96. DEMONETISATION: DEVIL IN THE DETAILS

96. DEMONETISATION: DEVIL IN THE DETAILS!

Picture of queue in front of RBI, Bombay during the demonetisation in 1978.At that time the denominations of Rs.1000, 5000 and 10, 000 constituted under 2% of the value of money in circulation! Such is the ravage of inflation that on the eve of the current demonetisation, Rs.500 and 1000 denominations constituted 86% of the value of money in circulation.
Picture: thanks, Times of India.

Demonetisation of currency which constitutes 86% of the value of money in circulation is a stupendous task, in a country like India with a huge cash base, which has a solid preference for cash transactions. Its replacement will not be easy or quick. That so called high denomination notes dominate circulation is a reflection of the continuous erosion in the value of the rupee due to inflation. That is, high denomination, but low value!

 But demonetisation is necessary to immobilise stocks of unaccounted money- it is the only way. It involves severe action, and cannot be done by goody-goody talks. Let no one be under any illusion. This is a bloody hard fight against criminals and gangsters. It is not for sissies.

Govt in a Jam?

The govt seems to be in a jam of its own making. The new Rs.2000 denomination notes would not solve the problem, as it would aggravate the demand for smaller denomination notes, due to the velocity of circulation, at every turn.. The FM says today that it would take 6 months to replenish the Rs.500 notes. This statement is a loose sally, and would worsen matters. People thought the situation would improve soon; the FM by his statement has removed all doubts to the contrary! It would only add to the feeling of restlessness and uncertainty. It reveals how unprepared the govt really was for this measure!  This statement could have been avoided.

Lack of preparation?

According to newspapers, the printing of the new Rs.500 notes started only after Nov. 10. If so, it amounts to no planning at all. This is indeed a very unfortunate and serious situation.My conviction of the stupidity of  officialdom is strengthened.Stupidity could not go farther! [We do not know who in the officialdom was really involved with this measure, if at all and at what level. Obviously, they had no idea in the matter!]

Apparently, somebody felt that the bright new Rs.2000 denomination would meet the immediate needs of higher denomination notes. It would not- for while replacement is a factor, fresh transactions are also a factor, and behind both is the need for smaller denomination notes for day to day transactions in the layers and cycles of daily transactions across the country. 

 From: The Business Standard

There are ways!

I am not for cursing darkness.

FM's statement seems to be made on the basis of the capacity of the Indian note presses. But in these days of globalisation, this need not be a limitation  at all, if one's mind is open. India got its note printed abroad earlier, including the Rs.500  note; it got its coins minted abroad. It can be done again. 

I do not blame the govt for lack of experience. In matters of demonetisation, there is no experience to learn from. But I certainly blame the govt for lack of imagination and creative response.

 Such a secret operation on such a massive scale could not have been planned with a big team. But with our banking and ATM networks, and information on how much cash flows in and out of the banks, and out of the ATMs each month, we could have fairly estimated the monthly requirement of hard cash, and then worked out the denominations. At least two months' requirements should have been kept ready, before the measure was announced.This is for normal requirements. Notes to replace the demonetised notes are totally separate, as demonetisation would create an abnormal situation and add to the demand. It is not enough to think only of replacement by a higher denomination , which is but step 1; we have to think of the subsequent need for smaller currency in exchange.

No one can expect demonetisation to be smooth- no, not all all. But it should get smoother by the day, not rougher. If the govt does not expect the Rs.500 denomination notes supplies to be adequate for six months, you can imagine the chaos that would result!

Demonetisation of the higher denominations is the most effective way to immobilise huge cash balances of unaccounted money. It cannot be allowed to fail.

If this measure fails now, there can never be another fight against the devil of black money at all in this country! Having begun, the govt should not falter. So what can be done?

What should be done?

The govt should immediately get large supplies printed abroad on a war footing. This is not easy, due to constraints of the paper with the required water marks , which are specific to the denominations. But it is not impossible, and we had done it in the past.[ The left parties and their cronies would make noise out of proportion, but they would shout, no matter what you do. Ignore them.] I would say:

1. Indian Presses should continue with the current or planned programs, with three shifts or full capacity. But they should not print more of Rs. 2000 notes.

2. Huge quantities of Rs. 100 and 500 denominations should be printed abroad and brought to the country as soon as practicable.

3. Once these notes are available, Rs.2000 denomination should be taken out of the ATMs. Or, if dispensed through ATMs, people should have a choice as to the preferred denomination.

Don't forget the long term goal

On a long term basis, both the Rs.500 and Rs.2000 denominations should be phased out and quietly withdrawn, with Rs. 100 denomination remaining the highest note. This will indirectly force people to avoid cash transactions of high value.This will also force the govt to rein in inflation effectively, so that money retains its value and the govt. its credibility.

