Internet of Things

IOT or internet of things, is artificial intelligence in other words. Artificial intelligence is when machines have been taught to an extent that they can communicate with each other and have a conscience. The reason why I am so excited about this blog post is that IOT is here. Have you ever wondered why google would buy a thermostat company for 3.2 billion dollars? Why Modi Ji truly wants Start up, Stand up India? What is a smart city? Why do we need to shift from IPv4 to IPv6? Here are answers to these and many many more questions.

 

There is a massive change in power consumption when you use your air conditioners at 22 degrees, 20 degrees, 18 degrees and 16 degrees. Imagine if 18 degrees is your air conditioners temperature at night and it rains. It keeps on raining till outside temperature drops to 20 degrees which is quite comfortable. The AC will keep on running and it will keep eating electricity. What would happen if it was connected to the internet? It would get weather updates and it would automatically switch to fan mode. Imagine millions of such AC’s. Your energy crises is solved. The miracles IOT can perform are endless. Grids and power cuts will be history. You won’t have to stand in check out lines after shopping just walk out and the scanners would automatically prepare a bill mail it to you and take money from your account. Your car would hardly see a red traffic light. It would automatically take routes with less traffic and more green lights. Everything will talk to everything.

 

A proof of the coming of IOT is moving from IPv4 to IPv6. Many may think IPv4 has exhausted hence we are moving to IPv6. IPv4 provided 2 to the power 32 that is 4 billion IP addresses IPv6 provided 2 to the power 128 IP addresses so do you think there are going to be these many phones and laptops connected to the internet at one time.

 

Google has realized IOT is coming. It has bought NEST for 3.2 billion dollars. Clearly it wants to enter the physical world. But why? Google earns money by selling our information. If you want a proof, then go search for any specific product on amazon using google. Go to Facebook and just spend some time there. After a while you will see ads of that product on Facebook. Google auctions your virtual information and earns billions imagine how much it can earn by selling your physical information. When IOT comes the RFID chips won’t just be installed in big machines it would be in your shoes, clothes, soap bottles, your pet and you!

 

Some of you must be thinking what about our privacy? When IOT comes believe it or not privacy will not exist. Lot will become mainstream and those who earn out of your data will never delete it. But your information is with google what harm would google do to you right? Wrong, google can affect your health with all that information. Imagine you have been visiting a doctor frequently while you are wearing google slippers or carrying a google phone. When you go to a health insurance company and say I am fit and I jog daily, they will just type in your name and get to know that you have heart problems and you take which pill and visit which doctor. You would have two options, either to pay heavy or to walk out.

 

It is predicted that when children will be born in 2030, they will be injected with RFID chips as soon as they are born. So have as many children as you want before that.

There are many theories that machines will take over, there would be huge humps of electronic waste, huge environmental problem, people will become IP addresses and machines will guide us but even though many of these theories may turn into a reality I personally believe every coin has two sides.

Pilferage, murders, terrorism will not be possible. Forest fires could be controlled; pollution levels could be managed and countless other things which are impossible to control today can be controlled. So there is no one way to look at this.

Now let’s see whether Modi Ji has anticipated the IOT wave. Fortunately, India is one of the very few countries who have realized that IOT is coming and it can’t be stopped. One of the reasons due to which Modi Ji started Startup India, Standup India was because the biggest companies of the future are going to be a part of IOT and Indians must have an opportunity. Even though the vision of our PM is remarkable it is bound to fail. This policy to give money to entrepreneurs is given in the hands of bureaucrats. They are going to destroy it. Not because they are stupid, well partially but because they are not entrepreneurs. They are going to make sure every entrepreneur who has taken money from them is on a leash but entrepreneurs break chains. That is what Schumpeter meant when he talked about creative destruction. Entrepreneurs make their own systems. You tell me that Steve Jobs, Bill Gates, Larry Page who all had dull personalities, weird ideas, who all started from a garage and most importantly weren’t sons of chief ministers would get a donation. They would surely not. Today these bureaucrats use Gmail completely unaware of the fact that Larry Page has all rights to read and save their mails. Many of us may think that they are very smart when they use smart phones but no they are dumb, the one who made the phone is smart, the ones who make the apps are smart. Technology is very alluring but stay as away from it as possible because nothing is free.what-darwins-theory-of-evolution-reveals-about-artificial-intelligence-e1341273934114-638x360.png

Stalin

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Before reading the novel, “Great dictators” I thought that nothing would serve as an excuse for putting millions of innocent people to death but some feelings concentrated in the human gut force us to push limits, both in a positive and negative sense. It is only on our death bed that we realize whether whatever we did in life was right or wrong. So here is the summary, Stalin’s real name was Iosif Vissarionovich Dzhugashvili (clearly such a name would never fit in an asset OMR sheet, hence the name Stalin maybe).

