Lessons from the Greek Opera

The whole country of Greece is a welfare state where everyone gets a pension. Pensions are of course contingent on there being a larger and larger number of young people joining the ranks of the workforce to help fund them. No government 'saves' money for the future – they spend everything and more; saving for the future is advice meant for muppets like us.  They keep borrowing from the others, notably, from the Germans (who I really pity; they work, the others enjoy) – looks like everyone is still extracting revenge for the second world war.

 

And there of course comes the day when they can't pay their debts. In order for them to pay their debts, the lenders need to lend them money, which of course just maintains the illusion that they are paying their debts. At some point the lender feels that he is being taken for a jolly ride, and he says 'No more'. Which is when the people enjoying the free ride rise up in indignation. How dare they do this to us; they are humiliating us; this is inhuman; there are old people, children, and sundry other categories of people who will suffer due to this inhuman decision of our creditors to pull the plug! They need to keep funding us! The people with money are caught on a cleft stick – they are screwed if they lend more; they are screwed if they don't.

 

Moral of the story? If you have money, buy assets. Don't lend them to others. By the way, putting money in bank deposits or debt mutual funds is also lending to others. There is always the hazard of you not getting your money back. There is also the constant fact that the government keeps on eroding the value of money, by creating money (printing is not necessarily the right word – they don't create money just by printing – they do it nowadays by waving magic wands called quantitative easing) and distributing it like there is no tomorrow. In fact, they who do this are right – who has seen tomorrow – let's just live for today.

 

Look at Puerto Rico today. They are in similar shit because their politicians spent more than they could afford all these years; Iceland got out of a big piece of similar shit a few years back; Zimbabwe's case is too well known to bear repetition. A lot of countries cut a few zeroes off their currencies once in a few decades, once it is no longer possible to count the money without a calculator. In many countries people transact only in US dollars; which of course is another chimera. It is like the mad characters in Alice in Wonderland deciding to accept currency that is printed by the countries in the Game of Thrones, since they don't trust their own any more.

 

Money is an illusion. It is just a promissory note given to someone assuring him that he will get some things in return if he passes that note around. It is just the faith of all of us in a common illusion that sustains the illusion of currency; like any other illusion, it needs all the people participating in it, to believe in it, for it to succeed. Meanwhile, the magician who created the illusion is busy siphoning off some of it every time he waves the wand, and redistributing it among those who are participating in the illusion, so that everyone feels that he has a stake in the illusion. Those who have too much of it, are systematically eroded of their wealth – termites called inflation and quantitative easing are constantly nibbling at it. But then they are too much part of the system, too entrenched, too enmeshed, to realize; and even if they do, to protest.

 

When everyone is pointing to the stage and clapping, it is but politic for us, to also point to the stage and clap. We need to be enthusiastic in our participation in the illusion; and seem to be as mesmerized as the rest. Meanwhile, we need to keep converting parts of our money into real assets – the things of actual value, the things that people need, and the means of production to make these things; and some medium of exchange that cannot be manufactured by waving a wand, like gold and silver. Some land, to stay and to produce something. Some stake in ventures that produce things of value for people, like equity in solid companies run by people who are not illusionists themselves. And yes, it won't harm to borrow some of the illusionary pieces of paper called currency, to invest in some of these assets.

 

Net sum and gist: Not a lender, but a borrower be. And invest your money, at least most of it, in things of real value, things that people will want, irrespective of whether they pay for it with pieces of paper, or a bit of their own labor. Own the means of production, not pieces of paper that assure you that you own the means of production.

 

Too dire a prescription? Too pessimistic an outlook? Sure. Those who are dancing at the party, always look at those who are standing outside and pity them. The other way round is also true.

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Posted By Dinesh Gopalan to Personal Finance, Investments, and other things at 7/05/2015 10:03:00 AM

Modi's year in office

He is lying prone on the mat,

And striking classic yoga poses;

With a million cheering him on,

Of course, impeccably dressed!

 

He takes the US by storm,

Cheered by Desis at Madison Square,

A million are always turned out,

To cheer the ultimate showman on!

 

He speaks in quotes and aphorisms,

Perfect for the age of twitter;

He knows the art of byte-sized sound,

For a world that can't focus longer!

 

He shares the stage with world leaders,

In their home, visiting their town;

Hosts visiting ones on jhulas,

In his own beloved home town!

 

His ministers form a circle,

Whose role is to point to the center;

Lest anyone still misses it,

He's the one dressed in most splendor!

 

Each event of his is so well-timed,

Though he thought of it years in advance;

He won't let any good thing go,

For lack of timing, unheard, unsung!

 

He's got the teams to project him,

For any event, the right platform!

Laser shows during the elections,

Followed by one show every month!

 

He knows the art of projection,

Of waiting, and of deception;

With no family to distract him,

There's also the aura of renunciation!

 

He keeps his enemies at bay,

In different Machiavellian ways;

They cheer: those who wish to gain,

The others' balls: he holds in his hands!

 

Enemies have been known to vanish,

All but friends, decimated;

A man you  can't antagonize,

Either you cheer, or stay silent!

 

He has an event for the moment,

And several scandals held in reserve;

To release when the time is right,

When he's in trouble, or before the polls!

 

From the gullies of Gujarat he came,

To storm the walls of Lutyens' Delhi;

Over every person he looms,

Who stare in awe or cower in fear!

 

Who knows if this is for the good,

Or will lead to anything better?

A megalomaniac come to save us,

Or a mahiavellian deliverer?

The Maggi madness

The world has lost it, it is collective madness.

