OOC: McMasterdonian economic collapse

mcmasterdonia

mcmasterdonia

Just like a queef in the wind, so is life
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TNP Nation
McMasterdonia
As some of you may have noticed/read on the RMB, my national economy collapsed a few days ago when I misread an issue and abolished the tax code. I thought that we could have some fun with this, so I'm looking for ideas an input.

Previous to this collapse, my economy had been at "frightening" levels for more than a year. Perhaps this could be a stock exchange crash, which causes a global financial crisis? Perhaps we could go into Grexit style discussions? Or perhaps this collapse could be the sudden result of a brutal assassination and/or terrorist attack.

Looking for ideas at this stage. Will decide how open the RP will be at a later date.
 
We could, in fact, do a region-wide economic crisis. We can assume that your nation is a modern nation that trades with the rest of nations in this region. If your economy suffers a meltdown, there's a good chance that the rest of us will feel it too.

Perhaps a speculative bubble of some sort? Ceretis knows more about economics than me; I'm sure he can explain it. Perhaps the economic disaster will lead to major corporations and banks closing and give potential to political unrest later on. Political unrest usually follows a few months after economic meltdowns.

Grexit? Grexit from what? Perhaps Mcmasterdonia has large debts to other countries which it cannot repay... but otherwise, we don't have a EU here, thank God.
 
When i said grexit, I more meant like a prolonged period of negotiation with many nations and those who we owe money to. I think a region wide economic crisis could be interesting, and it would get a bit unwieldy just like a real one.
 
Group of "tea-party" tax protesters gain enough power to force through the repeal of the tax code; first government projects stop ("the government is spending millions on renovating the public transportation system", "the government is financing an extremely costly war against malaria") putting thousands out of work, then your state-owned companies begin folding up. Then the businesses that rely on the products and services the tax dollars used to fund collapse, causing a major depression.
 
A grexit situation is more likely to occur with a single shared currency then national currencies in play. But the idea is intriguing...but really doesn't the tax code ony affect governmental coffers, not banking institutions or the general public?
 
Piscivore:
Group of "tea-party" tax protesters gain enough power to force through the repeal of the tax code; first government projects stop ("the government is spending millions on renovating the public transportation system", "the government is financing an extremely costly war against malaria") putting thousands out of work, then your state-owned companies begin folding up. Then the businesses that rely on the products and services the tax dollars used to fund collapse, causing a major depression.
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Good suggestions. I was thinking I could use this as a follow up to a RP with Eumenor that I need to follow up on. Perhaps after the chaos of the events in Eumenor, the Senate (i.e. tea party style idiots) cause a whole heap of trouble which leads to serious economic issues. This combined with economic uncertainty and that trading is not suspended for any period of time, could lead to major financial issues across the world.

New Aquilia:
A grexit situation is more likely to occur with a single shared currency then national currencies in play. But the idea is intriguing...but really doesn't the tax code ony affect governmental coffers, not banking institutions or the general public?
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That's true. I don't think it needs to be hugely linked to the tax code, but rather the general economic troubles that are going on in the nation. From a read of my nations profile, that one issue seems to have stopped all government projects as mentioned earlier. This has meant that the crime rate has skyrocketed and other social issues have become more prominent.
 
The Mcmasterdonian government pours large amounts of money into expensive projects and programs and spends great sums of money on welfare, bureaucracy, and non-growth sectors such as the military. The government runs up a hefty deficit. An economic bubble pops and suddenly the tax revenue dives and the government realizes it cannot pay back its debts. Negotiations continue over the money as political unrest rises.
 
New Aquilia:
...but really doesn't the tax code ony affect governmental coffers, not banking institutions or the general public?
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Directly, sure; but the government doesn't hoard that money, it spends it, on infrastructure, essential services (cops, firemen, etc), that not only pours all that tax money right back into the economy, but on things that make it easier for business to make money.

The only hoarders there would be the banking institutions, which is why Sadakoyama doesn't have "banking institutions"; banking is done on a karass level, (kind of like the Medicis), but highly regulated and highly taxed.
 
Hmmm, a good play on that then if crime has skyrocketed, what about a major sell off, due to lack of faith in the Livre that starts a major devaluation and inflation cycle like what could befall Greece still, think Weimar Republic type hyperinflation.