 While this will not stop generation of black money, it will make storing it cumbersome.

This should be the long term goal and should never be overlooked.

Mr.Modi cannot be allowed to falter or fail!

Mr. Modi has bitten the bullet. Now, let him go the whole hog, with no holds barred. If this measure is allowed to falter or fail, not only Mr. Modi fails and falls, but our democracy will succumb to the power of black money  for ever.  India will become a banana republic- with corrupt politicians, family controlled parties sitting on tons of money, crony capitalists feeding them in bulk, bureaucrats helping them along, and petty corruption overtaking the land.These will be the people who will run the country. This should not be, in the name of the good  Lord.

Note:

The Supreme Court is hearing some cases and making remarks. I do not know whether it is proper to comment on it. But the decision to demonetise is govt's (Executive's] prerogative and it cannot be discussed in advance! I would say, cases are in queue in courts, and let the judiciary clear those queues first! How can we fight black money when a black money case against a political leader takes 18 years in our judicial system?

Demonetisation has to be a sudden and surprise move, and is bound to result in some  inconvenience . Citizens will have to bear it for some days. This is a war on black money, not a tea party.

All those who have cards or net banking should resort to these. Even groceries can be ordered on line. Those who have bank accounts can withdraw from their accounts, instead of going to the ATM. There are ways conscientious citizens can help themselves, each other and the govt in its mighty fight against the menace of black money. So far we heard empty rhetoric . Now we see action. It hurts now, but it will heal the economy and the country in the days to come.

95.BRAVO MODI. MARCH ON!

BRAVO MODI, MARCH ON!

The fight against black money has just begun, because it is now, after a long time, that we have a Prime Minister who is serious on this issue, and earnest in his approach, and means business. No one expects it to end in the first round, or easily, or soon.

Senseless Opposition's sound and fury signify nothing!

We should not care two hoots for the wily politicians who are now shouting against demonetisation. Just look at them: most of the parties are family fiefs; in popular perception they are all sitting on tons of black money. Karunanidhis, Jayalalithas, Mulayams, Lalus, Sonias,even Shiv Sena- all are perceived by the public to have huge cash reserves, even if all them have not been having formal corruption charges against them. [ Rahul Gandhi was even reportedly detained at a US airport in 2001 with his girl friend and huge cash  in US dollars for which he could not account; he was rescued by the then PM Vajpayee's advisor, who was a Sonia loyalist.Such people speak against demonetisation!]And though they all have political parties, all the money is controlled by family members, and not party functionaries. They cannot trust any one else with so much money. Apne saaye se bhi in log darne lage!

अपने साये से भी लोग डरने लगे
अब किसी को किसी पर भरोसा नहीं

 Those who  observed the elections know how money flowed those days. Hundreds of Tamilian workers in Bangalore went to their places in Tamil Nadu during the last election to cast votes and returned with cash: in Tiruvannamalai, Tirukkoilur area, they were paid Rs.250 to 300 per vote; in Pennagaram and adjacent areas, they were paid Rs. 500 to 600 per vote. This is open knowledge. Listen to their tales, and you know how the system operates! You may decide which parties were involved , depending on who won where! Where did all this money come from? 

Politics, Real estate, Cinema, Professions!

Politics, Real Estate, Cinema are the fields where black money flows like perennial river. In Bangalore, there are many high rise buildings which are not occupied but which have all been booked by people with money and who are waiting for the escalation in price, or just escalating the price themselves, if there are gullible buyers! All these are financed by our bankers. So, you know how the nexus works! During the secondary and every subsequent sale, part of the price is invariably taken in cash.This also is  common knowledge. It has become so common, no one cares and every one has to succumb.

Spectacular results already!

The demonetisation move is already showing spectacular results:

• It has already stopped the flow of funds to extremists- whether cross-border like in Kashmir, or the Maoists.
• In Bangalore, real estate bookings made during Dipawali have already seen 60% cancellation so far!
• Huge money already declared in deposits
• Sale of new gold/jewellery has dwindled; the main business now is exchange of old jewellery.
• With the decision to mark with indelible ink, queues are already thinning! The crowds were mainly due to hirelings, who went round to different bank branches to exchange notes with different identity cards!

Since money generated out of black transactions flows in and out of the regular economy, govt itself may end up as the loser in some cases. For instance, Karnataka govt has reported decline of Rs.6 crores in five days by way of  betting taxes in its commercial taxes dept.  Stamps & Registration, Excise depts too would register declines! This shows which sectors the black money was lubricating, mainly! More will surely surface!

