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Ingame Price Deterioration and Effects of IRL Currency

J

Joker

Marauder
Joined
Jan 19, 2006
Posts
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BAHQ
http://finance.yahoo.com/echarts?s=...=on;ohlcvalues=0;logscale=on;source=undefined
almost 1.6 now 1.23

23% deterioration

http://finance.yahoo.com/echarts?s=EURUSD=X#symbol=EURUSD=X;range=1y;compare=

Recently the Euro was 1.51+ now its 1.23

around a 20% diffrence... now this could be a good thing or bad thing...

1 with future Euro weakness... do people depo and get Peds/USD while the Euro still holds a decent value... or do they sell their items in game and get 20% more Euro...

5 months ago or so say you bought an item for 150k... you can sell that item in game for 130k and convert your Ped to USD then Euro and get 156k... or a profit of 600$...this might be the reason why a lot of your items have lost value over the past months... coupled with european country problems...
Say a mod fap was 400k
A person using the Euro could sell for 320k and get around the 400k ped asking price once they convert...


So if your in EU zone... are you worried about further deterioration in the Euro... or it going extinct? do you depo into EU to get the Peddies... which are essentially USD to protect against any future fall in Euro... It is a fact that this easy monetary policy should weaken the Euro... because of printing monies which increases the money supply...


Or do you sell your in game assets like many have done recently and "buy back" your cheap euro you depoed months ago...

For US people and other countries that are fixed to USD... this wont effect you that much
 
for me it's very cool!! dolar should be even stronger than euro:)
 
travolta said:
for me it's very cool!! dolar should be even stronger than euro:)
Click to expand...

in the same breathe if someone from Euro zone were to depo they get even less peds then they were used to a few months ago ;) but who knows what it will be like next month ;) could be even worse
 
Joker said:
So if your in EU zone... are you worried about further deterioration in the Euro... or it going extinct? do you depo into EU to get the Peddies... which are essentially USD to protect against any future fall in Euro... It is a fact that this easy monetary policy should weaken the Euro... because of printing monies which increases the money supply...
Click to expand...

Both the euro and the usd is VERY likely to plumet sometime "soon" soon ie a few years, the euro is starting now but the usd will come for sure aswell. This is due to the "save the economy" stuff eu and the us has done. What they done is to solve the current crisis which was created by the same solution they used now. This leads to just another bublle, but this time it's a WHOLE lot bigger. When this next bubble goes pop well i hope u dont have any loans etc cause the world is gonna plummet. So far i'm happy with living in sweden though as we dont use the euro yet, and i hope we never will as one of the biggest reason we swedes felt so little from the past crisis in the economy is just because we dont use euro :D

So for me if the usd plummets woohoo for my eu spendings :p
 
There was a new article in wall street journal or some other finance paper, concluding that the Norwegian krone, would be the most stable currency the next 5 years.... As of today the euro has never been weaker Vs. NOK. and the USD is just alittle over what it was 2 years ago, when it was ATH low VS. NOK.



barrel.jpg


Cheers!​
 
Legion said:
Both the euro and the usd is VERY likely to plumet sometime "soon" soon ie a few years, the euro is starting now but the usd will come for sure aswell. This is due to the "save the economy" stuff eu and the us has done. What they done is to solve the current crisis which was created by the same solution they used now. This leads to just another bublle, but this time it's a WHOLE lot bigger. When this next bubble goes pop well i hope u dont have any loans etc cause the world is gonna plummet. So far i'm happy with living in sweden though as we dont use the euro yet, and i hope we never will as one of the biggest reason we swedes felt so little from the past crisis in the economy is just because we dont use euro :D

So for me if the usd plummets woohoo for my eu spendings :p
Click to expand...

although US is currently best in breed... people are running to American assets and currency... China slow down... Euro problems... American companies are having record profits and our economy is growing... over the next few years it could change

The great thing people seem to forget is the "bailouts" these companies took... The american govt, thanks to Bush, now have significant ownership stakes in companies such as Citi at 1.15$ a share i think 43% ownership along with interest payments... Majority of these companies "we" invested in have increased in value 2-4x ;)

over the long term who knows what happens... sterilized vs unsterilized intervention

but one thing is for certain we are spending far too much...
Debt to GDP is rough... almost no real way to pay out of it... except print money... which is lessen the value of the currency... that or give away land for debt
 
Kimmi said:
barrel.jpg


Cheers!​
Click to expand...

