Durbin's "windfall profit tax" is a lot of hot air

Senior Senator Dick Durbin of IL has proposed something called a "windfall profit tax" to cap the profits of oil companies and help ease the burden on the public reeling under the pressure of high gas prices. Now, what constitutes as "windfall profit"? Who will define that? And, why restrict it to just oil companies? Why not apply this to all companies? It would be interesting to see how this will apply to software companies after all the incremental cost of a software product is close to zero.

Why can't the good senator and his likes think of things that make sense and are within their control like improving the public transportation infrastructure (rather than giving free rides to senior citizens and the homeless) or increasing the fuel efficiency requirements on vehicles. Heck, all those require time, effort and will not have the same effect on the public as "windfall profit tax". We all need someone to be the "bad guy" and it is easy to paint the oil companies (and, in other occasions, the Chinese companies) as the "bad guys."

I guess it is guys like Senator Durbin who make sure that Chicago's legacy as "the windy city" lives on. Got to love him for that.

White lies or half truths?

The photo on the side is from BBC on an article on reservations. I like how BBC chooses its words to make this look as if Indians are against poor people having opportunities. I guess they feel that the so called "backward" classes are economically poor.

BBC does its best to keep the spirit of the Raj alive. To them the Kashmir terrorists are always "militants" (within the quotes). The government reservation is to help the "untouchables" and now, the "poor." I guess they do not know that yadavas are considered "backward" yet Krishna, a yadava, is one of the more popular gods. And, some of the rich Indians are still beneficiaries of the government reservation program(s).

Reservation in India in the form it is implemented is not about social equality or opportunities for the poor but creation of vote banks. As a famous Brit (that would be Maggie Thatcher) once said - the job of the government is to create opportunities, not provide handouts. I bet majority in India will agree with that sentiment.

'Free Tibet' flags made in China... I told you so

BBC NEWS | Asia-Pacific | 'Free Tibet' flags made in China

I had a chuckle reading this one. I had remarked about similar stuff in my earlier post on Olympics

Mugabe rival 'clear' winner but who won Florida in 2000 is unclear - US

BBC NEWS | Africa | Mugabe rival 'clear' winner - US

Jendayi Frazer must be some kind of super human to know how Zimbabwe voted. Independent Zimbabwean monitors who were on the ground say Mr Tsvangirai gained 49% of the vote - just short of the threshold for outright victory - but more than President Mugabe. My guess is Zimbabweans know better. It is amazing the level of meddling US and UK do in the affairs of other nations.

I was heartened to see the Indian external affairs ministry give the US a fitting reply when they tried to advise India on topics for discussion during the upcoming visit of President Ahmadinejad of Iran.

Hypocrisy on Olympic scale

Suddenly the whole world seems to have woken up and is angry about China's human rights record. They are now hell bent on making noises before the Olympics. The last time I checked, the site of the 2008 Olympics was decided way back in 2001. So, where were all these people, government and agencies back then? It is not like China has changed. If anything China has stood its ground. In the last six years the western firms have made good money putting up the infrastructure for the Olympics. So, why now? Couldn't their conscience lie dormant for a little more?

US speaker Nancy Pelosi decided to complain about Chinese actions in Tibet while on a visit to India even though the Indian government which hosts the Tibetan government in exile decided not to make noise. I wonder how the US would react if a visiting Indian head of state decides to praise Cuban healthcare system?

If the world was really upset about Chinese occupation of Tibet or the lack of democracy then China should not have been offered the 2008 Olympics. We all want the cheap stuff from Chinese sweat shops. Why worry about someone else's freedom and liberty? BTW, are the "Free Tibet" t-shirts and stickers made in China?

Earth Hour in India ?

Today at 8pm Central Chicago is supposed to go dark for about an hour. The whole "Earth Hour" concept is gimmicky but gimmicks catch attention and something is better than nothing. I checked the Earth Hour website to see if any of our desi cities were participating in it - None. Then, I realized that they are the pioneers in the concept but they never branded it - they just called it load shedding/ maintenance outage ;) Someday they too will call it "earth hour(s)" or "earth day(s)".