That could be the key where loans start defaulting.
 
Piscivore:
The only hoarders there would be the banking institutions, which is why Sadakoyama doesn't have "banking institutions"; banking is done on a karass level, (kind of like the Medicis), but highly regulated and highly taxed.
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It was my understanding that banks don't hoard money, they lend it out at interest. They even give interest to those who trust their money to the banks. Banks are a very important part of today's modern economic system, given that they effectively expand the available currency of the area. Economies can still exist without banks, but I'm kind of iffy on how exactly that would work, especially when it's highly taxed.

The whole lending money thing is why bank runs are so disastrous. The bank only has about 10-20% of their account holders' money available at any given time, so when everyone panics and demands their money back, the bank doesn't have the money.
 
Darcania:
Piscivore:
The only hoarders there would be the banking institutions, which is why Sadakoyama doesn't have "banking institutions"; banking is done on a karass level, (kind of like the Medicis), but highly regulated and highly taxed.
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It was my understanding that banks don't hoard money, they lend it out at interest. They even give interest to those who trust their money to the banks. Banks are a very important part of today's modern economic system, given that they effectively expand the available currency of the area. Economies can still exist without banks, but I'm kind of iffy on how exactly that would work, especially when it's highly taxed.

The whole lending money thing is why bank runs are so disastrous. The bank only has about 10-20% of their account holders' money available at any given time, so when everyone panics and demands their money back, the bank doesn't have the money.
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Yeah, I got carried away, "banks" aren't hoarders, but bankers often are. I'm still working out the details, but banking, especially earning a living just by collecting interest, is going to be culturally frowned upon. The university administration will of course have a central bank to control the money supply and to finance long term projects, but most smaller lending will be done by contract between individual families.
 
Shouldn't it be related to the current crisis in McMasterdonia, where the Queen dissolved the Senate? (And promised to call elections in January) It could be some kind of terrorist attack on the nation's financial capital.
 
Piscivore:
Yeah, I got carried away, "banks" aren't hoarders, but bankers often are. I'm still working out the details, but banking, especially earning a living just by collecting interest, is going to be culturally frowned upon. The university administration will of course have a central bank to control the money supply and to finance long term projects, but most smaller lending will be done by contract between individual families.
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Ok, that makes sense. Thanks for clearing that up.
 
plembobria:
Shouldn't it be related to the current crisis in McMasterdonia, where the Queen dissolved the Senate? (And promised to call elections in January) It could be some kind of terrorist attack on the nation's financial capital.
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I think it should be linked. A rise in unrest which leads to a serious amount of damage to economic confidence, this combined with everything else -rising debt etc, would be a recipe for disaster. I may finish off my previous RP with Eumenor which will flow into this.. So that there is more time to plan the more global aspects of it.
 
I think a lot of newer folks around here aren't too familiar with the McMasterdonian crisis. It might do you will to write a brief summary. (It'll help to refresh all our memories as well!)
 
Could tie in the potential conflict going on too...that could big another factor to tensions there. the slowing down of the economy worldwide
 
plembobria:
I think a lot of newer folks around here aren't too familiar with the McMasterdonian crisis. It might do you will to write a brief summary. (It'll help to refresh all our memories as well!)
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I was thinking that the best way to do this would be to finish the RP with Eumenor first. After that I would open another thread which would begin with an investigative piece of journalism that will cover the events in McMasterdonia over the last 18 months. This may include reference to democratic union debates, the rift between Mcmasterdonia and Malvad, as well as ongoing internal troubles. Towards the end it will mention ongoing economic uncertainty, rising debt, cost of living etc. This will lead into the economic crisis.

The Spokesman of Eumenor:
Maybe we could tie in this scenario with our RP we're resurrecting?
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Absolutely, I'll be in touch with you about how to best proceed from here.

For the economic crisis to havee a global impact, we will need other nations who will have big issues with their economies as a result of our issues. This could include stock market crashes, rising unemployment, all the fun stuff that comes with an economic downturn. We will also need to have some nations that will somehow manage to avoid most of the damage (suffer slightly) but manage to get some economic growth. What I don't think we should allow is too many nations to join the RP simply to talk up how awesome their economy is, or to make out that their economy is the best in the North Pacific.

