Famous quotes

"Happiness can be defined, in part at least, as the fruit of the desire and ability to sacrifice what we want now for what we want eventually" - Stephen Covey

Monday, October 31, 2022

Dont Fret over the Rupee depreciation

By Dhiraj Nayyar, Chief Economist at Vedanta

There is much fretting about the depreciation of the rupee vis-a-vs the dollar.It is commonplace to equate a strong curency with a strong economy.But that is not true, especially in an emerging economy.As long as there isnt too much volatility and sufficient foreign reserves a depreciation of the rupee is nothing to worry about.

It is important to note that the exchange rate is a price fundamentally determined by the forces of demand and supply.What has happened in the last several weeks is that the Us Federal Reserve has increased the interest rates in a bid to curb the unprecedented inflation in US.This has led to the flight of capital from emerging economies like India back to the US increasing the demand for dollars and the sell off of Indian rupee.

The RBI can sell off their existing dollar reserves inorder to stem off the fall in the rupee.Indeed it has done so,but in the end the quantum of money that trades in the financial markets dwarfs the reserves maintained by the RBI.So the central bank can only mitigate and not reverse the trend.In any case, it is a fallacy to equate a strong or apreciating exhange rate with a strong and prosperous economy.Perhaps the only countries that have prospered with a strong or overvalued exchange rate is the oil producing economies. But they have a peculiar economic structure.They export an epensive commodity which has a price inelastic demand and they need to import practically every other goods.Hence it makes sense for them to maintain a strong currency which makes exports expensive and imports cheap.

Every other country particularly emerging economies prosper when the exchange rate is relatively undervalued against major currencies giving them a competitive advantage for export of goods and services.Chinas entire growth strategy for the past 3 decades depended on a depreciated yuan.In India there has been an implicit preference for a strong currency.Part of the reason is political optics and part of the reason is also economic,India is hugely depndent on pil imports.It imports almost 90% of its oil demand. And a weak rupee makes this critical item more expensive in domestic markets.Since oil is the major input in every other economic activity, it impacts the general level of inflation and even growth.

India or atleast its policymakers would be much more comfortable about the level of rupee if they had energy self reliance.That is a worthwhile goal and requires a two pronged approach - a) Increasing the exploration and supply of oil/gas domestically ,b) Investing in the scaling up of renewable energy technologies.. A weaker would complement the other policis that the union government has put inplace to boost manufacturing in India.

It must also be noted that currently the rupee is not a global currency because there is no full capital account convertability.Again policymakers have been righly cautious about liberalisation which can also open the door to more volatility.However eventually as a major economy, India will open its capital account fully.
A stronger currency rarely lays the foundation for a strong economy. But the strong economy paves the way for a strong currency.

Sunday, October 23, 2022

Tamil Nadu Fertility rate

TN’s total fertility rate declines to 1.4, lowest in India: SRS data The state has the highest concentration of the elderly (12.8 per cent) in its urban areas

Tamil Nadu’s total fertility rate declined to 1.4 in 2020 from 1.8 recorded in the 2011 Census, according to latest data released by Sample Registration System (SRS) recently.

The state’s TFR along with West Bengal’s is the lowest in the country. Kerala is slightly ahead with a TFR of 1.5.

“Tamil Nadu and West Bengal have reported the lowest TFR (1.4). It is noteworthy that the replacement level TFR of 2.1 has been attained at the national level,” said the SRS report.

A decline in TFR means a fall in the number of children in the age group of 0-4 years – which is 5.6 per cent of the total population. Children in the age group of 0-14 years form 19.1 per cent of the population. The drastic fall in TFR may translate into the shutdown of primary schools and primary classes in big schools in the future as there may not be enough children to attend these schools or classes.

The number of people in the working age group of 15-58 – 69.2 per cent of the population – is also likely to decline as there are not many children who will reach this age group.

More adults, fewer children

“At the national level, the percentage of aged (60+) population is 8.1 per cent. The composition of 60+ aged female population is higher than males in all of the bigger states and UTs except Andhra Pradesh, Assam, Bihar, Jammu and Kashmir, Odisha and Telangana,” the report said.

In rural areas, those above 60 years constitute 8 per cent of the total population. The percentage of adult population in rural areas is the lowest in Bihar and Delhi (5.9 per cent) and highest in Kerala (13.2 per cent). Tamil Nadu’s senior citizen population is 11.7 per cent of its total population and is mostly concentrated in urban areas. This group constitutes 12.8 per cent of the urban population of the state, said the report.