Inherent difficulties in tackling black money

This is a problem facing any govt. Black money transactions are not a class apart. They are very much part of the system, like any rascal can dress like a gentleman! And govts themselves are often the beneficiary! This makes it difficult to target the black money transactions or holders with precision. But a govt with serious intent will have to start somewhere, and here Prime Minister Modi has done well. He deserves all credit.

In 1978, when the higher denomination notes[Rs.1000, 5000. 10,000] were demonetised, they were not in regular circulation,though legal tender, and only formed a tiny percentage of total money circulation.Rupee had value, and people did not need to possess or use a Rs.1000 denomination note which was really a high value note! Most people had not even seen them! So, it did not have an impact. The whole operation was over in a week! [ In fact, it was a totally unnecessary move, a fad of the then PM Morarji Desai, taken against the advice of the governor of the RBI] But now, the Rs,500 and Rs. 1000 notes are in wide circulation, used in day to day transactions by most people, rupee having depreciated in value,  forming 86% of the value of money in circulation.Replacing this in smaller denominations is a daunting task. That is why the general public is feeling the immediate impact. This cannot be helped, in a surprise move of this magnitude. Considering the advantage to the nation, and the honest tax payer, we as citizens must be willing to bear a little temporary inconvenience.

 In a way, the black money holders are holding the general public to ransom: they want to take cover behind the public. And our opposition parties are supporting them!

More measures are needed

But this demonetisation leaves our political and economic systems unchanged; the bureaucracy untouched; the scope for black transactions is left wide open. Which means that our politicians and shrewd industrial-business class and professionals may begin their next round with brand new currency, not to speak of petty corruption at the lower levels!

images.collections.in/blog

It is not for me to suggest the political and economic changes that would stop or discourage black money. But one thing is certain: it is the political corruption that is the root of black money.  I feel our political class is beyond correction or redemption, and the general public [electorate] is generally indifferent to the question of morality or probity in public life.  Our media will support whoever will give them advertisement. Corruption is part of our culture: even a birth or death certificate cannot be obtained without bribe! Registration of marriage too involves a standard payment ; the registrar is now the govt priest! While we may not end corruption or even limit the scope for it, we may attempt to render such acts more difficult to accomplish with cash! 

High Denomination currency should be phased out for ever: move towards less cash economy

1. There should be no notes in circulation, higher than Rs.100. If it is to remain in circulation and retain some value, govt will have to contain inflation seriously and really and not just manipulate the figures and fool the public! This will make the finance ministry accountable. Their babus will really have to work.

2. Rs.2000 denomination introduced now is a mistake and it should be withdrawn soon.

3.Rs. 500 notes should be phased out gradually.

3. If anyone feels the need for higher denomination, it should be in denominations of Rs.1,00,000 and above; they should be numbered and registered, issued over bank counters to their own customers; they should not be meant for general circulation. They should be required to be redeposited and not exchanged for lower denominations.[ This will facilitate genuine high value transactions without giving scope for black money]

The mere absence of high value currency notes will render high value black money cash transactions cumbersome and inconvenient. It will generally steer the economy to a cashless or at least less-cash mould. It may only be a small beginning, but will not be a minor achievement in a predominantly cash using economy.

Accumulation of huge amounts of paper currency will be rendered physically unmanageable, if not impossible! No one can hold or hoard unaccounted money in physical form. This may drive them towards precious metals, which is a perennial favourite. But it can be dealt with.

Well begun, Mr.Modi

I am not an admirer of the BJP govt. I strongly feel that this govt lacks an overall economic vision ["Make in India" is only a slogan,  like "Panchsheel", or "Non-alignment" and not a policy.] I also feel that it lacks solid political content , a strong Constitutional position and firm commitment. But it is the best we have in a long time, better than opportunistic, clan-based alliances. And it is still early days for a new dispensation after half a century of dynastic rule. So, it deserves some grace time.

 Demonetisation is a bold move and so will attract adverse reaction from interested quarters. Sri Modi should not dilute it under any circumstances. Standing in queues is not new to Indians and we can do once more for a truly patriotic purpose, for once! The difficulties connected with smaller denomination notes are temporary, and we had seen even days of severe coin shortages- when coins had to be imported.

Temporary difficulties exaggerated

Some people are simply exaggerating the difficulties which are purely incidental to the big , historical move and temporary.. There are 5 ATMs of different banks near my residence. On a given day, three of them do not work; two will not give you cash in the required amount; they will  probably not provide you the receipt. Yet, what do the lousy bank managements do, and what do people do? This is the experience even in the normal days. And we are facing an abnormal situation now.

