Morphed Ideologies. Thought of the Day 105.0


edited political spectrum

The sense of living in a post-fascist world is not shared by Marxists, of course, who ever since the first appearance of Mussolini’s virulently anti-communist squadrismo have instinctively assumed fascism to be be endemic to capitalism. No matter how much it may appear to be an autonomous force, it is for them inextricably bound up with the defensive reaction of bourgeoisie elites or big business to the attempts by revolutionary socialists to bring about the fundamental changes needed to assure social justice through a radical redistribution of wealth and power. According to which school or current of Marxism is carrying out the analysis, the precise sector or agency within capitalism that is the protagonist or backer of fascism’s elaborate pseudo-revolutionary pre-emptive strike, its degree of independence from the bourgeoisie elements who benefit from it, and the amount of genuine support it can win within the working class varies appreciably. But for all concerned, fascism is a copious taxonomic pot into which is thrown without too much intellectual agonizing over definitional or taxonomic niceties. For them, Brecht’s warning at the end of Arturo Ui has lost none of its topicality: “The womb that produced him is still fertile”.

The fact that two such conflicting perspectives can exist on the same subject can be explained as a consequence of the particular nature of all generic concepts within the human sciences. To go further into this phenomenon means entering a field of studies where philosophy of the social sciences has again proliferated conflicting positions, this time concerning the complex and largely subliminal processes involved in conceptualization and modeling in the pursuit of definite, if not definitive, knowledge. According to Max Weber, terms such as capitalism and socialism are ideal types, heuristic devices created by an act of idealizing abstraction. This cognitive process, which in good social scientific practice is carried out as consciously and scrupulously as possible, extracts a small group of salient features perceived as common to a particular generic phenomenon and assembles them into a definitional minimum which is at bottom a utopia.

The result of idealizing abstraction is a conceptually pure, artificially tidy model which does not correspond exactly to any concrete manifestation of the generic phenomenon being investigated, since in reality these are always inextricably mixed up with features, attributes, and surface details which are not considered definitional or as unique to that example of it. The dominant paradigm of the social sciences at any one time, the hegemonic political values and academic tradition prevailing in a particular geography, the political and moral values of the individual researcher all contribute to determining what common features are regarded as salient or definitional. There is no objective reality or objective definition of any aspect of it, and no simple correspondence between a word and what it means, the signifier and the signified, since it is axiomatic to Weber’s world-view that the human mind attaches significance to an essentially absurd universe and thus literally creates value and meaning, even when attempting to understand the world objectively. The basic question to be asked about any definition of fascism therefore, is not whether it is true, but whether it is heuristically useful: what can be seen or understood about concrete human phenomenon when it is applied that could not otherwise be seen, and what is obscured by it.

In his theory of ideological morphology, the British political scientist Michael Freeden has elaborated a nominalist and hence anti-essentialist approach to the definition of generic ideological terms that is deeply compatible with Weberian heuristics. He distinguishes between the ineliminable attributes or properties with which conventional usage endows them and those adjacent and peripheral to them which vary according to specific national, cultural or historical context. To cite the example he gives, liberalism can be argued to contain axiomatically, and hence at its definitional core, the idea of individual, rationally defensible liberty. however, the precise relationship of such liberty to laissez-faire capitalism, nationalism, the sanctuary, or the right of the state to override individual human rights in the defense of collective liberty or the welfare of the majority is infinitely negotiable and contestable. So are the ideal political institutions and policies that a state should adopt in order to guarantee liberty, which explains why democratic politics can never be fully consensual across a range of issues without there being something seriously wrong. It is the fact that each ideology is a cluster of concepts comprising ineliminable with eliminable ones that accounts for the way ideologies are able to evolve over time while still remaining recognizably the same and why so many variants of the same ideology can arise in different societies and historical contexts. It also explains why every concrete permutation of an ideology is simultaneously unique and the manifestation of the generic “ism”, which may assume radical morphological transformations in its outward appearance without losing its definitional ideological core.


Highest Reality. Thought of the Day 70.0


यावचिन्त्यावात्मास्य शक्तिश्चैतौ परमार्थो भवतः॥१॥

Yāvacintyāvātmāsya śaktiścaitau paramārtho bhavataḥ

These two (etau), the Self (ātmā) and (ca) His (asya) Power (śaktiḥ) —who (yau) (are) inconceivable (acintyau)—, constitute (bhavataḥ) the Highest Reality (parama-arthaḥ)

The Self is the Core of all, and His Power has become all. I call the Core “the Self” for the sake of bringing more light instead of more darkness. If I had called Him “Śiva”, some people might consider Him as the well-known puranic Śiva who is a great ascetic living in a cave and whose main task consists in destroying the universe, etc. Other people would think that, as Viṣṇu is greater than Śiva, he should be the Core of all and not Śiva. In turn, there is also a tendency to regard Śiva like impersonal while Viṣṇu is personal. There is no end to spiritual foolishness indeed, because there is no difference between Śiva and Viṣṇu really. Anyway, other people could suggest that a better name would be Brahman, etc. In order not to fall into all that ignorant mess of names and viewpoints, I chose to assign the name “Self” to the Core of all. In the end, when spiritual enlightenment arrives, one’s own mind is withdrawn (as I will tell by an aphorism later on), and consequently there is nobody to think about if “This Core of all” is personal, impersonal, Śiva, Viṣṇu, Brahman, etc. Ego just collapses and This that remains is the Self as He essentially is.

