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Inflation is not a verb!

Author
Stealing Honest
Stealing Honest Speculation Group LLC
#21 - 2011-11-25 16:50:37 UTC
Anya Ohaya wrote:
The official price indexes show downwards trends.

PI prices rose because of uncertainty around changes to customs offices (and speculation about the uncertainty).
Oxygen Isotope prices rose because of Goons
Plex prices are heavily influenced by speculation. And if you look at the volumes traded there appears to have been a reduction in supply.
Trintanium prices go up and down like this all the time. They have recovered a little from one of their lowest points ever.



^^^ This


Also Plex and Oxytopes are still much to low. We can get them up 25% more if we all work together.



SH
Aethis Rex
Caldari Provisions
Caldari State
#22 - 2011-11-25 19:02:25 UTC
Ten Bulls wrote:
Tinu Moorhsum wrote:
people will be buying titans like rifters


Really, where will people get the materials to build all these titans, Incursions ?

PLEX is the ultimate ISK sink, if people have lots of ISK they use PLEX for gametime.

Oh, and hating economists isnt going to fix the economy (or your ignorance).

EDIT: ah yea, plex isnt sink, i fail.



Plex is not a sink or a faucet. Plex is bought with RL currency, and the selling of plex's is just an ingame transfer of funds. The ultimate Sink is PvP.
Aethis Rex
Caldari Provisions
Caldari State
#23 - 2011-11-25 19:09:48 UTC
VaMei wrote:
As for the price of Plex...

It's just my guess, but I think part of the reason for the price of Plex is CCP's new face. I'm seeing more than a few old faces returning to the game, but the ones I've talked to aren't ready to commit RL $$$ to an Eve subscription yet and are choosing to play on old isk from fat wallets until they believe that CCP has genuinely turned over a new leaf.


Dont they need to drop at least one month to be able to log on? and then plex, correct?
Mortimer Civeri
Aliastra
Gallente Federation
#24 - 2011-11-25 20:37:51 UTC
Aethis Rex wrote:
VaMei wrote:
As for the price of Plex...

It's just my guess, but I think part of the reason for the price of Plex is CCP's new face. I'm seeing more than a few old faces returning to the game, but the ones I've talked to aren't ready to commit RL $$$ to an Eve subscription yet and are choosing to play on old isk from fat wallets until they believe that CCP has genuinely turned over a new leaf.


Dont they need to drop at least one month to be able to log on? and then plex, correct?


No, CCP sometimes offers lapsed subscribers like 5 free days to check out the game again. Especially near expansions. Hoping that they can get them back to subscribing members.

"I don't know which is worse, ...that everyone has his price, or that the price is always so low." Calvin

VaMei
Meafi Corp
#25 - 2011-11-25 22:56:31 UTC
Mortimer Civeri wrote:
Aethis Rex wrote:
VaMei wrote:
As for the price of Plex...

It's just my guess, but I think part of the reason for the price of Plex is CCP's new face. I'm seeing more than a few old faces returning to the game, but the ones I've talked to aren't ready to commit RL $$$ to an Eve subscription yet and are choosing to play on old isk from fat wallets until they believe that CCP has genuinely turned over a new leaf.


Dont they need to drop at least one month to be able to log on? and then plex, correct?


No, CCP sometimes offers lapsed subscribers like 5 free days to check out the game again. Especially near expansions. Hoping that they can get them back to subscribing members.


It's actually easier than that. Any lapsed account can get a 4 hour activation from the account management sceen, allowing enough time to buy a plex to add to the account.
Tinu Moorhsum
Random Events
#26 - 2011-11-27 16:29:46 UTC
Anya Ohaya wrote:
The official price indexes show downwards trends.

PI prices rose because of uncertainty around changes to customs offices (and speculation about the uncertainty).
Oxygen Isotope prices rose because of Goons
Plex prices are heavily influenced by speculation. And if you look at the volumes traded there appears to have been a reduction in supply.
Trintanium prices go up and down like this all the time. They have recovered a little from one of their lowest points ever.



From CCP's own data:

The index values for September 2011 :

Mineral Price Index
12 month change: 19.5%

Primary Producer Price Index
12 month change 24.5%

Secondary Producer Price Index
12 month change 8.1%

Consumer Price Index
12 month change 7.6%

I can't find the downward trend in those numbers. Moreover, if this were a real-world economy, those numbers would be reason for grave concern. Basically what those numbers (especially the consumer price index) are telling you is that the isk you have locked up in your wallet is worth about 7.6% less now than it was a year ago. In concrete terms is like this: for every billion isk you have in your wallet, about 76million of that "evaporated" last year because of inflation. Moreover, the 12 month change in the mineral price price index will cause inflation over 2012 to be even higher.

