Economic News

[Shadows]

Economic News
Holonet Channel 11

[Shadows]

The Credits Flow!
Techno Union Reinvests

Today, foreman of the Techno Union Watt Tambor, announced a large scale reinvestment program. This program is aimed at reinvesting nearly 10% of the Techno Union's combined economy, back into the planets considered Techno Union holdings. With an estimated budget of eight quadrillion credits, the program will see a large scale increase in the amount of consumer goods being produced by the Union. This plan has met equal praise and condemnation. 

Many hardliners with the Union's executive class have viewed the investment as reckless. Citing the potential for rampant inflation that flooding the economy with this much currency to have negative repercussions, they are calling for Foreman Tambor to reduce the funding for the program, or at least spread it out over multiple years. However, many on the mid and lower levels of the Union's administration are praising the move. To them, this is the culmination of decades of promises for the Union to reinvest it's vast wealth into the planets that support it. Many economists from this level of the Union are praising the expected results, saying that this could increase economic growth by a minimum of 0.5% for the next year!

While the end results are not known, what we can say is that the money is already flowing. Ground was broken on numerous production facilities across a dozen worlds, within hours of the money being distributed. While the administrators in the Union squabble over the potential results of this program, those on the ground are enjoying job security, pay increases, and more potential than they have in a decade.

[Shadows]

Kuati Debt Pay Off
Brilliant move or the beginning of economic decline?

"Good evening fellow Sentients, and welcome to Today's Credits, your foremost news on the economic happenings within the Core Worlds. I am Rick Sternbach, head anchor for Holonet Channel 11 News. Today I'm joined by Alen Draay, chairman of the Draay Trust and Executive Advisor to the Bank of the Core--one of the foremost financial institutions in the Republic. Mr. Draay joins me to discuss the most unusual occurance in the core... the world of Kuat paying off the entirety of it's foreign owned debt. Mr. Draay, what're your initial thoughts?"

"First, thank you for having me Rick. It's always a pleasure to join you on the news. To be honest, our initial reactions to the news was one of shock. While such a thing isn't unheard of, the scale at which it was done--let alone the fact that it was done by a stable and large core economy--is nearly mind boggling."

"Why is that? Isn't relieving your economy of debt a good thing?"

"Well Rick, it can be. Leading economic theory for, well honestly, centuries has been to smartly manage your debt. No government wants it to get so high that they risk their economy, but at the same time they want to carry enough to make themselves safe bets for investing. While Kuat has certainly managed to avoid the first issue, the second is now of urgency. In fact, the Bank of the Core will be announcing shortly that they are lowering the Kuat governments--and through it Kuat Drive Yards and it's subsidiaries--risk ranking from 'Safe' to 'Good,' and there's murmuring that it could be reduced further."

"Risk ranking? Can you explain that for our viewers that are not in the know?"

"Oh, of course. The Bank of the Core uses an internal credit ranking system that we call a risk ranking. It basically boils down to how much of a risk we view the customer. A 'safe' ranking indicates that the customer manages a reasonable amount of debt, while still allowing debt to accrue interest, making them a safe risk for the institution that purchases its bonds or offers it governmental loans. Banks are in this for money, after all, and the interest from standing balances is what pays our bills. Kuat making the sudden and unannounced move to repay those debts has led to a projected loss in revenue for the banks over the next several decades, simply from the loss of interest."

"Well that is certainly something that people may not have realized. The average citizen probably doesn't realize that interest is how banks earn their money, and not allowing them to do so makes you less eligible for loans in the future. Aside from the decrease in Kuat's ranking, what other effects are you seeing at the Bank of the Core?"

"Well I can't get into too many details, but I will say things are hectic. Executives of all levels are running around trying to figure out what's happening next. The Bank of the Core held an estimated 15% stake in Kuati foreign bonds, as well as several direct loans to the Kuati government. While this move has provided us a sudden increase in capital, it's making the big wigs greatly concerned over future losses. As I said, we're currently projecting a loss of economic growth, starting next year."

"Can you elaborate on any of the plans being worked on that might help the Bank's outlook?"

"There's too much in the air to give you details at this time. Needless to say, it's likely that we will be looking at others to purchase bonds from in the future."