There was absolutely no need for people to get panicky or finicky. Are we all so witless that we could not even manage a few days ? Why stand before the ATMs when we could go  to the bank and draw the cash? Why compete with those who must exchange their cash?

Opposition parties are wasting their time, though providing us with much needed comic relief! That they are wasting Parliament's time and our tax money is the reflection of their lack of perception, and disrespect for the public. Ignore them.That will teach them their place. Anyone who demurs on demonetisation is an enemy of the nation. 

We should all take a minute off, ponder on the magnitude of the problem, the historical, unprecedented nature of the solution, the need for absolute secrecy and surprise, the huge logistic problems involved- before any one of us dares to lift a finger against the govt. Any dull fool can find holes in any scheme, but how many can give a constructive solution?

If we feel strongly that black money is a serious problem undermining and threatening our economy, does it not behove us as honest citizens to come forward to help the govt with willing cooperation, despite some small inconvenience? Have we really starved for days for want of small change? And if we do not so feel,are we real citizens of this democracy? Does our job end only with voting and electing some fool of a neta?

Mr. Modi, we salute you

Carry on, Mr. Modi. All thinking Indians are with you. All true citizens are with you. Some of us may wonder how effective this measure will be to curb black money in the long run; but there is no doubt that it will immobilise  huge black money balances right now. Whatever the extent, it is a net gain to the economy. No Prime Minister so far had this courage.

thismyindia.com

We salute you, Mr.Modi, for this truly nationalistic initiative. 

94. DEMONETISATION: MODI MISSES A CHANCE

94.DEMONETISATION:
MODI MISSES A CHANCE

Prime Minister Modi's step in demonetising the Rs.500 and Rs.1000 notes is  bold . But as a measure to curb black money, it may not have much impact in the long run. It will hit ordinary citizens  hard in many unexpected  ways.

Instant Success

The PM has been sincerely pursuing the aim of curbing black money since he assumed office. But the decision to demonetise these denominations at this moment seems to have been prompted by one supreme consideration: the realisation that fake Indian currency of these denominations printed in Pakistan was funding the extremists, whose activities were rising in Kashmir.The fake Rs.500 notes had increased by 46%, and Rs.1000 notes by over 100% in the last 5 years. Modi's measure has hit this surgically. This in itself is a great achievement.

Modi govt has not sufficiently highlighted this fact.

Now, the real problem

But black money is a different, and more difficult, matter.

First, officialdom does not have a proper idea of black money, or its extent. 

Properly speaking , money is not black or white. But the transactions which it finances can be termed black [ illegal, unethical, anti-national,-like smuggling, drugs, arms, underground, etc] or white [normal commercial transactions.] Broadly, we may say that money which is derived from illegal activity ( eg bribe) or for which tax has not been paid is black. However obtained, money does not stay put as black but gets into the main flow and integrates with the economy fully. My boss may  pay me salary out of income concealed from tax, but in my hands it is legitimate and it goes on its further course to finance many more transactions. Will you dub all this as black money because the initial money was black? Then where will you draw the line? How will you mark the note as black?

Black money in the world

Black or unaccounted money is a reality in all economies; only the extent varies. But it is not an animal easy to seize or tame. We know it by what it does, but we cannot catch it at any point.

From: Power Learning Hub

Black money always bad?

Economists will say parrot-like that black money is bad for the economy (as if economists are good!) But in a country like India where the informal sector contributes 47% to GDP, and 80% to employment, the black money actually provides liquidity to the system, which does not depend on the wretched banking system which does not help the petty traders, or the small and medium enterprise.

High denominations facilitate black transactions

There is no doubt that the presence of high denomination currency notes facilitates transactions with unaccounted money. But it does not mean that the money is always kept in the form of hard currency, or for long. It is converted into other forms: may be real estate, jewellery, expensive art, lavish lifestyle, fabulous home decoration or furnishing, etc.

People are encouraged to resort to banking, on line transaction, net banking,card payments etc to reduce the use of cash. But even in such societies, black money exists.

Black transactions will not go, just because some denominations go! But they will be increasingly difficult if higher denominations go.

The presence and availability of tax havens and secret banking services ensures that black money can now be taken out of the country and put in safe havens. And there is international guidance and expertise in the matter.

High taxation creates black money!

One inducement to evade tax is the brutal rates of taxation. This is an invitation to intelligent accountants and managers to simply outwit the system. It is therefore no surprise that England which has a high rate of tax  also reports large number of black money holders abroad! See this report for England:

In 2010 a new top rate of 50 percent was introduced on income over £150,000. A predictable result of this was for people to disguise their income and revenue to the Exchequer to go down.^[11] In the 2012 budget this rate was cut to 45 percent for 2013–14, which was followed by an increase in the tax paid by additional tax rate payers from £38 billion to £46 billion. Chancellor George Osborne said that the lower, more competitive tax rate had caused the increase.[Wikipedia]

It has thus been found that a lower tax, and steady system with honest administration will actually increase revenues!