That said, in terms of game play is it a huge problem? For someone mining veldspar in high-sec 76 million isk isn't made in a day. For those players it should be a big deal. For the fat-cats ... dunno. it's an hour or two of effort over the course of year for zero gain. Personally, regardless of the scale, i don't like griding isk for zero gain.

T-
Rhianna Ghost
Ghost Industries Inc.
#27 - 2011-11-28 07:06:30 UTC  |  Edited by: Rhianna Ghost
Aethis Rex wrote:

Plex is not a sink or a faucet. Plex is bought with RL currency, and the selling of plex's is just an ingame transfer of funds. The ultimate Sink is PvP.


Oh, please for all Gods of New Eden, could we get this straight?

PvP is not an ISK sink. The opposite is the case. Its a faucet. Its a mineral sink. You loose your ship, which is minerals (or moon goo/PI for T2) for the economy and get the insurance.

PvP is important for the market, because otherwise there would be non (except ammo) but it proposes inflation. More ISK and less to spend them on in the system.

And one way to make mining a valid part of the game IS inflation. Because then your reward for mining can match the reward from incursions again. For the players sitting on their large piles of ISK inflation is bad. For the players that let their money work (production, trade, research etc.) it does not matter, they loose nothing. Just the numbers are getting bigger.

As the OP stated: Inflation is an de facto ISK sink.

Of course, somewhen in the future we need an ISK sink to match the faucets. But will the (for example) incursion faucet be as wide open as it is now, if you can get a simmilar amount of money from mining? I like to disagree, as people will spend their time diffenrently then.

Just my 0.03 cents (you know, inflation, right?)

Rhianna
Tinu Moorhsum
Random Events
#28 - 2011-11-28 12:59:43 UTC
Rhianna Ghost wrote:


Oh, please for all Gods of New Eden, could we get this straight?

PvP is not an ISK sink. The opposite is the case. Its a faucet. Its a mineral sink. You loose your ship, which is minerals (or moon goo/PI for T2) for the economy and get the insurance.


I don't follow your logic. If you buy a pvp ship for 50 million isk and it gets blown up then you have no ship and you're 50mil isk poorer. And if you win, then the other guy probably lost, which means it's his wallet that suffered. That's an isk sink.

... and before you point it out, if you salvage the wreck and sell what you picked up then, yes, your wallet may grow but that's *transfering* isk from the loser to the winner and not creating isk.

Activities that create isk out of nothing (or out of time/effort) are isk faucets. Things like mining, ratting etc.

Seem pretty straight forward to me.

Quote:

PvP is important for the market, because otherwise there would be non (except ammo) but it proposes inflation. More ISK and less to spend them on in the system.


Er... yes. Every purchase is good for the market. If people didn't buy stuff then there would be no reason to make a lot of it. Part of what keeps prices down, in fact, is the mere fact that there are fewer items being sold than made. In other words, there are fewer isk sinks than faucets. For producers this is a bad thing because it puts margins under pressure... sometimes to the point that producers end up selling for under the cost value of making an item (I assume) just to get it out of inventory. If you want to see many examples of this, then look at the T1 market. It's FULL of stuff you couldn't make for the price at which it's being sold.

Quote:

And one way to make mining a valid part of the game IS inflation. Because then your reward for mining can match the reward from incursions again. For the players sitting on their large piles of ISK inflation is bad. For the players that let their money work (production, trade, research etc.) it does not matter, they loose nothing. Just the numbers are getting bigger.

Yeah, in that way it's a bit of a mirror for the real world. Savings evaporate and investments in things that increase in price with inflation are generally "good investments". If you make a lot of money then simply speculating market is an easy way to make isk in eve. To pick a random example, if you were to invest say, 30 billion in buy orders for minerals you see on the inflation curve and just stockpile them then you can take your profit over the course of a year as you need it. A buddy of mine does this and he has a good nose for things that tend to be subject to inflation. Last year IIRC he invested 14 billion in something (can't remember what), sat on it for a year and sold it for 20. That's a way, if you have the patience for it, to make inflation work to your advantage. In other words, he was making over 100mil a week just by stockpiling stuff that happened to go up a lot in price. (now that I think about it, it might of been one of the POS fuels). The trick is to see it coming before you find yourself fishing behind the net.

