TANVIR BusinessEconomics                     
A NEW TAXATION REGIME

Generally taxation is a system, which most countries impose on their residents, to collect money to run the government and provide civic amenities and other services to the people. In most cases, it is the primary source of income for the government.
Taxation is a very effective system and like all effective systems has been invented by the Mesopotamian Babylonians, for smooth conduct of the government and society. But, like all systems which are effective, it can be distorted and corrupted. Many governments and people have corrupted and distorted this system for their own nefarious advantages. A prime example of this is the Jazia tax, which was imposed by the Arabs on people they conquered and refused to convert to Islam. You can say that it was a sort of economic sanction, much before the United States of America reinvented it in the post cold war era.
Overall Taxation is an effective means of collecting revenues, to provide services to the people and run a country. In most cases it is a certain percentage of the income of an individual or corporate entity or business. Generally that percentage is in the form of slabs, with income (both individual and corporate) being categorised into groups and each group levied a percentage as Tax.
For example, a government can divide the individuals and corporations into groups A, B, C, D, E……etc. as follows
            Group A: Income or Corporation with net earning upto Tannar 100,000
            Group B: earning between 100,000 to 200,000 Tannar
            Group C: earning between 200,000 to 500,000 Tannar
            Group D: earning between 500,000 to 1000,000 Tannar
            Group E: >1000,000 Tannar


Having divided the earners into above groups, it can give Tax rebate upto a certain earning, lets say 10,000 Tannar, than 10% tax until 100,000 Tannar.
In the case group A will not pay Tax on its first Tannar 10,000 but if earns Tannar 90,000, it will pay 10% Tax.
Thus, Group A Taxable income comes to 90,000-10,000 = 80,000 Tannar
10% of Tannar 80,000 is Tannar 8000
Thus, an individual or corporation earning Tannar 90,000 will pay Tannar 8000 in the above case.
Next the government can levy 15% tax between 200,000 to 500,000 Tannar, 20% Tax between 500,000 to 1000,000 and 30% above 1000,000.
I all the above taxation, an individual or corporation pays Tax as a fixed percentage. It is a easier method of Taxation and easier to calculate by the Taxman or Taxwoman. But it is not a scientific method and it is not justifiable.
It is not justifiable because this slab system and fixed percentage Taxation does not differentiate between people and corporations earning over a wide spectrum of earning.
We will accept that any Taxation regime cannot impose more than 20% Tax on either an individual or corporation. Above this is unjustifiable. Rightly the Mesopotamian babylonians never imposed more than 20% Taxation in their country and also the highest interest rate paid in any transaction was never more than 20%. This means that this 20% limit is not only time tested but has been used by the Mesopotamian Babylonians for millions of years of their existence. So, this 20% upper limit on both Taxation and interest rates has been tested under most rigorous financial conditions by the greatest brains in the universe and has been found to be true both for taxation purposes and Interest rate purposes. Therefore this 20% upper limit of Taxation and interest should not be exceeded. This limit gives maximum and optimum stability to the financial system.
After all the individual or corporation are working hard to earn that money and anything greater than 20% total tax is simply not viable to boost the mind to work more to earn more. So, greater than 20% taxation is simply counterproductive and forces hard and big earners to migrate to better and justifiable tax places.
But, what is the alternative to this simple but unscientific monotonous slab taxation system. It is the decimal taxation.
Let us say that in a country, you require a minimum of Tannar 30,000 to survive per annum. This includes the lodging, food, transportation and other costs to support one individual. This minimum survival requirement Tannar 30,000 should be non-taxable to all citizens. This is for an individual. Now, suppose this individual has a family with three children and a spouse. This means that the family has five members . So it will need survival money of at least Tannar 30,000 X 5 = 150,000.
Thus, for this family of five individuals, they will not pay any tax till their total or net income exceeds Tannar 150,000. This calculation can vary according to the number of family members and cost of living.
But suppose in the above case, in addition to children, the husband and wife also have to support their parents (either or both from both sides). In this case Tannar 30,000 will be added to non taxable income for each individual added.
Now, suppose the husband is supporting his mother and wife is supporting both her parents. This makes it three added individuals. That is further 3 X 30,000 = 90,000 Tannar nontaxable income. 
In this case the total of non taxable income comes to Tannar 150,000+Tannar 90,000 = Tannar 240,000.
So, for this example family, they won’t pay tax till they earn above Tannar 240,000, because it the minimum they need to sustain themselves. This is their basic requirement and cannot and should not be taken away by any Taxation System.
The evaluation of cost of living can be done by an independent body or government body for each year.
This is the basic standard of the new Taxation regime for individuals.
But what about corporations. Similar to individuals, corporations also have to sustain themselves. This includes expenditure on raw material, salaries, transportation, storage etc. This is the survival requirement of a corporation and cannot be taxed. Thus, each year an independent body will asses as to the cost of these requirements and total it up for each corporation. This basic survival requirement of a corporation cannot be taxed. In such cases, the cost of living of the individuals serving such a corporation can also be added to the survival cost of the corporation.
For example if a steel producing corporation is spending Tannar one million for raw material, another Tannar 200,000 on salaries, Tannar 100,000 on Transportation, and Tannar 300,000 on other requirements like power etc. and employs 100 employees who need Tannar 30,000 each for sustenance, than the total survival cost of the corporation can be calculated by summing all the above.
1000000 + 200,000 + 300,000 + (30,000X100) = Tannar 4500000
Thus Tannar 4500000 is the survival requirement of the above example corporation.


