Initial Thoughts on the General Food Market |

Published in United States of America - Financial analysis - 7 - 17 Oct 17 13:00

One of the most important parts of this game, and arguably the most important influence on our warfare, is the national market. It is no surprise that many of our bourgeois comrades here in the US sell and buy goods abroad, and I cannot fault them for making that quick buck; The usage of exports to increase our gold economy in the US is a legitimate strategy, and one that will no doubt be one of the many pathways to American survival in the Edom world. However, the national market is where incoming, low-leveled, and casual players will find their home, and as such will be the first introduction of players into the intricate finances of the Edom world market. Therefore, tending to, and caring for our national market should always be a priority of the player, especially one that seeks to liberate US territories and expand where needed. 

So, we must first begin with examining the prices of goods in the national market; 

One market that experiences a variety of complex influences is the RM(Raw Materials) Grain and FP(Finished Product) Food market. 

The first market that a player will be introduced to is this RM/FP relationship, and is arguably the most important market to an active playerbase, given the necessity of food for energy production. The General price of RM Grain on the US market is .0600, with slight variations day to day based on market factors. Many of our highest echelon players produce in this market, including our own Ulysses S. Grant, Seth Rich, AlexJones, and other high leveled players, and the low prices they produce at allows for small producers to buy up grain, and produce food reliably, but the largest producer of RM grain in the US market is our Chinese ally, producing 1820 to the American market, and potentially draining our money from the economy given the fact he appears first on the list of RM grain, due to the order partially being reliant on the number of goods available to purchase. If we want to maintain our economic sovereignty, we need to have our own American high level players providing the market with a higher amount of RM grain, causing players to buy American and keeping an inner flow of currency available, especially if they are to provide decent paying jobs for our new citizens.

We then come to the FP Food market, divided up by tiers 1-5 by the energy they provide.
Lowest available prices of various food qualities are as follows:
*1- 1.5 USD
*2- .390 USD
*3- .540 USD
*4- 20 USD
*5- 19 USD

The price of first tier quality food is badly inflated despite the abundance of *1 FM food production, partially due to the presence of so many new players automatically setting their prices at 20 USD per unit of food. This practice is also due to the fact that much *1 food goes directly to energy production of new players, given the low yield of energy from the food. This gives rise to the question; Why does the free market not provide the low price food at an affordable rate for those looking for *1 food, give the profit margin is rather high considering that what we accept as the natural rate of RM of food is .06. 

Granted, the energy produced is actually greatly increased by upgrading to a *2 facility, with the energy doubling for the same amount of RM input, and giving 10% increase total yield assuming no increase in workers occurs. Therefore, if one seeks to flood a market with affordable prices for low quality food, you would likely build many different factories, only upgrading each one to quality 2 and setting that price at an acceptable price, taking into account the wages you pay workers(Wages may be a later discussion; I dont have enough available experience to analyze the Job Market.)

Now, we can analyze market *3 considering that the energy production increases only +2 per unit, no increase in available workers, and so only increasing the base rate of production by 10, upgrading a facility from *2 to *3 is perhaps the worst decision without having the available funds to upgrade that company further to a *4 factory. 

Prices of *4 food are dominated by people storing it in the market at prices too high to justifiably buy the resource, and likely points to a class of highly leveled players hoarding high tiered food and passing that food amongst themselves and using it to maintain their growth and energy production without letting it become available to the market as a whole, but considering the availability of a foreign market license, this is a legitimate concern as far as national defense is concerned, and as long as that food is distributed given a common understanding of the need of the national defense to provide its soldiers with enemy, this is probably a good decision and buying *4 *5 food is likely not worth the trouble.

Overall, the food market in the US needs major reform, including a conscious effort by our society to understand that providing food to the market, allowing those looking to use their energy on working for our weapons manufacturing centers, and providing other goods to the market as a whole instead producing their own food, then we can advance as a nation more fully, and maintain our hold on our nation.

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Comments (7)

17 Oct 17 13:35
DreSanu

You can buy cheap from other markets and place on USA market for same price + an extra 5-10%, that way you can provide cheaper food/raw for your fellow citizens

17 Oct 17 13:39
Bozhe Bombi Donbass

commie can`t into economics regular players know better how to spend their energy tbh

18 Oct 17 01:24
Chernobog

rabidcarebear (love that name) for Minister of Economy!

18 Oct 17 07:31
rabidcarebear

@DreSanu Oh definitely, and that could be a great strategy going forward, especially when facing mass scalpers seeking to raise the price over time by buying the cheapest goods available in mass qualities and adding small amounts of increased prices. @Bozhe Bombie Donbass Of course better players know how to better spend their energy for certain instances. Were you going to point out specifically where you thought the issues raised were inefficient energy-wise, or were you just seeking to get a rise out of me @Snake That s premature at the moment. I m still learning. As it stands right now, I m a journalist and developing player.

18 Oct 17 07:36
rabidcarebear

@DreSanu While it is a bit negligible in small amounts, especially when buying RM Wheat, it should be noted that shipping it products means you are draining the economy s gold stache, however negligible it is. Actually buying mass quantities to ship here also means that you re not producing at home, and instead paying foreign players to do work that new players or developing players could be doing in the US economy, while keeping that flow of gold in the economy letting our own players develop into strong fighter against foreign enemies.

19 Oct 17 10:14
Gunpowder

The ROI for RM is really rough, same with any tier food, hard to justify producing vs for example, houses or weapons

19 Oct 17 15:13
rabidcarebear

@Leperkawn I agree fully, and calculating a natural price of houses as well as weapons is going to be a later article, as well as looking at the implication of the inflated or deflated prices of items and their real worth, however examining food is an important topic because it is how new players are usually introduced to the market system and it should be seen as an entry level produce. It all depends on what we re looking to do with our gameplay after all.