Bitcoin: A bubble waiting to burst likes Ponzi schemes

FILES-SINGAPORE-INTERNET-BITCOINExactly in Bollywood style when cops reach at the end of a brawl,at last the government has woken up to press the alarm bell against bitcoins or cryptocurrency. Countries like South Korea, Bolivia, Ecuador, Kyrgyzstan and Bangladesh have already banned cryptocurrencies. J.P.Morgan, the financial wizard, calls Bitcoin a “fraud” and the largest Ponzi scheme ever in humanity.  The Finance Ministry has now come out with an action plan against bitcoin and cryptocurrencies.

For our readers, I would like to explain that the claim that bitcoin holds huge fundamental value as a medium of exchange is yet to be seen. Bitcoin was invented by an unknown person or group to be a digital currency. It allows money to be transferred directly between individuals using cryptography. Bitcoins are reportedly created at pre-determined and gradually decreasing rates, with a total limit of 21 million issuable coins. Buyers sit on their coins while they wait for their price to rise further. What is wrong with bitcoin is that its supply is constrained and increasingly falling short of demand. As such instead of functioning as a currency, bitcoin remains a speculative empty asset.

The so-called block chain technology is showing increasing interest in it as many people are out to make a quick buck. Bitcoin or any other cryptocurrency may have intrinsic value because of the kind of money early birds are making out of it. However, it is nowhere close to widespread use as a medium that helps in the exchange of goods and services like the ethical currency which is a legal tender. A Morgan Stanley research note recently concluded that bitcoin’s acceptance “is virtually zero”. What then explains Bitcoin’s huge and phenomenal price rise? How can a top film star reportedly raise his investment of a few lakhs into crores of rupees? The lure of extraordinary gains and greed associated with it, of profits in very short periods of time in the case of bitcoin, has attracted people from all walks of life including some celebrities into this shady currency. Indeed, this is typical of bubbles that are driven by emotion rather than value as has been happening in case of Ponzi schemes or ‘chit fund scams’. Then there is an inherent danger because anyone who has access to a bitcoin password has the authority to spend the bitcoins it unlocks; loss of the password means loss of all of the associated bitcoins, with no recourse. Second, linear growth in the chain of blocks that make up bitcoin is resulting in exponential growth in the computation necessary to process and verify transactions.

Now our finance ministry has publicly accepted that there is a “phenomenal increase” in the prices of virtual currencies, including bitcoins, which are like “Ponzi schemes”. Ponzi schemes drive their name from Charles Ponzi, the notorious financial trickster who duped investors of about USD 20 million way back in the 1920s. The US regulator defines a Ponzi scheme as an “investment fraud” that pays existing investors with funds collected from new investors. Eventually, the scheme caves in when it fails to lure new investors or a large number of existing investors decide to cash out. Recently some top notch non-banking finance companies (NBFCs) of our country gained notoriety by launching Ponzi schemes and garnered huge sums of money.

Why gullible people are fascinated by bitcoins is that for example just one lakh rupees invested in bitcoin in 2010 would be worth a few hundred crore rupees today. That is the kind of extraordinary returns the bitcoin cryptocurrency has given to investors as its price has witnessed a meteoric rise, from just a few cents in 2010 to hit a lifetime high of over USD 11,000 last week. In 2017 alone, bitcoin price has increased by over 1000 per cent. In fact, the time it took for the currency to reach $11,000 after breaching the $10,000 mark was a single day. True to its nature, however, soon after hitting $11,000, bitcoin witnessed a sharp drop of 20 per cent before recovering some of its losses to close the day almost flat.

The sudden rise and fall in bitcoin value depends on demand and supply. If there are more investors, it would rise in view of more funds pumped into the system. Little doubt that other cryptocurrencies like Ethereum witnessed equally impressive gains and falls. Like the stock markets, this sudden rise and fall promotes speculation and people wanting quick returns rush to invest.  Actually, we can’t compare bitcoin which has no real world usage to stocks or even real currency.

The stocks or shares have value because they belong to a company which may go into red or earn huge profits. However, in comparison, the bitcoin is a scheme having no intrinsic value. The price goes up phenomenally when people are buying it and when they stop purchasing or investing, it goes doing and its value is nothing more than a big zero. In view of this, bitcoin is the most unreliable and is not going to become a legal currency. The truth hurts and the bitter truth or the stark reality hurts most. The current bubble may pop anytime for the same reason a Ponzi scheme eventually fails because of lack of public interest. The sufferers would be gullible people who are investing in it too late. Many of us are tempted to make a quick buck by investing in cryptocurrencies, particularly bitcoins. These promise phenomenal returns. One bitcoin, which was available for USD 0.09 in 2010 had surged to almost USD 20,000 in just seven years. It, however, had a rollercoaster ride, where for every winner there were several losers.
The finance ministry has now admitted that “there is a real and heightened risk of investment bubble” and “sudden and prolonged crash” would expose retail consumers who would lose their hard-earned money.

