Office of Game Moderator - Part Deux - PLEASE READ THINGS

[Sopranos Republican]

This is really awesome!

[Adam Griffin]

With Pacific's fate still in the balance, national unemployment indicators look grim; country on the verge of recession?

For a second straight month, Atlasian unemployment numbers rose markedly according to the June 2013 unemployment report. The steepest rise in unemployment in years, many economists and business leaders are quietly panicking as the turmoil that erupted in the Pacific in May has taken on new proportions.

A de-facto devolution of regional government in the Pacific throughout the month of May led to sharp increases in unemployment in the Pacific – from 9.9% in April to 11.7% in May. During and following this time, the recall of the Pacific Council and the Governor of the Pacific created a climate that provoked many businesses into laying off workers as an anticipated fall-out from the lack of government unfolded.

The situation appears to have only gotten worse throughout the month of June, following the anarchy that transpired in the wake of the Pacific Government's dissolution by both National Movement – Aliya Mustafina and Labor Party associates. The unemployment rate in the month of June skyrocketed to 14.8% - the highest ever recorded in the region's history – as the Supreme Court continues to assess the constitutional validity of such moves.

Some economists are baffled at the lack of immediate action taken by federal authorities. With no emergency provisions enacted by the federal government – through executive order or through Senate legislation - to ensure furloughs and other job losses are avoided, the region's economic activity has ground to a halt. Last week's financial report ascertained that the Pacific region has lost 10% of its GDP over the past month alone, which is causing a spill-over into the national economy.

At the national level, unemployment has been dramatically affected by the current economic climate of the Pacific. In May, the unemployment rate jumped 0.5 points – from 7.4% in April to 7.9% in May – but these developments appear to be just the beginning of what could be a potential recession. The June unemployment rate spiked even higher, rising to 8.6%.

Over the past six months, GNP has shrank by nearly 0.2%, leaving many business leaders worried that further inaction on behalf of the federal government could result in disastrous consequences. Inaction has not been the only catalyst, however; other regions are experiencing marked increases in unemployment due to various actions taken as a result of the Pacific dissolution.

The Imperial Dominion of the South saw its biggest increase in unemployment in recent years, jumping from 7.2% in May to 7.7% in June. This is believed to have been caused by members of the regional government who – more so than any other region – attempted to enact legislation that would formally annex the Pacific and deploy the Imperial Guard into Pacific territory. Many industry analysts report that these kinds of actions resulted in tens of thousands of layoffs out of fear that an impending regional crisis – namely between the federal government and the IDS – would develop.

In the Midwest and Northeast, the same effects were felt but to a smaller degree, as proposed legislation in these regions did not gain the same level of steam as they did in the IDS. The Midwest and the Northeast each saw a 0.2-point increase in unemployment, while the Mideast unemployment rate remained unchanged for the month of June.

[Southern Senator North Carolina Yankee]

Unfortunately, these hockey stick graphs are unimpeachable.

[Adam Griffin]

Unfortunately, these hockey stick graphs are unimpeachable.

Correct.

[SUSAN CRUSHBONE]

Unfortunately, these hockey stick graphs are unimpeachable.

Hopefully, the same cannot be said for Xahar, seatown, &al

[Donerail]

How has this affected major corporations? Are they all staying put in Silicon Valley and elsewhere in the Pacific, or are they beginning to move operations to other technology centers (and if they are, are there any steps regional executives could be taking to attract them)?

[Southern Senator North Carolina Yankee]

What about the effect on banks and financial institutions, with exposure to Pacific bonds and other securities?

[Southern Senator North Carolina Yankee]

The rather selfish conduct on the part of many IDS officials has been rather discouraging, especailly considering the numerous hours we have been expending in Nyman to put humpty back together again.

Now Mr. President, abotu that road in Sampson county....

[Donerail]

How has this affected major corporations? Are they all staying put in Silicon Valley and elsewhere in the Pacific, or are they beginning to move operations to other technology centers (and if they are, are there any steps regional executives could be taking to attract them)?

Economic cannibalism is not the answer to our country's problems.

I'm not gonna steal them away from the Pacific, just wondering if they're leaving anyways (because then I'd try to attract those who were leaving here, to try to fix our recent rise in unemployment).

