Are you an economist? Do you have an advanced degree to be able to claim this? I need to see at least 17 published references, before I can even begin to argue with you.
I am tired of people saying this is THE cause and this is THE effect.
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If you do not have binding for gear, can you IMAGINE the flooding the AH will become?
Lmao can you imagine someone claiming that the reason world's economy is bad is because purchased items are not bound to people? I am sorry sir you can't trade in this car for a new one... you will just have to toss it.
you don't need a degree to understand that, unless particular goods and services are no longer offered- those goods and services lose value when they can be reinjected back into the economy without any net loss
it's pretty simple.
think again about an economy where you can buy a brand new car for 15,000 dollars only to turn around and resell it for 15,000 dollars 6 years and 100,000 miles later. it can work for intangibles like stocks and bonds because they're not goods/services- they're investments.
treating goods and services like investments, though, leads to the economy being saturated in those goods and services when they're reintroduced to the economy from the buyers. (consider also currency inflation- the more currency you mint, the more value it loses. and not only is it similar in concept, in effect depreciation of currency through inflation only serves to hasten the process of depreciation of goods and services that endlessly multiply) then if the companies manufacturing those goods or offer those services continue to do so, they have to reduce the price. and then goods reintroduced into the economy later can't be introduced at the price point they were once at. the goods and services depreciate in value. the cycle continues until we have 30k scorpion harnesses.
what stops the bleeding? you have to find a way to remove those goods/services from the economy.
why don't you educate the rest of us on what *you* think the cause and effect is? and how do you propose we solve it? i'm dying to hear this.
so far nobody in your position has an answer. it's always just "well i don't like that system and you can't convince me to accept it!"
idiotic. you buy a car for $15,000 then the moment you drive it off the lot it loses about half its value. even more value is lost the more you drive it. by the time you actually need to trade it in several years down the line, you're lucky to get a few thousand in trade. have you never looked in a kelley blue book?
so how in the hell is that even remotely equivalent to a situation like what we see in XI/XIV where the car can be purchased then resold without any effective depreciation in value?
and what of the millions of other products you buy that immediately lose *all* or *nearly all* retail value once you open the package or use them? how much does gamestop give you for your used games? how much for your used controllers?
how much is your used PC worth on ebay?
i'm sorry sir, you can't present this argument to the court. you will have to toss it.
not quite true
You cant relate a real world economy completely to an MMO economy where money will forever and ever be added to the world.... thats all I gotta say.
and yet, reality disagrees
etc
so why do you think the USD, which was previously one of the strongest currencies, continues to depreciate in relation to other world currencies?
answer: because the government borrows money from the federal reserve, and the federal reserve keeps printing new money to cover the 'loan'. which brings us to china. why are we borrowing money from china? because if we continue borrowing money from a federal reserve which keeps printing money, our currency will be so thoroughly devalued it eventually won't be worth anything at all.
and pro tip: some other countries are currently suffering from this problem.
see also: