The bogus �¢â�¬��economy�¢â�¬�

 

 

 

My reply: Actually, in the real world, cash is also created out of thin air by Central Banks. So, Runescape is no different in that respect.

 

 

 

 

 

 

NO, real world economies are based on the resources of a given country i.e. oil or other mineral wealth. Central banks are run by these rich countries. They lend money to those countries which are deficient either in resources or the ability (wealth) to exploit them. Then they take that money back (with interest), putting already poor nations into further economic hardship.Thats why countries like the USA with vast oil & mineral deposits, as well as vast tracts of agricultural land, Great Britain, France etc. are extremely rich; whilst huge, mainly desert countries in Africa (who suffer from frequent droughts and poorly developed infrastructure) are extremely poor.

 

 

 

But that's a whole new (off) topic. The point is, banks dont just give money out for free expecting nothing in return, Runescape DOES.

 

 

 

If you don't believe me, either go to a bank and ask to borrow a million pounds or dollars; or go and cut down a tree and wait for it to respawn (I'm talking about REAL LIFE here)

Natural resources are just one thing which contributes to a real life economy and infact with growing trade they have less and less impact. The other factors you need to consider are things like human capital, physical capital and technoligical knowledge. Most countries (if not all) have a central bank these days to help counter inflation. Also, the world bank (bank which loans money to poor countries) does this because after the second world war it was noticed that a lot of the conflict started due to economic pressure, if richer countries can remove some of this pressure then they can avoid war.

Also, Australia is a huge mostly desert country and it's one of the richest per capita in the world (ranked number 10 at the moment, we used to be alot higher, damn labour government).

What the orginal poster said is righter, central banks do have the ability to create cash out of thin air, though the use of buying and selling government bonds (atleast thats how they do it here).

Oh and if you don't beleive me about the natural resources thing, look at Japan. It has virtually no natural resources (some fish and oil, thats about it and they are net importers of oil) and its also one of the highest grossing GDP countries in the world, with the highest growth rates in the last 50 years of on average 4.76%*. Which all had to do with huge capital investment by the Japanese government.

*Source: Alan Heston, Robert Summers and Bettina Alen, Penn World Table Version 6.1