Friday, February 14, 2014
Motivation..... Keeps you in the Game
You don't Have to be perfect to do it. If you are waiting for the perfect time its not going to come.
You have to create the perfect timing
Thursday, February 13, 2014
FDI in e-retail needs more thought
Apropos of the column ‘Indian e-tailers need FDI’ (FE, January 22), India is the third largest base of internet users(137 mn) in the world after China & USA. No wonder, why foreign companies want to invest in it. However, this offer comes with a caveat. Only 18% of the users are online buyers’ vis-à-vis , 50% & 64% in China & USA. FDI can help Indian e-tailers increase this percentage, given that we have the right entry routes and caps. It can also help in improving the quality of service provided by our e-commerce websites especially, travel booking websites like IRCTC as 71% of internet transactions are related to travel. But, one must ask this question that, are Indian e-tailers allowed selling their products abroad? Perhaps, it can be an interesting food for thought for our policy makers.
Tuesday, March 6, 2012
you too jee.. (2G)
The 2G scam.
ü The 2g spectrum losses amounted to be Rs 1.76 lakh crores as calculated by the CAG vinod rai based on 3G and BWA spectrum allocation.
ü The telecom minister A Raja favored some companies and virtually gifted the licenses which was an important national asset and caused a huge loss to the exchequer.
ü India has 22 telecom zones with 281 zonal licenses in the market. In 2008 122 2G licenses were given to telecom companies at the price of 2001 on first come first serve basis.
ü Several bribes and nepotism cases were reported by the CBI in the allocation of these licenses. Several licenses were issued to the firms with no prior experience in the telecom sector and were ineligible. Companies like Unitech and Swan telecom were among those companies. Swan telecom got the license even though it did not meet the eligibility criterion.
ü Swan got the license for 1537 crore and sold its 45% stake to uk company Etisalat at 4200 crore.
ü Unitech got license for 1661 crore and sold its 60% stake for 6200 crores to Norway based telenor.
ü Now if you look at the prices at which the licenses were awarded and the prices at which half of their stakes were bought by foreign companies is a clear cut indication of how low the prices of the licenses were set by the DoT, it does not vindicate the telecom minister.
ü Licenses were issued on rock bottom prices to favour certain telecom companies. The deadline date was shifted to a prior date of 25th september from 1st October and the selling of equities to foreign firms at the prices much higher than the allotted price for the spectrum, also the issuing of licenses to firms who have no experience and ineligible is clear cut indication of the nepotism been done in the case and which is basic core reason which led to the scam.
ü The loss has been equivalent to the total defence budget of india.
ü The foreign players involved were
ü telenor of Norway in unitech india who accuses sanjay Chandra of unitech.
ü Etisalat of uae which accuses swan telecom shaid balwa
ü And systema of Russia --Sistema Shyam TeleServices Limited, now MTS India Joint venture between Shyam group of Indian and Sistema of Russia
ü He is accused of taking bribes from these companies through a tv channel owned by dmk chief karunanidhi’s daughter kanimozhi and his former wife. She is said to have taken 200 crore from shaid balwa owned db reality for her south Indian channel kaliagnar tv.
ü A separate jpc and pac joint parliamentary committee and public accounts committee to act against the accused and fid out the truth.
ü Big players like reliance telecom anil ambani’s and ratan tata’s tata telecommunivations were also roped in by the committee.
ü Role of nira radia corporate lobbyist and a close acquaintance of a raja and the media persons of ndtv barkha dutt and Hindustan times vir sanghvi influenced the decision of appointing a raja as the telecom minister in 2007 . the telephonic conversations were taped by income tax department. Nira radia ran a public relations firm called vaishnavi communications whose clients were reliance and tata tele-services. This was reported by Media sources such as OPEN and Outlook.
ü A.Raja could have received 3,000 crore (US$660 million) as bribe for bringing forward the cut-off date for applications for spectrum from the initial 1 October 2007 to 25 September 2007. The deadline switch eliminated many applications, enabling Raja to favour a few with spectrum.
ü The agencies also alleged that he used bank accounts under his wife's name in Mauritius and Seychelles to channelize the kickbacks he received.
ü He didn’t auction the 2G spectrum or adopt some other market-determined methodology to determine its real valuation and instead benchmarked it to a rate discovered in 2001, when the telecom sector was at a nascent stage.
ü On 2 February 2012 Supreme Court of India quashed all 122 spectrum licences granted during the tenure of former communications minister A Raja.The allocation of 2G spectrum was described by Supreme Court as "unconstitutional and arbitrary".[183] The bench of Justice GS Singhvi & Justice AK Ganguly imposed fine of 5 crore (US$1.1 million) on Unitech Wireless, Swan telecom and Tata Teleservices and 50 lakh fine on Loop Telecom, S Tel, Allianz Infratech and Sistema Shyam Tele Services Ltd.The Supreme Court's ruling said the current licences will remain in place for four months, in which time the government should decide fresh norms for issuing licences.
