why does the eusa government need 1.5 million saved each month?
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by ComputerSpeaker
I am just wondering why we need to save so much currency each month?
it seems really foolish to put so many eggs in one basket.
does the american government not know of capitalism and the law of diminishing returns?
if you find a great investment, say holding currency to help fund a war, putting 100k towards it is great, put 1 mil only does twice as much, putting 10 million only does 3 times as much.
however instead of squirreling away the cash, it was reinvested in the economy. the number of factories would grow production would increase, goods produced would go up. damage done would increase.
If we lowered taxes or spent the cash on goods the economy would improve at a greater rate than it currently is!
we want america to be great! we should stop our government from hindering our growth!
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The elitists use it on the monetary market to make a few bucks for themselves, but shhhhhh, don't tell anyone!
The eggs are not all in one basket.
Publius
Evry
GoalieBCSC
and
the CBO hold those eggs.
Some more is sprinkled elsewhere, but that's just speculation ofc.
i enjoyed your comment 🙂
i will explain why, 1 usd is 1 usd
1.5 million usd is 1.5 mil usd,
1.5 mil usd is 1.5 mill even if Publius holds all of it.
1.5 mil usd is 1.5 mill usd even if Publius and Evry each hold half
1.5 mil usd is 1.5 mil usd even if the entire CBO holds it equally.
you see the "eggs" power to buy things, is all held in USD. this is the "basket".
i can see the confusion. but if a million people hold one usd each or one person holds a million usd. the effect on the economy is exactly the same, and it is bad.
holding the enitre reserve in USD is terrible!
irl canada has a strategic maple syrup reserve
irl usa has a strategic gold, oil, helium, and grain reserve
https://en.wikipedia.org/wiki/Strategic_reserve
if we followed the brilliant economists of our times we too would have a strategic wep and strategic food reserves, just in case production gets cut, just in case war happens.
but no, our brilliant leaders, have decided putting all our reserve eggs in one basket that is the usd is a good idea. it is a terrible idea and it will haunt us as plato prints more and more currency to increase inflation to power the economy.
we'll see when THREE comes around and eUSA blows its wad on CO's that will not hold it off. 😛
they could use it to buy votes for my articles, of course they are just giving money to foreigners to oppress the freedom of the press, so what if it is the elites private money, same purpose achieved
The law of diminishing returns does not apply here, nor would it ever apply to savings, though I can't say I understand the math behind your example. Your speculation on the impact of low taxes and investment would apply in a real economy, however the eUnited States has no such thing. This game's "economy" never mirrored real life, but at this point in the game's life cycle there is literally no economic module worth treating in this manner. There is no way to invest in the economy because it's not existent, money matters solely in being able to bank roll our military efforts, to which savings are essential.
https://en.wikipedia.org/wiki/Diminishing_returns
it does apply here, i was using rough estimates, but look at the q7 wep market. lets pretend your the usa government with a reserve that is currently at 40 million. how high would wep prices go if you had to buy weps to supply the military? do you want you tax dollars being spent buying a 40 dollar q7 wep. when they could buy some right now for 7?
wikipedia.org/condescending_links_are_fun
It costs nothing to store cc and gold.
Weapons can be bought anywhere in the eWorld. So prices would have to be 40cc everywhere for your example to work.
bobby you do pose a great thinking point. i will have to see if some of the other markets have hundreds of thousands of weps. the reserve is at least 10 milllion which could buy 1 million q7 weps. and i can asssume wep prices will approach at least 20 in the world. if the whole reserve was spent on one campaign. i do not want my tax dollars used to buy weps at 20, when they could buy weps now and store them for 8
whydolbother, it is the hidden costs. pretend you have ten million and want to use it to do damage. and have a lot of energy you could regen. how expensive would that last food you bought be, how expensive would the last wep be if you have a 10 million budget for weps?
The argument for a reserve in cash is to buy damage with COs
Note a lot of the damage being bought is damage (hence tanks) that would have been used somewhere in any case - so does not necessarily result in a spike in tank consumption (price)
A lot of tank purchases are bought on the black market - so more tanks are available than you see on the market
If prices rise high enough then it would likely be profitable to use workers to produce tanks and hence increase supply
High COs will motivate EB consumption & the use of Damage Boosters
I would expect for those using EBs some of the CO profit will go to buying gold so as to be able to replace the EBs and thus not all would go to tanks
v