After the basic survival requirements have been determined for both individuals and corporations, this has to be deducted from the earning of those entities.
Next is what sort of slab system or taxation should be put forward.


In my “A New Taxation Regime”, there are no big slabs. That is the Taxation system is not divided into groups as given in the example. Rather it is a continuum till the maximum Tax limit of 20% is reached in extreme cases. I will advice that a society where more individuals can be taxed is much better than a society where some individuals are taxed at high rates.
In my slab system, the slab gap is very small, say Tannar 1000 and the Tax on each slab is maximum of only 10%. This is the simplest form of my slab system. In a more complicated system, different number of slabs can be taxed at different rates, For example, first 1000 Tannar 1000 slabs can be taxed at 4%, second 1000 Tannar 1000 slabs can be taxed at 4.1 %, next Tannar 1000 slab at 4.2% and so on. Thus in a continuum, each Tannar 1000 slab can be taxed at a different rate. 
In the above family example, suppose the total earning of the family when it has to support five members is Tannar 400,000. The survival requirement for such a family comes to Tannar 150,000. This means that the total taxable income becomes Tannar 400,000-150,000 = Tannar 250,000.
Now in the most simplest tax slab system, each Tannar 1000 slab can be taxed 10%.
Because Taxable income is Tannar 250,000, so there are 250 Tannar 1000 slabs in the taxable income.
The family tax is calculated as:
(10/100 X 1000) X 250 = Tannar 25000
Thus in the simplest form, a family with survival requirement of Tannar 150,000 and total income of Tannar 400,000 will pay a tax of Tannar 25000.
Lets make the Tax Slab system more complicated as described above:
The first  1000 Tannar 1000 slab (of the 250 Taxable Tannar 1000 slabs) will be Taxed 4%. Since this family has no more tax slabs, the Total Tax calculated comes to:
                                          (4/100 X 1000) X 250 = Tannar 10000
Thus in the complicated system if the family earns Tannar 400,000, it pays a tax of Tannar 10,000
Suppose the family as given in above example is supporting three other members, the survival amount comes to Tannar 240,000 and consequently it pays no tax.
Suppose this extended family of eight, with survival requirement of Tannar 240,000 has a total earning of 280,300 Tannar.
In this case 280300-240000 = 40,300 Tannar.
In this case as calculated above, the Taxable income is Tannar 40,300. Now we see that it has 40, tanner 1000 slab
So Tax calculation comes to:
(10/100 X 1000) X 40 = Tannar 400
So this family pays Tannar 400 as Tax. The Tannar 300 , which does not form a Tannar 1000 slab is non-taxable.


But suppose if the family was earning 10000000 Tannar. The survival requirement is Tannar 150,000. Taxable income becomes Tannar 8500000. In this there are 8500 Tannar 1000 taxable slabs. The first 1000 Tannar 1000 slabs are taxed at 4%, the next 1000 Tannar 1000 slab is taxed at 4.1% , the next 1000 Tannar 1000 slab is taxed at 4.2 % , the next at 4.3%, the next at 4.4%, the next at 4.5%, the next at 4.6%, the next at 4.7%, the next at 4.8%
Calculating the Tax as described above, this  family by this complicated system has to pay a Tax of Tannar 318,000


 But, this Tannar 1000 Tax slab is according to Tannar currency. In different countries and different currencies, this slab can differ. It can be Slab 250, 500, 1000, 10,000, 100,000 etc. but the method of calculation remains the same.


Also the 10% Tax regime can vary but ideally should not be above 20% for either corporate or individual.
Similarly every entity in a society can be divided into either individual or corporation, given a unique Tax number and taxed as above. Thus there will be no need for any service tax, custom tax etc. as every entity in a society can be divided into either a Tax individual or a Tax corporation for the purpose of Taxation. This will ultimately curb corruption and enhance fair play in the society.


This “New Taxation Regime” allows for sustenance and maintenance of all individuals in the society, encourages support of family life, encourages support for elderly, encourages support of a loving society. This justifiable system encourages people to pay their taxes.


Further in this “A New Taxation Regime”, Tax deduction at Source is totally abolished because nobody, not even the government has any authority to take your hard earned money without your permission.
Further all the survival slabs and Taxation slabs can be put in a Taxation software.
Each individual and Corporation should be assigned a unique Tax number. Each individual or corporation must log on to the Tax portal between Tax dates and fill their total earning and family members (along with their unique Tax numbers, even for children). The Tax software will calculate the and will inform the logger of its attached E mail account and Phone number. The individual or corporation can pay their Tax either online or by depositing a cheque in the Tax account.
For this the government must maintain a Tax account. The cheque will quote the name of individual or corporation and its Tax number.
In this way Tax can be collected for all individuals in a society and society can be supported as a whole.
A “Tax regulation Team” should be in place to examine cases where it is suspected that the individual or corporation has not declared its income truthfully.
In the New Taxation Regime, there is no provision for imprisonment. The logic is that the individual or corporation has earned the money. A Certain fine can be levied for false declaration of income to discourage people to resort to false income claims.
Thus the New taxation Regime proposes to make Taxation a society oriented entity as was envisioned by its Mesopotamian Babylonian inventors. It is not a tool to harass people but is a system to bring financial stability to the society and the country.


Lets start fair taxation
lets do away with corruption
let the family survive
let business grow
Than only taxation is justified


      Copyright © Tanvir Nebuchadnezar
      All Rights Tanvir Nebuchadnezar


​

ECONOMIC IMPACT OF EDWARD SNOWDEN REVELATIONS AND ECONOMIC PIRACY


When Edward Joseph Snowden took out files from CIA/NSA databases, he knew that he was collecting evidence to implicate CIA/NSA in the widespread, illegal and unconstitutional surveillance of millions and billions of people in USA and around the world.

