http://en.wikipedia.org/wiki/Metanarrative

The following table lists the involutes of some common curves, some of which are illustrated above.

Like all the other banks, it offered assistance to the central government in financing
the war effort. Since taxes are always unpopular, the German government preferred to
borrow the needed amounts of money rather than raise its taxes substantially. To this end
it was readily assisted by the Reichsbank, which discounted most treasury obligations.

A growing percentage of government debt thus found its way into the vaults of the
central bank and an equivalent amount of printing press money into people’s cash holdings.
In short, the central bank was monetizing the growing government debt.

By the end of the war the amount of money in circulation had risen fourfold and prices
some 140 percent. Yet the German mark had suffered no more than the British pound, was
somewhat weaker than the American dollar but stronger than the French franc. Five years
later, in December 1923, the Reichsbank had issued 496.5 quintillion marks, each of which
had fallen to one-trillionth of its 1914 gold value.[1]

How stupendous! Practically every economic good and service was costing trillions of
marks. The American dollar was quoted at 4.2 trillion marks, the American penny at 42
billion marks. How could a European nation that prided itself on its high levels of
education and scholarly knowledge suffer such a thorough destruction of its money? Who
would inflict on a great nation such evil which had ominous economic, social, and
political ramifications not only for Germany but for the whole world? Was it the victors
of World War I who, in diabolical revenge, devastated the vanquished country through
ruinous financial manipulation and plunder? Every mark was printed by Germans and issued
by a central bank that was governed by Germans under a government that was purely German.
It was German political parties, such as the Socialists, the Catholic Centre Party, and
the Democrats, forming various coalition governments, that were solely responsible for the
policies they conducted. Of course, admission of responsibility for any calamity cannot be
expected from any political party.

The reasoning that led these parties to inflate the national currency at such
astronomical rates is not only interesting for economic historians, but also very
revealing of the rationale for monetary destruction. The doctrines and theories that led
to the German monetary destruction have since then caused destruction in many other
countries. In fact, they may be at work right now all over the western world. In our
judgment, four erroneous doctrines or theories guided the German monetary authorities in
those baleful years.

No Inflation in Germany

The most amazing economic sophism that was advanced by eminent financiers, politicians,
and economists endeavored to show that there was neither monetary nor credit inflation in
Germany. These experts readily admitted that the nominal amount of paper money issued was
indeed enormous. But the real value of all currency in circulation, that is, the
gold value in terms of gold or goods prices, they argued, was much lower than before the
war or than that of other industrial countries.

Minister of Finance and celebrated economist Helfferich repeatedly assured his nation
that there was no inflation in Germany since the total value of currency in circulation,
when measured in gold, was covered by the gold reserves in the Reichsbank at a much higher
ratio than before the war.[2] President of the
Reichsbank Havenstein categorically denied that the central bank had inflated the German
currency. He was convinced that it followed a restrictive policy since its portfolio was
worth, in gold marks, less than half its 1913 holdings.

Professor Julius Wolf wrote in the summer of 1922: “In proportion to the need,
less money circulates in Germany now than before the war. This statement may cause
surprise, but it is correct. The circulation is now 15–20 times that of pre-war days,
whilst prices have risen 40–50times.”[3] Similarly
Professor Elster reassured his people that “however enormous may be the apparent rise
in the circulation in 1922, actually the figures show a decline.”[4]

The Statistical Bureau of the German government even calculated the real values of the
per capita circulation in various countries. It, too, concluded that there was a shortage
of currency in Germany, but a great deal of inflation abroad.

Source: Wirtschaft und Statistjk, 1923, No. 1.

Of course, this fantastic conclusion drawn by monetary authorities and experts bore
ominous consequences for millions of people. Through devious sophisms it simply removed
the cause of disaster from individual responsibility and thus also all limits to the
issuance of more paper money.

The source of this momentous error probably lies in the ignorance of one of the most
important determinants of money value, which is the very attitude of people toward money.
For one reason or another people may vary their cash holdings. An increase in cash
holdings by many people tends to raise the exchange value of money; reduction in cash
holdings tends to lower it. Now in order to change radically their cash holdings,
individuals must have cogent reasons. They naturally enlarge their holdings whenever they
anticipate rising money value as, for instance, in a depression. And they reduce their
holdings whenever they expect declining money value. In the German hyperinflation they
reduced their holdings to an absolute minimum and finally avoided any possession at all.
It is obvious that goods prices must then rise faster and the value of money depreciate
faster than the rate of money creation. If the value of individual cash holdings declines
faster than the rate of money printing, the value of the total stock of money must also
depreciate faster than this rate. This is so well understood that even the mathematical
economists emphasize the money “velocity” in their equations and calculations of
money value.[5]
But the German monetary authorities were unaware of such basic principles of human action.

