[Congress] Increase of DNB fund
Day 4,206, 05:35
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Published in Netherlands 
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by
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by UNL Congress
Greetings, citizens of Netherlands,
Citizen Janty F requested the following debate be opened.
Topic: Increase of DNB fund.
Requester: Janty F
Text:
Based on the latest debates about Monetary policies, which were fruitful in debating, but not fruitful in actual changes being done, I have decided to start my own initiative and aim to implement changes, which were generally agreed upon during the previous debates, but were never voted in.
One of the "generally agreed upon points" was increase in DNB reserves. When I came to NL several months ago, the minimal legal size of DNB funds was 1 000 Gold and 200 000 NLG. Due to my initiative, it was upgraded to 1 000 Gold and 1 000 000 NLG (= increase by 800 000 NLG). Due to the continuing inflation, I believe we can all agree this number needs to be increased again.
Given the debates and given the current state of DNB, I propose the following change in Chapter III, Article 2, point 4:
- The organization ‘DNB’ serves as the Emergency Fund consisting of at least 1,500 Gold and 1,500,000 NLG, which can only be used with congressional approval.
This increase is equivalent to be more than one million currency (even if the gold price will drop to its usual standard of 500 NLG per 1 Gold). I believe that for now, such increase by one million is sufficient enough, and if inflation will continue to rise, it may be revised again in next few months.
Proposal:
change article 3.2.4:
from:
The organization ‘DNB’ serves as the Emergency Fund consisting of at least 1000 Gold and 1,000,000 NLG, which can only be used with congressional approval.
into:
The organization ‘DNB’ serves as the Emergency Fund consisting of at least 1,500 Gold and 1,500,000 NLG, which can only be used with congressional approval.
Final vote count:
Yes/Ja: 30
No/Nee: 0
Neutral/Neutraal: 0
Lawbook updated
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Comments
not nearly high enough.
also only 1 out of like 20 issues that are currently present in the monetary laws.
Solving one issue is better than solving zero issues. Which is what you managed during the entire month 😉
Yeah because that 20 issues thing will ever pass.. Not. Looking at results, this is far more superior.
Reasonable increase o/ !
The main reason to not increase it, is that this money gets stuck in the DNB org, and cannot be used by other orgs on the monetary market. I feel it might be better to associate some of the money in these other orgs with our emergency fund, so that it can keep being invested. The DNB org is really a last line of defense in case these other, less secure orgs, get emptied.
That being said, the DNB is rather full with 2k gold and 2M NLG, so I also don't really see the point of this proposal. In practice, the DNB will only be touched in case of an emergency, in which case we already have more than the proposed reserves.
The only time when this proposal really becomes relevant is when the DNB needs to be refilled again, after such an emergency. This refill occurs with at least 25% of the government's regular budget, i.e. it is initially mainly time limited, until the time comes when it has reached the values in the law. After that time it becomes optional, and the Emergency Fund may not be refilled to current levels, potentially because it seems a better idea to use the money on the monetary market...
Well, everyone seemed to agree the minimal amount there needs to increase. Due to inflation and higher costs of everything, it seems indeed reasonable - last increase was done due to the fact Coup costs have increased, and that was even before the inflation skyrocketed to today's level. Sure, for now, it changes nothing, as DNB has those money already - but it will give us a guarantee we have appropriate amount of money stored away for worse times, while not ruining our budgets with unnecessary DNB transfers (like others propose to do).
Of course, Monetary Market should always be our priority, hence why a lot of surpluses from budgets of last few months go there.
While I kinda agree with Djirtsdew vision of 'stuck' money, it makes sense if only because of the extreme inflation (so net it'd be the same..) and won't cause extreme issues like other proposals regarding the DNB.
So should we maybe also put Q7 tanks in the DNB? If prices rise, thse tanks will also increase in value. If prices drop, the NLG and/or gold increase in effective value. Either way, the total should be less dependent on what the market will be like whenever we get into an emergency.
You could argue that it indeed does not matter, as long there is 'value'. This is also why everyone struggles with the 'Gold' that gets increased as well for no clear reason (as for 'emergency purposes', Gold is hard to be used unlike CC). Only caevet would be the fact that an organization can only store 1.000 items.
Yeah, the limited storage is the only reason, why I do not support storing tanks in DNB. Otherwise, it makes more sense than store gold or currency (without COs) indeed.
I believe we should up the cc to 2.5million not 1.5million.
But as its an increase im in favour
There is 2M CC in there at the moment. If you want to increase it to 2.5M you would force a couple of govs to spend a serious part of their budget on this, instead of on programs for our citizens...
I don't think anybody will really have a problem with 2M and 2k gold (as is in there at the moment), but increasing it beyond this will definitely affect our next few governments' budgets...
We might want another vote to increase it even further after this? But for those who feel this way, they should definitely also agree on this proposal being a (small) step in the right direction.