The ministry is also apprehensive that the virtual currency could be used for subversive activities such as terror-funding, drug-trafficking or money-laundering. The RBI has been issuing similar cautionary notes since 2013. Despite cautions from the guardians of the economy, many bitcoin exchanges are working with impunity in the country. Many rich celebrities and powerful people are associated with this rage. The finance ministry will be failing in its institutional duty if it did not move proactively to protect gullible investors from a Ponzi-like scheme. No virtual currency, not even the popular bitcoin, has been accepted as legal tender by any country. It is time for the Finance Ministry to act fast. Long ago a similar bubble burst in West and people lost everything, leaving thousands of investors in despair about their futures. History is repeating itself now with bitcoin. The price of bitcoin may yet double or even quadruple because its price is based on pure speculation and hype but the bubble is waiting to burst any time. It is time for the gullible public to be aware of the trap that they are getting into and for the Finance Ministry to act swiftly and sternly!

letters@tehelka.com

The Baffling Bitcoin: A Ripple of Excitement and Unease Together

69329295_xlBitcoin has become almost a bona fide currency for the dark web now. But this is a half-truth. Dark web is one of the main reasons why today one Bitcoin equals nearly eighteen thousand dollars. Wind back three years ago; it was low. Five or six years ago? Considerably low. Eight years ago? It was only 39 cents! This tidal surge in value is awfully baffling!
In eight years the value jumps just over many thousand times. Looks absurd, but, it’s the reality. And there was a rock-solid support of the dark web behind it.
The anonymous Dark Web, which is only available through the TOR browser, was the game changer. In 2014 alone, the daily sales volume in six dark net markets rose to USD 6,500,000. And that too after the FBI had banned ‘Silk Road’.
When FBI stopped ‘Silk Road’ in 2013, they found an astonishing report. Between 2011 and 2013, ‘Silk Road’, the DE-facto ‘E-Bay of Drug Sales in Dark Net’, had made 1.2 billion dollars. In those two years, they would mainly depend on drug sales. The exchange currency was Bitcoin. So the price of Bitcoin also skyrocketed in last two-three years. A value of about 39 cents to over USD 18,000 in just eight years is really startling but the increasing drug demand justifies it. Since it mainly handles illegal drug sales, a tidal wave of disbelief also sticks around it. The experts feel it’s fluppy. This downiness is the biggest disadvantage.
Whether this bubble bursts or not, it indicates another major trend in human behaviour. We’re now relying more and more on machine-code rather than other human-operated institutions like banks backed by the government. For the upcoming generation and digitally transformed people, the old custom of ‘currency-changing-hands’ seems to be hackneyed. So, Bitcoin or any other crypto-currency is trending.
The most mysterious part of bitcoin is its failure to be present physically. But, this act of avoiding visionary-capture is often associated with any digital currency. People often ask, what does bitcoin look like? Does it really have a physical shape like any currency note or coin? We see images of Bitcoins around us – in print, on the web, photographs in newspapers. Actually, they are all info-graphics representing a conception.
A bitcoin is a digital token and crypto-currency. Hence, it must not have a physical blessing. You can send one bitcoin to another user electronically only. A bitcoin can be divided out into eight decimal places – 0.00000001 bitcoins. That is the smallest fraction and referred to as one Satoshi. It is believed that Satoshi Nakamoto was the anonymous founder-creator of Bitcoin. Although for many years there has not been any trace of Satoshi. He has just gone up in a puff of smoke.
But his white paper on bitcoin is still available on the bitcoins official website. You can download and read it. In his seminal white paper on bitcoins, in the beginning, Satoshi wrote a historical paragraph in his ‘Abstract’. It defines the abstraction and physicality, both, at the same time with the usage of the few words such as ‘timestamps’, ‘peer-to-peer’, ‘electronic cash’, and ‘hash-based proof-of-work’.
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.
We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.
To resist double-spending Satoshi uses the concept of peer-to-peer computer networks. At present nearly ten thousand computers maintain these peer-to-peer networks. And the longest chain supports the whole system in a unique way so that hackers wouldn’t penetrate the system. This is controlled by advanced mathematics. And for that reason, sometimes it seems confusing for the general people. Bitcoin is the digital token or crypto-currency and at the same time, it’s the name of the payment network. This network stores and moves this mysterious currency. Consider a traditional payment network like Mastercard and Visa. They are usually run by a single company or any person.
The conception of bitcoins is totally different. The whole system is decentralized. It’s run by a huge network of computers around the world. As Satoshi wrote in his white paper, the record of transactions are constantly updated by the networks of thousands of computers and it’s called blockchain.
There is no doubt that there is a criminal connection. Silk Road was there too. Although it was blocked, new names came up — sprouting like newly grown buds. Criminals have enough reasons to use it. Anybody can open a bitcoin address and start sending bitcoins. No central authority is there. There is no institution like Reserve Bank of India that could monitor the transactions. The tidal surge in Bitcoins value is directly associated with the drug dealers who began taking payments in Bitcoins in the Dark Web.
Very recently, when the computers were taken over by ransomware, the hackers also took payments in Bitcoins. But, it cannot be said that bitcoins are only used by criminals. Rather a small part of it. Then what about the regular currency? Recent Panama papers and Paradise Papers leaks have shown us the scourge of black money. After all, criminals are there everywhere.
Now, the question is, can any government shut down this bitcoins networks? The answer is a ‘Big No’! If US government shuts it down, it will keep operating from another country. This is because it’s a huge network of computers spread over the whole world and the number of connected computers is around 10,000. This number-game cannot be solved by guessing. If every nation agrees, which is impossible, it goes underground.
As Satoshi mentioned in his white paper, behind bitcoins operates the highly advanced conception of mathematics. So it’s not easy ti create bitcoins on your own. As a user, you can’t add more bitcoins to your account. Even developers who maintain the database of all bitcoins transactions – the blockchain, cannot do that. The discrepancy would be noticed and ignored by others. It’s programmed that way.
At the same time, experts feel people are buying them because of the hype comparing it to Tulip Mania and the dot-com crash. Can there be a catastrophic fall in price? It’s unlikely to pose a great threat to the global economy. The amount of money tied up during the time of dot-com bubble was bigger.
letters@tehelka.com