For Health, Education, Welfare, and Full Employment

Immediately after the war the German government, under the leadership of the Socialist
Party, embarked upon heavy expenditures for health, education, and welfare. The demands on
the treasury were extremely heavy anyway because of demobilization expenses, the demands
of the Armistice, the disorders of the revolution, and the staggering deficits of the
nationalized industries, especially the railroads, postal services, telephone, and
telegraph. Public administration by the new men raised to power by the revolution,
nevertheless, was extravagant, as the resources made available by the creation of new
money were apparently unlimited. A number of measures for the nationalization of certain
industries (e.g., the coal, electrical, and potash industries) were introduced, but failed
to become law. The eight-hour day was enacted, and labor unions were given many legal
immunities and privileges. In fact, a system of labor councils was set up which authorized
the workers in each enterprise to elect representatives who shared in the management of
the company! While government expenditures rose by leaps and bounds, the revenue suffered
a gradual decline until, in October 1923, only 0.8 percent of government expenses were
covered by tax revenues. For the period from 1914 to 1923 scarcely fifteen percent of the
expenses were covered by means of taxes. In the final phase of the inflation the German
government experienced a complete atrophy of the fiscal system.

The depreciation of the currency brought about the destruction of taxable wealth in the
form of mortgages, bonds, annuities, and pensions, which in turn reduced government
revenue. Some speculators reaped spectacular profits from the depreciation, but they
easily evaded the tax collector. Moreover, the fiscal policies of the socialist government
were openly hostile toward capital and frequently endeavored to impose confiscatory
capital levies upon all wealth. Secretary of the Treasury Erzberger even vowed that
“in the future Germany the rich should be no more.”[6] Consequently a
massive “flight of capital” from Germany developed as all classes of savers
invested their money in foreign bank accounts, currencies bills, securities, etc. Much
taxable wealth was removed from the grasp of tax collectors.

Finally, the rapid depreciation of currency greatly reduced all tax liabilities during
the time interval between the taxable transaction and the date of tax payment. The
taxpayer usually paid a sum whose real value was greatly reduced by inflation.
Nevertheless, government expenditure accelerated while revenue in terms of real value
continued to decline. The growing deficits then were met with even larger quantities of
printing press money, which in turn generated ever larger deficits. The German monetary
authorities, in fact, were trapped in a vicious circle from which they did not know how,
nor have the courage, to extricate themselves.

The leading monetary authority, Dr. Helfferich, even warned his people against the dire
consequences of monetary stabilization.

To follow the good counsel of stopping the printing of notes would mean refusing to
economic life the circulating medium necessary for transactions, payments of salaries and
wages, etc. It would mean that in a very short time the entire public, and above all the
Reich, could no longer pay merchants, employees, or workers. In a few weeks, besides the
printing of notes, factories, mines, railways, and post offices, national and local
government, in short, all national and economic life would be stopped.[7]

The Balance of Payments and the Treaty of Versailles

Throughout the period of the inflation the most popular explanation of the monetary
depreciation laid the blame on an unfavorable balance of payments, which in turn was
blamed on the payment of reparations and other burdens imposed by the Treaty of
Versailles. To most German writers and politicians, the government deficits and the paper
inflation were not the causes but the consequences of the external depreciation of the
mark.

The wide popularity of this explanation which charged the victorious allies with full
responsibility for the German disaster bore ominous implications for the future. Its
simplicity made it appealing to the masses of economically ignorant people whose
chauvinism and nationalism always make the idea of foreign intrigue and conspiracy so
palatable. The intellectual and political leaders who actively propagated the doctrine
were sowing the seeds for the whirlwind they reaped a decade later.

Even American economists echoed the German theory. Professor Williams presented this
causal order: “Reparation payments, depreciating exchanges, rising import and export
prices, rising domestic prices, consequent budgeting deficits, and at the same time an
increased demand for bank credit; and finally increased note-issue.”[10] Professor
Angell contended that “The reality of the type of analysis which runs from the
balance of payments and the exchanges to general prices and the increased issue of
paper seems to be definitely established.”[11]

Speculators Did It

When all other explanations are exhausted, modern governments usually fall back on the
speculator, who is held responsible for all economic and social evils. What the witch was
to medieval man, what the capitalist is to socialists and communists, the speculator is to
most politicians and statesmen: the embodiment of evil. He is said to be imbued with
ruthless and fickle selfishness that is capable of wrecking the national economy,
government plans, and, in the case of German inflation, the national currency. No matter
how blatantly contradictory this explanation may be, it is most popular with government
authorities in search of a convenient explanation for the failure of their own policies.

The same German officials who denied the very existence of inflation lamented the
depreciation caused by speculators, or they blamed the Allied reparation burdens and
simultaneously denounced speculators for the depreciation. Dr. Havenstein, the President
of the Reichsbank, embracing every conceivable theory that exculpated his policies, also
pointed at the speculators. Before a parliamentary committee he testified: “On the
28th of March began the attack on the foreign exchange market. In very numerous classes of
the German economy, from that day onwards, thought was all for personal interests and not
for the needs of the country.”[12]

In a chorus the newspapers chanted the charge:

According to all appearances the fall of the mark did not have its origin in the New
York exchange, from which it may be concluded that in Germany there was active speculation
directed towards the continual rise of the dollar.

