Difference between revisions of "Guffingfordian Economy"

Revision as of 10:23, 18 February 2006

Economy

When you say Guffingford's economy, you say Tsarist Russia, except for the slavery and serfs working the land. Extensive railroad networks have been laid with capital from foreign corporations because the Guffingfordian economy - 82% mining industry, metal working, argiculture and other raw material processing and plastic related industries - is incapable of raising funds for massive projects. Banks are not state owned, but there are too few to get the economy going and to exploit all natural resources. Plastic money in the shape ATM cards, credit and or debit cards or bonus card systems are non-existent. The population of Guffingford still use coins as their first means of payment. A more dark idea lies behind this: large sums of money are a lot easier to track by the STASI, the Guffingfordian secret service. Hyper inflation was a common phenomenon up until the 1950's, and in 1951 Guffingford's first stable government decided to further the stability, and create a reliable, solid currency. The Dukaat Gulden was born and the currency and therefore the whole economy was put on a gold standard. This proved to be a very wise move, since Guffingford fell back on gold many times in the future to ease the load on its economic shoulders. During the Great Depression of 1931 in Guffingford, the biggest platinum ore deposits of the known world were found all around Änglenbach which caused a drop in coin value which decreased platinum's value for over 70% overnight. Today the prices for consumer gold, platinum, rhodium, palladium, silver and electrum are fixed within set boundaries.

Overview

On itself the economy seems imploded to outsiders, but because of hundreds of foreign syndicates the economy has a small technology sector (IT, graphic design, telecommunication) but the raw materials handling is by far the biggest. Technology itself is rare for the common Guffingfordian where personal computers are only affordable by the very wealthy and televisions can only be bought by joint effort. Internet doesn't exist for the normal citizen, and doesn't want it actually. Both in purchasing behavior the citizens of Guffingford are extremely conservative. Many modern hypes such as cellphones don't seem to catch on, and are somehow viewed with unhealthy suspicion. Only the military and the highest tiers of the governmental apparatus has the funds and means to have the most advanced tech available.

The Ducat Guilder

The ducat guilder (ÐG) and the State Gold Value are each other's equals. The value of the ÐG entirely depends on the State Gold Value, and the government tries hard to keep the value of gold stable at all times. The ÐG is used for large government transactions in gold, which are paid in certificates on demand to the receiver. Citizens can also purchase these certificates, but are unable to pay with them, since it is not legal for store owners to accept these as legal tender. All banks however are obliged to pay the amount on demand, which is paid in either gold or silver, depending on the certificate. Most Guffingfordians are not into this kind of investment, mostly because of a lack of faith in economies.

• One single Ducat Guilder weighs 0.330 grams of .983 fine gold. Since citizens have to pay in guldens to procure these, many citizens do not own them.

Coinage

Guffingfordian gold coins, since they were first minted as bullion in 1963 continue to enjoy a world wide audience of collectors and investors, because of the high quality and stunning design. Each year a contest is organised and the winning artist or designer is permitted to design the reverse of each coin, which makes it even more interesting to collect. Having the high purity in mind, this marvellous feat of fine engineering and design also finds a captive audience in investment circles. Furthermore, these items are sold under the worldwide gold value due to the fixed gold prices within Guffingford. These coins are resold in other parts of the world, sometimes being 150% more expensive!

From 1901 until 1963 Guffingford issued gold coins - without being on some kind of gold standard. These were issued mainly because people did not entirely trust the economies of all local cities, who each issued their own (paper) money in the void between the colonies. After independence, Guffingford made it clear to all liberated citizens it will tolerate only one currency system, decimal and supposed to make sense. From that moment on, the policy to destroy Knootian colonial money was adapted. In 1963 an official gold standard was introduced, and since then monetary stability endures.

At present, bullion coins were also available to the public, namely the one troy ounce Dukaat. This startling coin used to be legal tender until all gold and silver was forcefully taken out of circulation to fill up the national gold reserves a little more, to ensure monetary stability even further. Unfortunately, most of these were molten into bars or ingots, but some survived and were released onto the market again, mainly for the rich collector. The primary use of these bullion coins, when they were legal to pay with, was to settle buisiness deals more easy with other national banking institutes, mainly in Imperial Armies and financing (government) projects. The 1 ounce ÐG had no real face value and the actual gold value in American dollars and/or Euros. The coin was knick-named Tien Dukaat, because of its weight, not face value.

Gold and Silver Coinage

Companies

Guffingford has a long and rather prosperous history in mining and financing mining establishments, and the two dominant institutions in Guffingford belong in one of these (or both) categories.The three largest ore deposits in Guffingford are gold, silver and copper. Uranium is not a very common ore in Guffingford, and if found it is immediately confiscated by the Ministry of Defence. Diamond is also found in abundant amounts, especially in the south of the country, in the freestate Oos Seeland. The major companies exploiting the riches of the Guffingfordian soil are named below. Financing companies are also added. Zinc, tin and salpeter deposits are also found more increasingly. These are all mining companies.

Mining & Raw Materials Processing

• Henry Wilkinson & Sons Mining and Excavation Company Ltd.
• Abraham, Loque & Van Zand Mining Corporation
• Guffingfordian State Mining and Expedition
• Territorial Mining Enterprises
• Palladium & Uranium Mining Collective Inc.
• Apex Mining Corporation
• Geszler Mining, Aktiengesellschaft 1923
• West Pacific Gas, Oil & Electric Company Ltd (energy and oil)
• Global Hoogenbosch Oil & Gas (GHOG - oil and gas)

Financial Institutions

• First National Banking & Trust Company Ltd. (financing)
• First City Banking & Trust Company Ltd. (financing)
• Wellis & Rothschild Mutual (financing)
• The Hoogenbosch-Redmound Banking Corporation (financing)
• Goldbach & Daughters (insurance)
• Insurance Plaza (insurance)
• Henry Wilkinson Insurance Company Ltd. (insurance)
• Oldebarneveldt Accountancy (accountants)
• DeVerran Management Inc. (financial management)
• Clarendon & Hocken Mutual and Annuities (various financial services)

Transportation, Logistics & Manufractured Products

• The Hoogenbosch Light, Traction & Railway Company Ltd (transport and electricity)
• Phelps Inc. (lightening)
• Aldebaran Shipping Lines (cruise lines and shipping)
• The Guffingford-Macabee Line (cruise lines and shipping)
• Van Zuyden Expedition & Logistics (logistical transport and support)

Foodstuffs & Other various products

• Fletcher & Harvey Cosmetic (various cosmetic products; mainly female)
• Angstrom Food Company (consumables, disposables)
• Belgian and Dutch Beer Import Company (dedicated beer import)
• Ol' Booze Company Ltd. (alcoholic beverages)