As u know oil is traded in $$ so as interest rates increase... and dollar gets stronger... oil will get weaker and weaker... and with the push for alternatives... cause that rig blow up... who knows where oil will go ;) one thing is for certain not to 200$ anytime soon... unless they ban drilling off the coast... which wont happen... i say Drill drill drill
 
Joker said:
As u know oil is traded in $$ so as interest rates increase... and dollar gets stronger... oil will get weaker and weaker... and with the push for alternatives... cause that rig blow up... who knows where oil will go ;) one thing is for certain not to 200$ anytime soon... unless they ban drilling off the coast... which wont happen... i say Drill drill drill
Click to expand...

actually, more and more oil is traded in euro... but most oil is still traded in usd. Oil will prolly not go up to 200$ any time soon, but who knows. Its still nice to have alot of it :D
 
European economy is weak, and the USD is still the reserve currency. I think we will see movement to parity on EUR/USD within this year. Thus the Euro will be weaker, the Euro based players will get less PED for their deposits, and the market will adjust downwards.
 
Kimmi said:
actually, more and more oil is traded in euro... but most oil is still traded in usd. Oil will prolly not go up to 200$ any time soon, but who knows. Its still nice to have alot of it :D
Click to expand...

oil is dollar based... unless its brent...
so though it might be bought with euros... it has to be converted to $$$ same with other commodities...
Gold... silver... copper... Nat gas... Oil(light crude) u name it... anything with $$$ next to it is USD ;)
 
Kombinator said:
European economy is weak, and the USD is still the reserve currency. I think we will see movement to parity on EUR/USD within this year. Thus the Euro will be weaker, the Euro based players will get less PED for their deposits, and the market will adjust downwards.
Click to expand...

:(:(:(:(

that is what i was thinking too UNLESS the player base grows... then all bets are off ;)
 
Kimmi said:
actually, more and more oil is traded in euro... but most oil is still traded in usd. Oil will prolly not go up to 200$ any time soon, but who knows. Its still nice to have alot of it :D
Click to expand...

This is a good thing!! I live in Alberta where we are sitting on a good supply of oil. This is the main reason that Alberta hasn't been hit too hard, economy wise.... It is also one of our main sources of income.... But when oil does drop... We'er hooped.... :eek:
 
Joker said:
although US is currently best in breed... people are running to American assets and currency... China slow down... Euro problems... American companies are having record profits and our economy is growing... over the next few years it could change

The great thing people seem to forget is the "bailouts" these companies took... The american govt, thanks to Bush, now have significant ownership stakes in companies such as Citi at 1.15$ a share i think 43% ownership along with interest payments... Majority of these companies "we" invested in have increased in value 2-4x ;)

over the long term who knows what happens... sterilized vs unsterilized intervention

but one thing is for certain we are spending far too much...
Debt to GDP is rough... almost no real way to pay out of it... except print money... which is lessen the value of the currency... that or give away land for debt
Click to expand...

It's just those bailouts and stuff i was talking about, saw a documentary about it and why it happened. As i said in my post they made a big bubble earlier and blew up the economy, the bubble bursted and now they are saving it the same way they did the last time, ie they are making a new bubble but even bigger. And that one will pop aswell and they say it's likely to be quite soon.

Kimmi said:
actually, more and more oil is traded in euro... but most oil is still traded in usd. Oil will prolly not go up to 200$ any time soon, but who knows. Its still nice to have alot of it :D
Click to expand...
Well they say the current oilreserves with our current spending aint even gonna last more than between 20-40 years.
 
