Dolgorukov

Morgan Finances

99 posts in this topic

never take a credit, never take a credit, never take a credit, never take a credit, never take a credit, never take a credit, never take a credit,....

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Man-I better start getting solvent when I found my 2nd base. I am about 50% of the total debt for our corp...

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A system where Company Executives bid for Loans is proposed here

 

Some issues with the current financial system that need to be addressed are stated here

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attachment.php?attachmentid=4860&stc=1&d=1270260198

 

Please note that the lending interest rate has been reduced to 1%, and has been held at that rate the entire game.

 

The faction treasury is currently 89 EC. However the 89 EC are not in the control of the Morgan Corporation as before in the older system. You can see that Morgan Industries Ltd. owns 60.83 EC.

 

This means that if M. Transport Ltd. wanted to rush a base facility for 60 EC, it would not be able to do so on its own because it only has 26.29 EC. Sure it could borrow 9.37 EC from the Corporation, but that would still leave it short of the 60 EC it needs.

 

Before the XO approves this rush order, M. Transport will have to ask other companies to help fund its rush-order. Practically this happens when other companies agree to pay for this rush-order from their own energy reserves. The terms of their loans to Morgan Transport will be worked out by the companies on their own. The XO must simply confirm that the correct funding is available before rushing the order.

 

Typically loans from one company to another will be made in the form of 10 year bonds. The entity that issues the bond, agrees to pay the Maturity Value of the bond to the Bond-Holder in the year that the bond matures. It is possible for the bond holder to change if these bonds are traded or sold to another party.

 

attachment.php?attachmentid=4861&stc=1&d=1270261139

 

The above Bonds were issued by Trevino Enterprises in MY2117 because the Corporation did not have sufficient energy reserves to finance the entire rush order, and so Trevino Enterprises borrowed a total of 14 EC from other companies.

MY2123st_NEW.jpg

MY2123st_bonds.JPG

Edited by Dolgorukov
mistake in bond issue date

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MY2123st_NEW_MInd_Perf.jpg Morgan Industries Ltd.

MY2123st_NEW_MInt_Perf.jpg Morgan Interstellar Ltd.

MY2123st_NEW_MTran_Perf.jpg Morgan Transport Ltd.

MY2123st_NEW_Trevi_Perf.jpg Trevino Enterprises

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Maybe for simplicity, there could be one central factional bank borrowing EC? The idea of companies stockpiling their own energy reserves is good, but on the other hand, we are one faction and sometimes factional interests should be more important. Then, it may seem like not a free market, but I would leave such decisions to some central "body"

 

The decision to rush something even with lower energy reserves would be thus simplified. Companies would automatically earn mony when being on positive balance.

 

Later we will have other situations, like Secret Projects and we will have to somehow treat these too.

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well the central bank is not gone, it simply is not influential at this point because it has loaned out all of its energy reserves. Now the governors are going to play a stronger role in deciding how energy is spent. In a sense voting power is tied to Energy reserves. The more productive you are, the stronger your reserves, the more influence you have over faction spending.

 

But if you have engage in expensive spending recently, then you will have temporarily diminished your influence.

 

The system is flexible, you can return the power to the central bank by hiking up the interest rates, then the governors will be forced to return the money they have borrowed and control over the funds will once again be in the hands of a central body.

 

I think if you give it a try, you will see that it really is not any more complicated than the previous system. The XO and the governors simply need to be aware of how strong the individual reserves are before the rush orders are executed. In many cases, spending within the means of the governors will even be simplified as no discussion will need to take place if a governor has the necessary funds in his own reserve.

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Enjoy.

 

Yey! Thanks BU, I was meaning to ask you how to get that white background out of the way. I think I came close to it after removing the background with the magic eraser tool in photoshop, but for some reason it did not translate into transparency after I saved it.

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I'm concerned, that we introduce too much micromanagement to this. An occasional loan would work, but if each turn we will have to discuss several loans we all will get tired quickly. Number of decisions will quickly go up. number of formers will soon increase, number of bases, etc.

 

I think something that would not need much of 2-way communication would work better. Loans between companies could be possible, but when they work as the core of the system, it would become a bit of a hassle imho.

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Yey! Thanks BU, I was meaning to ask you how to get that white background out of the way. I think I came close to it after removing the background with the magic eraser tool in photoshop, but for some reason it did not translate into transparency after I saved it.
Always a pleasure, never a chore. :D

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I think something that would not need much of 2-way communication would work better. Loans between companies could be possible, but when they work as the core of the system, it would become a bit of a hassle imho.

 

Yeah that's a really good point. Now that I think about it, we should not demand more awareness of faction accounting from the XO (Turn Player). But I am interested in having easily identifiable circumstances that block the XOs ability to spend EC in a given base.

 

What is good about the new system is that negative energy reserves can be used to act as flags that prevent the XO from rushing orders. The XO would not care about how much energy is in the reserves of any given company, and would have the go-ahead as long as the amount is a positive value (greater than zero). Even if the execution of a rush order results in a negative balance thereafter, the XO will remain oblivious to the details of the aftermath and simply be blocked from rushing production by that company on subsequent turns for as long as that company has a negative balance.

 

For this to work, all that is required is for the XO to have a financial summary report before he executes the rush orders. This financial summary report is quickly generated after the start-of-turn save by entering base incomes and labs outputs into the spreadsheet, (basically what is being done right now) Since rush orders execution will be left close to the end of a Turn, this summary should be available by then. To keep things simple, the XO does not have to keep track of any exchanges of Energy that may have been agreed on during the new turn by the companies. All such agreements will take form of actual transactions that will take place at the very end of a turn (or even between turns), too late to affect XO's actions.

 

In short, the XO only cares about that initial financial report published after the start of the turn, and even there all he does is make sure that there are no negative values in the reserves of individual companies before rushing their orders with faction reserves.

 

The flow of the game is not disrupted, because the XO remains mostly independent from any of the loans exchanges that take place between players. However, there is an increased need in interaction among players that is required to clear up negative reserve balances. This is where some form of 2-way communication is necessary. But because we are using bonds as debt vehicles, we can easily set up a securities-exchange environment where these bonds are bought and sold, through a competitive bid-oriented process. This could lead to an extended game environment where some forum members take on the roles of traders who work for one of the big multi-base companies.

Edited by Dolgorukov
traders don't work for their own company, but rather for one of the major companies

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Let me understand the system.

 

Trevino Enterprises needs to have 16 EC (2x8) in 2127 to pay off its 2 bonds? And this is still in addition to 80 EC that is due to Morgan Industries Corporation.

 

So total debt is 80+16 = 96?

 

So what with that 80 EC that some day should be paid to the Corporation?

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yes the total debt is 96, the 80 EC from the corporation is charging you interest at 1% every year. This interest does not accumulate but is directly paid out of your reserves on hand.

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Is there any date to pay off that 80 EC? E.g. I may have some time in the future 10 or 20 EC, and wish to lessen that 0.8 payment. How does that work?

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There is no due date on the Debt from the Corporation, it is happily growing wealthier from your payments on interest. As far as it is concerned its money is being put to work.

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You can order a repayment of your debt to the corporation at any time when you have the funds, in full or in part

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of course you have to keep in mind that running a negative (red) balance in your private energy reserves isn't all that bad, no one charges you interest on it. The only downside is that you won't be able to rush production until you're back in the green. So it may leave you flat footed at a critical moment.

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Does energy flow due to research points works the same as in old system?

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yes, Companies are automatically either exporting or importing Lab points at a price of 1EC per Lab Point. Those that are Net Exporters end up making money this way by selling to companies that are net Importers.

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