Tuesday, May 29, 2012

Help needed on Special Theory of Relativity

So I understand the basic premise on which Special Theory of Relativity hinges:
1. Speed of Light is the same no matter from what frame of reference it is measured. So a guy inside a moving train measures it at 300,000 Km/s as much as a guy standing still at the railway station
2. There is no experimental setup that can prove one object to be stationary and the other one to be moving. In other words, there is no preferred constant speed. It can always be argued that object A is stationary and another object B is moving at 5 Km/Hr as much as it can be argued that object B is stationary while A is moving at 5 Km/Hr in opposite direction.



These two postulates throw up a set of equations we collectively refer to as Special Theory of Relativity. One of these equations explains time dilation:
T' = T * SQRT(1 - v^2/c^2)
where, T is time at rest, v is the speed at which the object is moving and c is the speed of light. T' is the speed of light while the object is moving at speed v.

Here's the problem that I have not yet been able to comprehend:
Assuming two brothers A and B were at railway station. At exactly 3PM, B boards a train that travels at 99% the speed of light only to return back after 2 seconds according to B's watch while A is still at the railway station. The way I have been told how theory of relativity will manifest itself is:

Once B is back to the station and the two brothers check the time on their respective watches, B sees that it has been 2 seconds past 3 PM while for A, the time is about 10 seconds past 3 PM (T' in above equation is B's time and T is A's). Apparently for B, time slowed down. Turning this problem around, can it not be argued that B and the train were stationary and that it was A who traveled at 98% the speed of light in the opposite direction? In that case one would infer that the time slowed down for A and not B. If the example is correct then it appears that Special Theory of Relativity is contradicting itself and that indeed there is a preferred frame of reference and A is to be treated at speed 0 only and B is to be treated as the one that is moving.

I am sure I am missing something. Can someone please help me as to what is going wrong here?

Sunday, May 27, 2012

Plight of Indian Rupee

It does not take too much of an analysis to conclude that the assets in India, especially the real estate were grossly overpriced. However, here's some analysis to prove the point.

In order to buy a humble 2-bedroom abode with small sized rooms, one has to shell out Rs. 10-15 million in the suburbs of Mumbai. The closer you go to the city, the price goes up even further. This in a city with miserable infrastructure, connectivity and chaotic quality of life. It takes just a breakdown in the railway signalling system to bring the entire city to a stand-still! When the rupee was priced at 45 to a dollar, this humble abode translated to approximately USD 225,000 to USD 335,000. For that kind of money, you could have bought a palace in a city in US with much better connectivity, infrastructure and a peaceful quality of life. The facilities like free county library, public parks, etc come as a bonus.

Something had to correct to right-size the real estate in India. Now the rupee is undergoing a sharp devaluation.  At Rs 55 to a dollar, how does the same apartment price in dollar terms? It now comes for a price tag of about $180,000 to $270,000. Still expensive but we are getting there - where we belong. A complete right-sizing is yet to happen. It can take shape in either of the three ways - A bloodbath in the real estate market, an even sharper devaluation of Indian Rupee or both.

Saturday, May 26, 2012

Fuel Price Hikes

What causes the Indian middle-class to rant on the Facebook and Twitter against the Indian Government? Yet another fuel price hike. So when the government announced a steep Rs. 7 hike in petrol prices, the Facebook is flooded with cartoons and humourous one-liners to express the cynicism against this move by the government.

(Image courtesy www.LifeSnap.in)

This creates a picture of a frustrated middle-class that is finding it impossible to make its ends meet. Assuming this picture to be correct, it makes me wonder:
  • Who are the people I see every single evening sipping a lavish coffee at Barrista's or Cafe Coffee Day? I hear even Starbucks and Dunkin Donuts are planning their entry into Indian markets. Surely, they are tapping a market large enough to accommodate all of these players. Their market definitely can not constitute just the rich and the affluent.
  • Every single friday, at least two or three new trashy bollywood movies are released into the multiplexes that charge tickets no less than Rs200 per head. The trashiest of Salman Khan movies are a block-buster hit. Who are the people  flooding the cinema halls despite the steep inflation?
  • The list is endless - malls abuzz with people buying things ranging from the bare essentials to the lavish perfumes and ray-bans, cars choking up the city roads, rickshaws getting so many long distance passengers that they refuse to ply shorter distance passengers.
I am sure there is a vast majority of Indians who are terribly impacted by fuel price inflation but I doubt if the people venting their anger in Facebook and Twitter are amongst them. 

One statistic that is often played out is the fact that petrol prices in India are much higher than in other countries. This is true. Price of petrol (gas) in US is $4 per gallon that translates roughly to  Rs.58 per liter. But consider also the fact that diesel in US also is about $4 per gallon (Rs.58 per liter). The diesel prices in India are Rs. 46 per liter. Kerosene in US costs about Rs.42 a liter. The heavily subsidized kerosene comes at Rs.13. It is these and many other subsidies that the government has to fund in some way or the other. 


Instead of fuming and fretting over the petrol price hikes, I suggest these people to pressurize the local municipalities to do the following:

  • Create a better infrastructure of public transportation. There were lot many BEST routes and much better frequency of buses once upon a time in Mumbai. Slowly a lot many of these routes have been closed down and the frequency reduced. I smell nexus between auto companies and governments behind this!
  • Short distances need to be traversed either by walk or bicycles. Ask the municipality to create more sidewalks and make them exclusively available only for pedestrians and not to be shared with hawkers. Encourage people to use bicycles by providing exclusive bicycle lanes and stands for parking cycles.
Crude oil and its products are a finite commodity and the prices to some extent reflect the fact that the commodity is getting rarer by the day. Accordingly, it needs to be used more prudently. Also, the inflation signals the fact that more money is being spent rather than saved and invested. If the voracious appetite for consumption by middle-class comes down, automatically the inflation will fall.