Joker said:
oil is dollar based... unless its brent...
so though it might be bought with euros... it has to be converted to $$$ same with other commodities...
Gold... silver... copper... Nat gas... Oil(light crude) u name it... anything with $$$ next to it is USD ;)
Click to expand...

It is not that black and white, a company or cuntry can sell oil or gold or hats in that currency they want. I told you the most common by far is USD, but some sell in euro. I have no clue what silver or copper sells in, or ligh oil... counldnt careless :)

I know $ meens USD, did you know £ meens Pound ;)
 
Are you planning to buy something and want it cheaper ? :)
 
Ive been tracking the Euro / USD movement for some time now, and what I can say is that Euro is loosing in average 0,7% / day. For ppl from the Euro zone who have PED tied up in game its a good thing, since basicaly they earn almost 5 euro / day per 1k PED.

As far as I can see is the crisis in greece just a begining, portugal, spain, italy and some other european countries are also on the edge atm. The european union has accepted a saving measure of pumping 750 billions (virtual) Euros into the system in order to save the Euro. But, releasing this much money without any back up means a sure inflation...

What I can see in some close future is 1:1 Euro/USD ratio, or even weaker euro, so whoever has some brain from the euro zone should consider depositing, or easier buying USD and than selling it off in some close future ;)
 
All these currencies are in trouble to a greater or lesser degree:

$
£
€

You never hear of the far eastern countries being affected by the global banking meltdown, so I'd consider those safe(ish), and with gold at yet another all time high, that.

We saw threads like this 18 months ago and we are all still here.

I'm leaving my Ped where it is anyway.
 
Joker said:
Volcker: The Euro Is on the Brink of Extinction
http://finance.yahoo.com/tech-ticke...5997.html?tickers=euo,gld,tlt,tbt,dia,spy,xlf

http://en.wikipedia.org/wiki/Paul_Volcker
Click to expand...

volker and his kind, the vultures if you wish, have been saying this since the euro's conception, if not before.
it is in his interest to say this.
the euro is one of the biggest dangers to the dollars status as a reserve currency, and having this status allows the USA to print dollars at the rest of the worlds expense.

until the euro's latest troubles the dollar was heading for junk status with china in position to sweep up american assets with its otherwise worthless dollar holdings.
 
The chinease peoples are behind this conspiracy i know it..... They are lowering the Euro so they can take over the whole world economicaly.... Next is Web Warfare!!!!

So anyways... Is my PED Safe?
 
AtamiKiangola said:
Are you planning to buy something and want it cheaper ? :)
Click to expand...

that`s what i was wondering about all the time... rofl
Well anyway I don`t depo atm anyway so it doesn`t affect me... then again I might start to depo sooner or later to be able to chip in... that would mean that I get less PED to chip in but skills with very lowish MU... so np.

I`ll most likely depo when the financial help for Greece gets an effect on the market and before everyone notices that spain is as fucked up as Greece... ;)
 
this thread is a joke. maybe because is made by a guy named Joker ?
first it should have been moved to "General Economy Discussion" or deleted since it inolves real life politics. rule 3.6 . you know it's political economy not just economy . but since we are bending the rules let's bend them a little more .
hell no, i am not specialist in economy but i can smell some BS here .
relax , euro isn't in the brink of extinction .
and US $ is not having the peak of it's history .
let's make it clear : it's all politics , philosophy and mathematics ... but there is no science , lol .
if it would be science things would be more simple and more predictable.
you (in general , not the OP ) can say you are capitalist , socialist or comunist - that's politics.
everybody has ideas about life in general and about how other should live their lives , that's the philosophy , lol .
finance now has some complex mechanics than it had 100 years ago , and it's so complex , that even those involved don't understand it completly . here is the mathematics, lol .
can be distinguished a true joy in first post about euro decay.
well pal , as i said it's all about politcs . in in western Europe there is enough political will to keep Euro alive and to make it strong.

now let's make some text analysis :
travolta said:
for me it's very cool!! dolar should be even stronger than euro:)
Click to expand...

