I'm sure you all agree... SURPRISING ANALYSIS - 4TH LINK

Here's a little play by play why this kind of inflation is bad:

- Player 1 decided he wants to buy a DragonFire Shield

- Player 1 realises he is a couple of million short

- Player 1 is normally a skiller who cuts wood for cash

- Player 1 now realises doing the 26k thing is actually better profit then cutting wood is, even with bloated prices

- Player 1 is now no longer bringing Yew Logs in the market but instead is tricking

- Player 2 also wants a DFS and needs money

- Player 2 is normally a Fletcher, buying yew logs and making his own Yew Longbows to alch

- Player 2 soon too realises doing the 26k thing is actually better profit then alching

- Player 2 no longer demands Yew Logs, prices dont inflate as much with the rest due to lower demand (and voila, more Players 1)

- Player 3 is a stern Visage hunter and has done this for a living

- Player 3 also has realised that tricking is a much better way to get millions of cash, and also a lot more reliable

- Player 3 also stops what he is doing and starts tricking, decreasing the supply of the DFS

- Player 4 as part of a merchant clan has decided that the DFS is a popular item

- Player 4 as part of a merchant clan has his clan buy out as many DFS as possible to increase the demand even further

- Players 1 and 2 have to do more tricking to get the required money

- Player 4 as part of a merchant clan sells the DFS at a super inflated price, but due to popularity of the DFS and decreased supply,

- Players 1 and 2 cannot see the difference and buy the DFS at this super inflated price, thinking it is the normal current price

- Player 5 realises his money is worth ever less and less, he too decides to buy an item on the rise

- Player 5 then moves to buy a DFS as well because that has a lot of upward momentum on it

You can see that there is no clear blame to place other then the rediculous PVP rewards as well as the Merchant clans adding just that little bit extra...

Its an endless cycle of more and more people focussing ever more on a single thing to make money, just to keep up...

To some extend this was happening when the GWD came out as that was the only source of any REAL money. But that at least required a bunch of moderate quests and some actual decent levels... People could live with that...

Now any noob can come into millions without any real skill or levels... Thats an added thing; since so many people can do something so easy to get money, the sheer amount of gp flowing into the system is enormous...

Excellent example, Ts_Stormrage.

Many of my friends are bugging me to re-open the manipulation channel I used to have back a few months ago. I don't want to do it, but they're the ones that don't want to do the 26k'ing for their Gp. (Like myself), however, they want more. :roll:

Nothing wrong with merch clans. :thumbsup:

Nothing wrong with merch clans. :thumbsup:

They create artficial supply and demand, make the items they choose to mess with near impossible for most people to buy, and their whole purpose is to get the leaders of the clan rich while SCREWING OVER EVERYONE AND ANYONE ELSE IN THE CLAN!

Not all merch clans are scams.

Nothing wrong with merch clans. :thumbsup:

 

They create artficial supply and demand, make the items they choose to mess with near impossible for most people to buy, and their whole purpose is to get the leaders of the clan rich while SCREWING OVER EVERYONE AND ANYONE ELSE IN THE CLAN!

26kers are causing far more harm.

Nothing wrong with merch clans. :thumbsup:

 

They create artficial supply and demand, make the items they choose to mess with near impossible for most people to buy, and their whole purpose is to get the leaders of the clan rich while SCREWING OVER EVERYONE AND ANYONE ELSE IN THE CLAN!

 

 

 

26kers are causing far more harm.

I agree entirely, if JaGeX has to spend time fixing one thing with the economy in rs right now, it should be pvp artifacts and the massive inflation that they have caused. However, you must also agree that there is *something* wrong with merching clans :roll: .

It's not that high..go do it yourself before you make assumptions...

 

 

 

1m an hour is a pretty good rate...sometimes you get lucky, sometimes you get unlucky. You havnt' done it it, you're just overplaying it.

lmao that right there is a HUGE problem with this. You really think that 1M per hour, and from THIN AIR is a good rate? :lol: I worked extremely hard for 85+ Slayer and yesterday I made 350k in 5 hours there. (6 Bunyips) The other day I made 5M in 6 hours. (6 Moss Titans) Those are normal rates. The items I got from Abyssals, guess where I get my money from that? I get it from other players. Your guarenteed 1M per hour comes from an NPC with infinity gold so that's like a guaranteed 10M per day if you do trick for 10 hours, except you'll get more. With thousands of players doing it, that's... *Insert uncomprehensible amount of overflow gold here* Or in other words, 10 Billion at the least comming into the game, per day, from thin air. And that's just assuming only 1000 players are doing it. Do you know how long it takes to rid 10 Billion from the game? YEARS! And there is WAY more than that which has came from this update.

