Economy

Osman Shahanshah · Post by **Osman Shahanshah** » Sat Dec 03, 2005 8:35 am

Or rather we can work that part out once we have this show on the road.

UEC · Post by **UEC** » Sat Dec 03, 2005 2:57 pm

we never did figure out how much an erb was worth micronationally.. (macronationally the 750 real erb that exsists are worth $0.10 each... but that is moot here) E. Metzler (UEC)Duke of Brookshire"Never use a BOO/\/\ist as a diplomat" -- GSClicky Clicky..., Tiss for your own good ya know.

RicLyon · Post by **RicLyon** » Sat Dec 03, 2005 3:08 pm

If we're going to start an economy here we need money to start from... Richard LyonYansha Elaer Kyon gef ShanPernem kahn gef kuymal per varga stiPernem kahn gef varga per kuymal sti

Osman Shahanshah · Post by **Osman Shahanshah** » Sat Dec 03, 2005 3:50 pm

So what sort of economy are we going for? Simulated goods or services?The former I presume since the failure of micronational service economies is one of the constants of the micronational experience.

Osman Shahanshah · Post by **Osman Shahanshah** » Sat Dec 03, 2005 3:59 pm

A possible allocation:4,500,000 eDkDefence: 1,000,000Infrastructure: 2,000,000Salaries & Welfare: 1,000,000Slush fund: 500,000

Osman Shahanshah · Post by **Osman Shahanshah** » Sat Dec 03, 2005 4:34 pm

Ok, I have Â£3 in change left over from Â£30 I had last night lets for the sake of arguement put that forward as the Treasury of Elwynn. Comparing the pound to the dollar we should be able to work out how many erb that would give us.ok so blah and blah and blah gives usÂ£0.10 lets say thats worth Â£0.05Â£0.05 x 60 = Â£3750 erb x 60 = 450,000lets say 10 eDk = 1 450,000 x 10 = 4,500,000 eDk Edited by: Osman Shahanshah at: 12/3/05 16:46

RicLyon · Post by **RicLyon** » Sat Dec 03, 2005 4:40 pm

We need to work out a system of supply and demand. If we have to many fictitious things, then we wouldn't sell or buy.I'm not so sure about maintenance and stuff, but maintaining an army and such for recwar purposes is an idea (but where would the money the army costs go?)Land deals are obvious. Say Lesser Zjandaria wants to buy a bit of land from Ãseirdia-la-Vraulalennir, then the Countess could say "10 edk / sq. km"Other supply and demand things could be: buying loyalty (sign this contract and i'll give xxx edk)baronies buying votes in landsraadBut the simulation thing is interesting. The only problem to work out is where does the money go when you buy fictitious services...

Osman Shahanshah · Post by **Osman Shahanshah** » Sat Dec 03, 2005 5:04 pm

Thats a valid point. My suggestion would be that (where feasible) it would go into a state owned or supported holding company and from there be recycled into the economy proper - either back to the Elwynnese govt through local taxation or else in dividends to shareholders on the holding companies.For example with transport infrastructure there would be payments to: Dragon Flare Air & Osman-Almagro IndustriesRevenue would then be payed to Elwynn in taxes or in dividends to Ozarka and myself. There would also be wages for any employees.There are also not for profit organisations such as the Zjandaria Research Institute that produce neither taxes or dividends - these will basically eat their allocation of capital as will other utilities.Which brings us to a dilema - we have started with an input of capital but with the non profit untilities and payments to foreign manufacturers such as the Gotzers or such like the simulated economy would eventually leach itself of capital unless there are revenue generating opportunities for the economy.This would be solved by investment and the simulation of revenue generating activity such as say... manufacturing contracts to Elwynn High Tech Engineering or primary resource harvesting.

RicLyon · Post by **RicLyon** » Sat Dec 03, 2005 5:24 pm

Perhaps we should put on heavy taxes on money speculation and stuff. Putting money in from outside will be heavily taxed, and taking money out too.That way we can keep the economy a bit stable I think. Richard LyonYansha Elaer Kyon gef ShanPernem kahn gef kuymal per varga stiPernem kahn gef varga per kuymal sti

Osman Shahanshah · Post by **Osman Shahanshah** » Sat Dec 03, 2005 5:32 pm

Well lets not be too hasty on the taxes, a little bit of investment can be a good thing.

RicLyon · Post by **RicLyon** » Sat Dec 03, 2005 5:39 pm

Perhaps...

UEC · Post by **UEC** » Sat Dec 03, 2005 7:30 pm

I find your calculations questionable..."750 erb x 60 = 450,000"???? why is 750 being multiplied by 60?Do we have a miniTrade?If not... I could rig up the bank so you all can use it... just need aproval from the Kaiser to clean out the old accounts.. E. Metzler (UEC)Duke of Brookshire"Never use a BOO/\/\ist as a diplomat" -- GSClicky Clicky..., Tiss for your own good ya know.

