Wednesday, January 7, 2009

SATYAM TRUTH – Raju confesses to the biggest corporate fraud in India

The Telegraph has termed it as ‘SATYAM LIE’ as its lead story headline. However, I think it is ‘SATYAM TRUTH’. Mr. B Ramalinga Raju (Former Chairman Nasscom and Ernst & Young Entrepreneur of the Year – 2007) has come clean and spoken the truth on the auspicious day of Vaikunda Ekadasi – when people do something good.

His admitting of a perpetual fraud being practiced for past several years, has resulted in investor wealth worth Rs: 2,13,349 crores has melted down in a single day.

2009 has begun with a bang and we in India should be proud that we are following in the foot steps of the most development Nation of the World – US. I am a firm believer, that what is happening is for the general good of the humanity.

I am quoting extensively from the post on Intent Blog by D.K. Matai and according to him, and I fully endorse his view that –

‘The characteristics of the Golden Age are likely to be accelerated enlightenment, renaissance and reinvention of the individual's thinking, societal group think and the redesign of linear industrial age systems and support mechanisms towards non-linear and circular ones by corporations, organisations and governments.’

Lao Tzu states in Tao Te Ching (in Verse 46):

"There is no greater vice than giving in to greed,
No greater calamity than not knowing contentment,
No greater imputation than succumbing to covetousness.
Therefore, know and be content with what is enough.
Then you will always have enough."

Lao Tzu states elsewhere (in Verse 44):

"The more excessive is your attachment,
The greater is your suffering.
The more excessive is your possession,
The heavier is your loss.
To know what is enough is to be free from disgrace.
To know when to stop is to be free from danger.
Those who practice this will long endure." (Quote ends)

So when the economic tsunami ends hopefully by the end of 2009 as predicted by renowned economists, this world will be an enlightened and a better place to live in. Gross materialism will give way to Spirituality and harmony, people will appreciate the small joys of life, family and community bonds will become stronger, people will not be self centered and egoistics, and will reach out to others, in short, this world of ours will be a better place.

Prof: Niall Ferguson (Professor of History at Harvard University, Professor of Business Administration at Harvard Business School) has rightly termed the recent economic meltdown as ‘GREAT REPRESION’ and his reason is more interesting, that although this was the worst economic crisis in 70 years , many people remained in deep denial mode.

Here I would like to share my thoughts on ‘The Great Repression’ not of the economy, but on the real cause, and that is the continued denial of the inevitable fact that, one day death is going to overtake us. The Business Leaders were riding the tiger, and thought they will ride for ever.

Satyam was brought to it knees within a month, because B.Ramlinga Raju was living in a denial mode, and thought , that he will be able to overcome the economic challenges and cover up the fraud, he had been perpetuating for past several years. It is good that he has come clean finally.

His misdeed are paltry, when compared to the US Federal Reserve – ‘Great Repression’ and very frightening indeed. Just go through the following passages taken from DK Matai’s post, and make self assessment of the economic tsunami.

If we examine the US monetary base -- all paper dollars and coinage in existence -- it took two centuries for the monetary base to go from USD 0+ to USD 800 billion, but in just the past 3-months it has nearly doubled -- growing from around USD 800 billion to USD 1.5 trillion -- and by the time we look closely again in 2009 it will probably have surpassed USD 2 trillion. That is double the number of paper dollars in existence since last summer! Moreover, until September 2008, the month of the Lehman Brothers collapse, the Federal Reserve had held the expansion of the Monetary Base virtually flat. The 76% expansion has almost entirely taken place within the past three months, which implies an annualized expansion rate of more than 300%.

American banks have exchanged USD 2 trillion of presumed toxic waste securities consisting of Asset-Backed Securities in sub-prime mortgages, stocks and other high-risk credits in exchange for Federal Reserve cash and US Treasury bonds or other Government securities still rated AAA, ie, risk-free. The result is that the Federal Reserve is holding some USD 2 trillion in largely junk paper from the financial system. The banks benefiting from the Fed's actions naturally oppose any release of information because that might signal 'weakness' and spur short-selling, selling or a run by depositors - whether or not they are appropriate in doing so.

So friends, who have reposed faith in the generation of wealth by trading papers, brace up for the worst in the coming months. There surely will be nothing left for your attachment and surely this will reduce your suffering, you will become emancipated and free, and soar high like a free bird, thankful of the small blessings, that will open up with your increased ‘awareness’

I also believe that the Golden Age has surely dawned amidst all the economic mess.
So be positive and try to understand the blessing that will you will harvest in 2009
If you still think that wealth generation will happen without your effort and honest labour, you are in for a rude shock.

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