An exposition on supply side economics.

[[Rei_Inflationist_00]]

I put some of this up in the economics essay, but my trading pass is still frozen, so I'm bored, and I thought I would add some exposition with examples to make this clearer so I give you:

An full explination of gaian supply economics. . .
Disclaimer: Most numbers here are speculation based on observation and are most likely only accurate to a figure of 10,
but this is pretty scary anyways.

Gold
Gaia prints it's money every day
Most people here will understand that when you keep printing money you devalue it: by my estimate an average Gaian makes about 300 gold a day if they are active and can easily make about 2k (though that is limited to serious poll whores, blackjock players, and jigsaw puzzlers like me).

The problem is that even with a constantly incresing population: that is gaian's joining, and staying active they are still printing a lot more money than they are taking in in the shops. . .

The reason for this is while the gold piece is constatnly losing value there is somthing that has a fixed, or more actually decreasing supply: the donation/collectible item

If you don't understand why the price of older donation items, which were bought with an almost constatntly valued dollar, are worth more and more
when the overall supply of gold gets larger and larger. . . well lets look at the other side, the deflation of recent donation items: namely some of the less popular 05 and 06 items which don't even sell for the standard 10k. . . it's because there are too many people like me who decided to invest some money in our hobbies

Well I'm not done with this one but I've started to ramble I'll come back to this later.

There are two things that might defeat my purpose  

[AuronT]

The quest system is one of them I bet, but it has yet to be seen if they will actually put new items into circulation with that. It would be an intresting effect on the gaian economy  

[[Rei_Inflationist_00]]

After getting Engineer's permission I have something for you budding inflationist to look at:
Ad for the Gain Inflation Istrumentality Project:
http://www.gaiaonline.com/forum/viewtopic.php?t=18804757

Gaian Inflation Instrumentality Project:
http://www.gaiaonline.com/guilds/index.php?guild_id=24093  

[engineer-of-doom]

Bumps up the topic  

[Ozumou]

Bumping is the Primary industry of Gaia.

razz

Anyway, if we buy donation items now, and hang onto them, our chances of welath will increase over time...

Would also be a good idea to do things like upgrade houses before the price rises along with the Gaian inflation.  

[Ozumou]

I oculd be screwed,

If the monthly collectables are being re-issued that means they will drop in value.

Damn quest thread.  

[[Rei_Inflationist_00]]

Thanks for the Bump, and sorry for the long Hiatus: I had a exhasting real life buisness trip, and I'm still a little disgusted with Gaia B/C this mules market account is still frozen despite the billing feedback request *shrugs* so I've emailed Jackaboo with an unltimatum: unfreeze or tell me whats going on or I'm not buying my $200 nxt month

Anywho . . . this is how I do things:
You will notice all of the items on the first page are selling at one price: we set a price and then we flood once we have crancked up the price.

Of course this is not a standard practice: you usally want a stepped price, but some people moved into my market while I was gone so I am sending a message by pushing them off the first page.
 

[[Rei_Inflationist_00]]

Okay these are more of asides than real essays but I thought since I haven't had timeto put up an artice I'd show you simple prood of efficacy:



I did that then I went on a buisness trip. I came back the price had moved.



I did this. And yes I actully do sell more than I buy biggrin and I bought most of mine back when they were 6k

Anyone want to wear an ice tiara for the winter holidays?