He and His Power are completely inconceivable, i.e. beyond the mental sphere. The Play of names, viewpoints and such is performed by His Power, which is always so frisky. All in all, the constant question is always: “Is oneself completely free like the Self?”. If the answer is “Yes”, one has accomplished the goal of life. And if the answer is “No”, one must get rid of his own bondage somehow then. The Self and His Power constitute the Highest Reality. Once you can attain them, so to speak, you are completely free like Them both. The Self and His Power are “two” only in the sphere of words, because as a matter of fact they form one compact mass of Absolute Freedom and Bliss. Just as the sun can be divided into “core of the sun, surface of the sun, crown”, etc.

तयोरुभयोः स्वरूपं स्वातन्त्र्यानन्दात्मकैकघनत्वेनापि तत्सन्तताध्ययनाय वचोविषय एव द्विधाकृतम्

Tayorubhayoḥ svarūpaṁ svātantryānandātmakaikaghanatvenāpi tatsantatādhyayanāya vacoviṣaya eva dvidhākṛtam

Even though (api) the essential nature (sva-rūpam) of Them (tayoḥ) both (ubhayoḥ) (is) one compact mass (eka-ghanatvena) composed of (ātmaka) Absolute Freedom (svātantrya)(and) Bliss (ānanda), it is divided into two (dvidhā-kṛtam) —only (eva) in the sphere (viṣaye) of words (vacas)— for its close study (tad-santata-adhyayanāya)

The Self is Absolute Freedom and His Power is Bliss. Both form a compact mass (i.e. omnipresent). In other words, the Highest Reality is always “One without a second”, but, in the world of words It is divided into two for studying It in detail. When this division occurs, the act of coming to recognize or realize the Highest Reality is made easier. So, the very Highest Reality generates this division in the sphere of words as a help for the spiritual aspirants to realize It faster.

आत्मा प्रकाशात्मकशुद्धबोधोऽपि सोऽहमिति वचोविषये स्मृतः

Ātmā prakāśātmakaśuddhabodho’pi so’hamiti vacoviṣaye smṛtaḥ

Although (api) the Self (ātmā) (is) pure (śuddha) Consciousness (bodhaḥ) consisting of (ātmaka) Prakāśa or Light (prakāśa), He (saḥ) is called (smṛtaḥ) “I” (aham iti) in the sphere (viṣaye) of words (vacas)

The Self is pure Consciousness, viz. the Supreme Subject who is never an object. Therefore, He cannot be perceived in the form of “this” or “that”. He cannot even be delineated in thought by any means. Anyway, in the world of words, He is called “I” or also “real I” for the sake of showing that He is higher than the false “I” or ego.

Capital as a Symbolic Representation of Power. Nitzan’s and Bichler’s Capital as Power: A Study of Order and Creorder.


The secret to understanding accumulation, lies not in the narrow confines of production and consumption, but in the broader processes and institutions of power. Capital, is neither a material object nor a social relationship embedded in material entities. It is not ‘augmented’ by power. It is, in itself, a symbolic representation of power….

Unlike the elusive liberals, Marxists try to deal with power head on – yet they too end up with a fractured picture. Unable to fit power into Marx’s value analysis, they have split their inquiry into three distinct branches: a neo-Marxian economics that substitutes monopoly for labour values; a cultural analysis whose extreme versions reject the existence of ‘economics’ altogether (and eventually also the existence of any ‘objective’ order); and a state theory that oscillates between two opposite positions – one that prioritizes state power by demoting the ‘laws’ of the economy, and another that endorses the ‘laws’ of the economy by annulling the autonomy of the state. Gradually, each of these branches has developed its own orthodoxies, academic bureaucracies and barriers. And as the fractures have deepened, the capitalist totality that Marx was so keen on uncovering has dissipated….

The commodified structure of capitalism, Marx argues, is anchored in the labour process: the accumulation of capital is denominated in prices; prices reflect labour values; and labour values are determined by the productive labour time necessary to make the commodities. This sequence is intuitively appealing and politically motivating, but it runs into logical and empirical impossibilities at every step of the way. First, it is impossible to differentiate productive from unproductive labour. Second, even if we knew what productive labour was, there would still be no way of knowing how much productive labour goes into a given commodity, and therefore no way of knowing the labour value of that commodity and the amount of surplus value it embodies. And finally, even if labour values were known, there would be no consistent way to convert them into prices and surplus value into profit. So, in the end, Marxism cannot explain the prices of commodities – not in detail and not even approximately. And without a theory of prices, there can be no theory of profit and accumulation and therefore no theory of capitalism….

