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unmerged(33865)

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Loic ignores the suggestion of lower rates.
If we are going to have some bad news, I would rather it be followed by some good news rather than another round of bad. Will 11% be enough? I would rather have a short sharp jolt than prolonged stagflation. With rates at 3% over inflation, and is merely at the tighter end of normalcy. Certainly it will force some businesses that are just barely scraping by into bankruptcy, and coupled with the introduction of VAT might send us into a recession, but it is not certain to do so, depending on the trend of the world economy. In that environment, inflation would start to come down, but slowly.

Now 13% would certainly trigger a recession. But it would also tempt businesses to borrow dollars and convert them to Ducats, leaving their currency risk uncovered. For one business, it is a risk that the owners are entitled to take, but if too many do it, it could jeopardize the stability of the fixed ratio between the ducat and dollar, swelling our exchanges reserves at first, and possibly expanding the money supply if you don't act to sterlize that influx, and then, when the currency flows reverse, draining our reserves and perhaps forcing a devaluation.

I guess the real test will be how the markets react to the move. If they are convinced of your anti-inflation credentials, then long term interest rates could actually decline slight as the 10 year bond prices rally. I don't think the stock market will take it quite as well in any case.
 

unmerged(33865)

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Loic turns to his boss.
"A country with high and rising inflation that cuts rates will get a quick boost in employment, so governments are often tempted by such measures right before an important election. I didn't think the Senate elections were that important. Only two or three seats will be in play, and even if your party won all of them, you wouldn't be able to get much legislation to them for approval. If such stimulus is sustained, it is practically guaranteed to provoke a currency crisis, which would either require currency controls, which would tend to isolate us and promote smuggling, which would be hard to control with our relatively open borders, or a devaluation. Do you want to be remembered as the President that debased the ducat? It is better to save this option for another time. It is also why we and many other nations have independent central banks."
 

Voshkod

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Sir Adam slowly rises from the chair, and starts to shuffle over to the window. "Thirteen percent, M. Vice President? De l'audace, encore de l'audace, toujours de l'audace. Well, central bankers are a snivling and cowardly lot, you know. It was pulling teeth with a screwdriver to get the board to go along with a three and a half increase. Five and a half? I'd have three resignations and four heart attacks. So maybe it's not a bad idea." He pulled the curtain aside, waved with some energy to someone outside.

"Well, it looks like Tiff has brought the car around, gentlemen, so I'll be brief. Mr. President, it will take us a week or two to finalize the report justifying the rate increase. This report will not mention the VAT. So, you have some time to get the VAT through before we announce. Fair enough, I'd say." With that, he turned and started shaking hands.

"I've taken up more than enough of your time, gentlemen, I'm sure we all agree. Perhaps on the next visit we can talk about decoupling and floating the ducat, and our tariff situation. You should both come by and see the central gold reserve sometime. Not as big as it should be, but still very, very . . . shiny. Mustn't keep Tiffanee waiting!"

Sir Adam Greenbridge turned to leave.

- Voshkod as demi-mod
 

Estonianzulu

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Barak Mofaz arrives at the Diamond Office, dressed in his finest business suit, and waits outside the office after passing through security.
 

Josephus I

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Barak is shown into Josephus' office.

Per Mofaz. Shalom. Please sit down.

My vice-president informs me that you've shown interest in EndTech. I see that you run BMI...which among other things produces small weapons and the like. This is good.

As you know, Per Mofaz, you will require Eutopian citizenship. I understand you're Israeli? I've been advised that if necessary I may be able to get GA approval on fast tracking your citizenship procedure. Such is the nature of this nation's beaurocracy. Trouble is, the way our GA works, this could take even longer than normal citizenship procedures.

I advise you to go through the normal channels, meanwhile I'll try to get the GA to fast track it. We'll see which one happens first. Are you a betting man, Per Mofaz?

Of course, the GA will need to know why you? So tell me, Per Mofaz, why do you think you'd make a good CEO for EndTech?


Josephus
 

Josephus I

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Barak is shown into Josephus' office.

Per Mofaz. Shalom. Please sit down.

My vice-president informs me that you've shown interest in EndTech. I see that you run BMI...which among other things produces small weapons and the like. This is good.

As you know, Per Mofaz, you will require Eutopian citizenship. I understand you're Israeli? I've been advised that if necessary I may be able to get GA approval on fast tracking your citizenship procedure. Such is the nature of this nation's beaurocracy. Trouble is, the way our GA works, this could take even longer than normal citizenship procedures.

I advise you to go through the normal channels, meanwhile I'll try to get the GA to fast track it. We'll see which one happens first. Are you a betting man, Per Mofaz?

Of course, the GA will need to know why you? So tell me, Per Mofaz, why do you think you'd make a good CEO for EndTech?


Josephus
 

Estonianzulu

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Thank you Mr. President. Why would I be a good CEO of ENDTech? Well, I have a good deal of experience in business in general, so as to running the organization I should have no problems. Or so we can hope.

