Guffingford
16-02-2006, 16:14
Introduction
For those who have not read the little story Sarzonia (along with a few others including me) have been playing, let me sum it up shortly: after some irresponsible bidding PIW (Portland Iron Works, the company behind the storefront) went into financial trouble. It dragged Sarzonia with it and said nation is now in an economic recession. I wanted to make it worse, others wanted to help Sarzo out. Eventually after me and Sarzonia talked on MSN I told him it'd be a good idea to stabilize his currency before attempting to fix the economy as a whole. Sarzo found it a good idea and followed my advice.
Then Hamptonshire made an OOC post which is quoted here. I find it a good comment, it's true when you say it when looking at earth, but when you look at NS, there are some serious flaws in it. Let me explain.
[OOC: Sorry about this OOC comment but I don't see where else it could be posted. Sarz, do you have any idea physically how much gold you'd need to back up trillions upon trillions of dollars in currency?
Let's say that Gold is at $750 a troy ounce (which is too high with NS gold production levels). If you were to back $10 trillion of currency in gold, which would only be a fraction of what you have out there, that would be 13.333 billion troy ounces. That comes out to about 914,285,923 pounds or 457,142 TONS. And that is less then a tenth of the actual gold you'd need to have a proper gold standard.
Even if, for some ungodly reason, you were to have physcially that much gold simply having that much would make it near worthless. Gold is only valuable because it is rare. If a single nation has 5 million tons of gold in their treasury alone, gold would be about as valuable as stainless steel.]To put it into perspective...
Small important note you might want to keep in mind. Say the NationStates planet is as big as the sun. Let's say the sun is 110 larger than the planet earth, we can assume the rough amount of natural resources on the NS planet is also 110 times larger. However, this is not the case. Since the NS planet is unaffected by geological processes, every nation - if the author is willing - has infinite supplies of oil. Why am I saying infinite? Well, because it is. NationStates ICly means a nation pops into existence. If RPed well, people accept the nation, and if we bar the thoughts from our mind NS will one day cease to exist or our hypothetic nation gets deleted, then the nation is destined to grow infinitely.
Because nations and their resources are RPed and and thusly, in NS' reality, infinite, then we can say the NS planet's resources are as infinite as any nation on it. Hamp is correct when he says the price of gold should be next to nothing. But that also applies to all other metals and goods, such as oil. While oil companies here make billions, on NS finding huge amounts of oil is not a big deal. Finding diamonds isn't either, finding uranium isn't.
What can we conclude from this?
I'd say all prices regarding raw materials do not and cannot work on NationStates. Whereas everything's infinite - growth in population, economy, armies, statistics, production etc - you cannot apply real life prices on any product in NationStates. Everything should be worthless according to the laws of economics.
How can one take a diminishing production of X into account when there's an infinite supply of it on NationStates? You can't. Can you determine set/fixed prices for a product? Nope, you can't. Infinite = Infinite. While people can RP a degrading economy or oilfields running dry: it does not make a difference. On off-site RP communities this might work, but on such a large community such as NS it's too complex.
So... If the NS world is infinite, how big is it? Or is that a weird question?
It certainly is. But on the other hand, it's a very interesting question. People suggested a Dyson Sphere, others just say it's a damn large sphere. When I say infinite, don't think of an endless globe or a huge torus. Think of several plains of a similar reality, connected each other because they somehow overlap each other. Quirky physics and all theoretical. Fun to ponder about though. However, on a more serious note, trying to determine how big the NS planet is, is like asking what was out there before the Big Bang, or what's outside the universe. Such questions simply cannot be answered.
So... what's the verdict?
Nothing actually. Here I wanted to say how much I dislike the concept of regulating roleplays by sassing off others who have fine ideas, but cannot be put to good use because NationStates is supposedly a finite place. It isn't, NationStates cannot be a finite place. Platinum is a rare mineral on earth. On NS, it's more commonly found than iron. The proportions are gone, and since there's no such thing as geography coded into the software, it cannot change. Remember, these are the basics of NS, people who play they do not have one or more resources earn my respect. Still, most players do RP they have everything - a bad form of RP in my opinion I wrote about earlier.