Modern capitalists are removed from production: they are absentee owners. Their ownership, says Veblen, doesn’t contribute to industry; it merely controls it for profitable ends. And since the owners are absent from industry, the only way for them to exact their profit is by ‘sabotaging’ industry. From this viewpoint, the accumulation of capital is the manifestation not of productive contribution but of organized power.

To be sure, the process by which capitalists ‘translate’ qualitatively different power processes into quantitatively unified measures of earnings and capitalization isn’t very ‘objective’. Filtered through the conventional assessments of accountants and the future speculations of investors, the conversion is deeply inter-subjective. But it is also very real, extremely imposing and, as we shall see, surprisingly well-defined.

These insights can be extended into a broader metaphor of a ‘social hologram’: a framework that integrates the resonating productive interactions of industry with the dissonant power limitations of business. These hologramic spectacles allow us to theorize the power underpinnings of accumulation, explore their historical evolution and understand the ways in which various forms of power are imprinted on and instituted in the corporation…..

Business enterprise diverts and limits industry instead of boosting it; that ‘business as usual’ needs and implies strategic limitation; that most firms are not passive price takers but active price makers, and that their autonomy makes ‘pure’ economics indeterminate; that the ‘normal rate of return’, just like the ancient rate of interest, is a manifestation not of productive yield but of organized power; that the corporation emerged not to enhance productivity but to contain it; that equity and debt have little to do with material wealth and everything to do with systemic power; and, finally, that there is little point talking about the deviations and distortions of ‘financial capital’ simply because there is no ‘productive capital’ to deviate from and distort.

Jonathan Nitzan, Shimshon Bichler- Capital as Power:_ A Study of Order and Creorder 


Cartographies of Disjunction’s Relational Dust. Thought of the Day 27.0


The biogrammatic interface, generates a political aesthetic in which action is felt through the affective modulations and/or tonalities it incites. A doubling occurs in the moving towards realization, the rearticulation, of the becoming-thing/gesture. This doubling divides in a central differentiation, referencing a voluminous vocabulary of the interstitial – fissure, gap, disjunction, in-between, crack, interface, fold, non-place – descriptors of a bifurcating rift between content and expression, necessary for realization. Deleuze sums up the crux of this Foucauldian argument:

Things can be realized only through doubling or dissociation, creating divergent forms among which they can be distributed. It is here that we see the great dualities: between different classes, or the governing and the governed, or the public and the private. But more than this, it is here that the two forms of realization diverge or become differentiated: a form of expression and a form of content, a discursive and a non- discursive form, the form of the visible and the form of the articulable. It is precisely because the immanent cause, in both its matter and its functions, disregards form, that it is realized on the basis of a central differentiation which, on the one hand will form visible matter, and on the other will formalize articulable functions.’ (Gilles Deleuze, Sean Hand-Foucault)

It can be argued that this central differentiation or interface distinguishes between the movements of two diagrammatic registers: outside from inside and the forms of realization. Transductive processes between these registers mark portals of entry through which all points of the diagram are in superposition, in passage as intensities of non-localizable relations from one point to another. The diagram distributes affective intensities within the context it maps.

Deleuze elasticizes Foucault’s reach by translating his oeuvre within the folding/unfolding of a knowledge-power-subjectivity continuum, mapping Foucault’s relays between the bifurcating polarities of content/expression, visibilities/statements as they differentiate and integrate through the folding ‘zone of subjectification’. The biogramming interface. The ‘event’ of rearticulation, of knowledge-capture and distribution, takes place through the perceptual filter of differential relations becoming-actual as a perception or thought. This is a topological dynamic mapped by the diagram, affected through the central differentiation (biogram) ‘or the ‘non-place’, as Foucault puts it, where the informal diagram is swallowed up and becomes embodied instead in two different directions that are necessarily divergent and irreducible. The concrete assemblages are therefore opened up by a crack that determines how the abstract machine performs’. It’s the process of swallowing up the relational intensities of a milieu and spitting back out certain selected somethings to be swallowed again that’s of particular interest to political aesthetics of the performative event. Foucault imagined a cartographic container of forces, affects, attractions and repulsions that modulate the diagram, excite the disjunction that separates forms of realization. The abstract machine begins to actualize its virtual potential as it distributes its relational dust.


Kenneth Knoespel notes that diagramma in the original Greek does ‘not simply mean something that is marked out by lines, a figure, a form or a plan, but also carries a second connotation of marking or crossing out,’ suggesting not only ephemerality but also an incompleteness that carries an expectation of potential. ‘What is interesting is that the diagram participates in a geneology of figures that moves from the wax tablet to the computer screen […] the Greek setting of diagram suggests that any figure that is drawn is accompanied by an expectancy that it will be redrawn […] Here a diagram may be thought of as a relay. While a diagram may have been used visually to reinforce an idea one moment, the next it may provide a means of seeing something never seen before. Diagrams As Piloting Devices…


Biogrammatic Vir(Ac)tuality. Note Quote.

