Tower), they started running down the stairs. But when they got to the 6th floor, there was a huge explosion, which blew the landing out from under them and blocked their path. They went back up to the 8th floor, broke a window, and signaled for help.
Firemen came to rescue them, Jennings said, but then ran away. Coming back after a while, the firemen again started to rescue them, but then ran away again. They had to run away the first time, Jennings explained, because of the collapse of the South Tower, which occurred at 9:59, and the second time because of the North Tower collapse, which occurred at 10:28. On that basis, Jennings told Dylan Avery in an interview in 2007, he knew that, when that big explosion occurred, “both buildings were still standing.” Finally, when the firemen returned after the second tower collapsed, Hess and Jennings were rescued.
This must have been sometime between 11:00 and 11:30, because at 11:57, Hess gave an on-the-street interview several blocks away. Jennings also gave an on-the-street interview. Both men reported that they had been trapped for some time – Hess specified “about an hour and a half.”
This story obviously was very threatening to NIST. It was going to claim that, when Building 7 came down at 5:21 that afternoon, it did so solely because of fires. There were no explosives to help things along.
But here were two city officials reporting that a big explosion had gone off pretty early in the morning, evidently before 9:30. In his interview for Dylan Avery, moreover, Jennings said that the big explosion that trapped them was simply the first of many. He also said that when the firefighter took them down to the lobby, he saw that it had been totally destroyed – it was, he said, “total ruins, total ruins.” Jennings also that, when he and the firefighter were walking through this lobby, they were “stepping over people.” [43]
Jennings’s testimony contradicted the official story, according to which there were no explosions in WTC 7 and no one was killed in this building. What would NIST do?
NIST’s Treatment of the Hess-Jennings Testimony: NIST simply ignored Jennings’ report about the lobby and, with regard to the time that Hess and Jennings got trapped, followed the line that had taken by Rudy Giuliani in a 2002 book, according to which the event that Hess and Jennings took to be an explosion within WTC 7 was simply the impact of debris from the collapse of the North Tower.
But that collapse did not occur until 10:28, whereas the event described by Hess and Jennings had occurred at least an hour earlier.
Also, Jennings said that the South Tower as well as the North Tower was still standing when the event he called an explosion occurred, and that is surely what he told NIST when it interviewed him (as well as Hess) in the Spring of 2004.
Another problem was that Hess had said that they had been trapped for “about an hour and a half.” If the event that trapped them did not happen until almost 10:30, as NIST claims, then they would not have been rescued before noon. And sure enough, in an Interim Report on WTC 7 put out by NIST in 2004, it claimed that Hess and Jennings had been rescued “[a]t 12:10 to 12:15 PM.” But that is clearly false, given the fact that Hess was being interviewed several blocks away before noon. [44]
NIST would, of course, deny that it had distorted Jennings’ testimony. But when we sent a Freedom of Information Act request to NIST to obtain a copy of the Hess and Jennings interviews, NIST declined on the basis of a provision allowing for exemption from FOIA disclosure if the information is “not directly related to the building failure.” [45] NIST thereby suggested that a report of a massive explosion within the building would be irrelevant to determining the cause of its failure. Using such an obviously phony reason seemed to be NIST’s way of saying: There’s no way we’re going to release those interviews.
The BBC Helps Out: In any case, NIST’s attempt to neutralize the testimony of Barry Jennings was aided by the BBC, which interviewed Jennings and then, obviously, changed the timeline, so that the narrator, with her reassuring voice, could say:
“At 10:28, the North Tower collapses. . . . This time, Tower 7 takes a direct hit from the collapsing building. . . . Early evidence of explosives were just debris from a falling skyscraper.” [46]
Mike Rudin, who produced this BBC program, recently telephoned me to discuss the possibility of interviewing me about my little book, Osama bin Laden: Dead or Alive? [47] I told him that I had a book coming out shortly about WTC 7 and that, after seeing it, he probably would not want to interview me. When he asked why, I said because I pointed out that he had obviously distorted the timeline of Jennings’s account. When he denied this, I said, OK, show me the uncut, unedited interview. If this interview had showed that Rudin had not distorted the timeline, I would have told the world. Rudin, however, declined to allow me to see the unedited interview. [48]
This BBC program had appeared in July of 2008. The first version of NIST’s final report – its Draft for Public Comment – was to be released at a press briefing on August 21, at which time Sunder would announce that the mystery of the collapse of WTC 7 had been solved.
The Death of Barry Jennings: Two days prior to that, Barry Jennings died – and died very mysteriously. No one has been willing to provide any information as to how or why this 53-year-old man had died. Dylan Avery, trying to find out something, hired a private investigator - reputed to be one of the best in the state of New York - to find out what she could. He used his credit card to pay her a considerable fee. Within 24 hours, however, Avery received a message from her, saying:
Due to some of the information I have uncovered, I have determined that this is a job for the police. I have refunded your credit card. Please do not contact me again about this individual.
This is not the response one would expect, Avery observed, if she had merely found that Jennings had passed away “innocently in a hospital.” [49] The dedication page on my book says: “To the memory of Barry Jennings, whose truth-telling may have cost him his life.”
Be that as it may, his death was very convenient for NIST, which now did not need to fear that Jennings might hold his own press conference to say that NIST had lied about his testimony.
The BBC Helps Out Again: The death of Jennings was also convenient for the BBC, which could now put out a second version of its program on WTC 7, this time including Michael Hess.
In the first version, the BBC had pretended that Jennings had been in the building all by himself. Even though Jennings would say, “We did this, and then We did that,” the BBC spoke only of Jennings, never mentioning the fact that Hess was with him.
But in the new version, which was aired at the end of October 2008, Hess was the star. While admitting that, back on 9/11, he had “assumed that there had been an explosion in the basement,” he said: “I know now this was caused by the northern half of Number 1 [the North Tower] falling on the southern half of our building,” exactly what Giuliani had said in his book. It is no surprise that Hess supported Giuliani’s account, given the fact that since 2002 Hess has been Giuliani’s business partner.
In spite of the fact that Hess could in no way be considered an impartial witness, Mike Rudin portrayed him as such. On his BBC blog, Rudin said that some “self-styled truthers” had charged that the BBC, in presenting Barry Jennings’ testimony, had “misrepresented the chronology.” But, Rudin said triumphantly, Michael Hess, “In his first interview since 9/11 . . . confirms our timeline.”
But Hess’s account could be said to “confirm” the BBC timeline only if it were a credible account. In my book, however, I show that it is riddled with problems, so that anyone can easily see that he was lying. [50]
Thus far, I have spoken about the first half of my book, which deals with NIST’s negative claim, namely, that it had found no evidence that explosives were used to bring down WTC 7. NIST could make this argument, I have pointed out, only by committing two kinds of scientific fraud: Ignoring relevant evidence and falsifying evidence – in this case, the testimony of Barry Jennings.
The second half of my book deals with NIST’s own theory as to how fire brought the building down. To develop such a theory, NIST had to falsify and fabricate data on a possibly unprecedented scale. And yet, after all of that, it had to violate one of the basic principles of science: Thou shalt not affirm miracles.
You perhaps know the cartoon about this. A physics professor has filled several boards with mathematical equations, at the bottom of which we read: “Then a miracle happens.” In science, you cannot appeal to miracles, whether explicitly, or only implicitly – by implying that some basic principle of physics has been violated. And yet that is what NIST does.
But before describing its miracle story, I will point out three especially obvious examples of scientific fraud committed by NIST before it resorted to this desperate expedient. These examples all involve fabrication.
No Girder Shear Studs: NIST’s explanation as to how fire caused Building 7 to collapse starts with thermal expansion, meaning that the fire heated up the steel, thereby causing it to expand.
A steel beam on the 13th floor, NIST claims, caused a steel girder attached to Column 79 to break loose. Having lost its support, Column 79 failed, and this failure started a chain reaction, in which all 82 of the building’s steel columns failed. [51]
Without getting into the question of whether this is even remotely plausible, let us just focus on the question: Why did that girder fail?
It failed, NIST said, because it was not connected to the floor slab with sheer studs. NIST wrote:
In WTC 7, no studs were installed on the girders.
Floor beams . . . had shear studs, but the girders that supported the floor beams did not have shear studs.
This point was crucial to NIST’s answer to a commonly asked question: Why did fire cause WTC 7 to collapse, when fire had never before brought down steel-framed high-rise buildings, some of which had had much bigger and longer-lasting fires? NIST’s answer was: differences in design.
One of those crucial differences, NIST stated repeatedly, was “the absence of [girder] shear studs that would have provided lateral restraint.”
But this was a fabrication on NIST’s part. How can we know this? All we need to do is to look at NIST’s Interim Report on WTC 7, which it had published back in 2004, before it had developed its theory of girder failure.
This report stated that girders as well as the beams had been attached to the floor by means of shear studs. [52]
We have here as clear a case of fabrication as one will see, with NIST simply making up a fact in order to meet the needs of its new theory.
The Raging Fire on Floor 12 at 5:00 PM: NIST also contradicted its “interim report” in telling a lie about the fire in the building. NIST claims that there were very big, very hot fires covering much of the north face of the 12th floor at 5:00 PM. This claim is essential to NIST’s explanation as to why the building collapsed 21 minutes later. However, if you look back at NIST’s interim report, published before it had developed its theory, you will find this statement:
Around 4:45 PM, a photograph showed fires on Floors 7, 8, 9, and 11 near the middle of the north face; Floor 12 was burned out by this time.
Other photographs even show that the 12th floor fire had virtually burned out by 4:00. And yet NIST now claims that fires were still going strong at 5:00 PM. [53] We have here another clear case of fabrication.
Shear Stud Failure: A third case of fabrication involves shear studs again – this time the shear studs that connected to the steel beams to the floor slab.
NIST claims that, due to the failure of that crucial girder discussed earlier, the floor beams were able to expand without constraint. But each of these beams was connected to the floor slab by 28 high-strength shear studs. These studs should have provided plenty of restraint.
They would have, except for the fact, NIST tells us, that they all broke.
Why did they break? Because of what NIST calls “differential thermal expansion,” which is simply a technical way of saying that, in response to the heat from the fires, the steel beams expanded more than the floor slabs did.
But why would that have been the case? Steel and concrete have virtually the same “coefficient of thermal expansion,” meaning that they expand virtually the same amount in response to heat. If that were not the case, reinforced concrete – that is, concrete reinforced with steel – would break up when the weather got very hot or very cold. NIST itself points out that “steel and concrete have similar coefficients of thermal expansion.”
So why does NIST claim that the shear studs broke because of differential thermal expansion?
To understand this point, you need to understand that NIST’s theory is an almost totally computer-based theory. NIST fed various variables into a computer program, which then supposedly told it how WTC 7 would have reacted to its fires. So, what did NIST feed into its computer that caused it to say that the steel would have expanded so much more than the concrete slab that all of the shear studs would have broken? The answer is given in this bland statement:
No thermal expansion or material degradation was considered for the concrete slab, as the slab was not heated in this analysis.
When I first read this statement, I had to rub my eyes. Surely, I thought, I have mis-read the statement, because a few pages earlier, NIST had said: “differential thermal expansion occurred between the steel floor beams and concrete slab when the composite floor was subjected to fire.” The “composite floor,” by definition, is the steel beams made composite with the floor slab by means of the shear studs. So NIST had clearly said, in stating that the composite floor had been subjected to fire, that both the steel beams and the concrete slab had been heated.
But then in the eye-rubbing passage, NIST said: When doing its computer simulation, it told the computer that only the steel beams had been heated; the concrete floor slab was not. [54]
So of course the steel beams would have expanded, while the floor slabs stayed stationary, thereby causing the sheer studs to break, after which the steel beams could expand like crazy and bump into Column 79, which then causes the whole building to come down.
A comic book version of the official story of 9/11 has been published. [55] This was an exercise in redundancy, because the official reports already are the comic book version of what happened on 9/11. In any case, I come now to NIST’s miracle.
Members of the 9/11 Truth Movement had almost from the first been pointing out that WTC 7 came down at the same rate as a free-falling object, at least virtually so.
NIST’S Denial of Free Fall: In NIST’s Draft for Public Comment, it denied this, saying that the time for the upper 18 floors to collapse “was approximately 40 percent longer than the computed free fall time and was consistent with physical principles.”
Implicit in this statement is that any assertion that the building did come down in free fall would not be consistent with physical principles – that is, the principles of physics.
Explaining why not, Shyam Sunder said at a technical briefing:
[A] free fall time would be [the fall time of] an object that has no structural components below it. . . . [T]he . . . time that it took . . . for those 17 floors to disappear [was roughly 40 percent [longer than free fall]. And that is not at all unusual, because there was structural resistance that was provided in this particular case. And you had a sequence of structural failures that had to take place. Everything was not instantaneous.
Chandler’s Challenge: However, high-school physics teacher David Chandler challenged Sunder’s denial at this briefing, pointing that Sunder’s 40 percent claim contradicts “a publicly visible, easily measurable quantity.”
The following week, Chandler placed a video on the Internet showing that, by measuring this publicly visible quantity, anyone knowing elementary physics could see that “for about two and a half seconds. . . , the acceleration of the building is indistinguishable from freefall.”
Finally, Chandler wrote a comment to NIST, saying: “Acknowledgment of and accounting for an extended period of free fall in the collapse of WTC 7 must be a priority if the NIST is to be taken seriously.”
NIST Admits Free Fall: Amazingly, NIST did acknowledge free fall in its final report. It tried to disguise it, but the admission is there on page 607. Dividing the building’s descent into three stages, it describes the second phase as “a freefall descent over approximately eight stories at gravitational acceleration for approximately 2.25 s[econds]. “Gravitational acceleration” is a synonym for free fall acceleration.
So, after presenting 606 pages of descriptions, testimonies, photographs, graphs, analyses, explanations, and mathematical formulae, NIST on page 607 says, in effect: “Then a miracle happens.”
Why this would be a miracle was explained by Chandler, who said: “Free fall can only be achieved if there is zero resistance to the motion.”
The implication of Chandler’s remark is that, by the principles of physics, the upper portion of Building 7 could have come down in free fall only if something had removed all the steel and concrete in the lower part of the building, which would have otherwise provided resistance, and only explosives of some sort could have removed them.
If they had not been removed and the upper floors had come down in free fall anyway, even for only a second or two, a miracle would have happened.
That was what Sunder himself had explained the previous August, saying that a free-falling object would be one “that has no structural components below it” to offer resistance. Having stated in August that free fall could not have happened, NIST also stated that it did not happen, saying: “WTC 7 did not enter free fall.”
But then in November, while still defending the same theory, which rules out explosives and thereby rules out free fall, NIST admitted that, as an empirical fact, free fall happened. For a period of 2 and a fourth seconds, NIST admitted, the descent of WTC 7 was characterized by “gravitational acceleration (free fall).”
Knowing that it had thereby affirmed a miracle, meaning a violation of a law of physics, NIST no longer claimed that its analysis was consistent with the physical principles. In its Draft put out in August, NIST had repeatedly said that its analysis of the collapse was “consistent with physical principles.” One encountered this phrase time and time again. In its final report, however, this phrase is no more to be found.
NIST thereby admitted, for those with eyes to see, that its report on WTC 7, by admitting free fall while continuing to deny that explosives were used, is not consistent with the principles of physics. [56]
And yet the mainstream press will not report this admission. So the press continues to support the notion that anyone who questions the official reports on 9/11 is unfit for public service. [57]

