Overconfidence and Media Bias – Pre-match Commentary Star Tv – Post Match Zee Tv

What goes UP

LIFE: 17-year old bowls out the Master Blaster with over 17 years of experience

Moral: You are still learning the game despite the loads of experience you have.

Police State? US – MILITARY AT G-20 PROTEST

Associated Press

PITTSBURGH (AP) — Businesses vandalized during Group of 20 protests were cleaning up broken glass and getting back to work Friday while demonstrators pledging nonviolence planned an afternoon march to protest environmental, health care and other policies.

…

The march had a city permit and organizers pledged to keep it nonviolent.

That was not the case with a Thursday afternoon march that ended with clashes between police and anarchists.

Police, in an overwhelming show of force, declared the march illegal almost as soon as it began. Small bands of anarchists responded to officers’ overwhelming show of force by rolling huge metal trash bins, throwing rocks and breaking windows. Police fired rubber bullets and canisters of pepper spray and smoke.

On Friday, local businesses were trying to send messages to potential vandals, declaring themselves family- or locally owned.

Timesonline

Anti-G20 protesters rampaged through the city centre of Pittsburgh tonight, smashing up shops and throwing rocks at police, as officers used tear gas and baton-charges in an attempt to bring them under control.

In riots which continued through evening rush hour, about 300 protesters were reported to have remained from an initial crowd of 2,000 in Bloomfield, Pittsburgh’s Little Italy.

Frustrated in their attempts to reach the venue where world leaders are meeting the crowd, many of whom wore face-masks and armed themselves with rocks, broke windows at fast-food restaurants, a BMW dealership and a bank in the area, about a mile from the fenced-off convention centre.

Police in body armour and armed with plastic shields threw pepper gas canisters to disperse the protesters, charging in to make some arrests.

Some reports also suggested that rubber bullets had been used, but police tonight confirmed that they had fired pellet-filled “beanbags” to combat the rioters.

Shahid Masood’s Analysis of Zardari’s call for $100b aid and Friends of Pakistan (FOP)

Of Economy and The Poor – Time to Wakeup

“Experience, however, shows that neither a state nor a bank ever have [sic] had the unrestricted power of issuing paper money without abusing that power; in all states, therefore, the issue of paper money ought to be under some check and control; and none seems so proper for that purpose as that of subjecting the issuers of paper money to the obligation of paying their notes either in gold coin or bullion.” –David Ricardo

“He who tampers with the currency robs labor of its bread.” –Daniel Webster, 15 Mar 1837

“All progress is based upon a universal innate desire on the part of every organism to live beyond its income.” –Samuel Butler

I am not an expert on economics or any other area of study, I am just another skeptic who likes to make up stories. I am amazed by the fact that the “legal tender” (a.k.a the currency note) is given so much importance despite the fact there are no valuable reserves backing it but only government’s “guarantee”. This is something we keep close to our hearts that the government recklessly prints.

I have long asked myself why is it that people continue to devote enormous time of their day in pursuit of money even when what wealth they have is far beyond what they need and why is there a perpetual struggle for the poor to keep up with the rising cost of living. I think I am crazy to even consider such an unintellectual proposition. After all money is the epicenter of the present economic system and the endless pursuit of which is the ultimate objective of life (enlightened moderation).

So how much money there is for everyone to chase?

Well that is interesting, lets take US as an example and turn to Fed for answer. It appears that that currency in circulation is presently just under a trillion dollars and growing since it is convenient to print money to makeup for excess spending.

Let’s forget theory for a moment here, lets not talk about M2 M3 and M-infinity and just focus on what we have, after all I am a regular average-Joe, I cannot understand all the fancy words.

Below is the graph that shows how the currency in circulation has increased over time.

Interesting? Well there is more.

So why is it increasing? Well one theory is that to keep people employed and counter recessions central bank has to print money and keep interest rates low so that economy could grow again and remain growing to remain ahead of others. Since dollar is a reserve currency, additional printing will discourage nations hoarding dollars and reduce their purchasing power hence the reduced wealth of these nations means that US remains a dominant force. Well this seems a pretty good conspiracy theory.

Why hasn’t it decreased? Well I don’t know. Perhaps any sudden mop up of money will cause a slump in the economy. I guess it is a one way thing. Perhaps government has to regularly pay interest. If you have only $100 in a system and some one borrows it for 10%, where will you get that 10% if you don’t print?

So what happens to the regular average-Joe? How does it affect his life? Well for starters influx of money causes price of commodities to rise. Below is the CPI index (not growth as commonly discussed) since 1913.

Note that it increases with the rise in currency in circulation.

Oh boy! Alright so my income will increase with the supply of money too, right? Well seems so, if you have made the right career moves or in the right industry.

So why should I bother if my income increases counter CPI increases? Well here is the problem.

Even though you have a regular income stream, there are people who save up for a rainy day and there are those who don’t.

The black-hole of poverty.

The present system appears to benefit those who have incomes par with currency increases. So people who remain unemployed or cannot get employed will remain at a disadvantage since every day (metaphor) means increases in costs of living without ample income.

It also is a disadvantage to those who store their money under their pillows, in current accounts, and to some extent savings accounts. Increases in currency reduce the purchasing power of that money. Means that yesterday you saved $1 under your pillow and you could afford $1 loaf of bread. Since the price of a loaf of bread today is $1.03, now you no longer afford it any more. Tomorrow it will be $1.061 and you will remain hungry since you cannot purchase it. Next day, you are really hungry and punch yourself for not investing it in a “inflation protected security” (huh?) but now you are really hungry so you get hold of a bat and cover your face and head to a local grocery to exchange bread for a little violence. Either that or you chose to head for the streets for alms.

Asset Prices and Currency

For those of you who invest (in your brains or some other commodity) they remain protected from the devaluation in their purchasing power however the unfortunate who don’t will suffer and continue to suffer. It comes as no surprise that rich poor gap has widened.

Well, those of you who have invested in the right commodities will remain protected. Since the supply of these commodities is not in the hands of humans. Hence any rise in currency from the printing press will lead to higher commodity prices. Following is the graph of gold do compare it with the currency in circulation.

Last word before I run off for Iftari

The continuous quest for this worthless paper money is perpetual if right decisions are not taken. The government will print money because if it spends more than it earns. You cannot make ends meet if you don’t have sufficient income cover unless you make money out of thin air. More printing means the money you have worked hard to save loses value.

Rich and risk takers will remain protected as their wealth generates enough interest to save their rears. So their wealth keeps growing or remains at the same purchasing power level.

The average, risk averse will ultimately lose out, since supply of similar skilled labor at the bottom is greater and hence chances for salary increases remain slim. That is why you see people who seem otherwise well-to-do outside the gates of mosques. Each day brings lots of unemployed people under the poverty line.

That is the beauty of this system, this system of cut-throat competition and excessive greed.

Iblees Kee Majlis-E-Shura 2of2

Iblees Kee Majlis-E-Shura