When Indira Gandhi held the finance portfolio, the maximum income tax rate was 93%! Will any sane person resist the temptation to show the devil its place? 

Avoiding Tax: national pastime!

In India, the tendency to avoid or evade tax is widespread at all levels. The petty electronic shopkeeper will oblige you by not giving a bill, so that you save the tax! So many traders do not pay sales tax.All the money so saved is black money technically. Do you suppose all this money is stored in high denomination notes, all the time?

Think of all the doctors, lawyers, teachers conducting coaching classes in batches, persons often with political connections running schools and colleges, etc all earning huge incomes but not paying taxes! Earning such unaccounted money is a national enterprise.

Ingenius ways!

There are ingenius methods to generate black money or convert black into white. Two instances I observed in Gujarat. In the 70s most textile mills had their own showrooms in Ahmedabad. But I found that even in the showrooms certain types of cloth would be stamped "Seconds", or would be sold in pieces. I came to know that it was the way to avoid tax at higher rates, and also to beat the corrupt tax administration.

Then in Surat I saw another phenomenon. There were some nice AC movie theatres, some better than the ones in Bombay. But they were mostly showing old Hindi movies. I was curious. Were these Surtis so fond of old movies, really? I attend two/ three theatres and found the audience so thin- hardly more than 100 or so! Then why were they running those movies? Knowledgeable friends educated me: the theatres would declare the show "houseful", pay the entertainment tax and lo, the rest of the unaccounted money becomes white!

But what politicians do beats everyone. Here, Congress Party is our guru and devta, priest and patron, model and mentor. Indira Gandhi was the High Priestess and Chief Goddess. She toppled state govts through money power- the money she paid to some MLAs to topple Hitendra Desai govt in Gujarat was actually brought to the House and dumped on the desk of the Speaker! Indira Gandhi said corruption was a "universal phenomenon". Who could argue against it? So, Indira introduced Globalisation long ago!

There had been corrupt elements in the Congress before Indira- even Gandhiji complained of it in 1939, saying it was ruining the country. But it had been like an underground gutter. Indira brought it to the surface, made it a wide open nullah like it ran through parts of New Delhi, became an adept dealing with it, and made it fashionable. It became mainline. It has remained so ever since.

In Tamil Nadu. Karunanidhi as CM set up a record in corruption, attracting the Sarkaria Commission ( but only to suit Indira Gandhi).and its adverse comments. Now we have several editions of Karunanidhi in other states, with perhaps not enough Sarkarias! 

Problems for the common man?

That all opposition parties are criticising this move shows how their interests are vitally affected ! The difficulties people face now for currency notes are purely temporary,due to the surprise nature of the move; and as good citizens we do not mind it all; but for the politicians it is a big blow and I rejoice in it!

The common man will be hit hard if the black money holders switch to precious metals and real estate in a big way, thus sending up the demand and prices. Then the only hedge available to him against inflation, and the only long term source of financial security will be compromised.

Perennial streams of black money

Two categories of people generate black money in unceasing streams: politicians and businessmen-industrialists. And all of them have found ways to keep the money abroad. No govt or agency is even able to estimate how much it would be, though every  one says it is enormous, astronomical.

In February 2012, the director of India's Central Bureau of Investigation said that Indians have US$500 billion of illegal funds in foreign tax havens, more than any other country.^[4][5] In March 2012, the government of India clarified in its parliament that the CBI director's statement on $500 billion of illegal money was an estimate based on a statement made to India's Supreme Court in July 2011

The point is, with so much held abroad, what would demonetisation achieve in India?

Why Rs.2000 denomination ?

Some people would surely be left with these old notes rendered useless now. But  their appetite and  capacity for making more in new notes will be left in tact, and even sharpened! The Indian political and economic system is not going to change because of demonetisation! Our bureaucracy is not going to change! These are enough to make black money comeback! Modi has unwittingly facilitated that by introducing a new higher denomination in Rs.2000!

This indeed defies logic. The ideal way to stop the parallel economy and generation of black money is to ensure that  business transactions are made to leave a record or footprint, which cash transactions do not. Payment by cheque, on line settlement, card payments, etc would facilitate that. But this is not achieved by merely exhorting the people. We must provide facilitating instruments and avenues, and limit or frustrate opportunities for cash payment. The absence of high denomination notes will surely frustrate cash transactions, except the essential ones. Modi could have stopped with demonetisation of the two denominations. That would have compelled the people to realise the difficulty of settling high value transactions in cash and indirectly compelled them to take to other means. By providing a new higher denomination, Modi has frustrated his own long term goal and opened up opportunity for fresh bout of black money.