Discuss.
For those who have not read the little story Sarzonia (along with a few others including me) have been playing, let me sum it up shortly: after some irresponsible bidding PIW (Portland Iron Works, the company behind the storefront) went into financial trouble. It dragged Sarzonia with it and said nation is now in an economic recession. I wanted to make it worse, others wanted to help Sarzo out. Eventually after me and Sarzonia talked on MSN I told him it'd be a good idea to stabilize his currency before attempting to fix the economy as a whole. Sarzo found it a good idea and followed my advice.
Then Hamptonshire made an OOC post which is quoted here. I find it a good comment, it's true when you say it when looking at earth, but when you look at NS, there are some serious flaws in it. Let me explain.
[OOC: Sorry about this OOC comment but I don't see where else it could be posted. Sarz, do you have any idea physically how much gold you'd need to back up trillions upon trillions of dollars in currency?
Let's say that Gold is at $750 a troy ounce (which is too high with NS gold production levels). If you were to back $10 trillion of currency in gold, which would only be a fraction of what you have out there, that would be 13.333 billion troy ounces. That comes out to about 914,285,923 pounds or 457,142 TONS. And that is less then a tenth of the actual gold you'd need to have a proper gold standard.
Even if, for some ungodly reason, you were to have physcially that much gold simply having that much would make it near worthless. Gold is only valuable because it is rare. If a single nation has 5 million tons of gold in their treasury alone, gold would be about as valuable as stainless steel.]To put it into perspective...
Small important note you might want to keep in mind. Say the NationStates planet is as big as the sun. Let's say the sun is 110 larger than the planet earth, we can assume the rough amount of natural resources on the NS planet is also 110 times larger. However, this is not the case. Since the NS planet is unaffected by geological processes, every nation - if the author is willing - has infinite supplies of oil. Why am I saying infinite? Well, because it is. NationStates ICly means a nation pops into existence. If RPed well, people accept the nation, and if we bar the thoughts from our mind NS will one day cease to exist or our hypothetic nation gets deleted, then the nation is destined to grow infinitely.
Because nations and their resources are RPed and and thusly, in NS' reality, infinite, then we can say the NS planet's resources are as infinite as any nation on it. Hamp is correct when he says the price of gold should be next to nothing. But that also applies to all other metals and goods, such as oil. While oil companies here make billions, on NS finding huge amounts of oil is not a big deal. Finding diamonds isn't either, finding uranium isn't.
What can we conclude from this?
I'd say all prices regarding raw materials do not and cannot work on NationStates. Whereas everything's infinite - growth in population, economy, armies, statistics, production etc - you cannot apply real life prices on any product in NationStates. Everything should be worthless according to the laws of economics.
How can one take a diminishing production of X into account when there's an infinite supply of it on NationStates? You can't. Can you determine set/fixed prices for a product? Nope, you can't. Infinite = Infinite. While people can RP a degrading economy or oilfields running dry: it does not make a difference. On off-site RP communities this might work, but on such a large community such as NS it's too complex.
So... If the NS world is infinite, how big is it? Or is that a weird question?
It certainly is. But on the other hand, it's a very interesting question. People suggested a Dyson Sphere, others just say it's a damn large sphere. When I say infinite, don't think of an endless globe or a huge torus. Think of several plains of a similar reality, connected each other because they somehow overlap each other. Quirky physics and all theoretical. Fun to ponder about though. However, on a more serious note, trying to determine how big the NS planet is, is like asking what was out there before the Big Bang, or what's outside the universe. Such questions simply cannot be answered.
So... what's the verdict?
Nothing actually. Here I wanted to say how much I dislike the concept of regulating roleplays by sassing off others who have fine ideas, but cannot be put to good use because NationStates is supposedly a finite place. It isn't, NationStates cannot be a finite place. Platinum is a rare mineral on earth. On NS, it's more commonly found than iron. The proportions are gone, and since there's no such thing as geography coded into the software, it cannot change. Remember, these are the basics of NS, people who play they do not have one or more resources earn my respect. Still, most players do RP they have everything - a bad form of RP in my opinion I wrote about earlier.
Discuss.