A reason why we should print more money? 우리 돈좀 뽑읍시다
utoronto
Hi, this is utoronto, a congressman elected in Jeju.
I do not usually write in public, but I became too worried about the country's economy.
A law proposal of issuing 20000KRW was proposed yesterday on the congress, however, rejected.
The main reason for the rejection was on fear of inflation. However, it is not the time to worry about the inflation. We should rather worry deflation.
When people expect prices to fall, they will be less likely to spend. When prices are falling, you can just hold on to the money and make a good investment out of it where the money will be valued more in the future. As a result of the decreased spending and investment, economy will cease to grow and even enter the era of negative growth.
Idea of strong KRW seems ideal, but in reality, it is just nonsense. How would it benefit eSK citizens anyway? What difference would more-valued-money make if you earn less? What we need is rather a stable currency. Due to the severe deflation, companies suffer from low selling prices, and job market started to collapse because of the company's bad performance. Deflation will only benefit someone who possess huge amount of KRW, somewhat like 100K, and waiting to change them into gold!
The economy will stay depressed because people expect deflation, and deflation will continue because the economy remains depressed (So called a deflationary trap). It is time for government to intervene and get our economy out of the deflationary trap.
In order to achieve this, government needs money to start the policies!
I think there will be another proposal in few hours, please vote yes to the proposal.
안녕하세요 utoronto라고 합니다
전원래 신문이란 것 조차 없었는데 루마니아 십숑키들이 자꾸 깝쳐서 어쩔 수 없이 글을 쓰게 됐습니다.
어제 국회에 원화를 발행하는 법안이 제출됐었습니다만 부결이 확실히 됐네요.
인플레이션은 안 된다! 하면서 반대를 하던데, 지금 우리나라는 인플레는 무슨 디플레이션을 걱정해야 될 때가 아닐까 싶습니다.
시장가격이 떨어진다 예상되면 나중에 상품들을 더 낮은 가격에 살 수 있으므로 현 지출이 줄고, 지출과 투자의 감소는 결국 경제성장에 방해가 되죠. 또 경기 회복이 이루어지지 않으므로 이 악순환이 계속 반복될 거고요.
클라포 떨거지들이 자꾸 원화의 강세가 필요하다 멍멍소리를 하는데요그냥 터무니없는 소리입니다. 원화 강세면 뭐합니까 임금이 저렇게 막 떨어지는데. 인력시장 보시면 아실겁니다. 원화가 강세면 클라포 쉽새들이 뽑았던 십만 원을 금으로 바꿀때나 좋겠죠 뭐 ㅡㅡ..
몇 시간 후에 다시 법안이 제출될 거 같은데 찬성해주십쇼.
한국 분들은 다 찬성하셨다 믿고 짧게 썼습니다.
Comments
Voted
Why don't the gov buy krw using the 700gold? The gov will not be that stupid to buy krw from speculators holding huge amount of krw, right?
Btw It's good to see you in the media world.
@William Choi
buying krw from mm would make deflation even worse... Less KRW out in the market, exchange rate will even break the 0.017 point
nice vote
I admit that i know very little about economics (I have been studying science throughout my RL)
Will the Korean economy be jeopardized if the currency rate raises and be sustained at a high level, say, 0.017? I know the Romanians will be benefited as they hold a large sum of krw. What if the gov avoid buying krw from Romanians? What if we have a stronger and stable currency?
Stable currency rate is at the equilibrium point of two factors, demand and supply of certain type of currency. For a currency rate to stay at such a high level with stability, actual demand or supply should change.
In my opinion, the cause of current deflation is due to over production, which will soon be resolved. Therefore, I think sustaining the rate of 0.017 stably would be hard.
Government should take care of these temporary changes in market to gain stability. In order to do this, government should have reserve money both in gold and KRW.
But look, http://economy.erepublik.com/en/accounts/4162038
National bank's reserve only contains gold of 700 and 8000KRW (in process of donation).
Also, citizens will have access to KRW from Romanians if they sell it. If they sell KRW at good prices, people will bite it even if the gov't avoids buying KRW. But I don't think Romanians will attempt such an aggressive act, dumping significant amount of KRW.
Clopoyaur 잔당들은 자기들이 가진 원화를 gold로 바꿔서 이 나라를 떠나려고 원화 강세를 원하고 있습니다. 빨리 돈을 찍어내서 원화 강세를 꺾어야 합니다. 쟤네들이 가진 원화만 10만원이 넘습니다.
