Central Banks

[barretta]

Are your debts wiped if that country gets annexed?

Which leads to other questions such as acquiring a country's central bank assets as a war aim or even having them forgive loans...


Just a thought.. Cheers!

 

[safferli]

Are your debts wiped if that country gets annexed?

Which leads to other questions such as acquiring a country's central bank assets as a war aim or even having them forgive loans...


Just a thought.. Cheers!

No, debts are inherited.

 

[AlknicTeos]

im sure it has been asked quiten often, but

What is with the money from the national which isnt been conferred. May tomorrow in the release version its other to the demo. but when lets say 100-200k are stored in the national bank , but only 5k are lend. What happens with the 95-195 or whatever of money ? it doesnt work - no interest ? So - havent i tax my pops too much ? Or is this money not "really" lost ?

 

[safferli]

im sure it has been asked quiten often, but

What is with the money from the national which isnt been conferred. May tomorrow in the release version its other to the demo. but when lets say 100-200k are stored in the national bank , but only 5k are lend. What happens with the 95-195 or whatever of money ? it doesnt work - no interest ? So - havent i tax my pops too much ? Or is this money not "really" lost ?

Money in the bank not lent to anyone does not generate interest. It is not lost, as POPs can pull their money back out of the bank should they need to.

 

[walrus]

I have a loan-related question, so I'll ask it here rather than clutter up the forum more.....

If you take out a big loan, then use the loan to finance a massive navy, then default on your loan, can you use your shiny new navy to beat off other countries attempts at making you pay it back, and essentially write off the debt?

 

[AlknicTeos]

hm, may the savings should be invested in stocks . And when there is a stock exchange crash - then blame the capitalists ...

On the one side, its may morally better - when money doesnt "work". But somehow its curious to see money not working... May silver standard/gold standard / fiat-money may should somehow interact with increasing economic investments...

 

[Friedericus Rex]

Does the interest I pay my own national bank actually flow back into the pockets of my POPs?

 

[AlknicTeos]

Does the interest I pay my own national bank actually flow back into the pockets of my POPs?

i strongly hope so. ... but this leads to dangerous questions , in a game without inflation - without a real currency. When there arent any events when hitting some debt lvls , u will have only to be sure that u actually export more than import. I hope there are some restrictions in the amout of debts, which can made - otherwise i would be a nice idea to get your peoples money work.

 

[merlin2199]

Does the interest I pay my own national bank actually flow back into the pockets of my POPs?

Yes they earn from the interest payments. You registered your game, download the manual. Has a section on nation banks and debt. They also earn from foreign loans taken from your national bank. In a way, it is good to have at least some debt, preferably 100% controlled by your national back. This is a second source of revenue for your POPs, which in turns returns to you as tax revenue. Supply and demand but in the financial markets as bonds.

The game has so many nice intricate details that offer such a varied way of doing things

 

[merlin2199]

i strongly hope so. ... but this leads to dangerous questions , in a game without inflation - without a real currency. When there arent any events when hitting some debt lvls , u will have only to be sure that u actually export more than import. I hope there are some restrictions in the amout of debts, which can made - otherwise i would be a nice idea to get your peoples money work.

There's a limit on your national bank. This is set by how much money your POPs have saved up. You will face the need to repay these loans sooner than later to reasonable levels. IF you don't and your POPs are running low on cash, when they go to withdraw money form the bank, they will be taking it from you, ie the government. If broke, this will lead to more borrowing. If no money is available for borrowing, bankruptcy. Yes, money supply can dry up.

 

[AlknicTeos]

Yes they earn from the interest payments. You registered your game, download the manual. Has a section on nation banks and debt. They also earn from foreign loans taken from your national bank. In a way, it is good to have at least some debt, preferably 100% controlled by your national back. This is a second source of revenue for your POPs, which in turns returns to you as tax revenue. Supply and demand but in the financial markets as bonds.

The game has so many nice intricate details that offer such a varied way of doing things

hopefully my boxed version arrives tomorrow...

but are there limits ? cause otherwise its a method to produce money. Just be sure that u export more than import (overall - including interests paid to other countries)

 

[merlin2199]

Yes, read my post after the one you replied to.

There's also the danger of default. If you can't manage to pay off the loan you took from say Great Britain, they then have a casus belli with which to go to war with you. Domestically, ramifications are economic in nature, if severe enough, revolts and even revolutions may result. No money to go around makes people very angry

 

[AlknicTeos]

There's a limit on your national bank. This is set by how much money your POPs have saved up. You will face the need to repay these loans sooner than later to reasonable levels. IF you don't and your POPs are running low on cash, when they go to withdraw money form the bank, they will be taking it from you, ie the government. If broke, this will lead to more borrowing. If no money is available for borrowing, bankruptcy. Yes, money supply can dry up.

oh u postet in the meanwhile ,
hm, this means i should stay something about 5% below max national bank value, but i still produce money, without inflation ?

 

[AlknicTeos]

Yes, read my post after the one you replied to.

There's also the danger of default. If you can't manage to pay off the loan you took from say Great Britain, they then have a casus belli with which to go to war with you. Domestically, ramifications are economic in nature, if severe enough, revolts and even revolutions may result. No money to go around makes people very angry

(
meanwhile poster , but without inflation, lets say i can stay at 95% debts - without problems ? ( and still produce money - interest )

 

[merlin2199]

You really don't want to have a high debt load.

1. It drains your government's income with interest payments. Note that you will be borrowing from other countries if your bank runs out of money. This can easily happen during war.

2. Capitalists will borrow form the bank to start projects as well, so they should have a large chunk to borrow from to get the economy rolling along. During the demo I kept my total debt at 10% of the bank's total assets. Seemed to work very well. 15 or so factories by 1845 with a dozen being planned.

In the end, it's a balancing act. Though inflation isn't present, there are still ramifications for your actions. Being that heavily indebted can cause really bad problems if there's an economic down turn. You have no control over the rest of the world market. So if things get tight for a prolonged period of time you might be facing a lot of trouble at home.

 

[AlknicTeos]

i will try the demo a last time (hopefully the game arrives tomorrow) ant try high lvls of debt, and if a foreign country wants their money back, they will have to fetch it per force

 

[Darkside360]

Repayment of Debt

Is there a certain time frame we get to pay back our debt? In the demo I didn't get any warnings that I had to pay back my loan. i went on about 20 years before I had the cash to pay back the 70k I owed.

 

[Brownbeard]

As long as you're paying interest you're more interesting indebted than closing your debt. The problem probably starts when you cannot meet your existing obligations.

 

[jasonxfri13th]

In Vicky I you went bankrupt (lost TONS of prestige, I think like 500 and other bad things) if it became impossible for you to make more money than the cost of your interest.

 

[unmerged(76022)]

I already figured out it's exploitable. you can tie up the global money suppliy and then DOW whomever you like.