Financial Crisis News

[Aquinas]

'Reine Marie' offers 'gift' to Dalibor.

Dalibor- The wealthiest woman in the world has reportedly offered the nation that started the global financial crisis a 90.2 Billion LOD rescue package, financed entirely from her own purse.

OOC: Sorry for butting in, but could I ask if you would be open to considering scaling down that figure? It looks on the large size; to put it into context, Lodamun's entire GDP is 294 billion LOD (see here).

Thanks for starting this thread, BTW - hopefully it will start to get used now!

[Oakwood]

OOC: Okay. I scaled it down. Hopefully that's still enough to bailout a small island tax haven.

[Dinkus]

AZBAN STOCK MARKET CRASHES IN GADURIDOS

This morning at 10am the Gaduridan Azban stock market crashed.
This was the result of Gaduridos' major ties to some of the nations affected by the crisis such as Dorvik and many Gaduridan companies owning major production subsidiaries in the third world countries. Some economists have also been partially blaming the recent terror attacks in Gaduridos for destroying investor confidence in Gaduridos.

In reaction to this the Federal Economic Regulation Council (FERC) was founded as a governmental body with equal representation from every party, the goal of the council is to prevent the crisis from further affecting Gaduridos.

A bill was agreed on that would speed up bill proposals relating to the economic crisis, and make the Apocalypse Party and the Gaduridos First Party the temporary representatives of Gaduridos in this crisis.

[General.M]

Vanuku offers loans to Terra

Vanuku is the first of the 'Big Five' to offer loans to terra. The entire Grand Council voted in favour of the 'Loans to Terra' bill which offers 10.000.000.000 VAN to struggeling nations in Terra. But it has costed Vanuku a lot. The unemployemend benefits have been lowered and the 'Emergency Investments' have been lowered, all to fund the loans. Insiders in the Republican Party say that the Republican Party voters aren't all happy about this bill. They would rather invest in their own nation. But for now, the complainers are still a minority, but the minority is growing.

Markets appear to be stabilizing.

After the start of the financial crisis the stock market of Vanuku has been bleeding red. But now, the market appears to be stabilizing. They are of course not on the level of before the crisis, but they have stopped dropping as hard as they did before. Good news for the government, which says that this is the result of their hard work. And the good news isn’t over, unemployemend is also dropping slightly.

Financial Vanuku
This weeks stock exchange:

Chemieman -2,5%
Vrijstaal +0,3%
Petrovan -1,6%
Pecnék -1,2%
Gbar-Sending -1,1%
Zhtal +1,4%
Vanutech +0,1%
DFN +1,1%
Shipyard Havendam -2,3%

[Axxell]

ECONOMY TODAY
The columns of Corriere d'Istalia dedicated to the country's economy

Stockexchanges in decline, rising inflation and unemployment rate


ROMULA - Nowadays, istalian stockexchanges are following the trend of those of the rest of the world, with the main national and international stocks which are experiencing constant drops; to suffer more than all the stock of Hasan Grand Holding, which yesterday closed with a -10.3.
The Hasan Group, as already mentioned, was the financial-industrial group most affected by the crisis of the markets that broke out in Dovani and has already seen several failed subsidiaries in the Country, investment banks and insurance companies in the first place, while abroad, especially In Dovani, holding companies are failing in most of the eastern states week after week.
A tough hit also comes from Baltusia where Burgmuller Pharmaceutical, one of Hasan's major investments in Seleya, has already had to close down several factories, while the proposal for a recapitalization by the baltusian's management is putting Hasan in an even more difficult position.
The effects of the crisis are also being felt on the everyday life of Istrian citizens who are seeing the general prices of goods and services increasing more and more, due to the rise in the cost of the Commodities on international markets and in particular agricultural products: in this sector, Hasan is also suffering greatly since many subsidiaries in Dovani are agricultural and agri-food businesses which, with the collapse of the general demand, are losing big and already one of the main, The Oltremar Tropica and Temania Corporation had to significantly reduce their activities in Temania and Tropica leaving no more than 9,000 workers unemployed, mostly poor laborers employed in extensive palm and sugarcane crops.
Regarding the unemployment rate in Istalia, this has reached almost 7% (two and a half times higher than at the beginning of the crisis) and the forecasts of most analysts fear a rise in the coming months that could hit 10% already at the end of next year, mainly due to a serious crisis in the metal industry and Estal which decided to close its dealer agency in Artania and Keris.
The Istalian GDP as well as those of most of the world's economies has already experienced a serious slowdown compared to the high performances of the beginning of the century (the GDP was +3.2 per year) a fall of more than two percentage points, but as for the rate of unemployment, this value should also worsen and 4206 is expected to be a negative sign.