But what Edward Snowden did not know and the world as yet does not know is that the surveillance programme was not meant to invade privacy of individuals. It is a small perk. In reality, this surveillance programme is the biggest theft and financial loot in the history of mankind. This theft and loot is worth anywhere between 5 and 6 Trillion US dollars for USA, UK, Canada, Australia, Newzealand, Germany and India combined. These are the 'SIX EYES’ if you exclude USA, which is the mastermind.


Each of the ‘SIX EYES’ countries have a specialised agency which systemically collects data in its own country and surrounding countries and analyse it at the NSA which is the mastermind.


&&& In Australia, the ‘EYE’ is “Australian Signals Directorate” (ASD). The Australian Defence Satellite communications station near Geraldton, Australia is operated by the ASD. HMAS station outside Canberra is also operated by ASD. ASD also operates the Shoal bay receiving station near Darwin.
       ASD collects internet and telephone data from virtually all of South-East Asia including Japan and China.


&&& In Newzealand, the ‘EYE’ is “Government Communications Security Bureau (GCSB). It operates the Walhopal station near Bleinheim. 
       GCSB collects internet and telephone data from Japan and China and supplements the ASD.


&&& In Canada, the ‘EYE’ is “Communications Security Establishment” (CSE). It was previously known as “Communications Security Establishment Canada” (CSEC).
      CSE collects data between Europe and North America and supplements NSA.


&&& In UK, the ‘EYE’ is “Government Communications Headquarters” (GCHQ).
       GCHQ collects data from all 57 countries whose data cables pass through or near UK.
        GCHQ is collecting all data transmitted to and from UK and Northern Europe via the undersea fibre optic telecommunications cable SEA-ME-WE-3. GCHQ has infiltrated TAT 14 (Europe USA cable), Atlantic crossing 1 (Europe USA cable), Circe South ( France UK ), Circe North ( The Netherlands-UK), Flag Atlantic-1, Flag Europe-Asia, SE-ME-WE-4 (Southeast Asia-middle east-western europe), Solaras (Ireland-UK), UK-France 3, UK-Netherlands 14, Ulysses (Europe-UK), Yellow (UK-USA) and Pan European crossing.
       TEMPORA is a british black ops surveillance program established in 2011 by GCHQ that gathers mountains of phone and internet traffic by tapping into fibre optic cables.
       GCHQ can listen to phone calls, read E mails and text messages, see what websites Internet users from around the world are visiting. It can also retain and analyse nearly the entire European Internet traffic.
       GCHQ infiltrated and hacked and virtually took control of the Verizon business, British Telecommunications, Vodafone cable, Global Crossing, Level3, Viatel, Interoute and probably many more.


&&& In Germany, the ‘EYE’ is “BundesNachrichtendionst” (BND), which is the “German Foreign Intelligence” and BFV (German Domestic Intelligence).
       Both have have access to XKeyscore. BND gave Mira 4 and Veras hacking and intercepting programs.
       BND collects its data at Bad Aibling station near Munich.


&&& In India the Indian government has set up a separate branch of the Enforcement Directorate, Research & Analysis Wing (RAW) and Central Economic Intelligence Bureau (CEIB).
       This division collects all internet and telephone data from all around the country and from other countries in the Indian subcontinent.
       In difficult situations, NSA helps ‘Indian Eye’. In one instance NSA collected 13.5 billion pieces of information in just one moth for the government of India.

$$$$ NSA is the mastermind to which all the above eyes pass their data, after preliminary analysis of their own, for a final analysis and to be put to practical uses.
        NSA operates several programs and has a massive staff and almost unlimited budget. This is to analyse the data and put it to practical uses, mainly economic.
        NSA has cable intercept programs like BLARNEY, FAIRVIEW, OAKSTAR & STORMBREW (Upstream collection).
        NSA has a special division for special source operations- “Corporate Partner Access” (CPA). Its duty and purpose is to ‘leverage unique key corporate partnerships to gain access to high capacity international fibre-optic cables, switches and/or routes throughout the world’.


       ^^^PRISM is a downstream program through which NSA collects data from Google, Facebook, Apple, Yahoo and others. It also allows court approved front door access to American’s Google and Yahoo accounts. It collects massive amounts of data from these internet companies like E mail content, search histories and file transfers. The government can access live information, photo, video chats and data from social networks directly through the company’s servers, without requiring consent or individual court orders.


     ^^^ ECI or Exceptionally Controlled Information is used to cover the NSA corporate partners. These documents were not even cleared to Edward Snowden, who had almost complete access to all NSA files. Some cover names for ECI are Artifice, Lithium and Serenade.


     ^^^ 'Steel Knight’ is a NSA partner facility.


     ^^^ BOUNDLESS INFORMANT is a NSA call database. With secret court orders, it forces companies like ‘Verizon’ to hand NSA millions of American’s phone and internet records.


    ^^^ XKeyScore: is a analytical tool that allows NSA to collect ‘almost anything done on the internet’. It allows analysts to search the widest reaching collection of online data including E mails, social media activity, browser history, without authorisation or review by a court or NSA personnel.


       NSA was harvesting millions of E mails and instant messaging contact lists, searching E mail content, tracking and mapping the location of cell phones, undermining attempts at encryption by its anti-encryption program BULLRUN. The NSA was using cookies to piggyback on the same tools used by internet advertisers to pinpoint targets for government hacking.


