Sunday, September 30, 2018


September 30, 2018 Sunday

Bedtime Story 


Discarding of NEP during the "Great Break"


Stalin was not impressed with the results of NEP particularly when the Soviet Union was facing the Grain Procurement Crisis of 1928.

Even though the years from 1922 to 1926 were fairly successful for the Soviet agriculture by returning to the free market policy, the 1928 grain shortage was the testimony to this “fact” that NEP was not working.

By 1926 the agricultural production had reached the pre-revolutionary levels, cereal grain production had returned to pre war levels and livestock populations at least for pigs and sheep had returned to normalcy while the count of horses was gradually picking up.

For reasons not clear to me the January of 1928 saw a slump in the production of wheat, rye and other cereal crops or at least it seemed to be inadequate in the eyes of the planners of the state economy.

At that time the industrial production of basic farm and household items and consumer goods had dropped drastically since during the war time the entire production was targeted to cater to wartime demands setting aside the needs of average consumers.

This had led to the scissor effect or the scissor crisis which meant that there was an ever widening gap between the prices of the industrial goods and the agricultural products; the industrial prices were soaring high and the agricultural prices were dropping down.

The drop in the agricultural prices was actually a reflection of the successful NEP policies that greatly favored peasants to grow and sell their products, at least till the January of 1928.   

On a map this gave the appearance of the blades of a pair of open scissors and the term was coined by the Extreme Left Communist and a harsh critic of NEP Leon Trotsky.

This meant that the rural peasants were unable to buy manufactured goods from their incomes and thus fearing recession or famine they resorted to subsistence farming which meant that instead of growing cereals for selling they began to grow it only for their consumption.

So the party thought of the obvious; now is the time to get rid of the NEP and spearhead rapid industrialization along with collectivization of agriculture which meant that the individual landholders and owners of cattle stock were forced to sacrifice their private property into collective farms known as kolkhozy or sovkhozy.

This 1928/29 event is now known as the Great Turn or Great Break from the title of an article written by Stalin “God velikava pereloma” or the “year of the Great Turn”.     

Bukharin had himself sided with Stalin against the Left Opposition that consisted of Leon Trotsky, Grigory Zinoviev and Lev Kamanev which in turn favored Stalin to amass unchecked power within the elite of the party.

Very soon Stalin would turn against NEP and thereby Bukharin leaving the later completely outmaneuvered.

In 1928/29 when Stalin now in total command of the party introduced a new policy of The Great Turn or Great Break, it signaled the end of NEP.

Lenin’s idea of creating a socialized state that would operate on “a profit basis” was discarded into the dustbin of history.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












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Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids:




Saturday, September 29, 2018


September 29, 2018 Saturday

Bedtime Story 


The Fate of NEP


So what does the first sentence of the second paragraph of the American Declaration of Independence say?

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and Pursuit of Happiness.”

Sweet words but hollow as a pipe.

And yet, just like Thomas Jefferson, Benjamin Franklin and Abraham Lincoln, Lenis too sought to construct exactly the same kind of society where all men are equal.

I have described to you quite vividly the kind of loss and deprivation that Vladimir Lenin came out victorious with after taking over power.

Not a very ideal situation for the ruler to establish equality and prosperity for all due to which he had to change track and introduce the vices of the West into his system.

Tragically he did not live long enough dying in 1924 just three years through his Novaya Ekinomichaskaya Politika.

Just like today’s Russia, this NEP created some very few wealthy men who were called NEPmen – the nouveau riches who took advantage of the opportunities for private trade and small scale manufacturing in a short boom of entrepreneurial activity.

In the words of the professor of political science at the University of California, Berkeley not only were “private property, private enterprise and private profit largely restored in Lenin’s Russia” but it even turned to Western capitalistic nations for cooperation and investment willing to provide “generous concessions to foreign capitalism.”

Strangely enough, Lenin himself did not consider it a betrayal of socialism ideals since according to Karl Marx a nation must first reach “full maturation of capitalism as the precondition for socialism realization.”

This mandatory condition implies that for socialism to be practiced in a nation it must be totally modernized, industrialized and self-sufficient through capitalistic means before it can pride itself to advance to the higher order of socialism where people can hope to have fixed wages with capped working hours and government backed health and social securities.