ü After effects of Supreme Court's verdict
ü Batelco quits India - Batelco, the Bahrain telecommunications company holding 42.7% stake in S Tel declared that it has agreed to sell its entire holding to Indian partner Sky City Foundation Ltd for 65.8 million Bahraini dinar ($174.5 million).
ü Telenor dumps and sues Unitech - On 21 February 2012 Telenor, majority stakeholder in Uninor, dumped its Indian partner Unitech and sued it seeking “indemnity and compensation”. Etisalat sues Shahid Balwa and Vinod Goenka - On 23 February 2012 Etisalat of the Etasalat-DB Telecom sued Shahid Balwa and Vinod Goenka, promoters of its Indian partner DB Realty for fraud and misrepresentation.
ü The scandal dented the congress charges in tamil nadu with its alliance with dmk instead the govt. of AIDMK won in tamil nadu making jayalalita the cm of tamil nadu.
ü The 2g spectrum scam and other scams also culminated into a nation wide movement against corruption led by anna hazare.
ü It has surely spoiled the image of congress in state elections of Uttar Pradesh as well.
ü What does it say about the brand India in the foreign market two things to be price ---
ü It is a safe haven to invest despite being one of the fastest growing economies where so many deals are being improperly regulated and investigated and also scrapped if found that our own person is at mistake. Who is at fault here is not the question we are asking from the verdict at hand but who is at loss is the right question we are demanding. The foreign companies will obviously scare to invest in India considering a possibility of a policy failure which might turnout bad for them in the long run and also being a growing economy we need strong foreign funding through fdi. Fdi currently in telecom sector in 74% in radio paging services and isp’s while it is 100% in email and other electronic mail and voice mail. Now the fdi wil flow into india if the investors look at india with a positive outlook. Foreign investors wont trust Indian govt. contracts.
ü Second thing that tells about India a counterview of the statement above that India is no longer a place for the sweetheart deals where you can manipulate things and the working by bribing officials and make your way through the market. There is finally a governing body which keeps tracks of all the advancements and maintains the checks and balances in the country. While India has arms wide open for the investors only if they are looking towards the betterment of the country as well as personal benefit but not at cost of causing a loss to the exchequer.
ü Norway’s PM has said Telenor should not be penalized for “errors others have committed in India.”
ü The verdict will impact indirectly 69 million users in India.
ü 85 licenses out 122 companies suppressed facts about themselves but verdict quashed all 122 license which has also affected telecom major IDEA coming nowhere in the scene.
ü The impact has been there customer bases has been shifted to other companies like Vodafone and airtel
ü There share prices in the past 6 months have fallen down by 50 to 70%
ü The ad expenditure has reduced.
ü The auction of 3g spectrum has also been effected
ü The competition has reduced so there will be hikes in tariffs and days of low bills have gone
ü It affects jobs 4000 direct and 6000 indirect jobs.
ü Foreign Telecom majors have already started moving out of the tainted companies.
ü Janta party president subramanyam swami to make the then finance minister p chinambram a co accused in the 2g case has been rejected by the court as it said that merely fixing the price of the spectrum to the price that it had in 2001 and taking a decision in a metting about it and also recommending a raja not to revisit the evaluated price of the spectrum in 2001 soes not prove is complacency in the case. His malafide intentions are made clear only when he seems to be benifiting from that by receiving any kick backs for it the dilution of the funds done by unitech and swan telecom much before they even launched there services has no relation with him however this shows his incompetency in operating as a finance minister which caused a huge loss to the exchequer but does not accuses him of a criminal offence.
ü The 2g spectrum verdict also hangs in dilemma the case of IDEA who were allotted the license in 2008 but were in queue since 2006 and were not the beneficiaries of the fiasco however were clubbed in with the other companies.
ü Once seen as a potential gold mine for its rapid growth and huge population, the Indian market has proven especially nerve-wracking for Western telecom operators because of unexpected regulatory changes and ferocious competition.
ü To make matters worse for the operators, the telecom ministry said on Wednesday it could take about 400 days to hold an auction to redistribute the licences, in a major blow to companies like Norway's Telenor or Russia's Sistema that have poured billions into the market and now face a legal minefield if they are to continue.
ü "The investor climate in India will be changed forever, for everyone if this happens," Jon Fredrik Baksaas, the chief executive of Telenor, told Reuters, as he warned that his group could still quit India if things did not improve.
ü The Norwegian government, which owns 54 percent of Telenor, has intervened with Indian authorities to argue Telenor's case after its joint venture Uninor looked set to be stripped of its licences to operate.
ü That would include limiting the spectrum to players that had lost licences, and not allowing market leaders such as Bharti Airtel and Vodafone to sweep in and scoop up extra spectrum.
ü Bahrain Telecommunications said earlier this month that it was exiting, while the United Arab Emirates-based Etisalat has said it will shut down its Indian joint venture after writing off $827 million.
