Aman Ki Asha

The Times of India the Jung Group in Pakistan used the start of 2010 to "come together to develop a stronger Track 2 in the diplomatic and cultural relations between India and Pakistan". My daughter asked me a few days back on why I was not optimistic about this initiative.

First - let me state that a new year wish list for most Indians has to include peace with our neighbour, and I am no exception. That said, one of the problems with growing older (more cynical? or sadly, more realistic)is the development of the "sense of the possible". If peace between India and Pakistan were to be possible by cultural exchanges between the peoples of the two countries, we would perhaps have had peace a few decades ago.

The reality is that the Pak army is the largest economic power in that country, and, finally, all politics is an outcome of economics. For the Pak army to maintain its pre-eminent position in Pakistan, it must have an enemy that rallies its "subjects" - the people of Pakistan. India in currently the only country that can fill this need. Attacks against India are a given - only the timing is in question.

If I seem like a war monger, see this.

A very happy, and peaceful  new year to all.

What is common between Koda and the maoists

Two recent developments - seemingly unrelated - have been hogging the headlines.

The former Chief Minister of Jharkhand is being investigated for amassing wealth beyond known means. Apparently, this money was earned through handing out mining rights. The interesting question to ask is - since mining has not started in most places, how was the money made - clearly, through the "sale" of the mining rights. Who paid? Surely those that benefited most - those who received these rights! Is it not strange that none of these companies are being investigated? Now you know why Indian Steel companies claim to be among the lowest-cost producers of steel in the world.

Almost simultaneously, the Central Government has started an aggressive campaign against the maoists. Maoist activity is undoubtedly a big problem in India - and has been for several decades. So why the thrust NOW? Has it anything to do with the fact that corporate India's new mines are in maoist infested areas? There was need to make these areas safe for mining. Hence the appointment of the redoubtable Mr. Chidambaram (formerly a director on the Board of Sterlite - one of the largest resources companies in India) as Home Minister, and the drive against Maoists under his leadership.

India's problem now wears corporate hues.

Aspartame

We have been working on a report about a company that markets a variant of Aspartame. In the process, I came across a series of articles on how Aspartame was approved by the US FDA. Here is one such. Don Rumsfield seems to have more than the blood of Afghans and Iraqis on his hand. Also, a gentle reminder that when it comes to corruption, Indians are not an exception, we follow the rest !

Read more here.  Corporates have their own agenda - look at the support the horrible Nuclear policy has generated in India - and often the agenda is inimical to the interest of the country.

A similar case is what is happening with Madhu Koda... read the next post.

Cell size and scale - awesome

Genetics and Size - click HERE

Indian gold reserves

Indian Central Bank gold reserves stood at 350 tonnes at the end of 2008. With the recent purchase from IMF, it would now be in the region of 550 tonnes - taking it to 9th place after Japan. However, India has been and remains the largest importer of gold - with annual imports ranging from 300 tonnes to 600 odd tonnes for private consumption. Barring the time from 1962-1992 when gold imports were barred, India has constantly imported from 1933 to now. Estimates of private holding range from 16000 tonnes to 40,000 tonnes.

In this regard, this, is a very interesting blog post on gold and its history with regard to India. Though long, the post is worth reading to the end.

Gold vs some currencies

The movement of gold vs the Chinese currency and the Indian currency is interesting. China has pegged its currency to the dollar over the past few months, and India too seems to be doing the same. The world continues to want to subsidies US excesses. Why should the US consumer ever change? Incidentally gold has been a great investment since 2007 for Indian investors - our not-so-hip country cousins who continue to buy gold at all opportunities will be feeling fairly smart after all. 

Some lessons to remember

Watch the rest here

Jim Chanos: 10 Lessons From The Financial Crisis That Investors Have Already Forgotten