This one sentence should sum up the complete irony and conundrum of socialistic ideals. 

Alas Lenin’s NEP was not to last long.

With the demise of Lenin in 1924 things began to go downhill for NEP.

NEP after Lenin got complete support from the Politburo member Nikolai Bukharin and a left Communist; he saw the dire necessity of running a free market economy to sustain a devastated nation.

Bukharin’s slogan to peasants “Enrich yourselves!” and his idea of attaining socialism “at snail’s pace” was no to the liking of his Party and its higher cadres including Stalin.
    
Stalin in the power struggle after the demise of Lenin had successfully placed himself in the victorious side and who like many others were convinced that the NEP program was not working quickly enough.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












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Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids:




Friday, September 28, 2018


September 28, 2018 Friday

Bedtime Story 


The Scale of the Russian Civil War (1917-22)


With the onslaught of the troika of the World War I, the Russian Revolution and the Russian Civil War all coming in series and overlapping each other the cruelty, suffering and misery could not be greater than this for any nation.

The Russian Civil War was fought between Vladimir Lenin’s Communist Bolsheviks backed up the Red Army against the loosely allied forces called the White Army that stood for economic capitalism, monarchy and alternative form of socialism.    

The scale of this civil war raises the hairs on the nape of my neck when I read about it; it included European part of Russia, Central Asia, Mongolia, South Russia, Caucasus, Eastern Russia, Siberia, Far East of Russia, Baltics including Lithuania, Latvia and Northern Russia that includes Murmansk and Arkhangelsk.

From the scale of it one would not be wrong to call it a mini World War.

The loss of human lives also justifies in calling it so; the death toll ranges from 7,000,000 to 12,000,000 most of them being civilians.

Many of them took place in the straight forward mass killings and summary executions that now goes in the name of Red Terror and decossackization which was the systemic policy of “elimination, extermination, deportation of a whole territory” targeting the Cossacks of the Russian Empire localized around the region of the Don and Kuban.

I am not sure why there was such a hatred against the Cossacks but my guess is they being of Turkish origins may have been considered as ethnically different and thus “foreigners”.

Besides the direct killings and genocide perpetrated during the civil war, death due to starvation accompanying droughts and famine death came in yet another form.

Epidemic!          

Soviet Russia being unique, it was neither plague nor flu that was the killer but typhus fever that is caused by the bacteria Rickettsia prowazekii and spread by body lice.

The Typhus took more than 3,000,000 Soviet lives alone in 1920!

Like Cossacks millions of Jews were also racially targeted and pogroms against them in Southern Russia and Ukraine reached epic proportions.

By 1922 it is estimated that there were 7 million children in the streets of Russia presumably orphans.   

The Russian Civil War can easily be said to be one of the greatest and most under spoken national catastrophe that Europe has yet seen.

This is the bitter truth behind romantic ideological revolutions that is often cherished by many dreamers of utopian society that will never exist.   

It is the bitter realization that any sane man will come to acknowledge that the greatest lie that any state sells to its citizens is some variation of the first sentence of the second paragraph of the American Declaration of Independence dated July 4, 1776 that was first used by Thomas Jefferson but later stylized into its current form by Benjamin Franklin.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












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Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids:


Thursday, September 27, 2018


September 27, 2018 Thursday

Bedtime Story 


Lenin's "State Capitalism"


Last night we saw that Keynes had introduced Lenin in his landmark book and I am trying to show you why he did that.

Lenin had ushered in major economic reforms in the form of New Economic Policy or NEP which was a form of restricted capitalism.

One of the many components of NEP was the introduction of monetary reforms through the introduction of a new single currency called chervonets that would replace all the old imperial currencies of that time and would be backed by the gold standard (fiat currencies such as the modern American dollar are not backed by the gold standard and thus they can be printed ad lib).

He even allowed investment of foreign capital by allowing foreigners to invest in the Soviet commerce, industries, and mining something a kind of blasphemy to the religion of socialism/communism.

Not many would associate such kind of strong Western capitalism with Lenin and yet this is exactly what he did for he saw no better or other way calling it “state capitalism” which in essence most capitalistic economies are.  

