Work has been too tough and nerve wracking ever since i moved into the new department more than 5 months ago (ya, time flies), not to mention colleagues who are of no use to the team but somehow manage to survive at work inspite of doing nothing productive. Ya, life is a big bunch of surprises.  The ones who work are questioned when there is a lapse on their end, but some people just laze around at work and unashamedly take the salary at the end of the month and no one even bats an eyelid.

Anyways, over a period of time have steeled myself to ignore such characters and sideline them.  There are others who are enthusiastic about work and they are the ones who really encourage me to look forward to going back to work daily.

But this week off was a much needed one.  Have been doing nothing but having good home cooked food, having my regular post lunch naps, wandering aimlessly around the city, reading books on the couch and most importantly watching the financial markets melt the world over.  Watching this self inflicted wound by the US not only to itself but criminally exporting its problems to the worldwide economies is simply mind boggling to watch.  Not to mention morons like Alan Greenspan openly bragging that this debt ceiling is of no issue to the US as they can print as much dollars they want.  Now beat that.

The funniest part of the whole debt problem is the reaction from China which blasted the US for its uninhibited funding of its consumerism by debt.  But why is China so worried about the debt downgrade of the US from AAA to AA+ by S&P ?  Its because China holds more than a trillion dollars worth of US debt.  The more irony comes from the fact that just a few months ago, some so-called Chinese thinkers were threatening to dump dollars that China is holding in the form of its foreign reserves to show who the boss is.  Which makes one wonder, if China dumps the dollar, which moron in the world wants to buy it?  And if it dumps the dollar and the value of the dollar takes a nosedive further eroding the value of the reserves its holding, who is China threatening in the first place?  Its like cutting the nose to spite the face.  The whole fracas reminds me of the saying that i had posted sometime earlier in this blog….

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” – J Paul Getty

China today finds itself between the devil and the deep sea.  On one hand it needs to keep the yuan weaker by buying up all the dollars else the export oriented economy that China has carefully built up over the decades will collapse.  With thousands of riots happening countrywide, the Communist government doesn’t want another disaster on its hands.

And its not easy to make a complete turnaround of the economy from an exporting one to a local consumer led economy.  The transition takes years to happen. So, it keeps buying up dollars to keep its own currency cheaper and with the US dollar collapsing to newer lows, everyone is at their wits end trying to hold things together.

So, what to do now?  Nothing much..if you have money sit tight or start buying into blue chips in small tranches.  For the ones who sold off their equity holdings a few months earlier, i have nothing but admiration for your foresight.  For those who plan to sell during the collapse now, there is nothing more foolish decision than that.

Gold is scaling new heights daily as the US dollar loses its value.  Its gonna be a turbulent few months ahead.  Sit tight, there is much more trouble ahead.  Like the Oracle of Omaha, Warren Buffett once said…

“Its only when the tide goes out that you learn who has been swimming naked”

Pictures courtesy: Now Public, Guardian, wmpoweruser

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Defence ministry officials say the 1.13-million Army alone has planned 14 to 18 exercises with countries ranging from the US, UK and Russia to Bangladesh, Mongolia, Thailand and Tajiskistan, both at home and abroad.

For instance, the armies of Seychelles and Singapore will be in Belgaum and Deolali in January for joint combat exercises . Similar is the case with Navy and IAF. Indian warships will hold combat manoeuvres with French warships, including nuclear-powered aircraft carrier Charles de Gaulle, during the “Varuna” wargames on the high seas in January . “Indian and French navies and air forces have build a high-level of interoperability through such exercises… We have a strategic partnership ,” said visiting French chief of defence staff Admiral Edouard Guillaud.

The US, of course, is leading the charge in this “interoperability” game, with Indian and American armed forces holding a staggering 60 or so wargames over the last decade.

Many more are in the offing. After the ‘Malabar’ naval wargames on the western coast, the “Habu Nag” amphibious exercise at Okinawa (Japan) and the “Vajra Prahar” counterterrorism drills at Belgaum earlier in the year, around 200 Indian soldiers are now leaving for Alaska to take part in the “Balance Iroquois” exercise with American special forces.

Despite defence minister A K Antony always being eager to downplay the expansive Indo-US defence relationship, the armed forces of the two nations have set a scorching pace in their bilateral engagement . Of the 64 exercises conducted by the Army between 2001 and 2009, well over one-third were with the US.

“The US is the only superpower around… We learn a lot from exercising with them. With the vast counter-insurgency experience of our professional forces, we also teach them a lot,” said a senior officer.

Above news source: TimesofIndia

Pictures courtesy: Military photos, Getty

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After the leak of more than 90,000 secret documents on the Wikileaks website, more and more sordid exposure of the Pakistani leadership are coming to light.  It was always known that the rogue intelligence agency of Pakistan, the ISI, was hand in glove with Al Qaeda in Afghanistan and Lashkar-e-Toiba and many other terrorist organisations fomenting teror in India.

But what takes the cake is the ignorant America feeding the Paki army so that it can fund the terrorists which in turn stab the American and other NATO troops currently in Afghanistan in the back.  The same money that the Americans provided the Pakistani government is now being fed by the ISI and Pakistani Army back to the Al Qaeda backed terrorists who are in turn killing the American soldiers.

I wonder how the American citizens are tolerating their government feeding the same scums who are killing their soldiers. Any civilized government would have re-looked at the horrors of the backstabbing that Pakistan has been doing to their soldiers…but not the US government.  The game of strategic reach that the US likes to play so much has stretched its resources so badly that the US economy is on the verge of a collapse.  Still, it refuses to learn from its mistakes.

Inspite of the evidence put forth by the intelligence, that the biggest snake in the hole is nothing but the Pakistani Army/ISI, the Americans seem to have no qualms sharing the same bed with them.  Pakistan has mastered the art of holding a gun to its own head and threatening to kill itself.  Its time the Americans call their bluff.

If the Americans want to withdraw from Afghanistan in 3-4 years as they predict, its best for them to rein in the Pakistani Army/ISI and strengthen the Afghan govt’s hands in developing a strong defence against not only the local insurgents but also the Army/ISI.

As for India, the best thing for it to happen would be the breakup of Pakistan.  I have always believed that a strong and economically stable Pakistan is a bigger headache for India than one which is broken up into pieces.  I love Manmohan Singh and really appreciate the hard work he is putting in trying to find a peaceful solution with Pakistan.  But he doesnt realise that he is barking up the wrong tree and that Pakistan is like the dog whose tail will always be curled.  No matter what we cant straighten it.  Its not a civilized society and probably we need to wall off the borders between the two countries and cut all strategic, business and people to people ties.

According to Canada’s former ambassador to Afghanistan, Chris Alexander…

Gen. Kayani is saying he wants to call the shots in Kabul. To do so, he is prepared to support the principal outfit launching suicide attacks in Afghanistan’s cities. He is backing the Islamic Emirate’s effort to wreck an Afghan-led nation-building process.

The Pakistan army under Gen. Kayani is sponsoring a large-scale, covert guerrilla war through Afghan proxies – whose strongholds in Baluchistan and Waziristan are flourishing. Their mission in Afghanistan is to keep Pashtun nationalism down, India out and Mr. Karzai weak.

It has nothing to do with Islam, whose principles they trample; indeed, the flower of Afghanistan’s ulema (religious leaders) have been among their victims. Gen. Kayani and others will deny complicity. But as the WikiLeaks material demonstrates, their heavy-handed involvement is now obvious at all levels.

To understand the context of this fraught relationship, read a report called The Sun and the Sky: The Relationship of Pakistan’s ISI to Afghan Insurgents, by Matt Waldman, a former Oxfam policy adviser now at Harvard. It is a chilling tale. When the scale of this complicity is fully exposed, it will rank high on the list of modern scandals.

The USA seems to have no qualms cutting off all funding to Iran, North Korea and any other country that doesnt toe its line.  But when it comes to Pakistan, it strangely behaves like an Ostrich who buries its face in the sand.