However, it is well to hope the agreement reached between the three major political forces in the country, the Republican Party, Istalian Democracy and Freedom and Progress, which allowed President Berlusconi to present a liberal government which has already announced that it will introduce the proposals made by Filippo Marra, the Freedom and Progress' expert economist, who also found a broad support from the rest of the country's liberals.
Larger liberalizations should have already excited companies and investors while large general strikes have been already announced by most of the public sector employees who will face major cuts following the announced welfare reform.
The candidate Minister of Finance and the one of the Health and Social Services, Filippo Marra himself and Elio Bertinotti, have already announced that as soon as they are settled they intend to organize a series of meetings with the Trade Unions to find an agreement which can guarantee a process as smoothly as possible and thus start bargaing between trade unions and enterprises for the re-absorption of public redundancies into the private sector.
Bertinotti has, however, guaranteed that for the moment the future government has already decided not to undermine neither wages nor unemployment benefits so as not to further affect the purchasing power of citizens and to ensure adequate coverage for former public employees During the redeployment period.

[Apulia-2]

Chair of Williams School of Economics: "You Can't Spend Your Way Out"



The Williams School of Economics, located at Williams University in the province of Kenai, Hutori, is famed for its free market, anti-government conclusions. The Williams School's way of thinking (OOC: Austrian Economics) has grown in the last century of Hutorian politics, and among other things Hutori has adopted increasingly localized policies as well as exchange rate forms that tied the country's Lira to the value of gold.

The Chairman of the Williams School, John DeCosta, spoke at a conference on the financial crisis at the Liberty Institute in Acton, a major city in Adelia, Hutori.

"Trade reform, in my mind, is essential for the long run health of the nation. The extent to which the government is involved in trade is the extent to which trade is limited between nations. I would agree that we need to cut agricultural subsidies wildly, as well as massive cuts across the board.

The governments of Terra are involved in their economies, and this financial crisis is their reckoning. You can't have your cake -- false prosperity -- and eat it too -- not have a recession. The recession will end faster if more governments adopt the gold standard, cut their tax rates, and ultimately let the economies of the world sort themselves out.

Will there be unemployment and suffering in the short term? Yes, but it's the future you chose by binging on cheap credit and government involvement in the economy.

I'd like to reference the move towards increasing "aggregate demand" in an effort to quell the recession. I will state that the use of monetary policy will create a long-term bubble that will cause another recession in a few years. The use of fiscal policy will give unproductive workers jobs, thus providing an unnecessary drain on the economy.

So, in short, to the nations of Terra, I'd say: cut taxes, cut spending, and tie your currencies to gold.

[Aquinas]

July 4205

Yurievna's economic round-up

Katina Lesya Yurievna, the Kodonist (OOC: Keynesian) economist from Trigunia's University of Yuravitovo who is fast becoming one of the most quoted commentators on the global financial crisis, has given a wide-ranging interview to International Economic Weekly magazine, in which she talked about how governments around Terra are responding to the recession, praising some whilst criticising others.

Vanuku

She was gushing about Vanuku, saying she gave the government "full marks for investing in their economy, caring about their businesses, spending money to shore up the international economy and being bold enough to set aside the fetish of the balanced budget by borrowing money now in order to tackle the crisis". Vanuku's government was also acclaimed for "showing real far-sightedness - right now, you'd have to say Vanuku is the only great power showing real economic and moral leadership in the world".

Rutania

Rutania also came in for strong praise, with Yurievna saying she "doesn't always see eye to eye with socialists on everything all of the time" but that she thought "the decisive and correct response of the Rutanian government to the economic challenges is proof, if any were needed, that a socialist government can successfully manage a major modern economy".

