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Massive Inflation on the way
One effect of V1 that has not yet been experienced is the inflation caused by production companies having to increase their prices to cover the cost of the resources needed to product their products. Unfortunately these increases are going to be far more than people expect.
For example:Q1 Gifts currently cost about 1 ZAR. If gift requires 1 diamond to produce, with diamonds currently costing 4 ZAR the prices of gifts, once adjusted to replace resourse stocks, will have to increase by 4 ZAR. This is a MASSIVE price increase.
This increase can be delay by companies keeping their prices low until their raw material stocks start getting low. Eventually though prices will have to increase and with the changed wellness calculation it will make it very difficult for people to maintain current production levels, leading to even higher prices.
I fear eRepublik may be heading for a massive recession.
For example:Q1 Gifts currently cost about 1 ZAR. If gift requires 1 diamond to produce, with diamonds currently costing 4 ZAR the prices of gifts, once adjusted to replace resourse stocks, will have to increase by 4 ZAR. This is a MASSIVE price increase.
This increase can be delay by companies keeping their prices low until their raw material stocks start getting low. Eventually though prices will have to increase and with the changed wellness calculation it will make it very difficult for people to maintain current production levels, leading to even higher prices.
I fear eRepublik may be heading for a massive recession.
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It's true what you are writing but if we only had controle of the nation instead of the croatians this wouldn't even have been a problem for us.
How so, Rhood?
Because this was easy to predict and because that we would, at day 1 of the V1 started up some stateowned raw material industries.
The problem wouldn't even have occured.
Rhood you're really underestimating us, you really think we're super stupid and you just can't miss a chance to talk against us. Of course we have a plan for stopping this but sure, prices will have to go up but the salaries will too. Also, when state owned company starts running we'll knock down the price of diamonds.
Oh, this is your country as much as it is ours.
Seroisly OMFG!
rhood even your friend laugh at you , read tomislav , we will fix problem , i am glad to see compmage helping
thanks
I am just pointing out the obvious.
I would suggest that most people quit their jobs and find work in the raw material companies, especially grain else we will all starve soon.
This will bring down the raw material needs of production companies while at the same time increasing the production of raw materials. These 2 combined should reduce the cost of raw materials. There will still be inflation but at least things will get better considerably faster.
yes too many workers in food q1 companies , i suggest transfer of half q1 food workers to grain
about diamonds - i think we should make national diamond company and export because we are rich with diamonds
about wood,iron,and oil - we are in negotiations for importing
There will need to be more production of raw materials than manufacturing of them in order to keep prices manageable.
We don't need diamonds to live do we?
We should for a starter create a state owned grain company.
Second we should create a wood company.
Third we should create a iron industrie and last of all if we even need it, we should create an oil company.
This is the most intelligent choises, it is PURE stupidity to start importing raw materials. That would only make South Africa the most downpressed nation in the economical sector.
Stupidity is starting industries for which we have no natural resources.
Actually we want to make our diamond prices lower but I think ther gift prices are to low...Otherwise we won't have any profit at all.If we sell diamonds at 0.5 Zar we will lose money...So I think gift companys should raise their prices to 4Zar...So that we can charge at least 2 zar for each diamond.-.-"
llama , gifts are here sponsored by government and they are non-frofit sector , man you must follow that because state will create diamonds company , compmage i agree it is stupid to make raw companies that africa cant produce !
but we can make companies in abroad and then export to our country
"rhood even your friend laugh at you"
I wasn't laughing.
I was asking a question.
What I'm saying is only that we shouldn't import anything, yet.
The world economical market is upside down and if we would import anything now, then we would be covered in grain, wood, iron, diamonds and oil. Sure, covered in diamonds sounds nice but really, we should not import anything right now.
Well we wouldn't need to import if we had a large workforce, so the choices are: importing raw materials or importing workers
there is another option, take back the rest of south africa from indonesia
as I saw it s easier to produce things now(because of those questions) and I m not sure but I think that now it takes less time to produce 1 unit of something than in beta
Like Tomislav said, we simply cannot open companies and expect them to work when we don't have the natural resources, or the workers to support them.
While some areas are over saturated with workers, in others there are simply not enough workers for it to function without import.
Even if we would transfer workers, it would still not be enough to cover the demand.
We don't have a choice. We have to import.
Edit: I don't know if it would be wise to go in an open confrontation with Indonesia yet, considering the fact that they showed no interest in further occupation.
I'm not saying that we shouldn't take the occupied parts of SA back eventually, I'm just saying that we shouldn't do it yet.
Especially with our infrastructure being what it is.