Oil vs Rice

Most families tend to undercount the number of members in it. Always add a '+1' or '+2' to the count. Yea, you really got to include the vehicle that a family owns. Apart from the fact that it does not talk, it really does behave like a family member (or at least a pet, but again those are considered to be family members too unless you call a fish(s) a pet and the trail of thought doesn't hold true.. but then again, there are exceptions.....) really, it eats (oil), falls sick(hence visits to the mechanic), gets cranky if ignored (refuses to start when you really want it to), breathes (yea air, combustion requires O2!) and also repro... what the hell .. this isn't what the entry is supposed to be about anyway......

Here's how it was originally supposed to be:

I have for some time been aware that many companies tend to 'google' prospective employees and look into their social networking profiles and blogs to see if the person they plan on recruiting is officially a psycho or not. They also want an impression as to whether the candidate is serious about the subject or not. Thus, on further investigation I have grown to discover a community of fakers who seem to have loads of 'fun' posting technical articles on their blog to impress their respective employers.............

But I actually have fun thinking about such stuff. Yes economics rox... what the hell .. this isn't what the entry is supposed to be about anyway......

Here's how it was really originally supposed to be:

Oil - The black gold that is suffocating the world today, because some countries (under the expert advice of powerful companies such as Goldman Sach's and others) are investing in oil futures because they are supposedly paranoid about future oil prices although in late '07 and v.early '08 supply >> demand.

Oil futures are basically deals between participatory entities that in the 'future' a seller of oil would sell a certain amount to oil to the buyer at an agreed price IRRESPECTIVE of the prevailing price at the time of exercising of the futures contract. This usually happens when there is a lack of confidence in the ability to predict prices of commodities in the futures. Can't explain more over here... http://en.wikipedia.org/wiki/Futures_contract

Oh, btw this isn't what the entry is supposed to be about anyway...... nah just kidding......

Anyway, excess speculation in these futures market caused demand >> supply of oil. This pushed oil prices upward as the oil producers can demand more prices for the increasingly scarcer commodity.. Oil. Now, what did the Indian govt do to counter the rising prices? It allowed oil companies to purchase oil from the international markets at the prevailing rate and sell it to the end buyer (ie you and me). But before that the govt gave subsidies, so that the end buyer (ie you and me) would be able to afford the high priced oil. (The govt did provide for the subsidy using yours and my tax money, so technically we ARE pauying the real price, but thats a question for later..).

Now lets take a look at


What did the govt do when rice prices all over the world soared?? They freakin banned exports!!! They forced the farmers to sell rice to the govt at rates less than the international prices and gave to the end user (ie you and me) at a lower rate. But who is the end loser here... its the poor farmers!! The so called 'aam admi' that politicians so favour....

Why not carry over the same policy as with oil into the agricultural sector??

If farmers are allowed to export the rice, the domestic players would have to compete with international bidders for Indian rice. This would push prices in the domestic market upwards due to which the govt have to step and subsidize the rice by buying from the farmer and providing to the common man(ie you and me) at subsidized rates. (Finally a way for farmers to become rich as they receive international rates for their produce, but that's not what the govt wants is it? For them it is in their interest to keep the vote bank poor so that they can continue with their fake promises!!).

The losers of the current agricultural policy are the farmers. The real gainers of the current policy on oil are the oil companies and other foreign investors.

Lol @ democracy

Btw, there are many other angles from which the problem can be looked to give an almost contradictory view, but in economics the truth can never be ascertained with a 100% accuracy can it? Do you see the newspapers/news channels successfully predict market crashes???

Wateva, my first semi technical entry.. Yay!!