ü India is the world's second-largest cellular market by subscribers, with 894 million at the end of December, however fierce competition among 15 operators means call rates are among the lowest while strict regulation has so far discouraged mergers or spectrum sharing.
ü TTSL has been advised to file a review petition in Supreme Court seeking redress on this point," the company had said earlier this month. The Supreme Court's decision reportedly included three TTSL licences along with a 5 crore penalty for selling shares to Japanese partner NTT Docomo.
ü Tata Tele's decision to move Supreme Court comes a day after Russia's Sistema, which retails mobile services under the MTS brand, decided to seek justice under a bilateral investment treaty after its mobile permits were annulled by the apex court. The Russian conglomerate had sent a notice to the government on Tuesday, claiming the Supreme Court verdict had triggered a breach in India's obligations under the Indo-Russia bilateral investment treaty.
ü It is likely that only a handful of the more than 15 million customers of MTS, the mobile phone service brand operated by Sistema Shyam Teleservices Ltd (SSTL), would have heard of Vladimir Petrovich Yevtushenkov. The face of SSTL in India has always been president and CEO Vsevolod Rozanov.
ü Siva Group Chairman C Sivasankaran has written to the Prime Minister asking for the return of its Rs 1,700 crore investment while offering to surrender 2G and 3G licences along with the infrastructure of S Tel, its venture with Bahrain Telecom.
ü Mr Swamy and opposition parties say that Mr Chidambaram endorsed Mr Raja's decisions and that, as Finance Minister, he allowed inexplicably low prices of licenses and valuable airwaves.
ü The argument of Shri Harish Salve, learned senior counsel that if the Court finds that the exercise undertaken for grant of UAS Licences has resulted in violation of the institutional integrity, then all the licences granted 2001 onwards should be cancelled does not deserve acceptance because those who have got licence between 2001 and 24.9.2007 are not parties to these petitions and legality of the licences granted to them has not been questioned before this Court.
ü India is the world's second-largest telecom market in terms of subscribers - it has 900 million subscribers. So far, the telecom sector has been crowded with more than a dozen players. Call rates in India among the lowest in the world.
ü Now that the Supreme Court has cancelled 122 licenses, here is a quick look at the likely impact.
ü
ü EFFECT ON TELECOM SECTOR
ü Verdict to shake up India's fragmented telecom market
ü To lead to consolidation in the telecom sector
ü Non-serious, weak players will be weeded out
ü Spectrum to be linked to market prices and auctioned
ü Established players like Bharti, Vodafone, and Idea to benefit
ü Policy uncertainty for the telecom sector as the judgement is studied and evaluated
ü
ü EFFECT ON CONSUMERS
ü Telecom rates to go up in long run as spectrum will be auctioned
ü
ü EFFECT ON ECONOMY
ü Auction of spectrum will lead to another financial windfall for government
ü 2G telecom auction may help plug government's fiscal deficit
ü May further dampen business climate and investor sentiment
Bad news for foreign investors in telecom, may further impact FDITuesday, June 14, 2011
for and since still a dilemma
For and since are commonly used with the present perfect tense.
For
We use for to talk about a period of time.
E.g. "I haven't smoked for weeks."
Since
We use since to talk about a specific point in time, or a time when the action started.
E.g. "I haven't smoked since 2010."
It can be quite tricky to know which one to use and just like everything else, you need to practise!
In the following sentences, should you use 'for' or 'since'.
- 1. I have lived in London ___ six months.
Correct!
- 2. I have danced ___ I was small.
Correct!
- 3. She hasn't had a day off ___ three months.
Correct!
- 4. I've lost so much flexibility ___ I injured my leg.
Correct!
- 5. They have all improved in attitude ___ the headmaster talked to them.
Correct!
- 6. Wars have been happening ___ centuries, it won’t ever change.
Correct!
- 7. I haven't been on holiday ___ ages.
Correct!
- 8. I haven't eaten that much ___ Christmas.
Correct!
- 9. I haven't been on holiday ___ last year.
Correct!
- 10. She hasn't seen her jacket ___ yesterday, I think she lost it.
Correct!
Monday, June 13, 2011
no title (blithely written) (carefree without any pressure)
one question that has been that has been haunting me, puzzling me, nightmarishly harbouring and mushrooming right under my nose is that i might lose my confidence in english (you know why i didn't used loose and instead lose these two mind boggling words that give jitters to even experts sometimes
to explain my point loose means not tight like the fitting of this shirt is loose however lose is as if u have lost something or u not currently in possession of it or u have not won sth like i fear i might lose this battle however i still have a chance to win the war )
anyways lets comeback to my fears, i always worry i might not be able to deliver when it is required the most and it has started to show up as well (how i cant share in the moment but yet it has ) i just cant figure out a way to make it bite the dust ( to fall so that your body touches the ground or to fail ) its a hard nut to crack (means its difficult to solve or find a solution ). Perhaps these hollow fears are just making me wary about(or of) my potential or caliber my abilities and sometimes it happens u to have to bite the dust to make others bite it and i know theirs more in me than meets the eye (actual phrase their is more to me than meets the eye means things are more complicated or things are more inside me hidden that can be seen from eye or at the beginning)
accomplishing what u want is not an easy task sacrifices have to be made perseverance has to be done.