     ^^^ MUSCULAR surveillance program was being used by the NSA for tapping undersea cables for secretly tapping into Yahoo and Google data centres to collect information of hundreds of millions of account holders.


       — NSA was also secretly tracking the online sexual activity of people so that they could later blackmail them into political, social, and financial submission.


         NSA was paying US private tech companies for clandestine access to their communications networking. This type of budgeting and payment probably ran into billions of US dollars which might be very difficult to refuse for smaller and upstart companies.


       NSA formed the “SIGNIT Strategy 2012-2016” to ‘dramatically increase mastery of the global network’ and ‘acquire capabilities to gather intelligence on anyone, anytime, anywhere’.


     NSA in cooperation with the GCHQ, has plans to infect millions of computers with malware using a program called “TURBINE”


     NSA had a program ‘QUANTUMHAND’, through which it set up a facebook server to intercept communications.


     NSA developed a cyber warfare program ’MONSTERMIND’ that would automate the process of hunting for the beginning of a foreign cyberattack but instead of simply detecting and killing the malware at the point of entry, it would automatically fire back, with no human involvement.


     NSA has capacity to tap ‘Smartphone data’. NSA can access contacts list, SMS, user location, and more on the three most popular mobile platforms.


    The NSA can monitor International Financial transactions: “Follow the money” branch of the NSA has several means of accessing the internet data traffic of the “Society of Worldwide Interbank Financial Telecommunication” (SWIFT). It is a cooperative used by more than 8000 banks worldwide for their international transactions. NSA also follows the internal processes of credit card companies like VISA and MASTERMIND.


   The NSA aims to defeat internet privacy and security encryption. NSA works covertly with tech companies to insert secret vulnerabilities known as backdoors or trapdoors into commercial encryption, when used to protect Emails, banking and medical records.


    NSA uses the wide network of US embassies and consulates worldwide to put its spies in place and move its programs and hardware into the country through diplomatic immunity and than bugs and controls the internet and telephone traffic in each of the country, USA has a embassy or consulate. 
   NSA runs a “Special Collection Service” (SCS) in over 80 US consulates and embassies worldwide. The purpose is to spy and collect political, financial and military information from the host country. To this end NSA uses implants like ‘GENIE’, which are used to bug computers in foreign countries.


   NSA also runs the “Deep Pocket Inspection” (DPI) or “Interception Modernisation Program” (IMP), which keeps ‘black boxes’ at various internet server providers, thus vacuuming signals from upto 200 fibre optic cables at all points of entry into Britain.


   NSA has developed a program ‘Dishfire’, which collects nearly 200 million text messages everyday.
   NSA also uses a program ‘MYSTIC’ through which it collects all phone calls in the Bahamas and Afghanistan.


     As I have given so much about the clandestine and often criminal activities of the NSA, lets know something about its original purpose. NSA is NATIONAL SECURITY AGENCY of the USA formed in November 4 1952 and is headquartered in Fort Meade, Maryland and works under the ‘United States Department of Defence’.


   As defined by NSA, its an intelligence agency of US government responsible for global monitoring, collection and processing of information and data for foreign intelligence and counterintelligence purposes, called Signals Intelligence (SIGINT). NSA is concurrently charged with protecting the US government communications and information systems against penetration and network warfare.


    From the above discussion its perfectly clear that NSA is masterminding, with the subordination of GCHQ (Britain), ASD (Australia), GCSB (Newzealand), CSE (Canada), BND (Germany), CEIB, RAW (India); the biggest and mightiest Industrial, Economic, Political, Military Espionage ring in the world and together they are responsible for swindling nearly 5-6 Trillion US dollars in favour of these countries, out of which nearly 80% goes to the USA.


   The contention of NSA that it is acquiring this information against terrorism is completely false. because the places from which its sabotaging this information are terrorist free. Almost all terrorists who have caused terrorism have come from Saudi Arabia, Yemen, Indian subcontinent and Africa or at most some from these places have migrated to USA or Europe.


    Thus, all sabotage cyber and telecommunication information that NSA and its 6 EYES (UK, GERMANY, AUSTRALIA,CANADA, NEWZEALAND & INDIA) are collecting is for one purpose only >>> economic piracy of nearly 5-6 Trillion US dollars.


 The reader has to understand that nearly 15 to 20 % of US GDP comes from the internet, 5 to 10% from telecommunications including computers and hardware and software and 15 to 20 % from the Stock Exchanges, not just in USA but through out the world.


    The USA maintains two of the largest Stock Exchanges in the world.
*** NYSE or New York Stock Exchange has a $ 10.1 trillion capitalisation from just the domestic NYSE listed companies.


*** NASDAQ (which stood for NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS), New York is world’s third largest stock exchange. It is the largest electronic screen based equity securities trading market in the USA. It has about 3800 company and corporations listed. It has more handling volume per hour than any other sock exchange.


    The first point of interest is that NYSE and NASDAQ are the most high profile stock exchanges in the world and companies listed here are thought to be safe, both by US investors and investors worldwide. This is the image that has been developed and dispersed by the media managers of these stock exchanges.


      Now if both US internal investors or foreign investors want to invest in these stock exchanges, they can do so either through the internet or phone. Also the money transaction will involve the internet. Both these are monitored by the NSA. As soon as NSA gets such information, they pass it to their own financial manipulation wing, which makes its own investment decision, based on the information received and books a profit. This is similar to the “Government of India run Harshad Mehta Scam”, I have described in my last article.


    Thus, NYSE and NASDAQ are always kept in prime condition for US and foreign investors to invest and for NSA to take advantage and book profits.