"Which is entirely understandable. Mr. Draay, thank you again for joining us. Your insights are as valuable as always. Now, fellow sentients, we will be shifting our focus from Kuat's economic activities to..."

[Shadows]

Following Recent Treaty, Duluur Sector Surveying Worlds in Jaso - Analysts Predict a Joint Venture in the Making

The recently signed friendship accords between the Jaso and Duluur Sector governments included robust agreements regarding economic cooperation, and it appears these agreements are already being acted upon. The Devar’i Confederation is bankrolling a comprehensive survey of the Bestine system. While we aren’t sure exactly what they are looking for, it is likely a preparatory step toward a new joint venture. While one would expect most worlds in the colonies would have been well surveyed by now, the surveyors appear to be focusing on worlds that are hazardous for one reason or another - ice planets, volcanic worlds, etc. This is probably owing to the Devaronians’ renowned resistance to heat and other environmental conditions which might prove toxic or harmful to other species. We don’t know the preliminary results, but the possibility of ramped up industrial cooperation between the two sectors has investors watching closely. 

[Shadows]

Diversification in the Banking Clan
IGBC purchases two production companies

In a somewhat surprising move, the InterGalactic Banking Clan has announced the purchase of two design and production companies. In a move apparently aimed at diversifying holdings, the IGBC has official purchased majority ownership of Phlut Design Systems and Gwori Revolutionary Industries. These companies are not in any way financial institutions. Phlut Design Systems is know for producing small quantities of highly capable droids for private security forces, while Gwori Revolutionary is a mid-scale starship design and production organization. 

Our analysts point to the possibility that this may be a security focused move by the IGBC. With these two corporations, it would be easy for the IGBC to produce it's own droid security forces, as well as patrol vessels, much as the Techno Union does currently. While no specifics have been released by the banking clan, we expect to see them turning out new security oriented products within a years time.

[Shadows]

The Stockpiles of Azure
Azure Sector prepares for war...?

The worlds of the Azure Sector have for many centuries been considered the "shield of the Republic." These worlds, with vast industrial might and generations of military prowess, have taken their nickname seriously. With tensions between Hutt Space and the Republic at an all time high, it was no surprise when the Azure Sector government began making moves to prepare for a possible conflict. What was surprising, however, is the sheer amount of money being funneled into their newest program.

With a price tag in excess of 50 quadrillion credits, the new "strategic material stockpile" aims to ensure that the Azure Sector does not find themselves wanting for supplies in the event of an armed conflict. Already, sites are being developed that will soon be considered strategic storage facilities. The office of the CompTroller, a new division formed this year, is busy preparing contracts with importers and producers. And of course, the Azure Defense Forces are preparing to protect these new assets. While the full list of supplies being stockpiled is confidential, what we have been informed of points to the Azure Sector purchasing up large quantities of items, ranging from industrial base components to stable foodstuffs. These supplies are then to be stored in secure facilities, where they will be held until such a time as the Azure Sector needs it.

Our experts are praising this move with one hand, and are highly concerned by it in another. Should this be successful, the Azure Sector is sure to have a stockpile that will allow it to weather any foreseeable storm. On the other hand, there is concern, that this move will begin driving up prices across the Core, especially with the difficult political climate.

[Shadows]

The New Military Industrial Complex

The news of the new Grand Army of the Republic has sent shockwaves throughout the galaxy. Some of these shockwaves have resulted in wide scale protests, riots, and calls for a halt to plans to remilitarize the Republic. However, in some parts of the galaxy, the news is being met with celebration.

Across many outer Rim worlds, this news is being met with open celebration, by both industrialists and the population. They see this move as an opportunity, for growth and profit in economic sectors that have until recently been dormant. One such individual is Kerred Santhe II, leader of Santhe/Sienar Technologies.

"Simply put, this is great news. The Republic has a near vacuum in relation to component and material producers for military projects. Kuat Drive Yards saw the result of this first hand with that Pride of the Core debacle. Some organizations have moved to address this, such as the Techno Union, but there is still a galaxy wide shortage on base components. This is an opportunity for anyone willing to take the leap from manufacturing civilian ship components to ones of a more military nature." The sentiment of Mr. Santhe is shared, as many other production companies are already gearing up for shifts to a military focus.

