Economic Overview #3
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by Antonio Fonti
As requested by the President i have written up another eco report that will cover 3 main areas, the market, the monetery exchange and what we can do in the future.
One of the main areas that will always guarantee a strong economy is growth in the population, since my last report Japan's populace has grown to over 370 from just 310, some of these are inactive ofcourse, from reports of workers it appears that just under 200 people are active within Japan, i will continue to moniter this from now on in my reports as this shows how well we are developing socially. But the fact that our overall population has grown looks very good for the economy. I've also noticed an increase in gold in the country, with more market proposals then ever and companies being sold quickly. This is good for the economy as a whole as it reduces inflation.
On the topic of inflation it is also good to note that inflation is at a record low, measuring at just 0.55%, this can be put down to many factors, including the growing amount of gold in the country. This increase in gold has also dramtically risen the value of JPY, which despite being extremely low in my first reports has rocketed up to 1JPY = 0.040gold at its lowest at the moment, for the past few days the price was stuck at 1JPY = 0.034gold, so it will be interesting to see if this trend of rise continues in the near future.
Due also to the increase in people and companies, the market has become ever more varied with all markets now boasting a strong variety of companies with no company having a monopoly as was seen in Japan's earlier history. With the added competition, prices have also started to drop, this also helps to reduce inflation as lower prices means lower wages and therefore less JPY going around.
Hopefully this fall in prices won't mean a steep fall in wages. This would only further worsen a problem i've seen. In the market, in the gift and food markets especially, companies stocks of products have gone up and are going unsold.
For these paticular markets i would encourage people to buy up as much as possible to help out company owners, i would especially consider buying lower Q food and as many gifts as possble, this can be used in many ways, one is helping new citizens and another is helping our soldiers who intend to fight against Romania.
Recently we've seen a lot of new tax changes aswell, personally i think what Waseem has done is smart, he's risen import taxes on many products especially ones flooded with both home grown and foreign products, hopefully this will allow our providers to have an edge in our market. He's also risen VAT and income taxes in some areas this further helps keep inflation down and another reason behind its decline.
For people hoping to start off a new company i would suggest not starting in either food or gift, those markets are flooded and will only be good if a Q1 provider upgrades, probably the best markets now are moving and housing.
Thank you for reading, i hope this was useful.
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As Usual, I love reading Fonti\'s Top Quality papers.
I agree with you Waseem! Thank you Antonio 🙂
Great report, thanks!
well in my opinion i still think that the JPY is overvalued. don\'t you find it odd that other currencies are weaker despite their huge economies? the only thing that makes us sustain an overvalued JPY is the high import taxes.
i\'m not convinced that the market has been freed from monopolies. q3 food for instance only has one local supplier. q1 food has been the same past few days. q2 gifts only one supplier.
on that note, i think we are OVER protecting our industries. besides, with the small amount of gold we have here i don\'t see any incentive for foreigners to flood our markets. even if they can sustain lower prices they won\'t be getting much gold from us. most of the citizens don\'t even have gold and the gov\'t would definitely not use up all their gold to regain the JPY not in circulation. They\'d probably print more bills which would depreciate the currency. hopefully leading to devaluation and a more real reflection of our economy.
on the other hand i agree with you that lower prices have been experienced and this is good for consumers. but i think we also have to be constantly aware of global prices. it\'s not enough that we have lower prices here. prices in gold must be as close as possible to the global averages. otherwise people will find that it is too expensive to live here.
Thanks for the report Fonti
e(japan) always be the expensive plave to live..
@ Jusinm
You bring up some good points, in my opinion a high JPY isn\'t a bad thing at the moment, it means that we can afford more gold for less JPY this in the end was what we were aiming to do when the government decided to raise it, to make gold more available to combat inflation for one (which was high back then nearing 40😵and to get more gold circulating.
On the subject of markets, you\'ve brought up just a few examples of lone suppliers but the fact there are other suppliers in the market means that their prices are affected by the prices of other Q products, therefore they canot achieve a monoploy while dealing with other companies.
I think that we are definitely not overprotecting our companies, most countries use high import taxes to protect their domestic market, this is what we\'re doing here, it ensures that our companies aren\'t atacked by other nations \"dumping\" their products at low prices and it means that we don\'t lose our gold to foreign investors, which as you\'ve noticed is still quite low in comparison to other nations. But on that subject i do disagree with you that there isn\'t enough gold in Japan (there isn\'t a lot but theres more then there has ever been) ive seen a significant increase of it, this can be seen on the exchange market where there is up to 70 gold up for offer, compared to a much lower total (10ish if i remember correctly few weeks ago.
And that last point is a good one and we should be careful not to raise the price of JPY too high that it discourages people from coming here.
well i think the presence of other companies even in different qualities does not have as much of an effect as you think. say for instance q3 food. people who train and work with no houses have no other option but to buy q3 food if they want to increase wellness. so in that case they are stuck with the prices of q3 food. i don\'t think that some of these companies are as sensitive to the presence of other qualities of food. there is a weak link between companies of different qualities and i don\'t think this link is enough to significantly alter prices. strictly speaking i guess i was wrong to call them monopolies but you cannot deny that they have cornered the market fairly well and that there is very little competition.
@justinm
But the mere presence of other companies proves that what ever advantage they have is weak, for any company can upgrade and challenge them, besides i myself only buy Q1 food because i have a Q4 house, so there are vary levels of people that will buy different types of food. Therefore an advantage is lost because of other markets such as hosuing and gifts.
i think we are looking at it differently. i am looking at it as a demand for that type of food. while you are looking at it considering the demand of everyone in the market.
what i\'m trying to say is that whatever the demand for q3 food is there is only 1 supplier. thus he has cornered that market. what you are saying is that the demand for q3 food changes because of the other companies.
i hope that clears things up. and i really appreciate you taking your time to reply
@ justinm
i understand what you\'re saying and i agree 1 supplier has a advantage at the moment, but because there are many companies in that area they can be upgarded to challenge him in the future, so as i said before his hold over the market is precerious at best.
ah then we are also looking at it in different time periods. while you were looking at it in a long run perspective i was looking at it in the short run.
anyway, as a somewhat new citizen this discussion was really informative. thanks.
Your welcome 😃
thanx 4 the report..