What I am thinking is a general sign up thread. We could either allow people to select their preference, or we could have a sort of random lottery that determines which nations will suffer and which ones will not suffer as much. Open to ideas guys.
 
mcmasterdonia:
What I am thinking is a general sign up thread. We could either allow people to select their preference, or we could have a sort of random lottery that determines which nations will suffer and which ones will not suffer as much. Open to ideas guys.
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Would said 'lottery' consider the ongoing situations of the nations, such as my nation being through the destruction of it's capital etc.
 
No, by lottery I meant that I punch nation names into a generator and it gives me random results for each thing.

So possibly having people explain their situation might be a better option., and then allowing them to select their best option, with the OP making final determination about who gets involved and what is allowed to be posted.

My concern is that we will end up with 200 terrorist attacks, and millions of people dead, possibly multiple kidnappings, and all of that occurring during an economic summit over a huge crisis!
 
My country is just taking its place in the larger world; this involves a great deal of cultural shifting. Also, we have a relatively unsophisticated banking system which some people are going to want to change, and an economy which relies in large part on tourism, so we will not be unaffected. I'm going to open an OCC thread on this.
 
Let's keep the OOC thread regarding the economic crisis here for now (if you don't mind). Just until we've had some more time to brainstorm before everything gets separated and into thousands of little threads.

The RP with Eumenor will recommence tomorrow and then serious economic crisis RP planning etc can likely begin shortly.
 
mcmasterdonia:
Let's keep the OOC thread regarding the economic crisis here for now (if you don't mind). Just until we've had some more time to brainstorm before everything gets separated and into thousands of little threads.

The RP with Eumenor will recommence tomorrow and then serious economic crisis RP planning etc can likely begin shortly.
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I meant one to help me work out the Sadakhan economy as it stands now, so I have a baseline to work from. I think I need help with that.
 
Piscivore:
mcmasterdonia:
Let's keep the OOC thread regarding the economic crisis here for now (if you don't mind). Just until we've had some more time to brainstorm before everything gets separated and into thousands of little threads.

The RP with Eumenor will recommence tomorrow and then serious economic crisis RP planning etc can likely begin shortly.
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I meant one to help me work out the Sadakhan economy as it stands now, so I have a baseline to work from. I think I need help with that.
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Oh right. My apologies, please proceed then.
 
I don't know if this has been brought up already, but there's this big cold war between Syrixia and Nebula and their respective allies and it's choking the world in the grip of tensions controlled by the notion of Mutually Assured Destruction.

How would this fit into the overarching plot and time period of such cold war?
 
Syrixia:
I don't know if this has been brought up already, but there's this big cold war between Syrixia and Nebula and their respective allies and it's choking the world in the grip of tensions controlled by the notion of Mutually Assured Destruction.

How would this fit into the overarching plot and time period of such cold war?
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Maybe we could be a bit separate from the ongoing RPs of that sort.
 
The Spokesman of Eumenor:
Syrixia:
I don't know if this has been brought up already, but there's this big cold war between Syrixia and Nebula and their respective allies and it's choking the world in the grip of tensions controlled by the notion of Mutually Assured Destruction.

How would this fit into the overarching plot and time period of such cold war?
Click to expand...
Maybe we could be a bit separate from the ongoing RPs of that sort.
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I was thinking that too, yes; I just wanted to see what McM thought.
 
Syrixia:
The Spokesman of Eumenor:
Syrixia:
I don't know if this has been brought up already, but there's this big cold war between Syrixia and Nebula and their respective allies and it's choking the world in the grip of tensions controlled by the notion of Mutually Assured Destruction.

How would this fit into the overarching plot and time period of such cold war?
Click to expand...
Maybe we could be a bit separate from the ongoing RPs of that sort.
Click to expand...
I was thinking that too, yes; I just wanted to see what McM thought.
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Hmm, I wasn't aware that was a thing. Did many other nations agree to be choked in the grip of those tensions? It's one of those things that might be a bit iffy.

You could probably talk about how the economic issues of major world players has effected the ability of the two governemnts to continue to 'invest' money in their military and in weapons when many of their own citizens will lose a great deal of money, and potentially their jobs (assuming the nations involved in your plot agree to be effected by the economic crisis).