may be the fact that i fear so much and work less is that over these years i have become a little touchy (one who quickly takes offence or i difficult to handle also called touchy-feely)
the best way out in fact the only way out the one which still might have chance for me to notch a six on the last ball and find a niche among-st the best people or the most profitable corner of a market.
i am no child prodigy but i have been nurtured and certainly and undoubtedly or indubitably and even indisputably sure that i rise from rags to riches and this fact is undisputed . This is not narcissism nor have i written this in vanity(excessive pride) or conceit (false pride) nor shall i proclaim that i am better their is only one thing that i believe regardless of how others do in their life i can do better. I have this deep rotted hunch that i will be what i dream.("thy shall be what thou dream of") this roman line seems to complement my blog (now you might ask why i haven't i used compliment (one with i) its simply because compliment is something that u want to say in praise of sth but complement one with the e is used when sth looks better along something or with sth like they both seem to complement each other or your shirt seems to complement your coat )
BY THE WAY WHAT DO I MEAN WHEN I SAY
throw on some clothes .
i quickly throw on some clothes to get to office in time.
i mean wear them very quickly..
to explain my point loose means not tight like the fitting of this shirt is loose however lose is as if u have lost something or u not currently in possession of it or u have not won sth like i fear i might lose this battle however i still have a chance to win the war )
anyways lets comeback to my fears, i always worry i might not be able to deliver when it is required the most and it has started to show up as well (how i cant share in the moment but yet it has ) i just cant figure out a way to make it bite the dust ( to fall so that your body touches the ground or to fail ) its a hard nut to crack (means its difficult to solve or find a solution ). Perhaps these hollow fears are just making me wary about(or of) my potential or caliber my abilities and sometimes it happens u to have to bite the dust to make others bite it and i know theirs more in me than meets the eye (actual phrase their is more to me than meets the eye means things are more complicated or things are more inside me hidden that can be seen from eye or at the beginning)
accomplishing what u want is not an easy task sacrifices have to be made perseverance has to be done.
may be the fact that i fear so much and work less is that over these years i have become a little touchy (one who quickly takes offence or i difficult to handle also called touchy-feely)
the best way out in fact the only way out the one which still might have chance for me to notch a six on the last ball and find a niche among-st the best people or the most profitable corner of a market.
i am no child prodigy but i have been nurtured and certainly and undoubtedly or indubitably and even indisputably sure that i rise from rags to riches and this fact is undisputed . This is not narcissism nor have i written this in vanity(excessive pride) or conceit (false pride) nor shall i proclaim that i am better their is only one thing that i believe regardless of how others do in their life i can do better. I have this deep rotted hunch that i will be what i dream.("thy shall be what thou dream of") this roman line seems to complement my blog (now you might ask why i haven't i used compliment (one with i) its simply because compliment is something that u want to say in praise of sth but complement one with the e is used when sth looks better along something or with sth like they both seem to complement each other or your shirt seems to complement your coat )
BY THE WAY WHAT DO I MEAN WHEN I SAY
throw on some clothes .
i quickly throw on some clothes to get to office in time.
i mean wear them very quickly..
Saturday, June 11, 2011
my lexico 2
lacuna --an absent part especially in a book or piece of writing ..
their seems to be some lacuna in the story that you are telling and what actually happened ..
hiatus-- a short pause where nothing is said or happens where something is missing
the hiatus between what happened just now and what is about to come is intolerable ..
the hiatus between two miseries can be bearable if u have someone to fall on to ..
difference between disinterested uninterested and not interested
a common goof-ups done by us
(twelve impartial people; i.e., with no personal interest)
their seems to be some lacuna in the story that you are telling and what actually happened ..
hiatus-- a short pause where nothing is said or happens where something is missing
the hiatus between what happened just now and what is about to come is intolerable ..
the hiatus between two miseries can be bearable if u have someone to fall on to ..
difference between disinterested uninterested and not interested
a common goof-ups done by us
Disinterested - having no personal involvement or receiving no personal advantage, and therefore free to act fairly. "Impartial" or "not taking sides". almost like indifferent which means complete lack of interest just because u dont have any vested interest in what is going on ... unbiased
We are struggling to identify twelve disinterested people for the jury.(twelve impartial people; i.e., with no personal interest)
when you have no involvement in or receive no special advantage or good from a situation or event
"All good referees must be disinterested"
Their close and financially rewarding relationship was sufficient to call into question the independence and disinterest of the directors.
