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February Term - Report 1

Time to invest!

Morning All!

Yes, it is shocking that this is technically the first MoF report of the term. If you check the last report you will notice “a report whenever anything exciting happens”. Well, my job is to keep you updated on what is going on with the country’s finances. Boringly for me, but good for the country, our spending is effectively the same as the last report I produced.

In February we have spent nothing externally. What I mean by that is every single eUK expense, profit and cash change is trackable by every single member of the eWorld. This means you can technically do my job with me as well! For all cash outside the Country Accounts you can basically just check this report here: http://www.erepublik.com/en/article/-mof-january-report-3-closing-balance-2207505/1/20

No Org money has been spent, no tanks spent, no cash transferred from Country Accounts to Orgss and no money made on the MM as of yet as we were playing it safe. These stats can be seen here: http://www.erepublik.com/en/country-administration/United-Kingdom/1

I will summarise for you all, I guess I should do a bit of work!

We have spent 90k on MPPs this term and that is the total of our spending. We have made just over 87k via taxes this month. For this term we are down by £2711 so far. This is very worrying that even when we are spending effectively nothing we are still losing money. We have had a massive massive crash in the economy. People used to work for a wage of £350 and now they are lucky to get £15. With that kind of drop in income across our whole country it has obviously slashed taxes massively. However ingame things you buy for a set amount of CC (MPPs, Saltpeters, Storage) have remained exactly the same price, this makes them much harder to get. This is something we may need to look at more in the future if the admins don’t do something to fix this soon.

Hopefully the MM will be able to fix this gap.

Investment Opportunities:

The MM has been deemed safe enough for investment to start again. Just before we pulled the cash off the MM due to it dropping a band, congresses accepted a proposal by John Maverick - http://www.erepublik.com/en/citizen/profile/1594540 - for an investment program with the government. I worked with him to tweak the method into something that will actually work for both interested parties. This was effectively investing the public’s money on the MM and splitting the profit that cash makes 50/50 with the government.

The MM is now deemed safe enough for government money to be invested on it, that makes me happy enough to start this program for the public.

How does it work?

Step 1 - A member of the public invests a multiple of £250 (currently, subject to change) - Cash can not be directly donated to an org, a donation will be made by buying overpriced WRM at a set time so I know who is buying it.

Step 2 - You will be told which Org your cash is invested on, you will be told when the investment was made on the MM and you will also be informed when it is going to have completed cashing out (cashing out starts about ⅘ hours before the final time normally). This makes everything trackable, you can see where it all is.

Step 3 - You wait 10 days

Step 4 - The Org will buy a certain amount of gold at a rate of £250 (currently, subject to change). The way I invest the gold this means the Org’s normally fully cash out, however that was on the higher band of 0.003, we are now on 0.004 and the gov has not yet waited ten days to cash out, so I am not 100% that it still works.

Knowing if the org has completed the cycle:

As you know the org your cash is on and the time the org is going to cash out, you can see exactly how much has cashed out. All investments are done in batches of £50k, that means we are buying 200 gold at a time. Before the org cashes out it will have zero cash and zero gold on it (or very close to zero), this is because the org only has 50k on it and all of it is on the MM! You know the org has fully cashed out when you can see 50k worth of value on the Org’s profile. That could be 200 gold (200 * £250 = £50,000), 100 gold and £25,000 or just £50,000. When the org is done cashing out gold it spits all the rest of the CC out so if there is any CC on the org then it is likely to be finished.

Knowing how much of the gold / CC on the Org is yours:

It is all percentages. If you invested £50,000 you would have invested 100% of the cash on the Org. That means that 100% of the gold that cashes out and 100% of the CC left over will be yours. We will then work out (with the current gold price) how much profit you are making. Half of that profit will be the Gov’s as per the scheme.

If you invest £250 you would have invested 0.5% of the Org’s cash. That means 0.5% of the gold and 0.5% of the leftover CC is yours.

Scenario A: You invest £5,000 - The org cashed out 200 gold. As you invested 10%, 20 of that gold is now effectively yours after working out the profit. As the org fully cashed out, there is no CC left. If gold is worth £275 then £250 of that will go to the Gov as half of the profit.

Scenario B: You invest £5,000 - The org cashes out 100 gold. As you invested 10%, 10 of that gold is now effectively yours and as £25,000 of the cash is left in the org, £2,500 of the CC is yours. Then the Gov will take a £125 cut as that is half of the profit.

Where is the profit?:

Once an org has cashed out you have a decision to make.

1) You can ask for the Gov to transfer you that gold at a rate of ten a day (or less) and transfer you the left over CC back.

2) You can ask the Gov to sell the gold for you (at a price you agree - obviously you need to look at the market to make that decision, we will not be able to sell it if you say £1000 and it will just sit there for sale for ages). You will then see an instant profit. For example if you invest £50,000 (using this value for ease) and the org fully cashes out you will have 200 gold. if you are then able to sell it for £275 the Gov will be able to transfer £52500 back to you and the Gov takes £2500.

3) If you wish to reinvest just inform the Gov, and in this scenario we could invest a %age that you wish, £50,000 again and send you £2500 back as instant profit or invest the full whack.

The full cycle simply:

1 - Buy overpriced WRM as a way to put your money on an org.
2 - That money is then put on the MM to buy gold for cheaper than it currently is
3 - You will be able to track exactly how much of your cash turns into gold so you know no funny business is happening
4 - You are then asked if you wish to sell your gold (if yes, how much for) or if you would like it sent to you. The remaining CC is then either sent to you or re-invested as per your request. The Gov will take its cut here

That is it all guys, if you have any questions please do ask. If you wish to invest, please send me a message and we can discuss the process.

Thanks all,

Carlini