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Suggestion : Debt Limitation

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Lasfaro
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Post: #1
Suggestion : Debt Limitation

To be provide a more a realistic experience, maybe nations can be limited with debt they can accumulate , depending on government and reputation.

So we see it in the world right now, world governments are riddled with debts. Greece , the most noticeable, has obtained large insane amount of debt , which they would of defaulted on if they weren't provided with a bailout.

Default would lower economic activity and currency value.

But a major factor is who are the lenders?
The people, another government or corporations?

Maybe one nation can block its subjects from buying another country's credit.

Just something for the developers to digest.

13.02.2012 20:28
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Helsworth
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Post: #2
RE: Suggestion : Debt Limitation

Lasfaro Wrote:
To be provide a more a realistic experience, maybe nations can be limited with debt they can accumulate , depending on government and reputation.

So we see it in the world right now, world governments are riddled with debts. Greece , the most noticeable, has obtained large insane amount of debt , which they would of defaulted on if they weren't provided with a bailout.

Default would lower economic activity and currency value.

But a major factor is who are the lenders?
The people, another government or corporations?

Maybe one nation can block its subjects from buying another country's credit.

Just something for the developers to digest.

That would complicate the matrix so much... Besides in Ars Regendy states have monetary sovereignty, the regent acts also as the central bank.


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13.02.2012 20:29
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Sheep
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Post: #3
RE: Suggestion : Debt Limitation

Lasfaro Wrote:
To be provide a more a realistic experience, maybe nations can be limited with debt they can accumulate , depending on government and reputation.


High debt is already penalized in Ars Regendi, people will lose trust in your policies and make sure you lose your regency. The one or other way...


13.02.2012 21:06
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Lasfaro
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Post: #4
RE: Suggestion : Debt Limitation

There has to be a lender factor , because money shouldn't be able to appear out of thin money.

Some limitation beyond lose of trust. A certain point where you automatically default.

If you start a war , where are you going to borrow the war from?

13.02.2012 21:30
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Helsworth
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Post: #5
RE: Suggestion : Debt Limitation

Lasfaro Wrote:
There has to be a lender factor , because money shouldn't be able to appear out of thin money.

Some limitation beyond lose of trust. A certain point where you automatically default.

If you start a war , where are you going to borrow the war from?

In reality you print money, look at the green backs. Look at Japan, it has a public debt of 220% of GDP and it's in no danger of defaulting, unlike Greece which has a lower debt to GDP ratio than Japan. The problem is that Greece is indebted in a foreign currency, while Japan is indebted in its sovereign currency and most of the debt is held by autochthonous investors. Greece has a trade deficit, while Japan is a net exporter of capital. Ars Regendi simulates currency depreciation when your economy is not performing while pilling up debt.


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This post was last modified: 13.02.2012 21:40 by Helsworth.

13.02.2012 21:40
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Malone
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Post: #6
RE: Suggestion : Debt Limitation

It would be quite simply to say: when your debt is over xx% auf the GDP you go exitus because of bancrupcy. But what could be the gain of that feature?


Politischer Test Test site from Ars Regendi for the evaluation and comparison of political alignments

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14.02.2012 16:18
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