In Foucault’s most famous example, the prison acts as the confluence of content (prisoners) and expression (law, penal code) (Gilles Deleuze, Sean Hand-Foucault). Informal Diagrams are proliferate. As abstract machines they contain the transversal vectors that cut across a panoply of features (such as institutions, classes, persons, economic formation, etc), mapping from point to relational point, the generalized features of power economies. The disciplinary diagram explored by Foucault, imposes “a particular conduct upon a particular human multiplicity”. The imposition of force upon force affects and effectuates the felt experience of a life, a living. Deleuze has called the abstract machine “pure matter/function” in which relations between forces are nonetheless very real.

[…] the diagram acts as a non-unifying immanent cause that is co-extensive with the whole social field: the abstract machine is like the cause of the concrete assemblages that execute its relations; and these relations between forces take place ‘not above’ but within the very tissue of the assemblages they produce.

The processual conjunction of content and expression; the cutting edge of deterritorialization:

The relations of power and resistance between theory and practice resonate – becoming-form; diagrammatics as praxis, integrates and differentiates the immanent cause and quasi-cause of the actualized occasions of research/creation. What do we mean by immanent cause? It is a cause which is realized, integrated and distinguished in its effect. Or rather, the immanent cause is realized, integrated and distinguished by its effect. In this way there is a correlation or mutual presupposition between cause and effect, between abstract machine and concrete assemblages

Memory is the real name of the relation to oneself, or the affect of self by self […] Time becomes a subject because it is the folding of the outside…forces every present into forgetting but preserves the whole of the past within memory: forgetting is the impossibiltiy of return and memory is the necessity of renewal.


The figure on the left is Henri Bergson’s diagram of an infinitely contracted past that directly intersects with the body at point S – a mobile, sensorimotor present where memory is closest to action. Plane P represents the actual present; plane of contact with objects. The AB segments represent repetitive compressions of memory. As memory contracts it gets closer to action. In it’s more expanded forms it is closer to dreams. The figure on the right extrapolates from Bergson’s memory model to describe the Biogrammatic ontological vector of the Diagram as it moves from abstract (informal) machine in the most expanded form “A” through the cone “tissue” to the phase-shifting (formal), arriving at the Strata of the P plane to become artefact. The ontological vector passes through the stratified, through the interval of difference created in the phase shift (the same phase shift that separates and folds content and expression to move vertically, transversally, back through to the abstract diagram.)

A spatio-temporal-material contracting-expanding of the abstract machine is the processual thinking-feeling-articulating of the diagram becoming-cartographic; synaesthetic conceptual mapping. A play of forces, a series of relays, affecting a tendency toward an inflection of the informal diagram becoming-form. The inflected diagram/biogram folds and unfolds perception, appearances; rides in the gap of becoming between content and expression; intuitively transduces the actualizing (thinking, drawing, marking, erasing) of matter-movement, of expressivity-movement. “To follow the flow of matter… is intuition in action.” A processual stage that prehends the process of the virtual actualizing;

the creative construction of a new reality. The biogrammatic stage of the diagrammatic is paradoxically double in that it is both the actualizing of the abstract machine (contraction) and the recursive counter-actualization of the formal diagram (détournement); virtual and actual.

It is the event-dimension of potential – that is the effective dimension of the interrelating of elements, of their belonging to each other. That belonging is a dynamic corporeal “abstraction” – the “drawing off” (transductive conversion) of the corporeal into its dynamism (yielding the event) […] In direct channeling. That is, in a directional channeling: ontological vector. The transductive conversion is an ontological vector that in-gathers a heterogeneity of substantial elements along with the already-constituted abstractions of language (“meaning”) and delivers them together to change. (Brian Massumi Parables for the Virtual Movement, Affect, Sensation)

Skin is the space of the body the BwO that is interior and exterior. Interstitial matter of the space of the body.


The material markings and traces of a diagrammatic process, a ‘capturing’ becoming-form. A diagrammatic capturing involves a transductive process between a biogrammatic form of content and a form of expression. The formal diagram is thus an individuating phase-shift as Simondon would have it, always out-of-phase with itself. A becoming-form that inhabits the gap, the difference, between the wave phase of the biogrammatic that synaesthetically draws off the intermix of substance and language in the event-dimension and the drawing of wave phase in which partial capture is formalized. The phase shift difference never acquires a vectorial intention. A pre-decisive, pre-emptive drawing of phase-shifting with a “drawing off” the biogram.


If effects realize something this is because the relations between forces or power relations, are merely virtual, potential, unstable vanishing and molecular, and define only possibilities of interaction so long as they do not enter a macroscopic whole capable of giving form to their fluid manner and diffuse function. But realization is equally an integration, a collection of progressive integrations that are initially local and then become or tend to become global, aligning, homogenizing and summarizing relations between forces: here law is the integration of illegalisms.


Left’s Alt-Right Hitmen…..