 But NSA also collects lots of personal information from around the world about people like movie celebrities, sports stars, politicians, financially rich etc., which may include compromising photos, videos, audios, etc.. NSA uses them through its blackmail division to manoeuvre these clients to either give financial bonus or do some tangible work beneficial to the NSA or USA.


    The result of blackmailing sports stars may include fixing their matches, losing to USA or US Players etc.


    Politicians make decisions. Getting blackmail information about them enables NSA to make them support policies helpful and friendly to USA and US businesses.


     In many situations, NSA gets advance information about what the political leaders are contemplating in a particular International situation and the NSA support team goes out to manipulate them to change their views in accordance with US foreign policy goals and objectives.


     It is very conceivable, because they collect such information, that many of the multi-billion or mluti-million dollar frauds on the internet are conducted by the NSA through its fraud division.


   The GCHQ does similar sabotage and financial manipulation in the London Stock Exchange. It also does similar manipulation to NSA, with the private information it collects.


   Same way, other eyes also profit similarly. In addition, NSA pays them handsomely from time to time for some exceptional information, they pass to the NSA.


     The working of the ‘Indian EYE’, I have already described in my previous article.


In today’s world, Internet and telephone have become such important tools for our day to day life that life cannot be imagined without them. But, who would like their every conversation, every photo, every remark being monitored and recorded by NSA or GCHQ or whatever. It is unacceptable. To have informed us about this, we owe a great deal to Mr.Edward Snowden, who with exemplary courage, bravely, high moral thoughts and good of the society at heart single handedly exposed the biggest financial loot and theft in the history of mankind. 


  To quote Edward Snowden:


   “I don’t want to live in a society that does these sort of things (Surveillance  of its citizens). I do not want to live in a world where everything I do and say is recorded. My sole motive is to inform the public as to that which is done in their name and that which is done against them”


   Now, I will show the reader that even though what Edward Snowden has done is absolutely right in terms of moral and international legal terms, because he has exposed the biggest theft and loot in the history of mankind, which is worth between 5-6 Trillion US dollars each year.


     But, Edward Snowden won’t get justice in the uSA because US government has passed enough laws to protect this illegal activity of NSA, which is being done directly under the supervision of the government of the United States.


## The Foreign Intelligence Act of 1978 (FISA) was specific to curtail NSA against insiders. It set FISA court to acquire warrant against domestic target by joining FBI & NSA.


The laws which target Edward Snowden in the case are:


## 2008 FISA Amendment Act: renewed in 2012, this allows the collection of communication without a warrant, where at least one of the communicators is a non-US citizen.


## Section 215 of 2001 Patriot Act: It sets free NSA to collect bulk E mails records domestically. NSA interpreted this as allowing them to collect phone metadata as well. It can collect tangible things that aid in a terrorism or espionage investigation.


## Executive order 12333: this order broadly authorises the collection of all information for the purpose of ‘national defence’, not prohibited by other applicable laws.


## Patriot Act 2001: Section 214, 216 amends FISA to allow collection of certain wire or electronic communications metadata, relevant to a terrorist or espionage investigation.


## FISA amendments act of 2008: sections 703, 704 amends FISA and establishes procedures for targeting US Persons overseas.


## National Security Letter: National Security Letters are administrative subpoenas that allow the FBI to compel the recipient to divulge subscriber and billing information relevant to a national security investigation. These letters require no judicial review and the recipient is prohibited from revealing the contents or existence of the letter.


## FISA court order: these orders are issued to compel entities to furnish information the government has requested. The court operates in secrecy and is not subject to public oversight.


    FISA court and its proceedings are secret and its nearly impossible to challenge the interpretation of the law. The government is the only petitioner before the court.


  The FISA judges are appointed by the chief justice of the US supreme court under political supervision and their impartiality and fairness cannot be guaranteed.




     Edward Snowden, who worked as a contract employee for consulting firm ‘BOOZ Allen Hamilton’ inside the NSA centre in Hawaii, exposed global surveillance programs, many of them run by the NSA and the 6 EYES in cooperation with telecommunication companies and European governments.


   Because of this the US department of Justice charged him with theft of government property, unauthorised communication of national defence information and wilful communication of classified intelligence to unauthorised person.


   If you see the above charges, the same charges multiplied by a factor of 6 Trillion US dollars/year is applicable on the NSA and the US Government, not to talk of other EYES.
     Though Edward Snowden is living in Russia with a asylum of 4 years but he must get justice, which is full freedom and civic rights in USA and prosecution of NSA and US government employees for the 6 Trillion US dollars loot every year they have been doing with impunity for at least two decades now.


    The public opinion around the world is much in favour of Edward Snowden but in his home country and 6 EYE countries, the opinion is divided because they were benefitting from 6 Trillion US dollar loot every year, which has been exposed by the Snowden revelations.


     Here I am suggesting some remedies by which this naked and shameless looting of 6 Trillion US dollars by USA and 6 EYES can be stopped and a sense of propriety and justice established around the world:


@@ It is time for the internet to diversify. Instead of all servers being placed in USA, all should be removed and placed in various proportions in Russia, Japan, Austria, China, Malaysia or Indonesia, Argentina and State of Mesopotamia and Chaldea. This will end the monopoly of USA on internet servers and prevent the above described misuse.


@@ An International Committee of Internet should be set up which will have 100 board members and only one from USA. It will select its Chairman and form policies to reform the rules of Internet to protect privacy and prevent Internet sabotage and economic privacy.


@@ The money for this revamp will come from countries which will host the servers and 50% will come from other member countries.