[Adam Griffin]

How has this affected major corporations? Are they all staying put in Silicon Valley and elsewhere in the Pacific, or are they beginning to move operations to other technology centers (and if they are, are there any steps regional executives could be taking to attract them)?

Economic cannibalism is not the answer to our country's problems.

I'm not gonna steal them away from the Pacific, just wondering if they're leaving anyways (because then I'd try to attract those who were leaving here, to try to fix our recent rise in unemployment).

The vast majority of those employed in impacted industries would fall into two categories: public sector employees who were furloughed due to the dissolution of the Pacific government, and service industries that are directly tied to local consumer spending. In either case, it would be difficult for another region to attract any new employment opportunities as a direct result of this, unless the trends of emigration seen in recent weeks continue or demand in other regions otherwise increases markedly.

A large amount of capital, however, has been moved out of the Pacific region in recent weeks as investors, corporations and venture capitalists fear the developing economic situation combined with the lack of a resolution as of yet. Fortunately, the vast majority of this has remained within the country (which explains why the negative growth outlined in the Financial Report wasn't worse). Still, business leaders and those in possession of large amounts of liquidity are hesitant to invest at this point, as they see no rectification of the current problem in sight and an apparent spill-over of these financial woes into the national economy.

What about the effect on banks and financial institutions, with exposure to Pacific bonds and other securities?

The key rates for major regional bonds would obviously be increasing substantially at this point, though I have no specific figures for you yet. It honestly would baffle me that any central banking authority would have been heavily invested in bonds for a region that has not passed a budget in over two years, had a barely-functional regional government for many months and has seen complete inactivity and federal intervention in the weeks leading up to the attempted dissolution of the regional government.

Furthermore, I can only find one region that explicitly has any information listed about its bonds: the Mideast. The Office of Game Moderator - to my knowledge - has not kept track of this specific information on bonds since 2009 (Purple State), but more information regarding this situation will be forthcoming.

[Adam Griffin]

Federal Reserve lowers key interest rate; initiates purchase of Pacific bonds
July 7, 2013

The Federal Open Market Committee decided today to lower its target for the federal funds rate 75 basis points to 0.5 percent.

The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures and several crises that have emerged in the Pacific. Business equipment spending and industrial production have weakened over the past month, and slowing economic activity in many foreign economies is damping the prospects for Atlasian exports. Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.

In light of the increases in the prices of energy and other commodities and the weaker prospects for economic activity, the Committee expects inflation to moderate in coming quarters to levels consistent with price stability.

Recent policy actions, including today’s rate reduction and coordinated interest rate cuts by central banks should help over time to improve credit conditions and promote a return to moderate economic growth. Nevertheless, downside risks to growth remain. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.


In addition to lowering its target for the federal funds rate, the Federal Reserve announced plans to purchase $65 billion in longer-term Pacific government debt from the private sector. The goal of this program is to bolster the economy in the wake of possible recession, spur job creation, and ensure that inflation, over time, is at levels consistent with the Federal Reserve's mandate.

The Fed has been mandated by law to promote maximum employment and price stability. The recent instability in the Pacific region and consistent stagnation of the regional economy resulted in an unacceptably high unemployment rate above the level the Fed judges to be consistent with its mandate. It is the Fed's job to do what it can responsibly do to help bring down unemployment to the lowest level the economy can sustain over the short and medium term.

Normally, when the economy is weak, unemployment is too high and inflation too low, the Federal Reserve lowers short-term interest rates. Lowering short-term interest rates in turn eases what economists call broader financial conditions—reducing the cost of longer-term finance and raising the value of assets such as stocks and homes. Lower interest rates in Atlasia typically results in some downward pressure on the foreign exchange value of the dollar as well. All these factors support spending, employment and growth.

[Sec. of State Superique]

Is it even legal to order the FED to reduce its interest rates?

[Southern Senator North Carolina Yankee]

Is it even legal to order the FED to reduce its interest rates?

The GM is supposed to simulate the actions of the FED. Therefore you could say he is the FED. It is a shame the GM hasn't made that clear by way of regularly posting a FED like statement such as that seen above since such was put into legislation back in 2009.

[Adam Griffin]

Is it even legal to order the FED to reduce its interest rates?

The GM is supposed to simulate the actions of the FED. Therefore you could say he is the FED.