@William Choi
My major is Business. as we all know, Economic and business are really close to each other. For eRepublik, we do not need high understanding of economic theory like master or PHD. However, for the government gold is much more important than their money. eSK could issue 200KRW for 1 gold which means when ever we need KRW, we only need to print them. However in MM, government needed to sell 1 gold for 58.82 KRW.
Base on your theory, why the RL government issue their money every year? And why Russia, USA, Poland.. etc are issuing the money instead of buying from MM? Gold is core of economy, we should protect and save the gold in government.
Voted
You should write more often ; )
SAY NO TO INFLATION!
SAY NO TO INFLATION!
SAY NO TO INFLATION!
Thanks Kreussen for your simple and clear explanation.
@utoronto
"In my opinion, the cause of current deflation is due to over production, which will soon be resolved. Therefore, I think sustaining the rate of 0.017 stably would be hard."
I don't really get it. Can you explain more? Sorry I am a noob in economics 😛
@Wladimir Rascian
Thank you for your comment. I will try to write when there are major issues around.
@Clopoyaur
Any reasons? Sometimes deflation can be more dangerous to the economy. I can see account balance on BoSK fluctuating without any donation logs. I'm not blind.
@William Choi
I am sorry for not being clear enough. I was never good at explaining my thoughts.
What I meant was that the markets do have period of surplus and shortage. Since it is very usual to have temporary surplus, the market can usually absorb its impacts and recover (going back to normal currency rate) with government's monetary policies.
I tried to not mention the possibility of manipulation on currency rate on the last comment. May be that could be the reason why the deflation is keep worsening.
nice work utoronto
@utoronto
Thanks for your explanation. 🙂
Stability of KRW is indeed essential. To sustain the stability I support the money issue proposal. Sorry I was wrong last time.
Inflation helps company owners only. The workers get only bad things from it.
company owners in case of deflation
- their profit diminishes especially the exporter ones due to higher exchange rate which make them not so competitive
- they have to pay higher salaries in gold lets say
company workers in case of deflation
- their economies don't devaluate
- they get higher salaries in gold
In case of inflation it's the other way around. Which means that all the workers will have to suffer for the good of a few(the company owners). I would suggest to the company owners to give up some of their profits in order for the workers to have a better life.
On the MM I saw big investors trying to artificially create inflation and the Romanians trying to create deflation so things should be stable as long no one throw on the market big sums of money.
The country already has in it account 10k KRW the need for extra 20k KRW is sustainable only in case of a big deflation period. Do not get fooled about the few speculators. Because our direct war will get to an end we will get overproduction so an extra inflation period should not be desired.
I do understand the need of revenge and the need of power the current leaders want. They don't want to buy from the market it seems to be something wrong with the Romania KRW so they would like to devaluate it.
You should vote based on who you think is more important the workers (many) or the owners (few).
romanians say bow wow wow
@MirceaDrac "they have to pay higher salaries in gold lets say"? and "they get higher salaries in gold"? No! Look our current job market! Look how low the salaries got. As currency rate increased, average salary decreased too. How someone can receive higher salaries if salaries decrease?
Company owners and workers have mutual relationship. If companies suffer and stops making profits, workers wage will go down like current situation. Are you in early 20th centuries and doing the union talk? eSK has a perfectly competitive market with number of firms running! If one company attempts to treat its worker badly, the worker can just leave.
Where would workers work if companies start to close?
I stated above that buying KRW from MM will make deflation even worse. Think before you say something. Where did you learn your economics? If you ask economists following question, "Which of the following is more dangerous to economy?" around 8 out of 10 would say deflation. You can adjust inflation. But adjusting deflation? There is no specific measure.
Stop crying over your loss of power! You Romanians are just against current president. You people are even voting against the donation proposal to the national bank!
Stop ruining eSK's economy.
Oh and by the way you should learn some economics too, it's fun.
야, 로마니안 너네들 십만원은 어쨌냐 ㅋㅋㅋ
So Three Legged Crow is the national bank.. Does it seem to you to be a national bank? That is hilarious. Does it do eggs too?
