15.03.2008

• Know anything about the Sarbanes-Oxley Act?
• It is popularly called SOX.
• The authors of this Act of the US are here touring in India. Michael Oxley and Paul Sarbanes say that the subprime mess is due to lack of transparency in the secondary market where it is hard to assess risks.
• India is one and every Indian has a right to settle and work anywhere in India says the Supreme Court
• During a hearing of the petitions against Raj Thackeray on his controversial remarks regarding North Indians, the Court said that it will not allow Balkanization of the country and would also not accept the ‘son of the soil’ theory.
• Incidentally how precisely can you define Balkanization? This is what Encyclopaedia Britannica says about this term:
• It is division of a multinational state into smaller ethnically homogeneous entities. The term also is used to refer to ethnic conflict within multiethnic states. It was coined at the end of World War I to describe the ethnic and political fragmentation that followed the breakup of the Ottoman Empire, particularly in the Balkans.
• The term Balkanization is today invoked to explain the disintegration of some multiethnic states and their devolution into dictatorship, ethnic cleansing, and civil war.
• When was the first farm loan waiver made?
• It was during the Prime Ministership of VP Singh in 1989-90.
• Do you know that in Cuba computer and DVD sales are restricted?
• I was really surprised to know about it.
• But now the government has lifted the ban on computer and DVD sales.
• However, air conditioners are still taboo, because of limited power supply position in the country.
• At present only foreigners and companies can buy computers.
• A recap of repo and reverse repo rates
• Reverse repo rate is 6% and repo rate is 7.75%.
• Reverse repo is the rate at which RBI borrows from banks and repo is the rate at which it lends to the banks.
• On world commodity prices
• Commodity prices (read inflation) have been rising for three years and are up by 30% in 2008. Normally a global slowdown reduces commodity demand and causes a price crash. But things are different now. What are the reasons?
• First, China and India now account for a big chunk of world GDP. Even in a recession, China will grow at maybe 9% and India at 7-8%, so demand for commodities will keep rising.
• Second, faulty government policies have dampened supply response to rising demand.
• Thirdly, stiff environmental rules have delayed the opening of new mines the world over, and most US states still ban offshore drilling.
• Lastly, as for agro-goods, government norms for mixing ethanol with petrol in the US and edible oils with diesel in Europe have diverted substantial acreage from foods to fuel, reducing food availability. This has been exacerbated by two droughts in Australia.
• While these factors caused most of the price rise in 2007, the US Fed is spurring inflation in 2008.
• A very good definition of celebrity.
• He is a person who works hard all his life to become known, then wears dark glasses to avoid being recognized. This was given by Fred Allen in his “Treadmill to Oblivion.”
• LCA is India’s finest achievement
• From time to time we need to know some details about our defence hardware. LCA is one such project which requires our attention because an equal measure of national pride and our defence preparedness are combined in this project.
• It is a very interesting piece that appeared in today’s ET. Recommend reading it at least once. Do so here.
• Noting about defence, we can’t miss any controversy that surrounds huge acquisitions; can we?
• USS Trenton, the US warship that is being acquired by India for $50 mn is coming with some strings attached – curbs on offensive deployment and intrusive end-use clauses. This was reported by CAG (Comptroller and Auditor General of India) in his report. The ship is of 1971 vintage. After some refurbishing it was expected to work for another 12 to 15 years. This CAG report has put paid to the enthusiasm of the Indian Navy in the US offer of selling another ship of the same class.
• In the mean time talks on the purchase of Admiral Gorshkov, the aircraft carrier from Russia are expected to be concluded in the next few months. Re-christened INS Vikramaditya, this will be handed over to Indian Navy in 2012.
• Finally water on mars?
• Scientists’ quest for finding water or traces of water on Mars has finally been fruitful, it appears.
• Using data and images captured by the shallow subsurface radar (SHARAD) on NASA’s Mars Reconnaissance Orbiter (MRO) spacecraft, scientists have discovered frozen water in the red planet’s mid-northern latitudes, far from its polar ice caps.
• Parliamentary vs. Presidential form of government
• This debate is very old and keeps cropping up once in a while in newspaper columns. The latest provocation for the re-appearance of the debate is the Indo-US nuclear deal.
• Though classical political science text books will have detailed discussions, Ramesh Thakur’s discussion in today’s Hindu is worth a read. Recommend a read once for everyone of you. Do so here.
• Darjeeling Gorkha Hill Council
• All of you, I know, might remember Subash Ghising well. He led the GNLF (Gorkha National Liberation Front) to victory and ensured the formation of the DGHC. But of late he found his nemesis in one of his own followers Bimal Gurung, who came up with GJM (Gorkha Janamukti Morcha). If we need to see history as it is unfolding, the article that appeared in today’s Hindu offers an excellent glimpse. Read it here.
• Long jump record
• Bob Beamon’s record of 8.90 meters set in 1968 Mexico Olympics lasted 23 years and still inspires the new generation.
• India’s formula one racing team makes its debut
• In Australian Grand Prix that is.
• It took the 17^th place.
• India is represented by Force India of Vijay Mallya. Its drivers are Giancarlo Fisichella and Adrian Sutil.
• China tops Internet users
• With 210 mn users at the end of 2007 and increasing by about 2 lakh users a day, it is leading the pack.