High Alching is a HORRIBLE thing to compare this to. High Alching brings gold into the game, but at a REASONABLE rate. Plus the profit gain from it is EXTREMELY slow. It's also transactions between players.

For one, I don't see this as a game breaker, nor do I know any who do. If it gets "fixed", fine. If not, fine as well. Stormrage made

a good point about maples being at a steady price, yet is a fluctuation in price really all that bad? Is inflation of an item even to

the extreme of 5 million all that terrible? Think now, after every update we have a fluctuation in prices of one item in relation to

another. When PvP worlds came out certain weapons, such as DH and the AGS went up quite a bit, while items such as the seers

helm became even harder, near unto impossible to sell. The DFS and DFH crashed hard compared to there price in previous years.

I am not saying that people losing money is an ok thing, but rather that inflation, even deflation is a normal, even at times good

thing for the game. Example, people who kill Mithril Drags and get a DFH will have an item worth far more than it was worth 3

weeks ago. Think of this. I maintain that it is neither ill ethical nor illegal to 26k, and that although inflation is not the best thing

for everyone, it is a normal part of both the game and real life, and as such is not as big a deal as is being made out. People who

monster hunt will now be making far more money for there drops, which is really an important factor to consider. Also, people who

collect raw materials will be making more. This isn't bad for all people.

It's not really that big of a deal for high leveled players or those who actually have experience with this game. The biggest effect massive inflation will have is on low levels and new players (which are the two groups that actually keep this game alive and fresh). You may see a really expensive item and think "Oh that's okay, I can just fish sharks for a couple days to get the money for that", whereas a newbie player will see the price of it and go, "What! I'll never be able to afford that, I make like 10k an hour!".

These kind of things never really have any affect on veterans of the game, because as prices go up, so do the returns on mostof their money making methods. The problem is that these money making methods aren't available until you get to a high level. Massive inflation like this is just going to create an enormous rift between unseemingly rich high level players, and the larger population of low levels. The gap is already pretty damn prevalent, but it'll get worse if this sort of cash flow into the economy remains unchecked.

/$0.02

To the above poster: Newbie players already thought that, so that isn't really a concern. Inflation>Deflation>Stagnation IMO. Not to mention you also ignore the fact that the items they can gather, such as coal, are going up, therefore they are making more gold per hour than before.

i have an idea of how Jagex may be planning to curb this Gp-influx, but i'd rather not say in case I'm wrong.

None of this has really affected me anyway - only thing I've started doing it not selling any of the drops I get from roaches.

I rarely have more than 2-3% of my bank value in Gp at any given time, so I guess I was well prepared for all of this O:)

To the above poster: Newbie players already thought that, so that isn't really a concern. Inflation>Deflation>Stagnation IMO. Not to mention you also ignore the fact that the items they can gather, such as coal, are going up, therefore they are making more gold per hour than before.

That doesn't mean that the price of the resource items are going to stop rising any time soon, with the rate of gold flowing into the market at a much faster rate than the rate of draining. Instead of hitting a new equilibrium, the items would just spiral up and up. I won't be surprised if cooked sharks hits 2k, and prayer potions hit 20k a bottle by the end of the month

Everyone on this forums already thinks they're always right, please don't introduce politics into this.

 

Here is a wiki about real world inflation:

 

 

 

[hide=Negative]Negative

 

 

 

An increase in the general level of prices implies a decrease in the purchasing power of the currency. That is, when the general level of prices rises, each monetary unit buys fewer goods and services.[17] The effect of inflation is not distributed evenly, and as a consequence there are hidden costs to some and benefits to others from this decrease in purchasing power. For example, with inflation lenders or depositors who are paid a fixed rate of interest on loans or deposits will lose purchasing power from their interest earnings, while their borrowers benefit. Individuals or institutions with cash assets will experience a decline in the purchasing power of their holdings. Increases in payments to workers and pensioners often lag behind inflation, especially for those with fixed payments.[8]

 

 

 

High or unpredictable inflation rates are regarded as harmful to an overall economy. They add inefficiencies in the market, and make it difficult for companies to budget or plan long-term. Inflation can act as a drag on productivity as companies are forced to shift resources away from products and services in order to focus on profit and losses from currency inflation.[8] Uncertainty about the future purchasing power of money discourages investment and saving.[18] And inflation can impose hidden tax increases, as inflated earnings push taxpayers into higher income tax rates.

