'KAPUT'alism

Looks like it is going to be a 'dead-decade' for the West after the bankers triggered the financial crisis resulting in not just mass unemployments for the youth but also financial crisis across countries.

So, what is 'broken' with Capitalism in it's present form? This is the question we all are asking in the present crisis.

I would like to point out a few quirks which needs to be amended asap if the system is to bring long term prosperity to masses and hence the peace across the world.

1. Role of Government - An example of better management presented via this 'Utilities Example' by Martin Wolf & Prof. Helm on 13-Jun-2008 in FT.

A regulated utility consists of a set of assets, an operating function and a co-ordinating function. The second, in turn, consists of two activities: running the business day to day and planning and implementing investment projects. Professor Helm argues , persuasively, that lumping all these together has led to inefficiency and a rip-off of consumers*.

Utilities have high capital costs and low operating costs. The purpose of the regulatory regime is to assure owners of the assets that they will not be expropriated. Thus the regulatory regime needs to offer a return sufficient to persuade investors to finance existing assets, known in the UK as the regulatory asset base. The regulatory regime also needs to offer private contractors sufficient returns to operate the business and develop and implement new capital projects.

Under the assumption that all these functions are to be carried out by a single entity, the solution has been to offer a so-called "weighted average cost of capital", whose components are debt and equity. Prof Helm's argument is that this is a mistake: the weighted average cost of capital is too high for finance of the regulatory asset base and too low for finance of the other activities. Worse, the private sector has understood this, with two dire consequences: excess profits on ownership of the assets and tendencies to under-investment.

The obvious way to finance the asset base is via debt. There is no reason to force customers to pay higher charges than are needed to service debt raised against the assets. Why, after all, should customers compensate investors for the risk of expropriation, which the regulatory regime exists to eliminate? Because the weighted average cost of capital is well above the cost of debt, investors have been able to buy the companies (BAA and the water companies, for example), replace the equity with debt and enjoy a licence to print money. Prof Helm estimates that this financial arbitrage has been worth up to £1,000bn a year, at the expense of the customers, predominantly in water. This is, quite simply, a scandal.

Yet this is not all. While the weighted average cost of capital is too high for finance of existing assets it is too low for the risky operating and, above all, investment activities. Not surprisingly, the companies have little interest in undertaking these.

The solution is to disaggregate the regulatory regime and the functions of these companies. Interestingly, the market itself is carrying out much of this, via its financial engineering. Finance of existing assets should be by debt, with the cost of capital set accordingly. Operating the assets and adding new ones could (and should) be franchised out, as is done for water in France. Instead of setting returns, as the regulators now do, the franchiser would discover the returns the market seeks via competitive auctions. Should franchisees fail to act in accordance with the contract, they would lose their franchise. What a simple solution that would have been to the problem of BAA!

When one looks at it this way, it seems obvious that the finance of assets is a suitable function for the public sector, which has one huge advantage - the ability to borrow cheaply. The difference between public finance of the assets and debt finance of a privately owned regulatory asset base, whose service is guaranteed by charges on customers set by a publicly appointed regulator, is, to put it mildly, not obvious.

The most sensible solution would have been for the public sector to own & finance the assets, with the operating and investment activities contracted out.

So simple. But what do the Government's do. They go from one extreme to another at a high cost to the people - all in the name of CAPITALISM.

2. Financing of Political Parties in the so called West & Democracies.

Different countries have different political systems all within the 'Democracy'. In one form or other all the major politicians are financed by the big business people and companies.

3. CRR Ratio to be set by Independent Central Bank and not the Commercial Bankers.

While CRR Ratio should not be more than 1:4, Debt should be punished and Equity rewarded not other way round

What the government's should understand is just keeping today's youth on dole will not make the problem go away. What about their minds? As the mind is restless and it needs productive work to be stable, only a stable economy with sensible policies can help achieve that. Otherwise, today's unemployed will become tomorrow's terrorists.

Kind regards,

Pradeep

My First Encounter With A MAYAVADI!!!

19-Aug-2014

Hare Krishna Dear Sender,

Thank you for your essay but unfortunately you are repeating what we call Mayavadi Tone.