Not that Lenin was fond of it; the economic condition of the nation was in dire straits and so he opened up the market to a greater degree of free trade hoping to incentivize people to turn on their greed mode and jump start their own production.

It was an open acknowledgement to the limitations of the production and job creation by the state that was already under immense financial stress.

It was done against the will of many Bolshevniks who considered this act as a betrayal of principles of socialism and which Lenin himself fully endorsed.

Keep in mind that the Russian Empire had collapsed with significant loss of territories by then.

By signing the Treaty of Bret-Litovsk on March 3, 1918 with the Central Powers (German Empire, Austro-Hungarian Empire, Tsardom of Bulgaria and the Ottoman Empire) Lenin had sacrificed Russia’s claim over modern-days Poland, Finland, Estonia, Latvia, Lithuania and Ukraine thereby exiting for any further participation in World War 1.

Lenin had little choice as the nation’s economy had collapsed under the strain of the war.

Through this treaty Lenin’s Russia also agreed to pay Germany six billion marks as war compensation.

This in the eyes of the Allied Powers was perceived as direct aid to German Empire which included liberation of million German soldiers and relinquishing its food supply, industrial base and fuel supplies.

Many historians consider this treaty as the ultimate betrayal of the Allied Cause which sowed the seed for the Cold War.

It also left Lenin’s Russia diplomatically isolated one for their act seen as betrayal and secondly their conversion to a Communist society was simply not coherent with the Western ideas.    

The Russia that Lenin had inherited was limping out bruised and wounded from the triple assaults of World War I (1914-18), Russian Revolution (1917) and Russian Civil War (1917-22), each one as horrible, as bloody and as crippling as the next and as seen from the dates overlapping with each other.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












Advertisements

Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids:



Wednesday, September 26, 2018


September 26, 2016 Wednesday

Bedtime Story 


Keynes Introduces Vladimir Lenin


Keynes in some of the passages of the book also brings in Lenin (after the October Revolution of 1917 Vladimir Ilyich Lenin became the head of the Soviet Russia inheriting his fragile and tired nation in the middle of the World War I) in his discussion on currency and reasoning why high inflation is likely to occur in Europe.

No matter how Lenin is perceived today (largely forgotten I guess even in modern Russia) there is no doubt that he was an ape of powerful intellect.

You may be surprised to know that he spent some time researching in the British Museum of London and was author of quite a few treatises some of which gained great popularity such as “What is to be done? Burning Questions of our Movement” (Shto delat? Nabolshie vaprosi nashi dvizhenia of 1902).

It is almost certain that he named this treatise on the novel of the same name that had inspired him much earlier when he was a student at the Kazan University written by the Russian philosopher Nikolay Chernyshevsky in 1863.

Lenin is believed to have read this novel five times during one summer in Kazan and many consider that this novel played far greater role than much believed Marx’s Capital (1867) in generating the emotional response needed for completing the dynamics of the Russian Revolution.

Interestingly, the chief character of this novel is a woman by the name of Vera Pavlovna who seeks independence and wishes to escape the control of her family and arranged marriage eventually finding solace in Russian peasant commune which was oriented towards industrial production.    

Such is the power of written words over brains!

What is even lesser known about Lenin besides his association with the bloody October Revolution and Communism that he was also an economist of sort who ushered in his New Economic Policy or NEP (which in Russian stood for novaya ekonomicheskaya palitika) soon after the Russian Famine of 1921-22.

This famine, because it involved primarily the regions around Volga and Ural Rivers, is also known as Povolzhye (meaning Volga Region) famine and took away 5 million lives.

Russia is one of those places on this planet that is deeply tragic (although can also be said about the African continent, Latin America, Indian subcontinent and then the modern Middle East) one of whose manifestations being recurrent and almost regular episodes of famine and drought throughout its history.

On average droughts tended to occur every five to seven years and famine every ten to thirteen years the causes of which generally tended to be brought about by humans such as economic or political instability, disastrous polices, environmental problems and of course wars.     

It was perhaps these harsh times that forced Lenin to introduce this new Economic Policy that in Lenin’s own words would include “a free market and capitalism, both subject to the state control”, something that modern China has been implementing with great success.