Enter ye in at the strait gate: for wide is the gate, and broad is the way, that leadeth to destruction, and many there be which go in thereat: Because strait is the gate, and narrow is the way, which leadeth unto life, and few there be that find it. Beware of false prophets, which come to you in sheep’s clothing, but inwardly they are ravening wolves. Matthew 7:13-21


Social Pathology………..As much as NRx is an intellectual movement it does need people. Not just in terms of thinking, but in terms of disseminating ideas, organising people and so on. It doesn’t need to be a “mass movement” but it does need to be a real movement, otherwise it’s simply pie in the sky ideas and will be without any historical relevance whatsoever. The problem is for NRx is not just diagnosis, the problem is how to move the world. The apparent current strategy, of being the last man standing, is false.  A collapsing society produces power vacuums and that vacuum is going to be filled either by NRx grasping power or someone else doing it. Power tempered by ideas is the ultimate imperative of NRx.

NRx seemed to provide a space where intelligent ideas could be discussed freely and a rallying point for those intelligent but dissatisfied people of the right. However, with the infusion of the alt-Right, thought policing–admittedly of different kind–has returned with methods of the Social Justice Warriors, driving away the intelligent people.

For the Left, this state of affairs is particularly fortuitous and sometimes you have to wonder if they bring out their alt-Right hitmen every now and then to discredit intelligent Rightists through guilt by association. 


Category-Theoretic Sinks

The concept dual to that of source is called sink. Whereas the concepts of sources and sinks are dual to each other, frequently sources occur more naturally than sinks.

A sink is a pair ((fi)i∈I, A), sometimes denoted by (fi,A)I or (Aifi A)I consisting of an object A (the codomain of the sink) and a family of morphisms fi : Ai → A indexed by some class I. The family (Ai)i∈I is called the domain of the sink. Composition of sinks is defined in the (obvious) way dual to that of composition of sources.


In Set, a sink (Aifi A)I is an epi-sink if and only if it is jointly surjective, i.e., iff A = ∪i∈I fi[Ai]. In every construct, all jointly surjective sinks are epi-sinks. The converse implication holds, e.g., in Vec, Pos, Top, and Σ-Seq. A category A is thin if and only if every sink in A is an epi-sink.



The ancient Egyptians conceived man and kosmos to be dual: firstly, the High God or Divine Mind arose out of the Primeval Waters of space at the beginning of manifestation; secondly, the material aspect expressing what is in the Divine Mind must be in a process of ever-becoming. In other words, the kosmos consists of body and soul. Man emanated in the image of divinity is similarly dual and his evolutionary goal is a fully conscious return to the Divine Mind.

Space, symbolized by the Primeval Waters, contains the seeds and possibilities of all living things in their quiescent state. At the right moment for awakenment, all will take up forms in accordance with inherent qualities. Or to express it in another way: the Word uttered by the Divine Mind calls manifested life to begin once more.

Growth is effected through a succession of lives, a concept that is found in texts and implied in symbolism. Herodotus, the Greek historian (5th century B.C.), wrote that

the Egyptians were the first to teach that the human soul is immortal, and at the death of the body enters into some other living thing then coming to birth; and after passing through all creatures of land, sea, and air (which cycle it completes in three thousand years) it enters once more into a human body, at birth.

The theory of reincarnation is often ascribed to Pythagoras, since he spent some time in Egypt studying its philosophy and, according to Herodotus, “adopted this opinion as if it were his own.”

Margaret A. Murray, who worked with Flinders Petrie, illustrates the Egyptian belief by referring to the ka-names of three kings (The ka-name relates to the vital essence of an individual); the first two of the twelfth dynasty: that of Amonemhat I means “He who repeats births,” Senusert I: “He whose births live,” and the ka-name of Setekhy I of the nineteenth dynasty was “Repeater of births.” (The Splendour That Was Egypt)

Reincarnation has been connected with the rites of Osiris, one of the Mysteries or cycles of initiation perpetuated in Egypt. The concept of transformation as recorded in the Egyptian texts has been interpreted in various ways. De Briere expresses it in astronomical terms: “The sensitive soul re-entered by the gate of the gods, or the Capricorn, into the Amenthe, the watery heavens, where it dwelt always with pleasure; until, descending by the gate of men, or the Cancer, it came to animate a new body.” Herodotus writes of transmigration, i.e., that the soul passes through various animals before being reborn in human form. This refers not to the human soul but to the molecules, atoms, and other components that clothe it. They gravitate to vehicles similar in qualities to their former host’s, drawn magnetically to the new milieu by the imprint made by the human soul, whether it be fine or gross. It is quite clear from the Book of the Dead and other texts that the soul itself after death undergoes experiences in the Duat (Dwat) or Underworld, the realm and condition between heaven and earth, or beneath the earth, supposedly traversed by the sun from sunset to sunrise.

The evolution of consciousness is symbolized by the Solar Barque moving through the Duat. In this context the “hours” of travel represent stages of development. Bika Reed states that at a certain “hour” the individual meets the “Rebel in the Soul,”  that is, at the “hour of spiritual transformation.” And translating from the scroll Reed gives: “the soul warns, only if a man is allowed to continue evolving, can the intellect reach the heart.”

