Thursday, 4 October 2018

HOW TO INFLUENCE NATIONS AND WIN THE TRADE WAR


A  Twin  Tragedy  ?

Yesterday ,

·      a barrel of crude oil was selling for $ 85

·      $ 1 , could fetch you , Rs 73.4

And petrol was selling for Rs 91 / liter in Mumbai

What would happen if ,

·      Oil sells for $ 100 / barrel , and

·      Rupee slides to $ 1 = Rs 100  ?


That would cost Rs 10,000 to buy a barrel of oil, which when refined, would yield between 40 – 70 litre of petrol ( depending upon the quality of crude ) . Let us assume, 50 litre of refined petrol from 1 barrel of crude

So , before refining, the RAW MATERIAL COST would be Rs 200 per litre of petrol  !

For you , that would translate to  Rs 450 per litre  at the petrol pump !

You do not have to be an expert to guess what such a scenario could mean to our economy

Of course, a great majority of experts would assure us that there is a very low probability of such an event happening

But then , same persons would also rule out the existence of a BLACK SWAN  , which author Nassim Taleb describes as follows :

*  It is an " OUTLIER ", as it lies outside the realm of regular expectations ,
    because nothing in the past can convincingly point to its possibility


*  It carries an " EXTREME  IMPACT "


*  In spite of its outlier status , human nature makes us concoct  
    " EXPLANATION " for its occurrence , after the fact , making it
    explainable and  PREDICTABLE

   

In brief ,


*   Rarity


*   Extreme Impact


*   Retrospective Predictability


According to Taleb ,


*   The highly expected  " not happening ",  is also a Black Swan

In “ Retrospection “ , here is what I wrote :

A Full Blown Crisis ?  [  25  April  2011  ]

World Bank president Robert Zoellick warns that the world is one shock away from a full-blown crisis.

Here are my guesses re: where that one shock may come from :

*  
European Invasion…………….. [ Libya ]

*  
Ethnic Massacres………………….[ Africa ]

*  
Population Explosion…………… [ India ]

*  
Regimes Overthrow………………[ Middle East ]

Nuclear Nemesis…………………….[ Japan ]

Economic Collapse…………………[ PIGS ]

Overheated Economy…………… [ China ]

Melting Snows…………………………[ Poles ]

Terror Exports…………………………[ Pakistan ]

Food Shortages……………………… [ Developing Countries ]

Global Warming………………………[ Worldwide ]


Feel free to add your own.

There is no doubt that in 2011,
a “ Black Swan “ event is around the corner !


Not being a later-day Nostradamus , I could not foresee :

·       Brexit

·       Trade Wars

But the issue is hardly what one could anticipate or not

Question is : 
What do we do now to face this Twin Tragedy  ?

Answer is :  
Treat this impending calamity as a “ blessing in disguise “

Let us pull out all stops and turn to Solar Power

Let us advance our target date ( for reaching 100 GW ) from 2022 to 2020

Only yesterday , SoftBank CEO , Masayoshi Son said :
“ As long as you have the land and sunshine, as long as you have eyes and ears listening to me, I will give you free power “

But he is offering that  FREE power , AFTER 25 years , when he has recovered his investment from his existing / planned solar projects  !

We , in India , just do NOT have the luxury to wait for 25 years !

If we want to survive the impending TRADE WAR ( unleashed by Trump and racing around the World like a Tsunami ), then we must have that FREE solar power by 2020 !

That is just one of the ways to turn India into a LOW  COST  ECONOMY

I have described that WAY in :

Unlimited Power : and round the clock ?        [  29  July  2016  ]


How Cheap can it get ?                                 [ 14  March   2017 ]

 

Piyush Goyal is a Visionary !                          [ 19  March  2017 ]

 

INDIA : the NEW LAND OF THE RISING SUN ?  [  01 April 2017 ]

 

 

Masayoshi Son said :

 

“ Less than 1 per cent of India’s land mass will be sufficient for 1,000 GW of solar power generating capacity … There is sufficient waste land in the country for the same  “

 

 

Way back , on 02 Jan 2017 , I wrote ( sent as email to the Policy Makers ) :

[ https://myblogepage.blogspot.com/2017/01/sun-our-soul-new-sos.html  ]

 

One hour of Sunshine falling on India's land area of 3,000,000 square kilometers , can generate enough electricity to power our nation for ONE year !


Now , most of India gets 6 hours of Sunshine daily for some 300 days in a year !


So , as a nation , we get 1800 hours of Sunshine , every year


If we were to cover our entire land area ( of 3,000,000 sq km ) with Solar Panels , we could get enough electricity in one year ( ie: in 1800 hours ) , which will meet our power needs for 1800 YEARS ! ( about 5000 trillion Kwh ! )


But , at the most , we need to store the Solar power for a few days only ( even if Sun does not come out for a couple of days ) . Certainly not for 1800 years !


So , there is no need to cover up our entire land mass with Solar Panels


A very small fraction need be covered . Say, all roof tops in India ?



 

As in case of my earlier emails , this blog too is being sent to :





































=====================================================

In addition , this time , I am also sending this email to the following :







PM’s Economic Advisory Council :






Some others :




Trade Advisory Group :

Surjit Bhalla………………………………….. ssbhalla@gmail.com

S Jaishankar…………………………………  psfs@mea.gov.in

Rajeev Kher………………………………..   Rajeev.kher@ris.org.in

Sanjeev Sanyal………………………   Sanjeev@sanjeevsanyal.com  /  contact@idfcinstitute.org

Shekhar Shah…………………………….    ashah@ncaer.org

Vijay Chauthaiwale…………………….   Vijai63.bjp@gmail.com

Pulak Ghosh……………………………….   Pulak.ghosh@iimb.ac.in

Jayant Dasgupta…………………………   ictsd@ictsd.ch  /   amb-indiawto@nic.in

Rajiv K Luthra……………………………… rajiv@luthra.com

Chandrajit Banerjee……………………  cb@cii.in


04  Oct  2014

www.hemenparekh.in / blogs

 

 

 




No comments:

Post a Comment