What is Gold standard and why we may never return to it?

Gold has been a currency, medium of exchange and savings option for  thousands of years. Throughout the world and especially in ancient India, Kings stored most of their wealth in the form of gold. Even now, we hear lot of stories about  tons of gold stored in  treasures beneath in many Temples.

When trading and economic activities increased, gold as a currency of exchange was not able to sustain the huge amount of transactions.  So paper currency was invented to replace the gold as a medium of exchange.

Now paper money is the common denominator of all economic transactions. Based on this paper money, the present banking system was developed and as a logical extension to banking, credit system was developed. The use of gold in the old banking system was through fixing the unit of currency reference to gold.

A country on the gold standard cannot increase the amount of money in circulation without also increasing its gold reserves. Otherwise, the exchange rate between gold and the currency has to be fixed on regular basis which will result in huge fluctuation in the price of gold. Public usually deposit gold with the banks and credit was extended relative to amount of gold deposit. It was argued then, the gold standard was the main reason for the Great Depression during 1930's. Later U.S abandoned the gold standard in 1933, and completely decoupled the link between dollar and gold in 1971.

Now and then, the return of gold standard is being discussed and recently during the 2008 financial crisis, revival of the gold standard was extensively discussed. It is argued that it is impossible. Why revival of gold standard is very unlikely?

Main reason is the size and complexity of the world economy. Just to back the paper currencies in circulation in the entire world, each country has to evaluate their gold reserves and fix its price based on money in circulations. For example, in case of major economy like U.S, with the approximately 261 million ounces of gold held by the U.S. government and about $2.7 trillion money in circulation, gold price has to rise to around $10,000 an ounce, up from about $1,241 as on today. Inflation will go out of control and the world economy will go into a tailspin.

The performance of the world economy will be purely depended on gold supplies. If there is a production related problem and new supply is stopped, economies will come to a halt. How to manage such a situation?

Unlike oil, gold has not much of an economic value, except jewelry. It can't power automobiles and generate electricity. Holding world economy, hostage to such a commodity and its availability, is asking for disaster.

Who will win FIFA world cup 2014, a prediction

Now, the FIFA football tournament has reached semi final stages. It is Germany vs. Brazil, the host of this most biggest and popular sports event and  Netherlands vs. Argentina. It is almost a month and we witnessed some of the best football moments. Except few Asian and African teams, all other matches were very close to predict and distinct feature of this tournament.

Even now, no team can be considered as certain favorite though many predict local team Brazil or Argentina to be the winner. Group matches were very close except the Netherlands vs. Spain, which Netherlands won convincing 5 - 1. Brazil struggled a lot before reaching the semi finals and definitely not a favorite to win the cup.

Another one point to note is that, lot of foul plays ignored by referees. Many injuries to players, even Brazilian striker Neymar is out of the tournament as of now. In such a situation, it is not easy to predict a winner. I have analyzed the four team's strengths and weaknesses  below, followed by my prediction on the winners.

Germany:

[su_table]

Strengths	Weaknesses
1. Strong defense	1. No star player
2. Best goalkeeper	2. Too depends on single striker technique
3. Well balanced side	3. Players lack pace
4. Tall players, yes very useful	4. More dependence on defense
5. No injuries	5. Best team not always win, not many world cup wins

[/su_table]

Brazil:

[su_table]

Strengths	Weaknesses
1. Favorite local conditions	1. Injuries
2. Young squad	2. No Neymar, a big disadvantage
3. Unique attacking style	3. less experienced players
4. Creative approach	4. Lot of fouls committed during group matches
5. Experienced coach	5. Pressure as favorites

[/su_table]

 Netherlands:

[su_table]

Strengths	Weaknesses
1. Experienced players	1. Performs poor under pressure
2. Team spirit is high	2. Lack of formidable strikers or no superstars
3. Strong offense	3. Comparatively weak defense
4. Never won a world cup, so eager to win	4. Unpredictable performance
5. Underdog, so less pressure	5. 5-3-2 formation risk

[/su_table]

 Argentina:

[su_table]

Strengths	Weaknesses
1. Messi and famous four	1. 1. Poor defense
2. Strongest attack	2. Fitness of Di Maria
3. Local conditions	3. Not a balanced side
4. Underdog, so less pressure	4. Messi performance at international matches
5. Coach tactics	5. Underachievement record

[/su_table]

I predict that Germany will defeat Brazil on the first semi final on Tomorrow, 8th of July.  On the second semi final on 09th of July, Argentina will beat Netherlands. In the play-off for the third place, Netherlands will beat Brazil.

In the final on Sunday, 13th of July, Germany will defeat Argentina. Yes, Germany will be the champion.