The problem for the common man is the non availability of smaller denomination notes for day to day transactions. The two demonetised denominations constituted 86% of the value of currency in circulation, and it will be some time- months- before some ease is felt. It is not easy to replace this volume with smaller notes. But the introduction of Rs.2000 denomination will only add to the problem: while ATMs and banks may merrily dispense them, people will run from pillar to post to have them exchanged into smaller denominations for simple day to day transactions, which even banks may not have. We faced problems even with the ATMs dispensing mainly Rs.1000  and Rs.500 notes; the difficulty is bound to be more with the higher denomination, for the common man.

In the UK, the highest denomination bank note is 50 pound sterling.

In the US, the highest denomination is $100.

In Germany, the highest denomination is DM 200. [Higher denominations are rarely used.]

Why then should India have such a note in Rs.2000 denomination, if the govt is serious about discouraging the use of cash for high value transactions? 

Given the govt's record and commitment in containing inflation, with the Rupee falling continuously in value, may be Rs.500 denomination is necessary ( which is less than 100 rupees of thirty years ago). But why Rs.2000? It is surely an unsound step. Modi has missed a real chance to introduce a long term effective reform.

Our officialdom seems to grow in bulk, complexity, stupidity and decay, and not in wisdom.

Good intentions gone awry due to faulty implementation.

I am really sorry for Modi.

Note:
Since money by itself is not black,  those who hold unaccounted money in the form of high denomination currency do enjoy some natural protection in the system; to put it the other way, any one having high denomination notes now has to prove that it is not black money! To this extent, the honest citizen is harassed. But then, it is so with any step to control extremism too! Now, each one has an identity tag with a number, like prisoners alone used to have in olden days, and even  travel  within the country is not pleasant or possible without it! Yet, how many do complain?This is the price we pay for our freedom!

90. DO SAINTS HELP?

90. DO SAINTS HELP ?

Faith in Saints is a universal phenomenon. People in all societies at all times have believed in Saints. They have looked up to Saints for help to tide over troubles and to attract good tidings. Curiously, even those who don't believe in God venerate Saints. Looking at the continued faith people display, there must be substance in the claim on the efficacy of prayer to Saints. 

Saints in Christianity and others

Among Christians, it is mainly Catholics who believe in Saints. They believe that Saints have the power to intercede with God or Christ on our behalf. They also have Saints for specific functions and purposes; they have a system of patron Saints for each nation. Protestants do not believe in Saints, though individually they may honour them. Muslims have their equivalent of Saints in the holy men buried in their Dargahs and some of them attract huge crowds of even non-Muslims in India.

Indians (Hindus ) have implicit faith in all holy men and they have a tendency to call anyone appearing holy as a Sant or Saint. They in fact venerate all holy men, regardless of faith.

With the spread of secular education, people have other heroes among movie stars, sports stars and politicians. Saints have been replaced by supermen. In more simple times, common people had implicit faith in Saints and turned to them in prayer in difficulties. 

Even a romantic poet like Coleridge expressed this sentiment in Christabel:

Saints will aid if men will call
For the blue sky bends over all.

Catholics v.Protestants

The cult of Saints was actively promoted by the Catholic Church. It is an important string to their bow. It is still at it, periodically adding to its army  of Saints and its array of their pictures/statues. But other Christians never shared this fascination for saints. Protestants believe that each Christian can directly read the Bible and approach Christ and that they do not need any intermediaries. In fact, for them, each (true) Christian is a Saint!

 George Herbert, the metaphysical poet of the 17th century [ whose influence is felt on such diverse modern poets as Coleridge, Emily Dickinson, Emerson, G.M Hopkins,T.S.Eliot, W.H.Auden, Robert Frost ] went so far as to characterise Pope himself as the Antichrist. As the article in Poetry Foundation notes:

Herbert seems to align himself with the apocalyptic Protestant militants of late-sixteenth- and early-seventeenth-century England as he energetically and somewhat venomously satirizes the pope as Antichrist, Rome as "Western Babylon," the Jesuits as the Devil's army, priests as crafty wizards, and Roman Catholicism in general as a religion of shameless glory rather than grace. And England is by no means a secure fortress: reformed though it is, the British church is all but ready to succumb to the darkness that has afflicted all previous churches. 

The situation was so bad, felt Herbert, that he wrote a poem saying the true Church was ready to leave England and flee to America!

