Oil burn and the Nuclear balm

Hate it or love it, but the Nuclear balm seems to be the only relief for the Oil burns....
Raising CRR's and changing the monetary policies by RBI isn't going to work long. Solution has to be some form of energy only. But one more thing Mr. Reddy has made clear is that this oil shock, and consequently the inflation, have been externally imposed on us. We know very well who's done it. But we choose to keep mum. So as to not to offend a friend. Or should we say 'not a really nice friend'. For the sake of same friend we've been declining energy offers from around the world.
Another important thing might be that these dire situations might be created by our friend , the U.S. , to bring us to a situation where we have no other option but to sign the N-deal. But whatever the under currents might be, it seems we should sign the deal now, and enter into some form of strategic relationship with U.S., as the Left guys are fearing. Is it just another co-incidence that the Australians have come out with a statement that no Nuclear fuel could be sold to India unless it signs the Nuclear deal and the NPT. All the external factors are telling us to sign the treaty. All the internal factors are doing the opposite. After the opposition from Left, other allies have also suggested UPA to step back on N-Deal. And the SP, on which UPA banked it hopes in case of a Left retreat, has also declared that it life long opposition to the nuclear deal can not just disappear on the blink of the eye. Some more problems for Manmohan and Sonia. Good man P.C. looks real worried. He says he would be happy only if the oil prices come down below 100 $ a barrel.
And did you know U.P.S.C in this years Civil Services Prelims exam asked that how many Liters make a barrel. The answer of course was 159 Liters. But had it been 250 Liters, P.C. would have been all smiles :-)

TC

The Invincible Inflation

It has broken 13 year old record. And still there seems no stopping it. Inflation is killing. The Rich and the Poor are suffering together. What could be the possible reason for such an unstoppable sprint? One reason for sure is that this is the outcome of the Sub-prime crisis in the U.S. The big financial institutions taken aback by the mortgage crisis have taken billions of dollars out of the U.S. real estate market and pumped that money in to the Oil market and the Developing economies like India. That has caused the rise in international oil prices as well as caused inflation in our country. As has been said by Iran President, the rise in oil prices is all fake as their is no shortage of oil, and infact the production has gone up only. This supports theory which says that American Depression has been spread all over the globe due to heavy dependency on U.S. Dollar in global trading. As suggested by Mr. Ahmedinjad, this could have been avoided had the trading being done in some other solid currency. Moreover the oil price rise has also contributed to the already inflating economy of ours. So the coupled effect has hit our economy real bad. Some thing strong needs to done and that too quickly, if we want to save the Indian Ship......

Wooing the Left

Whats happened to the hyper hyped Nuclear Deal!
For last two years most of the wood pulp in our country has been wasted published news about the deal. But any viable and feasible completion for the deal seems to have been perceived. Looks like moods swing on both sides are occurring very rapidly. In this flip flopping, when the Yankees are in good mood, the Indians aren't. And when we are looking to finish it off, the Americans are disgusted with something or the other. And there seems no visible end to this vicious circle.
Latest of the happening in the series of events has been the Congress trying to woo their Left partners in favour of the Deal. Pranab Mukherjee has been sent to meet Prakash Karat to push for their nod for the N-Deal and more immediately to complete the safeguards agreement with IAEA. But as expected Left has refused to budge.
What is still the hot topic is that what could be the pro's and con's of the deal. If it was that important it should have been sealed by now. If it wasn't , it should've been scrapped! Of course the deal looks important for a developing and energy starved nation like ours. We need energy, doesn't matter where we get it from. So the both the N-Deal and the IPI pipeline need to be hotly pursued. But somehow our government has failed on both these fronts. Only thing we can suggest here is guys get atleast one thing if you can't get both!
Perhaps they are waiting for Russia to build them an Oil and Gas pipeline direct from Sakhalin or somewhere. In there dreams, because Russians are no more the same old guys who would help you all out without asking for anything in return. They have completed the transition from being socialists to being democratic socialists.....

Gott ist mit uns....

The Federal Wars

Hadouken!The Federal wars have begun!
Center has said that now it's up to the states to lower the simmering oil prices by cutting down the sales tax etc. States on the other hand have put the onus back on center by demanding help and resources. And lo! here starts the vicious circle of political blame game. But this is a game with a difference. Here both the participants win! Loser is the audience to the game, that is, the common public, you and me. Amazing isn't it!
Let's hope for they day when the audience would participate instead of being mere spectators.
And for icing on the cake, the deadline for IPI pipeline talks is over. Did some one say that we are short of LPG and its prices are expanding like Hubble's universe. Who is interested in the pipeline when we have some more entertaining things going on around us. Even the media seems to have overlooked the important strategic news(energy is the most strategic thing as of now) over some entertaining and other not so entertaining news.

Lets see what happens tommorow....

Cheers Manmohan!!
Hail Montek!!
The awesome twosome is really leading india towards......hmmm....please make it out for yourself. Actually they are very brave men. Even when adversity is knocking on their doors, they are happy believing that it aint anything serious. Anyway the point here is that whether the intelligent economists have been successful in their missions and ambitions regarding taking india to the top(their aint any confusion reagrding their aim...we are discussing the strategy). They made a paradigm shift when they discarded the Nehruvian economics in favour of the one dictated by Bretton Woods institutions. Was that a right thing to do at all?
When we talk of the rate at which the communist China has progressed, they always have an excuse of China's early start. But what about Russia? They have risen out of the ashes of erstwhile USSR like a phoenix. Who would have ever imagined even ten years back that they would be challenging the American might so soon. What is the secret of this unprecedented rise!
The great indian duo better have a look at the Russian case study before they make a yet another unsuccessful plan to steer the india ship out of rough waters.
So rather than trying to find reasons for the rising inflation capitalist style, they should find the solution to stop it the socialist way.
Just for an example, Chinese government has taken most of the burden of the rise in Oil prices on themselves. You better not copy them, as they are a giant economy. But you can atleast learn a trick or two from them. Getting knowledge from east doesn't make you any inferior.
One good happening of late is that atleats the guys are agreeing that there is a problem and that their isn't any solution as of know.....just see what the Dy. Chairman Mr. Ahluwalia has to say....



Any comments/suggestions would be highly appreciated.
See ya later then.