Argonath Bank Financial Crisis

[Yasko]

We cannot even avoid being bankrupt in a freakin' game. 

LOL

[Benn]

This is what happen when TBA is the Mayor of the cities

[taseen11]

I think Trane should be able to give us some advise on how to tackle this, he has previous experience.

[Cofiliano]

This is what happen when TBA is the Mayor of the cities

Yeah, cause countries deficit or surplus in the budget, depends on Mayors...


Time to start IMF, too bad most of the cash is invested..

If I understood you correctly, the budget is already being financed by the profit of all businesses, so how wold raising taxes, raised value, its the same cash?

Also, does drugmarket 'spawns' money, or its coming from the bank? If it spawns, there's your solution, I figure you already know that.

[Sweeper]

Are you aware of how banking works?

Are you? You wanna start a so called crisis in two minutes and freeze all bank accounts. I have never even seen a budget either.

We pay tens of dollars for a simple hamburger, yet the tax must be increased.

[Gandalf]

The first solution is to roll the money presses, just like any country that is not bound to others does. It may cause hyperinflation with respect to import but luckily Argonath is mainly self-sufficient.
The next thing is to seek out if there is a leak within the economy. Is all money really recirculated oris a part still disappearing down a black hole? Remember the economy model was based on not a single ARD being deleted, if that is done all money deleted should go in to the bank.
When there is a low money if a property is sold the loan has to be paid, however new loans for properties can not be given. This will refill the bank funds as well.
Finally the base of the bank system has been growth, as it is in as good as any country in the world. If the amount of new citizens (who bring influx of money on immigration) falls behind there is no growth to fund the bank. It is there for the task of all citizens to encourage immigration.

[Cyril]

Maybe Bank shouldn't give out millions to truckers and nothing to the rest of the population.

[Benn]

Yeah, cause countries deficit or surplus in the budget, depends on Mayors...

Mayors would do anything to help the city grow, they can put taxes, open new jobs for people,build a financial environment in the city, help immigrants acclimate in their cities...
Mayors can do alot to help the city budget...and the cities budget are the country budget

[Gandalf]

Mayors would do anything to help the city grow, they can put taxes, open new jobs for people,build a financial environment in the city, help immigrants acclimate in their cities...
Mayors can do alot to help the city budget...and the cities budget are the country budget

On the other hand.... the people working at jobs have to be paid, running a city hall costs money in most cases.
I just heard that my budget will be shrunk as well, my Argonath vodka consumption has to be limited to one bottle a day.

[Andeey]

Maybe Bank shouldn't give out millions to truckers and nothing to the rest of the population.

Honestly trucking should be removed till it's used to supply stock to business owners, and the Drug system should be a good income for people wanting money.

[Exterminator]

You could also issue treasury bonds.

Auction off large amounts of bonds at different time periods at a percent of their price, and have the bonds pay off as they mature.
Eg: Selling a bond for 980$, paying 1000$ when it matures.

Most players wouldn't mind buying these bonds, as they're pretty secure and are better than just having cash in hand. At the same time, it gives the bank some breathing room. I'd prefer this over international bailouts

[Marcel]

You could also issue treasury bonds.

Auction off large amounts of bonds at different time periods at a small percent of their price, and have the bonds pay off as they mature.
Eg: Selling a bond for 980$, paying 1000$ when it matures.

Won't work if the bonds cannot be paid for to begin with. Somewhere, money needs to be inserted, and it's obvious the bank needs some oversight/control to properly adjust to lower income situations.

[Ramis]

We, Greeks, are cursed. There is no other explanation. We cannot even avoid being bankrupt in a freakin' game. 

This^ 

[Exterminator]

Won't work if the bonds cannot be paid for to begin with. Somewhere, money needs to be inserted, and it's obvious the bank needs some oversight/control to properly adjust to lower income situations.

Bonds here are intended to provide immediate relief. IRL When banks close, the economy spirals down the drain. The government issues Bonds to reopen the banks and ensure that they don't go down the drain.
Plus, they'd be great instruments for roleplay. Bonds can be sold before they mature to somebody else, creating a whole new economy to rival the share market. Not to mention the fact that bonds can be easily scripted and would probably be online in less than 24 hours (For the time being, all that really needs to be added is for them to become an 'item', and some way of giving them to players. Be it selling them inside the bank or admins/companies holding auctions to sell and transfer them), creating a instant new commodity to trade.

[PulseEffect]

There needs to be a implementation of some sort of monetary policy, as Gandalf mentioned.. the central bank should start adopting measures to print money as well as possibly setting an interest rate for loans.

The first solution is to roll the money presses, just like any country that is not bound to others does. It may cause hyperinflation with respect to import but luckily Argonath is mainly self-sufficient.