Inflation is actually the plague all over the world. It makes average people more poor and the corporations more fat. And just because you don't know how to deal with deflation that means it is bad? I know you learned economics but that makes you reluctant to see other solutions. Inflate to what point? How much inflation would be good for you? 0.015 0.013? you want to have the lowest currency? you want to get to 0.005 the emission currency? You want to keep eSK in the pack of the underdeveloped countries?
Do you know that even in the RL the whole economy always inflates. How the f..k can that always be good? I tell you how.. there are just a group of people that are getting richer and richer while the rest gets more poor. The same like here. The luck in our case is that resources are infinite compared to RL.
Have you heard about resource based economy? now that is something to thrive for not making a few fat!!
http://www.youtube.com/watch?v=pxr51DrzdrE
I am not an expert in economy but I do know to distinguish between good and bad. And inflation is bad.
If Three Legged Crow is so hilarious you can just give back BoSK to the country. Romanians can sell the Bank with 100K to the country for 500G, the amount they invested. In that way current deflation can be solved too.
Current rate of .017 is abnormal and should be adjusted to normal rates of .014~.015. And when did I state that inflation is always good? I stated deflation can give more pain for government to solve. Our economy is in serious deflation and yet you are worried about inflation! How nonsense.
I would agree to your point about corporations if the companies of eRep has so many employees and have great influence over the market. Corporations do get richer with inflation. But in fact, companies only hires less than 10 ppl in eRep. With such a small scale, companies will not benefit from the inflation.
Why are we discussing about inflation anyway? What I am arguing is that we should go back to normal rate! It is as if I am trying to turn a heater on because a room is too cold. You are worried about the room getting too hot when we are all about to freeze to death.
As a result of deflation, demand for goods decreased, which caused price for goods to decrease. Because price suddenly decreased, companies suffer loss, therefore, wages are getting low. Eventually, companies will shut down and unemployment will rise, even more decreasing the demand for goods.
Yes! it's a deflationary trap! And it will be keep worsening if do not take action.
The "demand" for goods is not caused by deflation in our case. It is caused by overproduction and lack of real battles which are the real engine of the economy. In this case the deflation in my opinion is just a fluke and it will go away without you doing anything.
About the bank. you may get the org if you ask for it but without the KRW. You wish us to give you the bank when the other way around never happened in the first place? We should give it back just to start again from scratch if it will happen to get to lead again? you see the irony in all these demands?
I'm getting tired again. The trolling is getting harder day by day.
grrr (:
Thank you roland_up! I was becoming tired facing a person lacking ability to understand.
MirceaDrac, you expect Grease to give up the bank to someone who impeached him within a day he got elected? Since Grease has turned the money into the country it is now time for Romanians do the same.
I know exactly how the MM works. What I do not understand is the reason why 0.015(This is you aim it seems although you never said it straight) is better than 0.017 constant too or 0.018 or 0.009.
I know you are helpless. Why don't you ask for help? or buy the krw at a better rate. If you have the gold and can not manage to keep the MM how about starting from 0. I mean no gold and no KRW.
Solution? Ask BoSK help if needed. Maybe it will help. The lack of communication brought us here and probably will get us even further deep in this sh..
Good luck
"I know exactly how the MM works."
if you do, you wouldnt be tell me about we are trying to set the lowest currency and move it to 0.005?
"What I do not understand is the reason why 0.015(This is you aim it seems although you never said it straight) is better than 0.017 constant too or 0.018 or 0.009."
you can set it to anything, it is just a number. But moving it upward or downward too quickly will upset a lot of people, because we are not starting at zero, as you have stated, some people have saving, and they dont appreaciate their saving losing any value, and as I have stated, business dont appreaciate it because it upset anything from raw material cost, export margin, cost of production, pricing, etc... which is what happening now.
"I mean no gold and no KRW."
You started with 500 of your own gold, that's hardly what you call as no gold. And we have already offered to pay you back the gold you spend, you refused.
+1
Where where the eRomanians crying out against inflation when they printed 100K KRW?
Rest on it.
@Myung Kei have you seen any inflation yet? Except for the artificial one they try to create now over the artificial deflation?
@roland_up that's right. Now you got to my thinking. Those are only numbers and are currently upsetting only a few people. Not the large population.