Uninterested - means not showing any interest. "not interested". bored
"I'm uninterested in books. I'm interested in movies." Disinterested means impartial.Uninterested means not interested.
my advice --
for more confusing words log on to
narcissism -- to much interest and admiration of your own personal appearance and physical abilities
Monday, April 11, 2011
my lexico -- 1
Poised – means an object or a part of your body which is still right now but is ready to be in action at any time
E.g.- my pen was poised over the page, ready to write down the answer as soon as the bell rings.
The military forces are poised for attack.
The company is poised to face the new challenge
I am poised to take the examination this year
Are we poised for a change?
She saw a little white bird poised on a branch and fluttering its wings.
He sat with his pen poised, ready to take down the notes
Her finger was poised on the camera as she waited for them to take positions
The man across the road is poised to take down the thieves as soon as they come out of the bank
They stood their waiting, poised for action
I stood there for 5 hrs poised for some action but saw nothing not a flutter.
The suspect shows no movement, I am poised to take action
Poised to do something =------- ready to do something
Poised – another meaning is cam and controlled behaviour a balance in the way a person holds his body
Composure and dignity of manner
Balance or equilibrium
It is an evenly poised election
In an evenly poised match last night Delhi
It was a poised competition; the 2 competitors were equally matched.
He looked embarrassed for a moment and then regained his poise (composure)
Her confidence and poise show that she is a top model.
It is the confidence, dignity and poise in his personality that helped him to climb the success ladder so high, not often do you hear success stories about graft anymore. That poise in his character has helped him or given him a faculty to deal with tough and highly pressurized, situations which demand quick and fruitful results with a very small room for faults.
Graft—bribe
And hard work
After so many years of grafting finally , he has got a chance to relax and do something for himself.
Faculty-- one of the inherent cognitive (connected with thinking or conscious mental process) or perceptual powers of the mind like ability to hear thing feel or an ability to do something a particular thing
She still has all her faculties
Is he in command of all his faculties?
Are u in possession of all your faculties or senses
Are in possession of all your senses abilities or faculties
She had a faculty for inspiring confidence in people.
Studying has certainly sharpened my faculties or honed my skills.
Mental faculty
Modules
Microcosm – a small place or society or situation which has the same characteristics as something much larger
Opp
Macrocosm – a universe a large organized system considered as a whole
A universe, not as individual smaller groups
The audience was selected to create a microcosm of Indian society.
The fortunes of Indian cricket team encapsulate the story of post colonial India
Octogenarian – a person who is between 80 and 89 years old
The suspense is finally over with the octogenarian having decided to anoint his son vikramas heir( pronounced as aer)to his business empire. Taking advantage of the situation vikram also thanked his predecessor for giving him the opportunity and promised to continue his legacy forward.
Anoint – nominate as successors
nakul gulati: UNITED WE STAND DIVIDED WE FALL
nakul gulati: UNITED WE STAND DIVIDED WE FALL: "from allies to foes this journey was like a sweet tale but ending at a rumpus resulting in to a discord of the relationship between one of ..."
Tuesday, January 4, 2011
What is this India inc.?
this the most common term you will listen read almost every day more than one time whenever you move to the business page or tune to a business channel
often i wondered this might be India's biggest company which manufactures steel and coal
how stupid of me today i wondered what it is
it is a term often used by Indian media to define the or refer to the corporate sector of the nation
often i wondered this might be India's biggest company which manufactures steel and coal
how stupid of me today i wondered what it is
it is a term often used by Indian media to define the or refer to the corporate sector of the nation
who controls the internet?
When the Internet was originally designed, one of the goals was that there would be no “central point of failure”. It was originally a military project, and the idea was that the network would keep functioning even if it got damaged. Even if you were to damage the Internet so much that if was broken into two completely separate pieces, those two pieces would still work. You would be able to communicate with every computer in your piece.
In that sense, no one controls the Internet. Every computer is equal and they all connect to each other equally.
However, countries and companies exert control over the Internet. For example, if you are using a computer inside a company, that company can easily control your access to the Internet. The company can make certain services and certain sites inaccessible to you by blocking them at the firewall. In the same way, in a country like China, the cables that bring the Internet into the country are under government control. So China can control all kinds of things with a nationwide firewall.
another answer which i would like to share when i searched over the internet is---The official answer is no one, but it is a half-truth that few swallow. If all nations are equal online, the US is more equal than others.
Not that it is an easy issue to define. The internet is, essentially, a group of protocols by which computers communicate, and innumerable servers and cables, most of which are in private hands. However, in terms of influence, the overwhelming balance of power lies with the Internet Corporation for Assigned Names and Numbers, based in Marina Del Rey, California.
ICANN is a not-for-profit organisation that regulates online addresses, known as domain names, and their suffixes, such as ".com" and ".org". Since ICANN reports to the US government's Department of Commerce, the domain name process is effectively overseen by the US government. China, Russia and Europe have all expressed concern ...
who decides the value of a currency?