‘Bhima-Koregaon clashes a pre-planned conspiracy’

maxresdefaultBhima-Koregaon, a small village in Maharashtra located on the Pune-Ahmadnagar Highway, suddenly made headlines on the first day of this new year. Thousands of people from the backward Dalit caste had gathered in the village to celebrate the 200th anniversary of a battle won by the British army, mainly comprising the untouchable Mahars, against upper caste Peshwas, an event that became a symbol of Dalit pride.

“We have been visiting this historic place for the past ten or fifteen years but for the very first time we noticed that all shops in the area were closed. The approach of the villagers was totally different this time. At around 11 o’clock in the morning, we saw smoke rising across the Bhima river. Some people rushed to us and said that vehicles parked there were set on fire and stone pelting was going on. We all ran towards the spot. The atmosphere had turned tensed. We informed the police about the incident, but we were surprised at the police’s role,” Vilas Sathye, who is associated with the Bharat Mukti Morcha, told Tehelka.

Bharip activist from Mumbai Ashok Gajjeti said, “We started to move towards Badu Budruk village but the situation was more dangerous there as youths were burning vehicles and throwing stones at the crowd from roofs of buildings. Cars and bikes were set ablaze and windows of vehicles were smashed. A big mob with saffron flags, chanting ‘Jay Shivaji, Jay Bhawani’ was moving towards us. Almost the same scene was being played out in Bhima-Koregaon. The crowd was stunned and people started running, a stamped took place.

Vehicles were burning and stones

being thrown even at Sanaswadi village at the connecting road to Ahmednagar. Bhima-Koregaon, Vadu Budruk and Sanaswadi were under fire. Meanwhile, news of the death of a young man made the situation more tense.”

Bharip Bahujan Mahasangh Chief Prakash Ambedkar has alleged that whatever happened on January 1 was pre-planned. “On December 31 when we came to know that some people were planning to disrupt our program on January 1, we talked to the people from the local community and appealed to them to maintain peace and brotherhood. They took the situation seriously and assured us that there would be no disturbance, but some unwanted elements spread hatred in the name of Hindutva. Sambhaji Bhide, who has been running a Hindu outfit namely Shiv Pratishthan in Sangli, and Milind Ekbote, who has also been running a Hindu organization called Samast Hindu Aghadi, are behind the planning of the violence. Bhide, who is known as Guruji, mainly brainwashed the youth of this area. He doctored history to spread hatred among the youth. A case was registered against him but arrest has not happened. We demand that they should be sued and punished.”.

In fact, an incident that took place in Budu Buduk village is behind the riots in Bhima-Koregoan and the
Maharashtra Bandh which was in reaction to the death of a Dalit youth and incidents of violence and sabotage. In Budu village, five kilometres from Bhima-Koregaon, there is a tomb of Sambhaji Raje, the eldest son of Shivaji. Aurangzeb had arrested Sambhaji and sentenced him to death. On March 11, 1689, Sambhaji’s body was truncated and thrown in this village. A decree was issued that any person who touches his body will also be killed. According to historical texts, a person named Govind Gopal Mahar, a backward caste from this village, collected his fragmented body pieces and cremated them. Govind Gopal Mahar’s tomb is built at a short distance from king Sambhaji’s.
On January 1 every year, members of the backward castes gather at the Jay-stambha, an obelisk commemorating the battle of Bhima-Koregaon, and go to Badu village to pay obeisance at the tombs of Sambhaji Raje and
Govind Mahar. Some people had also built a shed at Mahar’s tomb. There was also a flax banner giving information about him. On December 29, three days before violence broke out, an attempt was made to desecrate Mahar’s grave.

