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Understanding the effect of rolling back petrol prices
While Petrol prices seem to be running astray, what one must understand is that causing “Bharat Bandh” and other protests and eventually rolling back prices may not help the situation.
For example, India sells 100 units of produce at Rs 1000. This means as long as India spends Rs 1000, it can recover it by selling 100 units. At this stage, the economy is balanced. Now, let’s say India sells a liter of petrol at Rs 50 instead of Rs 75 (its true value) thus making a loss of Rs 25 per liter. To compensate for this Rs 25 loss, India will either borrow Rs 25 or print currency of Rs 25.Whatever be the case, for the additional Rs 25, India does not produce any goods. The number of units continues to remain at 100. In the absence of any real production, India will recover the Rs 25 from its citizens by spreading the loss across the 100 units.
So, the system had 100 units and was sold at Rs 1000. However, due to the loss, an additional Rs 25 (borrowed money or printed currency) was added into the system. So while the units remained 100, the money in the system became 1025. While the price per unit in the previous situation was 1000/100 = Rs 10, now the price per unit would become 1025/100 = Rs 10.25. This is how the recovery takes place across all the units. In other words, the value of the rupee goes down because the same number of units is now purchased at a higher amount.
A very similar thing is happening in India. People are spending more than they are producing. This is causing fiscal deficit or a gap between what we spend and what we earn. So naturally, the value of money is eroding in the economy as explained in the earlier example. India does not produce enough petrol and therefore imports because petrol is an essential commodity. As shown in our earlier example, the increase in petrol prices is not being passed on to the end consumer. Had the increase been passed on to the consumer, the system might have self regulated itself by way of the consumer and reducing the consumption because of higher prices.
Since the price rise does not get fully passed on, the demand for petrol remains unabated and India has to import more quantity of petrol. This naturally leads to more paper money (or borrowing) in the economy without a commensurate increase of real goods in the economy. This means that the price of goods in the economy increases to offset the loss of petrol sales. Thus, instead of fewer people paying for the increase in the price of petrol, now they pay by way of higher prices of goods. This is what is commonly called inflation. So in essence, by rolling back prices, the people at large may not benefit as they are hit by inflation which erodes the value of their money.
Hope this note gives you an idea on the effect of rolling back petrol prices.
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@B@R_0_0_D wrote:@
Apple’s victory over Samsung in US may mean fewer phone options for consumers
http://economictimes.indiatimes.com/tech/hardwa...
will that have any effect outside US also ? .. good morning 
WikiLeaks’ founder Julian Assange to eventually resume broadcasts on Russian TV
vktiwari wrote:@B@R_0_0_D wrote:@
Apple’s victory over Samsung in US may mean fewer phone options for consumers
http://economictimes.indiatimes.com/tech/hardwa…
will that have any effect outside US also ?
of course, most of the things planned and tested their first,
but it will be long process, other factor which can play is low cost indian/ chinese manufacturers expanding
themselves in smartphone category,
including bouncing back by Nokia with their Asha range with lot of success.
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@B@R_0_0_D wrote:@
Infosys mulling salary hike for employees?
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Infy employee toh nahi ho na bhai 
ICICI Bank to add Facebook as Transaction Platform
Launches electronic branch, Tab Banking and E-Locker in Hyderabad
The Business Line
Hyderabad, September 5: ICICI Bank will soon add another online platform for dispensing its banking transaction services — Facebook. The country’s largest private sector lender was the first bank in India to use the social media site to provide services such as account enquiry and request for cheque. Now it is preparing to take this initiative one step forward by offering transaction services, such as deposit or transfer of money, to its Facebook customers. This is part of its efforts to provide next-gen banking solutions, in line with its ‘Khayaal Aapka’ (your care) philosophy.
Next-Gen solutions: It has recently added tablet banking and e-locker services to its range of technology products such as Internet and mobile banking. E-Locker is a virtual online locker, which can be used to safely store electronically scanned copies of important documents in various formats. Mukesh Kumar Jain, the bank’s Chief Technology Officer, said the bank was working on this technology and indicated that it could come out with this new service in the next few months.
Social media channels will, in the near future, form an important platform for banking services, he told media-persons here today. He was in the city to launch the bank’s electronic branch, Tab Banking and E-Locker services, as part of the bank’s nation-wide rollout of next-gen banking solutions.
Security issues: In response to a question, Jain said security was not a challenge in offering transaction services through the social media platform. He said this platform will not only make it easier for customers to make use of bank services but will also help the bank expand its customer base.
Jain said although mobile banking customers formed a small group today, two-thirds of the bank’s transactions were being done through ATMs and the Internet. He said the ICICI Bank page on Facebook already has seven lakh fans. A recent study by global consultancy major KPMG had revealed that businesses in India and other emerging markets are using social media platforms more than their developed market peers to expand customer relationships.
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Why the Internet Works and How to Break it
- *
Vinton G Cerf
The Economic Times
Published on January 28, 2013
- (Vinton G Cerf is the co-inventor of Internet)*
As the internet faces a mid-life crisis, we should remember the first principles that made it so successful and also ensure the core design is kept intact
If the internet was a person, it would be beginning to feel its age this year as it gets into its 30s, with a mid-life crisis looming. As it happens, the internet has never looked better: it’s faster, bigger, better and richer than it was in its 20s. But there are people having a midlife crisis on the internet’s behalf. Governments want to change how it is governed, how it works and, most disturbingly, its openness. So, it is worth taking a moment to outline the first principles of the internet that have made it successful, why they are worth preserving and what we can expect if they are preserved.