Kamaraj's birthday today, the king maker of 60's

Kamaraj was a congress leader of independence movement, based in Tamil Nadu. He was a king maker of 60's  influenced in the selection of  Lal Bahadur Shastri and Indira Gandhi. He was the chief minister during 1953 - 64. He was remembered for his simplicity and transforming the then Madras state into one of the leading state in education and literacy, trade and industry.

He brought school education to millions through free education, introduced mid day meal scheme for the first time in the country.  No village remained without a primary school and no panchayat without a high school. Huge investments in irrigation were initiated, dams built and large scale industrialization efforts were implemented. What he achieved with a cabinet of just eight ministers,  no Government ever achieved his performances in the country.

 

Below, I add some interesting facts about the great leader.

He was a bachelor throughout his life and considered family life as a road block to his service. Once his mother was requesting  to arrange 3000 rupees to buy a land near her small house, he categorically told her to  manage within her 120 rupees monthly allowance.  Another time a special water line provided to his house in the native town, when he was in Delhi, to help his old mother. He noticed it on his next visit and immediately chastised the local body for the priority given to his house while there were similar old women in many houses.

In 1949 when he was addressing a meeting at Friday there was a bustle in the meeting and the opposite threw tiny grade type crackers towards the stage. Then Kamaraj opened his shirt and showed his chest to them and challenged to shoot him if they have courage.

During 1927, Nehru came to Madras and was staying at the residence of a congress party leader. During the night, a loud noise disturbing his sleep.  Unable to sleep, Nehru went out to check the sound coming from the veranda of the house.  He saw a youth sleeping with heavy snore.  Nehru got angry. He asked the party leader to to drive the lad out of Madras or to shift his bed to the near by beach. Who was this youth? It was Kamaraj.

On his birth day, let us remember his golden days.

Magical Journey through Ooty - Masinagudi - Mudumalai

The original plan was to visit Mudumalai and Bandipur Tiger reserves. Travel through Masinagudi ghat road via Ooty from Coimbatore, stay in a Masinagudi resort and visit Mudumalai and Bandipur Tiger reserves. Masinagudi is a green valley at the foot of Nilgris, surrounded by beautiful hills of Nilgris and is adjacent to both reserves. This stretch is the best place to see wildlife and experience best of Flora and Fauna of Western Ghats.

Preparing to leave Coimbatore

16th Aug:

  we planned to visit during the third week of     August. Being one of the busiest periods due to Independence day holiday, booking took  some time and through a local contact, we booked a resort at Masinagudi.

17th Aug, 7.30A.M:

 We hired a Chevrolet Tavera from Coimbatore. Myself, wife, two daughters and two of my wife's charming friends left Coimbatore and had breakfast at Anatha's, Periyanaickenpalayam.

On the way to Ooty, we were totally flabbergasted by the beauty of nature. It is just after a heavy monsoon, mountain streams pass through spectacular rocks and boulders covered with dense undergrowth, mountain breeze roll through thick cloud of trees, amazing. 




On the way to Ooty

 
After an over-night rain, entire forest stretch to Ooty was swarmed by flying-termites ('eesal' in Tamil).  it was tough to drive among monkeys making acrobatic sorties snapping them up.



Monkeys occupy the Ooty road in large numbers

 12.30 P.M

We didn’t stop at Ooty. We drove down hill through Sigur Ghat road part of Ooty-Masinagudi route, which is about 14km with 36 hair pin bends. This route is very narrow, through thick jungles and at some places you have to get off to the edge to let opposite traffic pass. Drive through this road is itself a thrilling experience. The driver told us that he used to see lot of wildlife in the 15km stretch of plains (forest on the both sides) just after this ghat road towards Masinagudi. It was noon and we didn’t see any animal activity.



Narrow Ooty - Masinagudi road



Masinagudi plains

Reached Masinagudi village and just before the main village  street had to leave the main road, go via a mud road with few river crossings for about two kilometers to reach the resort. There was a thrilling experience on this road in evening which I would share later in the blog.   

01.00 P.M

 Reached the resort. The resort is a new one with basic facilities.  Had lunch at the resort overlooking the majestic hills covered with lush green forest. It was Chapathi, veg kurma, tomato rice and curd rice. Followed by a short nap, we were ready for an exciting safari trip to Maravakandy and Moyar dams. 

Resort entrance

 05.00 P.M

It was late evening and absolutely little traffic on Maravakandy and Moyar dam road. This road is an important part of an elephant corridor and a frequently used one too. Perfect chance to sight wildlife. Till Maravakandy dam the road pass through tiny villages and not much of wildlife. Past Marvakandy dam, both sides of the road are covered with scrubby trees and bushes and is an extension of Mudumalai tiger reserve. We drove slowed looking for any wildlife. Just a kilometer on the road, the driver whispered “Bison”. A lone wild bison was gracing very close to the road.