Tunku Varadarajan hits the nail on the head when he says…

We are now at a crossroads with Pakistan, a point at which we need to pull out old words from the Bush playbook. It is time to state to them—to state, in particular, to Gen. Ashfaq Parvez Kiyani, the Pakistan army’s chief of staff—that Pakistan is either with us, or against us. There can be no caveats, no exit clauses, no fine print, no weasely handwringing about Pakistan’s need to retain “strategic balance” in Afghanistan.

Some more articles on the leaked documents

On WikiLeaks, Pakistan and Afghanistan; the tip of an old iceberg

Above pictures courtesy: Pakistanisforpeace & omjiyadav

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The authors of this book are Bill Bonner & Addison Wiggin who have been writing the free daily newsletter, The Daily Reckoning for more than 10 years now. The newsletter covers a lot about the daily economy, world politics, investment strategies, gold, stock market etc.  Bonner is also the founder and president of Agora Publishing.

The authors believe that the America of today has left the values of its founding fathers far behind and has become an imperial power instead of being a country.  Bonner also believes that the end of America is also coming soon.  The author talks about the dollar crisis, the coming end of the US economy. He writes about how successive US governments have gone to war and wasted all resources, the decoupling of the dollar to the gold standard, the federal reserve under Alan Greenspan with his inflationary policies totally wrecked the US economy.

Quoting from Amazon,

Bonner and Wiggin view ancient Rome as the classical model of empire. Running an empire was an expensive business; the folks in the homeland needed to be mollified with government handouts (bread and circuses), while a large military had to be maintained in the frontier. Rome used its military power to exact tribute from neighboring states; it was a protection racket, no different from the Mafia. Nevertheless, this scheme generally kept the central state solvent and the territories at peace. The United States is also an empire, Bonner and Wiggin maintain, but it does not follow the classical model. It placates its citizens with massive distributions of government largess while using its powerful military to exert influence and keep peace abroad. However, “[i]nstead of getting paid for providing protection, the United States is on the receiving end of loans from its tributary states and trading partners ” (p. 77). This is how the United States became the Empire of Debt.

Empire of Debt: The Rise of an Epic Financial Crisis
Authors – Bill Bonner & Addison Wiggin
Pages – 384
Publisher – Wiley

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“There is a drop both in the number and the quality of Ph.D. applications, more noticeably in the last two years.” says Anand Sivasubramaniam, professor of computer science and engineering, Pennsylvania State University (Penn State). “This year, of the more than 700 applications we received from prospective graduate students worldwide, the number of applications from top Indian institutes such as the IITs and IISc was in the single digit. Less than three years ago, this number was in the double digits,” he says. An article this February in The Chronicle of Higher Education reported a 50 percent decline in the number of new Indian graduate students this Autumn at the University of Georgia. The computer science department at California State University (Long Beach) saw a spate of prospective master’s students from India abandoning their application process midway.

“It’s the beginning of a trend, an indicator that something is happening and that Indian students are not coming here like they did in the past,” laments Dr. Nathan Bell, director of research at the Council.
You don’t have to look far to find the reasons for this. With the US economy in a shambles, there are severe budget cuts at state-funded universities. The prospects of obtaining a full waiver of tuition fees are slim. Dwindling grant money also means that local students stand a better chance of getting a research fellowship than foreign students. So, many Indian students end up working for free. Last semester, Atulya Prasad, a master’s and Ph.D. candidate in biomedical engineering at New York’s Stony Brook University, worked as a research assistant sans the stipend.

The situation doesn’t improve upon graduation. The growing political backlash against the loss of American jobs, and the rising anti-immigrant sentiment means that getting a work visa — let alone getting a job — is as tough as it can get. So much so that now, even the lure of a US-located son-in-law is starting to fade. “The classic America-educated son-in-law syndrome is almost nonexistent as students, especially from tier 2 schools, hardly get jobs in the US after they graduate,” says Satyavrata Samavedi, a Ph.D. candidate in tissue engineering at the Virginia Institute of Technology (Virginia Tech).