This led to tension in the village.

In this case, a case under the SC and ST (Prevention of Atrocities) Act was filed against at least 49 youths in the village. According to sources, this matter was publicised by spreading misinformation that upper caste Marathas were being targeted by misusing the pro-backward caste Act. However, in reality youths from the OBC community along with Marathas and other communities were also involved in the incident and booked accordingly. Along with Badu village, people from nearby villages were also provoked in this manner, which resulted in stone pelting and burning of vehicles of the people who had come to celebrate the day as Vijay Divas.

Even before December 29, there was a case of tampering with history in Badu village. It is being propagated here that Sambhaji Maharaj’s cremation was not done by a Mahar but by a villager named Shival Deshmukh, originally from the Shirke caste, and other Marathas. There is, however, no historical evidence of the claim. Govind Gopal Mahar has been mentioned by many historians in their research. Historian B C Bendre has written that the work of Govind Gopal Mahar was mentioned on the board on the tomb of Maharaj Sambhaji. But two years ago, the old board was removed and a new board was placed, which replaced Govind Gopal Mahar’s name with the word ‘Shivay Gramastha’. The allegation is that all this has been done at the behest of Sambhaji Bhide and Milind Ekbote, who want to spread Brahmanical supremacy. Bhide denies the allegations, demanding a CBI investigation of the entire incident.

Kumar Kale, associated with BAMCEF, an organisation working for exploited and pressed communities, claims that he has strong evidence against Bhadra and Ekbote.”We have gathered the evidence which will prove that both of them have a hand behind whatever violence took place on January 1. Not only that, the attitude of the local police was to help them indirectly. We are going to drag them to court,” he said.

Prakash Ambedkar asks, “If Jignesh Mewani has called the BJP and the Sangh in his Elgar Rally held in Shaniwarwada, Pune, as modern Peshwas, then what is wrong in it?”

Ashok Gajjetti explains, “Bhima-Koregaon’s war was between Peshwa and the British, but in this battle,
Mahar soldiers while fighting for the British took revenge for the atrocities committed by the Peshwa on Dalits. Almost two-and-a-half-thousand Peshwa soldiers were killed by nearly five hundred Dalit soldiers. During the time of Peshwas, to humiliate the Dalits as untouchable they were made to walk with a pot hanging from their necks and swabs from the waists.”

To make their victory in the Bhima-Koregaon battle memorable, the British constructed the obelisk. Dr B R Ambedkar used to visit it and had linked it with Dalit pride. Since then, Dalits have been paying tributes at the victory memorial.

Bhima-Koregaon violence and its counter-violence has not only impacted Maharashtra but national politics too. About 4,000 people from Maharashtra have been arrested in connection with the violence and disruption during Maharashtra Bandh. As a result, the atmosphere is tense. It is being seen as a challenge to growing supremacy of pro-Hindu political parties and organizations. Other political parties do not want to miss the opportunity to take advantage as the general elections are to be held next year.

letters@tehelka.com

Sweets not exchanged at border this Republic Day

Curse of the past Indo-Pak politics continues to be a victim of colonial hangover. Photo: AFP

In a departure from the past, sweets were not exchanged due to heightened tension between India’s Border Security Force (BSF) and Pakistani Rangers  along the International Border (IB) and Line of Control (LoC) in Jammu and Kashmir because of repeated ceasefire violations by Pakistani forces on the occasion of the 69th Republic Day.

“There were certain reasons behind it,” said Director General BSF K K Sharma, while confirming the non-exchange of sweets. “In future, the BSF wants that there should be good reasons for exchange of sweets between the two nations.”

BSF sources said it was conveyed to the Pakistan Rangers on Thursday that no sweets would be exchanged on the Republic Day.

The border guards of both the nations usually exchange sweets on major religious festivals like Eid and Diwali, and on nationally important days like Independence Day and Republic Day, reports said.

ASEAN vows stronger ties as India marks 69th Republic Day

 632822-modi-aseanHours before the 69th Republic Day celebrations, leaders of India and ASEAN pondered ways to boost maritime security, connectivity and trade.

Prime Minister Narendra Modi, meanwhile, said that India shares the ASEAN vision for rule-based societies and pitched for freedom of navigation in the region.

Modi had earlier released commemorative stamps to mark 25 years of Indo-ASEAN ties at the India-ASEAN Commemorative Summit, with highest-level of participation from all the 10 member-countries of the bloc.

The highest-level of participation at the summit, according to reports, comes in the backdrop of increasing Chinese economic and military assertiveness in the region.