The 9/11 Truth Movement has long considered the collapse of Building 7 to be the Achilles’ heel of the official story about 9/11 – the part of this story that, by being most vulnerable, could be used to bring down the whole body of lies.

My latest book, The Mysterious Collapse of World Trade Center 7: Why the Final Official Report about 9/11 Is Unscientific and False, shows that the official account of this building is indeed extremely vulnerable to critique – so vulnerable that, to see the falsity of this account, you need only to read NIST’s attempt to defend it, noting the obvious lies in NIST’s report and its violations of basic principles of physics.
I hope that my book will indeed help bring down that body of lies that some of us call the Bush-Cheney conspiracy theory, according to which al-Qaeda hijackers, by flying planes into two buildings of the World Trade Center, brought down three of them – an obviously false conspiracy theory that is still being used, among other things, to kill women, children, and other innocent people in Afghanistan and Pakistan.

Notes
1. This is a slightly revised version of a lecture presented at the 9/11 Film Festival at Grand Lake Theater, Oakland, California, September 10, 2009. It is based on David Ray Griffin, The Mysterious Collapse of World Trade Center 7: Why the Final Official Report about 9/11 is Unscientific and False (Northampton, Mass., Olive Branch [Interlink Books], 2009).
2. James Glanz, “Engineers Suspect Diesel Fuel in Collapse of 7 World Trade Center,” New York Times, November 29, 2001 (http://www.nytimes.com/2001/11/29/nyregion/29TOWE.html).
3. Ibid.
4. Ibid.
5. See FEMA, World Trade Center Building Performance Study (http://www.fema.gov/pdf/library/fema403_ch5.pdf), Ch. 5, Sect. 6.2, “Probable Collapse Sequence.”
6. Jonathan Barnett, Ronald R. Biederman, and Richard D. Sisson, Jr., “Limited Metallurgical Examination,” FEMA, World Trade Center Building Performance Study, May 2002, Appendix C (http://wtc.nist.gov/media/AppendixC-fema403_apc.pdf).
7. James Glanz and Eric Lipton, “A Search for Clues in Towers’ Collapse,” New York Times, February 2, 2002
(http://query.nytimes.com/gst/fullpage.html?res=9C04E0DE153DF931A35751C0A9649C8B63).
8. Shyam Sunder, “Opening Statement,” NIST Press Briefing, August 21, 2008
http://wtc.nist.gov/media/opening_remarks_082108.html).

9. Quoted in “Report: Fire, Not Bombs, Leveled WTC 7 Building,” USA Today, August 21, 2008
(http://www.usatoday.com/news/nation/2008-08-21-wtc-nist_N.htm).
10. Union of Concerned Scientists, “Restoring Scientific Integrity in Federal Policymaking”
(www.ucsusa.org/scientific_integrity/abuses_of_science/scientists-sign-on-statement.html).
11. “NIST Whistleblower,” October 1, 2007 (http://georgewashington.blogspot.com/2007/10/former-nist-employee-blows-whistle.html).

12. Ibid.

13. “What is Research Misconduct?” National Science Foundation, Office of Inspector General, New Research Misconduct Policies

(http://www.nsf.gov/oig/session.pdf). Although this document is undated, internal evidence suggests that it was written in 2001.

14. Alfred North Whitehead, Science and the Modern World (1925; New York: Free Press, 1967), 187.

15. Glanz and Lipton, “A Search for Clues in Towers’ Collapse.”

16. The melting point of iron is 1,538°C (2,800°F). Steel, as an alloy, comes in different grades, with a range of melting points, depending on the percent of carbon (which lowers the melting point), from 1,371°C (2,500°F) to 1,482°C (2,700° F); see “Melting Points of Metals”
(http://www.uniweld.com/catalog/alloys/alloys_melting.htm).

17. Barnett, Biederman, and Sisson, “Limited Metallurgical Examination,” C-13.

18. Dr. Arden L. Bement, Jr., Testimony before the House Science Committee Hearing on “The Investigation of the World Trade Center Collapse,” May 1, 2002 (http://911research.wtc7.net/cache/wtc/official/nist/bement.htm). In the quoted statement, the name “FEMA” replaces “BPAT,” which is the abbreviation for “Building Performance Assessment Team,” the name of the ASCE team that prepared this report for FEMA.

19. “Questions and Answers about the NIST WTC 7 Investigation,” updated December 18, 2008
(http://www.nist.gov/public_affairs/factsheet/wtc_qa_082108.html).

20. RJ Lee Group, “WTC Dust Signature,” Expert Report, May 2004
(http://www.nyenvirolaw.org/WTC/130%20Liberty%20Street/Mike%20Davis%20LMDC%20130%20Liberty%20Documents/Signature%20of%20WTC%20dust/WTCDustSignature_ExpertReport.051304.1646.mp.pdf), 11.

21. RJ Lee Group, “WTC Dust Signature Study: Composition and Morphology,” December 2003 (http://www.nyenvirolaw.org/WTC/130%20Liberty%20Street/Mike%20Davis%20LMDC%20130%20Liberty%20Documents/Signature%20of%20WTC%20dust/WTC%20Dust%20Signature.Composition%20and%20Morphology.Final.pdf), 17. On the differences between the 2003 and 2004 studies, see my discussion in The Mysterious Collapse of World Trade Center 7: Why the Final Official Report about 9/11 is Unscientific and False (Northampton, Mass., Olive Branch (Interlink Books], 2009), 40-41.

22. RJ Lee Group, “WTC Dust Signature Study” (2003), 24.

23. Ibid., 21.

24. WebElements: The Periodic Table on the Web (http://www.webelements.com/lead/physics.html).

25. WebElements: The Periodic Table on the Web (http://www.webelements.com/molybdenum/physics.html). Although the scientists involved with this USGS study discovered the molybdenum, they did not mention it in their report. Knowledge of their discovery was obtained only by means of a FOIA request. See The Mysterious Collapse, 44-45.