The down side of this, is the lack of existing capital for such shifts. According to our analysts, local banks are already stretched thin on the amount of credit that is available for business loans. While they have been appealing to larger galactic institutions, they have not had loans available for military production for nearly a thousand years, leaving a gap in their lending ability. While many scramble to plus this hole and take advantage of this new market, others are petitioning their Senate representatives to press the Republic to help fund this new industrial expansion. 

[Shadows]

The Trade Federation Grows

Today came the official announcement that the Tapani Federation, a conglomerate of worlds of the Tapani Noble Houses and those known as the "freeworlds," has officially joined the Trade Federation. This move has been seen as mutually beneficial for both parties. The Trade Federation, which is typically relegated to its contracts in the Rim, now has access to a wide range of new customers. The Tapani Federation, who is located in the colonies and able to trade extensively with core worlds, has granted the Trade Federation a foothold that they may not have otherwise been able to gain.

For the Tapani Federation, this news has been met with a surge in economic growth. Overnight, Trade Federation affiliates have begun opening businesses within the Sector. Starports are expanding of their own accord, and money is being pushed into the economy by both government support, as well as from private businesses. 

[Shadows]

Economists Sound Alarms
Republic sitting on horde of tax revenue...

Economists from across the Core Worlds began the day by sounding alarm bells as the first half of the new Senate budget report was published. According to the report, the Republic has spent little of the last years tax revenue, and the tax revenue for this year is more than twice the previous year. In total, it leaves over a quintillion credits sitting in Republic bank accounts, not being spent. 

Alen Draay, chairman of the Draay Trust and Executive Advisor to the Bank of the Core, had this to say about the new report. "The sheer amount of credits that the Republic is sitting on reminds me of ancient stories of beasts called dragons sitting on a horde of gold. We've all been watching the Senate closely, seeing if they would address the growing treasury numbers, but it seems the clock has run out. At this point, legislature languishes in the Senate, and the only significant amount of money that has been spent has been on the new Republic Engineering Corporation. It would seem, that in a dramatic shift from the past thousand years, the Senate is only interested in funding military projects. The worst part, some of the largest economies in the galaxy have not submitted their taxes yet... this situation is poised to balloon if action is not taken quickly."

Seeming to echo Chairman Draay's concerns, many outer rim banks are sounding alarm bells. They are concerned that a lack of investment using the Republic tax credits will lead towards large scale economic issues in the future, especially within the Rim. Our analysts indicate that there is a large scale economic recession brewing in the rim world, with many of them currently operating on debt spending. In addition, many of the Republic's rims sectors are facing shrinking economies. 

Already, leaders of the 1 Million System Strong movement are attacking the Senate for the swelling treasury. Yelissa Figg and Senator Ludar stood beside one another during the 1MSS Conference of Gerrenthum, issuing the following joint statement. "The Republic's inability to spend the tax revenue taken from member systems is another sign of the failings of the Core Centered Senate. It very much seems as if the funding is not going to a military, or Core focused piece of legislation, that it simply won't be passed by the Senate. This adds more justification to the Outer Rim to form a new voting bloc, and I hope the representatives here today will agree with me, and work towards forming the official 1MSS voting bloc in the Republic Senate."

[Shadows]

Economic Issues in the Core?

While economists have been talking about economic issues in the rims, they have been quiet about the Core. This is mostly due to the fact that core economies are, for the most part, stagnant. There is very little growth or shrinkage in economies, and for the most part, the Core remains as wealthy as it has been for the past thousand years. However, we can add one more reason for the year 950 ARR to go down in history as a year of change... the Core's economies are starting to move, drastically.

Alsakan has long been a rival of Coruscant when it comes to economic power, being within a hairs breath of one another in terms of budgetary surplus and growth. However, Alsakan's economic reports are in, and they show a significant decline in planetary GDP. Losing nearly two percent of their economic output, the Alsaka Sector seems poised to begin a downward economic trend. While Coruscant still hasn't finished their year end reporting, there's little doubt that someone in the halls of government are toasting the loss on Alsakan.

Meanwhile, the typically quiet, slowly growing economy of the Azure Sector has been injected with adrenaline. The Azure Sectors year end accounting reports indicate nearly two percent growth this past year, sending one of the largest Sector economies in the Core skyrocketing. This new influx of money in the economy seems to be coming from proactive and well thought economic actions from the government, enriching the world's of the Sector and improving infrastructure. While some economists warn that such large scale growth is unmaintainable, many others are praising the economic policies of the sector.

