Thursday, August 3, 2017

Maybe They Can Join The Horde?

So, it turns out that recently there was an interesting even in economics. The socialist nation of Venezuela's currency has become so devalued due to  inflation (predicted to spike above 2,800 percent in 2018) is now worth less than gold in World of Warcraft. Seems their central planning isn't working out, as predictably when you have total economic control in the hands of a small group, variables get ignored.  

Venezuela is a nation that if you look at it's resources is playing the civilization game with economics on easy mode, but they keep getting tripped up by policy, as they have failed to account for changing market forces like a drop in the value of oil to sub $50/unit values on the international market. They are vastly rich in rare earth metals as well, but due to a stagnating tech base, the government having a rigid resource development plan, and regulatory idiocy are unable to take advantage of, and the entire country has dark soil so rich in nutrients you can nearly scatter seeds on the topsoil and have good crop yields, but they aren't a net exporter of food goods because of their own poor planning and misuse of land.

The net result? On black market sites you can exchange 12,197 Venezuelan Bolivar for $1 USD. You can go to third party auction sites and buy tokens for accounts, the overarching currency that connects all Blizzard games, that convert to between 6,000, to 6,500 gold through in game mechanisms in the World of Warcraft for approximately $1 USD, giving the electronic game marketplace money a value just about double that of Venezuelan currency. Good job, socialist central planning.

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