Thursday, August 31, 2006 

India - Hip, Hop and We'll Rock

It must atleast be 10-15 years back, when 40 bucks used to be colossal sum to me.It was the maximum shell out to be expected after a bunch of friends (atleast six) had samos, egg puffs, candy of choice and sugarcane juice for a birthday party in a local confectionary.Such occasions used to happen only once in a year for chld who comes out of a typical middle class family.

Now i sit in a porche Barista Expresso bar with my friends in a cozy corner tuning ourselves with the jazzy music and flashy videos plugged into the tv screen and order ourself a Caffe Mocha with whipped cream.I think it was around 60 bucks and gone are the days when i care about the bills which popped before me.I atleast possess triple credit cards with comfortable credit limits.I belong to the brand new genre of youth employed in the new economy sectors.The disparities between the old economy and the post-90 sectors are converging, for the lack of quality supply in them as well after most of us herded towards software and services.

You must be hailing our Manmohan Singh for liberating us to this levels of income levels by opening of our economy, his work is commendable, i am not here to deny it, he was a master when it came to removing the systemic problems in the economy, which were really stoppin our growth.Should i reveal the real hero for all this, of course you and me, who were breeded out this country for the past 25 years.Did you know that about 60-65% of our population is young (>25 & <40)>

You must have heard this teasor term called "BRIC report" by Golman Sachs for aeons now, they are predicting as to how the league of emerging countries Brasil, Russia, India and China would change the economic lanscape of the world in another 40 years.This is basically attributed to the population or to be precise the demographics, which is nothing but the Population or consumer statistics regarding socioeconomic factors such as age, income, sex, occupation, education, family size, and the like.

The UN predicts that By 2050, world population is projected to reach nine billion, a 38% jump from today's 6.5 billion, and more than five times the 1.6 billion people believed to have existed in 1900. The Demographers foresee declining, aged populations in many industrialized nations, and growing, younger populations in the developing world. If projections hold true, future global population growth will be heavily concentrated in Latin America, Africa and South Asia. There is no natural growth in Europe and the U.S.

Now,how is this going to help us grow?.Who contributes to the spending in an economy, its Sara's like me till we reach 45's.I earn and spend.Now imagine 500 million sara's spending and churning the economy, its a better vicious cycle for once, We'll grow and the gross income levels increase, we invest the excess money out of our savings.Oops!!, thanks to our Great Grandmaaa's and Grandpaa who could procreate 10-15 offsprings in their journey of life!!

Onething for sure, the new economy jobs are here to stay, the outsourcing is not going to stop as long as there is wage and population differential, there are'nt much people to do the jobs.The babyboomers of the U.S ( US is almost 25% of world economy) have already crossed their 45's and that means they are more of a liabilty in terms of the economy, they spend more than what they earn.It's the same story in all the developed countries

Leave alone the dependence on the world, if we can develop a economy to meet the needs of the 1 billion people, we can develop a robust economy.I have given enough of a rosy picture and convinced you that we are going to be happy.Nope,We can't sustain the growth untill we find enough resources in terms of energy, basic materials and technology.We need to bridge the gap between the have and have'nots, are we going to be enjoying everything at the expense of the lower strata.I am sure we can't live happily in the future without giving a socio-economic security to all of them, else we would find rebels sprouting out of the economic oppression.

Let the Youth Hip, Hop and Rock !!!.


 

Great One Liners

I just felt that i have tried thinking too much about too many things , I have post few one liners which i enjoyed
  • If your parents never had children, chances are you won't, either.
  • Join the army, see the world, meet interesting people, and kill them.
  • Until I was 13, I thought my name was 'Shut Up.'
  • Is man one of God's blunders or is God one of man's blunders?
  • I've never been drunk, but often I've been over served.
  • Marriage is one of the chief causes of divorce.
  • Work is fine if it doesn't take up too much of your time.
  • When everything's coming your way, you're in the wrong lane.
  • Everyone has a photographic memory; some people just don't have film.
  • Life is unsure; always eat your dessert first.
  • Smile -- it makes people wonder what you're up to.
  • The hardest part of skating is the ice.
  • The guy who invented the first wheel was an idiot; the guy who invented the other three, he was the genius.
  • The trouble with being punctual is that there's no one there to appreciate it.
  • If you tell a man there are 300 billion stars in the universe, he'll believe you. But if you tell him a park bench has just been painted, he has to touch it to be sure.
  • It's not the fall that kills you; it's the sudden stop at the end.
  • Never underestimate the power of very stupid people in large groups.
  • If you can't convince them, confuse them.

