Ingame prices head lower... for high end items?

Joker

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with recent issues with EU(not the game) the euro zone...

greece possible leaving the euro... thus creating less demand for it and increasing the value of dollar...
issues with italy and other countries...

"Euro Plunges Against U.S. Dollar on Italian, Greek Leadership Uncertainty"
http://beta.finance.yahoo.com/news/...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

"Italy at breaking point, Merkel calls for "new Europe""
http://beta.finance.yahoo.com/news/...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3



either way hear me out... if Euro falls 20%... peolpe can sell goods 20% cheaper and withdraw (this has already happened a time or 2 in EU history)

for example... an item worth 100k peds can be sold for 80k peds instead and withdrawn... and have the same effects... would be as if a person from Europe sold for 100k peds even though it was sold for 80k peds :)

people from americas and other zones that done use euro will not be effected...

what do u think?
since politics can easily be brought into this... please stick to economic talks only,,,
 

Joker

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i am not advocating for this to happen... i am just saying this is a strong possibility
 

Sofia

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Well, high price EU items are on a constant downwards slope anyways so I totally see this happening.
 

Joker

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Well, high price EU items are on a constant downwards slope anyways so I totally see this happening.

the only thing(s) that could offset this from happening is...

Euro doesnt fall...
Large inflow of users into the entropia universe... (thus creating more demand for items in game)
 

FruSnabel

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I am not really sure what you are trying to say with this...

But, as with all international businesses you have transaction exposure, then there will always be arbitration possibilities when a foreign exchange is taking room.

I have done it myself in EU, deposited when low exchange rate USD/SEK (swedish currency) and withdrawn when the USD/SEK has been prefferable for me.

I don't see this as a problem, I see it as a possibility. The prices in EU has never had to with the ingame supply/demand but with a combination of supply/demand and the FX.

Macrofinancial risk is a very important thing, too bad people with a lot of items in game can't hedge.
 

Caramon

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A more important fact is that the player base is now trying to raise 60 Million peds for the huge pedsink that are the deeds.

Many people will be trying to sell stuff to cash in on markup and get hold of other peoples liquid peds.

It will be a buyers market until the deeds are sold and the economy adjusted after that. I expect pricefalls for that reason.
 

Skippie

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well if ppl prefer owning deeds to receive income they could take their chances dumping gear. if nobody uses the gear, i dunno how much peds the deeds return in ROI, either.

if europe dumps on the dollar, europeans can infact sell gear cheaper and get the same or more money, which last time caused a major correction.

i remember a british fella telling he that he could sell his imp fap he paid 300k ped for for 250k and still be "up."

stupid americans and our usd. :)
 

Joker

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i remember a british fella telling he that he could sell his imp fap he paid 300k ped for for 250k and still be "up."

stupid americans and our usd. :)

this is what i was saying :) i recall several occations where this was the case :)

we will see i guess
 

M Rufen Power

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Interesting thread, subbing. :popcorn:
 

Sircus

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The only thing thats keeping the dollar steady is the EU crises. It is for sure in USA interest´s that the situation in Europe keeps wobbling. Once the euro is stable again the dollar will plummet.


Very very shortterm there might be a window of oppertunity like you talk about Joker but with current withdraw times most people will probably miss it.
 
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Joker

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The only thing thats keeping the dollar steady is the EU crises. It is for sure in USA interest´s that the situation in Europe keeps wobbling (They do this by using IMF). Once the euro is stable again (regardless what action is taken against the debt countries) the dollar will plummet.


Very very shortterm there might be a window of oppertunity like you talk about Joker but with current withdraw times most people will probably miss it.

i actually see deflation for american on the horizon(increased value in dollar)... have you looked at the M0 M1 money supply? we need to be printing more money but we are not... and if interest rates every increase... so will the dollar

regardless of what happens to the Euro u will see dollar strength...

i guess we disagree that is what makes markets though eh :)

http://www.csmonitor.com/Business/L...028/Deflation-risks-rising-Nightmare-scenario
 
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Sircus

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i guess we disagree that is what makes markets though eh :)

Nothing wrong with that :)
I will just say shortly that the news just repeat what they are told by people who havnt grasped the big picture. Most people dont even know the real reason why the US currency is the strongest currency in the world regardless of how much debt they have.