Getting everyone to reduce their energy consumption on a daily basis is hard esp. when we cannot let go of our laptops, broadband connections, flat screen tvs, cellphones and iPods. I left the cars and SUVs here because while they get the rap for global warming the biggest culprit is electricity (See Vinod Kholsa's presentation). Would you unplug your flat screen tv because it contributes to global warming or would you rather watch planet earth on it in high-def?

Tata Ambassador... now Tata is the Ambassador

Tata Motors have bought the Jag and Land Rover brands from Ford. And, folks in India called it "Empire Strikes Back!”. Folks here called it a case of former colonies being obsessed with sticking it to their former masters. Well, it is not what you got that matters but it is what you do with what you got that matters. So, let us see what Tatas do with these two brands - yes, they are just brands. If they were making good vehicles then people would be buying them. Building a brand is hard.

If you are wondering, what the Ambassador had to do with the rest of the article. Nothing. I just liked puns- good/ bad and everything in between. I guess it is time to say "tata" (who says bye-bye in India) to Ambassador and welcome Tata as the ambassador - the ambassador of brand India.

Bear Stearns ...why can't "market" bear and grin?

I am a bit (actually, more than a bit) amused by the Bearns Stearns issue and bailout. Here is the deal - if Bears Stearns is a failed company then so be it. Why should the tax payers bear the risk and JP Morgan walkaway with a great steal all in the name of national interests. Did Bear Stearns or other firms ask for government or tax payer permission before they gave away the nice bonuses? To be fair I don't think they even requested to be saved. JP Morgan and Wall Street suit types are funny - Bear Stearns deal was "fair" at $2 and then a few days later it was "fair" at $10. What is fair is to let Bear be - see if it can survive. If it dies, it was meant to be - greed did it in.

So, why does the government care now. And, is n't this and every other solution for the current crisis tackling the symptoms without addressing the root cause. I have seen a lot of this in India - usually for public sector (government owned) companies. There the reason was very clear - politicians need to win elections, to do so they need votes and these public sector undertaking represented nice large vote banks. While they may have also justified their actions as "protecting national interests" they never preached capitalism.

Right and Wrong about Wright and Rezko

Last Friday as I was returning from the airport I heard on the news that Presidential candidate Obama had condemned the comments made by Rev. Wright and apologized for errors in judgment in his dealings with Tony Rezko.

The funny thing is I never heard the Tony Rezko issue mentioned again in the media. Here is a case where the candidate who says, "Being right is more important than being prepared" (Is a "right" liberal any better than a "right" conservative? We have one claiming victory in Iraq) saying his real estate dealings with Rezko was not straight and that his campaign had got a lot more money through Rezko than originally claimed. I guess nobody cares about such trivial matters.

Instead, everyone jumped on speeches made by Rev. Wright about 5 to 7 years back. And, gave the Illinois senator a nice photo op and speaking engagement that left lot of the media pundits teary eyed. What is the big deal about what Rev. Wright said? He was expressing his opinion. And, everyone is entitled to one. He was not instigating violence or other subversive methods. He is entitled to his view on 9/11 (and, he was not blaming the victims as Chris Matthews said. He was blaming the government). He is right about Hillary not knowing what it is to be black (he used the N word) in America. Similarly, Obama has no clue what it is to be a woman in America. Both of them have no clue what it is to be a brown skin in America. If you believe in "God Bless... <>" why not "God damn ...<>"

Senator Obama has no control over what someone else says. But, he has control over his actions and dealings with folks like Rezko. Obama may not represent "same old Washington politics" but why do I get this feeling that he represents "same old Chicago politics." I am not sure which one is worse.

P.S: Geraldine Ferraro is a brave woman for not backing down. And, she may have a point here. Reminds me of the Oscars a few years back when Denzel Washington and Halle Berry won. Do not get me wrong, both are great actors but the way the media created the buzz and called it made me wonder if they were getting the prize for their effort or if someone had decided that this is the year.

In support of ICL and IPL

Finally, market forces are emerging in Indian sports and it bodes well for sports in India. Of late, a lot has been written and said about Indian Cricket League (ICL) and Indian Premier League (IPL). A good number of them have expressed their opposition to the "auction of humans" and the "high price".