Not only does the scripture deal with rituals assumed to apply to after-death conditions — in some respects similar to the Book of the Dead — but also it seems quite patently a ritual connected with initiation from one level of self-becoming to another. Nevertheless the picture that emerges is that of the “deceased” or candidate for initiation reaching a fork offering two paths called “The Two Paths of Liberation” and, while each may take the neophyte to the abode of the Akhu (the “Blessed”) — a name for the gods, and also for the successful initiates — they involve different experiences. One path, passing over land and water, is that of Osiris or cyclic nature and involves many incarnations. The other way leads through fire in a direct or shortened passage along the route of Horus who in many texts symbolizes the divine spark in the heart.

In the Corpus Hermeticum, Thoth — Tehuti — was the Mind of the Deity, whom the Alexandrian Greeks identified with Hermes. For example, one of the chief books in the Hermetica is the Poimandres treatise, or Pymander. The early trinity Atum-Ptah-Thoth was rendered into Greek as theos (god) — demiourgos or demourgos-nous (Demiurge or Demiurgic Mind) — nous and logos (Mind and Word). The text states that Thoth, after planning and engineering the kosmos, unites himself with the Demiurgic Mind. There are other expressions proving that the Poimandres text is a Hellenized version of Egyptian doctrine. An important concept therein is that of “making-new-again.” The treatise claims that all animal and vegetable forms contain in themselves “the seed of again-becoming” — a clear reference to reimbodiment — “every birth of flesh ensouled . . . shall of necessity renew itself.” G. R. S. Mead interprets this as palingenesis or reincarnation — “the renewal on the karmic wheel of birth-and-death.” (Thrice-Greatest Hermes)

The Corpus Hermeticum or Books of Hermes are believed by some scholars to have been borrowed from Christian texts, but their concepts are definitely ancient Egyptian in origin, translated into Alexandrian Greek, and Latin.

Looking at Walter Scott’s translation of Poimandres, it states that “At the dissolution of your material body, you first yield up the body itself to be changed,” and it will be absorbed by nature. The rest of the individual’s components return to “their own sources, becoming parts of the universe, and entering into fresh combinations to do other work.” After this, the real or inner man “mounts upward through the structure of the heavens,” leaving off in each of the seven zones certain energies and related substances. The first zone is that of the Moon; the second, the planet Mercury; the third, Venus; fourth, the Sun; fifth, Mars; sixth, Jupiter; and seventh, Saturn. “Having been stripped of all that was wrought upon him” in his previous descent into incarnation on Earth, he ascends to the highest sphere, “being now possessed of his own proper power.” Finally, he enters into divinity. “This is the Good; this is the consummation, for those who have got gnosis.” (According to Scott, gnosis in this context means not only knowledge of divinity but also the relationship between man’s real self and the godhead.)

Further on, the Poimandres explains that the mind and soul can be conjoined only by means of an earth-body, because the mind by itself cannot do so, and an earthly body would not be able to endure

the presence of that mighty and immortal being, nor could so great a power submit to contact with a body defiled by passion. And so the mind takes to itself the soul for a wrap

In Hermetica, Isis to Horus, there is the statement:

. . . . For there are [in the world above, two gods] who are attendants of the Providence that governs all. One of them is Keeper of souls; the other is Conductor of souls. The Keeper is he that has in his charge the unembodied souls; the Conductor is he that sends down to earth the souls that are from time to time embodied, and assigns to them their several places. And both he that keeps watch over the souls, and he that sends them forth, act in accordance with God’s will.

There are many texts using the term “transformations” and a good commentary on the concept by R. T. Rundle Clark follows:

In order to reach the heights of the sky the soul had to undergo those transformations which the High God had gone through as he developed from a spirit in the Primeval Waters to his final position as Sun God . . .” — Myth-And-Symbol-In-Ancient-Egypt

This would appear to mean that in entering upon physical manifestation human souls follow the path of the divine and spiritual artificers of the universe.

There is reason to believe that the after-death adventures met with by the soul through the Duat or Underworld were also undergone by a neophyte during initiation. If the trial ends in success, the awakened human being thereafter speaks with the authority of direct experience. In the most ancient days of Egypt, such an initiate was called a “Son of the Sun” for he embodied the solar splendour. For the rest of mankind, the way is slower, progressing certainly, but more gradually, through many lives. The ultimate achievement is the same: to radiate the highest qualities of the spiritual element locked within the aspiring soul.


Banks and Infrastructure Finance Companies (IFCs) are the predominant sources of financing of power sector in India. Balance sheet size of many Indian banks and IFCs are small vis-à-vis many global banks. Credit exposure limits of banks and IFCs towards power sector exposure is close to being breached. Any future exposure seems to be severely constrained by balance sheet size, their incremental credit growth and lack of incentives to lend to power sector. The desirability and sustainability of sectoral exposure norms of the banks in the future may be examined in view of the massive exposure of the banks and projected fund requirements for the power sector.


Further, any downgrade in the credit rating of power sector borrowers would adversely impact the ability of the major NBFCs viz. PFC and REC to raise large quantum of funds at a competitive rate from domestic as well as international capital markets. In such a scenario, the sources of funds available for power sector projects are expected to be further constrained.