We are witnessing a rapid increase in the number of those who speculate on the fall of
the mark and who are acquiring vested interests in a continual depreciation.

The enormous speculation on the rise of the American dollar is an open secret. People
who, having regard to their age, their inexperience, and their lack of responsibility, do
not deserve support, have nevertheless secured the help of financiers, who are thinking
exclusively of their own immediate interests.

American officials and politicians are quick to lay the blame for US difficulties on
foreign intrigue, especially that of “the Arabs.” Since the formation of the oil
producers’ cartel and the significant boost in oil prices, US balance-of-payments deficits
and the dollar weakness in foreign exchange markets are charged explicitly to the Arab
countries. Lest any suspicion should fall on the US monetary authorities, the American
people themselves come in for some of the blame. Their use of “excessive”
quantities of foreign oil is said to contribute to the balance-of-payments deficits and
the dollar weakness. Therefore, our political leaders and economic authorities are
debating the desirability of special taxes that would reduce the consumption of foreign
oil. After the Arab blow at economic well-being the US government is readying its blow for
the sake of financial stability.

Again the speculators are charged for a share of the blame American investors who buy
foreign securities or make direct foreign investments are said to be largely responsible
for the outflow of US funds and the loss of gold, which is creating an unfavorable balance
of payments and weakening the dollar. Moreover, Americans who prefer foreign products over
homemade products or choose to travel abroad rather than stay at home are decried as
selfish and unpatriotic. Numerous regulations imposed by the very monetary authorities who
perpetrate the inflation aim to prevent speculation in order to save the dollar.

The specious argument that denies the presence of any inflation in terms of purchasing
power or gold value has, in our judgment, not yet been raised. But it must be expected to
emerge in later phases of the inflation when our authorities will be desperate for any
argument that promises to exculpate them.

Hans F. Sennholz, Professor Emeritus Grove City College is an Adjunct Scholar of the
Mises Institute. See his articles.
Comment on the blog.

This article is excerpted from the book The
Age of Inflation.

Notes

[1]
Costantino Bresciani-Turroni, The Economics of Inflation (Third impression, New
York: Augustus M. Kelley, 1968), p. 440.

[2] Kar1
Helfferich, Das Geld (Leipzig: C. L. Hirschfeld, 1923 [1910]), p. 646.

[3] Julius
Wolf, Markkurs Reparationen und russisches Geschäft (Stuttgart F. Enke Verlag,
1922), p.10.

[4] Karl
Elster, Von der Mark sur Reichsmark (Jena C. Fischer 1923) p 167.

[5] Compare
Chapter I, The Value of Money.

[6] Compare
Costantino Bresciani-Turroni, The Economics of Inflation, op cit, p. 55.

[7] Das
Geld, op cit., p 650.

[8]
Statistisches Reichsamt, Deutschlands Wirtschaftslage (Berlin, March 1923), p. 24.

[9]
“Die Autonomie der Reichsbank,” Berliner-Bösen-Courier, April 4, 1922,
p. 1.

[10] John
Henry Williams, “German Foreign Trade and the Reparations Payments,” Quarterly
Journal of Economics, Vol. 36, (May 1922), p. 503.

[11] James
W. Angell, The Theory of International Prices (Cambridge, Massachusetts: Harvard
University Press, 1926), p. 195.

[12] Quoted
by Costantino Bresciani-Turroni, op. cit., p. 63.

[13] Das
Abendblatt, Berlin, May 22, 1923, p. 1.

Fuel Cell Connection/Fuel Cell Catalyst

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

FUEL CELL CONNECTION - October 2006 Issue

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

IN THIS ISSUE

* SECA SOFC Prototype Exceeds DOE Target Performance Specifications

* DOE Science Office 2007 SBIR/STTR Solicitation Includes Hydrogen Program Area

* FTA Awards $49 Million in Grants for Hydrogen Fuel Cell Bus Development

* New York State Launches Project to Demonstrate Hydrogen from Hydropower

* Successful Field Trials in South Africa Lead to Follow-On Orders for Plug Power

