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Welcome to the Galactic News Service
Nova Crystals Crash and Burn
Posted by: Virak Kira, Dukha Incorporated
Date: Year 19 Day 218 Onboard the Shipyard IV Vurk Pride Galaxy Wide in system Ord Trasi (-4, 328).

By Baz Yen

Yen Compound city, Urce IV, Urce Sector

 

Nova Crystals continue depreciating, selling recently for less than half the official exchange rate. The price has been spiraling downward since The Krath government collapsed 6 months ago.

On Year 19 Day 48, the market was bewildered to learn The Krath renamed itself Not Krath. Shortly afterwards, The Krath government dissolved and abandoned the technology for creating Nova Crystals. Remnants of The Krath are involved in manufacturing enterprises. But The Krath no longer sell Nova Crystals on major markets.

One head of state criticized Krath monetary policy. Simkin Dragoneel, king of The Faerytail Family, remarked: "Now instead of actually making Nova Crystals for hardly any cost, they just issue Electronic Nova Crystals, or whatever they wish to call Nova Crystals that don't actually exist."

Traders are skeptical of the official exchange rate of 200,315 credits per Nova Crystal. That rate has remained frozen for the past 16 months, oblivious to economic and political developments. Traders have factored in risk, repricing Nova Crystals to an average exchange rate of 187,300 credits.

 

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Nova Crystals have been plunging since the collapse of The Krath government

Recent trades have been well below that market average. The most recent sale of standard Nova Crystals on Centrepoint Marketplace was for a mere 100,000 credits. On the Trade Federation's Market, traders have completely shunned The Krath's currency. Transactions denominated in Nova Crystals are increasingly rare, demonstrating the failure of the currency.

The market formerly regarded Nova Crystals as a minor but viable financial instrument. The currency originally aimed to mirror The Krath economy. The expectation was that economic growth in Krath planets would lead to currency appreciation. Indeed, ten years after its introduction, its value gradually has increased substantially.

But a devaluation damaged public confidence. Monthly fluctuations were once normal. However, in Year 14 The Krath devalued Nova Crystals by 82%, from 279,951 to 50,000 CR/NC. This devaluation was The Krath's reaction, or possibly overreaction, to declining tax revenue. Some considered this policy a bankruptcy reorganization, others called it a scam.

Now Nova Crystals are officially 14% below their peak of 5 and a half years ago. The unchanging exchange rate of the past 16 consecutive months aggravates the wariness of the market. Critics suspect that either Krath planets are economically stagnant, or there is currency manipulation.

King Simkin of The Faerytail Family disputes the legitimacy of Nova Crystals: "Nova Crystals haven't been sound since they dropped the price of them down to 50,000 each after cashing in all their friends' and allies' Crystals for the premium amount right before the drop. Their phony currency is nothing more than a governmental Ponzi scheme that was used to extort credits off the ignorant in order to benefit themselves."

This reporter requested comments from several Krath officials. The officials responded to decline comment.

The credibility of Nova Crystals is waning. Still, The Krath may deploy a plunge protection team in an attempt to boost its currency. But market sentiment toward Nova Crystals appears long-term bearish.

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Disclosure:

This reporter owns a significant amount of Nova Crystals.

________________________________

For archived GNS broadcasts on Nova Crystals check out the following:

Economic Downturn: Nova Crystal Update

New Currency Announced


[Main Page]
Events in Brief
Year 20 Day 322: It seems today that while Golan Arms may be successful when it comes to production, they are less than apt when it comes to governing a planet, and the citizens of Vahaba Asteroid Belt 11 have finally come to realise this and have seized control intent on turning it over to a planetary body within several days.
Year 20 Day 321: Ailon Guard was dissolved today due to bankruptcy.
Year 20 Day 321: Nivek Notnelc, the leader of Oshora Pharmacology was replaced today by Calex van-der Plas.
Year 20 Day 321: Galactic business registrars recorded the opening of a new company today. Ailon Nova Guard specializes in Manufacturing and will be led by Mike Lackey. The first headquarters of Ailon Nova Guard opened today in Durrokhar 0,0 on Durrokhar.
Year 20 Day 321: Mike Lackey, the leader of Ailon Guard was replaced today by David Pryde.
Year 20 Day 321: David Pryde, the leader of Ailon Guard was replaced today by Mike Lackey.
Year 20 Day 321: Mike Lackey, the leader of Ailon Guard was replaced today by David Pryde.
Year 20 Day 321: Ailon Nova Guard has been renamed to Ailon Guard. The press is still waiting for comments on the change.
Year 20 Day 320: The ease with which Golan Arms had visibly improved the economy of Homon has made it increasingly obvious to Homon's citizens that Golan Arms would make more than sufficient leadership, and have called together a council, intended to hand over authority to Golan Arms.
Year 20 Day 320: It seems today that while Golan Arms may be successful when it comes to production, they are less than apt when it comes to governing a planet, and the citizens of Homon have finally come to realise this and have seized control intent on turning it over to a planetary body within several days.
Year 20 Day 320: Qo Odojinya was dissolved today due to inactivity.
Year 20 Day 320: Gadzooks! Scouts have discovered the system Jedha at location (-125, -195).
Year 20 Day 320: Alleria Liadrin, the leader of Viraxo was replaced today by Jiwoo Mieds.
Year 20 Day 320: Hrussk Hskar, the leader of Blackskull Trading was replaced today by Hondo Walker.
Year 20 Day 320: The population of Ruuria Asteroid Ring III, largely disenfranchised from their planetary rulers sponsored by the despised The Initiative, have announced today that they are transferring the bulk of power to Minerax Consulting instead, in hopes of stimulating their economy through their mining operations.
Year 20 Day 320: Kohl Straffer, the leader of Vax Mining Group was replaced today by Ares Vrand.
Year 20 Day 320: Ares Vrand, the leader of Vax Mining Group was replaced today by Kohl Straffer.
Year 20 Day 320: Due to the increasing prosperity of Golan Arms's autonomous production centres on Vahaba Asteroid Belt 11, and subsequently the settlements constructed to house workers there, the overall economy under The Krath, has substantially weakened, while Golan Arms has prospered and convinced the locals to elect them to the new ruling position.
Year 20 Day 319: Solarius Masha, the leader of Lethe Merchandising was replaced today by Teth`ren Soulbourne.