26. Niels H. Harrit, Jeffrey Farrer, Steven E. Jones, Kevin R. Ryan, Frank M. Legge, Daniel Farnsworth, Gregg Roberts, James R. Gourley, and Bradley R. Larsen, “Active Thermitic Material Observed in Dust from the 9/11 World Trade Center Catastrophe,” The Open Chemical Physics Journal, 2009/2: 7-31 (http://www.bentham.org/open/tocpj/openaccess2.htm).

27. National Fire Protection Association, 921 Guide for Fire and Explosion Investigations, 1998 Edition
(http://www.interfire.org/res_file/92112m.asp), Section 18.3.2.

28. See The Mysterious Collapse, 142-44.

29. Jennifer Abel, “Theories of 9/11,” Hartford Advocate, January 29, 2008 (http://www.hartfordadvocate.com/article.cfm?aid=5546).

30. Sunder, “Opening Statement.”

31. Ruvolo is quoted in the DVD “Collateral Damages” (http://www.allhandsfire.com/page/AHF/PROD/ISIS-COLL). For just this segment plus discussion, see Steve Watson, “Firefighter Describes ‘Molten Metal’ at Ground Zero, Like a ‘Foundry,’” Inforwars.net, November 17, 2006
(http://www.infowars.com/articles/sept11/firefighter_describes_molten_metal_ground_zero_like_foundry.htm).
32. Quoted in Christopher Bollyn, “Professor Says ‘Cutter Charges’ Brought Down WTC Buildings,” American Free Press.net, May 1 & 8, 2006
(http://www.americanfreepress.net/html/cutter_charges_brought_down_wt.html).

33. “NIST Engineer, John Gross, Denies the Existance [sic] of Molten Steel”
(http://video.google.com/videoplay?docid=-7180303712325092501&hl=en).

34. James Williams, “WTC a Structural Success,” SEAU News: The Newsletter of the Structural Engineers Association of Utah, October 2001
(http://www.seau.org/SEAUNews-2001-10.pdf).

35. Quoted in Francesca Lyman, “Messages in the Dust: What Are the Lessons of the Environmental Health Response to the Terrorist Attacks of September 11?” National Environmental Health Association, September 2003
(http://www.neha.org/9-11%20report/index-The.html).

36. “Mobilizing Public Health: Turning Terror’s Tide with Science,” Magazine of Johns Hopkins Public Health, Late Fall 2001
(http://www.jhsph.edu/Publications/Special/Welch.htm).

37. Quoted in Bollyn, “Professor Says ‘Cutter Charges’ Brought Down WTC Buildings.”

38. For the FDNY testimonies, see Graeme MacQueen, “118 Witnesses: The Firefighters’ Testimony to Explosions in the Twin Towers,” Journal of 9/11 Studies, Vol. 2/August 2006 (http://www.journalof911studies.com/articles/Article_5_118Witnesses_WorldTradeCenter.pdf): 49-123. For a brief discussion of these and other testimonies, see The Mysterious Collapse, 75-82.

39. NIST, “Answers to Frequently Asked Questions,” 2006 (http://wtc.nist.gov/pubs/factsheets/faqs_8_2006.htm), Q. 2. For discussion, see The Mysterious Collapse, 77.

40. NIST, “Letter of Response to Request,” September 27, 2007, published in Journal of 9/11 Studies, Vol. 17/November 2007
(http://www.journalof911studies.com/volume/2007/NISTresponseToRequestForCorrectionGourleyEtal2.pdf).

41. This statement (by Peter Demarco) is quoted in Chris Bull and Sam Erman, eds., At Ground Zero: Young Reporters Who Were There Tell Their Stories (New York: Thunder’s Mouth Press, 2002), 97.

42. Bartmer’s statement is quoted in Paul Joseph Watson, “NYPD Officer Heard Building 7 Bombs,” Prison Planet, February 10, 2007
(http://www.prisonplanet.com/articles/february2007/100207heardbombs.htm).

43. For documentation of these points about the testimonies of Hess and Jennings, see The Mysterious Collapse, 84-92.

44. For discussion and documentation of NIST’s treatment of the testimonies of Hess and Jennings, see The Mysterious Collapse, 92-94.

45. Letter of August 12, 2009, from Catherine S. Fletcher, Freedom of Information Act Officer, NIST, to a FOIA request of August 8, 2009, from Ms. Susan Peabody, for “[t]he complete texts of NIST’s 2004 interviews of Michael Hess and Barry Jennings, which are cited in NIST NCSTAR 1-8... , 109, n.380, as ‘WTC 7 Interviews 2041604 and 1041704.’”

46. For discussion and documentation of the BBC’s treatment of Hess and Jennings in the first version of its program, see The Mysterious Collapse, 95-99.

47. David Ray Griffin, Osama bin Laden: Dead or Alive? (Northampton: Olive Branch [Interlink Books], 2009).

48. Telephone conversation, September 1, 2001.

49. See The Mysterious Collapse, 98-99.

50. For documentation and discussion of the second version of the BBC’s show, including the problems in Hess’s testimony, see The Mysterious Collapse, 99-104.

51. See The Mysterious Collapse, 150-55.

52. For documentation and discussion of NIST’s claim about the lack of girder shear studs, see The Mysterious Collapse, 212-15.

53. See The Mysterious Collapse, 187-88.

54. For discussion and documentation of this point about failed shear studs, see The Mysterious Collapse, 217-21. As I point out in the book the contradictions between NIST’s final report and its 2004 interim report, involving the 4:45 fire and both claims about shear studs, were discovered by Chris Sarns.

55. Sid Jacobson and Ernie Colón, The 9/11 Report: A Graphic Adaptation (New York: Hill and Wang, 2006).

56. For documentation and discussion of this point about free fall, see The Mysterious Collapse, 231-41.

57. I am referring to the fact that Van Jones, who had been an Obama administration advisor on “green jobs,” felt compelled to resign due to the uproar evoked by the revelation that he had signed a petition questioning the official account of 9/11. The view that this act made him unworthy was perhaps articulated most clearly by Washington Post columnist Charles Krauthammer. After dismissing as irrelevant the other reasons that had been given for demanding Jones’s resignation, Krauthammer wrote: “He's gone for one reason and one reason only. You can't sign a petition demanding ... investigations of the charge that the Bush administration deliberately allowed Sept. 11, 2001 – i.e., collaborated in the worst massacre ever perpetrated on American soil – and be permitted in polite society, let alone have a high-level job in the White House. Unlike the other stuff ... , this is no trivial matter. It's beyond radicalism, beyond partisanship. It takes us into the realm of political psychosis, a malignant paranoia that, unlike the Marxist posturing, is not amusing. It's dangerous....You can no more have a truther in the White House than you can have a Holocaust denier – a person who creates a hallucinatory alternative reality in the service of a fathomless malice” (Charles Krauthammer, “The Van Jones Matter,” Washington Post, September 11, 2009 http://www.washingtonpost.com/wpdyn/content/article/2009/09/10/AR2009091003408.html

David Ray Griffin is a frequent contributor to Global Research. Global Research Articles by David Ray Griffin

Thursday, 22 October 2009

life in general: state elections & my vote


Results for the state elections (held about a week back) in Maharashtra, where I reside, are out. The alliance between Congress and Nationalist Congress Party has won more than 140 seats out of a total of 288 seats, followed by the 90-odd seats of the alliance between Shiv Sena (SS) and Bharatiya Janata Party (BJP).

As was the case in the general elections in Maharashtra in April this year, this time too the Maharashtra Navnirman Sena (MNS) (the group of political people headed by Raj Thackeray that split from Shiv Sena about three years back), has got many votes, a predominant part of which would have otherwise gone to the SS-BJP alliance. I have no doubt in my mind that once aged and ailing Bal Thackeray (the chief of SS) passes away in the near or far future there will be an exodus of political workers from SS to MNS and the elections after that will have a MNS-BJP-SS alliance that will make it difficult for Congress-NCP alliance to get away with anything and everything. Not that MNS-BJP will be any less worse than Congress-NCP when in power. But at least the growing arrogance of Congress-NCP will diminish.

Growing arrogance of political parties is a real threat when a particular party and its alliance partners win elections more than once. People should have voting sense and never vote for the same party twice. In Maharashtra, Congress-NCP have managed to win a majority because of the split of opposition votes betweeen SS-BJP and MNS. In Haryana, Congress found it very difficult to scrape through as it got a tough fight from INLD, an opposition party that was not affected by any split of opposition votes.

Arrogance of political parties can be easily curbed if people vote for non-party contestants. That is, independents. Independents are not free of problems but at least they are not proven dangers that most political parties are. I have written about my rationale in two posts in April (here and here).

This time around, in Maharashtra's elections, I voted for a 27-year old Ravindra Gawai, an independent contestant. Obviously, I was not expecting him to win because it is so evident that a majority of people still go out and vote for parties. He did not win.


Who won then? See the results for my constituency in the table below. A candidate from Congress, Ramesh Thakur, won. This Ramesh Thakur is a sophisticated thug who has grabbed land illegally and who runs illegal mining operations in the hills adjoining the forest area in my constituency and surrounding areas. People voted for Congress having images of Sonia Gandhi, Rahul Gandhi and Manmohan Singh in mind and ended up giving way too much political power to a thug in their own backyards! Extremely unfortunate.

Table of the results of my consitutency taken from http://eciresults.nic.in/ConstituencywiseS13160.htm


Maharashtra - Kandivali East
Result Declared
Candidate PartyVotes
THAKUR RAMESH SINGHIndian National Congress50138
JAIPRAKASH THAKURBharatiya Janata Party38832
PAWAR VINOD TUKARAMMaharashtra Navnirman sena24091
BANSODE RAVI BHIKAJIBahujan Samaj Party950
HARIHAR KALIKA YADAVRepublican Party of India (A)644
GURUDAS RAMDAS KHAIRNARIndependent574
SANCHIT SUBHASH BORADEIndependent574
MD. SALIM HASHAM BUKHARIIndependent295
SHAIKH FAIYAZ AHMEDIndependent221
NAMDEO CHANDRARAO KAMBLEIndependent187
ARUN K. KADAMIndependent176
GAWAI RAVINDRA UTTAMIndependent144
Last Updated at 3:48 PM On 22/10/2009

Tuesday, 20 October 2009

life in general: look up! far far up!

There is so much vastness in our universe. There is so much happening out there in space, far far away from our Mother Earth, that should at the very least make us acknowledge it.

