OOC: McMasterdonian economic collapse

McM and I are in the process of planning the events that will lead to this depression. What will begin a localised issue will quickly spiral out of control.
It may be worth saying that we intend to make some 'bad' things happen in order to enrich the roleplay environment. I myself will be sacrificing a lot of what I've worked for over the last year. While most of you won't come off as badly as I will (seriously, you're all going to hate me), please don't refuse to feel the effects of this depression.
 
plembobria:
Plembobria is most emphatically not choked in the grip of this "cold war."
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In terms of how people RP, most RPing nations (at least in TNP) fall somewhere between great and middle powers - our world has a lot of centers of power, and basically anybody can RP as one if they choose to (but not everyone does). Without superpowers, cold wars don't mean all that much globally - the best Syrixa and Nebula could do is arrange to be regional powers (within regions of the map, not within the region of TNP), with their cold war affecting weaker nations within their spheres.
 
The Spokesman of Eumenor:
McM and I are in the process of planning the events that will lead to this depression. What will begin a localised issue will quickly spiral out of control.
It may be worth saying that we intend to make some 'bad' things happen in order to enrich the roleplay environment. I myself will be sacrificing a lot of what I've worked for over the last year. While most of you won't come off as badly as I will (seriously, you're all going to hate me), please don't refuse to feel the effects of this depression.
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Just to bump this thread and this particular point.

You may have noticed that the State Visit thread has started up again. We hope to have this finished with some more serious implications by the middle-end of next week. We expect some of these events will lead to more activity in the economic crisis RP, as well as in SOME of the major organisations. We intend for there to be some mystery surrounding the events, mystery creating more uncertainty.

For the purposes of this RP, the cold/nuclear war between Syrixia et al will not be considered and no reference will be made to it in a global sense or claims made that the whole world is involved in said war. We also hope that those who choose to participate will not choose to start bombing each other. Finally we don't want any claims of super power status, nor do we want any nation to start randomly throwing money at other nations without proper consideration being given or discussed.

AFAIK Nations who have expressed an interest to participate are as follows:
McMasterdonia
Eumenor
SillyString
Nierr (Naizerre?)
Plembobria
Kannex
Piscivore
New Aquilia
Cronaal

Nations who have commented/asked questions, but I'm not sure about:
Darcania
Syrixia
Lord Lore (On IRC).

If anyone else wants to get involved please let me know. If your name is mentioned incorrerctly, let me know, etc.
 
mcmasterdonia:
Okay, I'm just going to list forum names for now as it's the OOC thread. :P
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That's cool.

On another matter, Eumenor, can that giant picture in the first post be shrunk or spoilered? Makes the thread really hard to read.
 
Syrixia may lend economic assistance to countries affected; as by nature we are a very selfless people. We like to help others.
 
mcmasterdonia:
Nations who have commented/asked questions, but I'm not sure about:
Darcania
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I only sought to clear up a question with Piscivore; sorry, but as I am on leave from RPing, I'm afraid I won't be able to take part in this RP. :)
 
Looking forward to it...bombs in this day and age for rp's don't float my boat, but this specially given its timing is perfect.
 
Syrixia:
Syrixia may lend economic assistance to countries affected; as by nature we are a very selfless people. We like to help others.
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All economic assistance comes with strings attached.

Edit: Syrixia, if TNP were an actual place, your nation would definitely be affected by this. You say that "Syrixia has a strong economy because of trade alliances." If that is true, then your economy would be connected with all of your trading partners'. I'm not forcing you to have a crisis, I'm saying that, if several economically powerful nations had a financial collapse, one nation wouldn't be left standing to dole out funds to the rest.
 
plembobria:
Syrixia:
Syrixia may lend economic assistance to countries affected; as by nature we are a very selfless people. We like to help others.
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All economic assistance comes with strings attached.