Lodamun

Yurievna beamed whilst talking about Lodamun's President Carlo Walem, calling him "a fine, strong leader - and if I may say so, rather sexy as well". She said Lodamun was doing "absolutely the right thing by spending the money it has saved up during better years", and described as "visionary" his seaport upgrade and citizen bonds plans.

Indrala

However, she was less flattering about some of Terra's top economic powers. Yurievna was most scathing about Indrala's commitment to laissez-faire and "wei wu wei" (action without action), calling it "the surest possible sign that Indrala has been taken over by the dullest and most unimaginative accountants in Terra, and is incapable of meeting its responsibilities as a global economic power". She even blasted Indrala's policies as "economic terrorism", and called for it to be "excluded from important meetings of international finance ministers until it starts to adopt more constructive policies".

Barmenia

She cautiously welcomed news that Maria Nasir, the former Queen of Barmenia, had offered a large gift to Dalibor in order to help it with its economic woes. However, she questioned whether the gift could really have been large as the reported sum of 30.2 billion LOD, saying "Few people in Terra have access to that kind of money, and I'm not sure Maria Nasir is one of them". She also said she "would like to know whether there were any conditions to the loan, and what Nasir was getting out of it - officially or unofficially".

She laughed off reports that Nasir had branded her an economic lunatic, saying "I've been called a lot worse than that".

Gaduridos

Gaduridos was also mentioned briefly; Yurievna praised the government for establishing a Federal Economic Regulation Council (FERC) representing all of the political parties, lauding this as "exactly the kind of bi-partisan co-operation we need to see across Terra". However she warned that "Gaduridos still needs to take some decisive action and to stop recklessly depressing their economy by running such a large budget surplus".

Aloria

Aloria was praised, with Yurievna hailing the nation's high-speed rail project as "exactly the kind of thing governments should be doing right now, investing to boost the economy's key infrastructure and encourage long-term development". She also praised Aloria for its "sensible thinking" in being prepared to run a budget deficit during the recession. However, she mentioned the social unrest in the country, and warned that "in times of hardship, it is important to make sure the rich pay their fair share, and that the burden does not fall too heavily on the poorest".

Artanian Union & Dorvik

Yurievna told her interviewer that "in an increasingly small world, it is more important than ever for governments to work together", and praised international organisations like the Artanian Union, which she called "important parts of Terra's political and economic architecture". She called on Dorvik "to consider the great advantages of being part of the Artanian Union - I really think both the Union and Dorvik would be better off if Dorvik was in it".

Williams School of Economics

Asked about the views emanating from the Williams School of Economics in Hutori, she spoke fondly of its chairman John DeCosta, calling him "very intelligent, very learned - most unlike the majority of neo-liberal ideologues", but saying she still thought his "economic ideas are essentially destructive, narrow-minded and elitist".

OOC: Whew this took a little longer than I thought to write! If I made any obvious mistakes or wrote anything too stupid please let me know (half asleep and rushed for time ATM...).

[Oakwood]

Maria to Dalibor, Yurievna: "Would you like it all to be in cash or would you like a check?"

La maison sur le Mont, Nuomonde- The former Barmenian Queen and new bride of King Henri was reached for an interview at her lavish manor on the outskirts of the capital. Having already received the news from an aide, the woman smiled as she gestured for a man, no older than ten and three, to open a black suitcase. The contents were clear; it could only be currency.

"That..." said Queen Marie "....is roughly fifteen of the promised thirty billion Lodamun dollars. All in the larger bills, you understand."

Drinking a glass of wine, she seemed to grin before laughing off the article by Yuievna. With her daughter, Anne, by her side, she seemed to snicker briefly before finally proceeding to openly mock the economist. There was even derision of her "hair brained idiocy" on economics.

She later asked if they would like her to give Dalibor the money in bills or a check.

"After all." said Maria "I wouldn't want dear Katina to think I was some kind of delusional nut job. We wouldn't want her to think she was out of work."

"I must call the Tzar." said the woman "Perhaps he can stop her from bringing the world economy to its knees."