Religion Westward Bent

By George Herbert (1593–1633)

RELIGION stands on tip-toe in our land, Readie to passe to the American strand. When height of malice, and prodigious lusts, Impudent sinning, witchcrafts, and distrusts, (The marks of future bane,) shall fill our cup         5 Unto the brimme, and make our measure up; When Sein shall swallow Tiber, and the Thames By letting in them both, pollutes her streams: When Italie of us shall have her will, And all her calender of sinnes fulfill;         10 Whereby one may foretell, what sinnes next years Shall both in France and England domineer: Then shall Religion to America flee: They have their times of Gospel, ev’n as we. My God, thou dost prepare for them a way,         15 By carrying first their gold from them away: For gold and grace did never yet agree: Religion alwaies sides with povertie. We think we rob them, but we think amisse: We are more poore, and they more rich by this.         20 Thou wilt revenge their quarrell, making grace To pay our debts, and leave our ancient place To go to them, while that, which now their nation But lends to us, shall be our desolation.

May  be this was prescient, as we saw in the last article that religion is more alive in the US than in the UK today!

Can Saints help nations?

This raises a question: do saints help nations, as they seem to help individuals? If they can save people, why not their nations? After all, each nation has a Patron saint!

This is difficult to answer. Historically, the so called Christian nations have fought among themselves, even as the Christian sects savagely fought one another. The two world wars were fought mainly by Christian nations and there were followers of saints  among both winners and losers!

AS for India, we can say that for all our faith in the Saints, we as a nation have done very badly. There was a time when the South was full of roaming saints- Alwars and Nayanmars , who  inspired the Bhakti movement and the Bhagavata Purana. However, for the last 1000 years, foreigners have dominated and ruled over us. Alien religions  and anti-religious [ mainly anti-Hindu] rhetoric are making steady inroads here. 

Yet we can definitely point to several saints who protected the people. At the height of Muslim invasions, we had a succession of saints who spread the Bhakti movement among the people. They simplified our lofty (and at times knotty) philosophy and sang in the regional tongues,thus bringing the common man solace and comfort. 




We had two saints who were instrumental in creating the two last great Hindu kingdoms and stalled the march of the Muslim hordes for over  three centuries.

Vidyaranya  was instrumental in creating the Vijayanagar Kingdom.

 Samartha Ramdas  inspired Shivaji Maharaj and his Swaraj of the Hindus.





 
Modern Indian experience


But when the British came, none could help us, it seems.

Calcutta was the British capital in India, till 1931 . But Calcutta was also the Capital of Hindu renaissance and resistance! Few Indians realise this today. Bengalis had deep Hindu fervour and the three major sects- Shakta, Vaishnava and Shaiva worship flourished there, even under the Muslim nawabs. The British were more subtle: they left the work of  direct conversion to the  Christian missionaries but slowly poisoned our minds through an educational system introduced in 1836.

Ramakrishna stops Christian onslaught

 But soon thereafter, Sri Ramakrishna appeared there. He taught Hindus how their religion was eternal [Sanatana], how the teachings it contained were all true and valid still. Though not educated formally, and not knowing English, Sri Ramakrishna attracted many educated youngsters and commanded respect from the educated sections of Bengali society! He had tremendous impact on English educated Bengalis who had felt attracted to European ways.

Vivekananda and Hindu Nationalism

 His English-educated chief disciple Vivekananda went to America and in the Parliament of Religions there at Chicago he preached in the name of the most ancient religion of the World- Hinduism. This was on 11 September 1893. This electrified and rejuvenated the whole country and Hindus everywhere.


This inaugurated and inspired the saga of modern Hindu nationalism. Earlier, Bankim Chandra Chatterjee had captured our minds and hearts with the song Bande Mataram. Swami Vivekananda reminded us that religion/spirituality constituted the very essence of Indian life and national existence and if we gave up our religion and spirituality and took to social reform , India would fall within three generations.

Nationalism as Political Agenda

Sri Aurobindo, Sept.1907

But real Nationalism in its political spirit started with the trio of Lal-Pal- Bal. However its true authors were Tilak and Sri Aurobindo. It was, above all,  Sri Aurobindo who furnished us with a philosophy of nationalism, clearly declaring that "Sanatana Dharma- that is nationalism for us" ( Uttarpara speech-  May 1909 ) He said that if India was rising, it was for the sake of Sanatana Dharma. The country was reverberating with the cries of Vande Mataram.

Brutal British Suppression

But the British brutally suppressed the movement . Tilak was imprisoned in Mandalay, where he languished for six years, and Sri Aurobindo himself was in solitary confinement in Alipore jail for a year, implicated in a false case. The British magistrate acquitted him but soon he left politics and took to spiritual sadhana, settling at Pondicherry, then French territory.