@@ Any such trick as presently the NSA and 6 EYES are employing will result in cutting the internet supply to the country. Any repeated offence will result in permanent cutting of internet connection.


@@ BY International law, companies will be prohibited from creating backdoors or trapdoors in their products. If any is found at any later date, fines upto 80% of the profits will be imposed.


@@ A International court of Internet justice to be set up in either Europe or the State of Mesopotamia and Chaldea. It will have a 10 judge bench, which will decide all internet disputes within a fixed timeframe.
    
@@ It will be the responsibility of the private internet companies like facebook, google, twitter to remove terrorist propaganda material. If they do not do so, the Internet ethics commission can impose heavy fines on them or they can be taken to the International court of Internet Justice.


@@Strong copyright and patent rights on the internet. Necessary software programmes to be developed so that copyright and patent right violators are immediately caught and either banned from internet or heavily fined.


@@ Social media sites like facebook, google plus, Pinterest, Linkedin, Myspace etc. should have strong screening procedures while admitting new users. This can be in the form of the phone verification or a Identity card verification like driving license, passport, PAN card, Bank passbook etc.


@@ Any hacking into financial institutes like banks, credit cards etc. should be punishable by heavy fines and long term imprisonments.


@@ Establishment of a well trained cyberspace police force in each country with significant internet reach, to address consumer grievances. In addition, a International cyberspace police force to help track and capture International cyber criminals.


@@ Establishment of a International Technical Regulatory body (ITRB), which will check devices like laptops and phones etc, for any backdoor or trapdoors loopholes.


@@ Educating the customers to ethical practises and ways of running the internet.


@@ A formation of a ethics committee, which will classify material on the internet according to age groups and devise verification methods a person can access each age group Internet content.


@@ All malware programs, hacking programs and stealing programs should be completely criminalised and heavy fines and punishments prescribed for their use.


These fines can be country specific, so even if a culprit from a country is not caught, the country will pay the fines and damages.


If we are to do above, than all effort Edward Snowden has done to enlighten us about Internet cheating, looting and blackmail can be a just reward for a person who has staked his life to enlighten the Internet!

Copyright © Tanvir Nebuchadnezar
All Rights Tanvir Nebuchadnezar

TANVIR BusinessEconomics           24th January 2015

 
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GOVERNMENT OF INDIA RUN HARSHAD MEHTA SCAM AND MONEY LAUNDERING CORRUPTION

There are many kinds of corruption and degrees of corruption. By any yardstick, India is one of the most corrupt countries in the world, be it degree or scale of corruption. In this article, it’s my endeavour to analyse and highlight one of the corruptions conducted by none other than the government of India. This is the “Government of India run Harshad Mehta Scam”.

But before the reader can grasp and understand the scale and degree of this corruption, I will have to analyze another corruption, which took place more than 23 years ago in India. It was the year 1992. The news broke out that the ‘Big Bull’, as Harshad Shantilal Mehta was known in the broker circle was involved in a financial scandal of unheard proportions.

Actually, Harshad Mehta was born in a low middle class Gujrati family. He involved himself in commerce and moved to Mumbai to involve himself in stock market and slowly established himself as a broker at Bombay Stock Exchange (BSE) and developed his own broking firm, “GrowMore Research and Asset Management Company Limited”. He learned the weaknesses in Indian financial system while working as a dispatch clerk at New India Assurance Company.

He bought heavily in Associated Cement co. (ACC), Apollo Tyres, Reliance, Tata Iron and Steel co. (TISCO), BPL, Sterlite, Videocon.

It was April 23, 1992, journalist Suchita Dalal exposed the dubious ways of Harshad Mehta, in a column of Times of India. But, she was only able to touch the tip of the iceberg. Even the later CBI enquiry did not bring out all the people and the magnitude of the fraud because of the people and politics involved in it.

I must inform that CBI is Central Bureau of Investigation and is directly controlled by the central government and hence is political in its control and hence its investigations. Now, I will try to explain what Harshad Mehta was doing wrong.

You must understand that the period 1989 to 1993 was a politically unstable period in Indian politics and government. During this time and till 1998, there were non BJP minority governments supported from outside and hence very prone to outside manipulation.

The reader must also understand that by 1989, RSS (Rashtriya Swamsevak Sangh, the parent of BJP) and hence BJP (Bhartiya Janta Party) had established themselves as a political force. From 1989 onwards, the RSS and hence BJP has been playing a very active and important part in controlling the central governments in India, when in 1998 and 1999, they managed to form their own government.

Now, in 1989, when in actuality Harshad Mehta started the fraud, there was a weak minority government of Janta Dal in the center, which depended on BJP (and hence RSS) for survival.

This was during this time that the RSS under the guise of BJP pressurized Janta Dal government to pass certain bills under the guise of socialism, which virtually brought the whole banking sector, including public, private banks and RBI (Reserve Bank of India) under the central government.

The Law mandated that each bank should hold certain minimum amount of government bonds or securities. This made the government bonds costlier and necessary for the banks to keep under the new laws. This minimum amount of government bonds was to remain above a certain ratio of the bank’s holding. This ratio was known as SLR (Statutory Liquidity Ratio).

But banks, whether private or public are driven by interest and profit. The introduction of SLR or Statutory Liquidity Ratio meant that government could dump its incompetence and overvalued paper (bond) money on the banks, both private and public, and indirectly on the public.

Initially the banks had to show their SLR to RBI everyday. During the 1989 to 1993 period, it was relaxed to every week and than to every 15 days.

