Question: Hyperinflated USD might actually be happening now. Is there a contingency plan?

Dibbler

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Having experienced hyper inflation at ground zero (Zimbabwe), if the USD entered this state then EU would be the least of your concerns. The first weeks prices were rising maybe 50% a day, then 100% and the black market rate for hard currency went insane (official rate 60 zim $ to 1 GBP..... blackmarket went from 300 to 1000 to 5000 to 1 GBP), also wages stayed the same causing chaos. The second week to 2nd month shops emptied first at border towns and then into main towns and cities as people in bordering countries came in with good currency and literally emptied shops/stores/wholesalers due to black market rate of zim dollar, allowing those who were fast to buy things at extremely high discount as panic to get hard currency gained pace. Personally i bought antiques, gold and artwork as i had a good amount of hard currency at that time which served me well on return to UK, and ofc gave people i had worked with there hard currency to get out if they were able to bordering nations.

If US economy entered this state and the USD collapsed overnight many other currencies would also go in a domino effect , beginning with those pegged to the USD and then I guess hitting other world currencies/stock exchanges. I don't think will happen anytime soon as US has a strong economy/infrastructure, the first step though i would guess would be losing world trade currency status (which is already being planned for with a basket of currencies of which i forget name).

If you are really worried about hyper inflation, personally i would go for physically held gold.

Sidenote/disclaimer - I am not a financial conultant and should be taken as a viewpoint. If you are really worried talk to a financial expert
 
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Naomi

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Just inflation last year. I think this year it'll be even closer to hyperinflation and it's gonna be bad maybe. All the UFO's in the universe ain't gonna keep people from noticing that.
The way they keep the current average inflation of over 20% out of the charts is by adding deflation at the same time according to Kitco. Plenty of info on their youtube channel. There is several reasons to hide inflation.

Inflation is simple: your money buys less and less. The more money printed, the higher the inflation. The effect of money-printing however is time-delayed. The wages barely increase at the same time, or at least, increase less then the REAL inflation, not the made-up number the governments present. Economic estimates are that REAL inflation is up to 5 times higher then official inflation.

Official numbers: Source: https://tradingeconomics.com/united-states/inflation-cpi

united-states-inflation-cpi.png


Inflation for dummies:

infl.png


inflation-silently-robbing-you-of-purchasing-power-since-1913-20-00-7183969.png
 

Naomi

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crypto dont have inflation lol
Some crypto's are inflationary by design. The good ones usually are not, or they even are deflationary.
 
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Dibbler

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The way they keep the current average inflation of over 20% out of the charts is by adding deflation at the same time according to Kitco. Plenty of info on their youtube channel. There is several reasons to hide inflation.

Inflation is simple: your money buys less and less. The more money printed, the higher the inflation. The effect of money-printing however is time-delayed. The wages barely increase at the same time, or at least, increase less then the REAL inflation, not the made-up number the governments present. Economic estimates are that REAL inflation is up to 5 times higher then official inflation.

Official numbers: Source: https://tradingeconomics.com/united-states/inflation-cpi

united-states-inflation-cpi.png


Inflation for dummies:

infl.png


inflation-silently-robbing-you-of-purchasing-power-since-1913-20-00-7183969.png

Then there is PPI, CPI/CPI, less food and energy and PCE/Core PCE less food and energy, CPI-U, CPI-W ...... there are more but i forget them all. The real rate of inflation as you said is higher than the massaged CPI Governments world over quote daily. Worth a read for anyone seriously interested in how it all works, and also great for knocking down bar experts.... what about PPI and CPE inflation rates ..... errr wut . :D
Also the way the world money markets work is truly scary, when you look into the whole pictue it's a wonder it all works at all.

A very basic inflation type link, enough to dismantle the fake know it alls at the bar or whatever, most people only hear CPI and assume it's the only one.

 
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jambon

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It won't? I mean... As the USD value charges markups on items will too. TT value is arbitrary.
 

Aloisius

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well here we go now - stole post from gab - who is denying hyperinflation possible NOW>?

ℕ𝔼𝕆ℕ ℝ𝔼𝕍𝕆𝕃𝕋
@NeonRevolt

7h·
I don't think people realized what just happened over the past few days, so I'm going to try to explain what I'm seeing:

The Russian central bank pegged 1 gram of gold to 5000 Rubles (currently, about 50 bucks).

At the same time, Putin made it so that Russian gas and oil can only be purchased in Rubles.

Meaning: Putin basically just pegged Russian oil and gas to gold, using paper rubles as a proxy.

Meaning: Europe will need to either buy Rubles from Putin in gold, in order to buy gas and oil, or they will have to buy directly in gold. Which means, there will soon be a lot more demand for rubles.

Currently, the forex rate for rubles to dollars is about 100:1.

But... with 5000 rubles now equaling 1 gram of gold, and oil being priced directly in gold - you're going to see a massive price disruption in these FOREX markets, in terms of how much gold a dollar can actually still buy.

Foreign countries holding our dollar debt notes in reserve will see less of a use for them, and will want to start dumping them, in order to get something more stable, something which holds its value.