In B-school there is question that is asked often - "What is the value of a company?” The only right answers to it other than "it depends" is "what ever the market is willing to bear. If SRK spent $80 million on his team, it is because he is hoping to make more than that. If he and other investors do not make good on their investments because of either team performance or drop in advertising revenue they are going to act on it. I am sure soon they will have NFL like trading, salary caps and scouting.

I like the idea of ICL and IPL because for  -

1. It takes cricket into realm beyond national teams. Of course, there is nothing new about that. The English cricket league already does that. However, now you have this happening where it matters. This is to cricket what the European soccer leagues are to soccer.

2. It makes compensation visible. It is to some extent "pay for performance". These people are not only paid for their skill but also their ability to bring in money. They are part salesmen, part gladiators.

The fact that the hard numbers are in the open makes it easy for everyone to compare. It is bit like "lobbying" vs. "bribe" - both may be undesirable but first one is better because information on what was paid and what was received is out in the open and is taxable. I think the numbers may come down as the talent pipeline (Point 3) increases unless ICL and IPL have a truly global following.

3. It generates new talent pipelines. We now have two new international leagues in addition to the national cricket team. And, each league has a number of teams. To fill these teams you will need talent. It gives opportunities for talented Ranji and college players to move up. And, hopefully this will improve the pool and the access to opportunities.

4. You finally have some cool names. Other than the New Zealanders who were referred to as "kiwis" (thanks to a flight less bird), none of the national teams had a cool name. Now, we have a chance for some interesting names (though, I must say I have been disappointed with the current set). My award for the best name for any sports team that I have come across goes to Mambalam Mosquitoes. I have never seen them play but growing up in Madras I had heard a lot about them. But, talk about making lemonades of lemons. So, why not Chennai Chimps? I have some nice headlines ready - "Chennai Chimps are the Champs" or "Chennai Chimps Chomp the Competition".

What can "brown" do for you?

I work for a small two year old company - about 60-70 people. When I joined there were fewer than 20 people and I was the first hire of desi origin. Last year I hired another guy of desi origin (a Pakistani guy). Together we are the IT department for the company.

It is amazing how often folks refer to us or call us by the other person's name. And, it is not like our names sound similar, start with the same alphabet or that we look similar. There are a few repeat offenders. It has gotten to a point where we use the UPS line on them - "What can brown do for you?." I guess to them we are two brown guys for the most part.

Rooting for normalcy

I like many others was dead against US military action against Iraq. It just was not right whether the reason was WMD or bringing democracy to the region. There was very little evidence supporting the first reason. As for democracy, I believe it may not work in some places and when people are ready for it they will clamor for it. Implementing democracy by military action is quite stupid.

After the military action there was a time when I kept tally of civilians (or, should I call it what Madeleine Albright called - collateral damage) and military personnel killed. After a while, I started feeling sorry for both. The military because I bet they never expected to be fighting this war. The civilians because back in Saddam’s days, they may not have had democracy but they knew who the enemy were. As long as they kept their mouth shut and a low profile, they had a job and life. Give me liberty or give me death sounds great but life triumphs liberty. As long as there is life, there is hope.

Now, when most of the original groups against war want the US troops to come back I feel the other way. US presence gives Iraq and the region a better chance for normalcy. There was an article in the Newsweek about how Americans are taught very early in life about cleaning up their mess - Iraq is our mess. I wonder if the folks who want the troops back now would feel the same way if things were going great in the US (economically) and /or in Iraq (politically). Going into Iraq in 2003 was wrong and leaving Iraq anytime soon will also be wrong.

A few weeks back I happened to listen to Parag Khanna, author of "The Second World" talk on Foreign Exchange (BTW, what is with desis/BBCDs/ABCDs and foreign affairs - Farred Zakaria followed by Daljit Dhaliwal?). He claims to be advising Barack Obama on foreign policy. According to him, splitting of Iraq is "inevitable." He said it with such nonchalance that it made me wonder how he would feel if his home country was attacked and broken into pieces. Of course, he like many others know that it is unlikely to happen. Afterall, there is a large ocean separating it from the rest of the land mass where the problems are. I am no expert in geopolitical stuff but if Iraq splits it is likely to involve at least Turkey and Iran in the mess. Afghanistan and Pakistan is already a mess. So, we will have instability in all countries between Israel and India. These two countries will probably see more terrorist incidents after all they do not have any buffer zone.

