FKB: Financial Musings 19 Dec 2011

Day 1,490, 12:58 Published in United Kingdom USA by Peregrine

So, I'm starting slow - as my return has left me somewhat pauperized as I spent what I returned to find in my accounts playing around with the new game features. I will, eventually, be returning to financial management and analysis for the benefit primarily of myself... but with plenty of trickle-down available to enterprising persons who may wish to assist me.

I've done some basic market analysis and am happy with the wage / price points I've got. I will also be upgrading my second weapons factory to Q4 as soon as I have the resources in hand, which will serve to double production. Not that the market for Q4 weaps is all that huge (as I'm discovering) and I will be endeavoring to expand both to Q5 as soon as is feasible.

=== Some Early Thoughts===

[*] The price point on wages is fine, if competitive.
[*] The price point on RMs is fine, but could be cheaper.
[*] Taxes on weapons are modest and to my mind acceptable.
[*] Tariffs on WRM are pointless. The competition in wages means that nobody can really afford to hire WRM workers, which means basically all WRM for sale on our markets are personal... I think I will probably write an article on this at some point. Cutting tariffs on WRM to 1% or even 0% would be advisable as the only net effect would be to increase our supply of WRM in the eUK.



[*] Most important to mine eyes of my observations so far since returning, and take note I've only been back for 3 days after a 2 year absence and so I'm still catching my bearings... is currency valuation.

Nothing good can come of having our currency sit below 0.001Gold.

When a currency is above 0.001 gold (currently its at 0.00085 Gold)... to be perfectly honest I'd prefer if it were closer to 0.01 than 0.05... it can become a trading currency.

Currency trading doesn't seem to be QUITE as big as it used to be, although I've seen some FOREX types milling around the monetary markets... but allow me to explain. When a currency is actively traded at arbitrage (when there is a discernible difference in the BuyGOLD price and the BuyCASH price), or actively traded on both sides of the GOLD/GBP divide at all, it becomes more liquid.

What does that mean? Gold/GBP liquidity refers to the amount of time one would have to wait to convert their Gold to GBP or vice versa. Cash liquidity effects a great deal, but especially the ability of players to invest their GBP earnings and salaries back into the economy through the purchase of fixed assets such as property.




Cheers.