Caldari Economy Stymied By Uncertainty

New Eden News | YC110-12-03

Jita - With close to six months since Tibus Heth and the Caldari Provincial Directorate consolidated power in the State, many investors have begun voicing skepticism about the long-term future of the Caldari economy. The latest news to underline their concerns was yesterday's announcement by the CBD corporation that it would be posting a loss for the third straight quarter -- news which sent their stocks tumbling late in the day.

"The question remains: are the fundamentals of the Caldari economy strong enough to support a long-term resurgence, or have the last few months of gains merely been puffed-up patriotism in the wake of the invasion of Caldari Prime?" asked Shiomiken Savalenta, host of Games of State and a frequent critic of the Heth regime. While her remarks were widely considered excessively vehement, many economists and brokers have said she sums up the general feeling about the State at the moment.

"The shake-up of the CEP and Heth's rise to prominence exposed many of the Caldari State's worst flaws," says University of Caille economics professor Faye Nicolette. "While the Directorate has forced many of the worst excesses to be reined in, many investors -- including large Caldari financial institutions -- are being extremely tight with credit, causing a crunch that is felt at nearly every level."

It isn't just pure skepticism that is making investors wary of the Caldari markets, however. Supply chains for many Caldari corporations, honed for efficiency prior to the war, are now suffering as resources are diverted or intercepted, putting strain on already tight inventories. Many also point to the latest round of corporate bloodletting as a sign that Heth and his supporters have a long way to go before the corporate culture will truly change. "Survival of the fittest has merit," said former corporate raider and Hyasyoda board member Leevi Warimorri, "but bleeding ourselves to death so the rest of the cluster can feast on our carcass is folly."

So far neither the CEP nor the Caldari Provincial Directorate have proposed any new initiatives targeted at combating the market's growing sense of worry, but as the year nears its end, they are widely expected to make a statement soon.