Full article here

Above picture courtesy: Associated Content

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It must be quite idiotic of the Obama administration to even believe that F-16 fighter planes that the Pak government is demanding will be used against some Taliban militants in the Af-Pak border.  Though i respect the fact that Pakistan is a sovereign nation and that its right to have military deals with any country shouldn’t be complained against as long as they don’t breach the international laws.  The same right for India to play the carrot and stick policy with the seller (USA) should be complained against either.

While Pakistan may have pitched hard with the US for early transfer of F-16 fighter aircraft and other sophisticated     military equipment, a concerned India is learnt to have raised the stakes by indicating to the US that such a     transfer may not go down well at a time when two US companies are bidding for the 126 multi-role combat aircraft tender floated by India.

This $10 billion-plus tender is considered one of the biggest international military contracts in the world now. At     present, six companies are in the fray: F-16 from Lockheed Martin (US), Boeing’s F-18 SH (US), Eurofighter from a     European consortium, the Rafale from France, the Swedish Gripen, and Russian Mig-35.

Most trials are over with the IAF planning to shortlist contenders on the basis of their performance in the next few     months.

Pakistan has been in negotiations with the US on obtaining 18 F-16s for the past few years. However, this has been     riddled by fears of it being used only to strengthen its military capabilities against India and not justifiably     needed in the war against terror.

Full article here

Above pictures courtesy:  Air Attack & Schema Root

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Years ago Donald Rumsfeld and Dick Cheney laid the foundations of outsourcing the critical logistics of the American military machienary.  Dick Cheney as the head of Halliburton and Donald Rumsfeld as the person who created the policies necessary for the same.

Today Halliburton-KBR (Kellogg, Brown & Root) which was later on split into two different companies, Halliburton and KBR are the main ones who run the logistics of the American military.  In the process they have totally corrupted the procedures and have billed the American public billions of dollars of fake expenses.

Pratap Chatterjee goes into great detail as to how the Halliburon-KBR combine came about, how it managed to entrench itself into all the contracts of the military logistics, its transgressions, fake billing, over billing, wastage of food, resources, blatant human rights abuses, rapes of its female employees, usage of foreign nationals in war zones with no safety equipment, their exploitation etc.  Its a disturbing read of how in this age of free and available information, all these details have been hid from the public in general.

The book is in the markets for a few years and the fact that it hasnt been challenged or sued is a sure indication that the author has got his facts right and that he has evidence to prove all accusations he presents in the book.  Even though Halliburton-KBR might reject the author’s claims, it does recognise the rot that infests the organisation.

Chatterjee (Iraq Inc.) delves into the nebulous world of the Houston-based Halliburton corporation, tracing the company to its roots, when a fortuitous meeting with a young Lyndon Baines Johnson propelled the Brown and Root Company (which later merged with Halliburton) into Washington power politics. The author details the military contracting that largely funded the company through WWII and into the present-day war in Iraq, intertwining the company’s history with the biographies of Dick Cheney, Donald Rumsfeld and other officials in the Bush administration. Chatterjee provides a laundry list of abuses for which the company has been investigated, including inflated billing of the Pentagon, providing unsafe living conditions for U.S. soldiers, labor exploitation and coverups to avoid congressional inquiry. He concludes with a look at the whistleblowers that brought these scandals into the public eye and the repercussions of the eventual congressional investigation. Chatterjee keeps the pace of the narrative at a quick clip and nimbly marshals his extensive evidence to reveal—without sanctimony or stridency—Halliburton’s record of corruption, political manipulation and human rights abuses.

“Halliburton’s Army” begins citing how $5,000/day oil-well fire-fighters were brought in, despite the Kuwaiti’s offering to do the job for free out of gratitude for Gulf War I and concern for their own environment. The situation rapidly deteriorated – potential whistle-blowers demoted or other wise threatened, overheads running 43-55%, overcharges for fuel – $2.64/gallon, vs. a local Iraqi source at .96/gallon (or even an internal Defense Dept. source at $1.32/gallon), splitting contracts to avoid bidding requirements associated with large dollar amounts, billing for hours not worked, ordering multiple items when just one was needed (cost-plus!), serving overpriced and sometimes outdated food to non-existent troops, failure to treat water with chlorine, using very-high-priced suppliers, electrocuting troops via improper electrical work, failing to pay required disability benefits to those injured on the job, etc.