While these two worlds are the best examples of Core economic conditions, they are far from the only ones being effected. Economies across the Core are in Flux, with economies growing and shrinking at record pace.

[Andaril]

 

Alderaan Makes Major Investment in the Lambda Sector!

 

The Alderaan Sector has invested a large sum of credits into the Lambda Sector. Seeking to secure a variety of goods, the Alderaan Sector has begun opening businesses and conducting a large amount of trade in the sector. This investment has seen the Lambda Sector economy soar, with some unfortunate side effects. Inflation is becoming a growing concern, reaching 5% above last year’s numbers. This is driving up the costs of items for the local population, and simply put, Alderaanian Luxury Goods are too expensive for the average citizen of the Sector. If it is not brought under control by the local government, it could lead to a bubble bursting and a recession soon after. On a positive note, unemployment is at an all-time low as Alderaanian companies hire local workers, and local companies expand operations.

Although the economy is soaring and unemployment is at an all-time low, there are some within the sector who are complaining about the heavy involvement of a core world in the economy of a poor rim world. There are many who would agree with the concerns, as fear grows that it will be easy for a powerful core world to exploit those within the Lambda Sector. Groups within the Lambda Sector are claiming their sector government is essentially being bought by the Alderaanians.

Despite the situation in the Lambda Sector, the Alderaanians are now securing a variety of goods at lower cost. Freighters loaded with minerals, ores, blasters, and foodstuffs have been arriving periodically from the Lambda Sector. With these items being hot commodities in the core, it is of no shock the Alderaanians have focused heavily on importing these goods.

 

[Andaril]

 

Supply Situation in the Core

 

Multiple worlds in the core, such as the Azure and Rendili Sectors, have been buying large amounts of fuel, foodstuff, ores, medical goods, and military supplies. This has led to a situation in the core in which shortages are being experienced on many worlds. The markets were not quite prepared for the level of stockpiling and hoarding that has been going on in the core, with major players gobbling up goods while other sectors are going without. Suppliers have been trying to catch up, but the abrupt stockpiling of Azure has led to a domino effect in which others have begun following suit. This panic buying has exasperated the situation and created a chaotic market with market shortages and uneven distribution of goods. Many are complaining of the supply issues, with one angry trader interviewed saying “This is ridiculous, I think the government planned this and has come up with this Hutt Space scare to try and control us. Wake up sheeple! What’s next, should I expect toilet paper to be scarce on the shelves? I’ve never seen such!”

The situation seems to be getting worse. It appears that goods travelling to and from the core have hit a bottleneck. At first, it seemed trade was inexplicably being throttled midway between the Outer Rim and Core. Our investigative reporters began travelling the Perlimian to determine what the situation was. What we found was a very intriguing situation in the Bormea Sector. Many traders are reporting a spike in stop and searches moving through Brentaal. Many say these searches are taking an unnecessary amount of time and in many situations seem almost purposefully designed to hamper their movement. Many have also reported their freighters being held up in repair facilities after routine maintenance and inspection have led to costly mistakes and repairs outside of their covered service contracts, causing their vessel to remain in system longer than anticipated and costly repairs to be done out of their pocket. There are even reports of Prostitutes and Bartenders offering services at a lower price for traders to entice them to drink and be merry, extending their stay.

It appears many Brentaal merchants are buying up these goods with a few traders overhearing that their goods were being loaded to go to warehouses. This news would suggest that Brentaal is stockpiling goods as well. It seems that this combination of increased security operations, more thorough inspections to prevent smuggling and mechanical issues, and a host of other headaches are causing many of the independent traders or those with loose contracts to preemptively offload their cargo to Brentaal House merchants and head back home. As one frustrated freighter captain put it, "my crew is drunk and force knows where, my inspection time has doubled so as to supposedly crack down on smuggling and Hutt security concerns, and I've got this guy shouting in my ear a price that saves me money if I just go ahead and sell. So that's what I'm doing. Going North would cost me triple by the time I got to the Azure Sector, so it's a no brainer."