The proportion of aged population in urban areas is 8.4 per cent, ranging from 5.9 per cent in Telangana to 12.8 per cent in Tamil Nadu. In case of females, the aged population (60 years and above) ranges from 6 per cent in Assam to 13.6 per cent in Kerala. The same ranges from 6.1 per cent in Delhi to 12.2 per cent in Kerala for males.

The crude birth rate in Tamil Nadu is also the lowest in the country. Tamil Nadu’s crude birth rate is 13.8 per cent, which is also the lowest in the country and Bihar has the highest crude birth rate of 25.5 per cent, said the report.

Luckiest Girl Alive : Netflix Movie

Sunday, October 16, 2022

The High Speed Rail Germany needs

The High-Speed Rail Germany Needs

Written by Alon Levy

I’ve argued in two previous posts that Germany needs to build a complete high-speed rail network, akin to what China, Japan, France, South Korea, and Spain have built. Here is the network that Germany should build in more detail:

The red lines denote high-speed lines, some legacy 250-280 km/h lines but most built to support 300-320 km/h, that are justifiable within the context of domestic travel. Some of these already exist, such as the Frankfurt-Cologne line and the majority of the Berlin-Munich line; Berlin-Hamburg is a legacy line upgraded to 230, currently tied with Frankfurt-Cologne for fastest average speed between two major cities in Germany. A handful of red lines are key legacy connections, i.e. Dresden-Leipzig and Dortmund-Duisburg. Some more detail on the red lines is available in Google Maps.

The blue lines denote high-speed lines, generally built to 300, that only make sense in an international context. The lines in France are the LGV Est and its short low-speed branch across the border to Saarbrücken. In Belgium the line preexists as well as HSL 3 and HSL 4, but is quite slow, averaging only 140 km/h from Brussels to Aachen thanks to a combination of a slow segment to Leuven and a speed-restricted western approach to Liege. In the Netherlands, Switzerland, Czechia, Austria, and Poland the lines are completely speculative, though in Czechia a high-speed line from Prague to Dresden is under study.

Update 8/19: here is another map of the same network, color-coded differently – red is proposed lines (most by me, a few officially), yellow is lines under construction, blue is existing lines, black is low-speed connections. Note that outside Berlin’s northern approaches, urban approaches are not colored black even if they’re slow.

Trip times

To compute trip times, I dusted off my train performance calculator, linked here. The parameters I used are those planned for the next-generation Velaro (“Velaro Novo“), i.e. a power-to-weight ratio of 20.7 kW/t and an initial acceleration rate of 0.65 m/s^2; the quadratic air resistance term is 0.000012, as any higher term would make it impossible to reach speeds already achieved in tests. On curves, the lateral acceleration in the horizontal plane is set at 2.09 m/s^2 on passenger-priority lines, mirroring what is achieved on Frankfurt-Cologne, and 1.7 elsewhere, accounting for lower superelevation.

These are aggressive assumptions and before running the code, I did not expect Berlin-Munich to be so fast. With intermediate stops at Erfurt, Nuremberg, and maybe also Ingolstadt, this city pair could be connected in 2.5 hours minus a few minutes for interchange time at the terminals. In general, all trip times printed on the map are a few minutes slower than what is achievable even with some schedule padding, corresponding to dwell times at major through-stations plus interchange at terminals. The upshot is that among the largest metro areas in Germany, the longest trips are Hamburg-Stuttgart at 3:30 minus change and Hamburg-Munich at 3:15 minus change; nothing else is longer than 3 hours.

The stopping pattern should be uniform. That is, every 320 km/h train between Berlin and Munich should stop exactly at Berlin Südkreuz, Erfurt, Nuremberg, and maybe Ingolstadt. If these trains skip Ingolstadt, it’s fine to run some 250 km/h trains part of the way, for example between Munich and Nuremberg and then northwest on legacy track to Würzburg and Frankfurt, with the Ingolstadt station added back. Similarly, from Hamburg south, every train should stop at Hanover, Göttingen, Kassel, and Fulda.

In certain cases, the stopping pattern should be decided based on whether trains can make a schedule in an exact number of quarter-hours. That is, if it turns out that Munich-Nuremberg with an intermediate stop in Ingolstadt takes around 42 minutes then the Ingolstadt stop should be kept; but if it takes 46 minutes, then Ingolstadt should be skipped, and instead of running in the depicted alignment, the line should stay near the Autobahn and bypass the city in order to be able to make it in less than 45 minutes. I think Ingolstadt can still be kept, but one place where the map is likely to be too optimistic is Stuttgart-Munich; Ulm may need to be skipped on the fastest trains, and slower trains should pick up extra stops so as to be 15 minutes slower.