I had a few friends tell me - "Why bother about Iraq? After all, we did not give a damn about Rwanda. And, see Vietnam did well without us." Rwanda was not a mess that the US created. As for Vietnam war, it was a war of political ideology. Both, Vietnam and its backers were keen to prove that their way is better. So, there was a will to win even if it was to be an empty victory.

This TEA can now vote ;)

Yes, this "Third World Economic Adventurer" (TEA. I think I should copyright this) earned the right to vote in this first world country today. And, I believe that bad politicians are elected by good folks who don't vote.

The oath ceremony was short and well run - 141 people from 32 countries. The clerks at the ceremony were very warm and professional but most immigrants were either too grumpy or occupied by the weight of the occasion that they failed to respond to the normal niceties. The judge made a nice short speech on naturalization comparing it to blood transfusion. I guess that might explain some people's opposition to it. I have to fully agree with the judge that there is probably no other country where you have people from so many nations.

Morocco... where desis are welcome

During the December holidays, I went to Morocco - my first trip to Africa (if you do not count the transit through Cairo). I travelled to four cities in Morocco - part of a tour group. The country is beautiful, people are quite friendly and they love desis (more specifically desi movies). Parts of the country, the medina in Fez ... all reminded me of India.

Occassionaly, I did get mistaken for a local (possibly beacuse of my J2M172 connection). Often they would call out - "India?" and when I acknowledged they would greet - "Namaste." Most americans in the tour group were surprised by the reception I got. In one shop in Fez a staff member came to me and started listing out his favorite Hindi movies and actors. He probably has seen more hindi movies than me in the last ten years. He then said his favorite is the music guy - Anu Malik. Anu Malik - who knew? Once I went into a post office in Marakesh to get directions and the guys behind the counter took the opportunity to tell me that they loved Amitabh Bachchan. In the hotel in Warzazat there was no english channel on TV but there was one showing a hindi movie with arabic subtitles. And, when I was on my way back at the Marakesh airport an immigration official came running after me. I stopped for him. He asked me where I was from and when he saw my Indian passport patted me on my back and said - "Welcome." I must tell you I have never been welcomed so warmly in any other country for my Indian passport.

The folks running the food stalls at Djemaa el Fna blew me away with their command of Hindi - inviting me to their stalls in Hindi - all learned by watching Hindi movies.

So, who would you choose?

Let us assume that you are in the hospital for a life saving procedure. Yes, a life saving procedure for you.

The hospital tells you that you have a choice of three surgeons and two surgical teams. Surgeon A is young, charming, intelligent - when to the best schools and graduated with distinction, skilled - all his colleagues say he is good. In short, he is a hot shot. But, he just finished his residency about two years back and has limited to no experience in the procedure. Surgeon B is experienced, has a decent record - some misses and some success. Surgeon C is the silver haired veteran with lot of experience and again some misses and some success. Surgeon A can tap into members of both surgical teams. So, can Surgeon C - to a limited extent. Surgeon B can only work with one team.

You meet with the surgeons - Surgeon A is recommending a new technique that has shown lot of promise but has never been tried. Surgeons B and C are considering using things that they have been doing all these years.

Think about it...

Now, what if Surgeon A was Barack Obama, B was Hillary Clinton and C was John McCain?

O' bam 'er (Oh! Bummer)

I find the whole Obama phenomenon funny. He may be smart and charismatic but if you think his lack of experience is not scary then think again.

For me the decision was made long back - afterall, I lived in India under Rajiv Gandhi - the same old change/ hope story that went sour. I remember an article describing Rajiv Gandhi's time - "He tried to change the system but the system changed him."

As for Obama, first came the story that the guy had not paid a few Harvard parking tickets till he announced his candidacy. I am sure he knew about the tickets and I bet his wife's promotion/ pay raise would have covered it. But, I guess he could get away without paying till the candidacy and he did. Then came his support for Todd Stoger whose only qualification was his last name. So much for change. It just showed how this "vote for change" will go. Then, the man who proudly proclaims his opposition to the Iraq war promised to bomb Pakistan if they would not go after the terrorists. Yeah, right.

