Rocket Impacts
Sweet Drinker
If logging in today was a 'wtf moment' for you, don't doubt that it was a 'Ho-o-lly-$hit' moment for National Financiers!
Today has brought us a radical change to the game. There is a wiki update regarding the New Rocket Factories and several articles discussing their military implications.
Alot of people are asking questions about the wisdom of upgrading their land for production of these new toys.
The fact are that:
>Your playstyle/goals is probably a big factor in how useful these may be to you,
>Military matters are not my specialty so mine might not be the best advice to seek,
>the release has driven the mkts haywire and solid financial advice is really a few days coming.
This article is about the longterm economic effects this change is likely to cause.
Previously the problems of overproduction and undesireability of lower Quality weapons were compensated by an ingame automated purchasing service (the infamous 'bot'). This method of market correction lead to unrestrained indirect 'printing' of new cash daily by the game itself. Driving cash values ever lower, while merely slowing the rate of product value depreciation.
The major economic change these Rockets bring is that now the players themselves will replace the market correction service that was formerly automated.
*That's the theory atleast
A look at any low quality weapon mkt will show how huge the reaction to this change was: the markets have been virtually devoured within hours. Most horded up by ultra-wealthy players and gold-tankers.
Someone who monitors the global weapons markets regularly will probably have noticed 'something going on' for the past few days, particularly in the Q4 weapons sector. Evidently some players had a little prior knowledge of what was going to happen today.
*More about Q4 weapons later
Because the market tends to 'overreact' to major game changes it will not immediately be clear where pricelines will stabalize at.
Beyond cash prices of weapons, we must consider the value of cash itself.
Currently automated purchasing has stopped.
The question everyone should be asking is:
Is this the end of automated market sales?
If bot-purchaing has been permanently disposed of the implication are huge.
It may actually be wise to move your longterm holdings out of gold and into cash. A strategy that would have been ridiculous for the last year and more! Over time the loss of automated cash production combined with the ingame systems for destroying cash (MPP's, RW's, Rocket fees, some buildings) could drive cash values back to rates we havent seen in a year.
This change is likely to devestate the Government Revenues of smaller countries. Many of which relied upon the automated mechanics to fund expensive programs. We may see many countries 'tightening their belts' in regards to MPP's and social programs.
Time will tell on this matter.
Also, I mentioned Q4 weapons earlier. That's because Q4 weapons are the rarest variety in erep. With purchasers now needing equal amounts of each quality level, scarcity effects price. Making Q4 the most valueable Quality.
While (likely due to it previously being top Q) Q5's are quite abundant.
It would currently be far more profitable to downgrade your Q5 factories.
However we can't say if, or how long, it will take the general populace to recognize this fact and respond to it. Making it no longer a fact!
*The contents of this article are observations and suggestion. I DO NOT take responsibility for any decisions you make based upon it's contents. Everyone is responsible for their own bank balances and landholdings.
Comments
inb4bankrupt
Do you have any prediction how this will affect the country's finances. And do you have any plan or ideas for reforms in this sector?
it wont. in 4-6 month after 1 or 2 company promos we will be stuck again with the damn bot since the consumption increase will not be enough to kill overproduction.
@Stoko
Your 1st question:
Over 80% of Ireland's revenue was actually generated by the Finance Ministry itself. From this change we can expect a 90% loss in revenue or more.
Your 2nd question:
You'll know it when you see it ; )
cc1432's comment is correct.
On a really long timeframe the further company creation should lead to overproduction again, despite increased Rocket production.
Assuming no further game changes are made....
90% or more?
so in short about your comment sweet were fucked??
Interesting on recent purchases of Q4. Market demand on Q6 will go up with less free guns be given awa. With the cash stream dried up current and future goverments in Ireland will have to be a little more selective on MPP's and gun give aways. When things settle down new Tax rates on guns will have to be discussed, especialy imports. The whole thing makes bigger countries stronger then little. One positive is you get a little less work now sweet, thanks for the hard work up till this point.
Very nice point of view
This is clearly a huge change. It's going to have a massive impact... could be a complete game changer.
It will be interesting to see how this will unravel over the next many days... I'm hesitant to convert gold into currency since we doing know whether this change is going to be long term even. Oh well.
I'm pretty sure Sweet started off his MoF streak at a time when the economy was in terrible shape. We've already seen the good and the bad... here's hoping this isn't the ugly.
