Discussion in 'Dungeons of Dredmor General' started by Nicholas, Jul 13, 2012.
I still don't get how that works at all.
Currency exchange rates + maths + economy. I won't explain it any more because I don't think there's any way to explain it in a simpler way than my previous attempt.
Also, notice the word "equivalent".
But... argh, my brain just died. I just can't comprehend how $70 becomes near $300 due to exchange rates. But if your currency is four times weaker than the dollar (e.g. Four Diggles to the Dollar), then relatively speaking it would be four times more expensive but not actually be four times expensive.
"Equivalent", damn it.
Not "equal" but "equivalent". So yes, it's four times more expensive. Which is why I used the word "equivalent" in the post where I wrote that.
And the whole problem of yours seems to stem from you having not noticed that one word.
PS. No, I'm not angry. I'm just trying to put emphasis on this word.
Keyword here being equivalent, not equal. The purchasing power of either currency within its home country is similar, but Kazeto, to purchase something in dollar prices, has to pay 4x with regards to international currency exchange rates since that's the going rate for 1 Diggle vs. 1 dollar.
What's the difference?
What makes the "exchange rate" the definitive way of defining how expensive something "actually" is? The exchange rate is nothing but an average of all the different prices currency sellers are currently selling at, it has no inherent meaning. Currency analysis based on exchange rates is no more valid than analysis based upon average wage.
I don't think that is quite the point here, Maze1125.
Is it not?
Althea's post is based upon the idea that exchange rates are the "correct" way to judge the equality of different currencies. Which is what my post addresses.
All very well to say that currency exchange rate analysis has no bearing on anything, but you're sort of forgetting that relative values do have some backing here. By the same point I could argue that selling something for 20 apples is better than selling it for 10 oranges. If you're talking about prices in the same country, that has some bearing, but you're forgetting that the relative price can be cheaper or more expensive for an individual buyer in a different country. Since I live in India, it's cheaper for me to buy a comparable product here from an authorized supplier than it is for me to pay its original price in American dollars. And there's where your exchange rate then becomes definitive. Case in point; X product costs about 200 dollars in the USA. I can buy it here, not only saving the S&H costs, but I would only have to pay about 170$ instead of the full 200 after allowing for pricing.
As the rate goes up, it becomes more expensive to get something from a foreign source. As it goes down, the prices here drop even more to compensate. The talk isn't about belief here; it's about how international pricing can vary significantly from local rates.
But I didn't say that, nor do I believe that.
Well, while I do agree that you are right about it, we are slowly veering into the sea of offtopic craziness (Daynab's going to kill us, or me at any rate), and I don't think messing with Althea's head even more is the right thing to do.
What I'm confused about is how a $70 product suddenly becomes $280. I don't know if Kazeto is saying it is $270 for them or what, because I cannot work out at all how it quadruples in price.
But if the currency is four times weaker but everything is on a 1:1 scale, that means Kazeto is paying an amount that, proportionally, is four times higher (so if the $70 was 1/8th of a US wage, it'd be 1/2 of the other one).
I would paying an equivalent of these 270$ if we were to look at it from my viewpoint, because of currency exchange rates.
So no, the amount I would pay if I bought that diggle would still be 70$, but my wallet would feel as if it was 270$.
Also, can someone pass some rope and a gag so that I can stop this derail? Because we seriously should stop with that...
Yo, let's talk about the diggles.
When will they start selling Plush Daggles?
(Currency. Yuck. Not going there. I have strong opinions on this, but it would be an even more extreme derail than I usually manage when I 'eff things up so no-one can discuss the topic ever again...)
ITT: the fund of economy
As a heads-up: so far, we have sold 65 of the first 100 Diggles that get artwork. So there are 35 left. If you have not claimed one, we suggest you do so now.
Teh best birthday present I has ever recieved.
(No, seriously, thanks Gaslamp.)
Time for a little bit of overtime.
Separate names with a comma.