 

06.00 P.M

Reached Moyar Forebay Dam. Down stream of this point Moyar hydro-electric power house of TNEB is situated. After a brief photo shoot, we returned in the same route to go to Singara Power Station.  



Moyar Dam

07.00 P.M

When we finally reached the Pykara Power station, Singara (one of oldest power station in Tamil Nadu) it was getting dark. In this route too, the chances of sighting of wild animals like Elephants, leopards are high.




late evening is very risky time of the day to encounter them. Insects are very active when it is getting dark, wild animals come near to the road to avoid the bites. We noticed a group of 2 wild elephants standing very near to the road while returning from the power station.

 As I wrote before, we were lucky to escape a charging elephant. On our return to the resort, just after the Masinagudi village we turned to a dirt road away from the main road. We just crossed a small water stream and there was bushy bamboo on the ride side of the road. Suddenly we heard a huge noise. Oh! it unmistakably loud  elephant trumpet. Single elephant was standing a few feet away from the road. We didn't notice it. Driver and my daughter sitting on the right could see it trying to attack the vehicle. so scary. Don't under estimate the wild elephant risk at Masinagudi. While I was writing this blog, a British man was killed near this place. This Link has that story. The resort guys told us that leopards are regularly seen on that spot.

 08.00 P.M

Retuned to the resort. Finished our supper, a nice end to a great day out.

  18th Aug (Day 2): 

06.30A.M

We left the resort very early to visit Mudumalai Tiger reserve. It is about 9km drive and our mesmerizing journey thro raw nature one again? 

 07.00A.M

Initially we drove through the Mudumalai - Bandipur road and witnessed plenty of wild life just after Mudumalai reception center,  also called Theppakadu. 

 



A lone Elephant crossing the Mudumalai - Bandipur road

 

Spotted Deer at Mudumalai - Bandipur road

 



the lone tusker after road crossing

07.30A.M

After a drive for a few kilometers,we decided to take the bus safari arranged by Mudumalai Tiger reserve. Our driver was discouraging us to take the ride. well, he was right. The buses make such a horrible noise that it will drive away any animals nearby.  



Government bus safari

Nonetheless, the trip inside the reserve forest offers a beautiful view of the Flora and breathtaking view of a water fall especially in the middle of a thick jungle. 



Government safari trip inside reserve forest

 

Water Fall inside the reserve forest

luckily we saw a pair of elephants in the safari and bigger one made a mock charge. The safari bus driver put out his hand and it stopped right there! 

09.00A.M

  we had our breakfast at Tamilnadu Tourism hotels at Thepakadu.  



Lion Tailed Monkeys at Thepakadu in front of Tamilnadu Tourism hotels

 09.30A.M  

 Not satisfied with bus safari, we decided to  drive down up to Bandipur check post. This stretch looks to be more frequented by animals. While we continued on our way towards the Bandipur, a herd of the three elephants with a calf was standing few meters away from the road. We drove slowly and suddenly a female trying to be belligerent made a mock charge. 

A female elephant of a herd mocking us

We left the place immediately and while we return from the Bandipur check point, the herd crossed the road and was seen moving away. 

  11.30A.M  

Returned to the resort. Followed by short rest, we made small trek behind the resort in to the plains of near by mountain and witnessed lot of flora and fauna.

12.15 P.M

 

 Vacated the resort and proceeded to Pykara water falls on the way to Ooty. This time it was uphill thro Masinagudi Ghat road, as thrilling as down hill.

 

 02.00 P.M

 

Reached the Pykara falls. The best way to get amazing views of the waterfall is to walk down till the end. Now they charge a small entrance fee and access to the river is restricted. Be careful of the monkeys on the way though and also the support barriers put up at the edges are not strong.

  03.30 P.M

 

We reached Ooty town for lunch on the way to Coimbatore. There are plenty of options as far as restaurants are concerned, but Ooty is not the best place to get good food? Any way we had our lunch at a decent restaurant and bit expensive it seems to me. Soon we headed to Mettupalayam.

 

05.30 P.M

 

 Finally we reached the foot hills of Nilgiris mountains and quickly passed through Bhavani river bank to reach Mettupalayam. Had a wonderful Kumbakonam coffee at a high way coffee shop at Karamadai.

 

06.30 P.M

 

After dropping friends and we reached the home at 06.45 P.M. It was lovely and memorable two day travel through  evergreen western Ghats.

 

“The world is a book and those who do not travel read only one page.” – St. Augustine

 

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I started this blog to express my thoughts on any thing under Sun. I love sports, Investment topics, nature, trekking and wild life conservation.