Big Mac Index- (I am not an Economist noran economic expert- Full Disclosure!).
The Big Mac Index was first introduced by The Economist in 1986 as a light-hearted yet insightful way to assess currency valuations. It was created by comparing the prices of a Big Mac, a globally ubiquitous product, across different countries. Over the years, it has become a widely recognized and accessible tool for understanding relative currency values and purchasing power on a global scale. The index provides a unique perspective on exchange rates and has been updated regularly, making it a fascinating and enduring economic indicator.
The Big Mac Index also helps to measure the purchasing power parity (PPP) between different currencies. It does this by comparing the prices of a Big Mac hamburger in various countries. The idea is that a Big Mac should cost the same everywhere when converted to a common currency if exchange rates are in equilibrium. It's a quirky but effective way to gauge the relative value of currencies.
Data Points:-
Raw Value: This is the actual price of a Big Mac in different countries without any adjustments. It reflects the nominal exchange rates. Assume a Big Mac costs $5 in the USA and 200 rupees in India.
GDP Adjusted: The GDP-adjusted value takes into account the income levels of a country. It divides the raw price of a Big Mac by the country's GDP per capita. This provides a relative measure based on the economic output of the country.If the USA's GDP per capita is $60,000 and India's is $2,000, the GDP-adjusted values would be $5/$60,000 for the USA and 200/$2,000 for India.
Purchasing Power Parity (PPP): PPP adjusts the raw price of a Big Mac based on the local cost of living. It aims to equalize the purchasing power of different currencies, giving a more accurate reflection of the real value of money in each country. If the cost of living adjustment factor for India is 0.2, then the PPP-adjusted value for India would be 200 * 0.2.
- Data for 2024.... (India 55% Undervalued, China 39%) India one of the top 3 currency to undervalue. Exports works, Imports are expensive. My standard to compare cost of living always is 60% value to compare real US $ earnings.
Countries with Overvalued (Blue) and Undervalued (Red) Not exhaustive list.
++Zvi Zamir speaks at a memorial service marking 21 years since the assassination of prime minister Yitzhak Rabin, held at Mount Herzl cemetery in Jerusalem on November 4, 2016. (Yonatan Sindel/Flash90)
Remembering Zvi Zamir: A Life Dedicated to Israeli Security
Zvi Zamir, a towering figure in Israeli intelligence and a former director of Mossad, passed away peacefully this month at the age of 98. His life, spanning nearly a century, was one inextricably linked to the history and security of the nation.
A Life Forged in Conflict
Born in Poland in 1925, Zamir's formative years were marked by the turmoil of World War II. Immigrating to what was then British Mandate Palestine as a young boy, he found himself amidst the nascent Zionist movement striving for statehood. Joining the Palmach, the pre-state Jewish paramilitary force, he honed his skills as a soldier and strategist, participating in the 1948 Arab-Israeli War that birthed the nation of Israel.
Rising Through the Ranks
Zamir's natural leadership and unwavering commitment to Israel's security saw him rise rapidly through the ranks of the Israeli Defense Forces (IDF). He commanded the prestigious Southern Command, oversaw military operations during the Suez Crisis, and played a crucial role in shaping Israel's military doctrine.
Watching a training exercise: Eli Zeira, Yitzhak Rabin, Yitzhak Pundak Binyamin Jibli, Moshe Dayan and Zvi Zamir (Photo credit: IDF Archive/ Ministry of Defense/ photographer unspecified) Dayan Eye Patch early in his career??? I thought much later!!!!
Taking the Helm of Mossad
In 1968, Zamir's sharp intellect and proven leadership made him the ideal candidate to take the helm of Mossad, Israel's intelligence agency. His tenure, spanning six tumultuous years, coincided with some of the most defining moments in the nation's history.
Leading the Response to Munich
The 1972 Munich Olympics massacre, where Palestinian militants took Israeli athletes hostage and ultimately killed eleven, cast a long shadow over Zamir's time at Mossad. He spearheaded Operation Wrath of God, a daring and controversial covert operation to track down and eliminate those responsible for the attack.
A Looming War and Unheeded Warnings
Perhaps Zamir's most significant contribution came in the months leading up to the 1973 Yom Kippur War. His meticulous intelligence gathering and astute analysis led him to conclude that an Arab attack was imminent. However, his warnings went largely unheeded by military superiors, resulting in a devastating surprise attack on Israel on the holiest day of the Jewish calendar. “Those four words — tomorrow is a holiday — was the commander of the Mossad reporting that tomorrow would be war. Never had a more valuable piece of intelligence been conveyed from the field and yet, for a variety of reasons, it was not heeded in full — a failure that hounded Zamir for the rest of his days.
“It burned him up that he didn’t succeed in getting the Israeli government to try and counter the surprise attack by Egypt and Syria sooner,” Danny Yatom, who led the spy agency in the 1990s, told Army Radio Tuesday. "The Times of Israel"
Living Legacy
Zvi Zamir's legacy is one of quiet determination and unwavering dedication to Israel's security. He served at the forefront of some of the nation's most defining moments, his actions often shrouded in secrecy but their impact undeniable. Though details of many of his operations remain classified, his influence on Mossad and Israel's intelligence apparatus continues to be felt today.
Beyond the Classified Files
Beyond his professional achievements, Zamir was also a devoted family man and a lover of classical music. He authored a memoir, With Open Eyes, offering a rare glimpse into his life and the challenges he faced as head of Mossad.
Zvi Zamir's life is a testament to the sacrifices made by countless individuals in the pursuit of Israel's security. His story, though often veiled in secrecy, serves as a reminder of the unwavering commitment and quiet heroism that underpin the nation's existence.
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Disclosure: I am not an Indian cricket fan at all. So Naturally happy with the loss!
On the day Shamar Joseph made waves in the cricket world with his debut, another 24-year-old, Hartley, asserted England's prowess against India. Despite my anticipation of a 5-0 whitewash, considering India's inclination towards dustbowl pitches favoring early turns, England surprised by playing fearless, bold cricket, securing a commendable victory. During a chat with my cousin from the USA on the fifth day, I learned about India being 5 wickets down, (I never follow Indian cricket) prompting me to track the match periodically. Witnessing the fall of wickets on BCCI TV later revealed a lack of discipline among Indian batsmen, especially in handling line and turn. One can only imagine facing legends like Grame Swarn, Shane Warne, or Sunny Ramadheen.
Expecting a resilient comeback from India, the pitches should act as their 12th player, with match referees and umpires playing the roles of the 13th and 14th players, considering BCCI's influence (albeit veiled) and the questionable decisions by toothless/ spineless ICC. Losing would be a setback for Indian cricket, recalling instances like 1985 under David Gower and 2012 under Alistair Cook, where exceptional English performances impacted the outcome. This victory marks only the third time England has won after conceding a lead of 190, with the previous instances being in 1981 (Botham Ashes Headingly) and during the Victorian era.
Karthik, 30th Jan 24.
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