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Tuesday, December 23, 2003 - 05:46 pm Click here to edit this post
This is not going to be popular, but I don't like this proposal.

Strategic reserves are just that: Strategic, having a military or national security reason. They aren't for making sure that Adelanto Fruit Juice Corp gets it's monthly quota of oranges.

I don't even like the present ability of the country to sell stock to corps. It's uneven, as pointed out above, because it generally only encompasses the goods used by the country. It doesn't really cover the goods used by weapons corps, for which one could make at least a weak case that there should be a strategic reserve.

By allowing country purchases of goods on the market for the use in reserve by country corporations, the impact of the market will be reduced in an unrealistic manner.

Yes, I do see that players might hit the market with manual orders when prices are low and that will tend to help the market out in a good way. And yes, I see that this concept will enhance the value of contracts over bloc purchasing.

What I don't like is the use of countries to perform this function - it never did work in the real world and it will thwart the market in this one. If it has to be done, and I am not wholly against it, then it should be a Common Market function.

Come to think of it, that's not such a bad idea. Common Market reserves of commodities is not completely unrealistic and if the goods in the reserve would have to come from the common market CEO and country corporations and could only be used by them, then it's not bad at all.

Jozi! With compliments to the contributors to this thread, I'd like to call this Economic Idea #13. Common Market commodities reserves. The Common Market chairman would have to accept the contracts to establish the reserve, and each Common Market reserve would have to be able to take loans and have a credit limit. The mechanism for sales to corps in shortage by the Common Market reserve would have to be worked out - not sure if it would require alot of coding...

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