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

CONTENTS

News on U.S. Government Fuel Cell Programs

1. SECA SOFC Prototype Exceeds DOE Target Performance Specifications

2. NASA to Field Test Eight Fuel Cells at Lab Facility

3. USPS Expands Testing of GM Fuel Cell Vehicles

4. ORNL Research Enables Easier Hydrogen Flow

5. DOE Releases $3 Billion Climate Change Technology Program Strategic Plan

RFP / Solicitation News

6. NSF HBCU-UP Grants Available

7. ONR BAA Includes UPS Requirement for Mobile Command and Control System

8. DOE Science Office 2007 SBIR/STTR Solicitation Includes Hydrogen Program Area

9. Fuel Cell Systems Included as Category in NextEnergy Lab Competition

Contract / Funding Awards

10. FTA Awards $49 Million in Grants for Hydrogen Fuel Cell Bus Development

11. Minority Universities Receive Fuel Cell Funding from DOE

12. PEDA Awards Grant for 2-MW Fuel Cell Power Plant Project

13. Missile Defense Agency Awards $1.25 Million for Fuel Cell Research

14. Air Force Places $4.0 Order for Millennium Cell Fuel Cartridges

15. Greater Columbia Fuel Cell Challenge Selects Fuel Cell Providers

16. NSF Awards $76 Million for Science and Technology Centers

State Activities

17. New York State Launches Project to Demonstrate Hydrogen from Hydropower

18. Virginia Expands Systems Eligible for Net-Metering

Industry Headlines

19. Successful Field Trials in South Africa Lead to Follow-On Orders for Plug Power

20. Ford, BP Open Hydrogen Fueling Station in Taylor, Michigan

21. ReliOn Fuel Cell Receives CE Certification

22. FuelCell Energy to Install Power Plant Running on Milk-Processing Waste

University Activities

23. University Fuel Cell Roundup

Administration

About Fuel Cell Connection

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

News on U.S. Government Fuel Cell Programs

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

—————————————————————–

1. SECA SOFC Prototype Exceeds DOE Target Performance Specifications

—————————————————————-

———————————————————–

7. ONR BAA Includes UPS Requirement for Mobile Command and Control System

—————————————————————–

—————————————————————-

18. Virginia Expands Systems Eligible for Net-Metering

~~~~~~~~~~~~~~~~~~~~~

University Activities

~~~~~~~~~~~~~~~~~~~~~

—————————————————————-

23. University Fuel Cell Roundup

(summaries contributed by Kathy Haq, Dir. of Outreach and Communications, National Fuel
Cell Research Center, UC Irvine, khaq@nfcrc.uci.edu)

Charles Clark, director of corporate and government relations for the University of
Akron; Martin Abraham, dean of the graduate school and professor of chemical and
environmental engineering at the University of Toledo; and John Lannutti, professor of
materials science and engineering at The Ohio State University are among the individuals
recently elected to the board of directors of the Ohio Fuel Cell Coalition. [14-Sept-2006,
PR Newswire US]

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The stories about World War II in and surrounding the Pacific Islands Coral Sea
are inter-connected by recurring characters and several loose plot lines (the Solomon Islands campaign and a fictitious
amphibious invasion) but focus on interactions between Americans and a variety of
colonial, immigrant and native characters. The musical play
South Pacific (which opened on Broadway on April 7, 1949), by Rodgers and
Hammerstein, was based on these stories.

Michener wrote that he did not know who his parents were or exactly when and where he
was born. He was raised by an adoptive mother, Mabel Michener, in Doylestown, Bucks County, Pennsylvania.
Some people later argued that Mabel was in fact his biological mother but he refused to
talk about that. He graduated with highest honors from Swarthmore
College, where he played basketball, in 1929. He later
attended the Colorado State Teachers
College (in Greeley, Colorado),
earned his master’s degree, then taught there for several years. He also taught at Harvard University. His writing career began during World War II, during which, as a lieutenant commander in the
U.S. Navy, he was assigned to the South Pacific Ocean as a naval historian. His notes and
impressions were later turned into Tales of
the South Pacific, his first book, which was the basis for the Broadway and film
musical South Pacific. It was published
when he was 40. In the late 1950s, Michener began working as a
roving editor for Readers Guide. He gave up that work in 1970.

Michener was a very popular writer during his life-time and his novels sold an
estimated 75 million copies worldwide [1]. His novel Hawaii (published in 1959)
was based on extensive historical research. Nearly all his subsequent novels were based on
detailed historical, cultural, even geological research.

He was married three times. His second wife was Vange Nord (married in 1948). Michener met his third wife Mari Yoriko Sabusawa at a luncheon in Chicago and
they were married in 1955 (the same year as his divorce from Ms.
Nord). His novel Sayonara is pseudo-autobiographical.
He had no children. He gave away a great deal of the money he earned. He contributed more
than $100 million to universities, libraries, museums, and other charitable causes.

On January 10, 1977, he was
awarded the Presidential Medal of Freedom
by Gerald R. Ford.

In 1996, State House Press published "James A. Michener:
A Bibliography" compiled by David A. Groseclose. It contains over 2,500 entries from 1923 to 1995 including magazine articles,
forewords, books, and other works.

In his final years, he lived in Austin, Texas, and,
aside from being a prominent celebrity fan of the Texas Longhorns women’s basketball team, he founded an
MFA program now named the Michener Center for Writers. In October
1997, Michener ended his daily dialysis treatment and as a result he died not long
after. He was 90 years old.

November 2006

USAFNEWS

QUOTABLE QUOTES

– From the joint SECAF/CSAF Letter to Airmen: Air Force Heritage

To read the entire Letter to Airmen, go to

FROM THE SECRETARY

The Air Force Strategic Plan articulates the Air Force mission and can be viewed at http://www.af.mil/shared/media/document/AFD-060919-008.pdf.
The plan focuses on the three priorities the Air Force has had over the last few years:
winning the war on terrorism, developing Airmen, and recapitalizing the aging air fleet.