The lack of the basic ABC understanding from their part always makes me frown when they spout of their homemade analysis. (Talking about reporters :) )
 
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Joker

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Nothing wrong with that :)
I will just say shortly that the news just repeat what they are told by people who havnt grasped the big picture. Most people dont even know the real reason why the US currency is the strongest currency in the world regardless of how much debt they have.

there are many reasons... and lots of conspiracies but the fact that we are the reserve currency and most commodities are traded in $s gives us a huge advantage

i dont want to get into monetary or fiscal policy since that might get to political... i will look at it from a economic stand point (which i have a masters in) and from an investment stand point (which has been my soul source of income for 14 years) and tell u what i see :) and that is dollar strength... with out a shadow of a doubt ;)
 

Sircus

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most commodities are traded in $s gives us a huge advantage

Indeed. You hit the jackpot here.

Do you see how the dollar could plummet if say oil producers wanted to be payed in € instead? xD
This illustrates the secret conflict of interest between the USA and Europe atm. In effect they want the € to wobble so producers will stick to the $. USA will do everything in their power to prolong the € crises as long as they can. (Atleast until they bought every drop of oil overseas ;) )

With Germany fighting back it will be interesting to see what will happen. There is a world war going on for sure, just not fought with guns.

Its hard to explain all the different domino effects different decisions could have. I would for example retract my first statement if Germany in effect surrendered and weaken the € (Will happen by kicking out some of the € countries). That day the USA market will skyrocket, dont be surprised.

The post you made earlier about us having different opinions probably boils down to me being a sucker who belives Europe will win and you belive the US will win, therefore the 2 very different endgame scenarios.
 
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smoothee

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"USA will do everything in their power to prolong the € crises as long as they can."

The United States has a lot of bargaining power all over the place but to imply that they are causing this or can do much to change the situation without actually loaning Greece/Italy a crapload money is, IMHO, overstating the position of the fed a tad. This is a European issue and will remain one.
 

Few Scars

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Hold steady with your items. We saw panic selling in the last crisis. Even if the EU is broken up, the USD will hold. The main issue is people are hesitent to invest Peds ingame when they can barely pay the bills in RL.

This game has survived 8 years thus far and is going strong. I say hold steady, dont sell your shit below MU as it effects us all.
 

Viperstrike

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We saw panic selling in the last crisis.

Yep, to all who don't know I lost ~ 6k usd due to this :( Yes 60k ped in markup reductions :(

So hold out for a while, it may be a very long while 3 - 4 years tbh, but if you can handle it, do it.
 

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well i'm just a simple redneck. i don't have much to weigh in on fiscal policy. in terms of eu, i'm currently selling out some things and reinvesting in upgrades. the distance between the good stuff and the very good stuff has never been closer. as a player that makes my living playing eu, i see an amazing opportunity to buy in, upgrade and expand your position in the rce regardless of IRL fiscal woes. people that need their money IRL more than they value what they have virtually, should sell out. people that want to succeed in eu should buy their stuff. whatever the euro is today doesn't effect me.
 

Viperstrike

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well i'm just a simple redneck. i don't have much to weigh in on fiscal policy. in terms of eu, i'm currently selling out some things and reinvesting in upgrades. the distance between the good stuff and the very good stuff has never been closer. as a player that makes my living playing eu, i see an amazing opportunity to buy in, upgrade and expand your position in the rce regardless of IRL fiscal woes. people that need their money IRL more than they value what they have virtually, should sell out. people that want to succeed in eu should buy their stuff. whatever the euro is today doesn't effect me.

hear hear :)

But Skippie, you owe all your old itemz to mez ;)

Ok maybe not, but I will take them never the less :D J/k mate, gl with teh upgrades :)
 

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there is an alternative, that a regrouped Eurozone of France+Germany+Holland+Belgium? and a few others comes out of this and the Euro is a lot stronger.
 
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the real problem wasnt Greece for quite some time ... the journalists and others were just taking the bait so the public opinion wouldnt change about EU zone and would just think "oky everyone screwed but if we can get the Greece out everything would be getting back to normal soon" ... and that was a great misunderstanding of what is going to happen ... Italy was a problem for quite a while yet noone reported on it that much ... yet they have similar debt in gdp yet greeces gdp is 300+ billion, italy has 2 trillion ... now who will have the bigger impact ....

oky enough about that ... € can get fucked ... that's for sure
 

Azrael

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my money is safe...I didnt invest in euros or dollars...I invested in PEDS !!!!
 

remontoire

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there is an alternative, that a regrouped Eurozone of France+Germany+Holland+Belgium? and a few others comes out of this and the Euro is a lot stronger.

Or maybe Norway joins EU and Euro.

Or ... really lots of things being proposed, many of which are not very likely.

Also, we are in November, and EU was going to break up due to Euro in August, or so lots of the financial analysts told us in June.
 
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