Can you people share some oneliners which you did enjoy in the past and post it my comments section...Just out of curiosity, to know what attracts different people, i would have been oblivious to them.

Monday, August 28, 2006 

?

There are a lot of things which i like in my current life: Melodies of Illayaraja, Language of the Eyes, Arrogance of Howard Roark, Logic of Immanuel Kant, Depression of Linkin park, Sensousness in a Smile, supposing Neutrality of Vivekananda, Conviction in Concepts, Tornado of Tears and it goes on and on, but the onething which never loses my charm is asking questions.

It's yummy to me, being rheoteric, questioning things in life.People say its a cycle and its very true with me.I was such silence personified in my younger years that i am compensating by being a jibber-jabberer now.

I would do any damn thing when took something by the face of it.I was such a dumb fellow ( my close chums would say that i am still one) that i had parted away my brand new cycle to stranger, when he told me that he wanted to collect some insurance documents for my dad which my father had requested.I was caught in a maze of supersitions.I would take bath only after i toggle the tap flow three times, I would only walk in steps of three multiples to reach a destination, i would always worship lord vinayaka and swap vibudhi at three places.I still laugh at those days when i tend to give advise people to avoid dumb assumptions.

I was caught up in the world of constraints, i was not willing to get out of orbit, i started to see the world only in my view and i could feel that it was becoming very rigid everyday.I had to delete something called a "balanced point of view" from my vocabulary.I never knew the other side of the argument.

I had immense pain by being foolish, thats when i started to question everything around me. I started to ask questions which were beyond my age.I started enjoying a lot of thinkers in the lines of Vivekandanda, Krishnamurthy, Richard Bach and Osho taking things which were relevant to me.I suddenly saw a sea change in me, my thoughts became boundarless to some extent, my emotions were unleased.I saw myself as an instrument to the experiences.

I started whying everything and when i felt that the solutions were absent or uncomphrendable in a paricular domain, i would seek new domains.I started spanning Science, Metaphysics, Art, History, Love and psychology.Nothing was futile at the time of my exploration.Everything had a common thread or a cross linkage somewhere.I understood one great thing, we need to understand an counterpointing view even before trying to completely understanding ours.I tend to persist give counter pointing view in an argument even if it was not mine to have a complete view.

Not that i have become enlightened by gulping these books or understanding my life.I still experience joy and pain, but i can atleast take them in the respective amplitudes and frequencies.

The Tao of questioning has some basic principles, you can't ask all the questions to everybody, in some cases nobody except yourself.There are questions for which we will find answers with time, some with maturity and others with complete ignorance.

Most of the questions acquire answers through a process of complete questioning till you reach the absolute assumptions or the apriori.Everything has a basic assumption and it is absolutely necessary to question the apriori itself before taking it.Like the way, the organism is the manifestation of the basic gene, so are you the projection of your fundamental assumptions in life.It's not only you that you are affected but the whole world around you which is influenced by it.

some of my favorite quotes from Illusions
"Argue for your limitations, and sure enough, they're yours."

"Learning is finding out what you already know.Doing is demonstrating that you know it.Teaching is reminding others that they know just as well as you. "

"Everything in this book may be wrong."
-Richard back at the end of his book Illusons

Sunday, August 27, 2006 

Prison of Memory

"Past is Past ,We should look ahead into the future",You have must heard the echoes of these kinda para-phrases humpty number of times in the past and you will find it rheoteric in the imminent future as well.

As a student of Artificial Intelligence unravelling the mysteries of the brain, I know onething for sure, we cannot annul the past.The brain activates itself based on the information which is impregnated in the neurons spanning our neural network.

