The Inflation Fuss...

I see people talking about Inflation all day & i wonder why there is so much of fuss about it. Too much of inflation may not be good but it's always better than deflation. Isn't it? Imagine you bought a piece of land for Rs.50 Million & the market value comes down to Rs. 40 Milion next year. that is delfation. Nobody talks about how much did they earn with rise in land prices, but costlier petrol takes their breath away.

Why is the government so concerned about rising prices? Yes, An individual may be worried about it because the government is spoiling every industry by keeping Rupee strong against USD & Prices are on an uptrend. But how much does that matter? How much will it matter if the Gas Cylinder price goes up to Rs.350/- from Rs.300/-. I think it doesn't change anyone's budget by more than .01%. Don't you get an increment every year in your salary? Every employee, either in private or public sector company, earns in black in addition to his regular income.

Those who spend Rs.50/- on PEPSI in a hotel shouldn't even talk about rising prices & inflation. Anyone who gives inflation more than required hype or importance is yet to learn what it is all about & he is yet know that its not inflation... it's called "POLITICS"

What causes prices to rise? An addition in money supply in National money market will rise prices to go up. So with a lot of investment taking place in india from abroad money supply is bound to rise.To control that Govt tightens the money supply by bringing in various FOREX, monetary & fiscal policies. for example the govt may raise CRR (I took this example because the layman will easily understand this, you know everyone watches CNBC now a days irrespective of their level of understanding). Otherwise the govt may issue short or mid term bonds with RBI to stop inflow of funds in market. Anyways, With rise in CRR cost of funds for Banks will go up & they will normally increase Loan interest rates at a rate more than the increase in cost of funds. Well however i believe this impact will directly not have a large impact on the prices of consumer goods.

Think, what makes India such an interesting venue for investment? A week Rupee against foreign currencies. WHy? One dollar of investment by an american gives them an investment of Rs.45 in india. They can do much more with Rs.45 in india than what they can do with 1$. So the govt will try to strengthen rupee & bring it up to Rs.40/- or even Rs.38/- to limit the inflow of funds.

When the Rupee going up to Rs.38/- & Chinese/Bangladesh's money pegged to $ at much weeker rate, this certainly is going to hamper Indian exports. I could make a luxury pen for Rs. 40/- & i was exporting it for (1$ for buyer) Rs.45/-. But Now my has gone up to Rs.40.50 (INcrease in labour & Material cost) but buyer is willing to buy it for 1$ which will yield only Rs.38. That gives me a net loss of Rs.2.50/- per piece. Rise in cost inputs wouldn't have mattered much for me if the $ had stayed at Rs. 45 or a more favorable rate, but now its killing me.

But it's ok, i am a good company & i can plan to launch my pen in Indian domestic market. So i am going to sell the pen in indian market for Rs.45/- (Mind it, I am not going to get any duty drawback on this). My expenses will certainly go up since i will need to hire a marketing team but anyhow i can manage to forget it. But hey what is this?? Chinese people are selling their pen in india for Rs.38/-. How? They were earlier offering their pen for 1$ (Lets not get into the Yuan exchange rate as that will make example comlicated) which meant Rs.45 for indian importer, But now Indian importer will only need to pay Rs.40/- to make 1$. So that means MORE IMPORTS & LESS EXPORT business. It will hit the domestic industry & industry will find it difficult to survive.

Domesitc industry could be taken to new heights if the $ was equal to Rs.55/- or more. Imagine the profits, industry will multiply & so will the employment opportunities, Income, Tax collections & standard of living of the common man. Government could keep FOREX policies more organised to stop inflow of temporary funds which can hamper long term growth prospects of country. Organised doesn't mean tight here. Foreign investment shall be welcome to speed up the growth prospects of country but policies could be framed to stop sudden outflow of funds to save country from a crisis similar to SOUTH ASIAN CRISIS.

Inflow of funds, industrial growth will certainly mean rise in inflation which may go up to 10-14% but whats the problem if income goes up by a higher level. Those who talk about rising inflation today simply forget the fact that change in Income Tax slabs make them pay lesser tax than before & if they will compare savings with increase in expenses they will find themselves very comfortable.

Yes, those who are very poor & are just hand to mouth. Well they are not much affected by rise in petrol/diesel or Gas cylinder price & there income too has gone up significantly. For example daily wage of basic labour has gone up to 150-200 Rs. I was paying Rs.1800 pm + overtime to basic labour a year back & within one year it has gone upto 2600+overtime. I am sure inflation is less than that. People just dont accept the fact that increase in their salaries & incomes add to the cost of product & causes a rise in price, thus inflation.

So stop worrying about inflation if you got a 5-10% rise in your salary in last one year & in case you haven't got the rise... change your job. Get a hike & push inflation further....

;-)

Your country is growing. Govt is hurting industry by making extra ordinary effort to keep inflation under control.INFLATION IS NOT SO BAD & ITS BETTER THAN DEFLATION. दाग अच्छे हैं

In nutshell, SHUT UP & GET BACK TO WORK.