Frequency and service planning

Today, the frequency on the major city pairs is hourly. Under the above map, it should be half-hourly, since the faster trip times will induce more ridership. As a sanity check, TGVs connect Paris with each of Lyon’s two stations hourly off-peak and twice an hour at the peak. Paris is somewhat larger than the entire Rhine-Ruhr, Lyon somewhat smaller than Stuttgart or Munich and somewhat larger than the Rhine-Neckar. But the ICE runs somewhat smaller trains and has lower occupancy as it runs trains on a consistent schedule all day, so matching the peak schedule on the TGV is defensible.

The upshot is that Berlin can probably be connected every 30 minutes to each of Hamburg, Munich, Frankfurt, Cologne, Düsseldorf, and the Ruhr proper. Frankfurt-Munich is likely to be every 30 minutes, as are Hamburg-Frankfurt and Hamburg-Munich. To further improve network connectivity, the schedule at Erfurt should be set in such a way that Hamburg-Munich and Berlin-Frankfurt trains are timed with a cross-platform transfer, regardless of the pulse anywhere else. A few connections to smaller cities should be hourly, like Berlin-Bremen (with a timed transfer at Hanover to Hamburg-Frankfurt or Hamburg-Munich), Leipzig-Munich, Leipzig-Frankfurt, and Frankfurt-Basel.

The loop track around Frankfurt is based on a real plan for mainline through-tracks at the station, currently in the early stages of construction. The near-Autobahn loop is not included, but such a connection, if done at-grade, could provide value by letting trains from Munich enter the station from the east and then continue northwest toward Cologne without reversing direction.

If the international connections are built as planned, then additional hourly and even more frequent connections can be attractive. Zurich-Stuttgart might well even support a train every half hour, going all the way to Frankfurt and thence to either Cologne or Berlin. Similarly, Berlin-Frankfurt-Paris could plausibly fill an hourly train if Frankfurt-Paris is cut to 2:30 via Saarbrücken, and maybe even if it takes three hours via Karlsruhe.

The one exception to this interconnected mesh is Fulda-Würzburg. The Hanover-Würzburg line was built as a single 280 km/h spine through West Germany with low-speed branches down to Frankfurt and Munich. Unfortunately, completing the Würzburg-Nuremberg segment has little value: Munich-Frankfurt would be almost as fast via Stuttgart, and Hamburg-Munich would be half an hour faster via Erfurt with not much more construction difficulty on Göttingen-Erfurt. Fulda-Würzburg should thus be a shuttle with timed transfers at Fulda, potentially continuing further south at lower speed to serve smaller markets in Bavaria.

Cost

The domestic network depicted on the map is 1,300 km long, not counting existing or under-construction lines. Some lines require tunneling, like Erfurt-Fulda-Frankfurt, but most do not; the heaviest lifting has already been done, including between Erfurt and Nuremberg and around Stuttgart for Stuttgart 21 and the under-construction high-speed line to Ulm. I doubt 100 km of tunnel are necessary for this network; for comparison, Hanover-Würzburg alone has 120 km of tunnel, as the line has very wide curve radii to support both high-speed passenger rail and low-speed freight without too much superelevation. The cost should be on the order of 30-40 billion euros.

The international network is more complex. Berlin-Prague is easy on the German side and even across the border, and the only real problems are on the Czech side, especially as Czech planners insist on serving Usti on the way with a city center station. But Stuttgart-Zurich is a world of pain, and Frankfurt-Saarbrücken may require some tunneling through rolling terrain as well, especially around Saarbrücken itself.

Even with the international lines added in, the German share of the cost should not be too onerous. Getting everything in less than 50 billion euros should not be hard, even with some compromises with local NIMBYs. Even on an aggressive schedule aiming for completion by 2030, it’s affordable in a country where the budget surplus in 2018 was €58 billion across all levels of government and where there are signs of impending recession rather than inflation.

With its mesh of medium-size cities all over the country following plausible lines, Germany is well-placed to have the largest high-speed rail network in Europe. It has the ability to combine the precise scheduling and connections of Switzerland and the Netherlands with the high point-to-point speeds of France and Spain, creating a system that obsoletes domestic flights and competes well with cars and intercity buses. The government can implement this; all it takes is the political will to invest in a green future.

The Midnight Club

Saturday, October 08, 2022

Dont call it a Mystery

There is never really one truth

Lets say there are A and B.One day they collide on the stairs and B falls down and gets hurt.B was always getting bullied by A.He claims this time he was pushed on purpose as well,but A never considered himself a bully.He thought they were just playing.He says this instance was just an accident.Neither is lying so what is the truth in this case?

Well.... A wasn't bullying B and B got the wrong impression. They just ran into eachother and fell.

Do you think so? Really ?

The only one who thinks there was no bullying is A .His assumption is just as wrong as B's.People can only see things subjectively.And they can only call that the truth.

If another person,C, saw the whole thing,he might even have another perspective. Without a god like third party, we can't see everything. Thats why opposing sides of wars and conflicts have different versions of what happened. Even if neither is lying nor exaggerating, they will have different stories.To A, A's version is the truth.To B,B's version is the truth. So you see, there is not only one truth, there aren't even two or three truths. There are many truths as there are people.

But... there is one truth. In this case, A and B collided and B was injured. Thats what the police should investigate and not the truth about people.You fail to carry out justice because you are obsessed with an abstract concept like truth.

What the hell.....are you talking about ?

Sunday, October 02, 2022

Pressure on British PM Liz Truss policies

British Prime Minister Liz Truss | Reuters

New British Prime Minister Liz Truss came under growing pressure Wednesday from opponents and inside her Conservative Party to reverse announced tax cuts that are fuelling a financial crisis in an already struggling economy.

The Bank of England stepped in to buy up government bonds in an attempt to stabilise the cost of borrowing after the government said last week that it would slash income tax and scrap a planned corporation tax hike, all while spending billions to cap soaring energy bills for homes and businesses.

Friday's mini-budget sparked market unease about the level of U.K. government debt and sent the pound plunging to a record low against the U.S. dollar.

Neither Truss nor Treasury chief Kwasi Kwarteng has made a public statement on the turmoil. Conservative lawmakers watched with mounting alarm as the currency struggled along at near-record lows. Britain's central bank signalled a hefty interest rate hike was in the cards for its next meeting, due in November.

This inept madness cannot go on, Simon Hoare, a Conservative member of Parliament, wrote on Twitter. Another Tory legislator, Robert Largan, said he had serious reservations about some of the government's announcements.

There's a lot of concern within the parliamentary party, there's no doubt about that, Mel Stride, the Conservative chairman of the House of Commons Treasury committee, said.

Andrew Griffith, a junior minister in the Treasury, said the government would not reverse course but would get on and deliver" its plan.

All the main opposition parties demanded calling Parliament back early from a two-week break so lawmakers who are not due back in the House of Commons until Oct. 11 could confront the crisis.

Many people will now be extremely worried about their mortgage, about prices going up, and now about their pensions," Labour Party leader Keir Starmer said. "What the government needs to do now is recall Parliament and abandon this budget before any more damage is done.

Truss was appointed prime minister on Sept. 6 after winning a Conservative Party leadership contest to replace Boris Johnson, who stepped down in July after a three-year term tarnished by ethics scandals.

Truss, a champion of low-tax, free-market conservatism who cites 1980s political icons Margaret Thatcher and Ronald Reagan as inspirations, promised during her campaign to slash taxes and red tape in order to energize Britain's sluggish economy.

Truss and Kwarteng vowed to challenge economic orthodoxy that they claim is holding Britain back. One of Kwarteng's first acts in office was to fire the top civil servant in the Treasury, Tom Scholar.

But many Conservatives were surprised by the scale of the announced tax cuts and by the strength of the market reaction.

The 45 billion pounds ($49 billion) in cuts, to be funded by borrowing, would come after the government just agreed to spend billions more to help shield homes and businesses from soaring energy prices driven by Russia's invasion of Ukraine.

The growing debt raises the prospect the government will have to borrow more, at ever higher cost, and will have to cut public spending as a result.

The government says it will set out on Nov. 23 how it plans to pay for the cuts, alongside an economic forecast by the independent Office for Budget Responsibility.

I don't think we can wait until November," Conservative lawmaker Roger Gale told the BBC. We need a statement in very short order indeed to steady the nerves, steady the market and set out very clearly what the business plan is.

Adam Tomkins, a former Conservative member of the Scottish Parliament, said Trussonomics was profoundly unconservative.

Tomkins, now a professor of law at the University of Glasgow, said the hammering of the pound is the strongest possible sign that the markets don't buy the newfound recklessness, the dogma that you can tax-cut your way to lower public spending.

What we are witnessing right now is not only the Conservative Party trashing its own brand: it's the Conservative Party trashing the economy, he wrote in the Herald newspaper.

(AP)

How China removes illegally parked cars