Below are (just two of many) pics (original link1 and link2) taken by Hubble space telescope, followed by their description (taken from here and here) in recent years. I just love watching these photos every now and then.

Here they are (click on them to see them enlarged & clear):

1]



The 'Ghost Head Nebula' is one of a chain of star-forming regions lying south of the 30 Doradus nebula in the Large Magellanic Cloud. Two bright regions (the 'eyes of the ghost'), named A1 (left) and A2 (right), are very hot, glowing 'blobs' of hydrogen and oxygen. The bubble in A1 is produced by the hot, intense radiation and powerful stellar wind from a single massive star. A2 has a more complex appearance due to the presence of more dust, and it contains several hidden, massive stars. The massive stars in A1 and A2 must have formed within the last 10 000 years since their natal gas shrouds are not yet disrupted by the powerful radiation of the newly born stars.
Credit: ESA, NASA & Mohammad Heydari-Malayeri (Observatoire de Paris, France)

2]

The Advanced Camera for Surveys (ACS) aboard the NASA/ESA Hubble Space Telescope has used a natural 'zoom lens' in space to boost its view of the distant universe. Besides offering an unprecedented and dramatic new view of the cosmos, the results promise to shed light on galaxy evolution and dark matter in space. Hubble peered straight through the center of one of the most massive galaxy clusters known, called Abell 1689.

For this observation, Hubble had to gaze at the distant cluster, located 2.2 billion light-years away, for more than 13 hours. The gravity of the cluster's trillion stars " plus dark matter " acts as a 2-million-light-year-wide 'lens' in space. This 'gravitational lens' bends and magnifies the light of galaxies located far behind it, distorting their shapes and creating multiple images of individual galaxies. Credit: NASA, N. B

enitez (JHU), T. Broadhurst (The Hebrew University), H. Ford (JHU), M. Clampin(STScI), G. Hartig (STScI), G. Illingworth (UCO/Lick Observatory), the ACS Science Team and ESA

Monday, 19 October 2009

life in financial markets: self-inflicted powerlessness

Since the last 10-12 years, as I have been covering the financial markets as a journalist, I have noticed that stock exchanges and depositories do not use the full force of their rules, regulations and bye-laws to reduce incidences of fraud or serious negligence by their member brokers and depository participants (the intermediaries).

There is a mix of two reasons -- one, their own lack of willingness and two, the capital market regulator's (Securities and Exchange Board of India's) un-spoken arrangement with them that they pass on suspect cases to itself and it will take action. The second factor leads to a monopolisation of regulatory power and that, according to me, is not good. Sebi is not at all an efficient and honest regulator. More often that not, it goes after the small fish or the wrong ones! The big ones and the real brainchild behind fraud and scams are very very rarely caught.

Anyway, I wrote something (in the magazine I presently write for) on New York Stock Exchange's recent against its brokerage firm, Citigroup Global and compared that with the Indian scenario. Here it is:

Revelation

When the New York Stock Exchange, on 7 October, transparently levied hefty fines on three of its member-broker firms, including Citigroup Global Markets, for market rules violations it was an implicit message to its Indian counterparts to get similarly transparent and tough.

Citigroup paid a consent term amount of $150,000 to NYSE for violating the cut-off time restrictions on 'market on close' orders and 'limit on close' orders several times during 2007 and this year.

The National Stock Exchange and the Bombay Stock Exchange have never made public any penal action taken against any of their broker-members for rules violations. The Securities and Exchange Board of India (Sebi) does take such action but under consent orders filed by intermediaries to settle these cases, Sebi does not disclose the details of the violations.

No details of violations such as date or dates and trades are revealed in Sebi's consent orders using which market intermediaries are able to hide their spurious actions under the carpet. A leaf from NYSE's book is, therefore, worth taking.

Wednesday, 14 October 2009

life in general & financial markets: dangerous hypocrisies of capitalists

Any human violence is harmful. But violence can be of two types -- one, physical that injures humans and properties and two, the silent, subtle manipulation of state of affairs that brings about loss of human rights and dignity for the victims.

Acts of Naxals in India can be deemed to be the first type and the acts of Indian central government (particularly P. Chidambaram, Manmohan Singh, Kamal Nath, Montek Singh Ahluwalia) and state governments (of Orissa, Jharkhand, West Bengal, Gujarat, Maharasthra, Goa, Haryana, Madhya Pradesh, Chattisgarh, Assam, Arunachal Pradesh etc) is of the second type with an element of physical intimidation of the first type.

The recent violence by Naxals is deplorable. Also deplorable is the fact that the Indian government is going after Naxals purely because of pressure from companies such as L N Mittal's Sterlite/Vedanta, Korea's Posco, Tatas, other multi-nationals etc to make it easy for them to set up projects (that violate all basic human rights conditions and ecological norms) in remote areas to dig, mine or set up large factories. Chidambaram is clearly a corporate crony and that is exactly why he was made the Home Minister in the last government and again when the same government came into power this March.

Development is just an excuse to grab land for companies who will then make electricity, goods etc which will be consumed in urban India and other countries. Such capitalists are an insult to true capitalism that says that governments should not interfere in the free play of property rights and competition in trade. Why then do companies worldwide manipulate governments to seek tax favours and other cruel interventions against poor people living in remote areas?

Why aren't the property rights of these poor & un-influential, whether individual or collective (of a community or a tribe) respected by industrialists, politicians and civil-service-bureaucrats? Their machinations and double-standards disgust me completely. As a journalist, I know, for a fact, that they also manipulate very senior editors in the media (print, TV and internet) to carry forward their ugly agenda. The affluent citizenry, in the meanwhile, continue to remain steeped in their excessive consumerism.


Tehelka's Shoma Chaudhury has written an insightful piece on the issue of Naxalite violence in a recent issue of Tehelka. Below are some excerpts from it:

Here goes:

From Tehelka Magazine, Vol 6, Issue 39, Dated October 03, 2009

...Over this past year, the Home Ministry has been planning a major armed offensive against the Naxals, particularly in Chhattisgarh. According to reports, the plan involves stationing around 75,000 troops in the heartland of India — including special CRPF commandos, the ITBP and the BSF. Scattered newspaper accounts have spoken of forces being withdrawn from Jammu and Kashmir and the Northeast; there is also talk of bringing in the feared Rashtriya Rifles — a battalion created specially for counter-insurgency work — and the purchase of bomb trucks, bomb blankets, bomb baskets, and sophisticated new weaponry. Minister Chidambaram has also said that if necessity dictates, he will bring in the special forces of the army.

The decision to launch such a massive armed operation on home ground — due to start this November — should have triggered animated political, civil society and media debate. But Operation Green Hunt — as the offensive is being termed — has been gathering force in almost complete silence. Prime Minister Manmohan Singh and Home Minister Chidambaram have variously called Naxals — or “Maoists” — “the gravest threat to India’s internal security.” Perhaps a military offensive against them is the answer, but is it the only answer? Is it the best answer? Will it provide a solution? Who will be impacted by this offensive? What will be its repercussions? Who are we really declaring war on? What are we declaring war on? Are we going into this with eyes wide open? Is there anything we should have learned from the seemingly irreparable psychological mess in Kashmir and the Northeast? These are the questions a democratic society should be asking. One can perhaps understand the well-heeled turning their back on such bleak issues. But with such a significant operation looming on the horizon, what can excuse the complete absence of debate from national political parties?

But silence, perhaps, is only the lesser worry. A few days ago, the government announced an ad blitzkrieg as part of its psychological offensive. “Naxals are nothing but coldblooded murderers” the ad screamed across all major news dailies. The visual showed a series of men, women and children brutally killed by Naxals.
......

AT THE heart of the Naxal riddle, there are three primary questions: Who is a Naxal? What is one’s position on violence as a tool of struggle? And why is Naxalism on the rise across the country?

As Kobad Ghandy proves, a Naxal ideologue, commander or politburo leader can come from any milieu. The disempowered dalits of Andhra Pradesh, the destitute tribals of Chhattisgarh, the middle-class intellectuals of Bengal or the privileged rich of Bombay. These “informed revolutionaries” function at two levels. At a political level, they do not believe in parliamentary democracy (where they see power still concentrated in the hands of the feudal upper class) and their long-term objective is to seize State power for the people through armed struggle. In this, they threaten the sovereignity of the Indian State and many humanist thinkers, including men like K Balagopal of the Human Rights Forum, who was part of brokering peace talks between the government and Naxals in Andhra Pradesh in 2004, believe the State is within its rights to confront them. “The Maoists themselves would not tolerate such a challenge if they came to power,” says he. Balagopal is also critical of Naxal leaders creating “liberated zones” where the Indian State cannot function. “If they claim to be the voice of the people, can they pursue a political agenda that injures people — either by their actions or the repercussions they invite? Does the current tribal generation of Chhattisgarh want to sacrifice itself for a utopian future that may never come?”

It is true that in this prolonged ideological war, many Naxal attacks like the horrific one on the Ranibodli police station two years ago and the more recent one in Rajnandgaon embrace brutal tactics and almost fetishise violence. Even if these attacks are against an oppressive and corrupt police, it is a nobrainer to condemn them and say one is opposed to this violence. Or that their perpetrators should be punished.

But like dozens of other intellectuals, Balagopal points out that it is suicidal to focus only on this ideological war or resort to extrajudicial means alone to quell it. Can Naxalism really be wiped out by brute counter force? If that were so, Siddhartha Shankar Ray’s crackdown in Bengal in the 70s should have nailed it for all time. But the fact is, while stories of their own coercions are true, Naxal leaders enjoy wide support because they also espouse social-economic causes and empower people that the Indian State has ignored — criminally — for 60 years. Most Naxal cadres, therefore, are not “informed revolutionaries” fighting a conceptual war: they are beleagured tribals and dalits fighting local battles for basic survival and rights. Bela Bhatia, an activist, says she met a mazdoor in Bihar who was part of the cadre. “You can call me a Naxal or whatever you want,” he said. “I have picked up the gun to get my three kilos of annaj.”

The point is, should the Indian State be declaring armed war on its most despairing people? Is there no other way to empower them and wean them away from the gun and the seduction of the ‘informed revolutionary’? When Arnab Goswami evoked the 15 dead CPM members in Bengal last week, he forgot to mention that, according to newspaper reports (since no TV channel bothered to send teams there to find out) a 10,000-strong crowd of tribals had descended on the CPM office which was stockpiling arms in Inayatpur, near Lalgarh. When his panelists tried to draw his attention to this, he scathingly dubbed all 10,000 tribals as Maoists. Should “Operation Green Hunt” then stamp all 10,000 out? And if 10,000 Maoists had attacked an office, is it possible that only 15 people would have died? What is the real truth about the attack on the CPM office last week? And why was the superintendent of police, visiting a day later, unable to find any bodies? And why were the central paramilitary forces stationed there unable to prevent any of it?

