[Finance] Financial Crisis
![Netherlands](http://www.erepublik.net/images/flags_png/S/Netherlands.png)
Ministerie van Economische Zak
Dear readers,
We are facing a serious problem, a financial crisis. And it seams there is nothing within my powers that can stop it.
We tried cutting costs on state companies by decreasing wages along with the market.
We increased efficiency on the raws ministry so that they can buy more raws with the same gold.
The evidence is there:
More and more NLG for sale, which leads to dropping rates. Today we hit 0.015 again.
Less and Less NLG in the state funds, which leads to more NLG on the market, which leads to lower exchange rates.
Less and Less GOLD in the state funds, which leaves us with no options to buy away a large part of the NLG that is for sale to stabelize our market.
The wages are lowering, this means we collect less income tax. Were does this NLG stock as it cant disappear. It does on the MM, companies wanting to sell their NLG for gold, people selling their savings for gold to buy gold to feed to the erepublik whore lana.
I personnaly have some opinions on were it all went wrong ( the past MM crisis) but thats in the past, i want to look forward, and see to find a solution for this problem.
This crisis can be stopped, but only by our people.
So what can you do about it?
1. Stop spending gold on Lana.
2. Dont buy Gold from the market, or sell your NLG.
3. If you have gold that you dont need, sell them for NLG, exchange rates are going up now, so see it as a long term investment, once the rates go up again, you could try to sell a bit and make profit.
4. If you feel that you arent needing your money, donate them to the state, this way we decrease the NLG thats going round in our market, thus stabelizing it.
Why would you care about it?
Well it affects us all, if our exchange rate lowers, you'll earn even less, products will become expensiver as raws become expensiver etc. etc.
Ministry of Finance & MM,
Luuklag
ps,
I'd like to thank the numerous people that contributed allready to our MM by selling their gold, so please follow their example or take a look at the other things you can do.
Comments
Nice explenation Luuklag,
I'll try to do what I can for the crisis.
Nice article Luuklag!
Tough times! Voted.
Voted!
discussion is going on at: http://enetherlands.nl/viewtopic.php?f=101&t=4596" target="_blank">http://enetherlands.nl/viewtopic.php?f=1[..]=4596
well written, voted.
voted
People won't stop to use Lana, we're screwed anyway 😛.
Also see the latest financial report: http://www.erepublik.com/en/article/-finance-financial-report-february-12-14-00-erep-time-1198640/1/20" target="_blank">http://www.erepublik.com/en/article/-fin[..]/1/20
(What's Lana?)
Of what I understand of eRep, which isnt a lot, this is really easy to understand, so thanks for the explanation. I will try to sell my gold since I don't need it ATM.
Great post!
Bought 500 NLG for 7 gold 😃
It would be nice if next time you communicated salary lowerings before you do it. Now I quit my job because, I don't like wagedrops without ecplenation.
Khraa, i am not in charge of the state companies, that is anohter minitstry. The drops in wages are only to follow the free market in their wages, and to cut on our costs as a government, we cant spend as much as we would like to anymore, since were on the way down. Hopefully these measures are enaugh to get on the way up again.
Above comment is mine 🙂
I don't mind the wage cut. I just advise you to communicate about it in advance.
/care 😃
i'm sorry but i got ripped of 2800SKK with my company earlier today, i can not miss anything right now untill i get my money back, the admins are still discussing on the issue, i hope i'll get my money back, if not, it'll be a big problem.
if i do get my money back, i might donate some NLG.
Voted!
What is Lana?