Panic buying in the core and the current bottleneck on the Perlimian has led to prices of common supplies in the core rising drastically. This has created an interesting situation where the core economies that are currently stagnant facing major supply issues, while the poorer Rim has stocked shelves. Many traders that are affiliated with core sector governments as well as those in the rim are trying to circumvent Brentaal on the Perlimian, with those coming from the rim using the Vathkree Trade Corridor and those coming from the core using hyperspace lanes to reach the Hydian Way.

When asked for comment, a representative of House Curovao, said: "one would expect in these uncertain times a tightening of security and standards to ensure not just the flow of goods, but the safety of the Core peoples from the smuggling of goods or even dangerous individuals. Unfortunately, many wish to take advantage of the current crisis, and it is the duty of the Merchant Houses, collectively, to take measures to protect the Core and our own people. The unintended side effect of a minority of transporters freely deciding it is in their best interests to sell their goods here, rather than further along their routes, is simply something our agents are taking advantage of, partially to ensure these goods do not languish on Brentaal instead of reaching our Core brethren further along."

 

Note: The supply situation in the core is becoming critical. If actions aren't taken to remedy the situation, core economies will begin suffering greatly within a few months. The Rim too faces the decision of sending more of their resources to the core risking shortages or to begin holding some back for themselves. Those that have already bought up resources will weather the storm for some time without corrective measures, others will suffer if nothing is done.

[Shadows]

Corellia Addresses Components Shortfalls

Today in Coronet City marks a day of growth and the expansion of industry! The ground breaking ceremony for the headquarters of the new Indella Hyperdrive Works was held today, attended by industry leaders from CEC, government officials, and key engineers who have joined the project. The new Indella Hyperdrive Works is a new subsidiary of Corellia Engineering Corporation, which is being at least partially funded by the government.

This new subsidiary is one of Corellia's programs to address the worsening supplies and components shortage afflicting much of the galaxy. Comments from CEC engineer Archibald von Strauss, lead designer for the new subsidiary, were as follows. "With Indella's focus on developing and producing high quality components, hyperdrives, and other subsystems, the Corellian people can be confident in CEC's ability to keep operating. While other governments are busy hording materials, we will be busy making new materials, to address shortages."

Well we here at holonet news hope that Mr. von Strauss' comments are correct. We will find out for sure in approximately six months, when Indella is scheduled to open for its first day of production.

[Shadows]

The Forges are Lit
Epsi Collective founds the Most Honorable Guild of Armorers

The Epsi Collective has been busy this year, scouting their systems for minerals, starting infrastructure investment, and now starting a new Guild. The Most Honorable Guild of Armorers is a new organization being founded on the world of Epsi Nadir, with the goal of producing high quality armor and weapons for the galaxy's soldiers. Given the nature of the Guilds of the Epsi Collective, this new guild has already found itself numerous highly skilled members. This has allowed the Epsi Collective to join the ranks of the Azure Sector, Bormea, Techno Union, and other Republic members in preparing for the conflicts on the horizon by proactively working on components and equipment. 

[Shadows]

The Trade Federation Grows... Again?

News has reached our offices that the Trade Federation has accepted another member into it's rank. The Mon Cala Trade Guild, representing the Calamari Sector, has been accepted as a probationary member into the Trade Federation! This move marks the second time within a year that the Trade Federation has accepted new members. This move has been seen as a boon for the MCTG, one that should they take advantage of it, will prove to be an excellent economic benefit for the sector.

[Shadows]

Bormean Trade League
A solution to a problem they started...

Since the beginning of the year, a new group has been advertising for members to join them. The Boremean Trade League has been attempting to recruit traders who transit the Brentaal system, with low membership dues and offers of inspection waivers. The new Bormean League has seen a consolidation of the varying trade families assets, forming a "trade federation of the core." As a part of this program, the League has begun arming their freighters, they have begun constructing new maintenance and administrative facilities, and have attempted to gain new contracts for carrying cargo across the core worlds.

One thing that has drawn significant backlash from trade groups in the region, is the disparity in the safety/maintenance requirements to become a member of the Bormean Trade League, and the requirements of non-member ships traveling through Brentaal. The requirements to become a member are so incredibly low, that almost any vessel built in the last century will pass them. Meanwhile, the standards for inspections that began at the end of the last year, and have dramatically slowed the speed of trade through the system, are so incredibly high that no vessel passes on their first attempt. While this would normally not be an issue, the fact that Brentaal is honoring the league's inspection waivers is a blatant play at favoritism, where the sector's own trade league is getting tremendous advantage over non-members. Many have outright refused to join the based purely on this fact.