They are saying Maggi without the lead is good!

What they are testing for is lead, so that is the focus,

With which everyone is so obsessed.

 

The problem is with how it's made, not lead.

It has to cook fast, since it is 'instant';

It has to last long, since it is sent

To all corners of the land – it may take months;

It has to taste good, for kids to want it,

So chemicals are fixed for it to reach the 'bliss point';

It needs to be loaded to the brim with salt and other things,

It's one or all of: fat, salt and sugar; before putting into a packet;

And many more deadly carcinogens, which are packed in,

Called preservatives, enhancers, QBz11 or such cute names.

They start with grain, god knows of what quality,

Made to flour, all nutrients removed;

Then based on a formula tweaked in their research labs,

All the other ingredients are blended in.

Invariably, the process involves high heat,

And also killing anything that lives,

For living things in there will make it spoil,

And rot before it reaches the shelves.

 

Eat only food that spoils, should be the motto,

But eat them before they spoil;

In chasing after lead, we are being made fools of,

By the same people who claim to safeguard us;

They will test it again, and lo and behold! Free of lead!

And claim victory, in safeguarding our health.

And we will happily go back to eating Maggi,

Or whatever other noodles we switch to instead;

 

For someone is benefiting from this controversy,

It is a plot to undermine Maggi.

The whole world chases after a false scent,

And we too, get carried away, part of the herd.

 

Why only Maggi, why only noodles?

And why only lead, or any one isolated chemical?

These things in packets don't come from kitchens,

They come from labs, and are then advertised,

To convince us that they are good for us.

 

There is only one answer,

But the world won't see it.

You and I know it, but refuse to acknowledge it.

We need to buy food fresh and cook it,

In our own kitchens,

And eat it before it spoils!

Stop those statins!

Dr. BM Hegde's article on why not to take statins (link attached at the end).

It seems to be very difficult for many people to accept such articles, much less act upon them. Like the quote by Noel Coward at the beginning of the article says "It's discouraging to think how many people are shocked by honesty and how few by deceit"!

Nowadays, we like to outsource everything to so-called experts. Every article you read says things like "experts are of the view that walking even for two minutes is better than sitting on your butt the whole day" or "experts opine that it is good to eat vegetables; however, make sure that it is low-fat, low-carb, low glycemic index, high protein, low calorie, and germ-free, which is what our supplement ensures. As certified by the world's leading nutritionists, it is better to have our supplement than to have the vegetables themselves"!

Medicine is among the worst cases of this kind of abdication. We don't trust ourselves when it comes to health, but want to listen to the "experts". We have been indoctrinated to believe that good health is a matter of high science, which we cannot understand. The science part is outsourced to scientists, who are paid by the pharma companies, and in most part, are looking at the wrong things anyway.The interpretation part is left to the doctors, who have not been taught about what is health in their entire curriculum, and then for updating their knowledge depend on the pharma salesmen. 

The result? People take drugs like statins, which a little bit of reflection will tell you is a scam. There are tons of other examples from medicine. 

Financial scams are better. At least what you lose is only your money. When it comes to medicine, it's a matter of both your money and your health.

link to article:

http://www.moneylife.in/article/stop-those-statins/41666.html

Dinesh Gopalan

mob: 9845257313; blog: http://www.dineshgopalan.com

On Jayalalitha's acquittal

What happened is not surprising. It almost comes as an anti-climax since this was bound to happen.

( http://www.dineshgopalan.com/2014/09/on-jayalalithas-arrest.html  - that's the link to my article on this in September - I think it is going as per the script! )

The HC acquits Jayalalitha based on the same document that lists out the reasons for her conviction by the special court! 

Jaya has always been unpredictable, mercurial, imperious, and downright arrogant. To keep someone like her in check it is required to keep a sword of Damocles forever hanging over her head. This is achieved by making a prosecution case that is tight enough to convict if required, and loose enough to acquit if the need arises. The multiple layers of Indian judiciary takes care of the rest. 

After the conviction, Jaya would have sent her emissaries to the Center to work out things. And things do magically workout once she expresses her contrition and assures support to the ruling dispensation. What only needs to be hammered out is the timing of each subsequent move. And the timing of this verdict is brilliant. Just in time to declare early elections, ride in on the sympathy wave, and, can you believe it, an anti-corruption plank! 

But then, this is not the end of the story. I expect an appeal will be filed in the SC, which will of course take its course. In the meanwhile, the prosecution can be as efficient or as lax as it chooses in ensuring a conviction. The sword cannot be put back in its sheath.

Jaya is a great ally to have since she is virtually a goddess who can ensure TN for the BJP. But goddesses are known to be temperamental, and destructive. Basmasura's  hand on top of her head ready to fall and incinerate her if she steps out of line - that is what is required. Which a well-timed appeal will ensure. 

Another goddess who has immense power, and is probably more unpredictable, though not as sophisticated, and needs to be kept in check even more strongly is Didi. The Sarada scam is good for ensuring that. There is enough evidence to convict; the prosecution can be as lax or efficient as it wants; and there are enough layers in the legal system. Being a Kali to Jaya's Durga, Basmasura will have to be deputed to keep an eye on her too.

The other  games being played out in our most populous state, is keeping the Pehelwan and his puppet son in check, along with his lady rival. But they are easier than the two formidable devis - they are much more practical, and not so mercurial. So in their case, the stakes need never be raised this high. A few well placed cases, along with backroom discussion, without too much grandstanding on either side should do the job.

Advantage Modi. Chanakya would have been immensely pleased.