Saturday, August 6, 2011

Capitalism 2

When playing computer game Trevor Chan's Capitalism 2 (fully legit game, check it out here), back a few years ago, I used one simple strategy to blow my competitors away.

What is Capitalism 2

Capitalism 2 is a simulation of the activities of companies, supply chains, and the stock market. The aim of the game is to build the largest corporation in the world. I start off as the CEO of a small small company and must build my way up.

The strategy

After a few years into the game play, when I have setup farms, manufacturing plants and retail chains, I sell all the shares I have in my own company, and pocket the cash. Then I turn off my farms, manufacturing plants and retail chains, so that they become inactive and non-revenue-generating.

At that point in time, my company share price tumbles from $200/share to $20/share. I use the cash in my pocket to buyback all my shares to fully own my company, and still have much cash left over. Then I turn on my farms, manufacturing plants and retail chains, and my stock value soars right up once again.

Moral of story

Do you think there's any deception going on in the world's governments? Quite possibly.

I believe the US are borrowing like there's no tomorrow, because there will probably be no tomorrow, at least for the USD.

If I was the US government in a game of Trevor Chan's Capitalism 2, I would borrow an extremely massive amount of money, build up my economy, attract investors, then turn off my economy for a while, watch the value of the dollar plummet and then pay back my debts at a few cents in the dollar.

Wouldn't you do the same?

Seems like very hard economic conditions leading up to October 2011.