Tenor of Funds

The capital intensive nature of power projects requires raising debt for longer tenor (more than 15 years) which can be supported by life of the Power Project (around 25 years). However, there is wide disparity between the maturity profiles of assets and liabilities of banks exposing them to serious Asset Liability Maturity mismatch (ALM). Accordingly, the longest term of debt available from any bank or financial institution is for 15 years (door-to-door) which could create mismatch in cash flow of the Power project and may affect the debt servicing. Options like re-financing are explored to make funds available for the power project for a long tenor.

Though maturity profiles of funds from insurance sector and pension funds are more suited to long gestation power projects, only a minuscule portion is deployed in power sector. Appropriate fiscal incentives need to be explored to channelize savings. New debt instruments and sources of funds viz. Infrastructure Debt Fund, Clean Energy Funds etc. are identified for the purpose of infrastructure financing.

Cost of Funds

Cost of Rupee funding is high as compared to foreign currency funding. In a competitive bidding scenario, higher cost of borrowing could adversely affect the profitability and debt servicing of loan. External Commercial Borrowings (ECBs) for power projects is not well suited due to issues relating to tenor, hedging costs, exposure to foreign exchange risks etc. Project financing by multilateral agencies (World Bank, Asian Development Bank) has been low due to various issues.

While bond offerings are a lower cost option to raise funds vis-à-vis syndicated loans, corporate bond market for project financing is virtually absent in India. The credit rating of the power projects being set up under SPV structure is generally lower than investment criterion of bond investors and there is a need for credit enhancement products.

Specialized Debt Funds for Infrastructure Financing

Creation of specialized long-term debt funds to cater to the needs of the infrastructure sector; a regulatory and tax environment that is suitable for attracting investments is the key for channelizing long-term funds into infrastructure development.

RBI may look into the feasibility of not treating investments by banks in such close-ended debt funds as capital market exposure. IRDA may consider including investment in SEBI registered debt funds as approved investments for insurance companies.

Long tenor debt funds

Insurance Companies, Financial Institutions are encouraged/provided incentives to invest in longer dated securities to evolve an optimal debt structure to minimize the cost of debt servicing. This would ensure lowest tariff structure and maximum financial viability. Option of a moratorium for an initial 2 to 5 years may also reduce tariff structure during the initial years.

Viability Gap Fund

The power projects that are listed under in generation or transmission and distribution schemes in remote areas like North-eastern region, J&K etc and other difficult terrains need financial support in the form of a viability gap for the high initial cost of power which is difficult to be absorbed in the initial period of operation. A scheme may be implemented in the remote areas as a viability gap fund either in the form of subsidy or on the lines of hydro power development fund, a loan which finances the deferred component of the power tariff of the first five years and recovers its money during 11th to 15th year of the operation may be introduced. Any extra financing cost incurred on such viability gap financing should also be permitted as a pass through in the tariff by regulators.

Policy Measures for Take-out financing for ECB Lenders

RBI has stipulated guidelines for Take-out Financing through External Commercial Borrowings (ECB) Policy.

The guidelines stipulate that the corporate developing the infrastructure project including Power project should have a tripartite agreement with domestic banks and overseas recognized lenders for either a conditional or unconditional take-out of the loan within three years of the scheduled Commercial Operation Date (COD). The scheduled date of occurrence of the take-out should be clearly mentioned in the agreement. However, it is felt that the market conditions cannot exactly be anticipated at the time of signing of document and any adverse movement in ECB markets could nullify the interest rate benefit that could have accrued to the project. Hence, it is suggested that tripartite agreement be executed closure to project COD and instead of scheduled date of occurrence of the take-out event, a window of 6 or 12 months could be mentioned within which the take-out event should occur.

Further, the guidelines stipulate that the loan should have a minimum average maturity period of seven years. However, an ECB of average maturity period of seven years would entail a repayment profile involving door-to-door tenors of eight to ten years with back-ended repayments. An analysis of past ECB transactions indicates that ECB with such a repayment profile may not be available in the financial markets. Further, the costs involved in hedging foreign currency risks associated with such a repayment profile could be prohibitively high. Hence it is suggested that the minimum average maturity period stipulated should be aligned to maturity profiles of ECB above USD 20 million and up to USD 500 million i.e. minimum average maturity of five years as stipulated in RBI Master Circular No.9 /2011-12 dated July 01, 2011.

Combined Exposure Ceilings: RBI exposure norms applicable to IFCs allow separate exposure ceilings for lending and investment. Further, there is also a consolidated cap for both lending & investment taken together.

In project funding, the IFCs are mainly funding the debt portion and funding of equity is very nominal. Therefore, the consolidated ceiling as per RBI norms may be allowed as overall exposure limit with a sub-limit for investment instead of having separate sub-limits for lending and investment. This will leverage the utilization of unutilized exposures against investment. It is well justified since lending is less risky as compared to equity investment. This will provide additional lending exposure of 5% of owned funds in case of a single entity and 10% of owned funds in case of single group of companies, as per existing RBI norms.