The past experiences are stored in the "damn memory " with the aid of the incorrigible neurons.The input to this infallible process comes to the brain from the all saddistic senses.A whole network of guerillic neurons are activated by the electrical signals to recognise an event, person, object or feeling.

That is why when we come across a partial set of stimuli which we experienced in the past, we get to have the "pleasure" of reminiding the past to ourselves.

There are stimuli which are almost certainly not to happen in the rest of our life.May be, we could be salvaged from such deja-vu's in the future.There is also the other kind, those which created the most remarkable impact in your life.The distinguishing part is that, it might have been a part of everything which might have been unseperable from you.We could always get the plaudable aid of the imperishable artefacts, music, stereophonic names, blended events, dodgy calendar, polyphonic tunes and what not.

Even if we can manage to find some courage to annihilate them we cannot evacuate the damn data in the neurons.We can pretend the absence of the omnipotent stimuli around us.We are caught up in the prison of the past.It can be apparently denied but not defied.

Thursday, August 24, 2006 


Beyond the Limits
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Tuesday, August 22, 2006 

Could be, I could mind travel !!

As i left the last post i was as confused as the people who were confused, after reading my last article on time travel. I was left with total exhaustion trying to solve whether i can go to the past.

I thought, I’ll start with other example. Let us suppose that two people decide to compete a 3,000,000 km race. One decides to rotate the earth at a speed of 300 km/hr till he completes the distance, whereas the other decides to take a space travel for the same distance at almost 99.99% of the speed of light. Suppose the race starts at around Jan 1 rst, 12.00 am. It would approximately take 1 day and 8 hrs to complete the distance of 3,00,000 km for the normal person whereas it would apparently take only 1 s in the clock of the person who took the space travel. It would be hardly 12,0 clock and a second on the 1rst of Jan, in the clock of the person who took the space travel when the race completes. When the space travel ends and the guys comes back to earth it would be Jan 2nd ,2006 8.am whereas his clock would show Jan 1rst 12.0 am and 1 s.

Another twist to the story now the age of the person who has traveled in the earth is apparently 1 day and 8 hrs more, isn't it?.You must be wondering how at all this is possible.It does not match which what happens in this world where things move at normal pace. Neither can we discard relativity theory because it only could explain black holes.

I need to tell the basis of relativity theory, it is based on the apriori that speed of light is constant and various experiments have confirmed it. yet another example, suppose you are in a platform and watching a person running at 10 km/hr in a train which is itself traveling at 60 kmph.Now what is the speed of the person as it appears to a person who stands in the platform. Elementary physics would say that it 10+60 which is 70kmph to the observer.

Now, suppose the train is traveling at the speed of light and you want to measure the speed of light, which emanates from a torch in the hands of a person inside the train. What do you think is the speed of torchlight to an observer in the platform?

We would be tempted to say that it’s twice the speed of light. Isn’t it, amazingly its still the speed of light as too many experiments have confirmed this. This lead to the theory of relativity, which indicated that time is relative and not absolute. Constancy of speed of light irrespective of the system in which is observed has a daring conclusion, light cannot seem to travel faster than the speed of light.

I was thinking of the speed of things around me; Winds-200kmph;Sound-330 km/s;Hypersonic planes-8 Mach; Light as we know is 3,00,000 km/s.May be, it is the constraint of the physical existence. Suddenly, it struck me what if i travel with something, which is intangible but can still can travel with it. What about traveling beyond the speed of light with my thought. It has happened to me, when a thought comes into me about somebody they call me immediately. Did my thought travel to them to inform that i am thinking of them or was it my hallucination ?.

Could be, this is what Nostradamus did , time travel with his thought!. Could this be a way out to travel in the past and future without belonging to any time?.

Monday, August 21, 2006 

Timing my travel to the past !!

I was earlier reading this article on time travel in Rampi's blog and started to think, as to how great it would be, if I could travel back into the time warp and change the things which changed my life. May be, I need to first tell, how at all time travel is possible theoretically.

Now, how do we perceive this world? This world which we interpret is set of events which may or may not be related to each other. We conceive this physical world as being three dimensional. Dimensions by itself do not make sense to us. We need time to make sense an event. Only when we try to relate space and time, we can give meaning to what we perceive. Let me give an example, imagine yourself watching a cube which is 3-D.The cube by itself not make sense to us. We need time as a metric to interpret an event, even if the ball is stationary. Now a stationary ball can be interpreted as an object in the same space (3D Co-ordinate) after the time co-ordinate has changed.