Some experts feel that the meet can be an opportunity for India to present itself as a powerful ally to these countries in the strategic areas of trade and connectivity.

The ASEAN leaders are chief guests at the Republic Day which was termed by Modi as “historic and unprecedented”.

Officials were quoted as saying that the summit is likely to boost India-ASEAN cooperation in key areas of counter- terrorism, security and connectivity.

Earlier on Thursday, President Ram Nath Kovind hosted a lunch in honour of ASEAN leaders, who along with Modi also participated in a retreat session during which the leaders had a “free and frank” discussion on “maritime cooperation and security”.

According to reports, Modi had also had bilateral meetings with six ASEAN leaders, including his counterparts from Thailand and Singapore, which is the current chair of the ASEAN grouping.

Gender pay gap: Quite a pervasive inequality

Balanced scale with a man and womanIceland recently surprised the world by enacting a law that requires companies to prove that they are paying men and women equally for performing the same jobs. The country’s effort to minimise the gender pay gap and thus gender inequality has been hailed across the world.

The gender pay gap is a global discrepancy, more widespread and severe than it is considered to be. For instance, Iceland itself had passed the first legislation mandating equal pay for men and women in 1961. At that time, members of the Alþingi, the Icelandic parliament, were hopeful that full pay equality would be reached in only six years, in 1967. However, the small and prosperous country with a population under 3,50,000 couldn’t attain that goal in over half a century despite making efforts and finally had to resort to stricter legislation!

What could be the reason behind the gender pay gap being so pervasive even in developed countries? It is certainly not the case that men in general are smarter or more hardworking than women to deserve higher remuneration for the same jobs. These qualities have nothing to do with one’s gender. Yes, a large number of women especially in patriarchal societies do remain more ignorant about various things than men; the reason is not that women lack
intelligence but that they are denied by their families opportunities and exposure to the world that is not forbidden for most men.

Females are from very young ages ‘taught’ that they are primarily care givers whose responsibility is to look after their homes and families. This often influences their choice of careers as they aspire for jobs that will not complicate looking after their homes. Don’t we in India hear a lot of women talk about finding ‘safe’ jobs with ‘manageable’ working hours? Even for women who don’t have such mindset, childbirth takes them back by a few steps in their careers. No wonder research shows that income equality between men and women is more stable in their 20s but starts to go haywire after their late 20s and 30s (childbearing years for women), stabilising after women cross the 40 mark (when the kids are comparatively independent).

It’s mostly the mother, not the father, who either takes a few years’ break from work or makes sure that even if she keeps the job her professional life doesn’t come in the way of the children’s upbringing. When the kids fall sick or have exams, it’s so uncommon to see fathers instead of mothers taking leaves from work. In most households, domestic chores are the women’s duty. No matter how capable a woman is, her career does get affected when she has to divert her energy to significant household and caregiving responsibilities. Many women thus opt for jobs far below their qualifications. This also leads to women not negotiating their salaries as well as men do because many of them are more focused on getting the job that would let them divert their attention to their homes. This isn’t the case for men; they are expected to carry on with life as usual no matter what kind of hell breaks loose in the house.

All this strengthens the widespread perception that men are the primary bread winners whereas women’s incomes are supplementary. We all have heard of women relocating with their husbands when they are transferred to other cities or countries but how many men instinctively give up their jobs to shift base if their wives are transferred? On the contrary we all know of cases where women change their jobs to suit the husbands’ or children’s or in-law’s needs.

The gender pay gap is one of the factors that stem from gender discrimination and keep spinning in the vicious cycle that results in furthering prejudices between males and females.

ridhima@tehelka.com

Patriotism? Let cinema hall owners decide

The national anthem has been the talk of the town for quite sometime. On November 30, 2016, the Supreme Court made it mandatory to play the anthem in cinema halls before the screening of films, saying that those present must “stand up in respect” till the anthem ended. The reason behind this order as given by the apex court was to “instil within one a sense of committed patriotism and nationalism.”

The bench of Justices Dipak Misra and Amitava Roy said it was time people expressed their “love for the motherland.”

movie theater(2)“People must feel this is my country. This is my motherland. Who are you? You are an Indian first. In other countries, you respect their restrictions.

In India, you do not want any restrictions?” Justice Misra had remarked.

“…people should feel that they live in a nation and show respect to the national anthem and the national flag,” he said.

‘Oh C’mon! Do we really need forced patriotism?’ was my first thought after the decision came. We in the twenty-first century cant be forced to listen to our national anthem to feel deep love, respect and responsibility towards the nation.

Going through this unique news 2016, I had perfect fodder ready for my daydreaming routine in office. After all, who wanted to work if there was such big news out there to gossip about. So, here I was in my reverie, sitting in the middle row of a cinema hall filled with people including elderly and kids when my phone rang displaying the name of the caller saved in my phone as “don’t pick”.