That's a very good point about downgrading Q5 factories. Smart people are going to make a *lot* of money out of this. You can also see what this is doing to wage prices as well.
Anyone know what this might do to MU supplies? How much did the old system have to do with great supplies being available from the IA, ICA, etc?
^ The old system was the reason for the great supplies. When goverment income is down 80 or 90% tough choices will have to be made. Kind of typicial of RL Ireland, lol.
^this
Sales Tax doesn't work anyway.
I have strange feeling #IrishArmy will be turned off very soon.
i don't think downgrading in the long run is wise, just because it is the obvious initial idea, in the overall run of things people will over-react to the game change and thus Q5 abundance will become less and less therefore their price will rise while Q4 drops!
just thinking out loud because of so many people i have heard that are downgrading to 'print money'
Mr Coleman
I can't speak for all our MU's private supply lines. However I did work with ICA in developing theirs.
That MU's commune atleast should not be seriously effected by the change.
(assuming their model hasn't changed in the last few months)
Warstew
Downgrading from Q5 to Q4 gets you 50% of *normal* upgrade cost.
Limited upgrade offers remove 44% of upgrade cost.
So someone downgrading from Q5 would only have a few gold of loss to cover.
Once again: I'm not telling everyone to run out and do this, just making an observation
You know we'll still blame you when it all goes tits up, don't you Sweet?
running through some VERY ROUGH figures with:
Q1 = 17.5CC, Q2 = 24CC, Q3 = 45CC, Q4 = 80, Q5 = 38 and Q6 = 40CC
Q1 rocket costs: 2545CC
Q2 rocket costs: 6326.5CC
Q3 rocket costs: 12725CC
Q4 rocket costs: 25450CC
so in theory a div 1 could make 1 gold per day (if 50k gets them a BH). I'm tempted to reroll as a starter and just to rake in the gold! how little experience can you get a day?!!? because it is nearly beneficial not to get a higher level at that rate
@WartStew Those are Irish Prices, people will happily head off to cheaper climes where prices are 50% lower in Q1 - Q4
I have a general rule of thumb. Don't downgrade.
Also, The ICA will continue giving the same number of weapons as before.
Is there anyway that the state can take advantage of the 'new economics' of the game to replace some of the last revenue?
im failing to see this lost revenue for the government many keep whining about...
firstly, "our" governent over taxes weapons at a rate of 25%... its ridiculous and a joke.. but like any governent they get the money rolling in and weeeeeee!
they fail to protect our own businesses.. we have an overabundanace of food, and yet we only charge a 40% import tax and let outsiders come in and drive our prices down who make it cheaper elsewhere!
oops ran outta room ill post another underneath
so as for losing money....
i own a q3 rocket, it costs me 50 of each to make 1 rocket... where am i getting those? sure i own a ton of different weapons facs... but i cant make them fast enough in all categories to make a rocket every day... and with the profiteers jumping prices sky high the government is raking it in with our 25% vat tax.....
so i dont feel any sympathy for the government that continues to rape the businessmen that expect us to support and donate to keep our mu's going
bottom line is more will be sold to make the rockets, and those that are using them will still be using q5 and 6 for daily fighting anyways... so there will be an increase in sales which makes even more money for the gov...
thats my opinion... slam it im sure but you wont get sympathy from me lol
Bosshawk who asked for your sympathy?
and we never wanted your money either.
lol you take it daily... without asking
So what your saying is:
Weapon taxes too high,
Food taxes too low?
apparently you dont read real well and just spout off...
ill try to speak slowly for you
weapons VAT taxes too high... yes you got that one right...
food IMPORT tax too low
you rape us for money from our businesses, but then you allow other countries to come in and sell their food cheap and drive our prices down because we already have an over abundance of food
The problem Bosshawk is that a large part of the Irish economy relied on the autobuy mechanism. That mechanism made revenue appear into our system that didn't really exist in the first place, a much larger loss than the 25% taxes provide from rising prices.
You're advocating a hostage-market model Bosshawk.
We ran that model mid 2011, it lead destitution on a nationwide scale.
However that can't even function since the release of universal currency:
The 'IEPslaves' it used to create can now just escape to any market of their choosing to make purchases.
Meanwhile ANY irish citizen can import as much product as they want, exempt from Import Tax, with no currency trap threat. Easily overwhelming our producers.