In an obvious attempt to form a monopoly in the Bormea sector, the Brentaal authorities have also expanded their enhanced screening protocols, dramatically slowing the trade of all goods transitting the Bormea Sector, and heading into the core. This has caused a shock to the economy of worlds on the core-side of Brentaal, seeing a decrease of up to 0.05% of their GDP growth since the start of the year. To make matters worse, the Bormea Sector has begun soliciting planets on the Core side of Brentaal to join as "consumer members" of the League. Doing so would see shipments heading towards their worlds have "expedited shipping," and a reduction in duties paid in Brentaal. Economic analysts have chimed in, stating that the fees and mandatory tariff reductions are relatively low and most likely are simply aimed at forming a trade monopoly that would affect the majority of Core citizens.

The results from this attempt at blatant profiteering and monopoly building have backfired on Brentaal, however. The individuals behind this, most likely the Brentaal trade families, have forgotten that bypassing a single system, however costly, is possible. To make matters worse, their attempts are so blatant and transparent, that anyone going through the system that has a sufficient profit margin--something that is growing for many traders, due to Brentaal's own actions--are simply taking the hit to their profit to bypass the system in protest. For others, especially members of the Trade Federation, a long known open secret has allowed them to dramatically increase their business to the Core worlds. For many years, it's been known that the Trade Federation operates a secondary list of trade routes that are known only to them, at least one of these routes seems to entirely bypass Brentaal, as Trade Federation vessels are skipping the system entirely and avoiding this highway robbery. The Trade Federation directorate has reported a staggering 0.15% GDP increase from these moves.

Meanwhile, Brentaal is looking like a failed experiment. Of the traders that used to transit the system daily, the new safety requirements and blatant profiteering has forced many of them to go around, resulting in a 50% decrease in system traffic. To make matters worse, of the 50% who continue to go through the system, only an estimated 20% have signed up for the Trade League--those with too thin of a margin to avoid Brentaal--with the remainder stating that they will not join out of protest. This has seen a dramatic reduction in the GDP of Brentaal, equal to nearly 0.5% of their GDP.

Word has it, that Minister of State Sartha has been recalled by her government, to serve as mediator to deal with the growing issues around Brentaal.

[Shadows]

Azure Sector Invests in the Outer Rim

As some in the Coreworlds are taking flak for continuing to exploit the Outer Rim, or for threatening the economies of the galaxy with transparent monopolies, the government of the Azure Sector is once again seeing praise from rim worlds for a series of investments into their economies. After several private meetings were held between the Azure Sector Senator and Senators for a group of rim sectors, the Azure Sector officially announced a series of regional development funds, aimed at improving the economies of those sectors. 

The Daedalis, Sarla, Vorc, and the group of sectors known as the Commonality all benefited from these regional development funds. Through a series of low cost loans, these sectors are now enjoying access to more funding than they usually have available, and are all pouring money into improving infrastructure and industry. All of these sectors have until recently been experiencing growing issues with recessions, however, they are now showing growths over one percent of their GDP. Of special note, is that unlike previous investments into the Rim, this investment has been tailored to each sector, providing sufficient funds to improve their economies without over inflating it to the point of forming an economic bubble.

[Shadows]

Azure Sector Expands Capacity

The Azure Sector has been a frequent topic in the holonet news for nearly two years now. Many are starting to suspect that whenever something interesting happens, someone from the Azure Sector is responsible.

Our story today revolves around the Sectors process of increasing production capacity. Like many other worlds in the Core, new Shipyards and production facilities are being built at record speed across the Sector. However, the Azure Sector has found another avenue of expansion. Earlier today, the Sector announced that the Shipyards at Botajef and Bendine have been contracted for a period of two years, and will be working under the perview of Azure Industries. Our estimates state that this has nearly doubled the production capacity of the Sector.

When combined with rumors that the Azure Sector has been approaching production companies, offering to pay hefty prices for production licenses, and it would seem like the Azure Sector is aiming to gain a place among the biggest shipwrights in the galaxy.