Edit: Syrixia, if TNP were an actual place, your nation would definitely be affected by this. You say that "Syrixia has a strong economy because of trade alliances." If that is true, then your economy would be connected with all of your trading partners'. I'm not forcing you to have a crisis, I'm saying that, if several economically powerful nations had a financial collapse, one nation wouldn't be left standing to dole out funds to the rest.
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This is partly why we need a randomiser.
 
I have no doubt that Guslantis would be affected. The Minister of Finance, Minister Baldwin, will be a central figure in the story, and will be investigating additional lost funds over the crisis, suspecting his senior Ministry staff, known for corruption, is stealing it.
 
Syrixia's economy is actually built off many different things, such as industry, tourism, trade, etc. While tourism is pretty infamous there is no one single thing, financially, that Syrixia excells in more than the others. It's like if someone's blind; and the other senses are improved to compensate. Syrixia will find a way.

EDIT: I don't think we'd be totally unaffected and "dole out funds to the rest", I just think that Syrixia would be one of the nations that would be less affected. We'd still be affected.
 
Syrixia:
Syrixia's economy is actually built off many different things, such as industry, tourism, trade, etc. While tourism is pretty infamous there is no one single thing, financially, that Syrixia excells in more than the others. It's like if someone's blind; and the other senses are improved to compensate. Syrixia will find a way.

EDIT: I don't think we'd be totally unaffected and "dole out funds to the rest", I just think that Syrixia would be one of the nations that would be less affected. We'd still be affected.
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Tourism is the first industry that crashes in economic crisis. (See: Greece). I really suggest you read up on macroeconomics. Nations that are initially less affected will be slowly dragged down as well. This happens because their stable economies produce higher demand from foreign investors, which can lead to deflation.

In terms of economic aid, are you referring to loans, or free money? Because if you intend to send money to economies in need, that can have poor effects on your currency's value.

That said, I'm not forcing you to do anything.
 
plembobria:
In terms of economic aid, are you referring to loans, or free money?
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I was thinking loans; which would be paid back once the loanee's economy got back on its feet.

(However Helmebaine nations might get some free moolah. :shifty: )
 
I think most states would simply bail out their big corporations, not sure we'd get to the point where states would bail out other states unless it was in their interest to do so. As Plembobria said, it would come with strings attached and given that all economies who take part in this RP would be effected, it may not be wise to give away excess money to support other nations economies when our own are suffering significantly.
 
I honestly haven't decided how this will effect the Andulan or Ertolian Economies. Ertolia has a much smaller economy barely peaking over 220 Billion NSD while Andulus is significantly bigger, the main issue is that Andulus's wealth is largely from two things its geopolitical location and prominent role in the DU a free trade organization, and a structuring similar to Japan or Korea's where large unified "Chaebols" or Conglomorates make up large sections of the economy, in this case DIG, CBC, SUH, GMG being the big four conglomorates and controling a good 20-30% of the Andulan Economy.
 
plembobria:
Tourism is the first industry that crashes in economic crisis. (See: Greece).
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Yeah, I'm kind of worried about the impact this will have on SillyString, since we're basically 100% tourism. :P I'm roughly thinking that our reaction will be to rush to secure certain tourism avenues, and if (when?) things go downhill from there, secure new contracts to bring in some extra money.

I think it'll also be a way for me to explore the lack of distinction between corporations and government - normally, income and profit (minus taxes) go to businesses, but in an economic crisis where tourism takes a giant hit, all income would probably be commandeered by the state in order to redistribute as fairly as possible.
 
I would be interested in participating, as Hisk would probably be affected by this. Maybe the NPCMA could get tied in to this?
 
I would be interested in participating, and I volunteer The Lancerian Empire to go through severe economic difficulty (though there is the new Bona Mare Inc. shipyards that's just being completed and ships yet to be built there that have already been paid for, so that's a bright spot for jobs).

Having said that, I have almost no grasp of economics so I'd almost effectively need someone else to decide what happens there? I'm not sure...
 
