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Showing posts from June, 2008

Extreme Currency

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The first thing that one can observe after a series of very high inflationary periods is, higher denominition notes.
Recently Zimbabwe launched 100 million zimbabwean dollar bills owing to the very high inflation which is hovering around 165000%.

Imagine the situation, where each loaf of bread costs around 16 million zimbabwean dollars. The currency depreciation made the currency trade at around $1 = 200 million zimbabwean dollars.

This lead me to a search for the world's largest denominition bills:
To begin with,
a) The largest denomination banknote ever officially issued for circulation was in 1946 by the Hungarian National Bank for the amount of 100 quintillion pengo, (100,000,000,000,000,000,000, or 10 to the power of 20).

The Post-WWII hyperinflation of Hungary holds the record for the most extreme monthly inflation rate ever — 41,900,000,000,000,000% (4.19 × 1016%) for July, 1946, amounting to prices doubling every fifteen hours!!

b) Largest bank note with zeroes was in Yugoslavi…

Only god can remove me from the power, not britain or any one else

Couple of weeks ago I said these statements in a rally.

Guess who am I?

Iam running the country for the past 28 years, after some heroic efforts.

In all these years of rule I hardly did anything for the economy, but I've ensured that I had all the luxuries.

Now Iam 84 years old, but still Iam eager about power.

Because of lot of international pressure I agree to conduct elections...My main opponent is a trade union leader and has been the strongest critic of mine for a long time...looking at the situation I predicted that it might be a landslide win for the opponent, so I went ahead and started annihilating all the supporters of the opponent party.

I even scared the people who were willing to vote to the opponent member.

In order to act as a mediator I invited the prime minister of the powerful country in the continent, who is the only supporter of mine and ensured that any troubles are overcome.

In spite of all the efforts, in the elections held in March' 08 I lost the elections. I …

Petrol price hike: Increased arbitrage for committing crime

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"Lets not burden our children.." these are the quotes of Mr. Manmohan singh after the fuel price hike declared yesterday. It is a basic common sense that all the oil companies will be dead without these price hikes. Not that these price hikes will lift them from the deep losses, the amount of direct subsidies atleast will come down.

The imminent affect of the fuel price hike will be felt by the normal consumer is two ways:
a) The increased price per litre
b) The quality of the fuel

One may wonder, how does increasing the fuel price hike affect the quality of the fuel. Because, the increase in the fuel price hike occurred on Petrol & Diesel but the prices of Kerosene remain UNTOUCHED. The arbitrage value can be understood from the below graph.



This will provide more impetus to the petrol aduleteration whose victims are the millions of vehicles, the environmental pollution and the famous Mr. Manjunath of IIML who was brutally murdered because he suspended the license of petrol…