You're argument is flawed
well maybe, but if you look at the import taxes and vat taxes of any of the nations that are large and or successful right now most have 99/99% for imports on weapons and food-protecting their business owners
and far more reasonable tax rates on weapons and food-using your own argument... there is many countries in the world that i can go to and sell weapons or food and even with the import tax and their vat tax im still paying less then just the vat tax we have here..20g for licence i know..
As always, savage article man.
Unfortunately Bosshawk we haven't been living in a just world. The large countries lived by a different set of rules than us small nations. Our MPP stack alone costs 1,000iep per active citizen every month (and I'm being extremely generous with the term 'active').
Add to that the production disadvantages our citizens have versus the large/successful countries.
'Fair' doesn't even enter the equation, countries like ours usually aren't even on the map...
Yes ppl can sell their goods elsewhere. Yes they can purchase goods abroad too.
We actively encouraged ppl to do so! If every single citizen bought and sold their weapons elsewhere than the Irish mkt, it would've had no real impact to the Government's revenue.
That was the point of the economic system we've been using.
It made our poor resources less detrimental to the community.
It turned our low population into a quasi-advantage for us.
We offerred 100% Q6 wpn supply to every single citizen that showed up to ask for them.
Every single day nearly round the clock,
for months!
We were ready and willing to provide that for the entire population.
Can you honestly say that even if the taxes were set to your personal optimization, you would'be been able to provide that kind of luxury, even for your own employees? Let alone the entire population.
It's the envy of the entire world's governments mate.
And we did it while paying:
a massive MPP stack,
our alliance fees,
supplying mercenaries for key battles,
opening community programs,
supporting New Citizen training,
and nobody had to work in a 'government commune'. Everyone availing of these services got to keep their own production clicks for their own profit.
Honestly tell me what you would have done to improve upon that.
Good work on lowering VAT on weapons.
Unfortunately, you also got rid of import taxes. It ensures the competing foreign goods from countries with higher production bonuses can still price us out of the market. The death sentence for eIrish business continues.
Why do the administrations this year HATE eIrish workers sooooo much?
Why must we continue to only foster economic environments that punish employers who pay eIrish citizens a fair wage?
ad nauseam @ this point Bhane:
ANY Irish citizen can buy from foreign markets and dump on ours TOTALLY EXEMPT FROM IMPORT TAX.
Meaning you'll always have to OFFER INTERNATIONALLY COMPETITIVE PRICES.
Stop wishing for the government to magically change the realities of the game.
Stop expecting Irish society to compensate for your fatally flawed business model.
Stop trying to play by V1 business mechanics
Start playing the game that exists now.
Calm down Sweet.
STOP forgetting that, as the only guy with the keys to the kingdom for months, you are in a unique position to speak with authority on current and real data.
For the rest of us, it's all unicorn stuff.
ok ill be the first to say ive not been in politics and have no desire to do so...and because of that my view are obviously going to be affected by whats affecting my businesses as my niche in this game is enjoying business....
from what im hearing... we have a lack of resources...ok... if so... why even put an import tax on it if we desperately need them... drop it to 5% or even 1%... make it more attractive for other countriesi businessmen to want to bring it here.....
continued
can our guys go abroad and buy and flood our market? sure they can, but thats OUR people helping ireland and making money doing so hopefully..not making it easier for foreigners to flood our market without being citizens
as for gov expenses obviously they are big..but like any society...as the business owner when its coming out of my pocket im gonna bitch and complain lol...especially when it seems to be constantly hitting us to satisfy their needs...and none of them seem to be hurting lol
"especially when it seems to be constantly hitting us to satisfy their needs...and none of them seem to be hurting"
x2
Come on now Bhane get over it, gone on long enough.
As long as you and your friends are taken care of, Dan... I guess that's all that matter.
Continue to piss on the average eIrishman while their efforts are syphoned to feed your battle stats.
Take from the many to give to the few. : (
As long as you continue to endorse this dynamic, we shall continue to agree to disagree, Dan. I prefer an equal treatment democracy, over the representative aristocracy that is being enjoyed by a few favored eIrish citizens at the moment.
The average citizens deserve far more respect than they have been receiving from the administrations of Eire this year. I hope things will change for the better in time. This tax change is a step in the right direction. Hopefully we can take another step soon, like ending the gov't funded distribution of tanks to the favored MUs.
....
again
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the distribution system isn't MU based
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there is no preferred MU's
.....