Zineon/Real Life Economics Blog
Hi Guys

I'm going to start a crazy blog merging 2 subjects i love... Zineon and Economics!

Prepare to be wowed!

First off...

---------====== ECONOMICS 101 ======---------

What is Economics?
The problem that each human faces is that they can't have everything they want. Buddhists solve this problem by removing their desire, but everyone else solves this problem by making a decision: they choose one thing over another. That's called micro-economics, which is fairly interesting... but what I enjoy is when a lot of people all make the same decision. That's called macroeconomics. In macroeconomics there is ALWAYS a butterfly effect, meaning that one group of decisions made by one group of citizens in one country will effect people on the other side of the world. I mean countries have collapsed, wars have started and ended, people have starved to death!

Quick real life example...
The American citizens wanted cheaper fuel for their cars. So much so, that when a new and possibly dangerous oil well drilling technology came along (called fracking) they just let private business come in and make profit. THANK FUCK!

I live in the UK, so my fuel is produced in the North Sea and the production of that has not become any cheaper. Why was I happy about this macroeconomic decision of the USA to produce and consume cheaper fuel? Well, even though the UK does not much trade oil with the USA and the UK is not using the new technology to extract oil, the petrol prices at the pump have dropped for all UK drivers. This is because the world oil markets are connected by macroeconomic forces. Supply rose in the USA, and there was no increase in demand elsewhere in the world. World oil prices dropped from around $150 a barrel in 2008, to around $40 when I checked today.

So the USA sent out a basic economic ripple that affected the entire world... Now for the consequences:

Firstly, so called "Islamic State" (which are neither Islamic, nor a state) get a quarter of their income from selling oil on the black market. Can you imagine how much more money ISIS would be getting if the USA hadn't started fracking!? Easily $100,000,000 (one hundred million dollars) a year.

Secondly, Venezuela was already in a mess before the USA consumers decided to buy cheaper fuel from fracking. It's businesses were so inefficient that the country started to purchase basic household items from other countries and essentially pay them in oil. Now as the value of oil has dropped so much, it is now extremely difficult to get even basic items like toilet paper in Venezuela. Recently an image went viral of a poor Venezuelan man using his government's currency as a napkin, as it was easier to obtain.
I doubt that the Venezuelan government will last long unless oil prices increase (The government knows this, that's why they are calling for prices to double)

Thirdly, The American firms that spent $100,000,000,000 (1 hundred billion dollars) on what seemed like a safe investment 10 years ago... facilities to import Liquefied Natural Gas from the Gulf States... well yeah, they lost all their money!

I could go on, forever, but am actually going to start working on the next post! :-)
"Complexity, is just a lot of Simplicity"
Good start to a new concept, I can tell it has potential in informing the server Big Grin

---------====== TRADE 102 ======---------

Why do we trade?
Trade is good for everyone. The whole point of trading is that both the buyer and seller are happy. Whilst individual trades may “Take our jobs” (“dey turk er jurbs”, “durkur duur”), the actual countries involved in the trade will both benefit, and become richer overall. Yes... people lose jobs, but they get hired by the new companies that could spring up because of that trade. The World Economic Forum estimates that removing all trade barriers would put (an average of) $600 extra into the pockets of every man woman and child in the world (7 billion people). Don’t forget, a third of the population live on less than 2 dollars a day, so they aren’t going to get much of the extra $1.5 trillion extra dollars floating around per year if all trade barriers were removed. It’s going to go to the rich world (for sure I’d expect to be a grand better off every year).

Why don't we trade
Government trade barriers exist precisely because trade is so useful. They use it as a method of control, barring trade completely with some countries, and with other countries just on specific products that have a strong voter base.

In Zineon, trade is used as a weapon against those on the KOS list... if they are enemies of the state, then they cannot use the trading benefits of the state.
"Complexity, is just a lot of Simplicity"
---------====== CURRENCY 103 ======---------

Why do we use currency?
The point of currency is that it makes trading very easy. Before currency there was barter (trading goods for other goods). Then there was paying people in a universally recognised commodity (famously salt was used to pay soldiers “Sal(t)aries”). Then there was bronze coins and then later gold coins. Gold coins are very valuable,  so traders would keep their gold in a safe. Then they would trust institutions to store gold in a vault, and receive a certificate that would allow then to withdraw it. Traders soon realised that they could trade the paper certificates instead of the physical gold, and so paper money was born! Nowadays we use “fiat” money, that isn’t backed by gold... it’s backed by the law and the government in charge.

Paper money is great!
In the real world we can use paper money to pay for absolutely anything! Accepted by traders and criminals worldwide... cash money makes trading so easy!

In Zineon we don’t have that luxury. We use diamonds as currency, which are mined out of the ground, by pick. Diamonds are universally considered by all players to be a valuable resource, which is why they are considered the only true currency of Zineon.

Soon I will be creating a Bank Of Zineon which will offer  basic banking services. Stay Tuned!

Announcement! I now have an account called "Bank_Of_Zineon"! Check attached thumbnail!

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"Complexity, is just a lot of Simplicity"

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