Currency value is determine by the purchasers of the currency. These are primarily travelers, governments and Forex traders. FOREX stands for Foreign Exchange. There are many factors that currency traders, governments and businesses take into consideration in determining the Fair Market Value of a currency.
Fair Market Value is the price at which a willing buyer and a willing seller come together. The buyer must factor in many elements and considerations to try to accurately assess a currency's value at any given time. There are approximately 180 different currencies in the world now.Many things that i wanted myself to be aware of
Theirs one particular quality in me that people from time to time have maid me aware of, sometimes it has proved good for me and good for others as well and sometimes it has had adverse effects i.e it annoys others and then i get annoyed. I am sure by the end of this blog you will be crystal clear about what idiosyncratic trait of my nature i have tried to penned down.
Ever since i got some power to think in my minuscule head, i became curious about whatever came in my way, may be i was always curious about way things functioned or who decides their blueprint or the rules of the game and why which was a good thing but not so often as i mentioned above anyways this aspect of mine cannot be cured so it should be better endured. I was always inquisitive about they ground rules are set up for most of the things that work around us and how are these guidelines decided take for an example a simple question i asked somebody how is the value of our currency decided?
cause what i basically meant was if this piece of paper or metal is what people are fighting for in their entire life, and this piece of paper with abstract art of famous politicians around the world and in different colors is what has the power to have anything u desire then all we need to do is print them in huge quantities and supply them to the poor this solves the elephantine problem of poverty which solves many interlinked other problems but regretfully this aint going to happen as i had my basics wrong, if its all about printing multicolored papers then the printing mills owner must be the king of the world, unfortunately he isnt so i began my search to find out what decides the value of our money and how much can we print and circulate?
their are a few basic prerequisites u need to know to understand what i learned today
exchange rate --the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency. basically the worth of one currency in terms of another currency.
their are two types of exchange rates as well spot exchange rate(current exchange rate) and forward exchange rate(rate quoted today but will be delivered on some other day).
PPP--purchasing power parity
however what i can infer from it compares the purchasing power of one country to another for a particular commodity and when they are calculated for various commodities they are clubbed to determine the exchange rate between them.
IMF-- International Monetary Fund
is an intergovernmental organisation which supervises global financial system it basically has a hand in deciding country's exchange rate by keeping track of all the transactions the demand of one currency and the amount or purchase of other currencies and it also provides loans to other poorer countries as well keeps the balance of payments it has its headquarters in Washington United States it has many member countries and has faced much criticism as well india us china japan are few key members of this organization
Members of the IMF are 186 of the UN members and Kosovo
how are decisions taken here? Major decisions require an 85% supermajority.[24] The United StatesEuropean Union have a combined vote of 710,786 (32.07%).[25] On October 23, 2010, the Ministers of Finance of G-20, governing most of the IMF member quotas, agreed to reform IMF and shift about 6% of the voting shares to major developing nations and countries with emerging markets
has always been the only country able to block a supermajority on its own. The following table shows the top 20 member countries in terms of voting power (2,220,817 votes in total). The 27 member states of the
india has 1.91% quota in it
china and japan have 3.72 and 6.12
where as us has the largest about 17%
okay
now lets come to the crux of the matter
how are exchange rates decided ?
value of a currency is determined by its demand in the international market
like other commodities which can be sold or bought currency can also be bought or sold so basically if i need to buy a tv from usa i need to pay the vendor the currency of usa to buy it which is obviously dollars so first of all i need to buy dollars and then i can trade dollars for getting a tv
this is how we trade currencies and now if demand of a currency is more that is more and more goods are being bought from that currency or all transactions are taking place in that currency so that currency will become strong and that currency when bought will give that country a lot of other country's currency to buy their goods that's how the things work
thats why value of a currency in terms of another currency will
.depend on the thing being traded(i mean various commodities)
.the ppp purchasing power parity
.amount of gold reserves a country has
.the price of that commodity being bought or sold in two different countries
.inflation rates in the two countries
.imf international monetary fund
After the gold standard and the US dollar standard fell, the world entered an age of the floating currency exchange. This means that everyday a nations currency might be more valuable or less valuable than the day before. What determines the fluctuations? Buyers. Countries all over the world purchase other countries currencies, which determines the value. The American Dollar is strong because many countries buy a whole lot of US Dollars. If investors and buyers decide to stop buying US Dollars, then the value of the US dollar would drop significantly. Now if countries like japan and china Japan about whom some economists argue that they intentionally keep the exchange rate low so that buyers on the world market will not purchase the Yen for example.
You would think that a weak national currency would indicate that this country is poor. Not always the case (China is a good exampe), the argument is that nations like Japan and China want their currency to be low in value so that other nations (like the US) will buy more Japanese and Chinese products imported. Think about it, if the US dollar is twice as strong as the Yen, than it can buy twice as many Japanse goods. If a computer costs 1,000 dollars in the US, but 1000 Yen in Japan, than you could buy two Japanese computers. make sense?