If you want a proper assessment, you have to see both sides of the view and then use your intelligence to distill noise out from the tune.

If you take just few words and focus on them without context, then you get Mayavadi 'formless' philosophy.

Krishna very clearly states in BG 9.22 that "For those who worship me with exclusive devotion meditating on my TRANSCENDENTAL FORM, to them I carry what they lack and I preserve what they have"

Further in BG 4.6 Krishna very clearly defines the Transcendental Body - "Although I am unborn and My TRANSCENDENTAL BODY never deteriorates, and although I am the Lord of all sentient beings, I still appear in every millennium in My original TRANSCENDENTAL FORM."

When his transcendental body never deteriorates, how can the highest state be FORMLESS?

As lots of so called Godmen have made a big business out of Religion, they interpret it as per their convenience. Before quoting Osho, you have to find out which Parampara or Succession he belongs to? Otherwise, we end up wasting our time discussing spiritual things in mundane way with a lot of mental speculation which takes us no where.

I wish you all the best on your spiritual journey as when I see people with difference of opinion or even when mental speculators try to argue, I remember BG 4.11 - "As all surrender Unto ME, I reward them accordingly. Everyone follows My path in all respects, O son of Prtha"

There are many paths to the almighty but we are lucky that Prabhupada distilled the most simple and direct path from the Parampara beginning  with Krishna to Brahma to Narada to Caitanya Mahaprabhu on to him. So, my personal experience is, this direct approach is not just simple to follow in this age of Kali as Caitanya Mahaprabhu decreed but is also very very effective and clear without any mental speculation.

Kind regards,

Pradeep

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18-Aug-2014

Dearest Pradeep

It was wonderful meeting you on Sunday and thankful for the time you took out to talk to us. Please find attached document for your attention (see below). Look forward to your reply.

I have the privilege of writing an essay on some of the points we discussed in the informal question 

and answer session on Sunday. The issue is not with the main philosophy as these tend to be selling 

points and like most spiritual organisations, they are more universal.

However, there is an issue with one of the basic principles taken from www.mayapur.com ‘We are 

not our bodies but eternal, spirit souls, parts and parcels of God (Krishna). As such, we are all 

brothers, and Krishna is ultimately our common father. We accept the process of transmigration of the 

soul (reincarnation).’

We must agree that we are eternal beings, not only part of All That Is but also the Eternal too. 

Although universally we are all one despite the diversity seen and God can be seen as the Father 

(Creator) but He can be seen in His children too. We can call Krishna by any name since all names 

of the Eternal Spirit are merely nicknames and not the true name or sound. Everything that describes 

the Eternal are mere pointers to this Energy and must not be mistaken as the Formless Energy itself. 

The main issue here is that the process of reincarnation is generally accepted but is it the definitive 

answer? Not really.

In the Bhagavad Gita, Chapter 8, verse 5, Krishna says: “And whosoever, leaving the body, goes forth 

remembering Me alone at the time of death, he attains My Being; there is no doubt about this.”

We have heard and read this line many times. What does it mean? We have to remember that 

Krishna is not talking about his Form but the Formless Energy that he is – His viraat roop. Now, if 

one remembers the Almighty then these lines states that he will become the Almighty – So what is 

the question of the soul going through reincarnation again? It cannot be if he has remembered the 

Ultimate Reality and will merge into that. Krishna when he says ‘My Being’ does not been anything as 

a gross or subtle form – it will be formless. 

Of the same chapter (8), we go to verse 21 and Krishna says ‘What is called the Unmanifested and 

the Imperishable, That they say is the highest goal (path). They who reach It do not return (to this 

cycle of births and deaths). That is My highest abode (place or state).” This highlights that the highest 

attainment is enlightenment. Enlightenment means that the person transcends the cycle of births 

and deaths because a devotee reaches such a level that only God can reside in. The highest state is 

the abode of formlessness – that which is Unmanifested and Imperishable. Everything with a form – 

gross or subtle can be destroyed but that which has no form whatsoever can never be destroyed as it 

cannot be created – it simply IS. 