For more information, read the Air Force Print News story at

FROM THE CHIEF

In his latest “Letter to Airmen,” Air Force Chief of Staff Gen. T. Michael
Moseley discusses the two-day Air Force Memorial Dedication and the start of the year-long
commemoration of the Air Force 60th anniversary.

General Moseley said that the Memorial is a symbol of the people and technologies that
have made the U.S. Air Force the world’s preeminent air, space and cyberspace force.

He encouraged Airmen to read the speeches given at the dedication ceremony which are
attachments to the “Letter to Airmen,” released Oct. 20.

View the letter and attachments at http://www.af.mil/library/viewpoints/csaf.asp?id=282

Department of Defense and Air Force policies prohibit active participation in any
activity that promotes the objectives of organizations and groups that attempt to
illegally discriminate or otherwise deprive individuals of their civil rights. This could
include participating in public demonstrations, fund raising, recruiting, organizing,
leading or training in support of such organizations.

For more information, read the Air Force Print News story at

CSAF’S PRIORITIES

FORCE SHAPING

Reducing the number of Airmen in the service is absolutely necessary to recapitalize
today’s force. Overall, about 40,000 people will leave the service over the next three
years. The money saved will go toward recapitalizing the service’s aging aircraft and
equipment.

For more information, read the Air Force Print News story at

PERSONNEL

Chief Master Sgt. of the Air Force Rodney J. McKinley addresses the newest page on the
Air Force Portal Web site, “My Enlisted Development

The site offers one-stop shopping for enlisted Airmen’s education, training, leadership
and job experiences.

To visit the website, go to the Air Force Portal, click on “Life and Career,”
and then on “Learning and Development.”

Airmen who were recalled from or unable to take annual leave this past year for reasons
such as support for contingency operations may be allowed to accumulate more than the
normal 60 days after the fiscal year ends. Special leave accrual carry over also applies
to Air Force Reserve and Air National Guard members who performed full-time training or
other full-time duties for 30 days or more. Airmen who lost leave may carry over the
following leave amounts:

– Up to 120 days for Airmen deployed or assigned to hostile fire/imminent danger pay
areas;

– Up to 120 days for Airmen impacted by significant and unforeseen operational mission
requirements as a result of Hurricane Katrina; and

– Up to 90 days for Airmen who deployed or were assigned to other than hostile
fire/imminent danger locations.

Additionally, Airmen who lost leave as a consequence of assignments in support of
contingency operations as of Sept. 30, 2006, are authorized restoration of the leave they
lost. Those Airmen who meet the criteria for having excess leave should contact their
local military personnel flight customer service element for additional guidance, such as
eligibility to carry over leave beyond the following fiscal year.

For more information, read the Air Force Print News story at

Saving for retirement is a good idea regardless of age. The Thrift Savings Plan can
help. One of the largest benefits to the TSP is that it is a tax-deferred account, meaning
all money placed in it is done so before taxes are calculated. TSP gives investors a range
of investment options through five basic funds. Another benefit to the TSP is individuals
may take out loans from their account while they are in the military.

For more information on the TSP, visit www.tsp.gov.

60TH ANNIVERSARY

The Air Force Memorial officially opened Oct. 14, kicking off the 60th anniversary
observance. Located on a three-acre promontory next to Arlington National Cemetery and a
short walk from the Pentagon, the memorial is composed of three bold and graceful spires
soaring skyward to a height of 270 feet. The memorial honors the millions of men and women
who have served in the Air Force and its predecessor organizations.

WORTH REPEATING

– Nelson Mandela, recipient of the 1993 Nobel Peace Prize and former President of
South Africa (1994 – 1999)

RESOURCES

AIR FORCE HISTORY AND HERITAGE

Nov. 2, 1971 — Titan IIIC rockets launched the first two Defense Satellite
Communications System Phase II satellites into synchronous orbits.

Nov. 7, 1907 — Signal Corps allotted $25,000 to purchase an airplane.

Nov. 8, 1950 — First all-jet plane aerial combat in history took place over Korea. A
U.S. Air Force F–80 Shooting Star, piloted by Lt. Russell J. Brown, downed a North
Korean MiG–15.

Nov. 9, 1967 — Enemy gunners shot down a helicopter piloted by Capt. Gerald O. Young
during efforts to rescue an Army reconnaissance team near Khe Sanh, Republic of Vietnam.
Captain Young’s bravery earned the Medal of Honor.

Nov. 9, 1967 – January 1968 — Capt. Lance P. Sijan ejected from his F–4C
Phantom over North Vietnam and successfully evaded capture for more than six weeks. The
enemy eventually captured him, but he managed to escape. Captain Sijan received the Medal
of Honor posthumously.

Nov. 17, 1961 — The first successful launch of a Minuteman ICBM missile from an
underground silo took place at Cape Canaveral, Fla. The re-entry vehicle hit the target
area 3,000 miles downrange.

Nov. 22, 1952 — While leading a flight of four F–80 Shooting Star fighters
dive-bombing enemy gun positions, Maj. Charles J. Loring crashed his damaged aircraft into
enemy emplacements. Major Loring received the Medal of Honor for his sacrifice.