Ankit was calling as he had gone through SC’s national anthem ruling and wanted me to listen to arguments that he wanted me to publish. But as my mobile suggested “don’t pick”, I didn’t take the call until my colleague was obviously irritated with my continuous ringtone of “saare jahan se achha…hindustan hamara”.

We Indians have a very strange habit of doing what we are told not to do. The apex court wanted to instil patriotism in us but going by habit, many of my friends exchanged a lot of ideas on how to go against the decision. So the result was that I was the only one from my group going to the movies throughout last year. To not indulge in forced patriotism, my friends boycotted cinemas altogether and took the route of pirated CDs.

For me, the judgment was a boon. Thanks to the judges, in order to “stand up in respect” for the nation, I became attentive, in cinemas at least. The decision gave me a reason to stand before I go on my munching spree for the next three hours.

I was overwhelmed by love for my motherland until the judges decided to give a revised judgment on January 9 this year. While modifying its earlier order, the SC made playing of the national anthem in cinema halls optional.

However, the twist came when the court gave control in the hands of cinema owners. The bench clarified that should a cinema hall choose to play the national anthem, it shall be compulsory for every person in the audience to stand in respect unless they are entitled to exemption on account of disability.

So, does that mean that now cinema owners will decide when I need to bring my attentiveness back in theatres? The current order is perplexing for me.

The decision has again got a mixed response from theatre owners. Some of them welcomed the judgment saying that many times they faced uncomfortable situations when some people would get agitated seeing someone not standing during the anthem. Some other theatre owners said they would like to continue playing the national anthem. So now cinema owners have the authority to decide when to instil love for the nation in people?

Here goes my reverie of standing in a queue to buy a ticket for the latest blockbuster and get to know that patriotism is free with every ticket.

Yashica Jalhotra is very happy after the apex court’s decision as she can now choose the theatre according to her patriotic mood of the day.

letters@tehelka.com

Hindus, not Indian? Quite possibly, yes!

If everyone born and living in India is a Hindu, then what would you call the people born and living in Nepal — the only Hindu country in the world? The definition of the word ‘Hindu’ given by some politico-religious organizations reduces Hinduism to a mere geographical identity and it no longer remains what most Hindus like to believe it is — a religious denomination. There are Hindus born and living in Sri Lanka, Burma, Mauritius, Malayasia, Indonesia and also in the countries of European, African and American continents. Surely, they are not Indians. If all Hindus are Indians, then, the Hindus who are nationals of other countries are placed in a peculiar dilemma of national loyalties, creating all kinds of problems for them in the countries where they now reside.

SADHUS Oh, by the way, there are some people living even in the Islamic Republic of Pakistan who call themselves ‘Hindus’ and are even officially recognized as members of a national Hindu minority — which means that the Hindus born and living in Pakistan are Pakistanis. And they are Hindus, but not Indians. Would the government of India recognize the entire Hindu minority in Pakistan and Bangladesh, Nepal, Burma, Indonesia, Malayasia, etc. as Indian nationals and thus make them ‘traitors’ in their own countries?

With the BJP constitutionally at the helm of the country (India), it may not be diplomatic or politically savvy for its sympathizers to openly declare Nepal or even Burma, Indonesia and Malaysia to be ‘Indian’ countries — Akhand Bharat can wait till the BJP moves over to the opposition benches in Parliament.

This is how sophistry can sometimes backfire — but not often enough.

The debate in the country actually is about another issue — religio-political stew. And its an old debate which has been given a fresh lease of life by a statement of the highly respected chief of the RSS, Shri Mohan Bhagwat describing all citizens of India as Hindus. Typically, he explained later that the term Hindu is only a synonym for the old expression ‘Sindhu’ used for the people of the Sindh valley which later morphed into the English expression Indus and still later to Indes and India.

Thus, essentially, the crisis facing India today is merely a pronunciation issue — or, more accurately, a mispronunciation issue !

According to Bhagwat, the problem with ‘pseudo-secularists’ in the country is that they haven’t read enough history or, if they have read it, they haven’t done so intelligently enough. If the RSS is to be believed, the whole hullaballoo being raised by the ‘pseudo-secularists’ is the result of their own mischievous and over-charged imagination.

But the whole debate, once again, is rooted in another debate — the place of religion in politics.

In 1984, India was rocked by three traumatic events that almost shook one’s faith in the destiny of the nation as a secular democracy. All three had their origins in the ‘fake-debate’ over the place of religion in politics and all three were foreseeable and, therefore, eminently avoidable.

