Market Discussions

Removal of around 100 billion a day from Botters? (probably not sustainable. or I may be kidding myself about their persistance)

this is an inflationary thread, the previous post is deflationary.
i like using these words because even though i don't know their meaning they make me feel like i'm doing serious analysis.

speculators will continue driving up prices, more people will start mining, a new equillibrium will be reached in a few months, no derps will be given long-term

'Faucet'...and I speak British English, ffs

There are two sides to the macro picture, money supply and the supply of goods. Eve is suffering mudflation. Too much money and too many goods at the same time, top end goods prices grow, and the base commodities languish. CCP is attempting to reverse this by pulling from both sides and it is a move long overdue.

To OP:

I share your concerns. There is a huge amount of ISK (many trillions) in the system, mostly probably lying dormant on a few accounts.

With the visible inflation on minerals and derivative goods, i think that people holding a lot of isk are getting rid of liquidity. This will accelerate infation even more and will also affect goods that are not directly tied to minerals (such as plex). The velocity of money that has been very low in eve, thereby contributing to deflation, is increasing rapidly.

At this point i don't believe it is enough if CCP reduces ISK generation a bit such as "nerfing" incursions. ISK needs to drained big time via sinks. As long as there are no plans for this i won't hold a high percentage of ISK on my account but push 80 % into goods.

Regards,

GC

No.

Many people I know are jumping into mining. Let the markets do what they are best at: self optimize over time.

This isn't really a solution, because you need to keep _two_ balances. On the one hand you want to keep prices reasonably stable, ie you want the ratio of goods vs. liquidity being "stable" (usually an inflation of 3% is accepeted in real world economies).

The solution you propose is to increase the amount of goods, which in theory works to counter inflation.

However first, this is only partly true: the prices of goods that are _easily aquired_ such as minerals would be stable. Goods that have a bottleneck would experience a steep increase in price regardless, because people can't just switch to generating these goods as with mining.

Second, the second balance, the goods generated vs. goods destroyed ("consumed") needs to stay stable as well. If you just keep increasing the generation of goods for example by making mining more profitable this balance gets out of whack as well. Personally i think we already have way more goods created than destroyed, which leads to nice effects such as everybody and his brother flying a titan.

You need to keep in mind that the mantra "let the market to its job" doesn't really apply to EVE, because eve is NOT a normal economy. Goods and liquidity in eve do not enter and leave the market as with real world economies and therefore the market does NOT create a balance in every case automatically.

The only real solution to the problem is to create a true balance on isk faucets and sinks. The other part of the solution is to balance the destruction of goods vs. the generation of goods. Only then prices will be stable and only then players will have to weight the worth of the ship when it comes to engagements (at the moment that is not normally part of the consideration, people usually are limited by SP not by goods).