Really we don't want things to get too complicated, they can be interrelated, but there can't be god modding either.
 
Well, Nebula takes a more isolationist view with economic policies, trading almost exclusively with its allies. And anyone who trades with Syrixia is not going to be considered for trade.
 
Nebula:
Well, Nebula takes a more isolationist view with economic policies, trading almost exclusively with its allies. And anyone who trades with Syrixia is not going to be considered for trade.
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So you're people are probably already living on rations and starving to death anyway :P

In a really globalized world like ours it is more than likely that nearly every nation trades with Syrixia in some way or another.
 
mcmasterdonia:
Syrixia:
The Spokesman of Eumenor:
Syrixia:
I don't know if this has been brought up already, but there's this big cold war between Syrixia and Nebula and their respective allies and it's choking the world in the grip of tensions controlled by the notion of Mutually Assured Destruction.

How would this fit into the overarching plot and time period of such cold war?
Click to expand...
Maybe we could be a bit separate from the ongoing RPs of that sort.
Click to expand...
I was thinking that too, yes; I just wanted to see what McM thought.
Click to expand...

Hmm, I wasn't aware that was a thing. Did many other nations agree to be choked in the grip of those tensions? It's one of those things that might be a bit iffy.

You could probably talk about how the economic issues of major world players has effected the ability of the two governemnts to continue to 'invest' money in their military and in weapons when many of their own citizens will lose a great deal of money, and potentially their jobs (assuming the nations involved in your plot agree to be effected by the economic crisis).

Really we don't want things to get too complicated, they can be interrelated, but there can't be god modding either.
Click to expand...
In NS, Syrixia's economy is strong, however in terms of IC it can be moreso compared to All-Consuming and/or Frightening due to its large amount of allies, relationships, etc. and thus the power of its markets. Most other major Syrixian allies might be like this due to their economies and Syrixian assistance if needed, but I don't know. I'm just me, XD. Concerning Nebula, I'd ask him. It's his nation so I can't really give you an answer.

Anyways, back to the point. I do think the economic crisis would bring things down in Syrixia a bit to the point where they'd be a little concerning, but not too too much. Still, we would try to help your nation out of its hardships. :)

McM:
Nebula:
Well, Nebula takes a more isolationist view with economic policies, trading almost exclusively with its allies. And anyone who trades with Syrixia is not going to be considered for trade.
Click to expand...
So you're people are probably already living on rations and starving to death anyway :P

In a really globalized world like ours it is more than likely that nearly every nation trades with Syrixia in some way or another.
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@Nebula- Oh no you didn't.
 
My concern is that we will have too many nations wanting to be relatively uneffected by an economic crisis, and then it isn't really a global crisis as such. So we'd need nations to be willing to accept that their economies would suffer negatively. This is where a sign up and a random assignment by a generator could be useful.

Btw, I was probably not going to go down the path of having other nations bailing us out as such. just as an FYI.
 
mcmasterdonia:
My concern is that we will have too many nations wanting to be relatively uneffected by an economic crisis, and then it isn't really a global crisis as such. So we'd need nations to be willing to accept that their economies would suffer negatively. This is where a sign up and a random assignment by a generator could be useful.

Btw, I was probably not going to go down the path of having other nations bailing us out as such. just as an FYI.
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I'm always here for you c; *hugs*
Cronaal and Añola are doomed anyway.
 
plembobria:
Plembobria is most emphatically not choked in the grip of this "cold war."
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As far as I am concerned, Eumenor is not involved, other than through its treaty organisations and alliances, where it supplies minimal monetary aid and a few troops.
 
Naizerre would be heavily affected by any downturn in global (or even localised) markets, being heavily dependent on the strength of its luxury exports and financial services.

Nierr wouldn't be any more affected than it already is, as Edenism emphasises self-sufficiency and environmental health.
 
Añola would be detrimentally effected, it relies on exportation of gold, bauxite and small shipments of uncut diamond and already struggles with the lack of modern ideology and technology.
Cronaal's situation would simply be worsened, it's already facing a crash and the few-person government are struggling to keep a hold of the nation whilst Ganajarius is being built, Karandin is burning to the ground and Buskar is being researched by scientists.
 
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