.......


As Himanshu Kumar, a Gandhian and the only human rights activist on ground zero in faraway Dantewada where Operation Green Hunt is to be launched, says, “We can all be agreed on the premise that Naxalism is a problem, but why are these poor people attracted to a politics that will end in death? Have we created such a heinous system that death is more attractive than the deprivations and humiliations this system doles out? If that is so, why should I defend this system? All that these people want is food, health care, school, clothes and their legitimate right over their land. Yet, instead of weaning them away by strengthening the democratic process, if we are going to run our democracy only on the strength of weapons, I fear we are entering a dangerous and irrepairable state. We are headed for civil war.” Men like Himanshu should know. For 17 years, he has functioned like an ICU on the edges of a wounded society, providing education and health care, painstakingly drawing tribals into the electoral and constitutional process. The government, loath to undertake the trouble, has been happy to outsource its functions to him. Yet now, it is deaf to his wisdoms.

.....

In 2006, the Planning Commission asked an expert committee for a report on development challenges in “extremist affected areas.” The committee comprised senior officers like former UP police chief Prakash Singh; former intelligence head, Ajit Doval; senior bureaucrats like B. Bandopadhyay, EAS Sarma, SR Sankaran and BD Sharma; and activists like Bela Bhatia and K Balagopal. The report submitted in October 2008 had some visionary analysis and recommendations.

“The main support for the Naxalite movement,” it said, “comes from dalits and adivasi tribals”: the element of water: the infinite constituency in which Naxal leaders swim. Dalits and adivasis comprise a staggering one fourth of India’s population, yet are disproportionately destitute and low on the Human Development Index scale. Worse, they suffer the most humiliation and indignity: the proverbial insult on injury. The report is an exhaustive anthology of the causes for rural discontent and violence — recording meticulous data and case studies — but at the heart of its argument, it places the “structural violence implicit in our social and economic system” as the key explanation for Naxalite violence. Slamming the neoliberal directional shift in government policies, it urges a “development centric” rather than “security centric” approach to the Naxal problem.

Curiously, three years earlier in 2005, human rights lawyer Kannabiran had written a letter to Dr Manmohan Singh reminding him of his own report as a Planning Commission Member in 1982 and one written by Pranab Mukherjee in 2002 that had come to the same conclusion. As Bela Bhatia says, “With all this insight and understanding already with them, it is completely mystifying why they should go against their own intuition and recommendation and take a security-centric route. Actually,” she adds, “it is not mystifying. It only makes the character of the Indian State more clear.”

This ‘character’ gets even more depressing when you know that barely a week ago, on 15 September, Arjun Sengupta, former economic adviser to Prime Minister Indira Gandhi also wrote that “Naxalism is a cry that must be heard”. Responding to Dr Manmohan Singh’s admission that despite the State’s best efforts to contain the “Naxal menace”, violence was still on the rise, Sengupta wrote powerfully, “It is important to understand why this is so and in what sense Naxalite violence is different from other violent outbursts. Although it has always expressed itself as a breach of law and order with violence, murder, extortion and acts of heinous crimes, it may not be prudent to think of every protest movement of the disaffected people as a simple issue of law and order violation, and calling for its brutal suppression. This form of extremism, indeed, goes beyond law and order, fanning some deep-seated grievance. We must try to resolve those problems first, as otherwise the violence will remain insurmountable.”
image

(Way back in 1996, Justice MN Rao of the Andhra Pradesh High Court had also remarked in a judgment, “While left wing extremism is viewed as a problem by the administration, it is increasingly being perceived as a solution to their problems by the alienated masses.” Why is this so? That’s a question every self-styled jingoistic nationalist must ask themselves.)

As Sengupta reminds the prime minister, he is right to fear that Naxal violence will raise its head again and again, because at its heart is the deeper structural violence that our democratic Republic refuses to address: a violence that forces 77 percent of Indians to live on less than Rs 20 a day while 5 percent enjoy lives that border on obscene excess.

Structural violence: that’s an imaginative vacuum. For most urban Indians, the lives of tribals and dalits has no meaning, no face, no flesh. Our books no longer write of it, our films no longer evoke it, our journalists no longer cover it. It’s not just the poverty; it’s bumping into a face of the Indian State you have never seen before: brutal, illegal, rapine, pimped out to serve the interests of a few. Unless one travels into the silent smoky hole in the heart of this country — the remote jungles of Chhattisgarh, Orissa, Jharkhand, Andhra Pradesh; the desolate corners of Uttar Pradesh and Bihar and Rajasthan, one cannot feel the dread of this question: How will Operation Green Hunt solve this? You might stealth-march a mythic army of COBRA commandoes into this imaginative vacuum, but how will that dissolve the “two categories of human beings” our nation has created? Operation Green Hunt may kill several hundred ‘informed revolutionaries’ and several thousand of the despairing poor who have taken up arms, but how will it address the birth of new anger — anger born out of bombing an old wound?

.....


ONE OF the key architects of Operation Green Hunt, Home secretary Gopal Pillai sits in a giant office in powerful North Block. At first meeting, he doesn’t seem the average cynic you expect Indian bureaucrats to be. An amiable, thoughtful man, he says he’s seen long years of service in the Northeast and knows what a security-centric approach can do to a people, how it can trigger a world of smoke and mirrors where nothing is what it seems and everyone is chasing someone’s shadow. He seems open and ready to listen. More, he is full of surprisingly honest admissions: Manipur is a society in collective depression, he says. Yes, raising the Salwa Judum in Chhattisgarh (which human rights activists have been crying hoarse about) was wrong; yes, the Naxals have often taken up causes and done work that the government should have. But, he adds, their violent disruptions are a real deterrence for governance. You have no argument with that.

According to him, then, Operation Green Hunt is being planned as a kind of “area domination”. “We want to take back control of the land; but we will only fire if we are fired against,” says he. “Lalgarh is the model; we want no collateral damage. Our real success will be in restoring civil administration in this area. PDS, mobile medical vans, stronger police chowkis, schools – that’s our goal.” You feel eager to believe him.
MANMOHAN SINGH AND PRANAB MUKHERJEE HAVE BOTH HEADED REPORTS URGING DEVELOPMENT CENTRIC APPROACHES TO NAXALISM

Part of the problem of administering the tribal villages in the jungles of Chhattisgarh is that they are lonely and farflung; also few in the district or political administration know the tribal languages. Operation Green Hunt has been long in the planning. Battalions of CRPF men and para-military forces across the country are being given crash courses for the impending operation. The Centre has sanctioned 20 new schools in jungle warfare; invited crores worth of bids for military equipment. Is there a similar hot-foot programme for training, sensitising and incentivising the civil administration? you ask. Has he invited civil society activists in the region for their inputs? Mr Pillai has a sudden shocked moment of self-recognition. No, he admits, and scribbles “training” and “dialogue” on a yellow notepad.

There is a month to go before Operation Green Hunt is launched. A familiar despair sprouts: the gap between stated intention and action. And miles of paper and good advice gathering dust in the Planning Commission.
image

TODAY, THE biggest riddle for anybody concerned about a just and equal world is the dilemma of violence as a tool of political struggle. When the government shows such poor intention, when it is completely deaf to peaceful people’s movements like the Bhopal gas victims’, or the tribal resistance to bauxite mining in Niyamgirhi, or the Narmada Andolan, is one justified in asking the poor to defang themselves, unless one is willing to step out of one’s comfort zone and share their lives of helpless status quo?

Should one distinguish between Naxal violence and spontaneous rural violence? Yet, in a democratic society, how can violence of any kind be condoned? Where does that leave democratic practice?

Despite these internal tussles, contrary to what Arnab Goswami asserts, almost the entire human rights community is agreed that not only is Naxal violence to be condemned, but subdued. Increased and international access to weaponry has led to escalating violence. As Prakash Singh, a widely respected retired police chief, says, “The Naxals used to move in dalams [cells] of 20. That’s gone up to a 100. They have sophisticated weapons and their attacks have become more brutal. We have to show that such armed insurrection will not be tolerated.”
NAXALS ARE OFTEN GUILTY OF BRUTAL VIOLENCE. THEIR STRUGGLE TO SEIZE STATE POWER THREATENS INDIA’S SOVEREIGNTY

The disagreements arise over strategy and efficacy. A top security expert who wishes not to be named but is generally considered a hawk, for instance, has serious doubts over Operation Green Hunt. Ironically, he voices the anxiety of a wide range of human rights activists. “To attempt this kind of an action by police forces against your own land and people is a dangerous trap,” says he. “We usually reserve such operations for hostile territory. The police is supposed to go after particular individuals – say, Ram Lal, a criminal. But in an operation of this kind, you don’t even know who Ram Lal is, it is very difficult to know who he is or get accurate intelligence on his movements. You might end up killing Ram Lal’s relatives or his whole village. And if you don’t hold inquests, you’ll never know who you killed.”

Kashmir and the Northeast are bleeding, painful reminders: once paramilitary forces or the army moves in, you can never really withdraw. No bureaucrat or military strategist or powerful minister can control the vicious logic of paranoia, fake killings, genuine mistakes and revenge that sets in. When friend and family can be an informer, everyone is an enemy.

Already, this helpless cycle has started to turn in Chhattisgarh. Last week, in the first of its assaults, a company of 100 COBRA commandos set off to destroy an alleged Naxal arms factory in Chintagufa area. They were caught in Naxal fire. Seven COBRAs were killed. In turn, they claimed to have killed nine Naxals (whose bodies they say they have) and many more they claim the Naxals dragged away. The government has tried to pass this off as a big triumph. But the deadly smoke and mirrors game has already begun. Villagers claim the COBRAs made no kills and had dragged innocents out of villages to tot some up, among them an old man and woman. Chhattisgarh DGP Vishwaranjan does not help matters by refusing to answer questions: “I don’t have any details,” he says. An odd answer for a DGP. Plus, there’s the wound of six COBRAs dead in the first sortee.

As Operation Green Hunt kicks into top gear, all these problems will magnify. The hallucinations of the impregnable forest. Extremists who disappear, leaving villagers to bear the brunt of the commandos’ ire. Paranoia within and without, revenge and, as in the Salwa Judum, innocent tribals caught between the fury of the Naxals and the fury of the State.
TODAY, THE BIGGEST RIDDLE FOR ANYONE CONCERNED ABOUT A JUST WORLD IS THE DILEMMA OF VIOLENCE AS A TOOL OF POLITICAL STRUGGLE

Pressure will create equal and opposite counter pressure. Prime Minister Manmohan Singh can’t seem to grasp this simple physical equation. The impact of the Salwa Judum was to drive more tribals into the arms of Naxals. Operation Green Hunt promises to set the place on fire. When Binayak Sen spoke against the Salwa Judum, he was jailed. Now, when Himanshu Kumar is warning about impending civil war, no one is listening.
image

“Not commandos. Send in health workers and schoolteachers protected by the CRPF,” pleads he. “Show the tribals hope and they will choose life over death.” But the weight of his voice does not sway even a mote of dust in the corridors of the Home Ministry.