Hope springs eternal but looking through rosy glasses does not change reality.

Secularism, Separation of State and Religion

I have always wondered what "secularism", "separation of state and religion" means. Personally, I believe "secularism" means the state has no business in anybody's beliefs (note I did not use the word religion on purpose) and the state treats everyone the same way irrespective of their beliefs.

However, in India the official government approach is every one should get a special deal and if you are not the majority you need to get special privileges. Of course, that does not work well when there is not enough to go around. And, I am not sure if it a great way to promote unity - by promoting differences and offering different deals.

Then, there is the US which pretty much everyone says does a great job of "secularism" and "separation of state and religion." But, does having an offical holiday for Christmas or using public money to deck up the streets and buildings for Christmas go against the separation of state and religion? I remember asking a Jewish colleague whether Hannukah is a holiday. The response was immediate - "No. This is a Christian nation." Yes, the majority of the folks are Christians. And, no wonder that every now and then (and, esp. during election time) there is a need for the leaders to prove their Christian credentials.

I would love to see the state offer a set number of holidays in a year which people can take whenever they want and no state money spent on decorating buildings and streets for the holidays.

You can take Indian out of India but ...

BBC NEWS | UK | UK Indian women 'aborting girls'

You cannot take India out of an Indian. Here is a not so great example of it. I was amazed at the lengths these people went (literally) to abort female foetus. But, why should I be surprised? Folks who have left the shores long back "for better opportunities" cling on to their beliefs and outlook for as long as they can. And, it results in Hindutva supporters in US and UK funding to "save Hinduism", muslims abroad funding similar causes back home, jews in brooklyn funding right wing settlers in Israel.

Only in India

BBC NEWS | South Asia | India promises to protect writer

As if we do not have enough troubles of our own and from others who are hell bent on causing trouble (read our negihbourhood terrorist organizations and states) we go around inviting trouble.

Why on earth should India host a non Indian whose presence is causing trouble. Let us not say that it is for freedom/ rights and similar blah... blah. Why is the Indian tax payer paying for a foreigner's stay in the country when there are enough and more indians who would like their government provide them enough to live? And, what is the total economic cost of this person's stay?

Maybe, the government views it this way - "We have a whole lot of Bangladeshis living here illegaly, so one more does not change the statistics much." I think even one is one too many.

The Kleptocract and the "democractic" dictator

No this is not a bad musical or the name of a Lollywood movie (but, I guess it could be either one), it is a nice way to reference the happenings in Pakistan.

I think Jemima Goldsmith's (former wife of former cricketer Imran Khan) reference to Benazir Bhutto is the most apt one I have heard. She called her "kleptocract with hermes scarf". It is interesting to see how low the doyens of democracy (US and UK) will swoop to keep their interests. Anyone who thinks Benazir Bhutto will transition Pakistan to a liberal democracy is smoking the stuff that democracy brought to Afghanistan. Just because someone talks in English, got educated in the West and wears western clothes do not make them democratic. And, while US made all the right noises about imposition of emergency in Pakistan it was clear who had whose balls. Soon, the cat was out of the bag - Mush had told Bush about his plans to impose emergency.

How can you have democracy in a country where all democratic institutions have been suspended? And, how can a country be liberal when majority want it to be aligned to a particular religion (if not, a religious state). How can you have a democratic government when at least one legitimate (or, equally legitimate) leader sits in exile in Saudi Arabia? And, can a nation that was formed "because people of a certain religion need a separate state that encompasses their religious majority areas" ever be secural?

I think the Pakistani ambassador was onto something when he said "different nations have different paths to democracy." I guess what he failed to add was "and, some nations do not want to be on the path to democracy." A quick scan of the newgroups and message boards is enough to realize that people in Pakistan are bit cynical about democracy and Mush is more popular than Bush (in their respective countries). You can't blame the people - when democratically elected leaders use the state treasury as their private privy purse (which is the bane of all of south asia) people turn to less corrupt authoritarian heads. In Pakistan it seems the folks who are in the minds of the people are Mush, Mullahs and the madam (probably in that order).

Here is my personal test for "secular" democracies - which are the nations where the religious minorities have increased their population compared to the religious majority since the nation's independence? I think I know the answer for this one in South Asia.