EDIT: Damn I hate when hotlinked images go bad

[TNF]

GM,

Would you mind getting me a list of all major cities that would qualify for federal aid under the terms of the SEDZI Act? And could you possibly give me an indication as to how much implementing SEDZs would cost in those cities?

Thanks!

[Adam Griffin]

GM,

Would you mind getting me a list of all major cities that would qualify for federal aid under the terms of the SEDZI Act? And could you possibly give me an indication as to how much implementing SEDZs would cost in those cities?

Thanks!

I'll be happy to review and furnish said information within the next day or two.

[sentinel]

There was a lot of silliness about confirming Griffin when he was nominated the first time. I'd just like to point out that he is doing a superb job, and the haters were wrong. #justsayin

[TNF]

There was a lot of silliness about confirming Griffin when he was nominated the first time. I'd just like to point out that he is doing a superb job, and the haters were wrong. #justsayin

+1

also thank you GM!

[Adam Griffin]

There was a lot of silliness about confirming Griffin when he was nominated the first time. I'd just like to point out that he is doing a superb job, and the haters were wrong. #justsayin

Speaking as a one-time hater, I could not possibly agree more. We in the Senate really judged things wrong the first time around.

also thank you GM!

[Adam Griffin]

GM,

Would you mind getting me a list of all major cities that would qualify for federal aid under the terms of the SEDZI Act? And could you possibly give me an indication as to how much implementing SEDZs would cost in those cities?

Thanks!

FYI: a tentative list of 102 municipalities (with populations between 50,000-100,000) has been compiled. I will be comparing the list more closely to ensure that all cities meet the SEDZI criteria and will then proceed to provide an estimated cost for the proposal.

[Queen Mum Inks.LWC]

Where did you get these numbers from, since the Mideast taxes pensions:

Pension & Retirement Deductions ($26.08 billion)
$10.05 billion ..... Employer-paid Pensions (No Change)
$7.05 billion ..... 401Ks & Keogh plans (No Change)
$1.50 billion ...... IRAs (No Change)
$6.62 billion ..... Group and personal life insurance benefits (No Change)
$0.86 billion ...... Other retirement benefits (No Change)

I'm not understanding how there would be any deductions.  Employer-paid pensions are taxed at 1.5%, but that wouldn't be part of someone's earned income, and funds for 401Ks and IRAs are taxed before an employee puts money into them.

[Adam Griffin]

Where did you get these numbers from, since the Mideast taxes pensions:

Pension & Retirement Deductions ($26.08 billion)
$10.05 billion ..... Employer-paid Pensions (No Change)
$7.05 billion ..... 401Ks & Keogh plans (No Change)
$1.50 billion ...... IRAs (No Change)
$6.62 billion ..... Group and personal life insurance benefits (No Change)
$0.86 billion ...... Other retirement benefits (No Change)

I'm not understanding how there would be any deductions.  Employer-paid pensions are taxed at 1.5%, but that wouldn't be part of someone's earned income, and funds for 401Ks and IRAs are taxed before an employee puts money into them.

I'll be happy to look into this further, but the numbers (unchanged by my office for the 2013 budget) come from the 2012 Mideast Budget. I see that the former GM was not sure about these figures, either.

[Fmr. Pres. Duke]

Griffin sounds like my boy Bernanke now.

[Southern Senator North Carolina Yankee]

Griffin sounds like my boy Bernanke now.

Suddenly you signature makes a whole lot more sense.

[Adam Griffin]

Since some will want to know and have asked, the federal deficit for 2013 is projected to be $31.74 billion, contrasting with a $64.34 billion projected surplus in April.


The following 75 cities meet all of the criteria set forth by the Social & Economic Development Zone Improvement Act (state and population included). These areas combined encompass a population of 5,427,452 individuals and it is estimated that approximately 4.2% of the aforementioned population would be employed via the "Atlasia Works" program if implemented.

With 80% of the costs of employment covered by the Federal Government, it is estimated that employing 228,000 workers for a period of 12 months (with an average gross wage of $25,000) would cost $4.1-4.7 billion.

In addition to this, the maximum amount that could be allocated to each SEDZ for the purpose of infrastructure improvements and various local projects to better the community is $15 million. For 75 cities and over a 12-month period, this would result in a maximum amount of $1.125 billion.

Tax relief provisions under the SEDZI Act would result in a decline of federal revenue between $6.0-6.6 billion over the next 12 months.

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