Nov. 25, 1956 — Tech. Sgt. R.J. Patton made the first successful polar parachute jump.

Nov. 26, 1968 — Piloting a UH–1F helicopter, 1st Lt. James P. Fleming exposed his
aircraft to intense hostile fire while rescuing a special forces reconnaissance patrol,
eventually receiving the Medal of Honor for his gallantry.

Nov. 29, 1951 — Air Force announced development of the XB-52, its first all-jet heavy
bomber.

Nov. 29, 1975 — The first Red Flag exercise began at Nellis AFB, Nev., ushering in a
new era of highly realistic air combat training for USAF pilots.

Air Force mission — The mission of the U.S. Air Force is to deliver sovereign options
for the defense of the United States of America and its global interests — to fly and
fight in air, space and cyberspace.

Air Force core competencies — Developing Airmen, technology-to-warfighting and
integrating operations.

Air Force distinctive capabilities — Air and space superiority, global attack, rapid
global mobility, precision engagement, information superiority and agile combat support.

Air Force core values — Integrity first, service before self and excellence in all we
do.

The Air Force News Agency produces Commander’s Call Topics monthly. For questions
or comments about this or any other AFNEWS product, send e-mail to products@afnews.af.mil.

To subscribe to Air Force news and information products online, go to www.af.mil/subscribe.

External links

by Clifford Geertz

The Raid

by Clifford Geertz

Playing with Fire

What makes Balinese cockfighting deep is thus not money in itself, but what, the more
of it that is involved the more so, money causes to happen: the migration of the Balinese
status hierarchy into the body of the cockfight. Psychologically an Aesopian
representation of the ideal/demonic, rather narcissistic, male self, sociologically it is
an equally Aesopian representation of the complex fields of tension set up by the
controlled, muted, ceremonial, but for all that deeply felt, interaction of those selves
in the context of everyday life. The cocks may be surrogates for their owners’
personalities, animal mirrors of psychic form, but the cockfight is - or more exactly,
deliberately is made to be - a simulation of the social matrix, the involved system of
crosscutting, overlapping, highly corporate groups –villages, kingroups, irrigation
societies, temple congregations, “castes” - in which its devotees live. And as
prestige, the necessity to affirm it, defend it, celebrate it, justify it, and just plain
bask in it (but not given the strongly ascriptive character of Balinese stratification, to
seek it), is perhaps the central driving force in the society, so also - ambulant penises,
blood sacrifices, and monetary exchanges aside - is it of the cockfight. This apparent
amusement and seeming sport is, to take another phrase from Erving
Goffman, “a status bloodbath.”

The easiest way to make this clear, and at least to some degree to demonstratee it, is
to invoke the village whose cockfighting activities I observed the closest - the one in
which the raid occurred and from which my statistical data are taken.

Consider, then, as support of the general thesis that the
cockfight, and especially the deep cockfight, is fundamentally a dramatization of status
concerns, the following facts:

1. A man virtually never bets against a cock owned by a member of his own kingroup. Usually
   he will feel obliged to bet for it, the more so the closer the kin tie and the deeper the
   fight. If he is certain in his mind that it will not win, he may just not bet at all,
   particularly if it is only a second cousin’s bird or if the fight is a shallow one. But as
   a rule he will feel he must support it and, in deep games, nearly always does. Thus the
   great majority of the people calling “five” or “spes the great majority of
   the people calling”five” or “speckled” so demonstratively are
   expressing their allegiance to their kinsman, not their evaluation of his bird, their
   understanding of probability theory, or even their hopes of unearned income.
2. This principle is extended logically. If your kin group is not involved you will support
   an allied kingroup against an unallied one in the same way, and so on through the very
   involved networks of alliances which, as I say, make up this, as any other, Balinese
   village.
3. So, too, for the village as a whole. If an outsider cock is fighting any cock from your
   village you will tend to support the local one. If, what is a rarer circumstance but
   occurs every now and then, a cock from outside your cockfight circuit is fighting one
   inside it you will also tend to support the “home bird.”
4. Cocks which come from any distance are almost always favorites, for the theory is the
   man would not have dared to bring it if it was not a good cock, the more so the further he
   has come. His followers are, of course, obliged to support him, and when the more
   grand-scale legal cockfights are held (on holidays and so on) the people of the village
   take what they regard to be the best cocks in the village, regardless of ownership, and go
   off to support them, although they will almost certainly have to give odds on them and to
   make large bets to show that they are not a cheapskate village. Actually, such “away
   games,” though infrequent, tend to mend the ruptures between village members that the
   constantly occurring “home games,” where village factions are opposed rather
   than united, exacerbate.
5. Almost all matches are sociologically relevant. You seldom get two outsider cocks
   fighting, or two cocks with no particular group backing, or with group backing which is
   mutually unrelated in any clear way. When you do get them, the game is very shallow,
   betting very slow, and the whole thing very dull, with no one save the immediate
   principals and an addict gambler or two at all interested.
6. By the same token, you rarely get two cocks from the same group, even more rarely from
   the same subfaction, and virtually never from the same sub-subfaction (which would be in
   most cases one extended family) fighting. Similarly, in outside village fights two members
   of the village will rarely fight against one another, even though, as bitter rivals, they
   would do so with enthusiasm on their home grounds.
7. On the individual level, people involved in an institutionalized hostility relationship,
   called puik, in which they do not speak or otherwise have anything to do with each other
   (the causes of this formal breaking of relations are many: wife-capture, inheritance
   arguments, political differences) will bet very heavily, sometimes almost maniacally,
   against one another in what is a frank and direct attack on the very masculinity, the
   ultimate ground of his status, of the opponent.
8. The center bet coalition is, in all but the shallowest games, always made up by
   structural allies - no “outside money” is involved. What is “outside”
   depends upon the context, of course, but given it, no outside money is mixed in with the
   main bet; if the principals cannot raise it, it is not made. The center bet, again
   especially in deeper games, is thus the most direct and open expression of social
   opposition, which is one of the reasons why both it and match making are surrounded by
   such an air of unease, furtiveness, embarrassment, and so on.
9. The rule about borrowing money - that you may borrow for a bet but not in one - stems
   (and the Balinese are quite conscious of this) from similar considerations: you are never
   at the economic mercy of your enemy that way. Gambling debts, which can get quite large on
   a rather short-term basis, are always to friends, never to enemies, structurally speaking.
10. When two cocks are structurally irrelevant or neutral so far as you are concerned
    (though, as mentioned, they almost never are to each other) you do not even ask a relative
    or a friend whom he is betting on, because if you know how he is betting and he knows you
    know, and you go the other way, it will lead to strain. This rule is explicit and rigid;
    fairly elaborate, even rather artificial precautions are taken to avoid breaking it. At
    the very least you must pretend not to notice what he is doing, and he what you are doing.
11. There is a special word for betting against the grain, which is also the word for
    “pardon me” (mpura). It is considered a bad thing to do, though if the center
    bet is small it is sometimes all right as long as you do not do it too often. But the
    larger the bet and the more frequently you do it, the more the “pardon me” tack
    will lead to social disruption.
12. In fact, the institutionalized hostility relation, puik, is often formally initiated
    (though its causes always lie elsewhere) by such a “pardon me” bet in a deep
    fight, putting the symbolic fat in the fire. Similarly, the end of such a relationship and
    resumption of normal social intercourse is often signalized (but, again, not actually
    brought about) by one or the other of the enemies supporting the other’s bird.
13. In sticky, cross-loyalty situations, of which in this extraordinarily complex social
    system there are of course many, where a man is caught between two more or less equally
    balanced loyalties, he tends to wander off for a cup of coffee or something to avoid
    having to bet, a form of behavior reminiscent of that of American voters in similar
    situations.
14. The people involved in the center bet are, especially in deep fights, virtually always
    leading members of their group-kinship, village, or whatever. Further, those who bet on
    the side (including these people) are, as I have already remarked, the more established
    members of the village - the solid citizens. Cockfighting is for those who are involved in
    the everyday politics of prestige as well, not for youth, women, subordinates, and so
    forth.
15. So far as money is concerned, the explicitly expressed attitude toward it is that it is
    a secondary matter. It is not, as I have said, of no importance; Balinese are no happier
    to lose several weeks’ income than anyone else. But they mainly look on the monetary
    aspects of the cockfight as self-balancing, a matter of just moving money around,
    circulating it among a fairly well-defined group of serious cockfighters. The really
    important wins and losses are seen mostly in other terms, and the general attitude toward
    wagering is not any hope of cleaning up, of making a killing (addict gamblers again
    excepted), but that of the horseplayer’s prayer: “Oh, God, please let me break
    even.” In prestige terms, however, you do not want to break even, but, in a
    momentary, punctuate sort of way, win utterly. The talk (which goes on all the time) is
    about fights against such-and-such a cock of So-and-So which your cock demolished, not on
    how much you won, a fact people, even for large bets, rarely remember for any length of
    time, though they will remember the day they did in Pan Loh’s finest cock for years.
16. You must bet on cocks of your own group aside from mere loyalty considerations, for if
    you do not people generally will say, “What! Is he too proud for the likes of us?
    Does he have to go to Java or Den Pasar [the capital town] to bet, he is such an important
    man?” Thus there is a general pressure to bet not only to show that you are important
    locally, but that you are not so important that you look down on everyone else as unfit
    even to be rivals. Similarly, home team people must bet against outside cocks or the
    outsiders will accuse it - a serious charge - of just collecting entry fees and not really
    being interested in cockfighting, as well as again being arrogant and insulting.
17. Finally, the Balinese peasants themselves are quite aware of all this and can and, at
    least to an ethnographer, do state most of it in approximately the same terms as I have.
    Fighting cocks, almost every Balinese I have ever discussed the subject with has said, is
    like playing with fire only not getting burned. You activate village and kingroup
    rivalries and hostilities, but in “play” form, coming dangerously and
    entrancingly close to the expression of open and direct interpersonal and intergroup
    aggression (something which, again, almost never happens in the normal course of ordinary
    life), but not quite, because, after all, it is “only a cockfight.”

