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Inflation, Speculation and Profit
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wiskyjack
New Eden Mining Organisation
The Craftsmen
#21 - 2012-04-24 12:28:26 UTC
Whitehound wrote:
wiskyjack wrote:
I see a flaw in your argument,

A year ago I bought 2 hulks after hulkageddon for 70 million each. One I left in hanger never used, the other I use.
The one I use has more than paid me back the 140 million. Both can sell for 350+, which at a rough guess is 250% up on my original outlay.

If I sell today I will have over one billion in my wallet including isk made from mining.


How have I not made a profit

Because ISK itself has no particular value.

Your ISKs now will only buy you another Hulk, just as they did back then.

You do have more ISKs, but you cannot profit from having more than you could have profited back then. Hence, no profit.

Or

With said billion I could build a Kronos for 500 million and sell it unfitted for another one billion bringing my wallet to 1.5 billion (going by current jita prices).

or am I imagining making isk.
LordParj
Kenshin.
Fraternity.
#22 - 2012-04-24 12:33:04 UTC
Do we get a raise in salary with inflation like Continental SRL, give us?
Whitehound
#23 - 2012-04-24 12:41:45 UTC
wiskyjack wrote:
or am I imagining making isk.

Sure will you have more ISKs than yesterday, but you cannot fly ISK, you cannot fit ISK to a ship, you cannot build a ship out of ISK. It is only an illusion.

If however the prices go down and you have kept your ISKs then you have made a profit even when you did not do anything for it.

Loss is meaningful. Therefore is the loss of meaning likewise meaningful. It is the source of all trolling.
clixor
Celluloid Gurus
#24 - 2012-04-24 12:43:07 UTC
Montevius Williams wrote:
TravisWB wrote:
The American Government indoctrination system known as public education has been relentlessly churning out socialists for over 20 years.




Im giving you a thumbs up just for this statement alone. Now I can say this to people at work and feel smart. lol

+1

Edit: As a matter a fact, Im using this is my sig. Hope you dont mind


I hate to go OT but i'll make an exception in this case:

dude(s) stop watching Bill O'Reilly and inform yourselves. Read Das Kapital and then come back making assumptions.

Now i got that of my chest. Exactly one year ago talk of the town was deflation, now inflation. meh.

Akita is correct, it's about purchasing power, inflation is a state where income stay equal or declines and prices increase. However... in RL interest rates would rise, as we don't have a (central) bank in EVE so the only players that are really effected by the current state of things are players with NO income, NO significant assets and big wallets as really the only item they need are PLEX.
Xython
Federal Navy Academy
Gallente Federation
#25 - 2012-04-24 12:44:15 UTC
Misanth wrote:
..never seen this type of thread before, refreshing!


I do like the wingnutty "anti-Obama" slant he has in his first few replies though, just what I want to read when I'm playing a game about Internet spaceships: conspiracy theories about our President.
wiskyjack
New Eden Mining Organisation
The Craftsmen
#26 - 2012-04-24 13:06:29 UTC
Whitehound wrote:
wiskyjack wrote:
or am I imagining making isk.

Sure will you have more ISKs than yesterday, but you cannot fly ISK, you cannot fit ISK to a ship, you cannot build a ship out of ISK. It is only an illusion.

If however the prices go down and you have kept your ISKs then you have made a profit even when you did not do anything for it.

You remind me of the architect from the matrix.... Ergo the door is not a door ,but a door is a -.......... Ergo,ergo ergo
gfldex
#27 - 2012-04-24 13:12:25 UTC
TravisWB wrote:
Inflation makes everyone poorer.


Let's say I would like to buy a carrier skill book. Assuming I make 50M/h it would take me 9 hours to get that ISK. Since I'm a clever guy I was working for 4.5 h, took the ISK and bought Nocx with that money (or Pax Amarrian for that matter). Prices doubled and I sold. Now I got a carrier skill book for halve the invested time.

I am very sorry but you have clearly a very poor understanding of economics.

If you take all the sand out of the box, only the cat poo will remain.
Whitehound
#28 - 2012-04-24 13:15:56 UTC
wiskyjack wrote:
You remind me of the architect from the matrix.... Ergo the door is not a door ,but a door is a -.......... Ergo,ergo ergo

Why did you not tell me earlier? What you need is ice cream!

Loss is meaningful. Therefore is the loss of meaning likewise meaningful. It is the source of all trolling.
Tippia
Sunshine and Lollipops
#29 - 2012-04-24 13:18:56 UTC
War Kitten wrote:
TravisWB wrote:
... Viola, that is the profit incentive in speculation. ...
What does a bowed string instrument have to do with profit incentive?
…or plants, for that matter?
Nirnias Stirrum
UberWTFBBQ and Battle Technologies
#30 - 2012-04-24 13:23:09 UTC  |  Edited by: Nirnias Stirrum
AMURIKANS trying to understand maths since July 4, 1776.

Let me break it down for you:
jimmy bought his apple for 1 euro and ate it.
Bobby bought his apple for 1 euro and ate it.
Sandra blew 2 guys for 2 apples.

Sandra sells both her apples for 1.50 each.. Sandra just made a profit of 3 euro!

Or if you want a more serious answer
I buy 5 million units of Nocxium @ 530isk each.
Wait for price to go up its now at what? 990 or something?

I can choose any time to sell my nocxium and it doesnt matter when because ill make a profit. Nocxium is pretty much guaranteed to never go below 530 again unless CCP do something else that changes it.

So lets say i sell at 1060 per unit.... thats a 5bisk profit there.. thats me infact getting richer by 5bisk. not getting poorer!
Janet Patton
Brony Express
#31 - 2012-04-24 13:30:57 UTC
Inflation = Everything goes up in price. Except your wages.

Why do I have this sig? I don't smoke.
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