Complete nationalization of the industry was revoked (that was established during the war from 1918 onwards) and the concept of mixed economy was implemented that allowed private individuals to run small enterprises.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












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Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids:


Tuesday, September 25, 2018


September 25, 2018 Tuesday

Bedtime Story 


The Economic Consequences of the Peace - 2


Tonight we shall see the masterly economic analysis of the financial situation in the nations of Europe following the World War I of Keynes.

One of the striking things about Keynes approach to the Treaty of Versailles was that it was total economic and clinical examination devoid of any spiteful vengeance and feelings of retribution which to his understanding would only worsen the existing situation.

“In Germany the total expenditure of the Empire, the Federal States, and the Communes in 1919-20 is estimated at 25 milliards of marks, of which not above 10 milliards are covered by previously existing taxation.

This is without allowing anything for the payment of the indemnity.

In Russia, Poland, Hungary, or Austria such a thing as a budget cannot be seriously considered existing at all…

Thus the menace of inflationism described above is not merely a product of war, of which peace begins the cure.

It is a continuing phenomenon of which the end is not yet in sight.

The inflationism of the currency systems of Europe has proceeded to extraordinary length.

The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for balance.”

Keynes believed that demand in the market should be the key to setting up of the prices of products.

He was totally against government controlling or setting prices for manufactured products which on first impression seems to be a just and fair idea (who doesn’t enjoy cheaper fruits/gasoline/electricity/water/medical bills) but on the long run it backfires simply because it disincentives the producers of good and of services.

At the heart of any economic system are human apes who are both the consumers and producers and the driving force behind any human activity is reward stimulation which in modern economies most often is sought in terms of fiat currency (which can be converted into anything needful varying from a place to live to medical treatment from a physician) no matter what Mon Ami may claim.

“The presumption of a spurious value for the currency, by the force of law expressed in the regulation of prices, contains in itself, however, the seeds of final economic decay, and soon dries up the sources of ultimate supply.

If a man is compelled to exchange the fruits of his labors for paper which, as experience soon teaches him, he cannot use to purchase what he requires at a price comparable to that which he has received his own products, he will keep his produce for himself, dispose of it to his friends and neighbors as a favor, or relax his efforts in producing it.

A system of compelling the exchange of commodities at what is not their real relative value not only relaxes production, but leads finally to the waste and inefficiency of barter.”

Keynes understood currency the way Ramanujan had an intuitive feeling for numbers.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












Advertisements

Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids:



Monday, September 24, 2018


September 24, 2018 Monday

Bedtime Story 


The Economic Consequences of the Peace - 1


Most of us are not high-volume prolific readers like Mon Ami who is capable of not merely devouring but also processing almost any amount of data in print that comes before his visual system (I call him the human black hole sink of knowledge) and hence it would do well for average apes like us to know about the books through their abstracts as chosen by the story telling chimpanzee.

First let me introduce some passages from ‘The Economic Consequences of Peace’ where Keynes levels serious allegations against the treaty and its enforcers who virtually shoved it down the throats of the hapless nations who had lost out in the Great War and whose innocent civilians were already suffering great impoverishment and hardships post defeat.

“The Treaty includes no provisions for the economic rehabilitation of Europe, - nothing to make the defeated Central Powers (The German empire or the Imperial Germany, Austro-Hungarian Empire, the Ottoman Empire and the Tsardom of Bulgaria or the Kingdom of Bulgaria) into good neighbors, nothing to stabilize the new states of Europe, nothing to reclaim Russia; nor does it promote in any way a compact of solidarity amongst the Allies themselves (Italy, Japan and China all felt let down and even betrayed by the terms of the treaty – China because a lots of its German territories were handed over to Japan and Japan because US vetoed a simple “racial equality clause” that they sought as a matter of personal pride which was an anathema to the American ruling class); no arrangement was reached at Paris for restoring the disordered finances of France and Italy, or to adjust the systems of the Old World and the New.

The Council of Four paid no attention to these issues, being preoccupied with others, - Clemenceau to crush the economic life of his enemy,

(Clemenceau had told US President Wilson: “America is far away, protected by the ocean.