More observations of this sort could be advanced, but perhaps the general point is, if
not made, at least well-delineated, and the whole argument thus far can be usefully
summarized in a formal paradigm:

Zeti Akhtar Aziz: New opportunities for growth and development in Islamic

Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the
official ceremony for the completion of the Share Subscription Agreement between BIMB
Holdings Berhad, Bank Islam Malaysia Berhad, Dubai Financial LLC & Lembaga Tabung
Haji, Kuala Lumpur, 16 October 2006.

* * *

The partnership between BIMB Holdings Berhad, Dubai Financial LLC and Lembaga Tabung
Haji is significant in several important ways. Firstly, it reflects the confidence and
trust that international and domestic investors have in the investment and business
climate in Malaysia, and in the Malaysian Islamic financial sector
in particular. Indeed, the Islamic financial services industry in Malaysia has experienced
robust growth in addition to being reinforced by enhanced market discipline and
transparency, and the vibrancy of the Islamic financial market
developments in Malaysia. The latest financial indicators show that the Islamic banking industry remains well-capitalised with a
risk-weighted capital ratio of 14.8% as at end-August 2006, while the net non-performing
financing ratio has declined to 4.2%. Clearly, therefore, the industry is strong,
resilient and well-positioned to meet emerging

challenges and to capitalise on new opportunities for the mutual return of its
stakeholders.

Secondly, this partnership comes at a significant juncture when Malaysia is enhancing
the

international dimension of its Islamic banking and financial
market, with the introduction of increased foreign participation. In line with the
aspiration to position Malaysia as an international Islamic
financial centre (MIFC), new licences and business divisions to conduct
international currency Islamic banking business, tax and other incentives have been
introduced to attract global Islamic financial institutions to make Malaysia the hub for
their regional business operations. These measures and incentives are also expected to
attract international investors, including from the Middle East, to leverage on Malaysia
as an investment gateway to tap the rapidly growing investment opportunities in the East
Asian region.

Thirdly, this partnership also serves to enhance Malaysia as a centre of product
innovation in Islamic finance. Indeed, conscious efforts have been made to ensure a
conducive environment for innovation in Malaysia, including the development of the
necessary pool of expertise and talent to drive such innovation. Within Bank Islam itself,
there is a track record and brand name for innovation, with the development of new
business models and product offerings. This partnership would thus contribute towards
accelerating this process and towards serving as a bridge to strengthen the relationship
of the Islamic financial markets as well as the investment
and trade ties between the West Asian and North African regions, with East Asia.

Strengthening the capital of a financial institution, however, is not the only factor
that will determine its capacity and potential to perform. Equally important is the
quality of its talent, the systems that it has in place, in particular, its risk
management and ICT systems and its governance structure, its leadership and its corporate
culture. Thus, while this capitalisation exercise will put Bank Islam in a stronger
position to tap new opportunities, all the other elements also need to be in place to
enable the institution to realise its true potential.

Sound corporate governance and effective management of banking institutions are vital
to ensure their effective and sound functioning. In particular, significant shareholders
are expected to play an active role to ensure that capable individuals are appointed on
the Board and senior management of banking institutions.

Bank Negara Malaysia had as early as 2001 required the Board and management of Bank
Islam to undertake remedial actions on several operational and control weaknesses. When
the weaknesses

were not adequately addressed, the process of reconstituting the Board and management
of Bank Islam was initiated in 2003. In such an exercise, key shareholders are expected to
be proactive in making prudent and responsible action to remove any member or employee
that is found to be unsuitable or not having the required calibre so as to avoid a
prolonged process in the reconstruction of the Board and management of the bank. It needs
to be recognized that the responsibility for the safety and soundness at the institutional
level rests primarily with the Board and the management of each banking institution and
the key stakeholders such as the significant shareholders. Institutional investors should
also have an active role and make swift and bold decisions in ensuring that only capable
individuals are appointed and remain on the Board and senior management of banking
institutions.

Currently, virtually all the directors and key executives of Bank Islam are new, with
diverse banking experience. In accelerating the provisions and in instituting the measures
to address the bank’s system, processes and business culture, it has now paved the way for
drawing in new shareholders. It can now offer a valued proposition. And indeed, the
participation of a new strategic investor will in fact further strengthen the bank. This
has allowed the existing and new shareholders to focus taking the bank to the next level
and to capitalize on the new opportunities the environment offers.

Indeed, the bank can gainfully advance to venture abroad to explore new business
opportunities in the regional markets. The growth prospects will also be further
strengthened by the overall performance of the industry and the sound and mutually
reinforcing inter-linkages of the various market components in the Islamic
financial system.

In closing, I would like to take this opportunity to congratulate BIMB Holdings Berhad,
Bank Islam Malaysia Berhad, Dubai Financial LLC and Lembaga Tabung Haji for their
contributions in the successful completion of the share subscription agreement for Bank
Islam. I wish Bank Islam and its shareholders every success in taking the Bank to greater
heights in its future endeavours.

Thank you.

Bank for International Settlements

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