Sunday, 16 June 2013

Current account deficit and Gandhiji


Gandhiji organised boycot of foreign clothes during the struggle against the Britishers.  India was one of the hubs of trade in the East till the British had arrived.  They gradually destroyed the local crafts (even chopping off the hands of artisans and craftsmen so that they cant work anymore) and shipped the raw materials back to England.  These raw materials after processing into finished goods used to be dumped in India.

In effect, they looted India of the raw materials and thereafter sold the finished products back to the Indians at low prices.  This way they could keep their industries back home running optimally and earn a lot of money.  To top it all, part of the money earned was used to buy bigger guns and larger armed forces that were used to oppress us Indians only.

Being an astute politician and freedom fighter, Gandhiji may have realised this and asked for total boycott of foreign goods.  A poster on the same is reproduced below:-

How is this relevant to current account deficit (CAD)?

This is what we need to look at.  Gandhiji advised boycott of all foreign goods which were largely clothes at that time so that domestic produced items can sustain despite being at higher price.  In the present day, if we examine any electronic or house hold appliances/decor, we can find that there is a deluge of products from South East Asia particularly China. If we take the same analogy of Britishers, this deluge is leading to the following:-

(a)  Wiping out the complete domestic electronics market
(b) Wiping out the complete domestic furniture market.  Hardly anybody goes to a carpenter these days.
(c)  Create a huge trade deficit with China/SEA countries
(d) Ensure sustenance of  foreign companies abroad by virtue of huge sales in our country, thereby furthering their prosperity
(e)  Place a severe demand for dollars to pay for exports

One might say that the same is true of Gold which is also correct.  Unfortunately we are now focussing only on Gold, probably because the other items have some utility unlike Gold which has pure ornamental value.  Still, Gold is a lesser evil in the long run. Consider this example:-

in 2013, Mr. A purchases 10 gms of gold for Rs 30,000/- and Mr. B purchases an LED tv for Rs 30,000/-.

The 30,000 for Gold, say is paid to Switzerland and the 30,000/- for the TV, say is paid to Korea. In the year 2013, both have the same impact on the current account deficit.

After five years in 2018, the LED TV would have depreciated to about 5,000 but the Gold would have appreciated to about 50,000/-. Effectively, the wealth of the individual had actually grown in purchase of gold as against the LED TV.  This is very useful when we calculate the per capita debt of the country i.e total debt of the country/population.  

It is evident from the above that despite having the same effect on CAD in 2013, their effect on the individual's and the nation's wealth is completely different five years on.

We can therefore deduce that it is equally (if not more) important to curb the imports of electronics, home appliances and decor as much as the restraints on Gold.   

In addition, that cheap mobile/appliance/decor is cheap only at the point of sale.  Once it adds to the CAD, the government has to pay for it somehow and the only way the government can pay for anything is by extracting it from the general public by way of taxes, cess etc.  So, you really aren't getting anything cheap but just filling up the pockets of MNC's.

I hope this issue generates positive and healthy discussions.

Friday, 14 June 2013

A Star is wasted - Jiah Khan

She had a lot going for her - a sensual face, terrific figure and a smouldering smile - quite an irresistible combination.  She had a grand entry opposite amitabh and had a few good films later on too.  Having acted in a few films in bollywood, she should have realised the fickleness in the bollywood relations and how people move on to newer ones.

When we seriously think of it - let alone in bollywood - most of us would have had an affair or two before getting married - and most of us would have have let go our affairs and moved on to our family lives. if every guy or gal starts committing suicide due to a failed love affair, then there will be a dearth of people on earth.

Suicide for love is simply unacceptable because - how can you leave your parents, siblings, friends n family and pass away to another world just because one guy whom you would have hardly known for 2-3 years doesn't treat you well.  What about all the other wonderful people who look you up with love and care. aren't you being unfair to them? 

You gotta love life more than your love life.

and that guy suraj i think is unnecessarily being harassed.  we hear of so many breakups be it in bollywood akshay-raveena, ranbir-deepika, ranvir-anushka, etc or in the lives of people who are in our city, locality or our mohalla. These are happening everyday. One has to be strong to withstand the pain and look towards more understanding and fulfilling relationships.

The charges of rape are hard to believe coz i doubt if there was ever a reason to rape her as she herself may have willingly given herself being in love.  All the more reason to disbelieve it coz the young lady (may her soul rest in peace) isn't present to state eitherway. and like the police said - the authenticity of the letter is being established. we will know for sure when that is done if ziah really wrote all that.

Still, suicide is not the way to go and holding suraj responsible also may not be a good idea as that might send a wrong message to the young ladies of India.  Parents must be vigilant about their children and adequately  counsel/advise them whenever they find any warning signs, to avoid such unnecessary loss of life.

Hope that we do not get to read anymore such news at least in the near future.

Let us pray that she rests in peace in the other world.

Saturday, 1 June 2013

Portable toilets in school

Portable toilets

 'Give me a toilet in school' was what one little girl wished for,  when asked by a visiting dignitary as to what she wants.  As we look around ourselves we find that there is really a dearth of places where girls/women can relieve themselves.  As women are also not comfortable to talk about this, the issue never comes to the fore (except for one article I read which was wriiten by Ms Shobha De - 'the right to pee' in a national daily).  There are many who are sensitive to this issue and who have thought of various means to mitigate this uncalled hardship.  There is however one young lady who decided not to procrastinate and went ahead and desined her own portable toilet. 

The young lady as i read in the News is,  Ms Promita Sen and she designed a portable toilet which can be setup in 5 minutes time and weighs about 16 kgs.  It is understood that these toilets have already been setup in many schools in Assam, West Bengal and Bihar. In addition as they are portable they could be easily be carried atop a vehicle for use in inhospitable areas. Alongwith her innovation the lady also has an enterpreneural streak which made her patent her design and produce it herself. I hope that her sucess with this innovation would propel to innovate further and bring out more ergonomic devices.

it is also reported that the installation of these toilets saw an immediate rise in the girl children attending schools in these areas.

Kudos and way to go Lady!!!

Women's safety and Flying Camera phones!!!

 A Wonderful post copied from Digital Messiah   Have you heard of Flying camera Phones?   Chances are that many of you did not! Smart phone ...