All this is fine when things happen at our normal pace. We can predict the world's motion using the three laws of motion propounded by Newton. Now there was a genius who had the arrogance to ask, how would the things behave if they travel at the speed of light? One thing for sure the Newtonian laws could not explain them. That is when Einstein came up with theory of relativity which fair explained them. Do you remember the formula E=M*C^2.May be I’ll deal with quantum physics in another article. I’ll go ahead with some formulae’s which are of interest to the time travel.


Length : L=Lo*sqrt(1-v^2/c^2)

Time : T=To/sqrt(1-v^2/c^2)

Mass : m=mo/sqrt(1-v^2/c^2)

In the above equation L indicates length (dimensions), T indicates time and m indicates mass. The parameters with a suffix “o” mean the value of the parameter at speed zero or normal mass. ”v” indicates the current speed and “c” indicates the speed of light which is around 3, 00,000 km/s

Now see what happens if we travel at the speed of light, Length becomes zero; Time becomes infinite and mass becomes infinite. Now what if we can travel faster than light the L&T is an irrational number and mass is negative. Now you must be asking as to what we interpret from this zero and infinity. I’ll go step by step using a crude example.

Consider two people who are observing an event of a car traveling from place A to B which is ‘m’ kilometer apart at the speed of ‘s’ kmph. One is the normal observer and the other person is one who travels at the half the speed of light.

Now for a normal person has no problem with the metrics m & s, he measures them in the same way as we do. Now what do you think would be for a person who is traveling at almost half the speed of light, suddenly it seems like he has had more time. Now it appears to him that is this clock is slower. This is precisely called Time dilation

Now what if we are traveling at the speed the speed of light, time becomes infinite and we have all the time in the world whereas the normal person has a definite time. What would I do if I had more time? How about time traveling, there is a possibility that I can go to my past and change events which are slated to happen? Mind boggling isn’t it?

Now we are caught up with an interesting paradox what would happen if we can time travel and kill our great grandfather before he meets our grandmother? This is famously called the grandfather paradox. There is something called Twins paradox which you can search happily and find out!!!

Now the infinite dollar question, can we travel at the speed of light?

Thursday, August 17, 2006 

Intellectual Orgasm!!!

The familiar teasing topic in a college or any co-education institution is, as to how two people talk and talk and keep talking, which people term "kadalai" (meaning ground nuts) in Chennai parlance. The time changes, lanes change, subject changes, chair changes, latitudes change and even the sun changes position. Everything in the background and foreground changes, but there in no stopping to them.

Now many questions arise to the observers;

  • Where do these people get such endless topics to talk?
  • How do people get immune to the external system?
  • Most important of all, what do this people eat and drink to have such abnormal energy levels?


Not only here, I have observed it in myriad things.

There is a friend of mine who eats, drinks and sleeps with books. He is so obsessed with books that he does not even need a female companion to meet his "kadalai" needs. I asked him as to how he can do this endlessly.He had a astounding reply "Nothing like the intellectual stimuli when you try to understand or have undergone the process of understanding something".Thats when I coined this word "Intellectual Orgasm" .I named it so because its more of the brain which does the understanding although it all begins with the senses.Thats why I always claimed that the brain is the sexiest organ in a human!!

May be that is what people frying kadalai experience, they endless seek to understand the various dimensions of the other person. Now I can empathize with Archimedes who jumped naked out of his bath tube when he understood buoyancy. Could be, that is why, there is so much relish when we hear or hum a song which sinks with us, a theist wants to be filled with god. When we understand something completely, it takes us to the peak of joy, the distinction between the observer and observed ceases to exist.

One thing, it captivates to be an observer, the observed and neither of them as long as we seek to understand them.

Tuesday, August 15, 2006 

Be a Rebel..Rebel..Rebel

If at all we can learn something from history, we can assimilate that a rebel sprouts in the society at every point in the timeline; there is somebody who wants to fight against the existing norms which may be good or bad for most in the society.