The relaxation was enforced by the RSS (BJP) so that it will give a window of opportunity to manipulate the SLR show period. Keeping SLR meant that banks had to depend on brokers like Harshad Mehta to buy government bonds or securities when they were short before show time or sell it if they were in surplus. It was a burden imposed by the government and nobody wanted any excess of it than necessary.

In this selling and buying of government bonds or securities to keep the mandated SLR, brokers like Harshad Mehta flourished. But, he was not the only one. He was the one who was caught.

Under the than existing laws, the bank selling the securities should physically transfer them to the buying bank and the buying bank should transfer the money directly to the selling bank. But in many cases, the buying bank issued the cheque to the broker and than the broker made payment to the selling bank. Also, in many cases, instead of physically transferring the securities to the buying bank, the selling bank issued a ‘Bank Receipt’ to the broker, which testified the securities were there with the selling bank. The buying bank took this ‘Bank Receipt’ and paid to the selling bank the money, many times through the broker without actually ever receiving the securities.

The money that a broker like Harshad Mehta received to give to the selling bank in lieu of the ‘Bank Receipt’ was kept by him for a few days. He accumulated money this way from many banks and bought shares at the Bombay Stock Exchange. Once the price of the shares rose, he sold the shares, made a profit, and paid the selling bank its due. But

the profits from this method, even though significant, were not huge.

The next step that Harshad Mehta did was that from the profits he made by the above method, he bought shares at the Bombay Stock Exchange in good reputed companies. Later, he used these shares as collateral to get loans from banks. With these loans, he bought shares in selected companies along with his partner brokers and promoters from such companies. In many cases, the prices of the shares rose drastically because of this buying pressure. Once, the shares rose very high with public demanding such shares, he sold his shares, earning massive profits and money. This he again used to finance the same scheme again and again.

But, even after earning huge profits this way, Harshad Mehta did not let go in dealing with relatively minor profits he earned in acting as a broker of government bonds and securities between banks. This greed became his undoing. When he was unable to pay the money he owed to a bank (State Bank of India), the scandal broke and he was caught.

But in reality, Harshad Mehta was a small fish in a big pond called corruption.

During the same time (1989 to 1993), there were hundreds (if not thousands) of brokers and other persons who were indulging in the same thing, booking profit at the expense of public money. Harshad Mehta was caught but others continued the same work and are still doing it.

People must also remember that in June 1991, a minority government of P.V . Narsimha Rao came to power. It was also dependent on outside help to survive. The RSS (BJP) used this opportunity to pressurize the government to protract and hurdle the trial of Harshad Mehta. They also asked it not to catch other thieves in the finance market, who were doing the same things. Most of these thieves were acting as front for the RSS. Later many from the congress joined these thieves.

Actually, Harshad Mehta was never tried fairly and he died in Thane Jail custody in 2001.

By now it would have become apparent to the reader that Harshad Mehta was just one spoke in a big corruption wheel. Taking out one spoke did nothing to stop the wheel of corruption from advancing as outside supporters, to themselves come to power.

Harshad  Mehta was glorified by the RSS backed media as Big Bull and his extravagant lifestyle was splashed all over the media to lure many more of foolish Indian public to buy worthless shares in the Bombay Stock Exchange and make huge profits for the RSS, to finance their ambitions both in India and aboard. He was used by the RSS to attract others into the corruption pool or quagmire called Indian financial system.

He was also highlighted and made famous so that others could continue the same work behind him and if ever the scandal broke out, he will the one who will be caught while others will escape to continue their corruption at a later date. This was the aim and this is what has precisely happened.

I must also inform the readers that until the 1989 to 1993 period, RSS had many cadres but was short of money necessary to come to power and spread it agenda outside the confines of India. Thus, what Harshad Mehta did and others are still doing was and is masterminded by the people in RSS with help from the British Intelligence (GCHQ). After the passage of bills by the Indian Parliament in November 1998 and again November 1999, pertaining to me, the congress has also joined this fraud wholeheartedly.

In essence, the scam was and still remains of obtaining huge amounts of public money, use it to buy selected company shares, hike their prices and than sell them at their peak, making massive profits for the people involved in the scam.

But, since 1989, the scam scheme has undergone many modifications and changes so that this illegal action is not caught. By passing the November 1998 and Novermber 1999 bills, pertaining to me, which allows people to bet on me, the RSS in particular and government of India in general assured another means of extracting money from the foolish Indian public and finance this massive “Government of India run Harshad Mehta scam”. This is why the bill makes sure that everything around me is strictly controlled and that the government always wins the bets and hence the money.

Now, because the government of India is involved in this scam so the shares are held much longer and profit booking is done slowly, so that the share prices do not fall too dramatically and in this way the government is able to maintain the average BSE Sensex at very high levels. The very high levels of Sensex are maintained to attract Foreign Direct Investment (FDI) and to keep the ignorant public interested in the share trading.

Many FDI foolishly believe that very high Sensex levels are signs of very robust and dynamic economy. Many times, they buy shares of shell or almost worthless companies.

But the Indian government is not just interested in FDI to buy junk shares, which further hike the prices of these shares and make even more profit for the Indian government through this “Government of India run Harshad Mehta scam” scheme. After all it’s the government of India! India! A country of 1.5 billion people, mostly Hindus!

The government projects a very rosy picture of Indian economy so that the FDI can invest in true Indian economy as well. They invest in infrastructure, public health etc, bringing some respite to the Indian people, from the corrupt government of India.

But the good question is that from where does Indian government get such massive amounts of money, so that it can keep the Bombay Stock Exchange (BSE) index, on an average above 20,000.

