online games, multiplayer games
Simcountry is an Online Digital World where you are the President of a country.
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What is Simcountry?

How About A REAL Loan System Like This? (White Giant)

Simcountry: Simcountry Bulletin Board  How About A REAL Loan System Like This? (White Giant)

Matt Crouch (Fearless Blue)

Tuesday, November 23, 2004 - 12:29 am Click here to edit this post
first, a bond IS a loan. Simply a type of loan -from a government to another party. Calling them loans is both accurate and inconsequential, why change something that only bothers particularly anal people anyway? :)

Talk all you want about a direct option for loans, it used to exist...and very likely never will exist again.

An unlimited loan market with player-given interest rates and direct offers (along with cash gifts and foreign aid) is one of many features which cannot be implemented because it was abused by illegal multi-players. end of story. So hopefully jonni or jozi wont waste too much time reading this :) , theyve both been here before (its a shame the original posts on the subject are gone) and had to remove these features.

Anybody who needs money gets a loan automatically now, of course.

I suspect that neither of you understand how the loan 'market' in simcountry works.

For starters, there are no defaults and no inflation, and there is infinite money coming from the world bank. The money comes from nowhere. Money paid to the world bank also goes nowhere. It is a fictional entity.

If the money supply were limited or inflation implemented nearly every player economy would collapse (Im not saying this would be a bad thing...but Im just not sure youre aware). C3s and new players would default regularly, meaning nobody would bother offering loans even at high interest rates. There would be far too few player requests for loans for the rich players to offer everything they had. If c3s and new players had no credit (or even limited credit), they obviously could not build new corporations. The unbalanced nature of the player-countries would lead to world economic collapse(their corporations coudlnt get the supplies they need...), probably permanently barring massive intervention by w3c. Once it started, it couldnt be stopped.

The few player corporations temporarily spared (perhaps by extreme common markets and large strategic reserves) would try in vain to make money by selling at high prices to other players and buying cheap stuff from them...but nobody would offer cheap supplies or buy expensive stuff.

The basics of the simcountry economy are as follows:

1. C3s buy expensive high quality goods from players.
2. C3 corporaions build and sell cheap low qualty goods to players. they lose money on both buying and selling.
3. c3 corporations lose money, causing the c3 governments to lose money.
4. c3 assets fall until they need to take out a loan. The loans come either from a player, or are magically created by the world bank.
5. C3 assets continue to fall as the players drain more cash from them. When they fall far enough however, they are given more money. Not a loan - just extra magic cash that appears from nowhere to support them.
6. When c3 debt gets too high, they are given more magic money to pay it off in big chunks. Every loan is paid back as it comes due using this money.

The growth of the player asset base is based on extracting cash from c3s, which is replaced as soon as it leaves.

A few other notes - when a corporation closes its assets are not auctioned. The owner only receives any cash it may have had.

Obviously since countries can never default their stuff is never auctioned off either.

If a player registered a new country which had recently defaulted and sold off all its stuff, they would be screwed.

If a player registered a new country with high debt and very little (high interest) credit, they would likewise be in trouble.

Just food for thought...

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