Constitution and Currency
Day 273, 20:31
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Published in USA 
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by
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by Archibald
Constitution
We have released an official draft of a proposal for a [a url=http://www.erepublik.com/article-538272.html]Constitution[/a] for our country. I encourage everyone to review this and provide feedback. We want to make sure we put into place a workable document from the start. At the same time, the focus will be on trying to pass the Constitution as soon as possible.
Issue Currency
There is a very exciting vote occurring to decide whether to issue more currency. I am treating this as a referendum on whether the government should keep posting on the monetary exchange. Without more USD, we won't be able to continue this. It's also natural to try to add a little currency with the population boom we've seen recently. That said, I'll let Congress decide what direction they would like for us to go in.
UPDATE: The motion just passed, but it wasn't exactly a ringing endorsement. I understand everyone's concern about issuing currency, but 40,000 USD isn't very much compared to what is already in the economy. That being said, I will move slowly for introducing any of this money into the economy.
We have released an official draft of a proposal for a [a url=http://www.erepublik.com/article-538272.html]Constitution[/a] for our country. I encourage everyone to review this and provide feedback. We want to make sure we put into place a workable document from the start. At the same time, the focus will be on trying to pass the Constitution as soon as possible.
Issue Currency
There is a very exciting vote occurring to decide whether to issue more currency. I am treating this as a referendum on whether the government should keep posting on the monetary exchange. Without more USD, we won't be able to continue this. It's also natural to try to add a little currency with the population boom we've seen recently. That said, I'll let Congress decide what direction they would like for us to go in.
UPDATE: The motion just passed, but it wasn't exactly a ringing endorsement. I understand everyone's concern about issuing currency, but 40,000 USD isn't very much compared to what is already in the economy. That being said, I will move slowly for introducing any of this money into the economy.
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a tie vote is the same as a \"for\" vote?
Constitution :: Thank you Archi Thank you. Lets keep it moving along 😃
Currency :: you are right 40k will not effect our markets too much.
@Rise: Apparently.
@Justinious: Agreed, and I will try not to introduce it too quickly.
The quantity being added isn\'t necessarily the issue, its the principles surrounding the policies and the future impact of such polices to print new money at will. Although the tie vote gives a shot across the bow to the current administration that future attempts to create new money are not going to be well received and/or supported. And the historical record of Nay Votes in the Congress show a continuing trend against these proposals.
July 6th: 4/Nay Votes
July 14th: 11/Nay Votes
Aug 7th: 12/Nay Votes
Aug 18th: 14/Nay Votes
I understand your concerns, Alby, and those voting records make sense in response to what we have seen occur in other countries. At the same time, it is important to take into account the scale of the money being printed.
Also, you cannot necessarily apply real world economic arguments to Erepublik. Over time, you will see that supply exceeds demand on the national level. If the government was not involved, the currency would deflate unchecked. Not all of our markets have caught up yet, but we are starting to see some price drops in many different products and quality levels. Any inflation is only temporary unless the government does something like what we\'ve seen in Germany, Greece, or Turkey. That\'s not at stake here.
Scale of the money being printed? Or death by a million cuts? Even minor additions add up over time. Now Turkey has a hyper inflation problem. But even small inflation at home can hurt over time. And the people it hurts are the citizens and businesses in the end. I\'ve started to take a daily snapshot of the market to gauge the inflation problem or lack thereof. Since data ingame is lacking or inaccurate, I\'ve decided to create my own data to stand on when the next proposal is created so that our elected officals can verify if inflation can be sacrificed for the good of the economy. Or if the economy must suffer to keep inflation in check.
hmm...
just hmm
so far
Alby,
More data is always useful; thanks so much for looking into the issue! I know the goal is to keep prices stable, and the gold/USD exchange has just been the easiest proxy for that, even if not necessarily accurate. I\'m curious what basket of goods you\'re going to use to measure inflation.
I will say that Turkey\'s problem was the issuance of \"2147483647 TRY\" 4 times in a row- in order to match that with printings on the scale Archibald\'s talking, we\'d need to print money 214,000 more times. Which would take a minimum of 588 years to pass all the bills, assuming one per day. So I\'m not too worried at the moment, but if anyone tries to print way more money than this, I would start to worry.
well, 40k with the population boom isn\'t going to kill us, just make sure to introduce it slowly, even it were released all at once it would exctly do necissary harm, it just wouldn\'t do any good, and with the boom, just looked at some things, some citities nearly 10-20xed the size, issueing currency is the way to go
out of order, anyway, Constiution, looking good, good job all who hada part in it\'s creation.
I believe the Government\'s stance is that increasing the money supply is needed to boost exports through a weak dollar. As such, inflation is technically the goal of this administration. My concern is how that will impact the domestic economy with the shift to boosting the export economy. And one thing that I believe hasn\'t been mentioned is that to export you need a license which costs 25/Gold. If all these domestic businesses that are flooding the local market with goods need to export their widgets, then devaluing the USD does nothing for these folks if they don\'t hold any export licenses. So my question to the Government Officials is, where\'s are the Gold Donations to obtain an export license for all these US businesses? Else we\'ll end up in a situation where the USD is being devalued, yet nobody is exporting because they don\'t have a license or funds to purchase one. In theory, we would need to deflate the USD to make export licenses cheap. Once a mass number of businesses bought them, devalue the currency to boost their exports.
Really companies are pretty good about finding the gold. But I think that a low/no interest loan program should be looked at.
\'believe the Government\'s stance is that increasing the money supply is needed to boost exports through a weak dollar.\"
I sure as hell hope you believe that, I\'m certain I\'ve stated that a thousand times by now. 😛
Remember that we\'ve got deflationary pressures acting all the time, we have to print some money just to keep it where it is.Money in the market means relative inflation, but not necessarily absolute inflation.
a tie vote will alway go in favor of the proposal because the president would be the tie breaker and he obviously supports the proposal.