Why is the national bank helping to devaluate BEF

I thought we had agreed on keeping the BEF around 0.02 gold.
To my shock I just saw that the NBB-BNB is selling BEF for 0.018 gold.
Why is this done?

I didn't know about this either. Anyone?

Thore's decision as the market was stable at that rate.

So if it is stable why sell our countries BEF for such a low prize?
We currently have a lot of gold so I really do not understand why this is done.

As I explained in the public announcement, the market has stabilized at that level, so in the interest of providing a safe and stable currency, the peg was set there. In addition, this was the peg level before V2, so it says a lot about our economy that we have recovered to the levels we were at before the migration.

Thore Thoreson wrote:it says a lot about our economy that we have recovered to the levels we were at before the migration.

Sorry but you couldn't be more wrong.
Have +50% unemployment isn't really a sign that our economy has recovered.
However it could say something about the monstrous profits the foreign investors are making.
The deals that should have brought us cheap raws looked better in theory. It seems they only have one effect. Making the foreign sellers rich and the Belgium companies poor.

Have +50% unemployment isn't really a sign that our economy has recovered.

This also takes into account all the inactives.

I am not talking about inactives I am talking about everyone who works in a weapon fabric, moving tickets,....
90% of those companies are just closed.
If it wouldn't be for our grain companies almost everyone in Belgium would be unemployed (lucky we had some noob players that bought a grain company).

To get back to the monetary money. I think you do not get a stable market. If it is currently stable adding big amounts of BEF will only make it unstable. It was perfect at 0.02 and bringing it to 0.018 is just foolish. Or when it stabilizes at 0.016 in a few days are you going to do the same?

According to my information (game time 11:00h) the rating is 1BEF = 0,03Gold. So selling the BEF at 0,018Gold is actually not that bad of an idea if you want to bring the level back to 1BEF = 0,02Gold... However, the question is if you'll be able to sell such an amount of BEF on the market in the first place (1). (2) A solution could be that another (friendly) country would be so kind enough in buying (at least partially) our stock of BEF (any good diplomatic relations there? :p). (3) A problem I find more pressing is that when I checked the monetary market, there are hardly any BEF's being traded in another currency.

Btw. Hello all

aVegan, you are correct, in a way. With the war module down, there is absolutely NO demand for weapons and very little demand for moving tickets. Until that module gets working, our overall economy will, in a word, suck. Over the last few days the only companies that have continued to produce are the raw companies, but our economy is, and should be, built upon the premise of a strong manufacturing sector. I think you will find that as it takes longer for the war module to become active, the demand for raws will decrease to a point where companies start dumping product on the market in an effort to raise capital. In fact, I think we are seeing that now in the countries where harvesting is a major portion of their economy, which is why we are seeing the global price of raws dropping like a stone.

We are also starting to see people hording gold again. As of right now, there are only three legitimate offers to sell gold which tells me that the demand for gold is extreme.
As I said in the public announcement regarding the peg, we had a peg of 0.02, but the market had passed it to 0.018 and had stayed there for almost 3 days.We did not devalue the BEF, we matched what the market was already paying. Thus we are keeping it from raising any further. We are back to where we were before the V2 roll-out and I have no plans on lowering it any further. To do so would be contrary to my fiduciary duty towards Belgium.

Foreign companies are not making monsterous profits off of our Citizens, and to say they are is just plain dishonest. Our raws companies, what few there are, have a 2% advantage over any foreign competition. While it is not much, it is an advantage.
If I am wrong, please give me the numbers (actual numbers, not what would happen in a "perfect world") and we can go from there. All the numbers I have seen support the road we are on, and support us staying the course until demand rises again.

Well for a raw company with a 100% productivity it should be possible to sell raws for less than 0.03 BEF
As it is currently 0.10 - 0.20 BEF it is clear that they are making monsterous profits of our Citizens. Saying the opposite is just not right. How come that our medium prod grain industry can sell cheaper than high prod foreign countries? Because they are cheating us out of our money. And they are helped by the government
Our raw companies can not compete (except partially grain if the state would help protect it more) against foreign competition.