Gandhi was a rebel who raised his remonstration with a tool called Ahimsha against the white men. Karl Marx was a rebellion who wanted equality with communism when the whole world was humming capitalism.Manmohan Singh was a rebel who hugged liberalization when protectionist attitude was mood.Martin Luther was a rebel to have given a new face to the protestant movement when Roman Catholics were already one-third of the globe.

The rebel instinct is out there in every group, it's naturally bound to happen in a group. Every group has a primary focus/common norm which all the members are willing to accept. Every person in the group has something common with group but has his own distinctive whims and fancies which may differ with others in the group.

Now when the group becomes larger, there are more views and what is the way out to keep the group intact? A strict norm is followed to keep the primary focus of the group undiluted. There is always a faction who feels intruded by this strict norm and what is the next logical step? To be a rebel and nurture a group which suits them.

The other reason why you can find a rebel could be of the reason that the norm followed by the group does not meet primary focus after they have been part of the system for along time. As usual we have another group which rebel the existing group.

Yet another phenomenon why people rebel the popular movement in a society is based on the premise that when something is followed or comphrended by a majority, it's either outdated or too weak in principles.

Now the million dollar question ,when are you going to rebel the exiting system. It's better to be pioneer. Are you ready to rebel?

Sunday, August 13, 2006 

Bored of Boredom


Suttrum Vizhi Suddare,
(Revolving light of eyes)
Suttrum Vizhi Suddarae,
(Revolving light of eyes)
Enn Idayam Unnai Suttruthae!!"
(My heart revolves around you)

This popular tune from the movie "Ghazini" which caught the murmurs of too many people last year was a serious loveburster to the listeners. The score was enchanting, voice-mellifluous, the choreography-elegant; a complete awesome combo inspiring love.

All the Tamil music channels had this number played humpty number of times and you could bet a billion dollar on the probability of finding it in a contemporary jukebox. I am not getting into a romantic groove now, even though I want to.

It must have been atleast three weeks when I was flipping the channels in our antiquated Solidaire TV. Sun Music played "Suttrum Vizhi..” I tuned to "K TV" they played it," I changed to SS Music , they played it, I even tried DD, they played it.. I could never imagine the conditional possibility of such a cascaded event. Its not that I didn't like the song, I still love it, but I could not take the over exposure.

Now days, I have even started an anti-campaign again this song, I just got to understand how I have built a wall around myself to a stimuli which used to inspire me. It happened out of sheer monotony, I have started abstaining myself from an erstwhile positive stimuli.

Its not only this; I find this phenomenon with many things. I enjoyed my current project for the first six months and I am now struck with authentic boredom, as I am left with very little marginal learning.

When we are struck with boredom, it may mean two things, one may be that, the existing stimuli does not give a new experience to us or the stimuli gives an experience which isn't desirable. This may be because we have been exposed to an alternative stimulus which is more exciting than the current one or the current stimuli cannot be allowed to persist of various reasons.

Now, what is the way out? May be we can try different means to achieve the same purpose which may rejenuate some interest.The other way out could be to comfortably move towards a different end. I even tried this, I was literally bored traveling to my office by auto via the same route. I suddenly broke it by walking one day, I tried the bus next day, I walked and caught a bus another day, I started playing with departure/arrival times. Even that uncertainty caused monotony and i am now trying the erstwhile method.

I only understood one thing
"Its cycle and new experiences which entertain life"

Thursday, August 10, 2006 

Being a Bunny!!

Certain things amaze me as to how puppet shows happen in reality. What we see as an action performed by somebody, is not what they might have intended to do, the actor is merely enacting the script which was thrust on him. What we see is the puppet show, but behind it, there is somebody playing the chords at their will.

The puppet might have consciously consented to it or was unconsciously exploited by the puppeteer. Look at the famous Lallo-Rabri show in Bihar, everybody knew who ran the govt when Laloo was foddering with his fellow species yet he was left scot free. We have seen many scandals where somebody ignorant becomes a scapegoat to protect an invisible hand. How often have we witnessed the allegation by a mother in law accusing the daughter in law of maneuvering his son?