Tragedy began with the then Prime Minister Indira Gandhi ordering troops of the Indian army to invade the most sacred shrine of the Sikhs, Sri Harmandar Sahib, or the Golden Temple in Amritsar, resulting in the virtual destruction of the iconic Sri Akal Takht Sahib. This was in June 1984. Exactly five months later, Indira Gandhi was assassinated as an act of reprisal by the Sikhs. What followed was India’s hour of shame: thousands of innocent Sikh men, women and children dragged out of their homes to be burnt alive, raped and subjected to an inhuman orgy never witnessed at this scale in the country since its independence from the British in 1947. What added to India’s shame was that Indira Gandhi’s son, Rajiv, who succeeded her to the throne, not only justified the massacre but also rewarded its perpetrators with high positions in government including cabinet berths. None of the guilty has been punished even 33 years after the tragedy.

Anyone who thought that the country may have drawn the right lessons from this tragedy was soon to be proved wrong by what happened at Ayodhya on December 6, 1992 when motivated crowds rampaged and reduced to rubble the 16th century Babri mosque.

Interestingly, the BJP, spearheaded at that time by L K Advani, had been among the staunchest critics of the Akalis mixing religion with politics in Punjab. The Akalis sought ideological moorings for their religio-political brew in the dictates of their Gurus who had underlined the need for subjugating politics to religious ideals. (“Raj bina nahi dharma chale hai/Dharam bina sabh dale male hai”— roughly meaning, “Without state participation, religion cannot flourish. Without religion, the state would go too ruins.”)

It is quite another matter that by religion, the Gurus did not mean “communalism”, nor even “Sikh religion”. What they actually meant to emphasize were religious ideals such as equality, justice, freedom, truth and fair-play. That emphasis on the state being guided by religious principles is present in all faiths, including Hinduism (Ram Rajya), Islam (Juda ho deen siyasat se to reh jaati hai Changezi) or Christianity in which Jesus is the True King. This has nothing to do with mixing religion with politics. This has nothing to do even with mixing worship and other religious practices with politics. And this certainly has nothing to do with mixing religious identities with politics, or with politics being driven by the dictates of a particular religion, any religion. But trust our politicians to distort the scriptures.

The BJP, never truly enamoured of the Congress brand of secular politics, had already begun to cast its constitutional veil away and emerge in sharper and more strident contours of its true political ideology which is rooted in the RSS brand of patriotism. To be fair to the RSS, they have never openly disowned the secular ideal enshrined in the constitution. But that was not even necessary. And that’s the whole trouble.

Our mainstream political parties no longer believe that they have any need to pretend to be secular. What some of our more strident parties have done to our polity will take a long time for this country to even fully react to. They have demonized “secularism” making it almost synonymous with unpatriotic conduct. You cannot be secular these days without being accused of being pro-Pakistan, just as you could not be a Leftist in the sixties without being accused of loyalties with China. Our politicians have mesmerized the media into reading “pseudo-secular” for secular. They have changed the terms of engagement so smartly and so dramatically that the debate in the country is no longer between the secular and the communal forces. It is only between “pseudo-secular” elements on the one side and “nationalists” on the other. Hindutava has been invested with a secular currency so much so that to question Hindutava amounts to questioning the Indian-ness of an Indian.

Mohan Bhagwat_000_Del440881And it is all about sophistry and linguistic chicanery. You say one thing and deliberately imply another and leave the door open for multiple deceptions through vagueness later. The statements emerging from the headquarters of some of the leading political parties these days are a classic example of communal casuistry — the usage of purposely misleading expressions and arguments in order to keep the communal cauldron alive. Those who find nothing wrong in declaring that everyone born in India is a Hindu cannot be unaware that the Muslims are not Hindus and the Hindus are not Muslims while both are Indians, and proudly so. Characteristically, they have invested the term ‘Hindu’ with a meaning which has never been in usage anywhere in the world.

Of course, our politicians know what they are doing. Some of them express ‘innocent shock’ over being misunderstood on the Hindu-India debate — except that this innocence too is rather methodical. They know that the moment anyone mentions the word ‘Hindu’ anywhere in the world, it will invoke images of the people belonging to a religion which has the Gita, the Vedas, the Ramayana, the Mahabharata, etc. as their iconic cultural and religious identity-symbols. Nowhere in the world is the word Hindu taken to mean Indian; it is always understood as a description of the followers of the Sri Ram Chandra and Lord Krishna. And nowhere in the world is the word ‘Indian’ a synonym for ‘Hindu’. Every Hindu knows that a person belonging to Sikh religion or to Islam or to Christianity is not a Hindu even if he is born and brought up in India. But our political ideologues innocently declare that everybody born in India is a Hindu because the word India comes from the word ‘Indus’ which is an English version of the word ‘Sindhus’. The ancient Arabs and Persians now come to the aid of the political-ideologue, helping him keep alive the confusion between the Hindus and the Indians.

Not that anyone in his senses needs any scholarly explanations to know that all Indians are not Hindus or that not even all Hindus are Indians — except if the government of India wants to own responsibility for all Hindus living as citizens of various countries in every part of the world. But of course that is not even the intention of any Government or political or cultural organization in the country. The debate has relevance only in the windmills of political skullduggery.