 

 

 

With high inflation, purchasing power is redistributed from those on fixed incomes such as pensioners towards those with variable incomes whose earnings may better keep pace with the inflation.[8] This redistribution of purchasing power will also occur between international trading partners. Where fixed exchange rates are imposed, rising inflation in one economy will cause its exports to become more expensive and affect the balance of trade. There can also be negative impacts to trade from an increased instability in currency exchange prices caused by unpredictable inflation.

 

 

 

Cost-push inflation

 

Rising inflation can prompt employees to demand higher wages, to keep up with consumer prices. Rising wages in turn can help fuel inflation. In the case of collective bargaining, wages will be set as a factor of price expectations, which will be higher when inflation has an upward trend. This can cause a wage spiral.[19] In a sense, inflation begets further inflationary expectations.

 

 

 

Hoarding

 

People buy consumer durables as stores of wealth in the absence of viable alternatives as a means of getting rid of excess cash before it is devalued, creating shortages of the hoarded objects.

 

 

 

Hyperinflation

 

If inflation gets totally out of control (in the upward direction), it can grossly interfere with the normal workings of the economy, hurting its ability to supply.

 

 

 

Allocative efficiency

 

A change in the supply or demand for a good will normally cause its price to change, signalling to buyers and sellers that they should re-allocate resources in response to the new market conditions. But when prices are constantly changing due to inflation, genuine price signals get lost in the noise, so agents are slow to respond to them. The result is a loss of allocative efficiency.

 

 

 

Shoe leather cost

 

High inflation increases the opportunity cost of holding cash balances and can induce people to hold a greater portion of their assets in interest paying accounts. However, since cash is still needed in order to carry out transactions this means that more "trips to the bank" are necessary in order to make withdrawals, proverbially wearing out the "shoe leather" with each trip.

 

 

 

Menu costs

 

With high inflation, firms must change their prices often in order to keep up with economy wide changes. But often changing prices is itself a costly activity whether explicitly, as with the need to print new menus, or implicitly.

 

 

 

Business cycles

 

According to the Austrian Business Cycle Theory, inflation sets off the business cycle. Austrian economists hold this to be the most damaging effect of inflation. According to Austrian theory, artificially low interest rates and the associated increase in the money supply lead to reckless, speculative borrowing, resulting in clusters of malinvestments, which eventually have to be liquidated as they become unsustainable.[20][/hide]

 

 

 

[hide=Positive]Positive

 

 

 

Labor-market adjustments

 

Keynesians believe that nominal wages are slow to adjust downwards. This can lead to prolonged disequilibrium and high unemployment in the labor market. Since inflation would lower the real wage if nominal wages are kept constant, Keynesians argue that some inflation is good for the economy, as it would allow labor markets to reach equilibrium faster.

 

 

 

Debt relief

 

Debtors who have debts with a fixed nominal rate of interest will see a reduction in the "real" interest rate as the inflation rate rises. The real interest on a loan is the nominal rate minus the inflation rate. (R=n-i) For example if you take a loan where the stated interest rate is 6% and the inflation rate is at 3%, the real interest rate that you are paying for the loan is 3%. It would also hold true that if you had a loan at a fixed interest rate of 6% and the inflation rate jumped to 20% you would have a real interest rate of -14%. Banks and other lenders adjust for this inflation risk either by including an inflation premium in the costs of lending the money by creating a higher initial stated interest rate or by setting the interest at a variable rate.

 

 

 

Room to maneuver

 

The primary tools for controlling the money supply are the ability to set the discount rate, the rate at which banks can borrow from the central bank, and open market operations which are the central bank's interventions into the bonds market with the aim of affecting the nominal interest rate. If an economy finds itself in a recession with already low, or even zero, nominal interest rates, then the bank cannot cut these rates further (since negative nominal interest rates are impossible) in order to stimulate the economy - this situation is known as a liquidity trap. A moderate level of inflation tends to ensure that nominal interest rates stay sufficiently above zero so that if the need arises the bank can cut the nominal interest rate.

