Currency

[shadowlz]

No, I understood, you were implying a mental patient would be able to control the economy with dirt and paper. Makes perfect sense.

He was using dirt and paper as an example. He wouldnt stockpile dirt, he would stockpile something with a high base value, lets just say Resource A. Resource A is something a lot of people want and often would get you a lot of stuff in a trade window, but is bulky. Now the banker would also stockpile Resource B. B would be weightless or near weightless therefore easy to carry around in large quanities.

Once a ample amount of both A and B were gathered, he would spread the word that he buys B for A and buys A for B, People would now know that if someone drops 200 units of B in a trade window they can go get 10 units of A from the banker.

Set up like a real bank, store peoples A for them. So you would get their A and give them B to represent that they do infact own that many of A. But then why would they put any A in there when they can just store it themselves. So you would need to allow intrest to be gathered, which would be given in form of B. Now theres a reason to put A into the bank, because in the end youll end up with more if you save.

Now for the most part the only people caring about the banker are the people who need A to make stuff, so that group wants as much B as they can get. To everyone else B is just this magical worthless crap that gets them stuff from the crafters, and so they will value it.

Now where this falls flat is that, people can just dig up B and trade it in for the much more valuable A, therefore deflation would rise to insane levels and to the point where there is no more A at the bank, now the currency is worthless, and the banker is stuck with 2 million units of B which only sell to people who don't know its worthless yet. The only reason currency in real life works is because you cant dig it up in scrap heaps. Best way to counter that is to have a monoply on Resource B.


By the way, that 'group' I called crafters that value A would be your government. While the citizens would be the group that doesnt care why it works, it just gets them stuff. I dont think a single person could pull this off, it would need to be a large powerfull tribe I'm sure, and they would become the powerhouse tribe, and most likly the centre of trade.


If an powerful tribe was in on it you could offer services that require only manpower, for resource B. And in the end resource A would most likely be phased out and the base price on the currency would be set.

[blackice]

Since currency doesnt rot away it could become a permanent way to store value. Everything will start to rot away so it will prevent hoarding properly. Yes in a week or two you could make quite a few nails but since u can save money you could be very rich in the long run. Especially for large tribes bringing in alot.

[yoori]

I just got back home and I'm kinda drunk, just a warning.

Ok, my example from last post was extreme and unlikely. But I like responses, they take my extreme thinking to casual level.

But my point still stands single crafter with uber repcipe, can influence whole market with just bartering(to some point). If people will use one item to craft and use as money at the same time, they will have to choose if they want to keep them to buy something they want or if they will trade it to someone that needs it to craft.

If, on the other hand, we'll have enough of nails to craft and use as currency(event if someone decides to manipulate), won't they become our "grass" from previous posts?

With non craftable item as currency, speculating with prices of any craftable item will change only price of this single item, couse currency is independent from crafting.

Even if some one decides to sepculate with your tribes currency(and I'm guessing different tribes will have different currencies) it's won't change your local market much.

And well prepared tribe will be able to counter global consequences.

Why I'm saing this is that whatever item you'll choose as your currency you have to be prepared that some one will want to mess it up. Economical warfare will be very important for good tribes which can't be enemies with eachother.

[eightonefive]

He was using dirt and paper as an example. He wouldnt stockpile dirt, he would stockpile something with a high base value, lets just say Resource A. Resource A is something a lot of people want and often would get you a lot of stuff in a trade window, but is bulky. Now the banker would also stockpile Resource B. B would be weightless or near weightless therefore easy to carry around in large quanities.

Once a ample amount of both A and B were gathered, he would spread the word that he buys B for A and buys A for B, People would now know that if someone drops 200 units of B in a trade window they can go get 10 units of A from the banker.

Set up like a real bank, store peoples A for them. So you would get their A and give them B to represent that they do infact own that many of A. But then why would they put any A in there when they can just store it themselves. So you would need to allow intrest to be gathered, which would be given in form of B. Now theres a reason to put A into the bank, because in the end youll end up with more if you save.

Now for the most part the only people caring about the banker are the people who need A to make stuff, so that group wants as much B as they can get. To everyone else B is just this magical worthless crap that gets them stuff from the crafters, and so they will value it.

Now where this falls flat is that, people can just dig up B and trade it in for the much more valuable A, therefore deflation would rise to insane levels and to the point where there is no more A at the bank, now the currency is worthless, and the banker is stuck with 2 million units of B which only sell to people who don't know its worthless yet. The only reason currency in real life works is because you cant dig it up in scrap heaps. Best way to counter that is to have a monoply on Resource B.


By the way, that 'group' I called crafters that value A would be your government. While the citizens would be the group that doesnt care why it works, it just gets them stuff. I dont think a single person could pull this off, it would need to be a large powerfull tribe I'm sure, and they would become the powerhouse tribe, and most likly the centre of trade.


If an powerful tribe was in on it you could offer services that require only manpower, for resource B. And in the end resource A would most likely be phased out and the base price on the currency would be set.

I dont think your example is going to get through to him either so we both just wasted our time on a rudimentary economics lesson that falls on shallow head.

[Gamefreak]

No, there's definitely no flaming here.

/end sarcasm

[Tehralph]

I dont think your example is going to get through to him either so we both just wasted our time on a rudimentary economics lesson that falls on shallow head.

Take your pathetic fucking insults elsewhere. I dont dare dream of what such a cowardly cunt look like to draw such conclusion from mere discussion. (Edit: I guess your signature says it all) Perhaps you think highly of yourself because you jest of others intelligence, but no matter. I know who am I, and can only feel pity for those who make such false accusations.

[eightonefive]

I don't think highly of myself, just lowly of you. :P

[Gamefreak]

This is actually becoming amusing, keep squabbling please.

>=)

[eightonefive]

I'm done squabbling. I was out of line for insulting his intelligence. and for that I apologize. It's completely not worth it. He didn't understand what I was getting at though. perhaps with a cooler head he can go back and reread my post and comprehend what I was trying to say. I also tend to forget that for some people on the internet english isn't their first language, and I need to excercise more patience.

[Tehralph]

I'm done squabbling. I was out of line for insulting his intelligence. and for that I apologize. It's completely not worth it. He didn't understand what I was getting at though. perhaps with a cooler head he can go back and reread my post and comprehend what I was trying to say. I also tend to forget that for some people on the internet english isn't their first language, and I need to excercise more patience.

I definately understood what you were trying to say, but the amount of people and dedication it would take to accomplish something like that is SOO far fetched and ridiculous it shouldnt even be brought up in discussion about currency. Because as I said, it doesnt matter what we use as currency, someone can create a monopoly regardless, so saying a monopoly would be created if we used nails or screws instead of dollars is a weak arguing point on your side.