Bob Kahn and I began work on the design that became the internet in the 1970s, motivated by the spectacular success of the Arpanet project, funded by the US Defence Department, in which small computers sent data ‘packets’ across dedicated telephone circuits. It was a homogeneous network connecting inhomogeneous computers: different operating systems, different word sizes, different computational capacities.
We met in 1973 at Stanford and started working on a design to allow up to 256 networks to be connected in such a way that the host computers would not need to know anything about the layout of this super-network. At the same time, every host computer would be able to talk to every other one despite their different operating systems and other differences. We also worked on a detailed design of the Transmission Control Protocol (TCP) and began implementing and testing it in 1975.
We were sure that this was powerful. The packets we were using to transport data were remarkably adaptable: they could be transmitted over any digital communication channel, bringing with them any information that could be digitised. The network was not designed for a particular application and this has allowed it to support applications that weren’t predicted in the early formulation of the internet’s design.
We didn’t, for instance, anticipate the hand-held mobile. We did anticipate an ‘Internet of Things’ — more on that in a moment — and personal computing. We even foresaw notebook computing, whereby a computer that isn’t powerful can perform tricky tasks by drawing on the internet. We didn’t have to imagine it. Alan Kay had shown a notebook-computer concept around 1968 he called FLEX and Xerox Parc built the Alto personal computer along with the Ethernet in the early 1970s. They were living in a world that others would not experience for 20 years. The system Bob and I designed, alongside collaborators from Europe and Asia who visited our lab in the mid-1970s, has since grown by factors of a million or more on all dimensions: a many million times more users, a million times more hosts, a million times more networks, all connected a million times faster.
But the numbers aren’t the only difference. The internet era is different from the telephone era for at least two reasons: it allows groups to communicate, coordinate, collaborate and share information, and it supports every medium of communication invented, all in one network. People can discover each other without knowing who they are and they can find groups with common interests. The institutions spawned by the internet and which regulate and build the internet are similarly meritocratic and diverse.
The Internet Society, Internet Architecture Board, Internet Engineering and Research Working Groups, Internet Governance Forum and Internet Corporation for Assigned Names and Numbers: all of them are run by many stakeholders who together decide policies and standardisation. It is a meritocracy that respects ideas more than institutions. It values openness and sharing of information, freedom of choice and expression.
Of course, the internet can be abused and people harmed from that abuse. Protection of personal information should be a high priority for all internet application providers. We also need to educate people about what can happen when they share information on the internet: once it is available to anyone, it is possible for someone to upload to other sites or to capture and store the information. Any country that gets the internet soon finds out that some harm comes from people who are in other national jurisdictions. We will need to find ways for international cooperation to deal with abuse.
But as we do figure out better ways to make cyberspace safe to use, we must preserve the very properties that have made it so successful: freedom of expression, transparency and openness, participatory policy and technology development.
There is a risk that the beneficial properties of this shared information environment, the permissionless innovation that drives it, will be lost. Remember, there were other ways of designing the internet that didn’t build in those assumptions. The reason you haven’t heard of them is that they are nowhere near as powerful.
A lot is at stake, since we are far from the end of either the internet’s innovation or reach. It is clear that the internet will continue to grow from the 2.5 billion users today to perhaps six billion by 2020. There may be a natural limit at 80-85% of the world’s population. In the US, we seem to have hit that limit. Something like 20% of the population claims to have no interest in the internet. Of course, they may be using mobiles and mobile applications that actually rely on access to internet services and just not know it. And, even if they don’t use the internet, their bank, hairdresser and school almost certainly do. Beyond that, it is hard to know how the internet will look like in 40 years. It may have been replaced. It may be reengineered around the OpenFlow concept emerging from a Stanford University (Nick McKeown and Guru Parulkar) research programme sponsored by the US National Science Foundation. The notion of quantum communication may actually work someday. There will certainly be billions of devices on the internet and sensor networks as well as personal devices for health monitoring, augmented reality, natural language and gestural processing among many other possibilities. The Internet of Things, in which almost anything you are looking at will work better thanks to the internet, will be an important development. I also expect that we may see serious use of neural interfaces that allow you to issue instructions using your brain to develop between now and 2025.
There is an interplanetary internet forming, mostly around the exploration of Mars, but the International Space Station and the Epoxi spacecraft (designed to reach comets) are already part of it. While the protocols have had to be reengineered owing to deep space lightspeed delay, the notion of rich networking in support of manned and robotic space exploration is quite real.
It is operating on board the International Space Station, on the Epoxi spacecraft. Versions of the protocols are on board the Mars Rovers, the Mars orbiters, the Mars Science Lander that arrived at Mars on August 5, 2012. We had a test network linking all Nasa research facilities. The Bundle Protocol is being standardised by the Consultative Committee on Space Data Communications.
It is traditional to say that the sky’s the limit of a new technology. But it is not the limit here. The true limit lies in whether we are able to keep the internet’s core design features intact as it expands, or end that expansion with blunt policy tools that mean well but ruin things.
(The author is vice-president and Chief Internet Evangelist for Google)
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