Inflation Creation Bill.

[Erik Mortis]

Hasam once suggested creating more erb to promote a small amount of inflation, to help make erb more likely to move, as people would be more willing to part with it in small amounts.

I propose we create another 2000erb in the system to help meet this goal.

[Andreas the Wise]

Er ... the most popular of the illegal bill options had more money being created ...

[Erik Mortis]

Yeah.. well. It's my hope that that Bill fails.

[Bayen]

Use fractional erb instead.

Inflation solves nothing!!

[Malliki]

So deflation is better then? With your suggestion we say that from now on 1 Erb is worth 0.1 Erb. Will people believe that or just keep thinking that 1 Erb is 1 Erb?

[Erik Mortis]

I'm inclined to think we need to triple the total erb.

[Andreas the Wise]

Triple? Seems a bit much. Either add 1000-2000 more to the government, or double everyones ...

[Erik Mortis]

Much? I just thought it would be a good idea to make the total erb 100,000. triple was completely mild. Say there is 643billlion USD right now...(I googled) we have 5,000erb... meaning... 1 erb is roughly comparable to 128,600USD. Ignoring exchange rates and stuff.

Meaning... we make a fortune in bounties, and I don't think we really realize how much a single erb is worth.

[Bayen]

Nono, that assumes that the national economies of USA and Shireroth are equal. Money per person is closer.

So if US has 300 million people, that's an average of about 2000 per person. So if we say an average citizen has 50 erb, then an erb is 400 dollars, assuming a normal Shirerithian is about as economically established as an average American.

Anyways, that's just a little thing I'm being picky about, but in general you have a point. So maybe if you quadrupled the erb, then .01 would equal about one USD to give people a simple perspective...

[Malliki]

Meaning... we make a fortune in bounties, and I don't think we really realize how much a single erb is worth.

Yes. The Erb has to be valued compared to the total amount of Erbs. We undervalue the Erb partly because of the lack of zeros. For example, you Erik get 75 Erb for the bank work. That is 1.5% of the total amount of Erbs. With Bayen's numbers that is 30 000 USD.

I actually think that a quadrupling (?) of the Erbs is a good way to go. .01 USD is a good reference point.

[Erik Mortis]

By holding most of the 100,000erb I think I want made, the government can control the value of the erb that is on the street. 1 erb would be roughly 6,430.. 1million erb would make it 643 1bil 6.43USD. That's a value we can comprehend.

I put a number of hours into working on the bank. I want 100USD for it.. sure.. that's 10erb. or something.

More erb.. ALOT more, would help us figure out how much things are worth. What we think is fair. etc.

The government can hold most of the erb and use it to control value, if it likes.

We are trying to run a economic simulation off micro-economic values at best. We need LARGE numbers to get the simulation running.

In Eve, cause it's a good economic simulation I know.. I'm willing to part with 10,000 ISK like it's nothing. Because I got several million. I have 250erb right now.. I might be willing to part with 1erb... maybe 10... but no more then that, it'll make a visible dent in the vote my duke has if I spent to much.

If the duchy had, say...10,000 erb total in it.. and I have say.. 2,000 of that... I would part with 10 here.. 10 there... Now, more money is moving...

[Erik Mortis]

I think we need 1 billion, after calculating and posting. Quadrupling isn't enough. I'm pretty sure the bank can handle it... If not, I can MAKE it handle it.

[Andreas the Wise]

50 000 I think should be quite enough ... but by all means, take it to the Landsraad if you will. Scotts not here to complain about the government getting it all anyway ...


Actually ............... maybe this could solve our citizen bounty payment problems. Depending on how much of the 'new erb' got paid out to citizens and by what formula ...

[Erik Mortis]

I say leave all the numbers as they are for now.

I still say 1million to 1 billion erb would get us more useful numbers.

[Erik Mortis]

Hyper-Inflation Bill of 3303

The Lawbook: Chapter XIII, Section D. Shall now read as follows.

D. Distribution

1. Total Erb and it's movement.
a. The total sum of Erb in circulation shall be 1,000,000,000EUR.
b. Additional Erb may be added to circulation as required by the authority of The Kaiser or by Act oflandsraad.
c. All Erb shall be initially issued from The Crown Account and distributed to other accounts as stated within this Law.
d. Additional distributions may be made By The Kaiser or by Act of Landsraad from The Crown account or by regular functions of the economy as stated within this Law.
e. The transfer of currency between two parties (either company or citizen) may be done so at will but remain subject to potential audit if required by The Kaiser, The Arbiter or by Act of Landsraad.

[Andreas the Wise]

No accord made for distributing it from the Crown Account?

[Malliki]

Yay! I wholeheartedly agree.

[Erik Mortis]

"All Erb shall be initially issued from The Crown Account and distributed to other accounts as stated within this Law." I only changed the first line of the section.

I changed the format to make it easier to read, and to fit in with the lawbook better.

[Bayen]

How much erb is there right now? (I'm slightly out of touch... )

[Erik Mortis]

Only 5,000. Which is why we have so little to work with.

[Andreas the Wise]

Ah, it reads differently now. I'm not sure I support it, but I guess I should, because now 999,995,000 erb will be in the Crown account for me to dole out ...

[Erik Mortis]

I only changed the format, and made first line reflect the 1billion erb created, and the fact the economy is now running.

Now you can hand out bounties, using the numbers you are now, and it makes more sense...

[Bayen]

Maybe we should make it 2 billion (or 200,000,000, or 2,000,000, or etc)... Just so the conversion to "kind-of-USD" is easy to do in your head and makes it a lot more accessible. (Although 2 billion would mean 1000 erb to one pseudo-USD, which might be too far over to the other side...)

[Andreas the Wise]

Um ... using the numbers we are now are far too small to make sense. The numbers we are now made sense in a 10000-50000 range. They'll be upping a bit at 1 billion ....

WAIT ... Now we're leaving MiniTrade in control of how much money is around in the economy .... and so I can keep it at a fair rate ... hmmm ...

[Erik Mortis]

You begin to see the light.

And 1 erb is about 6USD.. ISH...kinda.. which is min wage in the US. So.. 1 erb is an hours work.. roughly.. based on that... the bounties start to make more sense as they are, yes?

Mike has been calculating like crazy.

[Andreas the Wise]

I think the light I'm seeing is an oncoming train .... for the rest of Shireroth.

That, or fire stolen from the gods.

Let us all take a moment to thank Sakat that we don't have a corrupt MiniTrade, nor one who doesn't understand economics.

[Erik Mortis]

I'm just trying to get our values to make sense. 1billion will do that. We may still be overpaying people.. but that's okey I suppose.

Then we can pay wages, salaries, tax useful amounts. and give money to ministers at large to bountify people.

[Andreas the Wise]

You and I are seeing different possibilities inherent in this, I think. But I'm not going to bother explaining mine. I'll just let the bill pass and then make it work.


OOC: Definitely fire from the gods.

[Erik Mortis]

I think I understand. It means you:
1. Have shit loads of money to work with.
2. Can give out more bounties.
3. Don't have to worry about bankrupting the government.

I see:
1. Current values we use will now make sense.
2. People may be more likely to spend erb, at least in small amounts.
3. We can now grasp how much 1 erb is worth.
4. Now we can pay wages and salaries, and it's fair and doesn't break the economy.

As long as we keep giving out money at the numbers we are now, this gives us both what we want.

[Andreas the Wise]

Actually the key is:
4. Can control how much is in circulation and fine tune it far greater.