GHINSBERG TIMES - What's the deal with the Monetary Market?
Day 1,179, 01:28
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Published in Sweden 
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by
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by Yossi Ghinsberg
We all remember the currency crash a while ago. USD plunged from 0.02 all the way down to 0.011 (click currency to se old graph), and we saw similar movements in almost every other major currency. Even the most stable like PLN, ESP and BRL fell like rocks. After the initial panic caused by the fear of Work as Manager effect most currencies recovered, some of their losses.
Below you can sen some fresh graphs, notice the difference in price compared to the old ones.
Now we're seeing the third move, down, recover and now down once again. It’s also pretty much impossible to sell currency. but I will come back to this after some discussion about the underlying matter. The problem, as I have explained before is the following.
Citizens buy Companies and in order to supply themselves, If they buy a couple of Weapon, Food, Iron and Grain companies and work in them all they are self-sustainable. On top of this, they get work skill points for every company they work in, so they’re increasing their production in a rapid pace.
In the long run, as more and more people become self-sustainable, and production rises (more companies*work skill increace), there will be no or very little demand to match the rising supply. And with no demand for products there will be no demand of workers and/or currency to pay them with.
So you get the picture. Currency is still used in some sense to buy products, since every player aren’t yet self-sustainable. But producing for free is always the best option, so that’s the direction we are heading for. Tough there is a chance Plato will work the currency problem in some way the new rule of buying a land lot for 1,000 local currency reduces the money supply. Though this alone will do little good, since It’s a one-time fee.
To me, it’s clear the direction of the game is changed, from multi player economic simulator to a more single player oriented. Personally, I don’t like it, but that’s not very important. The topic of this article is what is happening, and why.
So yeah, I guess you’re waiting for my answers. Well, as always – Plato rules the eWorld and he is very tough to forecast. So I’ll refrain from any kind of guess. What is for sure tough, is that very much of the social structures will have to change. And as always, the one fastest to adapt will be the winner.
GHINSBERG GROUP
Products market isn’t all dead yet so we’ve managed to secure some profits, tough in terms of gold they are modest because of the late currency depreciation. Tough do not worry that we will disapear with this change. I’m working on a plan that would still be very beneficial for shareholders in case of total market collapse.
Best Regards
Yossi Ghinsberg
Ghinsberg Group
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Comments
Plato, Plato, Plato... and to think we could've been friends.
In the long-term that would mean a collapse of the market as we know it, and the removal of the economy as a whole. It's a development towards communism, but I don't think the admins will make it permanent.
Well, the problem is that government will have no tax-income (assuming current development) as there will be no need for labour or sales through market (that is taxed). If there is no labour or state income, there is no way for a citizen to move from unemployed to company owner. He can not earn money by working to buy a company nor can the state give any subventions.
Tough this is everything taken to it's extreme. And as you say, admins will offset some of the effects - but i believe we're going to a economy where less products are traded over the market and much more single player.
If it winds down the harsh road, ppl will have to buy companies (admins make money) and more single-player style will reduce the communities outside of the game. Both which sounds in style with what the creators would like.
Intresstingly enough about half the bids at 0.011 are just filler-bids, about 6-7SEK or less and the majority of them are from non-swedish players and companies.
Let the conspiracy theories begin.
NNOOOOO!!!! why Plato why.... 🙁
Actually the government WILL have tax income. To eat the food I produce I must buy it from my bakery and pay 25% tax. Ditto when the bakery buy raw grain from the grain company. With the nr of companies growing steeply I doubt the missing income taxes (because I dont pay myself for working) will be enough to drive down the total tax income.
smart countries will make high vat taxes for weapons and food. Because those 2 companies are the only 'active' companies (and raws, but can't get VAT for raws). there are others still around like moving tickets and houses, but you can't open new ones of that type. So instead of collecting money from income tax (which might as well be set to 0% or 1%, and actually SHOULD be). (Because it can be evaded by those who work in their own company for 100%, if they want to take ven the extra time to do it, but it can't be evaded for 100% for the 'normal managers' which makes the rich even MORE rich, (including me). so it would be more fair and better for the country itself if the income taxes are as low as possible, while having the VAT higher.