About the 100k. And this is my personal opinion. Those are our money. I repeat OUR money. And that only happened because they gave us no choice. And now you want it back just like that? After all that happened you expect gratitude? Even now eSK economy is booming because of our measures. Did we get anything in return except bad words? Have we ever been considered equal amongst eSK-ers by the current RL Koreans? You are to arrogant to work with us and you expect us to accept your terms?
No No No... That would be too much.
와우 희석이형 많이도 쓰셧네요 저두 에코노믹들어서 형말이 당연히 옳다고 생각해요😁 그나저나 형... 공부하세요 ㅋㅋㅋㅋㅋ 요즘 안좋은 소문이 들리던데~~ ㅎㅎ
@ Mircea.
So when you print 100k there is no inflation and no problem, yet when the new administration tries to print 20k, it will bring the end of the economy as we know it?
Exactly what realm is this fairytale even remotely believable?
Also, there is little economic "boom" from the tax changes, which continue to bring in less revenue (in terms of gold) than before due to the inflationary policies of the previous 2 administrations...and the land swap deals cost more to maintain then the taxes or growth in the eSK economy could provide in return. Its all an elaborate fallacy.
The entire economic setup of the past month and greater is about to come crashing down when the eRomanian group and company short sells its currency and proceeds to blame "inflation" on this current government. The only people to blame are the Congresspeople who voted "yes" to print 100k, which at the time were eRomanian.
voted
@Myung Kei I'm sure that inflation will happen in your case because you are driven by the revenge feeling. That means you intentionally want inflation in order for those 100k KRW to devaluate. So there is no actual intention of doing anything good for the population but just pay back.
You still think that the setup last month was bad. This game is not only about hoarding money like you definitely want. I know it is hard for you to understand but you can not have progress by doing nothing.
"@roland_up that's right. Now you got to my thinking. Those are only numbers and are currently upsetting only a few people. Not the large population."
You are wrong... again. Every working person is going to be affected by it. what do you mean not the larger population?
"About the 100k. And this is my personal opinion. Those are our money. I repeat OUR money. And that only happened because they gave us no choice. And now you want it back just like that? After all that happened you expect gratitude? Even now eSK economy is booming because of our measures. Did we get anything in return except bad words? Have we ever been considered equal amongst eSK-ers by the current RL Koreans? You are to arrogant to work with us and you expect us to accept your terms?"
Well, so all your talk about Grease taken the people's money is just hollow rheotric? A lot of the money he happened to have are donation from people, that's included me.
"Did we get anything in return except bad words? Have we ever been considered equal amongst eSK-ers by the current RL Koreans?"
Yes, I have, except the cheating ones, I dont have any pity on them.
And besides, if you cannot trust the people around you, how are you going to work with them? I don't know why you dont get this.
"Well, so all your talk about Grease taken the people's money is just hollow rheotric? A lot of the money he happened to have are donation from people, that's included me."
The situation is not that different. Those money were donated by us the Romanians so it is normal to get them back. Like you got them from grease. We got them back from where we invested them.
"And besides, if you cannot trust the people around you, how are you going to work with them? I don't know why you dont get this."
That actually is the other way around roland_up. We never were trusted by the rest. I don't know what to say about you as you actually are new in the politics of the country. We asked for their help when we were in the lead but they did not want us. Now they are in the lead and don't want us again. Only in their own terms and without any sincere feeling, only for the money.
I'm taking a break from all this. I'm not even a congressman in the end (:. Good luck!
@ Mircea
Revenge feeling? I don't have a feeling for revenge. Clopoyaur seemed like a decent person, but the people who are blindly following him and making incorrect and despicable accusations towards the opposition are frankly what I cannot tolerate.
And again, you are seeking my intentions but looking at the wrong place. I don't want any devaluation in the currency, but if you take a look at a strong majority of the MM, surprise! Isn't that strange? Most of the sellers of the currency right now are eRomanians.
I don't like inflation, but you crying out that inflation is bad after the eRomanians printed 100K KRW makes you a unsavory and unclassy hypocrite.
And you know what...If the government decides to inflate the currency, then I will take no side. Frankly, it is exactly what the eRomanians would get if they were trying to reek massive profits in the MM and slowly inflate the KRW.
And I know it is definitely hard for you to understand, I frankly do, since I went through this phase. But progress without meaning is knowledge without comprehension: useless.
ill post tmr. And eRep is different then RL, but the main economic principles apply even here 🙂, just some settings are different.