Siddermarkian and Safehold development

PeterZ wrote:The decision was made to help Siddermark develop thier own industry themselves rather than manufacturing the components in Charis and shipping them in. Yes, there will be some key tools Charis will supply, but the primary driver will be Siddermark.

That suggests Siddermark will have to progress in several stages. First is to realign the workforce to think in terms of processes that different people can participate in and not in terms of skills that master craftmen have collected. Second, set and enforce standard weights and measures. Third, add labor saving power tools to each stage in the process. Fourth, evaluate the current process and make alternations as needed.

What occurs to me is when Charis was beginning the process, it was much welthier than Siddermark is now. The changes in processes in a very short period of time means heavy retooling. The cost of retooling will be spread over a much shorter time and fewer items produced. This makes the cost of production very expensive as Siddermark climbs the industrial learning curve.

That suggests that Cayleb will have to either help Siddermark with additional investments to fund this learning process or offer short cuts for Siddermark's development of manufacturing processes. The former is expensive but will make sure the lessons of industrial organization is well learned. The latter is cheaper but would likely handicap Siddermark's industry in their ability to understand just why they do what they do. I am certain Cayleb will make the investment in Siddermark's learning and development. I doubt that Howsmyn can do it by himself.

All in all it appears that the House of Ahrmahk is set to become the Central Bank of Safehold. They will be lenders and investors to replace the CoGA. I wonder if Cayleb will offer loans rebuild war torn countries? I wonder if he will also use those loans to guide a nation's investment in infrastructure? I foresee the Marshall Plan on steriods.

How far off base am I?

lyonheart wrote:Hi PeterZ,

Thoughts regarding the House of Ahrmahk becoming the central bank of Safehold?

Right on!

Given Cayleb's future financial resources [100 billion marks per annum for 100 years just for the first lode] easily replacing both the temple and SC as the banker with the most cash.

...

jgnfld wrote:I'm still confused as to what actual good silver does Charis. Let's say England had found that, oh, the Isle of Mann was absolutely lousy with silver in the mercantile era. How would this have helped them? Seems to me it would have more probably hurt their development technologically and culturally rather than helped.

All the silver in South America certainly did precious little for Spain's eventual technical/cultural development, for example.

The only thing the rest of the world has right now they can "buy" with all that silver is raw material and raw untrained labor/mercenaries as I see it. And these are limited by what the populations of the rest of the world can support with food and other living essentials. That would certainly seem to me to greatly devalue its worth.

lyonheart wrote:Hi PeterZ,

Thoughts regarding the House of Ahrmahk becoming the central bank of Safehold?

Right on!

Given Cayleb's future financial resources [100 billion marks per annum for 100 years just for the first lode] easily replacing both the temple and SC as the banker with the most cash.

...

PeterZ wrote:Charisian productivity is creating wealth through all the different things they produce. The price of those things are falling because the number of things to be bought grow greater in proportion to the amount of currency used to buy them. It takes less silver to buy a yard of cloth than it used to...

jgnfld wrote:

PeterZ wrote:Charisian productivity is creating wealth through all the different things they produce. The price of those things are falling because the number of things to be bought grow greater in proportion to the amount of currency used to buy them. It takes less silver to buy a yard of cloth than it used to...

I'm fine with that, I just don't see how the silver in Charis actually helps unleash that productivity into the rest of the world. If the silver were in Siddarmark, that would might seem to be a different story.

Again, could you explain how England suddenly finding tons of silver in England would have helped develop its industrial strength? I just don't see it.

PeterZ wrote:(SNIP)

Once the jihad is over every other nation will either have its infrastructure destroyed or is coffers emptied by the jihad.....except Charis.

(SNIP)

MWadwell wrote:

PeterZ wrote:(SNIP)

Once the jihad is over every other nation will either have its infrastructure destroyed or is coffers emptied by the jihad.....except Charis.

(SNIP)

This is actually a very important point.

After WW1 and WW2, America was able to build on the industrial expansion that occurred during the war, for massive post-war economic growth.

Britain on the other hand, was bankrupt after WW2 and as a result, economically stagnated (even after WW2).


So, I would expect that the same effect in Charis's favour - with a massive economic improvement....

jgnfld wrote:
I'm fine with that, I just don't see how the silver in Charis actually helps unleash that productivity into the rest of the world. If the silver were in, say, Siddarmark, that would might seem to be a different story at least for buying Charisan expertise from Charis.

Again, could you explain how England suddenly finding tons of silver in England--especially assuming that England was the only developed nation of the time--would have helped develop its industrial strength? I just don't see it.

PeterZ wrote:

jgnfld wrote:
I'm fine with that, I just don't see how the silver in Charis actually helps unleash that productivity into the rest of the world. If the silver were in, say, Siddarmark, that would might seem to be a different story at least for buying Charisan expertise from Charis.

Again, could you explain how England suddenly finding tons of silver in England--especially assuming that England was the only developed nation of the time--would have helped develop its industrial strength? I just don't see it.

I realized that i did not specifically address your question. Sorry, let me try now.

The silver only facilitates economic activity as a means of storing and transfering wealth. If we are discussing England of the Industrial Revolution, the new influx of silver means that more people in England will have access to the silver. This will be true because the value of silver relative to the available goods and services will be worth less. Meaning it requires more silver to buy a good or service. As silver becomes worth less, the amount of silver available at the lower levels of the economy will have greater access to silver because it is not so dear as it once was. This process will occur whether production increases or not.

Now, if production should increase in company to the increased amount of silver, silver becomes more available AND prices remain stagnant or fall. Prices will fall if production increases at a much greater pace than the quantity of silver in the economy. As more people participate in the economy the velocity of the silver changing hands and flowing in the economy speeds up.

The silver by itself does not do anything for economic expansion. In that your instinct was right. The increased silver does however, increase the ability of a greater number of people to participate in the economy.

Does that answer your question, jgnfld?

lyonheart wrote:Hi PeterZ,

I've posted before on how Maikel might use the CoC's tithes to influence the economy, which might further moderate some of the potential abuses of industrialization that RFC has already addressed.

Given that the CoC will get 20% of the top, I expect hospitals, schools and poor housing will be among the projects that will be encouraged by the new revenue.

My previous proposals have suggested the unspent CoC funds could be invested in the best banks at interest rates that could be used regulate the economy indirectly, without direct government action, though Underhill would have been involved.

I expect once the revenue does start to pour in, Underhill will start to remove the war taxes he began to impose back in BSRA (wharf and warehouse taxes etc), allowing people to spend more of their money their way, expanding the non-war economy, definitely a good thing.

L

PeterZ wrote:...

I realized that i did not specifically address your question. Sorry, let me try now.

The silver only facilitates economic activity as a means of storing and transfering wealth. If we are discussing England of the Industrial Revolution, the new influx of silver means that more people in England will have access to the silver. This will be true because the value of silver relative to the available goods and services will be worth less. Meaning it requires more silver to buy a good or service. As silver becomes worth less, the amount of silver available at the lower levels of the economy will have greater access to silver because it is not so dear as it once was. This process will occur whether production increases or not.

Now, if production should increase in company to the increased amount of silver, silver becomes more available AND prices remain stagnant or fall. Prices will fall if production increases at a much greater pace than the quantity of silver in the economy. As more people participate in the economy the velocity of the silver changing hands and flowing in the economy speeds up.

The silver by itself does not do anything for economic expansion. In that your instinct was right. The increased silver does however, increase the ability of a greater number of people to participate in the economy.

Does that answer your question, jgnfld?