While he was a child he saw Lenin grow to power and saw the birth of Bolsheviks. He was absolutely against the Tsar’s policies. He gave up religion and became an atheist like me, with a sole goal of making USSR a communist state where all men live equally, unlike me. A few months after he met Lenin, he was exiled for life. But he was lucky because the government which put him there was overthrown. Of course he had escaped a few prisons and camps here and there before but this time even he had lost all hope of ever getting out of the camp. Stalin had an outstanding memory and with the help of Lenin he made it to the top level of government. But he got luckier Lenin got shot. He took advantage of this situation and did something which changed his and millions of other peoples lives forever. He told his only competitor in the government a false date of Lenin’s funeral. As his competitor didn’t appear on the funeral he became very unpopular in the party. Lenin was the one who gave Iosif Vissarionovich Dzhugashvili the name Stalin but Stalin was the one who benefited from Lenin’s death the most. I heard somewhere, “What do men with power want? More power!” this line is definitely true for Stalin after Lenin’s death. He led the country with two more people but decided to dump them for two smarter people. But then he got bored of those two and thought of dumping them and running the government alone. Stalin became the worlds most powerful man and apparently a man with a bright future in real estate with over 22.4 million square km of land under his rule. He punished all those who didn’t accept to give their land and property to the state and he sent the defaulters entire families to the worst concentration camps of USSR. He reduced food supply to an extent that death was certain if sent to any concentration camp. The population was starving and in such a condition he passed a law to punish those who stole food. He neither spared children nor women. If someone stole a handful of something like wheat, he or she was exiled to camps with no food and no warmth.

He went on war with Germany which was under Hitler at that time. He killed the army generals, his partners in old government and was shocked when millions in his red army died. He ultimately won the war because German soldiers couldn’t bear the -90 degree Fahrenheit temperature of northern USSR but all said then or were forced to say then, “We are alive due to Stalin.” His marriage life was not any different than his public life ‘dull’. His second wife committed suicide after an argument with him in a party, after this incident he lost interest in family.  When his son shot himself and didn’t die he said, “you couldn’t even do this properly.” His son was captured by Hitler’s army but Stalin never bothered to try to negotiate for his son. Stalin became a heavy smoker but was not much of a drinker. He was living in Kremlin when he died. When he didn’t come out of his room for 2 days and gave no order for food a worried servant entered his room. He found him in a pool of urine. The doctors helped him on the third day, they claimed he was extremely drunk and saving him is not possible. According to his daughter,” watching him die was painful!” After I read the novel I couldn’t help but conclude that he tried to push the communist idea so hard that he killed millions trying and killed himself trying because only a fool would believe he was not poisoned. It is weird that almost all cruel dictators have some things in common. Many were married more than once because their wives killed themselves. Many did crazy things like pretending they were talking to someone else and in case of many dictators, those who told others the vulgar things that the dictators did, disappeared. I personally think that cruel dictators were influential, crazy people who could go to any extent to get what they want. In modern day according to me we call such people terrorists.

There is no specific conclusion to this blog but it truly disturbs me when I think of the agony people have suffered for thousands of years due to bad rulers. We are truly fortunate to live in a country like India where you can say anything, eat anything, believe in anything, learn anything (well almost anything) and no one cares, at least the government doesn’t.Screen Shot 2016-01-06 at 2.23.26 PM

India and Global Economy

“The implementation of the pay commission proposals and its effect on wages and rent, will also be a factor in Reserve banks future deliberation, though its direct effect on aggregate demand is likely to be offset by appropriate budgetary tightening as the government stays on the fiscal consolidation path.” Clearly RBI hires people on their ability to prevent using a full stop. Understanding the present situation is not easy. So here are some of my observation and notes which will help all of you to understand the past, present and future scenario.

In 2009 USAs recession ended, till then emerging economies had supported the world economy and given hope for a brighter future. Today all emerging economies are in a sad condition specially BRICs. Russia and Brazil have a negative growth rate. Let me explain how devastating this situation is. Everyone wants higher standards of living every year. You expect a new car or phone each year. You don’t aim to sell your house and live with Tarzan in a jungle, you crave for more each year. So if the GDP is a circle then the radius increases to absorb the effects of high standards of living. If radius decreases, as in the case of Greece then the situation becomes disastrous. But as of 2016 the Greece bomb has been diffused by EU. So the European economic domino effect is prevented as of now. Now the leaders of EU can finally go to dominoes without any tension.

Today China has a forex reserve of $3.5 trillion. This is both advantageous and disadvantageous. China now has the ability to play games (If you understand what I mean). But the disadvantage is that the money has to be invested. China has no choice but to invest in USA as it is the safest market. Xi Jinping should give his wife some time too because as we just saw money can’t buy him happiness.

 

Now let us look at some statistical data.

Global Economic Power Share

Year              1st position                                          2nd position                                        3rd position
1870             United Kingdom-16.7%                    Germany-9%                                     France-8.3%
1973             United States of America-18.6%     Japan-8%                                          Germany-8%
2010             United States of America-13.3%     China-12.3%                                     Japan-6.9%
2030             China-18%                                           USA-10.1%                                       India-6.3%

But don’t look at it plain vanilla, if you look at the future in terms of per capita income then India is in the bottom 15 not the top 3.

GDP(PPP)- $8 trillion (#3)

PCI(PPP)-$6209(#124)

Shocking? Well Indian economy will bloom but Indian PCI will not grow no matter what one does. It is a very sad fact but it is true. Things may change after 2060 because then the fertility rate is expected to drop. So the prognosis is situation will improve as apposed to the diagnosis.

As far the RBI is concerned Mr. Raghuram Rajan is managing the RBI well. It is obviously wrong for us Indians to blame RBI for all negative things happening in India. The government is to be blamed equally. As in the case of increasing income for more than 10 lakh government workers.

The biggest challenge in India and globally has always been to translate GDP growth numbers to ground level. This statement is just food for thought tell me in how many ways could you interpret it in the comments section.