Leave them alone, don't we do it in our life, we do something which is not our wish but for the sake of somebody else. It left me thinking as to how men of prudence will be somebody's bunny. Won’t they at some point in time realize that they are not themselves but merely a shadow of some unknown?

There are several reasons why someone concedes to be a bunny very consciously, it could be either because of our inability to overcome the supremacy and weakness inherent in the relationship.I could only recollect one thing about bargaining, It is not about who can argue with supreme logic to find success, its more about who loses one's temperament to persist their stand. We give away many things and concede to be puppet mostly when we succumb to our emotions.

The other thing is being unaware of it, this happens because we are trapped in it by our unconditional bondage to the invisible hand. In these cases there is no rationality or the actor is trained to be irrational.

All of us are bunny's one or another. For somebody its fame for somebody else its sex and it can include any of these: ethics, morality, beliefs, intellect and what not..

I am proud to be a bunny!!!!

Monday, August 07, 2006 

Women: the better gene ??

There were occasions in life when we boys ("then")used to discuss how girls are not as intellectual as men.Everytime we get to scrutinise the results of IIT-JEE, IIM admissions or the entrance examinations which need a little intellectual stimuli, the male faction seem to perform better.If we could look out at the top CEO's in the corporate sector they are mostly men and women are catching up with atmost aggression.The Noble laureates are predominatly men and i can go another para..

May be that was how the society was moulded, it was mostly a patriarchal society where the men did the earning stuff for the family and women would take care of the family.Even If we are willing to go a strata below, to understand the basic chemistry of both the sexes, we can observe that men are in dire need of appreciation, admiration, trust, acceptance, approval and encouragement whereas women need caring, understanding, respect, devotion, validation and reassurance.

That explains why men are task or goal oriented and women believe in the process!!.Men tend to be logical whereas women are more of the intuitive sect.Women know how to handle stress throughout their life and Men are only know how to blurt out!!!. Men are more of the thinking part and Women are the feeling part.

Aren't both sexes a perfect oxymoron ?.One does not posses what the other have in excess.That's why people fall in love or get marrried to each other!!.What does a Man expect from a Women apart from sex?. He needs trust and admiration .What does a Women want ?,she needs enduring care and understanding.

Women used to seek a sense of security from men because they were managing the family part and they needed a sense of financial/resource stabilty from the male partner.They tended to be physically weak and needed a support from the male partner to protect them.Women are now equally financially stable and have pistols & martial arts to guard them.

Now the real important question "Do women really need Men?".I am excited about this question because men can no more dominate women in the name of money women.women will stick to a man only if he is really a worthwhile partner and the vice-versa.

A little bit of human aspect now, the outward projection of the humans is the behavior part which is basically manoeuvred by one's emotions.Emotions are stimulated by the intellectual process giving perceptions leading to emotions.Now men are great thinkers and are apprentices when it comes to controling emotions.Women are adolescent when it comes to brain tweaking but are great masters of emotions.They can leverage their intellect by streamling their emotions.

Thats why i keep wondering why women are a better gene in the current context!!!

Its a cycle isn't it?, Its time for women to rule us !!!.When i meant men, i didn't always mean men and when i talked about women i didn't always mean women.I am talking about the masculine and feminine part in each of us.It is all about which is predominant in one's expression.May be thats why Shiva(Inertia) is incomplete without Shakthi(energy).There is something called Para-Shakthi who is supreme to everybody and thats why i laugh at men!!!!

Are you masculine or feminine?

Thursday, August 03, 2006 

Deep South is where $ belongs?

We have this popular concept in our mimes, the dollar would depreciate from the current levels of 50 Rs/$ to 1 Rs/$.I thought, may be i'll give a shot at this for a change in one of my favorite areas Economics!!.As usual funda's first.

A country interacts with its outside world by offering its products,services and capital and in turn enjoys them as well.Now if a country gets more products/services than what it can offer it ends in a trade deficit.We need to understand that products/services and capital are mostly counter flows.There is a outflow of capital when we get products/serices and vice-versa.The Balance of Payments(BOP) which is (capital account + trade account) is always zero, i.e the trade deficit is always funded by the capital Inflow (surplus) and vice-versa.