The Yens value is tampered with by the Chinese Government. It is fixed a price determined by other currencies to minimize its value thereby allowing for more exports this will increase the demand of yen in the market.and a time when all the trade is being done in yen it will increase its value by stop producing more currency and then we will be able to buy less yens in the same amount of dollars as the price has got high
However, Bank of Japan manipulates the currency market by flooding the market with yen. This keeps the value low thus increasing the attractiveness of its exports high. This is all much to the dismay of the US who would like Japan to buy some American stuff with all of that US currency they are hanging on to. But, buying consumer items from another country is not necessarily beneficial to Japan in the short term, and they can't see the long term.
What they often do is use that money to buy land in Hawaii and other states. Of course this doesn't do anything to affect the trade deficit
Japan is the world wealthiest nation and second largest economy after the USA. exchange of a nation can be either under fixed(set by govt./central bank) or flexible exchange rate(determined by demand and supply conditions in the forex market); as an economist
Ever since i got some power to think in my minuscule head, i became curious about whatever came in my way, may be i was always curious about way things functioned or who decides their blueprint or the rules of the game and why which was a good thing but not so often as i mentioned above anyways this aspect of mine cannot be cured so it should be better endured. I was always inquisitive about they ground rules are set up for most of the things that work around us and how are these guidelines decided take for an example a simple question i asked somebody how is the value of our currency decided?
cause what i basically meant was if this piece of paper or metal is what people are fighting for in their entire life, and this piece of paper with abstract art of famous politicians around the world and in different colors is what has the power to have anything u desire then all we need to do is print them in huge quantities and supply them to the poor this solves the elephantine problem of poverty which solves many interlinked other problems but regretfully this aint going to happen as i had my basics wrong, if its all about printing multicolored papers then the printing mills owner must be the king of the world, unfortunately he isnt so i began my search to find out what decides the value of our money and how much can we print and circulate?
their are a few basic prerequisites u need to know to understand what i learned today
exchange rate --the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency. basically the worth of one currency in terms of another currency.
their are two types of exchange rates as well spot exchange rate(current exchange rate) and forward exchange rate(rate quoted today but will be delivered on some other day).
PPP--purchasing power parity
this what i found on net about ppp
however what i can infer from it compares the purchasing power of one country to another for a particular commodity and when they are calculated for various commodities they are clubbed to determine the exchange rate between them.
IMF-- International Monetary Fund
is an intergovernmental organisation which supervises global financial system it basically has a hand in deciding country's exchange rate by keeping track of all the transactions the demand of one currency and the amount or purchase of other currencies and it also provides loans to other poorer countries as well keeps the balance of payments it has its headquarters in Washington United States it has many member countries and has faced much criticism as well india us china japan are few key members of this organization
Members of the IMF are 186 of the UN members and Kosovo
how are decisions taken here? Major decisions require an 85% supermajority.[24] The United StatesEuropean Union have a combined vote of 710,786 (32.07%).[25] On October 23, 2010, the Ministers of Finance of G-20, governing most of the IMF member quotas, agreed to reform IMF and shift about 6% of the voting shares to major developing nations and countries with emerging markets
has always been the only country able to block a supermajority on its own. The following table shows the top 20 member countries in terms of voting power (2,220,817 votes in total). The 27 member states of the
india has 1.91% quota in it
china and japan have 3.72 and 6.12
where as us has the largest about 17%
okay
now lets come to the crux of the matter
how are exchange rates decided ?
value of a currency is determined by its demand in the international market
like other commodities which can be sold or bought currency can also be bought or sold so basically if i need to buy a tv from usa i need to pay the vendor the currency of usa to buy it which is obviously dollars so first of all i need to buy dollars and then i can trade dollars for getting a tv
this is how we trade currencies and now if demand of a currency is more that is more and more goods are being bought from that currency or all transactions are taking place in that currency so that currency will become strong and that currency when bought will give that country a lot of other country's currency to buy their goods that's how the things work
thats why value of a currency in terms of another currency will
.depend on the thing being traded(i mean various commodities)
.the ppp purchasing power parity
.amount of gold reserves a country has
.the price of that commodity being bought or sold in two different countries
.inflation rates in the two countries
.imf international monetary fund
After the gold standard and the US dollar standard fell, the world entered an age of the floating currency exchange. This means that everyday a nations currency might be more valuable or less valuable than the day before. What determines the fluctuations? Buyers. Countries all over the world purchase other countries currencies, which determines the value. The American Dollar is strong because many countries buy a whole lot of US Dollars. If investors and buyers decide to stop buying US Dollars, then the value of the US dollar would drop significantly. Now if countries like japan and china Japan about whom some economists argue that they intentionally keep the exchange rate low so that buyers on the world market will not purchase the Yen for example.