In verse 24 of the same chapter (8), ‘men who know Brahman go to Brahman.’ This highlights that 

once you know Brahman, the Supreme, the Ultimate, they merge into Him.

 As it is said in the Guru Granth Sahib ‘Brahm Giani Ka Sagal Akar, Brahm Giani Aap Nirankar’ and 

translates as ‘Brahm Giani pervades the whole manifest creation. Brahm Giani is Himself the formless 

Universal Lord.’ This shows us that the one that realises the Formless, Shiva, Nirankar they become 

the Lord Himself. This is guaranteed in the scriptures. If this is the Ultimate Realisation then we need 

to accept that we are not separate to God. God is in each one of us as the one who has attained Self-

Realisation pervades the creation and is the viraat roop himself – he becomes Krishna himself!

Now let us go deep into the element of Brahman. It is said that Krishna is The Supreme Personality of 

Godhead. Firstly, God does not have a personality. Osho says ‘I am trying to raise God. When I say 

there is no God, I mean there is no person as God, there is no personality as God’

Before we go into this quote, what does personality mean? It means ‘the combination of 

characteristics or qualities that form an individual's distinctive character’. This is the modern day 

version of what a personality means, however that is not the complete truth. Persona means a false 

mask, something that an actor does. A personality is the characteristics of an actor that he dons 

whilst in the role. God is not a made up role. Also, God doesn’t have a character. A formless being 

may have qualities but these qualities do not create a personality. A personality is something only 

humans have and it is unfair to say God has a personality as He is beyond all impressions and labels. 

As Osho says, we are trying to make God a human being and subjecting him to that means he has 

an ego, is jealous, manipulative etc. God doesn’t have thoughts the way we do. A passing thought 

is a passing shadow for the Lord. Osho does state that ‘The difference between the enlightened 

person and the unenlightened person is not of quality – they both are absolutely alike. There is only 

one small difference: that the enlightened person is aware; he recognizes the ultimate pervading the 

whole, permeating the whole, vibrating, pulsating. He recognizes the heartbeat of the universe. He 

recognizes that the universe is not dead, it is alive.’ We can see that God is not a personality. It is 

an energy that is very much alive. Osho then comes to the final conclusion, which is beautiful ‘God 

has to be freed from all concepts of personality. Personality is a prison. God has to be freed from any 

particular form; only then he can have all the forms. He has to be freed from any particular name so 

that all the names become His.’ We need to free God from our concepts and delusions. When we 

free our minds of that which we think is God then maybe god will come to us. We have to be open to 

the Divine so the divinity can enter us. However, if we fill ideas about the divine then we will miss the 

divine entering our being. The Divine being separate will not cause the permanent change that we 

may require. If we want stillness, calmness, peace then we need to attain in this form – the formless 

state. God is a state of being. 

Let us go into the Bhagavad Gita on chapter 13:

13. I will declare that which has to be known, knowing which one attains to immortality, the 

beginningless supreme Brahman, called neither being nor non-being.

14. With hands and feet everywhere, with eyes, heads and mouths everywhere, with ears 

everywhere, He exists in the worlds, enveloping all.

15. Shining by the functions of all the senses, yet without the senses; unattached, yet supporting all; 

devoid of qualities, yet their experiencer,

16. Without and within (all) beings, the unmoving and also the moving; because of His subtlety, 

unknowable; and near and far away is That.

17. And undivided, yet He exists as if divided in beings; He is to be known as the supporter of beings; 

He devours and He generates also.

18. That, the Light of all lights, is beyond darkness; it is said to be knowledge, the Knowable and the 

goal of knowledge, seated in the hearts of all.

19. Thus the Field as well as knowledge and the Knowable have been briefly stated. My devotee, 

knowing this, enters into My Being.

20. Know thou that Nature and Spirit are beginningless; and know also that all

modifications and qualities are born of Nature.

21. In the production of the effect and the cause, Nature (matter) is said to be the cause; in the 

experience of pleasure and pain, the soul is said to be the cause.