THERE IS one final silent piece in the escalating Naxal violence that has gripped the country: neo-liberal land grab and tribal rights. It is no coincidence that a majority of the Naxal leadership today is from Andhra Pradesh. According to journalist N Venugopal, the roots of this go back to the Telengana Movement of 1946-51, which was abruptly withdrawn by the Communist Party. In the Andhra Second Five-Year Plan (1956), 60 lakh acres of surplus land was identified. Yet by the time the Land Ceiling Act was passed in 1973, and enough concessions had been made to rich landowners, the State said only 17 lakh acres of surplus land was available, and it distributed only four. Land, livelihood and liberation was the clarion call then. Still driven by that unfulfilled aspiration, most leaders today are from the families of the ‘46 – ’51 movement.
‘THIS OPERATION IS A DANGEROUS TRAP,’ SAYS A SECURITY HAWK. ‘YOU ARE LOOKING FOR RAM LAL, YOU’LL END UP KILLING HIS RELATIVES’

EAS Sarma, former Commissioner of Tribal Welfare and former secretary, Expenditure and Economic Affairs, unlocks the real heart of the matter. “I am totally against violence of any kind and a firm believer in democratic process,” says he. “But Left extremism is a secondary issue. How many tribals even know there is a government? Their only experience of the State is the police, contractors, and real estate goons. Besides, the Fifth Schedule of the Constitution grants tribals complete rights over their traditional land and forests and prohibits private companies from mining on their land. This constitutional schedule was upheld by the Samatha judgement of the Supreme Court (1997). If successive governments lived by the spirit of the Constitution and this judgment, tribal discontent would automatically recede.”

Mr Sarma is probably right. Human rights activists have long argued that the real intention of the Salwa Judum in Chhattisgarh was to capture tribal land — brimming-rich with minerals — and hand it over to private companies. The fact that 600 tribal villages have been evacuated in the last few years gives credence to this theory. If tribals no longer live on that land, the inconvenient Fifth Schedule of the Constitution will not apply.

Given that the Supreme Court directed that the Salwa Judum was to be dismantled, perhaps, Operation Green Hunt is the second lap. In any case, whether for ill-intention, poor execution, or unplanned collateral damage, there is much to fear in the impending operation.

In the meantime, we would all do well to read the Fifth Schedule of the Constitution.

WRITER’S EMAIL
shoma@tehelka.com
From Tehelka Magazine, Vol 6, Issue 39, Dated October 03, 2009

Tuesday, 6 October 2009

life in financial markets: lic -- the elephant every one wants to...

The story goes about six blind men and an elephant. Each one inspects a different part of the elephant and comes to different conclusions on the kind of animal it is. The big picture isn't discernable in the case of a mammoth animal that the elephant is.

The story of the largest domestic institutional investor in the country, the Life Insurance Corporation of India (LIC), and the participants in the Indian securities market is similar. LIC means different things to different people.

Number crunching brings out some of the different insights being sought after by different people. Here goes some interesting analytics on LIC (kindly click on the images below to see them clear and enlarged):






































Saturday, 3 October 2009

life in financial markets: takeover norms' double whammy for investors

It is is not the first time that I have come across an incidence of a clever twisting of logic, or a cunning interpretation of law, by an appellate authority that hears appeals to orders passed by a enforcement authority. To make it worse, the law enforcement authority itself attempts to keep specific provisions of the law ambiguous enough to allow for discretion by their officials.

I noticed this recently in the financial marketplace with regard to Indian securities market regulator, Securities and Exchange Board of India (Sebi) and the securities market appellate body, Securities Appellate Tribunal (SAT). SAT was hearing an appeal (among many it hears every day/week/month) by Tata Tea against a July 2007 Sebi order, invoking its Sebi (Substantial Acquisition of Shares and Takeovers), in the matter of Tata Tea's acquistion of a company called 'Mount Everest Mineral Water.'

SAT ruled in favour of Tata Tea on 15 September. You can read the order uploaded here [it is not possible to link to the order on Sebi's user-unfriendly (deliberately, in my view, to deter easy research into its activities) website].

SAT gave the benefit of doubt to Tata Tea thereby ruling against investors' interest. At the same time, it upheld Sebi's right of discretion in the matter under dispute. Giving discretionary powers to Sebi, particularly where a concise elaboration of conditions can take out the need for such discretion, is not healthy.

Anyway, I recently wrote about the matter in the magazine I presently work for. Here is what I wrote:

Discreet

Even as the Securities and Exchange Board of India (Sebi) has set up a committee to entirely review its takeover norms, pending tussles between companies and Sebi's norms continue.

Problem areas in Sebi's takeover norms were yet again highlighted in a recent verdict by Securities Appellate Tribunal (SAT) on an appeal by Tata Tea against a Sebi order that it add Rs 9.64 to the Rs 140 per share 20% stake-acquiring open offer made to shareholders of Mount Everest Mineral Water (MMEM) in July 2007. This was due to non-compete payment by Tata Tea to MMEM's promoters.

SAT accepted that Sebi had discretionary powers to decide on the genuinesness of all contentions of non-compete payments and, if not, add it to the offer price in an open offer. But it ruled in favour of Tata Tea stating its non-compete payment was proper.

Discretionary powers need to be replaced with objective criteria. For instance, Sebi can fix a lower than the presently-allowed limit of 25% of non-compete fee to the acquisition amount above which acquiring company has to pay the same to target company's shareholders.

Thursday, 1 October 2009

life in general & financial markets: (part 1) excessive-consumerism-driven ugly mining

As consumers, we desire and consumer various products. A large number of these products' manufacturing process involves using of materials that come from mining of ores of iron, bauxite, aluminum and other metals.

Excessive consumerism therefore causes excessive mining. Excessive mining is ugly. It causes untold misery to local, remote people in India, Indonesia, China, African continent and other places.

More often that not, governments of these countries give land and mining rights at extremely cheap prices to mining companies. For instance, this happanes in India in bauxite mining in Orissa state.

I am hoping to sustain a series of posts on this issue. This post is part 1 and covers the country of Congo in Africa.

This recent newsreport the problems caused by mining in Congo:

DRC report denounces bad practices in mining

KINSHASA — A report for the senate in the Democratic Republic of Congo shows that the mining sector is riddled with fraud, incorrect figures and bad management that costs hundreds of millions of dollar a year.

"No state service ... is up to date to give reliable figures" on the "number of operators in the mining sector, their quality and the quantity of products exported," said the report, passed by the senate on Saturday and made available to AFP.

Products exported under inaccurate names and the underestimation of weight are aspects of the industry where "statistics fail to tell the whole story," according to the document, which noted how one mineral export of 33 tonnes was recorded "as 3.3 tonnes, at the whim of an official."

The state "lost more than 450 million dollars in 2008," according to the president of the Senate commission of enquiry, David Mutamba, who added that this figure was based only on available statistics.

But mineral production in the DR Congo -- which has 34 percent of world reserves of cobalt, 10 percent of copper and plentiful supplies of gold, diamonds and uranium -- should cover more than half the country's budget receipts, according to the senators.

The report blames bad management at the top level of government, stating that the ministries of mining and finance charge much too little for mining concessions, "in flagrant violation of the constitution and the law, to the detriment of the public treasury."

Senate investigators found that "80 percent of mineral ores are fraudulently exported" in the eastern provinces of the DR Congo, where rebels and armed groups are active.

In the diamond-rich central Kasai Occidental province, local authorities "stand by powerless during unprecedented pillage by numerous national mining exploiters or by foreigners guarded by uniformed men."

The lack of equipment, run-down infrastructure and poor rates of pay for civil servants and mining industry employees all help to explain why the mining sector is a mess.

The report gives the example of the directorate of mines in Kinshasa, which is responsible for statistics, but only has a "single, antiquated computer with a very low capacity." There are also no archives.

The Senate team recommends a revision of the mining code of 2002, since some of its clauses are judged "inefficient," like the "disorganised distribution of mining rights across the territory."

A total of 4,542 mining concessions were granted to 642 companies according to a count in November 2008, but "numerous operators exploit our mineral resources without abiding by the demands of the mining code," the report said.

"The services of the state know this situation, but they give the impression of being determined not to remedy the excessive growth, which is surrealistic in a state that wants to be modern."

"Even if we revise the code, we'll get the same results," said opposition senator Ramazani Baya, who stated that the management of the mining sector was "calamitous."

Senators Henri-Thomas Lokondo and Denis Engunda regretted that the Senate commission did not "give the names of the bad managers, nor those of the operators involved ... and even less (proposed) sanctions."

The pair made recommendations that will be added to the report.

Copyright © 2009 AFP. All rights reserved

Thursday, 24 September 2009

life in financial markets: good future for options

Equity derivatives has its utility for long-term/short-term investors, day/week traders/speculators & arbitrageurs.

Derivatives involves futures and options. Which among the two are better -- futures or options? If you are 100% confident of a price movement in a particular, either up or down, direction then futures are better. If you are somewhat confident but fear a potential opposite movement then buying options is better. Buying and selling options are different from buying and selling futures. The latter is similar to buying and selling shares from the cash market.

Options, when bought, give the buyer a right but not an obligation, to buy (as in a Call option) or sell (as in a Put option) the underlying. The buyer pays a premium, determined and traded in the exchange, which he never gets back, no matter what. When sold, options oblige the seller to sell (as in a Call option) or buy (as in a Put option) if the buyer exercises the option. The seller receives the premium that is her's for keeps.

So, buying options entail keeping all profits and limiting the maximum loss to the amount of premium paid in buying the option. Selling options entail taking unlimited risk of loss and getting to keep a maximum profit of the amount of premium received in selling the option.

So, why will anyone sell options? Generally, sellers of options do not sell options only to take a view on the movement of the underlying. Their option sale is a part of a strategy (strangle, calender spread, and many more) that involves another/multiple trade/s in cash market, futures or other tenure/strike price options contract.