McM do you need me to make a further post with my government actually offering help to retrieve people or do we just take it as given that they've offered? :P
 
I'm not sure whether I should get involved. This wouldn't have an adverse affect on my economy; we'd lower taxes and use our enormous governmental surplus (like, we only use 70-80% of our budget) to stop banks going into collapse. However, I could give economic aid to the affected countries, and maybe give corporations a cash incentive to move into McMasterdonia, to increase employment. My only problem is, I'm not exactly sure how to write something like this; I'm going to need help.
 
Do it like I did. Have a top-level meeting with your leader and some bureaucrats where they discuss what to do. I'm raising taxes to create a surplus that we can dip into to handle our expenses for a short time. We'll also dip into the profits of government owned businesses (which comprise 99.9% of all business in Nebula, not counting lemonade stands) to cover extra stuff and try not to send money out of the country.
 
Xentherida:
I'm not sure whether I should get involved. This wouldn't have an adverse affect on my economy; we'd lower taxes and use our enormous governmental surplus (like, we only use 70-80% of our budget) to stop banks going into collapse. However, I could give economic aid to the affected countries, and maybe give corporations a cash incentive to move into McMasterdonia, to increase employment. My only problem is, I'm not exactly sure how to write something like this; I'm going to need help.
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I hate to be that guy, but budget surpluses are actually bad for the private sector. In addition, only using 80% of your budget means that the other 20% is waste - unable to be invested in either the public or private sector.
 
Myroria:
Xentherida:
I'm not sure whether I should get involved. This wouldn't have an adverse affect on my economy; we'd lower taxes and use our enormous governmental surplus (like, we only use 70-80% of our budget) to stop banks going into collapse. However, I could give economic aid to the affected countries, and maybe give corporations a cash incentive to move into McMasterdonia, to increase employment. My only problem is, I'm not exactly sure how to write something like this; I'm going to need help.
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I hate to be that guy, but budget surpluses are actually bad for the private sector. In addition, only using 80% of your budget means that the other 20% is waste - unable to be invested in either the public or private sector.
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you could theoretically, not saying this is a good idea but, you can say that your government spends a large amount of it's budget on solid assets each year. For example you government could've spent that 20% buying up stockpiles of precious metals. But just stating that you're sitting on 20% of your budget makes no sense fiscally.
 
Nebula:
Unless you're sure you're about to hit tough times economically...
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Actually no, it's rather the opposite. Recessions tend to happen because of a lack of movement of money. Since money is finite, it needs to be moved constantly thru the system, when you just sit on large swaths of money that money isn't being used at all and is pretty much taken out of the system.

It's hard for me to explain but I'll offer an example. You want a piece of bread so you pay the baker $20, the baker pays the farmer $20 for bread supplies, the farmer pays the farming supplies store $20 for a new tractor or something. It's the same $20 except it's been moving around and because of it more people have prospered instead of you have $20 and you put it in a box and bury it in your backyard where that money is stuck and no one really prospers.
 
What you really want to do, is downplay any possible effect this could be having on your economy, you want investor confidence high. Unless you own a lot of McM debt, your banks should be solid, it would be foolish to even suggest otherwise. You'll likely want to cut interest rates, making it both cheaper to borrow money, and more expensive to save it, therefor getting currency flowing, messing with tax rates at this point would be a mistake, because tax rates aren't an economic lever, they are to fund the government budget, not fix the economy.
 
To make it more interesting and to reflect reality, many of our banks would be linked together in various ways and the affect of this will spread especially as confidence in the world economy drops.
 
Investors will be pulling out of Eumenor left-right and centre, although I'm not going to mention it until the crisis ends, and we realise we've all taken our eyes off the ball.
 
Confidence in your government and economy would have plunged and we've announced that we are closing the RMA hub in Eumenor. So it's likely your government would have noticed they have two crisises on their hands as well as the risk of a naval blockade
 
Sorry I'm on my phone right now. The King announced that a blockade would happen if the investigation does not go ahead as agreed. So it hasn't happened yet but it might, which is the problem :D
 
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