A country's government also interacts with its stakeholders like Households and Coporates.It has its own revenues(the taxing stuff) and the expenses (for the sweat of our government employees).If there is more expense than the revenue we end up in what is called the revenue deficit.Doesn't our goverment also do a hell a amount of capital expenditure towards infrastructure and the social sector now a days?.Yea, If we combine these two, we end up in something called fiscal deficit.Managing the fiscal part is what our finance is what our finance Minister does in the budget.

Now that we have so of much deficit, how do we fund it ?.There are two means of doing it, either do it through internal funding by allowing the RBI(the central bank) to print money or through external funding by borrowing from the global community,IMF and various organisations.Can we print money just like that?.There is a formality involved in it, the goverment issues soverign bonds promising to repay(Haaa haaaa) it back to the central bank.

The obvious question why don't we print money and make everybody rich in the country.There is the hitch, if artifical money is floated in the country, there would be more money chasing fewer goods/services and end up in artifical increase of prices (Law of demand, Is'nt it ?).What do we now do to prevent the prices going north and protect the poor.It's quite simple, hike the interest rate (the cost of money used to get goods/services).If the cost increases the, capital spending reduces and prices are now kept at an affordable level by reducing the demand.This is called monetary policy, this is what the central bank governor does !!!

Now if you got this in your mind, you are all set to understand why dollar would move south soon or later.

The United States has swung from being the world's largest creditor to the largest debtor nation(i.e its funding its operations by borrwing). At the end of 2004, it had net external liabilities of $2.5 trillion, or 22 percent of its GDP (around $10.2 trillion). The current account (goods and services, transfers, and capital income) is massively in deficit about $670 billion in 2004, or about 6 percent of GDP. If corrective measures (US fiscal adjustment and a further decline of the dollar) are not taken, the current account deficit will reach about 7½ to 8 percent of GDP by 2010, and net international liabilities will reach about 50 percent of GDP.

Now what should the US do to reduce its debt? Failing which it would become bankrupt,as it would be unable to pay it liabilties to the foreign countries.Just a clarification as to how US goverment is liable, most of the countries with trade surplus with the US like China (around $200 billion in 2005, approx 30 % of the total US deficit) invest their money in the US government bonds which need to be repayed one day when they want it back.

Do you want to know the easiest way out ?.Devalue the currency.To be short with an example, If we got to give back the $100 which was borrowed at an exchange rate of 50 Rs/$.Return it back when the it is 10 Rs/$.Now in term of Rupees, the liabilty has decreased from 5000Rs to 1000Rs which is awesome gain isn't it for the US.

Then Why doesn't the US wipe of the deficts by devaluing it now rather when it would be worse some years later?.There are two vital aspects involved in it

No American would accept to this for the simple reason that his standards of living would go down.An American who was earning about Rs 50,000/- in Indian terms ($1000 at an exchange rate of 50 Rs/$) ) would earn only Rs 10,000 ($1000 at an exchange rate of Rs 10/S).His earnings power has decreased he can lead a better by importing chaeap goods from China and India.

Dollar is still the reserve currency(more than two-thirds) of the world, Most of the corporates and country have their wealth in the form of dollar.What do you think would happen if dollar depreciates?.Their wealth is decrease phenomenally as the value of their financial assests would see abnormal loses.who would want this?.That's why they keep dollar at this artifical levels even when US is running record levels of trade and fiscal deficit and there are no signs of it fading away.

Onething is for sure, the rising imbalance will increasingly put the US economy and hence the world economy and especially developing countries at risk of a major crisis, as foreign investors lose confidence and US protectionist pressures mount. The longer the needed adjustment is delayed, the more wrenching it will be, triggering high interest rates, US recession, a greater decline in US households' living standards, and more damage to the global economy

The problem recently has been that both private wealth-holders and foreign governments have begun to fear that the unsustainable value of the dollar spells a decline in the currency that could sharply erode the value of their assets.

The only way out for the US deficit is by taking measures to control the fiscal and trade deficits, gradually devaluing its currency.The global money minters are already looking for other reserve currency options like the Euro.

1 Rs/USD, is it a myth ? Keep Thinking !!!

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