Getting back to what you said, inflation would work to a miner's advantage if he held on to his stockpile (at least of minerals subject to inflation) for as long as possible before selling them.

Quote:

As the OP stated: Inflation is an de facto ISK sink.

Yeah, and the more I think about it, the less of a problem I see it being. Maybe I'm becoming an economist but what you don't want is for players (after all it remains a game), to be poor and unable to get ahead. That would happen if the isk sinks and faucets were in balance.... You don't want to make people risk averse becuase they are always worrying about their wallet. You want people to have money to spend on shiny toys and to not worry too much if it gets blown up.

Maybe the solution is to occasionally just devalue the ISK and take off a zero so people don't get dizzy looking at the prices of things. :)

T-
Rhianna Ghost
Ghost Industries Inc.
#29 - 2011-11-28 15:04:07 UTC  |  Edited by: Rhianna Ghost
Tinu Moorhsum wrote:
Rhianna Ghost wrote:


Oh, please for all Gods of New Eden, could we get this straight?

PvP is not an ISK sink. The opposite is the case. Its a faucet. Its a mineral sink. You loose your ship, which is minerals (or moon goo/PI for T2) for the economy and get the insurance.


I don't follow your logic. If you buy a pvp ship for 50 million isk and it gets blown up then you have no ship and you're 50mil isk poorer. And if you win, then the other guy probably lost, which means it's his wallet that suffered. That's an isk sink.

... and before you point it out, if you salvage the wreck and sell what you picked up then, yes, your wallet may grow but that's *transfering* isk from the loser to the winner and not creating isk.

Activities that create isk out of nothing (or out of time/effort) are isk faucets. Things like mining, ratting etc.

Seem pretty straight forward to me.


Where are ISK lost in loosing a ship? You may loose them, but the economy does not. You buy another one from another player. You just transfere them. (OK, faction and pirate ships bought in LP stores are a different.)

And where are ISK created by mining? Ore/Minerals, yes, but not isk. If you sell them at the market you just get the ISK from another player. Or when did you sell minerals to an NPC for the last time?

Tinu Moorhsum wrote:
Part of what keeps prices down, in fact, is the mere fact that there are fewer items being sold than made. In other words, there are fewer isk sinks than faucets. For producers this is a bad thing because it puts margins under pressure... sometimes to the point that producers end up selling for under the cost value of making an item (I assume) just to get it out of inventory. If you want to see many examples of this, then look at the T1 market. It's FULL of stuff you couldn't make for the price at which it's being sold..


Again: the market is (at large) not an ISK-sink. You just transfer it from one wallet to another. And the problem with the stuff sold "too cheap" is mostly a problem of people thinking everything they mine is free, not realizing the really loose money by manufactioring.

Rhi
OllieNorth
Recidivists Incorporated
#30 - 2011-11-28 16:21:51 UTC
To illustrate the effect of ship losses on the economy, let's go back to the good ol' days when BoB folded and there was mass warfare in null. Due to all the cap ship losses, trit was over 4 isk/unit for months. (This would be inflation) Since the null-sec wars have cooled off, fewer ship losses have led to lower demand on minerals, especially trit, which has dropped prices back down.

Ship losses drive the economy, but they also drive inflation. They are a mineral sink, not an ISK sink.
Adunh Slavy
#31 - 2011-11-29 00:15:48 UTC
Rhianna Ghost wrote:

As the OP stated: Inflation is an de facto ISK sink.



It is a wealth sink, not an ISK sink.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Party Lips
Calamitous-Intent
#32 - 2011-11-29 22:40:17 UTC
anyone comparing EvE to WoW is dumb. I don't ride a magical pony I fly a freaking spaceship. my economics is better then your economics. nuff said
Ni Cho
Federal Navy Academy
Gallente Federation
#33 - 2011-11-30 04:08:00 UTC
Quote:
That is... utterly UTTERLY rediculous

Quote:
utterly UTTERLY rediculous

Quote:
rediculous
is not an adjective

ri·dic·u·lous


Yea.
Ni Cho
Federal Navy Academy
Gallente Federation
#34 - 2011-11-30 04:08:11 UTC  |  Edited by: Ni Cho
Quote:
That is... utterly UTTERLY rediculous

Quote:
utterly UTTERLY rediculous

Quote:
rediculous
is not an adjective

ri·dic·u·lous


Yea.

EDIT - Double post. Ah instant Karma
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