Is the ATS Too Strong?
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by rjeddings
We have a problem. There are no jobs available. Companies are laying off workers. Once profitable companies are now putting themselves up for sale at below market prices. So, what is the problem? There are no ATS available in the economy.
Now, those who know me, know that I am an ardent supporter of a strong ATS policy. However, I believe that policy needs to be tempered with providing stability to the economy. Our country has experienced 30% deflation in the past month, or in other words a 30% increase in the value of the ATS. I would be fine with 30% deflation over 12 month, but over 1 month is unacceptable. That is also a 30% increase in our minimum wage, which is crippling our unskilled laborers.
Currently, there zero jobs available for anyone under skill 5 except in the grain industry. (This does not include job offers from companies with either no raw materials, or no cash on hand, meaning a worker can not work anyway.) Many companies are tightening the belt and not hiring, cutting wages, drastically reducing the price of their product trying to save or generate ATS. Unfortunately, the citizenry does not have any money to buy the company’s products and the spiral continues.
The role of the central bank is to maintain economic stability and strive for full employment. Neither of these goals is currently being met. Because of that I will soon be proposing a law to issue 30,000 ATS.
I would also encourage the ACB and any other large holder of ATS to try to re-inject those funds back into the economy immediately. It will take two days to pass the law and then to donate the new ATS to the central bank.
Please utilize this article as a debate forum for discussing this proposal.
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werent you the one against issuing ATS? :3
I had already mentioned printing money, in case you were interested. Rangeley was going to hold off and let things stabilise a bit, but at the amount of people trading the newly strong ATS, we do not have the amount required to keep them from benchmarking even stronger.
I'll be releasing my weekly overview today sometime.
I am against issueing more ATS in an inflationary environment. However, we are currently in a deflationary environment. I am also against issueing ATS solely for the purpose of more govenment expenditures, but to re-inject into a failing economy would be a legitimate reason.
I would like a re-interjection please.
Thanks Elesias. I always enjoy reading your input. I think you are right about the over production being the problem.
Addition after visiting the monetary market:
We have about 12 offers of people that sell ATS for gold while the market "gold for ATS" just crashed. Conclusion: People want gold and don't want ATS. Many offer ATS, nobody offers gold. Injecting more ATS wouldn't help at all. I think your premise is flawed. If ATS was really so sought after, there should be an abunance of people that offer gold in exchange for ATS.
That for the discussion, I still think that it's about time to issue some more money. Just don't think this will have any effect on the economic downward spiral (if the state doesn't start to buy goods and delete them 😁).
The overproduction seems to be hitting the entire E-economy, true. It seems like this is partly due to the end of the world war, but yeah. Too many comps, too little consumption.
There's little talk about the new economics module right now, but we can hope that corrects things.
In the mean time, wouldn't it be a smarter idea to get out of all this food production and maybe employ people in, say, q5 weapons (or something similar) production and stockpile the weapons till prices go back up? And look for means of exporting simultaneously?
I think you are see a temporary blip in the monetary market. Someone in the last couple of hours bought all the gold off the market. The international currency traders will see that spread and a dozen offers will be back on the market soon.
Elesias - I think people have been buying gold with the ATS because it's been getting stronger. If you've been working and earning ATS, then buying gold when it strengthens makes sense. Likewise, when the ATS weakens, you probably will see people buying more ATS.
Not to say your argument about about people not wanting the ATS isn't correct, just that with the strengthening ATS it's a good time to sell the ATS you've had on hand for a while.
More have been selling gold for ATS than it looked like a few minutes ago - the best offers were simply purchased off the market, it appears (and as has been noted above.) Already its starting to come back down to earth, from 64-1 then, to 55-1 being the best offer now.
The point about production/consumption is very true, but on the same token, I think a confluence of this and a forced valuation of the ATS combined to mess with the economy.
Stoneman:
True. I think Zoli often writes about this prominently. Only skill 0-2 should work in q1 up to people skill 6-7 working in q4 and 7+ working only in q5. It is a theoretical cure for some of the problems. It doesn't really work, because there is no real market for food q2-4 or weapons q2-4. Your proposition is definitely amongst the better things to do right now. I just don't have the gold to set up a q5 company 😁
Exporting is another thing the developers didn't get right at all. A lot of countries use high import taxes to protect their companies a little bit from the global flood of goods. Unfortunately unlike in the real world this is a smart move. There are no comparative advantages in the eWorld. Every country can be self sustraining on the secondary sector. And good luck in finding a country that doesn't have a domestic overproduction already 😁
rjeddings, Stoneman, Rangeley:
Alright, I don't really follow the monetary market as closely now. I withdraw my previous comment. Recalling it I seem to remember that the lowest offer of gold for ATS was the same for the past 2 or 3 days which would really indicate that almost nobody injects ATS into the market and that it is sought after. Maybe now was just a bad moment to draw conclusions.