Any slogan that can sufficiently and appropriately polarize the country along communal lines is good for its leaders so long as communal polarization can yield votes. In the first two decades post Independence, India was fortunate to have survived such polarization although the danger always loomed large on the horizons. Even leaders like Pandit Jawahar Lal Nehru were alive to the dangers which communal polarization posed to the very survival of the country in its formative years. Fortunately for the country, Nehru chose to pitch his politics in a mix of economic development and social consensus. The Nehruvian era will always be remembered as the “the era of the Moderate Secularist” in which ideological or communal extremes were held at bay with emphasis on economic resurgence and consolidation.

Unfortunately, there is no secular icon on the scene today capable of inspiring and navigating the nation away from dangerously divisive slogans. For that to happen, we will need someone who can redirect the national focus back to economic issues and turn moderation into a religion. Right now, there is no one with a voice credible enough to inspire enough confidence in that direction. The vacuum is frightening.

letters@tehelka.com

Bikers abduct class 1 student, shoot school bus driver in New Delhi

kidnappedIn a shocking incident reported from New Delhi’s Dilshad Garden area, two bike-borne assailants reportedly attacked a school bus carrying nearly 22 children, shot the driver and abducted a class 1 student on January 25.
The driver was reportedly shot in the leg
According to reports, the kidnappers took the child and went towards Uttar Pradesh.
The Delhi Police are investigating the incident and search operation has begun.
The bikers allegedly halted the school bus near Vivekanand school around GTB Enclave. After shooting the bus driver they kidnapped the child at 8 am.
It all happened amidst the high security in the national capital in the view of Republic Day celebrations.
 

Public banks to get Rs88,000 crore aid from Centre

Bengaluru: A man counting new Rs 100 currency notes in exchange of the old Rs 500 and Rs 1,000 notes at a bank counter in Bengaluru on Nov 10, 2016. (Photo: IANS)The public sector banks (PSBs) will get Rs. 88,000 crore infusion as capital from the Centre in this financial year, which include Rs. 80,000 crore through recapitalisation bonds and Rs. 8,139 crore as budgetary support.

The move seeks to address the regulatory capital requirement of all PSBs and provide a significant amount towards growth capital for increasing lending to the economy, said Finance Minister Arun Jaitley.

“We are setting up an institutional mechanism to ensure what has happened in the past is not repeated. It is the government’s responsibility to keep state-run banks in good health and ensure they follow the highest standards of corporate governance,” the minister said.

Financial Services Secretary Rajeev Kumar reportedly said that banks would have to first accept and adopt the reforms package finalised by the Finance Ministry, which is aimed at six themes of customer responsiveness, responsible banking, credit offtake, PSBs as Udyami Mitra, deepening financial inclusion & digitalisation and developing personnel for brand PSB.

“PSU banks will have to revamp their lending practices, especially in advancing loans to big businesses and in consortium lending, monetize non-core assets, rationalize overseas branches, embrace technology and move to recover loans that have turned bad,” he said.

The recapitalisation bonds will be non SLR status and non-tradeable. They will be issued in six tranches with a tenure of 10-15 years, said Economic Affairs Secretary Subhash Chandra Garg, adding that they will be a cash neutral arrangement and so will not impact the Centre’s fiscal deficit.

However, servicing the bonds would reflect in the future liability of the union government, Garg reportedly said.

IDBI Bank Ltd and Bank of India, which have been placed under prompt corrective action (PCA) by Reserve Bank of India, will receive the highest capital infusion from the government at Rs10,610 crore and Rs9,232 crore, respectively.

Banks hope that the capital infusion will help in funding growth and meeting regulatory requirements. The assistance, according to them, has been allocated based on the provisioning requirement for bad loans and the board-approved growth policy that has been shared with the government.

The PSU banks and their capital infusion

IDBI Bank Ltd: Rs10,610 crore

State Bank of India: Rs8,800 crore

Bank of India: Rs9,232 crore

UCO Bank: Rs6,507 crore

Punjab National Bank: Rs5,473 crore

Bank of Baroda: Rs5,375 crore

Central Bank of India: Rs5,158 crore

Canara Bank: Rs4,865 crore

Indian Overseas Bank: Rs4,694 crore

Union Bank of India: Rs4,524 crore

Oriental Bank of Commerce: Rs3,571 crore

Dena Bank: Rs3,045 crore

Bank of Maharashtra: Rs3,173 crore

United Bank of India: Rs2,634 crore

Corporation Bank: Rs2,187 crore

Syndicate Bank: Rs2,839 crore

Andhra Bank: Rs1,890 crore

Allahabad Bank: Rs1,500 crore

Punjab and Sind Bank: Rs785 crore

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