And the monetary market stabilized at 0.018 because our national bank had put a lot of BEF at 0.020
If you put a lot of BEF at 0.018 it is logical the prize will stabilize lower. What is currently already happening as their is already an offer at 0.017

This isn't rocket science. Instead of stabilizing the monetary market you did the opposite. If you keep on doing this in the end our BEF will be worthless.


Please national bank remove the 0.018 offer and put it all at 0.020
And please anyone who also understand how this works say it as well. Cause it seems that my voice isn't listened to.

aVegan wrote:Well for a raw company with a 100% productivity it should be possible to sell raws for less than 0.03 BEF
As it is currently 0.10 - 0.20 BEF it is clear that they are making monsterous profits of our Citizens. Saying the opposite is just not right. How come that our medium prod grain industry can sell cheaper than high prod foreign countries? Because they are cheating us out of our money. And they are helped by the government

This is called capitalism. And for the record, they are not helped by the government at all. We have yet to sign any contracts which subsidise export licenses to Belgium. We did not spend a single Franc on the temporary deal with Alpha, which, as I might note, only bars us from actively supporting anyone else in the Stone and Titanium markets but does not give him any advantages whatsoever. And how raising the import taxes is helping foreign companies I also fail to understand.

Our raw companies can not compete (except partially grain if the state would help protect it more) against foreign competition.

Because we have no raw materials they can actually produce. If you haven't noticed, Belgium only has Low regions for everything except for Grain.

HuCard wrote:

aVegan wrote:Well for a raw company with a 100% productivity it should be possible to sell raws for less than 0.03 BEF
As it is currently 0.10 - 0.20 BEF it is clear that they are making monsterous profits of our Citizens. Saying the opposite is just not right. How come that our medium prod grain industry can sell cheaper than high prod foreign countries? Because they are cheating us out of our money. And they are helped by the government

This is called capitalism. And for the record, they are not helped by the government at all. We have yet to sign any contracts which subsidise export licenses to Belgium. We did not spend a single Franc on the temporary deal with Alpha, which, as I might note, only bars us from actively supporting anyone else in the Stone and Titanium markets but does not give him any advantages whatsoever. And how raising the import taxes is helping foreign companies I also fail to understand.

Didn't the government make the deal? Actually the government did spend BEF on the deal with Alpha. Or what do you call all the donations to our state companies to buy raw (that costs up to 10 times more than its production cost). One thing is sure Alpha has already earned his 200 gold 10 times back.
Raising import taxes (I am only talking about grain here) doesn't help foreign companies (why would the government want to help foreign companies anyway) but helps our national companies and makes our own grain industry more competitive.

HuCard wrote:

Our raw companies can not compete (except partially grain if the state would help protect it more) against foreign competition.

Because we have no raw materials they can actually produce. If you haven't noticed, Belgium only has Low regions for everything except for Grain.

That is what I am saying. Our president said that he gave our raw companies a 2% advantage. I only responded that that isn't true because they are low in productivity.


But to get back to the topic of this thread. Doesn't anyone else realize that by putting huge amounts of BEF on a stable monetary market you make it unstable.
When our national bank put BEF at 0.020 the market stablized at 0.018
But now that they put BEF at 0.018 the prize will lower again. It is already at 0.017 and will go more down in the next days. It seems our national bank is managed by a person who has no idea how the monetary market works.

Actually, it is still stable two days after the peg change, at least on the BEF side.
What is unstable is the Gold side. There is now only one offer to sell gold. While I would like to try and stabilize that side, we do not have the gold reserves to do so. We are keeping our eye on it, but there is not a lot we can do, yet.

I am sorry to say but after two days it has already changed at BEF side to 0.017 gold for 1 BEF. I am sure this will go to 0.016 gold in the next days.

So clearly changing it from 0.02 to 0.018 HAS changed the market.
So if you follow your logic you will have to change it to 0.016 in a few days.
And this will never stop. Unless you swallow your pride and aqknowledge that your thinking was wrong. Great leaders do not mind to admit when they are wrong.

I have stated that the peg will go no lower. A peg is just that. There will be minor oscillations but overall, over the long term, it will be stable. Like I said, the problem now is the Gold side. Until there is demand in this war-driven game, our economy will remain weak. Patience is the key for the next several days...