You would think that a weak national currency would indicate that this country is poor. Not always the case (China is a good exampe), the argument is that nations like Japan and China want their currency to be low in value so that other nations (like the US) will buy more Japanese and Chinese products imported. Think about it, if the US dollar is twice as strong as the Yen, than it can buy twice as many Japanse goods. If a computer costs 1,000 dollars in the US, but 1000 Yen in Japan, than you could buy two Japanese computers. make sense?
The Yens value is tampered with by the Chinese Government. It is fixed a price determined by other currencies to minimize its value thereby allowing for more exports this will increase the demand of yen in the market.and a time when all the trade is being done in yen it will increase its value by stop producing more currency and then we will be able to buy less yens in the same amount of dollars as the price has got high
However, Bank of Japan manipulates the currency market by flooding the market with yen. This keeps the value low thus increasing the attractiveness of its exports high. This is all much to the dismay of the US who would like Japan to buy some American stuff with all of that US currency they are hanging on to. But, buying consumer items from another country is not necessarily beneficial to Japan in the short term, and they can't see the long term.
What they often do is use that money to buy land in Hawaii and other states. Of course this doesn't do anything to affect the trade deficit
Japan is the world wealthiest nation and second largest economy after the USA. exchange of a nation can be either under fixed(set by govt./central bank) or flexible exchange rate(determined by demand and supply conditions in the forex market); as an economist
Monday, January 3, 2011
Redefine The Rules
with reference to the article 'Raising Multipolar Stake' published on 04/01/11 in the Times Of India
Redefine The Rules
It was a paradigm shift in the foreign affairs of India in 2010 by playing itself a host to the world's most powerful nations and staking itself out as a big player in world politics. The move whether strategic or automatic by our government has done wonders for us as it has lent credence to the fact that we deserve a spot in the UN Security Council.This has redefined the basic rules for ones acceptance as a powerful stakeholder in taking decisions concerning the whole globe. However, India will have to be firm in its stand without getting overawed by other superpowers, plan its actions discreetly regarding its relationships with other stakeholders in the next decade and maintain a high economic growth.Friday, December 31, 2010
back to blogging
just couldn't figure out a name for this post(who cares), as long as i am happy to feel the power of sword back in my hands yet again after 5 months, its rejuvenating to feel u can still write or strike a few coherent cords(here it means tapping buttons on the keyboard).With the courtesy of a special person who urged me to write again (sahil khurana, prakhar pandey(hbti) ) i here by fire my gun,
Hits And Misses of 2010
1.Yet again this foolhardy attitude made me fell into the soup a couple of times this year and unfortunately i had to listen to the music (hard rock) from quite a few yet the spirit hasn't rotten as blatantly and shamelessly i concede ,as always i ll continue the heritage and make it "LEGENDARY" .(a coupled hit and a miss)
2.This years roller coaster ride was full of many ups and downs and twisted roads which really made me scream, "watch or i ll fall on u" huge battles were to be won on many fronts, some were important some were not so important and could have been dispensed with. I lost a few by reaching this {||} close to it, which counted a lot to me, but perhaps as all losers shred their incompetence by smartly modeling it, and giving it a shade of destiny, basically, believing destiny has got something better in store for me and then go back to my fool's paradise.(courtesy Exxon)
3.Hits are difficult to recall than misses that might be because of 2 things
(1) may be i delve into my past a lot and i am not able to give my self a chance to peek into the future and stabilize my present which has and can potentially harm my abilities to perform and turn me into a complete sodding person.
(2)or may be its a good habit that i keep on reminding myself of my past mistakes so that this time i should not leave an room for them to happen again.
but its time to move on as someone said, "i may have lost the battle, but i will definitely win the war"
1.Yet again this foolhardy attitude made me fell into the soup a couple of times this year and unfortunately i had to listen to the music (hard rock) from quite a few yet the spirit hasn't rotten as blatantly and shamelessly i concede ,as always i ll continue the heritage and make it "LEGENDARY" .(a coupled hit and a miss)
2.This years roller coaster ride was full of many ups and downs and twisted roads which really made me scream, "watch or i ll fall on u" huge battles were to be won on many fronts, some were important some were not so important and could have been dispensed with. I lost a few by reaching this {||} close to it, which counted a lot to me, but perhaps as all losers shred their incompetence by smartly modeling it, and giving it a shade of destiny, basically, believing destiny has got something better in store for me and then go back to my fool's paradise.(courtesy Exxon)
3.Hits are difficult to recall than misses that might be because of 2 things
(1) may be i delve into my past a lot and i am not able to give my self a chance to peek into the future and stabilize my present which has and can potentially harm my abilities to perform and turn me into a complete sodding person.
(2)or may be its a good habit that i keep on reminding myself of my past mistakes so that this time i should not leave an room for them to happen again.
but its time to move on as someone said, "i may have lost the battle, but i will definitely win the war"
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