oh really ?
Portugal has Euro as currency and if Euro gets weaker and weaker your people will loose true power to buy things and won't be happy . maybe you have other income , foreign resources , but for the rest, things might not be pink .
so for you who enjoy Euro decay :
"Portugal may soon follow Greece " (May 04, 2010 )
http://bigpondnews.com/articles/Finance/2010/05/04/Portugal_may_soon_follow_Greece_458253.html

now another masterpice about how strong is US $

Joker said:
although US is currently best in breed... people are running to American assets and currency... China slow down... Euro problems... American companies are having record profits and our economy is growing... over the next few years it could change

....................................................................................

but one thing is for certain we are spending far too much...
Debt to GDP is rough... almost no real way to pay out of it... except print money... which is lessen the value of the currency... that or give away land for debt
Click to expand...


yep Chinese are slow ... in collecting their debts from US .
"China holds more U.S. debt than indicated" ( March 2 , 2010 .)
http://www.washingtontimes.com/news/2010/mar/02/chinas-debt-to-us-treasury-more-than-indicated/

about the money printing machine you are right . probably one of the few things true . take a look at US debt here
http://www.creditloan.com/infographics/wp-content/uploads/2010/04/nationaldebt.jpg

i am tired of political crap , like socialism sucks , capitalism rulez , free market (yep look at state intervention to save a lot of private companies just like socialist state and what example would be suited ... ? AIG !)
who will follow Greece ? etc . enough BS . more truth please .
 
Medusa said:
As far as I can see is the crisis in greece just a begining, portugal, spain, italy and some other european countries are also on the edge atm. ;)
Click to expand...

greece contagion ;)
i think ECB & Central Banks stopped this problem when they launched the $1 Trillion Dollar EU bailout.
 
Nice topic you are lifting,

To sum it up; if you got 20k+ peds ingame you should either withdraw now or invest those peds in an decent item.

Worst you can do is just having the peds on the account.

Future estimation, $ will drop and prices will go up on ingame items again. Your future withdrawn peds will be worth less.

Did I understand it right?
 
mantra said:
PED should be attached to Euro.

Many believes USD will crash soon.

usd1.jpg
Click to expand...

with out getting speculative... i can assure you the dollar wont "crash" anytime soon... the exact opposite... you will see dollar strength continue for a while... because US assets are becoming more attractive...while the rest of the world is having problems the US is out of the recession... with the last few quarters of GDP growth... and job creation... record earnings... people will rotate outta rest of world assets and buy up US assets and currency to do so... along with the raising of interest rates sooner or later... and the pull back of the money supply the FED has already started to draw down the excess liquidity off the market... all of these factors will increase the value of the dollar...

decoupling ;)
 
I feel like watching "Zeitgeist", alot of clueless noise.

As for the topic, I am most curious on what mechanism does MA use to balance ingame PED mass with USD/SEK variation.
 
Kerham said:
I feel like watching "Zeitgeist", alot of clueless noise.

As for the topic, I am most curious on what mechanism does MA use to balance ingame PED mass with USD/SEK variation.
Click to expand...

or what kind of hedging strategies they use... if any
 
Medusa said:
so whoever has some brain from the euro zone should consider depositing, or easier buying USD and than selling it off in some close future ;)
Click to expand...

I would guess it would be easier and cheaper to just buy the currency then pay the fees depo'ing in game, then paying another fee to withdraw, and then waiting 3 months or whatever it is for MA to get around paying you.
 
Fredy Olafson said:
this thread is a joke. maybe because is made by a guy named Joker ?.
Click to expand...

I assure you this is no joke...
you may ask if i am qualified to talk about this crap... i dont know... but i am an academic economist...i graduated from college with several majors, one of which included economics...i put it to use each day... i have been studying economies for the last 12 years... and part of my IRL investing strategies involve economic forcasting stuff...

This is my only means of income ;) and i do rather well... so the things i have outlay here are not a joke but observations... and future possibilities... based on economic theories that are taught and proven
 
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