Basically any currency pegged to gold now will fit the bill. Which means those countries - countries like Japan - will be dumping their dollar debt as fast as they can. They're are NOT going to go down with the ship. And they will move into more stable currencies - like the Ruble.

Which will have a deflationary effect on the Ruble, making it more valuable over time.

Which means Putin will be able to re-peg the Ruble to Gold at whatever rate he wants, down the line. It's 5000 rubles today. Tomorrow, it might be 500. And then 100. And then 10.

This also means all those excess dollars being dumped by foreign nations are about to come home and cause even worse hyperinflation than we're seeing.

Is it any wonder Biden is up on stage pleading with Europeans for regime change in Russia? He's about to have masses of angry and starving people marching through the streets here at home, demanding answers.


 

Naomi

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On the other hand, do you think it is the intention of Entropia to be a safe investment?
Remember the item bubbel before vu9? Things crashed hard after that. (Mod fap 300k anyone?)
Remember Tailoring? Blueprints went for over 30k (like master coat).
Remember Texturing?
Remember 1.0 weapons?
...
Many things seem inflationary by design here.
True, the last couple of years have been better.
 

MrFatBoy

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well here we go now - stole post from gab - who is denying hyperinflation possible NOW>?

ℕ𝔼𝕆ℕ ℝ𝔼𝕍𝕆𝕃𝕋
@NeonRevolt

7h·
I don't think people realized what just happened over the past few days, so I'm going to try to explain what I'm seeing:

The Russian central bank pegged 1 gram of gold to 5000 Rubles (currently, about 50 bucks).

At the same time, Putin made it so that Russian gas and oil can only be purchased in Rubles.

Meaning: Putin basically just pegged Russian oil and gas to gold, using paper rubles as a proxy.

Meaning: Europe will need to either buy Rubles from Putin in gold, in order to buy gas and oil, or they will have to buy directly in gold. Which means, there will soon be a lot more demand for rubles.

Currently, the forex rate for rubles to dollars is about 100:1.

But... with 5000 rubles now equaling 1 gram of gold, and oil being priced directly in gold - you're going to see a massive price disruption in these FOREX markets, in terms of how much gold a dollar can actually still buy.

Foreign countries holding our dollar debt notes in reserve will see less of a use for them, and will want to start dumping them, in order to get something more stable, something which holds its value.


Basically any currency pegged to gold now will fit the bill. Which means those countries - countries like Japan - will be dumping their dollar debt as fast as they can. They're are NOT going to go down with the ship. And they will move into more stable currencies - like the Ruble.

Which will have a deflationary effect on the Ruble, making it more valuable over time.

Which means Putin will be able to re-peg the Ruble to Gold at whatever rate he wants, down the line. It's 5000 rubles today. Tomorrow, it might be 500. And then 100. And then 10.

This also means all those excess dollars being dumped by foreign nations are about to come home and cause even worse hyperinflation than we're seeing.

Is it any wonder Biden is up on stage pleading with Europeans for regime change in Russia? He's about to have masses of angry and starving people marching through the streets here at home, demanding answers.


and how is all your forecasting coming along?

did you really call the ruble a stable currency - lol
 

Mac

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are you sure you want to get into celcius these days?
:LOL: Nope! I'll be happy if I can get out what I had there - if ever! Such is the life of chasing yield in a high risk asset class. It wasn't "more than you can afford to lose", just an experimental amount - a fraction of what I hold in cold storage, but nobody like to lose. They are diligently paying off their debts from what random posts I see from people tracking it. It ain't over until the fat lady sings, all I'm hearing is noise. Let's see what happens. :tiphat:

Afternoon edit: Ooops! The Fat Lady sings!
Embattled crypto lender Celsius informs state regulators that it’s filing for bankruptcy ‘imminently,’ source says
PUBLISHED WED, JUL 13 20227:03 PM EDT
https://www.cnbc.com/2022/07/13/emb...g-for-bankruptcy-imminently-source-says-.html
(n)
 
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wizz

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I have been thinking about this for some time now. I've asked soc mates and others how hyperinflation would affect this game. No one seems to think it's possible. But in the real world almost every financial news advisory is warning people to get gold, silver or bitcoin. I'm quite sure they are right. Now, since EU's economy is intricately related to the USD currency, how will hyperinflation affect us and the RCE in Entropia Universe?

Might be interesting to look into this again.
For as it is now, it's the opposite around!
The dollar is getting stronger and stronger.
For the European player Entropia became more than 25% more expensive to plays since last year.
For those wanting to cash out, it's nice, because they get an extra 25% bonus when paid in Euro's.

How will this effect the game?
Will EU players depo less now because of the horrible current exchange rate?
Will EU players now be tempted to take their money out and take this 25% bonus?
What if the dollar rises even further?
Which EU player will pay 400 euro for a CLD for example?

I got a pending with drawl which I wanted asap in my bank account.
But as it is now, for each day MA takes longer I get 1% extra!

How do other EU players look at this?

Some numbers:
May 21. EUR/Doll 1,22
Sept 22 EUR/Doll 0,97
 
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I Ruskov I

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For european people game as became more expensive
I assume 75% of player base is come from europe ?
Just look at some items price arround .. -10 -20 -30 % or so today compared of 6 month ago
Not the only fact but the change of rate currency matter a lot
 
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