UMPP: As each UMPP is likely to cost around Rs.20000 crore and would require around Rs.15000 crore as debt component considering D/E ratio of 75:25. Such a huge debt requirement could not be met with present RBI exposure norms of 25% of owned funds in case of single borrower and 40% in case of group of companies.

So, a special dispensation could be considered by commercial banks for UMPPs in respect of exposure limit as at the time of transferring UMPP all clearances are available, escrow account is opened in favour of developers and PPAs are signed. Considering the above, there is a need to allow relaxed exposure ceilings for funding to UMPPs.

Exposure linked to Capital Funds: RBI Exposure ceilings for IFCs are linked to ‘owned funds’ while RBI exposure norms as applicable to Banks & FIs allow exposure linkage with the total regulatory capital i.e. ‘capital funds’ (Tier I & Tier II capital). Exposure ceilings for IFCs may also be linked to capital funds on the lines of RBI norms applicable to Banks. It will enable to use the Tier II capitals like Reserves for bad and doubtful debt created under Income Tax Act, 1961, for exposures.

Provisioning for Government Guaranteed Loans: RBI norms provide for 100% provisioning of unsecured portion in case of loan becoming ‘doubtful’ asset. Sizeable loans of Government IFCs like PFC and REC are guaranteed by State Governments and not by charge on assets. On such loans, 100% provisioning in first year of becoming doubtful would be very harsh and can have serious implication on the credit rating of IFC. Therefore, for the purpose of provisioning, the loans with State/Central Government guarantee or with undertaking from State Government for deduction from Central Plan Allocation or Direct loan to Government Department may be treated as secured.

Loan-wise Provisioning: As per RBI norms, the provisioning for NPAs is required to be made borrower-wise and not loan-wise if there is more than one loan facility to one borrower. Since Government owned IFC’s exposure to a single State sector borrower is quite high, it would not be feasible to provide for NPA on the total loans of the borrowers in case of default in respect of one loan. Further, the State/Central sector borrowers in power sector are limited in numbers and have multi-location and multiple projects. Accordingly, default in any loan in respect of one of its project does not reflect on the repaying capacity of the State/Central sector borrowers. A single loan default may trigger huge provisioning for all other good loans of that borrower. This may distort the profitability position. Therefore, provisioning for NPAs in case of State/Central sector borrowers may be made loan-wise.

In case of consortium financing, if separate asset classification norms are followed by IFCs as compared to other consortium lenders which are generally banking institutions; the asset classification for the same project loan could differ amongst the consortium lenders leading to issues for further disbursement etc.

Capital Adequacy Ratio (CAR): Prudential Norms relating to requirement of capital adequacy are not applicable to Government owned IFCs. However, on the other side, it has been prescribed as an eligibility requirement for an Infrastructure Finance Company (IFC) being 15% (with minimum 10% of Tier I capital). Accordingly, Government owned IFCs are also required to maintain the prescribed CAR. Considering the better comfort available in case of Government owned IFCs, it is felt that RBI may consider stipulating relaxed CAR requirement for Government owned IFCs. It will help such Government owned IFCs in better leveraging.

Risk Weights for CAR: RBI prudential norms applicable to IFCs require 100% risk weight for lending to all types of borrowers. However, it is felt that risk weight should be linked to credit rating of the borrowers. On this premise, a 20% risk weight may be assigned for IFC’s lending to AAA rated companies.

Similarly, in case of loans secured by the Government guarantee and direct lending to Government, the IFCs may also assign risk weight in line with the norms applicable to banks. Accordingly, Central Government and State Government guaranteed claims of the IFC’s may attract ‘zero’ and 20% risk weight respectively. Further their direct loan/credit/overdraft exposure to the State Governments, claims on central government will attract ‘zero’ risk weight. It may be mentioned that RBI vide its letter dated 18.03.2010 advised PFC and REC that State Government guaranteed loans, which have not remained in default for more than 90 days, may be assigned a risk weight of 20%.

ECB: As per extant ECB Policy, the IFCs are permitted to avail of ECBs (including outstanding ECBs) up to 50% of their owned funds under the automatic route, subject to their compliance with prudential guidelines. This limit is subject to other aspects of ECB Policy including USD 500 million limit per company per financial year. These limits/ceilings are presently applicable to all IFCs whether in State/Central or Private Sector.


Government owned IFCs are mainly catering to the funding needs of a single sector, like in Power sector where the funding requirements for each of the power project is huge. These Government owned IFCs are already within the ambit of various supervisory regulations, statutory audit, CAG audit, etc. It, is, therefore, felt that the ceiling of USD 500 million may be increased to USD 1 billion per company per financial year for Government owned IFCs. Further, the ceiling for eligibility of ECB may also be increased to 100% of owned funds under automatic route for Government owned IFCs to enable them to raise timely funds at competitive rates from foreign markets. Thus, these measures will ensure Government owned NBFC-IFCs to raise timely funds at competitive rates thereby making low cost funds available for development of the infrastructure in India.