NationStates Jolt Archive


Tuples

02-01-2004, 04:49
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FIA does not have a currency per se. We hold data.

For the purposes of generating our own wealth we charge our clients a fee, calculated to serve both their and our interests to the mutual benefit of all.

Our GDP is, therefore, held in multiple demoniations and calculations are based upon the Tuple - a nominal virtual currency representing a variable ratio between our service charge to a client and their national currency.

We charge a flat rate in Tuples which is identical to all clients. This way our service fees are transparent to all but the client concerned.

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If nations were to trade through us, with FIA acting as a broker, then the issues of variable exchange rates would be resolved to a not inconsiderable degree.

We and the client will set the Currency:Tuple exchange rate.

Each nation would see the exchange managed in Tuples.

All transactions between two clients would then be brokered by FIA, thus relieving the individual nations of the need to scour the world looking for the various exchange rates available.

Since the Tuple is a virtual currency, the final outcome of the deal can be an exchange of goods or materials rather than currency, but this is masked by the Tuple ERM and so confusing extraneous detail is eliminated.

If all nations' transactions are measured in Tuples then it is possible to compare deals and select the best one available, without the chaos caused by comparing various and variable exchange rates.

Everyone is a winner.

It's an interesting concept ... but how will your 'clients' know that the exchange rate they are getting with a given nation is comparable to the deal they would get with another?

Let's say my Tuple:Idon exchange rate is 1:2
Another nation (X) has a Tuple:currency rate of 1:1.5
A third nation (Y) has a rate of 1:3

If I were to deal with Y directly, I would get a better deal than if I were dealing with X ... but I won't know this, since all I see is a diferential ratio

Say I want to spend 10 Idons on goods, then the deal with X would be 5 of my Tuples to 6.67 of theirs which is an exchange ratio of 1 Idon to 0.75 of their currency ... costing me 14.67 Idons

But if I choose to do the deal with Y then the ratio is 5:3.33, which is 1 Idon to 1.5 of theirs ... costing me only 6.67 Idons

Clearly, I would be better off dealing with Y, but I won't know this since all I will see is a flat rate measured in Tuples

This misconception provides an opportunity to highlight just some of the benefits to be gained from the services offered by First Independant of Ayakhustyx.

Only the fee we charge our clients is based upon a uniform value in Tuples. This preserves our clients' financial confidentiality.

We perform all the exchange calculations for our clients transparently. In the example above FIA would post the values in Tuples, having performed the exchange calculations prior to listing.

For the values suggested, the listing table would be as follows:

Sagatia 5.000 Tuples
Nation X 7.335 Tuples
Nation Y 3.335 Tuples

It is clear that nation Y is offering the cheapest supply.

Further, at the rate listed, Nation X might decide that it cannot compete and no longer list that service or item, leaving Sagatia in a stronger position competatively.

Alternatively, Nation X might choose to subcontract its service/item provision to either Sagatia or Nation Y, for reasons of commercial benefit - If Nation Y can supply the service/item at such a competative rate, it is to the benefit of Nation X to import from Nation Y, as it can obtain twice as many units for less than the cost of one of its own and make a saving of 0.3325 Tuples per unit transaction - In real terms to Nation X, this is a saving of 0.665 Tuples (0.9975 units of their own currency) per unit when compared to the cost of a single unit of their own.

We feel that this method of listing service/item charges makes a great deal of sense and is of value to our clients since it makes trade options transparent and draws attention to alternative avenues of wealth-creation that might otherwise be hidden by the vaguaries of nation-to-nation exchange rate based transactions.

We look forward to doing business with you.
02-01-2004, 19:16
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