22. The soul seated in Nature experiences the qualities born of Nature; attachment to the qualities is 

the cause of his birth in good and evil wombs.

23. The Supreme Soul in this body is also called the spectator, the permitter, the supporter, the 

enjoyer, the great Lord and the Supreme Self.

24. He who thus knows Spirit and Matter, together with the qualities, in whatever condition he may be, 

he is not reborn.

As we can see that those that attain liberation, who know Krishna, will not be reborn. We see the 

qualities of Brahman here. We can see that God is a state of evolution and if we understand the 

metaphors, we see that he is continuously expanding his form yet his essence is formless. He resides 

within us and this is shown in the Upanishads: ‘Brahman is the First Cause and last refuge. Brahman, 

the hidden Self in everyone’ This shows us that Brahman, Krishna or whatever name we call it is in 

within everything. Therefore, if we are subject to reincarnation then so is Krishna. But since we have 

the opportunity to transcend the cycle of birth and death, we can attain salvation and be one with 

Krishna forever. It does not state anywhere here that when you achieve the highest state that you will 

regress back into the cycle. 

I will make my final point about mantras. I am not against reciting mantras but I do not feel it 

is needed to attain the Ultimate. Constance remembrance and remaining still in the meditation of the 

Formless can give us liberation. Nirankari Baba ji has said: ‘Through rites and rituals also we may 

achieve certain things, but not salvation. Salvation becomes possible by merging the drop of 'I' into 

the sea of 'Thou' only.’

As we can see that salvation is not through rituals. Even if chanting God’s name is a ritual, it will not 

give us the Ultimate. We need to become one with All That Is and after that, chanting His name and 

knowing Him is important. As we must remain in remembrance. The name isn’t everything, it is just a 

tool to create awareness of your supreme nature. 

The Avtar Bani (Nirankari scripture) states in verse 168:

He is the perfect True Master, who knows God - the eternal Truth;

The Master, who asks his disciples only to enchant a word, is imperfect.

What is the use of such a Master who can't remove one's doubts and delusions?

What type of enlightened saint is he, who does not feel the presence of God with him?

O' man, the True Master reveals God in a moment;”

Here we see again that it is all about knowing God and feeling His presence. It is important to find a 

Guru that can show you instantaneously without a question or anything in return. Chanting words will 

not get us anywhere unless we know the origin of that word – the origin of everything is Brahman/

Nirankar! 

In the Katha Upanishad it states: Blessed are they who, through an illumined Teacher, attain to 

Self-realization. The truth of the Self cannot come through one Who has not realized that he is 

the Self. The intellect cannot reveal the Self, Beyond its duality of the subject And object. They 

who see themselves in all And all in them help others through spiritual Osmosis to realize the Self 

themselves.’ Therefore, it is important to find a living Teacher who has realised that He is the 

Ultimate Self. As I end this essay here, I ask you to come to know the Truth. The Truth is not far away 

from you. As you can see, the basic philosophy of liberation, which is transcending birth and death is 

accepted in Hinduism and in the Bhagavad Gita. It shows that the expectations of ISKCON devotees 

is not to know the Ultimate Goal. My main thing against ISKCON is that it teaches rebirth and not 

salvation – therefore not the truth. It also states God being a personality but as we can see from 

the Bhagavad Gita itself that God is a non-being too which eliminates any possibility of a personality.

Real Financial Reform!!!

http://www.ft.com/cms/s/0/152ccd58-3294-11e4-93c6-00144feabdc0.html#axzz3CLWNUe1Y

It doesn't need a book by Mr. Martin Wolf of Financial Times or X number of articles to tell us what is correct reform. It can be summed-up in just 2 lines:

1. The CRR should be no more than 1:4
2. Debt should be punished and Equity rewarded not other way round

Finally, Printing Money should be a) the last option not the default one b) It should be completely under the control on Central Bank and not under the Investment Bankers as it is presently.

It's not complicated is it? But then, when all are controlled by the bankers (including the politicians, the central bankers, the consumers, the businesses) for different reasons, then we need tonnes of articles and books to understand what went wrong and loads of regulation to show that something is being done!!!

Regards,

Pradeep