Esim - The NLG as a standard trading currency
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The NLG as a standard trading currency (Old article)
Posted 12 years ago by
Auggustus    
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The NLG as a standard trading currency

L.S.

The following is a proposal to change the way we as the eNL use our economy. With this proposal I intend to change our economy model from a production economy model to a trader’s economy.
The Three Markets
Production Market
Right now we have a production economy. In other words you produce products and you sell them on the local market. A major problem with this system is that you pay high taxes, people import products from other countries and sell on our local market at a higher rate, and finally theres the black market.
This system has the major problems that our wealth leaves our country for the materials we cannot produce. Also if our country is occupied, we receive no income because nobody can produce and our people are forced to go to different countries. The producers are then forced to wither pay import taxes, go to the black market to sell goods or shut down their companies.

Black Market
The second type of market that there is, is the black market. The benefit is that you don’t pay taxes. The downside is that you never know if you can trust the person you are trading with. Most of the time you need to make a contract that costs time. You need to try to find a buyer, that costs time. You need to be glued to irc in hopes of finding a buyer, and that costs time. Then you have all the people on there trying to sell you products on IRC. In the end you spend 30 min on irc with the hope that you sold/bought your products with the hope that you haven’t been ripped off! All to save on the high taxes and make a decent pofit.

Traders Market

So what if there was a way to combine the best concepts of two worlds? Well then you are left with th traders market. The concept is so simple.
Basically all you need is a stable currency and a country that has its taxes on 1%. Meaning Import and VAT combined will give you an effective 2% tax rate.

Say if we made the NLG this currency. We trade our currency at a standard of 1 NLG= 0.03 Gold. And lower our taxes to a minimum.

Basically that would allow everyone to trade in our market. People from all countries can buy and sell supplies without the hassle of going on IRC or the risk of fraud. The only thing that is needed is one territory to be liberated. As long as there are buyers and sellers we offer local producers the ability to sell their products to the world, and the world to buy and sell products in our market at a low cost. Since the eNL has a very small production market, the tax income loss from local production would be offset by the gains through simple trade.

In the end it’s the simplest of both worlds with the major benefiter, the eNL. After all the 2% over time adds capital into out country!

Any thoughts or ideas on this?

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