Not even Napoleon himself could touch England.

You are both sheltered; we are not.”)

Lloyd George to do a deal and bring home something that would pass muster for a week, the President to do nothing that was not just and right.

It is an extraordinary fact that the fundamental economic problems of a Europe starving and disintegrating before their eyes, was the one question in which it was impossible to arouse the interest of the Four.

Reparation was their main excursion into the economic field, and they settled it as a problem of theology, of politics, of electoral chicane, from every point of view except that of the economic future of the States whose destiny they were handling.”

Besides this scathing criticism of the horrendous terms of agreement made in the treaty forced upon by the big four Keynes had – based on his novel economic ideas - made specific predictions concerning the coming inflation in Europe and its reasons.

Mind you, on hind sight to us history buffs it may look very obvious but during the time when the greatest and the post powerful had met in Paris of 1919, no one expected things to take the turn it did in Europe.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












Advertisements

Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids:




Sunday, September 23, 2018


September 23, 2018 Sunday

Bedtime Story 


“Carthaginian Peace” 


The United States in the early 1900s was already establishing itself as the global economic powerhouse and it was then the largest creditor to the European powers.

Moreover the end of the World War I brought to the end four major world Empires that included Russian, German, Austro-Hungarian and the Ottoman and also gave rise to several revolutions the key ones being waves of Communist Revolutions in several European countries and in Germany.

Several newer smaller nations arouse out of these fallen Empires mainly in Europe all of which weakened the earlier powers making the United States therefore the single strongest dominating world power and still on its ascendancy (with the rest on their way down).

The dissolution of the Ottoman Empire became a pivotal milestone with the Treaty of Sèvres (commune in Paris) dismembering it into Kurdistan, Armenia, British Mandate of Iraq, British Mandate of Palestine, French Mandate of Syria and Lebanon, Kingdom of Hejaz.

This dissolution of this Empire eventually resulted in the creation of what we see today as the Modern Middle East which is primarily Islamic and the nations of which generally at each other’s throats.    

The major economic downturn would come only in 1920 and 1921 but that would sweep both the continents still leaving the primacy of the United States intact.

With this kind of economic clout and the US President Wilson keen on a harsh peace agreement Keynes proposal was lost.

The terms of the 1919 Versailles treaty was so disgusting to Keynes – Both economically and morally – that he immediately resigned from the Treasury and then turned down an offer of Chairman of the British Bank of North Commerce that promised considerable salary for a meager morning per week of work.

This truly was not only a man of integrity but who could afford to be so.  

Keynes called this treaty and popularized the term “Carthaginian Peace” – a brute and forced-upon “peace” achieved by complete crushing and humiliation of the enemy as imposed by Rome upon Carthage at the end of The Third Punic War in 146 BC which coincidentally took place on the same geographical area of land.     

After this resignation and declination of the job offer and on returning from Paris in 1919 as a delegate of the British Treasury Keynes wrote and published a book in that very same year that proved to be a bestseller.

Many consider it to be his best work, even ranking it superior to his magnum opus ‘The General Theory’ that would follow seventeen years later in 1936.

It was titled ‘The Economic Consequences of the Peace’ and I dare say that I know of no other book which foresaw and predicted history (religious scriptures can be safely ignored in this context) with such astute prescience.

I shall quote some passages from this remarkable book which almost overnight transformed Keynes from a minor advisor to a serious economist whose opinion was sought after by many governments.

We shall consider this magnificent book on the economics of war and peace in the nights to come.

Stay tuned to the voice of an average story storytelling chimpanzee or login at http://panarrans.blogspot.com
                              
Good night Mon Ami and my fellow cousin ape.
                           
  
                

             












Advertisements

Another great educator and a teacher that I am aware of is Professor Subhashish Chattopadhyay in Bangalore, India.

While I narrate stories, Professor Subhashish an electronic engineer and a former professor at BARC, does and teaches real mathematics and physics.

He started the participation of Indian students at the International Physics Olympiad.

Do visit him here:


All his books can be downloaded for free through this link:


For edutainment and English education of your children, I recommend this large collection of Halloween Songs for Kids: