Why do gold reserves exist?

[Biggus Dickus]

There is no inflation in the game and there is only one world currency so stacking gold is pointless, even in preparation for a war since you can just go into debt for that.

[Alex]

Are you for real??? Gold is useless?? Have you heard of a game mechanic called interest?

[Biggus Dickus]

Yes because the interest rate is low and it gets reinvested by your pops anyways.

[Alex]

Since the game mechanics favor the defenders disproportionally, even a mid-game war can turn into a long and drawn-out WW1-esque meat grinder. Therefore, you should commit to a war with as many reserves as possible, and this certainly includes gold as well. Besides, more advanced army equipment options increase war costs even more, so you need all the gold reserves you can possibly get.

[Specknacken]

Gold reserves are pointless? Well then just max out your debt and see how well that works out for you, or if this has any impact at all on your game.

[Biggus Dickus]

I have nearly maxed out my debt before. Then when you are close to defaulting cut back a bit and the investment pool will grow and so will your credit limit. Eventually your interest rate goes to one percent and you will be making more money income than you can spend.

[Central]

Origineel geplaatst door Biggus Dickus:

I have nearly maxed out my debt before. Then when you are close to defaulting cut back a bit and the investment pool will grow and so will your credit limit. Eventually your interest rate goes to one percent and you will be making more money income than you can spend.

its all fine until it isnt. by balancing on the verge of bankruptcy you are 1 disaster away from everything falling apart.

also, you are paying interests on debts, basically throwing away money,

[Biggus Dickus]

Yes but that debt interest goes to your pops who then reinvest it or use it to buy goods and services which you can also put consumption taxes on, it doesn't just disappear into nowhere. In the real world states buy gold to protect themselves from inflation and from market crashes, which this game doesn't have either of, which is insane because even EU4 has inflation and isn't focused on economics as much as Victoria 3 is.

[Biggus Dickus]

Speaking of, that is something I would like to see in a future update, a stock market (or multiple stock markets) that your state and even Pops can invest in, maybe something to do with the Companies? They also need to add in inflation as already said and different national currencies. I've seen much worse games try to add these features and they worked well enough even if they weren't implemented greatly, not sure why the hell Paradox can't do it. Maybe they were saving these things for DLCs like they always do?

[Alex]

Origineel geplaatst door Biggus Dickus:

Speaking of, that is something I would like to see in a future update, a stock market (or multiple stock markets) that your state and even Pops can invest in, maybe something to do with the Companies? They also need to add in inflation as already said and different national currencies. I've seen much worse games try to add these features and they worked well enough even if they weren't implemented greatly, not sure why the hell Paradox can't do it. Maybe they were saving these things for DLCs like they always do?

I do not find that idea risible. They need to finish the base game first, then we'll talk about DLCs.

[Biggus Dickus]

Well they are already working on their first major DLC and it is adding a bond market it sounds like with the foreign national investments feature, so that's about half way to a full stock and bond market. They are also ironing our bugs in the meantime, its just taking a while unfortunately. As it is even with free trade and laissez faire activated, the markets feel too national and their is no real potential for a global market and global GDP growth without these features, even though the technologies themselves are in the game they don't actually add themselves into the game, they just give "+1 additional company" or "-2% loan rate" and such.

[TheCollector]

Interest rates depend on your tech and your ranking. As a small or unrecognized power, going into debt will likely destroy your economy.

See https://vic3.paradoxwikis.com/Treasury

[Biggus Dickus]

True, but starting a Great Power, or when reached, it is no problem.

[Alex]

Origineel geplaatst door Biggus Dickus:

True, but starting a Great Power, or when reached, it is no problem.

Oh, no, this guy invented the Federal Reserve. Everybody, run for your life wallets!

Seriously, though, you simply have no idea how this game works. The situation you've described (great power, high technology) is an ideal one. A highly ideal one, but you, without realizing this, project that perfect situation onto the entire game mechanic. No, for any other country, or simply on the way to the top, you'd have to avoid going into debt, as it is seriosly crippling. Credit is a failsafe, something you shouldn't rely on too often.

[ad5ian]

Origineel geplaatst door Alex:

Origineel geplaatst door Biggus Dickus:

True, but starting a Great Power, or when reached, it is no problem.

Oh, no, this guy invented the Federal Reserve. Everybody, run for your life wallets!

Seriously, though, you simply have no idea how this game works. The situation you've described (great power, high technology) is an ideal one. A highly ideal one, but you, without realizing this, project that perfect situation onto the entire game mechanic. No, for any other country, or simply on the way to the top, you'd have to avoid going into debt, as it is seriosly crippling. Credit is a failsafe, something you shouldn't rely on too often.

I never go into debt, because the interest will only increase it faster. Rather use that money payed on interest for an expanded fleet or army. But gold reserve limit is something I don't like. In V2 I could save as much money as I liked with no penalty.

[Alex]

Origineel geplaatst door ad5ian:

I never go into debt, because the interest will only increase it faster. Rather use that money payed on interest for an expanded fleet or army. But gold reserve limit is something I don't like. In V2 I could save as much money as I liked with no penalty.

Well, sometimes you simply can't avoid going into debt, and that's where all those interest-reducing technologies come in handy. But this should be regarded as an emergency mechanism only.