Global Oil Reserves

In an oil-intensive economic age, everyday we are reminded that we will run out of oil in the next few years. So what exactly is the reserve base today and how long will it last? Here's a video from British Petroleum, one of the world's largest energy companies.




Source: The Economist
http://www.economist.com/daily/chartgallery/displayStory.cfm?story_id=13851376

Market - efficient & rational?

Most economists and marketers go with the belief that the market (consumers) knows what it is doing. Is the belief misplaced? Joe Nocera of The New York Times says that the market is neither efficient nor rational. (Registration-free-required)

The Tiananmen Episode

Yesterday, June 4, was the 20th anniversary of the historic Tiananmen Square protests in China. Writing on democracy and freedom is one of fav pastimes. However, in this post I will only post a few links that shed light on what is, arguably, the most important event in post-1949 China.

For a complete timeline of the event click here: why, how, and what happened? (BBC)

Probably the single most powerful image of the protest episode was that of the 'Lone Protestor' who dared to stand in front of the military tanks that were called in to quell the protests. Here's a video of the Lone Protestor who was immediately arrested and has since 'disappeared'.



So what is the current mood at the Tiananmen Square like? (The Economist) Has China changed after the Tiananmen Episode? (This is a link to a range of views on the BBC.)

The Crisis of Credit Visualized

It's been a pretty long time since I blogged on just about anything. Here's a cool video on how the global credit crisis came about.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Stimulating Stimulus Packages

The global economic slowdown is taking its toll in myriad ways: rising unemployment, decreasing demand, spiralling bankruptcies (both personal as well as corporate), all leading to an adverse impact on the standard of life (and in some cases, quality of life).

On the same subject, today, I read a great piece on the Economist website. Let me cite some excerpts, including a cool interactive graphic, from the article. 

Pl note that the interactive graphic feature details the stimulus packages announced by governments of major economies, including India. Pl move your cursor over the highlighted country to read the local stimulus package. 

"To stem the slump, governments are fighting back with an activism rarely seen outside wartime. .. Weighted by their economies’ size, the plans of 11 big advanced and emerging economies are worth an average of 3.6% of GDP—though spread over several years. The IMF expects tax cuts and spending worth 1.5% of global GDP to kick in this year.

"In many rich countries the stimulus has been matched—and often dwarfed—by the upfront costs of financial rescues, including the recapitalisation of banks and guarantees for troubled assets. America’s Treasury has so far promised about $1 trillion (7% of GDP) for the finance industry. 

"Emerging economies are spilling less red ink, both because their banking industries are in less of a mess and because their stimulus plans, in general, are smaller. But they, too, will shift from a budget surplus in 2007 to a deficit of 3% of GDP. 

"If fiscal stimulus is no substitute for financial clean-ups, it is an important support at a time of slumping demand." 

An important question here is: does a fiscal plan of spending huge amounts by the government the right response to fight a severe liquidity crunch of this scale?

"Economic theory suggests that makes sense. When firms and consumers are gripped with uncertainty, government spending is a surer way to boost demand. Consumers and firms might save the money. The empirical evidence, however, is less than conclusive. Economists’ estimates for the “multiplier” effect of government spending and tax cuts vary widely, with equally reputable studies showing opposite results. More important, the scale of the global slump means that historical multipliers may not mean very much. That suggests a broad strategy—involving both tax cuts and spending—is prudent."

To read the complete article, click here.

Source: The Economist

Survival Measure in Gaza

I guess I need not write anything about how desperate times call for desperate ways.


© Patrick Chappatte, International Herald Tribune. Copyright belongs to the owner.

Bush's Fav Words

The outgoing U.S. President George W. Bush is often the butt of jokes, especially for his way (or the lack of it) with words. The above image carries the words Bush loved to use in his eight State of the Union addresses. Must say one thing: American politicians are obsessed with words like freedom, liberty, and above all, the name of their own country.

India's Terror Dossier

It's been five months since I blogged last. In this period, I have written, apart from several short essays, seven full-length essays:

(a) Outpost of Tyranny (on the dangerous political and economic situation in Zimbabwe),
(b) A Gate and a Wedge (on the volatile history of modern Afghanistan and the resurgence of the Taliban),
(c) Hades in Darfur (on the humanitarian disaster in Sudan),
(d) Russia's Resurgence (and the rise of a police state, well almost),
(e) 123... and it's done (on the Indo-U.S. nuclear deal),
(f) Island of Blood (on the history of the conflict between the State of Sri Lanka and the LTTE), and
(g) Living in a State of Denial (on the Indo-Pak relationship in the wake of the Mumbai Terror Attacks).

Of course, I can not, for copyright issues, post these essays, running into thousands of words,on this blog. However, what I can do is to blog on my take on issues that are close to my brain.

For those of you who wish to read India's dossier on Pak's terror machinations, click here (Part 1), here (Part 2), and here (Part 3).

From today, I will, for my own sanity, blog on a regular basis.