There is perhaps only one condition under which you could have just an option sale and nothing else. Say, you are looking at Nifty 29Oct09 Call Options prices right now (11 am) and you see if you sell it you will get around Rs 175. The underlying Nifty is quoting at 4907 in the spot market right now. On selling this call, you will lose money if Nifty stays above 4900 on any date before 29 October when you want to square off or on 29 October, expiry date, when the trade is automatically squared off. You will gain if Nifty stays below 4900. Now, you could have sold Nifty 29Oct09 futures at 4907 instead of selling a Call option. But if Nifty is at, say, 4850, on expiry or on any day when you want to square off. You profit only Rs 50 whereas you have already profited Rs 175 by selling the Call option. The flip side is that if Nifty falls to, say, 4600, then a sold futures trade would profit Rs 300 whereas your maximum profit in the Call option sale is Rs 175.

Also, if Nifty goes up to, say, 5000 then the futures trade would have given you a net loss of Rs 100, whereas in your Call option sale trade you have lost Rs 100 in the option trade but you have already received Rs 175 as premium when you sold the Call option. So, while your profits are limited to the premium you received in your Call options sale trade your losses, though unlimited, are also less by the premium amount. In Futures sale trade you gain unlimited but the quantum of your unlimited potential loss is more as compared to the loss in Call options sale.

Anyway, I spotted a trend in Indian equity derivatives market where trading turnover in in options trades are rising to match that in futures trades. I wrote about it last month in the magazine I work for currently.

Here it is:

Refuge option

For the first time ever, options trading in equity derivatives is playing a prominent role compared to futures.The risk appetite of investors in domestic and global equity markets might have gone up with regard to making investments in the cash market from a short-term, or long-term, perspective. But the unprecedented intra-day volatility in the domestic equity market is causing those investors and traders who play the equity derivatives market on an intra-day, or inter-day weekly, basis to tweak their investing style so far.

They are increasingly dabbling in options trades on the National Stock Exchange (NSE), particularly options on the S&P CNX Nifty. From 1 July to 18 August, the options' traded value (notional) has crossed that of the futures on NSE's derivatives trading segment a higher number of times, 9 out of 35 trading sessions, than ever before.

Since their advent, the Indian equity derivatives market's trading trends has deviated from those in overseas developed derivatives markets where options trading dominates. For many years, the futures on Nifty and stocks traded much more than options on Nifty and stocks. "This began changing, and one saw trading volume in options rise rapidly, after the markets crashed during 2008 and investors' risk appetite came down sharply," says Sandeep Nayak, senior vice-president and head of private client group at Kotak Securities, a NSE-cum-BSE broker.

Aggregated for financial year, 2008-09, options trades contributed to a healthy 35.9% of all equity derivatives trades on the NSE. The current financial year's aggregate figures so far, till 17 August, has seen options' contribution to total has become even healthier at 42.2%.

Day traders, ultra short-term investors and foreign institutional investors (FIIs) are driving the change from futures to options. "Earlier, a typical day trader client of ours would trade in 20 Nifty futures contracts in the derivatives segment, but now the same guy is trading in 15 Nifty options contracts and just 5 Nifty futures contracts," says Mrugank Sanghvi, a dealer in Jagvin Investments, a NSE broker.

(click on image below to see it enlarged & clear)

The FIIs who, unlike domestic institutional investors, are allowed to speculate freely in equity derivatives, are doing alike. In recent months, of the total trades in equity derivatives, FIIs' trades make up for between 10 and 20 per cent on an average.

As per FIIs' derivatives trading data, released by the Securities and Exchange Board of India, for the first time, FIIs' aggregate trades (sum of purchases and sales) in options in August, upto the 17th, were more than their trades in futures, amounting to 56% of their total derivatives trading value. In June and July, their options trades' proportion was 41% and 49% respectively.

More than 90% of options trades are taking place in index options, primarily in Nifty options, and the balance in stock options. In futures trades, the spoils are shared roughly equally by index futures and stock futures. "The high liquidity in Nifty options is a major attracting factor for traders," says Sanghvi. "This was earlier limited only to Nifty futures and futures in select stocks."

The shift in trader preferences from futures to options, according to Kotak's Nayak, is on account of convenient trading strategies in options and synthetic stop loss trades through a combination of options and futures. The high volatility in Nifty was resulting in top loss trades (stops) in naked Nifty futures positions get triggered too often. The stops do not get triggered when done through a synthetic stop using options.

"When it comes to FIIs, we are seeing some of them sell call or put options of various strike prices and buy or sell futures to make it a delta neutral position," says Nayak. Traders, including FIIs, with views are getting hit by new information much more often in the recent weeks' dynamically shifting undercurrents in the stock market. Options contracts, therefore, acts a refuge for such times.

Whether the new trend will sustain or not is not certain, given the propensity for most brokerage firms to give to their retail investor clients recommendations on derivatives strategies involving only stock and Nifty futures. "But the phenomenon of high options trading volume is here to stay," says Nayak. Investors will be glad if Nayak is right.

Sunday, 20 September 2009

life in general: india needs to face china with courage

I would prefer not to look at human relations from the prism of nation-states. But given the unfortunate state of reality on Mother Earth that we have nation-states I have little choice but to succumb to the fact that militaries would be required to defend the borders and lands of nation-states.

In this context, last week, tensions have risen along India-China border. The media have been forthright in reporting on China's more-than-normal military incursions and firings on Indian soil (read here and here). But Indian governmental spokespersons and military spokespersons have been shamelessly playing it down by potraying it as a routine thing and not to be bothered about. The same, however, if were to be happening along India-Pakistan border strong words would already have been used by them.

In this newsreport, India's Chief of Army Staff, General Deepak Kapoor, claims Chinese military exercises are not signficant enough to be concerned about and that media is unfair in writing about the incidents (the newsreport stated 'The General dismissed media perception that the Chinese incursions were a sign of muscle-flexing by Beijing. “I do not share that at all... that is why I say at times the press has not been fair in reporting this very accurately,” he said.).

This is sad but not unexpected. With regard to China, India always has been weak-kneed. The religious zealots that would raise a hue and cry at every single opportunity against Pakistan go silent when it comes to Chinese malfeasance.

I do not think that the people of China are against the people of India or vice-versa. But China's government and military can never, I repeat never, be relied upon to be fair. Not that India has treated the people of its states on the north-eastern part like Arunachal Pradesh, Mizoram, etc with respect. On the contrary, several Indian central governments have been least concered with obscene violations of human rights in those states by Indian security forces.

But China can't be relied upon to maintain peace. Absolutely not. It is well known that it claims Arunachal Pradesh to be Chinese territory. As and when it wants to fight a war against India for whatever reasons it will use Arunachal as the starting point.

I have culled out from wikimapia the section of the India-China border and marked the hotspots. See the image below (click on it to see it enlarged & clear).



Thursday, 17 September 2009

life in general: citizens in zimbabwe denied basic rights

About last two years Zimbabwe (in Africa, in the southern part) been off and on reported up by conventional media guys. The situation there however warrants some attention from us.

Here is a Human Rights Watch press release issued recently:

SADC: Press Zimbabwe to Implement Rights Reforms
Southern African Leaders Should Urge End to Politically Motivated Abuses
August 31, 2009
Southern African leaders should stop looking at Zimbabwe through rose-colored glasses. The region's leaders need to press Zimbabwe openly and publicly for human rights reforms to prevent the country from backsliding into state-sponsored violence and chaos.
Georgette Gagnon, Africa director
(Johannesburg) - Southern African leaders should press Zimbabwe's power-sharing government to end ongoing human rights violations and to implement legal reforms, Human Rights Watch said in a report released today. Heads of state from members of the Southern African Development Community (SADC) are holding a summit meeting in Kinshasa, Democratic Republic of Congo, on September 7 and 8, 2009.
The 20-page report, "False Dawn: The Zimbabwe Power-Sharing Government's Failure to Deliver Human Rights Improvements," highlights the transitional government's lack of progress in rights reforms in the six months since it was created. The former ruling party, Zimbabwe Africa National Union - Patriotic Front (ZANU-PF), has demonstrated a lack of political will to effect change and wields more power than the Movement for Democratic Change (MDC), the former opposition party and now a partner in government. Police, state prosecutors, and court officials aligned to ZANU-PF conduct politically motivated prosecutions of MDC legislators and activists, and fail to ensure justice for victims of abuses or to hold perpetrators of human rights violations to account.
"Southern African leaders should stop looking at Zimbabwe through rose-colored glasses," said Georgette Gagnon, Africa director at Human Rights Watch. "The region's leaders need to press Zimbabwe openly and publicly for human rights reforms to prevent the country from backsliding into state-sponsored violence and chaos."
At the summit meeting, heads of state are expected to assess Zimbabwe's compliance with a number of rulings by the SADC Tribunal on illegal land seizures in Zimbabwe. President Jacob Zuma of South Africa, the organization's current chairman, is also expected to brief leaders on the progress made by Zimbabwe's power-sharing government, which has been in place since February. The government was created by a SADC-brokered September 2008 agreement, which followed a period when ZANU-PF and its allies unleashed a campaign of violence to prevent an MDC electoral win.
In its new report, Human Rights Watch urged Southern African leaders to extract concrete commitments on human rights from the government of Zimbabwe and to tie them to specific benchmarks for progress within a clear time frame. The summit meeting's participants were also urged to raise concerns about Zimbabwe's failure to enact basic institutional and legislative reforms that would guarantee the rule of law as well as fundamental rights for Zimbabweans.
"SADC leaders should stand with the people of Zimbabwe by calling for urgent reforms to address the country's political and human rights crisis," said Gagnon. "Without these necessary changes, Zimbabwe's inclusive government will continue to be built on sand."

Tuesday, 15 September 2009

life in financial markets: how currencies are faring against the US dollar

I have just done some quick number crunching on the interplay between different currencies against the US dollar from 2006 onwards.

See the graph image below (click on it to see it clear and enlarged).

During the last 3 years, the Indian rupee has depreciated against the US dollar when many others have appreciated against the US dollar. What story does it tell? Anyone?



Wednesday, 9 September 2009

life in financial markets: why not ask for a level playing field in this as well?

One often hears/reads/sees a corporate CEO or an industrialist talking of level playing field. Depending on what it pertains to, such a thing can be considered valid or not. I think barring a very few genuine cases most of them are frivolous and unfair. But on the surface they look very apt and fair. Dig a little deeper and you realise the dirty game being played.

Anyway, I was reading this newsreport on how the fraud-affected and in-prison Satyam Computer's former chief, Ramalinga Raju, is receiving excessive soft treatment. Read the entire text of the newsreport below. Now, I was wondering, whether corporate India would also seek a level playing field in the treatement given to corporate CEOs when they land in prison due to fraud. Would it not be fair for corporate India to seek that Satyam's Raju be treated like any other undertrial-prisoner in the country?