The true worth of Indian economy and the companies, which contribute to the BSE Index is such that the Index will never breach 7000, without this “Government of India run Harshad Mehta Scam” uplift. And even 7000, is a higher side estimate.

So, how can an Index worth 7000 points at best be evaluated at 20,000 or above and attract massive investments from aboard. The reasons I have already given above which can be summarized as the Government of India run Harshad Mehta Scam scheme.

Now, its time to give the ways in which the Indian government gets the money needed to finance this massive rigging and scam.

The primary source of such massive funds is Taxes. Yes Taxes. Taxes are normally collected by a government to run the government and country smoothly and efficiently. Its also used for welfare schemes for the public. Instead of these legitimate uses, the Indian government collects Taxes to finance probably the biggest corruption scam that is going on anywhere in the world.

To give an example, in 2013-2014, the gross tax collection of the center amounted to rupee 13.64 Trillion or USD 226 billion. While converting from rupees to US dollars, I have made allowance for the fact that almost all figures given out by the Indian government are untrue and needs correction. I have taken into account the real size of the Indian economy and growth.

Though it’s expected of a government that the taxes it collect are used for governance and welfare. But, that will be expecting the moon from the Indian government. A large and significant part of the Taxes collected by the Indian government is illegally channeled by it to finance the Harshad Mehta type scam to book huge profits, by first buying shares in selected companies and hiking their prices artificially and than selling it at their peak. When due to reasons beyond the control of Indian government, the share prices do not rise to expected values, it has to wait. And, than many people have to wait for their salaries and public services, until such time government of India gets enough profit from its Tax investment to pay the salaries and provide services expected of it.

This has been going on a massive scale since November 1998 and November 1999, when the Indian parliament illegally passed bills pertaining to me and legalized betting on me. Incidentally, the same bills exempt me from paying Taxes either on my salaries or my private earnings. But this part of the illegal bill has never been implemented.

Though Taxes are the largest source of funding for this illegal investment in this “Government of India run Harshad Mehta Scam” scheme, but there are other sources as well.

Now, TDS is Tax Deduction at Source. This mainly applies to salary class people where the Tax is deducted every month from the salary and deposited with the central government. In many cases a flat rate is deducted, irrespective of the fact as to how much the maximum Tax such a person has to pay.

To give an example, suppose a person is earning a salary of Rs 50, 000 per month. In 12 months, the total salary comes to rupees 6 lakhs (Rs 600,000). Now as per Taxation slab, first 200,000 is rebate and non-taxable. For the amount between 200,000 to 500,000, the Tax rate is 10% , which comes to Rs 30,000. For amounts between 500,000 and 1000000, the Tax rate is 20% and for the person under discussion, it comes to Rs 20,000. Thus, the maximum Tax that is due to such a person is Rs 30,000+Rs 20,000 =Rs 50,000.

But the Tax Deduction at Source (TDS) for such a person is levied at the flat rate of 10% per month. Thus, Rs 5,000 per month TDS every month is cut from the salary of such a person and deposited in the coffers of the Indian government. This is each month. In a year it comes to Rs 60,000.

Thus, every month the Indian government is getting Rs 1000 extra per person as futile TDS. Considering that India’s population is 1.5 billion and there are more than 20 million government employees in India. Rs 1000 is about $ 16.6. Thus from the 20 million employees, the government of India is getting $ 16.6 x 20000000 =  $332000000 or 332 million US dollars above the Tax that is due collectively to all these persons combined every month.

This means that the even if the Indian government does not touch the Tax money as I had described previously, it has a minimum of 332 million US dollars every month to run the “Government of India run Harshad Mehta scam” for a minimum of one year because TDS refund is due only after filing of Income Tax return. Its true that as we go down the months, the time available for the government of India decreases. This, the government of India makes up by delaying the payment of TDS refund by at least one year in most cases and in some by 2 or more years.

To stop this illegal use of Tax Deduction at Source (TDS) money, each person should be asked to pay the exact amount of Tax at the end of financial year. Tax Deduction at Source or TDS should be abolished.

But Taxes and Tax Deduction at Source (TDS) are not the only money that Indian government is abusing in this “Government of India run Harshad Mehta scam”.

The total number of government employees in India is well over 20 million. Each has to be paid the salary every month. Apart from the above discussed ‘Tax’ and ‘TDS’ fraud, the Indian government is also using salaries in a ‘Harshad Mehta’ way. There are only very few cases of government employees getting salaries on first of every month. In most cases its delayed by a few days. In some cases, it’s delayed by weeks and in some by months. Particularly the contract employees get their salaries delayed by months. All this time the money is with the government of India. The government of India fraudulently invests this money in the ‘Government of India run Harshad Mehta scam’. But, this is slightly different from the Tax and TDS induced government of India run Harshad Mehta scam. This is for shorter duration, as salaries have to be paid. So, the government invests this money in the shorter form of the government of India run Harshad Mehta scam. This can be called the ‘salary induced government of India run Harshad Mehta scam’.

Though there are other methods by which the government of India gains public money to run these ‘Harshad Mehta’ scams but they can be take up at a different forum or article.

I am sure that by now the reader must have got an idea as to how big and massive this’ government of India run Harshad Mehta scam’ is.

The continuation of his modus operandi is testimony to the staying power of his methods and his technique in manipulating the stock and financial market. This is the legacy of Harshad Mehta. He was Big Bull. Government of India is Bigger Bull!

Have a nice day!

COPYRIGHT  © Tanvir Nebuchadnezar
All Rights Tanvir Nebuchadnezar


have nice reading!


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