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DubanFP
Caldari Four Rings Phalanx Alliance
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Posted - 2008.02.05 23:07:00 -
[1]
Edited by: DubanFP on 05/02/2008 23:13:30
Originally by: Nova Fox Actually according to the last economic report we are suffering from a deflation problem, the buying poewr of the isk is getting to high and killing the older business that arent used to the brand new lower prices and supply of materials just making the isk a all more powerful commodity, battleships used to be 300 million isk but though combination of increased market supplies compeitition demands and suplly these ships are now low as 30million off the bat. Thats deflation, Inflation is the devalument of isk so instead of 300million isk battleships wed be seeing 700million isk battleships instead.
What he said. It doesn't work that way. Contrary to popular belief the US DOES NOT have an equal amount of hard material "silver, gold" to match all the US bills. It's based mostly off the fact that people believe the US bill is worth this much, therefore it is. Very strange stuff.
Items are worth what people are willing to pay for them. You get X amount of isk for every bit of work "more or less". Isk just stores your work really. People are willing to pay X amount of work/isk for items, so they buy the cheapest item and the more expensive items remain so prices rise.
Also it's about what items enter the market. People add items at a slightly lower price then the current one which causes the price to drop. If people aren't willing to put X amount of work into getting an item they don't buy and new items are added "at a slightly cheaper price" so the price drops.
In truth the value of ISK is based entirely 100% on what people want their effort to be worth. It's all about the fact that people trust the isk to hold their money.It's a bit more complicated then that but that's the general idea. ___________
Desolacer> Who the heck gives YOU the right to ruin it for others buy blowing them up.
Zaqar> CCP |
DubanFP
Caldari Four Rings Phalanx Alliance
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Posted - 2008.02.05 23:26:00 -
[2]
Originally by: Ithica Ramlix If what you say is true Duban then why is the vaule of the dollar dropping like a rock? This has a lot of us Americans worried.
What i said is mainly relevant to internal matters. There is no other currency besides isk in EVE but the same basic things are involved somewhat. Like i said it's all about trust in the currency's value. After the wars the trust in the US "with the big new overhead" dropped which decreased the trust built in. People become less certain of the value of the Dollar "compared to other currency" so the price drops. Locally it hasn't been too bad, it's just that the value compared to outside the US isn't as good as it used to be. ___________
Desolacer> Who the heck gives YOU the right to ruin it for others buy blowing them up.
Zaqar> CCP |
DubanFP
Caldari Four Rings Phalanx Alliance
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Posted - 2008.02.05 23:56:00 -
[3]
Uhm, i'm sorry. Did i just blow your mind with the fact that the entire value and existance of currency "today" is based entirely on trust? Also what Akita said is true, but note that it entirely goes through what I said to become true first. ___________
Desolacer> Who the heck gives YOU the right to ruin it for others buy blowing them up.
Zaqar> CCP |
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