Join the new world

This is a look at the overall global economic outlook and why I think we are where we are today. This is not that difficult and therefore will not be a long article.


More recently, the administration has been making some good changes to the game to improve the environment and monetary system. Specifically, they have tried to revive the use of cash by

-increasing the amount of products used in a day significantly

-Creating new ways for cash to be used such as
Creating resource companies
Buying Land
Buying Storage
And Starting RW’s



These moves have been sharp maneuvers by the administration in light of the obviously sinking value of the dollar compared to the value of gold within the market. These changes have been slightly effective. Before the increase in the amount of products used per day, our currency was exchanging PHP to gold at a rate of 1000 PHP for 1 gold.


Absolutely ridiculous. Now, it is a significant though not wonderful rate of 700 PHP for 1 gold.



Advantages to the Recent Changes


By increasing the number of products used in a day, not only are the admins decreasing the number of things in storage within a lot of inventories, but also a need for further investments in companies, company upgrades, and an increase need for cash to buy items off of the market. Increased demand for cash means that the proportional demand for gold to cash will be less radically different.


As for the new ways in which cash can be burned, eg, buying land, companies, starting RW’s, and buying storage space, these methods are burning off the extra cash input into our overall economic system through that lovely temporary fix known as the buy-bot by most erepublik citizens. If you are unaware of the buy-bot (and I am unaware of if it is still in operation), it at least used to buy products and drop them into thin air from offers on the market, relieving overstock but inflating dollar value.


Naturally, by decreasing the amount of cash, this tends to make the difference between the demand for gold and cash to be more moderate.


The Problem with the Economy


It remains the same thing as before the changes. Despite new ways of using and burning cash that increase demand, gold is just so much more worthwhile to any player than any reasonable amount of cash. This is due to strength training and health kits especially. Simply, with the current uses for gold, gold will always be in much higher demand than cash unless the supply of gold increases from where it can be received other than with a plastic credit card.


While helpful, burning cash does not ensure that the relative demand goes down for gold. It is possible for there to be only one PHP dollar in existence, and for the demand for that one PHP dollar to be less than for one piece of gold, again, just simply based on the uses and needs of the population. Naturally, one PHP dollar left in the market is a very extreme case that I don’t expect to see happen, but the point is in the example, not in the reality.


Possible Solution


An already proposed one, but it is a possible help to the situation, is to limit health packs per day. The downside to this is most people who buy health packs do so with bought gold, so the natural gold supply isn’t terribly affected by this. Still, I’m sure hundreds of gold go to health packs that was received from medals.


Another (and unlikely) solution is to bring back work skill and make the stinking equation work right. I’ve covered this idea in three different articles in the past, so I won’t go into detail here. Simply if they used an exponential equation with a fractional power value that was balanced properly, a semblance of order can and should be maintained within the market. Unfortunately, while this deals with overproduction, it does not answer the monetary market woes completely due to the already accomplished utter devaluation of currencies worldwide.


Economic Advice

Save your cash. So far the value of cash has gone up from the recent changes and it is possible to continue to do so. Even better, use your cash productively by buying land, storage (if needed), and especially the 7,500 dollar resource business. Do us all a favor, and get rid of it from the market.


Aren Perry