I also have a good deal of experience in the arms industry. I worked in Israel in an arms factory, first in manual labour, shortly thereafter in management. As to betting, Ive been in the Casino at the airport, beyond that, Im afraid I haven't had too much experience. I'm not holding my breath on the speed that my request for citizenship will be processed, I understand bueracracy well enough. I do hope I wont create any controversy though, I do not know how the legislature will view your request. I should hope they see it as an innocent idea to help ENDTech and not as something more sinister, but politics is politics.
 

Josephus I

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Josephus stifles a laugh Sinister. Ha, the GA thinks everything I do has a sinister motive.

But that is neither here nor there.

Ok. I have one last question, I think, and then we'll move on.

If you do get the position as CEO of EndTech...what would you like to see EndTech doing say within five years?


Josephus
 

Estonianzulu

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In five years Id like to see ENDTech competing on an international stage. There is no reason that I can see that Eutopia, with its size and resources, couldnt become a contender on the international market. Both for designs and actual machinery. There is always a legitimate market for arms, and I want to see Eutopia in it.

I want to get serious designs on new technology, beyond just the Gorgon. These can give us a chip to get ourselves out there, which may help get rid of the embargoes. If Europe and the US are interested in what we have to sell, they will be more receptive to our diplomatic efforts in dropping this trade block.
 

Josephus I

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Very good.

Now, I'll just have to run a quick background check on you...you obviously understand why. But I'm definatley interested, and Loic's a good reference for you. So, you'll hear from me shortly.

One other thing, I just forgot, it would be considered a conflict of interest for you to have majority ownership of BMI. Will this be a problem?

Josephus
 

Estonianzulu

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It should not be a problem Mr. President. BMI is divided into specific divisions. If I am named ENDTech CEO, I will sell off the arms division, which has been my least successfull due to certain legal blocks, to another company.

Also, though I was asked by ENDTech to design and produce, I was never given a monetary deal nor were any contracts signed, so I as of yet have no binding agreement between my corporation and ENDTech.
 

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Good. I am sure there won't be any other problems. We'll stay in touch. Thanks for dropping by.


Josephus
 

unmerged(33865)

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The Vice President pays a call on the President in his offices.
"Per President, a senior labour leader, one Per Rojas, has been shot and killed in Eutopia City. He is, er...was reasonably senior in the ECL hierarchy. He had called the FLEA confidential tipline, and was on his way to a meeting with a FLEA operative when he was shot. The agent that was meeting him got only a glimpse of the assailants, and was able to hear only one last word from Rojas, 'Cubans'.

I was wondering if you still have some useful contacts from some of your younger days that were spent in that country. If so, could you, perhaps, find out what is up, or even better, get it stopped?

FLEA is pursuing numerous directions in its investigation, but this still at an early stage, so all we have at the moment are theories, none with any viable foundation."
 

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Thanks for the heads up on this Loic. I was aware of the man's death but not of FLEA's investigation. I'll see what my own sources can dig up.


Josephus
 

Josephus I

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Immeditaely after Loic leaves; Josephus places a call from his secure phone line to an old friend. So old, in fact, he had to dig out his phone number from a dusty old black book. The call goes out to a Steve Williamson, brother of a famous senator and a retired coal miner-- a former member of MEOR.

Steve, how you doing? It's been a while. I trust The Hammer will win his election surely. Who? It's me, Josephus...President Josephus. Right.

Listen Steve, I remember some of the work you did for ...uh...some friends of mine many years back. I know we both swore off that after what happened to Vilms. Listen, though, wonder if you can do me a favour. I can't do it for obvious reasons. Remember Jorge, our Cuban friend in Madrid? Yes, him. Can you give him a call and find out if there's anything involving the Cubans that I should know about....I mean anything affecting us here in Eutopia. Just a tip I got that something might be up. Gimme a call on my secure line if you find anything.

Appreciate it old friend.

Josephus

[OOC: A call to demi mods perhaps to fill in ]
 

jacob-Lundgren

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*a fax arrives informing josephus that ml wants to have a small meeting*
 

jacob-Lundgren

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*taking advantage of the invation ml comes to meet with the president* (pm)

i understand you are wanting my support at the cabinet level?
 

Josephus I

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Josephus invites Michael to sit down.

Yes Per Lundgren. You know I am. You've been on the outside looking in for a long time. Yet I know there is some potential in you. Your father, God bless him, was an intelligent man and I'm sure there is much of him in you.

It's time for a Cabinet Shuffle. Other than my V-P Loic, the Cabinet has been rather quiet and ineffective. I've got Rashaad to take over MESA and have a few other considerations for other posts.

But tell me, is there any specific post that interests you?

Josephus
 

jacob-Lundgren

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Well you would know what needs help the most where. I dont have any behind the scenes details of the government right now and am a little open to different spots.
 

The_Hawk

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The secure line rings (at some point when the Diamond Office is empty of visitors)...

"¡Hola, Jose... perdon... Señor Presidente! Jorge aqui. I thought I would call you back, keep Steve out, ¿comprende?.

"Aver, Jose... something is up. Something big -- something big enough that my contacts don't know about it. Something gigante. There are powerful hombres involved in Cubano-Eutopian relations, and they aren't all playing for the same team. They definitely aren't all playing on your team.

"I had better go. Dispense usted -- I wish I could tell you more. Watch yourself. Hasta luego."

-T_Hawk as NPC
 
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