As I have stated the value of BEF will go lower. Actually you should count value our national bank (or any other players who put big amounts of BEF on the market) sells BEF on the market - 0.02

That is why it was perfect on 0.02
Currently the market will stablize at 0.016
Will the national bank change the offer than again?

(Is this thing on??)
*tap tap tap*

The peg will go no lower...

It isn't because you say it won't go lower that it won't.
btw isn't 0.017 already lower than before you made the change????????

You are talking about the market, not the peg. Two different things.
The peg will not go lower.

Yes I am talking about what effects our citizens.

The market is back to 0.018.
And for someone that is so concerned about our citizens, why are you selling gold for 78 BEF, 85 BEF and 98 BEF? I see you are doing your best to pull as much money into your pockets as possible, and to disrupt the MM by making the inflation rate astronomical...
Talk about obscene profits.

????
You are a strange person.
It seems you are mixing up private companies (who only want to make profits) and state (who want the best for all citizens).
Funny that you accuse a private company of only wanting to make profits when you are using the state in that way. Sorry but I would NEVER abuse my position like that.

Fact is that your decision to make our national bank put money at 0.018 was a bad call. It is as simple as that!

btw I am going to invest all profits in the Belgium economy.
Is Alpha going to do the same?

I am trying to create an environment where private companies can bring a profit. This is the right job of Government, in my view.

By looking at our overall economy, it's strengths and weaknesses, anybody can see that we are hampered by a lack of raw materials. Even by your own admission, we would need to use the Government to prop up any raw industry to protect it from outside competition. Our only hope is to make the most of our strengths, a manufacturing sector and our ability to trade anywhere in the world because of our lack of trade embargoes and wars. We generally have either good or neutral relations with most of the world and nobody thinks of us as a threat. This helps us also. In fact, most of the Countries we approached regarding our raw contracts were very eager to trade with Belgium.

We are gaining a share of Alpha's profits with our import taxes, just as we will for any other company that imports raws to our market. If you look at the current financial report from BNB-NBB, you will see that we are bringing in about 1-2 gold a day (in BEF) in taxes. This will increase as our manu sector gets it's sea legs in the new economy.

The whole reason I asked about your activities on the MM is I believe that someone that makes as much noise regarding the stability of the market, could use their influence to help stabilize it, as I did when I sold my gold at a rate of 1g/57BEF, much below any other offer, but just enough to ensure that I am able to turn around and sell the BEF at the official rate.

On a personal note: I also believe that a person that makes so much noise about "obscene profits" and "gouging" by others, should not engage in the same. Just my opinion...

I put those offers their because we have the gold and because I know our company will be useless as soon as the government has its deals.
If anyone is foolish enough to buy the gold that is their problem. I do think I put the offers high enough so nobody will ever buy them.

I find it sad that the Vegan Agricultural Cooperative is all the time associated with me. It is a private company that does not follow any political party or interest. Although it is a pet project of myself it has nothing to do with my political ideas or even with Belgium.

I also manage Red Arms. And clearly in a completely different way. I take my responsibilities very serious. VAC I run as a private company. RA as a commune. I work for none of the two. Everything I earn goes to those two companies. Currently I have 3BEF and 0 gold. I do not have the need of becoming rich, I do have the need of helping others (that is my richness).

My first duty is to my country. But it has gradations. Where first of all I want the best for my workers. If I can make sure workers can keep their job even when the industry becomes non-profitable I will do it.

If you are serious about your ideals and helping others, I extend an invitation to join the Government as an Assistant Minister Of State Companies. I know mudduck 95 and HugoLilly can use the help and you can bring your ideas into practice, as best you can.

sure no problem
Please pm me the details and I'll do the best I can.

currently 0.016!!!!!!!!!!!!

Which it would have been even if we had kept the "official" rate at .02 as there is a huge demand for gold and not a lot of demand for BEF right now.
Patience is a virtue, and we need to exercise a bit until the war module gets going. Already we have seen tax receipts (read market activity) increase in the last 24 hours. I expect more to follow in the next few days.

Did we have a run on BEF or is the MM bugged? I logged in and every BEF offer below 1BEF=0.1 was gone. NBB-BNB posted a new peg at 1=0.018 with 8000 BEF. Lets see how this works.