 

 

 

Tobin effect

 

The Nobel prize winning economist James Tobin at one point had argued that a moderate level of inflation can increase investment in an economy leading to faster growth or at least higher steady state level of income. This is due to the fact that inflation lowers the return on monetary assets relative to real assets, such as physical capital. To avoid inflation, investors would switch from holding their assets as money (or a similar, susceptible to inflation, form) to investing in real capital projects. See Tobin monetary model[21][/hide]

 

 

 

I post this to show that Inflation isn't the devil(as many people on this forum seem to think)...Rapid inflation is very bad, but slight inflation, especially for runescape, isn't a terrible thing.

The problem is that we're dealing with rapid inflation here; if you look at the GE Database a LOT of items are raising at 2% a day. Slight inflation is what most countries hope to achieve, and the goal they set for it usually lies around the worth of everything raising with 2% a YEAR.

So yes, slight inflation might be a good thing, but we do have a problem on our hands now.

Yes, but when EVERYTHING inflates, no one is harmed.

Sept for like... alchers...

I felt that I just had to post, the 26k "trick" is just getting out of hand. After I get 99 Runecraft I was planning on training Prayer, Crafting, Herblore and all of my other skills. Now that the prices of all the things needed to train these skills has gone through the roof I think i'll just train the skills that don't need any materials such as fishing, mining Etc. And, although I have the money to spend, I simply won't as the prices just DO NOT need to be this high.

So they change their minds as fast as a jet flyby?

And thanks for making lose the game carl. :roll:

So they change their minds as fast as a jet flyby?

 

 

 

 

 

And thanks for making lose the game carl. :roll:

What do you mean by the first line? I've not seen them say it's a good thing. I seen a picture of Mark saying that he thinks they're generous, but I'm 100% sure he's talking about real Pk'ers and their loot. And not 26k'ing folks. :thumbdown:

No problem. :

Was posted by 3pointman here, and on Truthscape by someone else. I refuse to believe it however.

 

Was posted by 3pointman here, and on Truthscape by someone else. I refuse to believe it however.

Refuse to believe what? :roll:

That pic, if it's true....No words can describe the fail.

That pic, if it's true....No words can describe the fail.

I think that MMG meant "pvp drops" as in drops from legitimate PK's. - As you can see in the post by Carl, MMG does not appear to be happy with 26king.

Personally I like the conspiracy theory/idea/reason that the only reason it's not "against the rules" is that if Jagex banned 80% of their playerbase, it'd be worse for business than even this inflation.

Yes, but when EVERYTHING inflates, no one is harmed.

 

 

 

Sept for like... alchers...

Except that not EVERYTHING is inflating, specifically nature runes because store's stock keeps them at a constant lvl. But still, even if prices for raw materials keeps rising, gathering skills will still be nowhere near as profitable as pking, so the old style of gameplay will still be obselete. I don't know about you, but I don't want to be forced to 26k trick over and over again just so I can enjoy the game, I should be able to take many routes to gaining wealth.

They couldn't make 26king against the rules. It's a flaw in there system, and they've never banned anyone for taking advantage of something they refuse to change immediately(ie, non-bug system abuse)..

26king is a flaw, and the reason I'm doing it now is so I can get from 90-94 mage to pk. However, everyone seems to think that it spawns 10's of millions an hour. Although sometimes people get lucky(which is somewhat rare)...I ussually get more from a legit pk then 26k.

Here is a pic of about 3 hours of pvp(I got sidetrack with target who refused to dm...so we fought a good 10 rounds before he koed me, and I lost about 1.5m in gear excluding the 260 shark and 30 prayer pots).....

I would say this is a little below average, as I usually get around 1.8m in items(and this comes very close)...

Anyway, thats about 1.3m in cash that spawned from the other guy losing 150k...I gained 50k of that back..so 1.2m cash brought into the game by myself in a timespan of 3 hours of gameplay and a difference of about 5 hours from start to finish...

I would consider myself the average 26ker, as I don't do it very seriously.

I should also not that in this time I got clawed and lost a warrior ring(200k worth), which can't be used in the stats, as I don't know what that generated in cash for the person who clawed me...

so anyway 1.6m in 3 hours, or 533k an hour. wow, not much of an improvement over green hides(which spawns items dbones and green hides from nothing...so I don't understand the difference between spawning gold from nothing and spawning an item from nothing, just the fact that it spawns is going to affect the price).

anyway, I know I can spawn more gold from alching for three hours than 1.6m