Gandhi's Kichdi

About a decade after this Gandhi entered the scene. He took up too many things and failed in everything, leading to the partition of the country. His chosen heir, Jawaharlal Nehru mauled our economy in the name of socialism. He gave a decidedly anti-Hindu slant to his policies in the name of secularism, and the Hindu springs of our nationalist movement were forgotten/ deliberately suppressed. Today, in the name of Secularism, India is not even a Hindu country, though 95 crore Hindus live here and have it as their Motherland. If we simply repeat the words of Sri Aurobindo now, we would be called fundamentalists!

Pre-Gandhian leaders obliterated

The rulers of Independent India have completely obliterated the  Hindu spiritual fervor of the earlier nationalists and perpetuated dynastic rule, favouring minorities, thus acting as the Trojan horses for Islam and Christian interests! The textbooks followed in the govt controlled educational system are written by leftists who do not cover the pre-Gandhi-Nehru era adequately or appropriately. Even Subhas Bose is sidelined. Thus most of our youngsters have no chance to learn about the true origins and foundations of Indian nationalism.

In the circumstances,  may we  say that Saints have failed to protect Hindus collectively, or promote the cause of Hindu nationalism? Without these  : Sri Ramakrishna-Vivekananda-Sri Aurobindo - India would not be India; yet they are not even widely known except in closed, limited circles. They have become just cult figures, not national heroes in Independent India. We have failed to honour them as the Founders of true Indian nationalism.

Nasty games in the South

In the South [ especially Tamil Nad ] we have a different stream. Here, the so called Dravidian forces gathered strength on a wave of anti-Brahmin hatred, initially based on the false Aryan-invasion theory and the apprehension that if India became free, the influence of Brahmins would rise, as the educated Brahmins were in the forefront of the freedom movement under Gandhi. The movement had thus a double edge: anti -freedom and anti- Hindu. The anti-freedom idea lost force once they tasted power, and they have been controlling the reigns of power for half a century now!  Like the Central govt. at Delhi, they too have effectively blacked out the founders of Indian nationalism. But the anti-Hindu stance has not lost its vigour, first in the guise of anti-Brahminism and now in the name of secularism! 

Mahaswami of Kanchi

Amidst all this turmoil, there was the Jagadguru of Kanchi, Sri Chandrasekharendra Saraswathi, we all simply call Mahaswami or Paramacharya, standing like a rock. He adorned the Mutt for 87 years [1907- 1994]. He set a personal example in austerity, tapas, simplicity and wisdom. Seyyed Hossein Nasr, an internationally reputed Muslim scholar and Vice-Chancellor of Teheran University said after  meeting Mahaswami in 1970:

To behold the presence of His Holiness the Jagadguru, and to be blessed by the privileges of the fresh breeze which flows from him and which extinguishes the very fire that separates man from God, is to realise that the divine freedom manifests itself where it wills. In Kanchipuram one feels the proximity of the Light which as a Muslim , I have experienced near Muslim saints.In the eyes of the Jagadguru, the silence of the Eternity of India which is immutable and eternal like the peak of the Himalayas, shines and penetrates into the very heart where presides the throne of God. Through his glance, the heart becomes suddenly transmuted alchemically from a piece of flesh into a jewel that reflects Inner Light and Illuminates the whole from within.

The Mahaswami stressed the necessity of revival of Vedic learning, adherence to Dharma, and adoption of a life of simplicity and service.

The Swami's message to politicians/legislators


 On India attaining Independence, some legislators and politicians approached him for a message. He gave them two- one in general terms, and one specifically on what the govt ought and ought not to do in the matter of religion. The politicians suppressed the second message. It saw the light of the day after 50 years, in 1997, three years after the Mahaswami had passed away! In these fifty years all that the swami said should not be done had been done! The result is that the so called independent secular Indian government is even more inimical to Hindus than the British ever were! Thus though thousands have benefited by blessings from the Mahaswami,  Hindu nation as such has not derived any benefit or protection.

photo: thanks, Sage of Kanchi.

[The Swami's message can be read in Tamil in the 7th volume of the Publication, "Deivaththin Kural " ( The Voice of Divinity )]

I therefore feel that for some reason, saints do not seem to affect the fate of nations, in the short run, or directly, anyway! In any case, as we would like them to do!

[ Care: Coleridge says Saints will aid if men will call! We do turn to saints in personal distress; do we invoke them when we have a national problem or collective need? Do Hindus even have a collective consciousness?  We have no system of congregational prayers! So, may be, we can't fault the Saints, after all!]