Even hardened criminals-cum-politicians receive the kind of treatment that Satyam's former chief is receiving now. When such politicians are from states such as Bihar, Jharkhand and Uttar Pradesh, many in corporate India (and I have personally experienced this) mock, and make derogatory remarks on, the favoritism accorded to these states' politicans. But, pray, tell me, what is the difference between a powerful criminal in such a state and Satyam's Raju?

Coming to the status of the cases against Satyam's former bosses, I am not surprised by the slow pace of investigations to arrive at a final conclusion in the Satyam fraud case that involved, among other things, artificially jacking up profits and siphoning off company funds for personal benefit by the company bosses. But I am apalled by the fact that even Sebi, under the chairmanship of a supposedly-tough C.B.Bhave, has been extremely slow to bring to justice the Satyam offenders under the wide ranging powers available to Sebi under the various regulations and Acts.

When Bhave was the chief of NSDL (National Securities Depository) his company was unfairly targeted by former Sebi chief, Damodaran, during the IPO scam blowout. While merchant bankers (lead managers to the IPOs) were being allowed to go scot free, Damodaran was going after the two depositories. But I did notice at that time that NSDL, under Bhave, never took any action against Karvy Stock Broking that was a DP in NSDL and which had opened over 40,000 fake demat accounts. NSDL, under its various rules and regulations, could have levied a hefty penalty on Karvy. But it never did. Of course, neither did CDSL penalise its DPs that were involved in the scam. But I expected differently from Bhave and NSDL.

Now, here is the twist. Karvy's headquarters are in Hyderabad in Andhra Pradesh. So is Satyam Computer's. Though the matters are serious I can not help but find some humour in the fact that Hyderabadis are exposing chinks in Bhave's strengths.

Here, then is the newsreport. Its shocking:
http://timesofindia.indiatimes.com/news/india/Ramalinga-Raju-is-raja-in-hospital/articleshow/4988416.cmsRamalinga Raju is 'raja' in hospitalTNN 9 September 2009, 02:02am IST
HYDERABAD: If Ramalinga Raju was the rare undertrial playing badminton in Chanchalguda prison, he now holds the
distinction of being the first prisoner to enjoy the comforts of the only VIP room in the NIMS ICCU where he is currently recuperating.
The former Satyam boss was admitted to NIMS after he complained of chest pain on Monday evening. Medical reports
stated that he was suffering from Hepatitis C and hypertension.
While the other patients' beds are divided by curtains, Raju has a separate room to himself which staffers refer to
as the 'VIP section'. The room has an attached bathroom with round the clock attention from doctors.
With his wife Nandini Raju on his side along with a few other family members since he was admitted to the hospital
on Monday night, it appears that the Raju family is having a reunion of sorts. Raju's elder son, Teja Raju, visited
his father on Monday night. There are five policemen outside his room keeping a vigil.
Raju's aides were seen hanging around the ICCU on Tuesday and even entering to meet him with the help of hospital
staff. The medical superintendent N Satyanarayana mentioned during a brief press briefing that Raju had the company
of his personal assistant in the ICCU.
At about 1.15 pm a Raju aide was seen entering the ward with two oversized basket like bags carrying food, clothes
and other items. The aide was accompanied with Raju’s counsel S Bharath Kumar’s junior who was taking in some
documents inside for Raju.
"He (Bharath Kumar) wanted Raju to go through these documents," the lawyer said. Sources said that his father-in-law
visited Raju in the morning, apart from the other visitors, later in the day, on Tuesday.
The hospital authorities even blocked an entrance which leads to the in-patient ward of the hospital on Tuesday. At
the other entry points, the security guards kept a close watch ensuring that nobody went inside without a pass, as
against the normal days when they are usually lax. Those who did not have a pass, were denied entry.

Sunday, 6 September 2009

life in general: oh gujarat!

The tragedy that has engulfed the state of Gujarat in India since March 2002 is of unprecedented proportions.

Here is Harsh Mander in Hindustan Times a few days back:

http://www.hindustantimes.com/Closure-yet-so-far/H1-Article1-448967.aspx

Closure, yet so far


Of the many failures that characterise the polity and society in contemporary Gujarat, probably the most dangerous is the unprecedented extent of the arrest and collapse of processes of authentic reconciliation, because of which wounds refuse to heal. People of diverse faiths live side by side or in segregated ghettoes but in an uneasy, warped, brittle truce, without the restoration of genuine trust and normal social and economic intercourse.

The State remains openly hostile to a segment of citizens only because they belong to a different faith from the majority, reflected in raucous and openly prejudiced sectarian taunts in speeches of senior elected public leaders. They cast aspersions on the patriotism of Muslim citizens, parody their supposedly pervasive practices of polygamy and breeding large families, decry the alleged slaughter of the cow despite deep reverence towards her by Hindus, and claim their wide sympathies with terrorist violence.

Muslim ghettoes are routinely discriminated in public services, Muslim youth are picked up almost randomly on charges of terrorism and their deaths in ‘encounters’ or extra-judicial killings are explained away by State authorities with rarely even the façade of any credible evidence of their terrorist links and the circumstances in which it became necessary for the latter to take their lives without the due process of law. Their Muslim identity is accepted as reason enough to believe that they must have been terrorists, and terrorists do not deserve the protection of law.

There are few organised social and political spaces — official or non-official — in Gujarat today, for fostering forgiveness and compassion. There is instead a frightening communal chasm, accepted or actively fostered by the powerful political, administrative, business and media establishments. This engineered divide is growing exponentially between people of different religious persuasions. An ominous subtext characterises re-engineered social relations: new realities of settled hate, settled fear and settled despair in all villages and urban settlements that were torn apart by the gruesome mass violence of 2002. Gujarat continues to be a society bitterly, and some now grimly fear, permanently divided.

After the communal bloodbath that accompanied the vivisection of the country as it seized its independence, leaving a million people dead, there have been thousands of riots, or episodes of mass clashes between people of Hindu and Muslim faith, and pogroms, resulting in the loss, according to one painstaking estimate, of at least 256,28 lives (including 1,005 in police firings). It is remarkable that despite this recurring communal bloodletting during and after the traumatic partition of the country, there has been no systematic structured official (or even significant non-official) processes of ‘truth and reconciliation’, to help perpetrators and survivors of hate violence come together; to see and speak to each other; acknowledge their crimes and failings, their hate and fear, their grievances and suspicions; to seek and offer forgiveness, trust and goodwill; and ultimately help bring closure and eventual healing.

Given the enormity of contemporary threats posed by a deliberately fostered communal divide and violence to the very survival of secular democracy in India, fuelled further by the manufactured global ‘war on terror’, it is imperative today more than ever that systematic, sustained processes of reconciliation and justice in communal relations between sporadically embattled people of diverse faiths and ethnicities in India are established.

The Indian people have arguably had more experience than most through millennia of living with diversity. Therefore, even without organised processes of reconciliation, there are usually natural spontaneous processes of reaching out and healing that follow bouts of sectarian violence. There may be debates about whether without structured modes of facilitating reconciliation for survivors of the cataclysmic Partition violence of 1947, there has been adequate closure for families that experienced the agony and permanent uprootment from and the irreparable loss of their loved ones and homeland.

My own parents and their extended families lost their homes amidst hate, slaughter and arson in a region of the country that became a part of Pakistan in 1947, and their grief of loss remains dormant more than 60 years later, just below the surface. Perhaps we needed much earlier to bring together people who lived with the violence from both sides of the border, to share truth, discover their common burdens of suffering and privation, and thereby find the spaces for individual and collective forgiveness.

In other communal conflagrations that I have witnessed and handled in small district towns as a district administrator, I have observed that within days of such mass sectarian upheavals, persons of goodwill and compassion reach out from each community and others grasp their outstretched hands gratefully. There are spontaneous individual and collective expressions of remorse and grief at the loss suffered by the other community, and of compassion, through which processes of social and personal healing set in.

By contrast, the defining feature of Gujarat after the 2002 massacre is its frozen compassion. It is the determined absence of remorse both by the State and among many segments of the people, the conspicuous absence of social and political processes of reconciliation, and a resultant persisting bitterly unreconciled divide and distrust between the estranged communities. It is not surprising, therefore, more than seven years later, that what is most scarce in the parched earth of allegedly vibrant Gujarat is reconciliation and empathy.

Excerpted from Fear and Forgiveness: The Aftermath of Massacre (Penguin)

Harsh Mander is Convenor, Aman Biradari. The views expressed by the author are personal.

Saturday, 5 September 2009

life in general: unknown urbanites' good deeds

Some urbanites can do very good deeds. A story in today's Hindustan Times illustrates a few of them from Bombay.

Here (click on the image to see it enlarged and clear; the full text of the story is also given below the image):




Every slum child cannot be a millionaire but they can certainly lead a decent and respectable life, feels Ranjit Singh (52), a lab attendant in Mithibai College.
He, in his own little ways to empower them, teaches children from Nehru Nagar slum, Vile Parle every evening.
That's not all. He has to gather the crowd himself -- eight of them who are under his tutelage currently.
He has been doing it since 25 years.
"I have seen my father toiling hard so that I could study till higher secondary level. I try to help these children till they are in Class seven," he added.
Singh's main aim is to stop children from dropping out, which is a menace in the coun, try. "I may not be able to pro- vide them with the best of facil ities but if I can do anything to prevent them from dropping out of schools, I will have served a purpose in my life," he said.
Invoking interest in studies through live experimentations and innovations is what Purushottam Kale (54) believes in.
A post graduate teacher in Jhunjhunwala College, Ghatkopar, he is trying to educate students by taking them out on excursions, organising games, quizzes and power point presentations.
"Children learn much more outside the classrooms," he said.
He is a director of an NGO called Vanaparva in Ratnagiri where he focuses on helping students earn while they learn.
He hires students from financially weaker backgrounds as clerical staff in the college to assist him on his research projects and pays them for their work.
Smita Kulkarni, who teaches Marathi IES's Modern English School in Dadar hails from a small village in Raigad district.
Kulkarni, who has been helping children in the interior parts of the state, has set up a distance-learning center called Tilak Maharashtra Vidyapeth in Lonavla from where around 25 students graduate every year.
She has also started a project called Deepastambh, which finds people to sponsor higher education of those who cannot afford it.
For Dr Nandini Deshmukh (55), who has been teaching since 25 years, inspiring talented students is the motto. A zoology teacher at Kirti College, she not only distributes encyclopedias to children in villages but also takes street children to planetarium and science centres.
"I gifted a computer to a bright student who has now topped his BSc and MSc exam.
He could have probably bought one on his own in a few years.
But he needed it the most while he studied," she said.

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