Slow India

I was just wondering one fine day why are we so slow in everything. It takes me almost more than half an hour to reach my office & the distance is merely 12km. I wouldn't mind to travel even an hour if my office was 60km far from my place but half hour for 12km is too much. It gets me irritated when my foot touches break more than accelerator. I know there are some who would say "half hour for 12km is very fast. It takes us 1 hour atleast." But then your being even slower doesn't make me fast. It just shows you are slower than me.

I live in Ludhiana (Punjab). The city is changing its face at a speed now. It's getting commercialized... Malls, Malls & Malls everywhere with no parking spaces. No parking boards everywhere & few cars parked under those boards. Punjab govt started making a road bridge some 6-8 years back which was supposed to connect some 5-6 major areas of the city. Everybody thought this would change the entire road infrastructure of the city & government was doing just fine to solve the upcoming traffic problems. The project faced more than few problems & finally the bridge was ready in some 6-8 years after many work halts. Everybody just wanted to ride their car on the bridge but what the hell.....

The Road bridge takes off from some places in the city but is nowhere joining the bridge. The bridge just couldn't be executed as planned due to some planning mistakes. This is just the first hand Punjabi experience & you are yet to see more. The bridge which was finally made doesn't divert even 2% of traffic. Bridge roads are as empty as water taps in drought area. The bridge passes through a very narrow area the road is almost touching many houses & their windows. Side walls are too small to be called safe & I have myself seen a bike slipping & biker falling down from bridge. Another major work that was undertaken gets into great words of appreciation. One needs to take a U turn & go on wrong side to get to the FOCAL POINT Road bridge. The great execution of this projects are golden words for congress government that was recently kicked out in assembly election. To fullfil their remaining dreams, Akali govt has decided to start METRO RAIL Project. Oh God, save us.

What makes me even happier is that everyday when i go to office or come back home, i see one car, truck standing just in the middle of the road & hindering the entire traffic. I wnoder why their cars always stop just in the middle of the road. Why can't they just park it on road side, even if there is some problem.

Many traffic lights in our city turn red to indicate they are working. They never signal green due to fused bulbs. there is so much of infrastructure problem that sometimes it seems to me as if the government is trying to slow down each & every person. As if the govt is stopping us by working against the common man

What is Time Machine ?

Well, A lot of us have heard about Time Machines. We have seen the concept repeatedly in hollywood movies also. But hardly anyone of us would have ever tried to understand What a Time Machine actually is or can be. Mostly we are shown in movies that a person from future goes back in time to change things that should not have happened or something similar. But i seriously doubt if Time Machine could actually make it happen.

I think Time Machine can only make you see what has happened in past but i really doubt the possibilities of changing past. Now you must be thinking what a shit i am talking about. Rite... Open your mind & think with me, what a Time Machine actually means.

How do we measure time ? We measure it with Sun & Sunlight. Light doesn't always end, it gets reflected at times & it just passes your vision ability at times. Your ability to see depends upon light. To simplify the concept i will present it with a very simple example.

Light takes approximately 8 minutes to reach earth from sun. So if a blast takes place on Sun, we on earth will get to see it 8 minutes later. That means something that happens on sun will be seen on earth when Light carrying images of that blast reaches earth 8 minutes later. If you find it difficult to understand, please read last 2 lines at least twice again.

Continuing with same example lets think further...

A blast takes place on Sun & We see it 8 minutes later on earth. Just when we get to see it, We move to Pluto at a speed higher than speed of light. We reach pluto & we get to see the same blast once again there. Same way, if we keep running at speed more than that of light, than we can at any time stop & manage to see the blast again. Also note if you run at light speed, that image will become still for you & you will only be able to see one image of the blast since next image will reach you only when you slow down. That also means that if I start running from my house to a particular place faster than light & stop after sometime, then i will see myself running towards me, simply because ability to see depends upon light & i have simply crossed the light & my images are just behind me.

Going with the same concept if we run at speed of light for 10 years starting in 2010 & we stop in year 2020, then we will be able to see in year 2020, the happenings of January 2011. & the concept is very clear in itself that we just cannot manage the happening of the event. We can only see it & the event has already taken place.

Same way, we could run at 5 times the speed of light & 10 years later we will manage to see what happened 40 years back. So now with a Time Machine you can see what actually hitler, gandhi, bhagat singh or even King Asoka did. But i dont think you can change it since the event has already taken place.

Before i end with time machine concept, i will add one more thing that could take place while using time machine. When you run/move at the speed of light or even faster than that, below given things may happen

• You may grow older at normal pace
• you may grow older at a faster pace
• you may not grow older at all. Your age may become stable
• You may put your life in reverse gear. Possibility is, when you will get out of time machine 10 years later... you will be younger by 10 or lesser years

Time machine is a fantasy, that has scientific possibilities.