Comment - Currency, War
Day 761, 17:07
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Published in Australia 
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by
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by infin
Currency rates
As is usual in times of war, the value of our currency, the Aussie dollar (AUD), has depreciated greatly. Current offers to sell gold are pricing the Australian dollar at over $59 per gold. Last month the Aussie dollar was trading with gold at around $50/gold. This represents inflation - when there is more AUD going into the market than gold. One would have though that with all the earn gold incentives now available in eRep that there would have been a slow deflation in AUD prices against gold as more gold flowed through the system. Obviously there are a lot of mechanics that also take gold out of the money system, like when wars are started or companies are created (or upgraded) or when training is purchased (in these situations the gold is consumed by eRep itself), but the fact is that when these spending decisions occur then there are more AUD left competing to buy the remaing gold in the system and people selling their gold charge more.
This is bad for consumers and savers. It costs more for consumers buy goods, and for savers it means that their savings if held in AUD become worth less.
What can we do about it?
As individuals it is very difficult to make any impact, these are decisions that are largely controlled by the government. One way we can all make a difference is by injecting more gold into Australia. This can be achieved by completing more gold incentives.
The government can make a difference by
- entering more alliances to encourage other countries to contribute to our war obligations lessening the drain on our treasury (and then in times of peace when we are accumnulating wealth and itching to pull the trigger we have more conflicts to fight in); and
- reducing import taxes on consumer goods where supply is short reducing the need for Australians to convert gold to AUD, and reducing the flow of AUD out of the country.
The most important way to stabilise our currency rate is for government to devise a strategy to win back our lost territories so that we have more wealth producing companies. I don't know that strategy. I am not a military expert. But if our currency continues to decline at the rate of $10 AUD per month against gold we will soon become a banana republic, and the government will soon be wishing it had kept all those medium industries because we will not be able to afford any overseas goods.
John Sykes has also commented on the currency issues here.
War
I am not a military strategist but in times of war the Australian public looks to its leaders for morale and reassurance. All we are getting from the government at the moment are instructions to defend X, Y or Z. That is why morale is so low and Australians are turning on each other. I would appreciate more communiques from our Prime Minister and Cabinet about surviving the war effort. The silence is deafening at the top. Please issue some official statements about unifying our country and reassure the voters that you are listening. These are desperate times and Australia needs leadership.
As is usual in times of war, the value of our currency, the Aussie dollar (AUD), has depreciated greatly. Current offers to sell gold are pricing the Australian dollar at over $59 per gold. Last month the Aussie dollar was trading with gold at around $50/gold. This represents inflation - when there is more AUD going into the market than gold. One would have though that with all the earn gold incentives now available in eRep that there would have been a slow deflation in AUD prices against gold as more gold flowed through the system. Obviously there are a lot of mechanics that also take gold out of the money system, like when wars are started or companies are created (or upgraded) or when training is purchased (in these situations the gold is consumed by eRep itself), but the fact is that when these spending decisions occur then there are more AUD left competing to buy the remaing gold in the system and people selling their gold charge more.
This is bad for consumers and savers. It costs more for consumers buy goods, and for savers it means that their savings if held in AUD become worth less.
What can we do about it?
As individuals it is very difficult to make any impact, these are decisions that are largely controlled by the government. One way we can all make a difference is by injecting more gold into Australia. This can be achieved by completing more gold incentives.
The government can make a difference by
- entering more alliances to encourage other countries to contribute to our war obligations lessening the drain on our treasury (and then in times of peace when we are accumnulating wealth and itching to pull the trigger we have more conflicts to fight in); and
- reducing import taxes on consumer goods where supply is short reducing the need for Australians to convert gold to AUD, and reducing the flow of AUD out of the country.
The most important way to stabilise our currency rate is for government to devise a strategy to win back our lost territories so that we have more wealth producing companies. I don't know that strategy. I am not a military expert. But if our currency continues to decline at the rate of $10 AUD per month against gold we will soon become a banana republic, and the government will soon be wishing it had kept all those medium industries because we will not be able to afford any overseas goods.
John Sykes has also commented on the currency issues here.
War
I am not a military strategist but in times of war the Australian public looks to its leaders for morale and reassurance. All we are getting from the government at the moment are instructions to defend X, Y or Z. That is why morale is so low and Australians are turning on each other. I would appreciate more communiques from our Prime Minister and Cabinet about surviving the war effort. The silence is deafening at the top. Please issue some official statements about unifying our country and reassure the voters that you are listening. These are desperate times and Australia needs leadership.
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I have just surfed the money market looking for weapons companies trying to raise gold for buying iron - sadly ran out of cash before finishing the job. However if we make a point of picking the offers made by our own companies, we can keep those companies running: and equiping us with weapons. Ditto Gift companies looking for Diamonds.
At least I *hope* this will work - John Sykes? Your thoughts?
Due to limited supply we are not getting much value for money. If we lower import taxes we could get 2 weapons for the price of opne in many situations.