Rarkasha · Post by **Rarkasha** » Sat Dec 03, 2005 8:52 pm

I agree with Ric Lyon. I think there should be some system of raw goods and services, with a fairly flexible limit on the goods and services of incividual counties. That way, there has to be trade within Shireroth. It also gives more political realism: do we declare war, knowing they provide us certain things? --- The first step is admitting I have a problem.

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 2:53 am

Quote:"750 erb x 60 = 450,000"???? why is 750 being multiplied by 60?It's mainly me taking a short cut. You said your 750 macronational erb are worth $0.10 - I have therefore decided that 750 = Â£0.05 and thus 750 x 60 = 450,000

UEC · Post by **UEC** » Sun Dec 04, 2005 3:54 am

ummm 1 erb = $0.10 not all 750... I got like.. 35 bucks backing the whole 750... E. Metzler (UEC)Duke of Brookshire"Never use a BOO/\/\ist as a diplomat" -- GSClicky Clicky..., Tiss for your own good ya know.

RicLyon · Post by **RicLyon** » Sun Dec 04, 2005 4:00 am

How do we base the Shirerithian currency on RL money?It's easy to say: I have 400,000 dollars. That makes me a Shirerithian millionaire. Richard LyonYansha Elaer Kyon gef ShanPernem kahn gef kuymal per varga stiPernem kahn gef varga per kuymal sti

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 5:04 am

Balls. Ok, I'll ammend this.And to Ric's remark - its essentially based upon veracity and trust and the redeemable value of the real life money. Basically if I am presented with a letter of credit I am obliged to pay the bearer of the note from the reserve. However as you are not all about to show up at my door and demand payment the letter of credit becomes the unit of currency. And credit trading is how the transactions are paid. The real erb will be money I set aside as the reserve while the simulated erb will be the tradeable credits derived from the value I place upon the cash reserve. Edited by: Osman Shahanshah at: 12/4/05 5:50

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 5:08 am

So with Â£3 I in fact have 60. Suddenly its not quite so impressive.But if I take my savings (Â£514.99) I have 10,299.8And this time lets say 1000 eDk = 1 (That is to say there are 1,000 tradeable simulated credits for every real erb)Gives us the very respectable figure of 10,299,000

RicLyon · Post by **RicLyon** » Sun Dec 04, 2005 5:10 am

And I can Elwynnise the money that I have stored in Swedish bank accounts I guess... Need to have a look how much that is.

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 5:43 am

Use savings rather than current account as the latter tends to fluctuate.

RicLyon · Post by **RicLyon** » Sun Dec 04, 2005 5:51 am

They're savings. That's why they're in Sweden so that I can't use the money

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 7:28 am

Good good, add them to the balance then.

RicLyon · Post by **RicLyon** » Sun Dec 04, 2005 7:53 am

It's SEK 7500. How much that would be in erbs...

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 8:07 am

Whats the exchange rate SEK to pound sterling?

Sir Iain de Vembria · Post by **Sir Iain de Vembria** » Sun Dec 04, 2005 8:19 am

Right now: 13.95 His Excellency the Chancellor of the Sovereign Order of Treesia

RicLyon · Post by **RicLyon** » Sun Dec 04, 2005 9:11 am

GBP 526.96 USD 909.20

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 9:24 am

So edk 10,539,200 from the Duke and add to that my edk 10,299,800, brings the Elwynn Ganjavari (Treasury of Elwynn) to edk 20,839,000.

Osman Shahanshah · Post by **Osman Shahanshah** » Sun Dec 04, 2005 9:50 am

I propose we bring in a quarterly budget - the treasury placing edk 5,209,750 each quarter into the economyUsing the original allocations:Defence: 1,000,000Infrastructure: 2,000,000Salaries & Welfare: 1,000,000Slush fund: 500,000leave edk709,750 left over each quarter. A total of edk 2,839,000 surplus per annum. This would cover us in the event of overspend, and could also be awarded as a bonus at the end of the year.The challenge will be to run the system so as to ensure that there are enough Dinar-Kronas in the Ganjavari for the next financial year, or at least its first quarter. We would want to avoid creating new Dinar-Kronas as that would cause inflation, so it would have to be recouped through taxation.

RicLyon · Post by **RicLyon** » Sun Dec 04, 2005 9:55 am

Wouldn't it be better to calculate the size of Elwynn's recwar army through the cost per soldier.That way we can increase and decrease the size depending on our money.And who do we pay for military? The one who "plays" the army? Richard LyonYansha Elaer Kyon gef ShanPernem kahn gef kuymal per varga stiPernem kahn gef varga per kuymal sti

RicLyon · Post by **RicLyon** » Sun Dec 04, 2005 10:25 am

That's good!Now we can start thinking on how much money we want out in people's hands. Edited by: RicLyon at: 12/4/05 10:27

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