Source: Halliburton’s Army Amazon page

Halliburton’s Army: How a Well-Connected Texas Oil Company Revolutionized the Way America Makes War
Author – Pratap Chatterjee
Pages – 304
Publisher – Nation Books

Thomas Friedman & Bill Bonner

In his article, The Long and Short of China, Bonner goes hammer and tongs at Thomas Friedman saying…

Oh happy days are here again. Obama is going to get our money back from the banks. Jeffrey Sachs is telling Haiti how it can get its economy back in order (with other people’s money, naturally). And Thomas Friedman is offering investment advice.

This should be fun. We’re all on the bus…and it’s driven by the blind, the deaf and the very dumb. Oh, sorry, we meant the visually impaired…the hearing impaired…and the mentally deficient.

Friedman is, as we all know, full of advice on just about everything. He advises finance ministers on how to soup-up their economies. He advises the Arab world on how to update its religious institutions. He advises whole nations on how to improve the future before it happens.

And here he is now counseling Mr. James Chanos, noted short seller, on how to make money

Big egos are at play here.  But its not to discount the value of the words being spoken here.  Bill Bonner, Thomas Friedman and James Chanos are all good at what they do.  They have built up a career full of backing their claims with the work they have done.

Last word on whether China is a bubble or not is yet to be spoken.  Meanwhile, Thomas Friedman finds another supporter in Keith Fitz-Gerald of Money Morning.

Above pictures courtesy: Theteemingbrain, Cityfile & Stockopedia

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Often referred to as a “sleeping giant” in scientific literature, India seems to be waking out of its slumber, says a recent global research report on “Research and Collaboration in the new Geography of Science” by Thomson Reuters.

As per the report, Chemistry and Pharmacology are fast becoming the most “published” disciplines in India; USA remains its largest research partner even as South Korea is racing ahead of China to partner with India. And Japan’s University of Tokyo collaborates most frequently with Indian researchers.

If the current trajectory continues, the study estimates, India’s productivity would well be on par with that of most G-8 nations within eight years and could even overtake them between 2015-2020.

In a testament to its strength in information technology, computer science accounted for the highest increase in world publications from India between 1999-2003 and 2004-2008, increasing by more than 100%. When it comes to research, India’s strength lies in Chemistry and emerging sectors like pharmacology, microbiology and traditional agricultural sciences.

Between 1993-2003 and 2004-08:

• In Chemistry, India’s research output increased from 21,206 world publications to 33,504

• From a 2.8 per cent share of the world output in pharmacology and toxicology, India’s share is up to 4.25 per cent

• Output in engineering rose from 2.69 per cent to 3.57 per cent

• Microbiology saw publication output rise from 1.62 per cent to 2.79 per cent

Agricultural engineering, Tropical Medicine, Organic Chemistry and Dairy & Animal Science are areas of research where India is picking up well besides Crystallography and Textiles.

Read the full news here

Above picture source: 30yearchallenge

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The seventh dossier was passed to Pakistan a few days ago.  Am sure it went into the dustbin as usual.  In spite of all evidence passed, Pakistan refuses to admit its complicity in the attacks.  Even if it does, there is nothing much to do about it.

The Pakistani army and its rogue intelligence agency, ISI have the official policy of using terrorism as an instrument of strategy against its neighbours. Too bad, it has finally spiralled out of control and Pak itself is under constant bombardments from the monster it created.

Not to mention, the Afghan – Pak border has become such a hotspot for the terrorists that the Americans are regularly using drones to bomb the hell out of the place.   To take out one terrorist, the US drones kill 100.  Pathetic ratio, no doubt.   It only makes it easy for the jehadis to indoctrinate the suffering people.   More terrorists are born, the cycle continues.

Till the US comes to its senses and crushes the evil nexus of the Pak army, ISI and the jehadi factory, they are in for a long haul in Afghanistan and there is not going to be any peace in the neighbourhood.

Previous entries on the Bombay attack – 1, 2, 3, 4, 5, 6, 7, 8

Above picture source: IBNLive