Regarding the William School of Economics, the Queen called it "Yurievna's argument's, just downgraded and put into a blender."

[Adithya]

OOC:-Great Post Aquinas!

Hendrietta Schroeder,Dorvish Leader of the Official Opposition Criticizes Trigunian Economist Yurievna"s views on the AU as "Completely Wrong"

Mrs.Schroeder While Speaking to The Dorvish News Service:-



Hendrietta Schroeder,The Leader of the Artanian Skeptic Green Liberal Party has criticized Trigunian Economist Yurievna"s Views on the AU as "Completely Wrong"

I believe that Ms.Yurievna"s Views on the Artanian Union are Completely Wrong,She thinks that the AU helps Dorvik During this Difficult Economic Situation.But it actually doesn't and actually would harm us more by forcing our nation to pay millions of DDO per week as membership fees which is now being effectively used to invest in Healthcare,In Education and Into Infrastructure.The Artanian Union threatens our sovereignty and our rights.Instead of encouraging Free Trade and Immigration,It has turned into a protectionist alliance which prevented Dorvik from crafting Trade Deals with non Artanian Nation's and Discouraged Dorvik from taking in Non Artanian Migrants.The Bureaucrats Sitting in Fort William or Vanderburg need not tell us what to do and what not to do.

And Mrs.Yurievna must check out the facts before cheering for the AU.I have respected her theories as i am sort of a Kodonist myself but her support to the AU is completely absurd.

[Polites]

Crisis hits Kalopia



Although Kalopia managed to wither the initial outbreak of the financial crisis, starting with January 4205 the Kalopian economy was hit particularly hard, seeing Kalopian assets plunge and leading to increasingly violent social unrest. The crisis is especially painful for Kalopia given the difficulties resulting from its slave-based economy. Although slavery was banned in September 4202, the Kalopian legal system includes no penalties for slave ownership, resulting in the unofficial continuation of the system in many areas of the nation. But the biggest impact on the Kalopian and wider Majatran economic system came as a result of Kalopia's status as a tax haven. Acting as a "satellite" tax haven for the Istalian and Kazulian economies, Kalopia became a conduit for illicit financial flows from the developing countries in Majatra into financial centers in Romula or Skalm, leading to large macroeconomic imbalances, especially since much of the activity taking place in Kalopia was not measured by conventional national statistics, due to trade mispricing and tax avoidance. The decades of complete lack of regulations have led to financial businesses taking advantage of the system to carry out illegal or unethical activities in Kalopia while also allowing the various players involved in the crisis to conceal their biggest losses, leading to a buildup and to Kalopia becoming a conduit transmitting the shocks of the global financial collapse quickly through the Terran economic system.

All these problems, plus the issue of the negative effects of the slave-based economy, have led to Kalopia being hit far worse than all the other Majatran jurisdictions. With large parts of Kalopian territory under foreign rule, and the remainder under a weak republic where Ahmed Raptis, the CEO of the infamous Eilomax Company, simultaneously holds the roles of Head of State and minister of Finance, Defence, Infrastructure and Transport, Science and Technology, and Trade and Industry, Kalopians have lost all faith in the ability of the government to restore democracy and human rights to the nation. These chaotic conditions have led to a rise in revolutionary activity; the Workers' Revolutionary Front, the militant anarcho-syndicalist group that provided the pretext for the Istalian military intervention, has seen its support and membership rise. Although until recently the Front recruited primarily among slaves and freedmen, with the global financial crisis hitting Kalopia especially hard, its popularity soared. The financial crisis and the loss of confidence in the government and the Istalian and Kazulian protectorates also led to the emergence of a new player on the Kalopian political scene, the League of Communist Vanguards of Kalopia-Wantuni. Subscribing to the 34th century ideology of Jalalism and inspired by the ancient Royal Vanguard Society, the League has the potential of using the chaos and violence in Kalopia to gain significant popular support. Calling for mass democracy and the abolition of private property, the Leage seeks its own way out of the financial crisis and may even spearhead the Majatran socialist revolution that has been the dream of Vanguard Communists since the days of Jalal al-e-Ahmad.