US Aid to Hungary

Day 696, 15:12 Published in USA USA by dreaeuh

After an unsuccessful campaign in Manitoba, the US war machine decided to attack Saskatchewan in what can only be described as an attempt to further strengthen the Great Hungarian Wall.

What the US fails to recognize is that while the battles against Hungary is not going to be won by direct confrontation such as this. More Hungarians are fighting than Americans. What this means is that for every battle that we engage in against the Hungarians, more Hungarians are getting experienced and military rankings. One of the DoD newspapers said that there are about 1,500 more active Hungarians than there are Americans, which equates to about 10 experience per Hungarian soldier times the suggested 1,500 soldiers.

We have a 15,000 point experience deficit when we engage in battles with Hungary. In effect, the US is spending tax dollars on strengthening the enemy, while weakening its own citizens.

(The weapons package I mentioned yesterday seems to be a flop. How do I know? I haven't received any weapons! So again, I committed to battle today and did a whopping -30 damage.)

Currency News

The US is further closing it gap between currency trading prices and the price of GOLD in USD. The gap reduced in 24 hours time from 40.40USD to now 40.29USD with no sign of slowing.

Trading Strategies - Triangular Arbitrage

Buying currency and selling it for a higher price is a basic fundamental for currency trading. A more advanced step is the triangular arbitrage. This is where you buy one currency it, trade it for a second currency, and use the second currency to buy the original currency and hopefully make a profit doing it.

This simple case usually involved GOLD as the starting "currency". The GOLD, USD, RUB method is one that has been highly profitable.

You sell 1 GOLD for 40USD at a rate of 0.025 GOLD per USD. You can post that you are buying RUB for anywhere above 0.7157USD each. This come from the current spot price of GOLD for RUB of 28.628 divided by your purchase price of 40USD.

You sell 1 GOLD for 40USD, sell 40USD for 30RUB at current approximate spot price of USD to RUB of 0.75, and sell 30 RUB for 1.05GOLD. This equates to a 5% return on a series of trades.

This is not *true* triangular arbitrage, as there is risk involved, as there is a growing lack of demand for USD in Russia, meaning people may be less than willing to buy USD in exchange for RUB, let alone to 0.75. If the exchange rate between USD and RUB drops below 0.7157, you will lose money.