Declining Value of the L$... My Theory

There’s been a lot of talk about the declining value of the all mighty Linden$. So, I’ve been watching it daily to see what’s going on.
I now have a theory about how and why this is happening.

If you look back over the forum and look over the statistics of the L$ vs US$ you might come up with a connection.

You can blame it on stipends, you can connect it to instructors being paid, you can say that it is the dwell bonus and evil camp chairs… but I have another idea… I think it’s Fear.

From what I’ve noticed, the more people have panicked about the declining value, the more people have flooded the market with L$ and the lower the value has gone.
It’s like the stock market… the value of a stock starts to fall.. so everyone jumps in to SELL SELL SELL before the value drops any further and the flood of those wanting to SELL vs those wanting to BUY just drives the value even lower.

Maybe if those wanting to sell held off and didn't offer as many L$ at once.. and made them less available the rate would go back up.
Like I said.. this is just a theory, but it’s something I’ve been looking at and thinking about.. so I thought I’d share it with you to ponder.

I blame aliens...savage aliens from the savage future.

Oh...and the Masons.

Masons? What do brick buildings have to do with it? Is it all the prims? You don't have to pay to rez prims anymore so I am not sure where this is going. Does a society that lives outdoors have better linden-USD value? Going further, would that make a naked society even more value prone? Off with your clothes everyone! I want to cash in!

Or do you just want us living in houses of straw and sticks??

Can abuse reports be filed if someone blows your house down and eats you? Where would it be filed form? How would the Linden meet you to discuss it?

At my initiation I was taught to be cautious.

I think far more to blame for the declining L$ are two factors:

a) unregulated currency trade;
b) a major "tax" (tier) paid in the currency of a different economy.

These create lot of problems, such as the "L$1 undercut" that's blamed very often.

But there's plenty of others. For example, if the L$ ever started reliably rising in value, anyone would be able to get discounted tier - or even just "free money" - by buying L$ at the start of the month, letting it go up, then selling it for more US$ just before tier day. The number of people doing this would inevitably increase until the tier day sales made the value start dropping again.

Exactly... the buying and selling of currency is actually one of the many things traded daily in the real world. There are people who make a killing on currency exchange. Of course... it is a risky business.

Besides... the flow of currency is not an issue. If people make money of the exchange, that's great for them, and for the rest of us. Moving money = valued money. When people dump loads and loads of cheap currency on the market... you have what we have now.

Currency trading is a good thing. People who scream about the value of the L$ dropping fuel the bad thing that we see now.

I was wondering the same thing.
But that was 17th century I believe.

Being as this is a game. And with a game comes game money.... and the lower the value of the linden the less it costs us women to buy lindens to go SHOPPING!!!!. So I am not entirely seeing an issue with this. Perhaps if those of you who base your financial life off of Second Life maybe you should come to 1st Life and work you lazy bastids.... And on that note... we wait for replys


P.S. I was going somewhere with this but completely brain farted and have lost the will to continue.

P.S.S. mmmmmm Tamales...

P.s.s.s. sounds like piss doesn't it?

lol
Have been for awhile.

*Stays away from thread dealing with topics like this* This should go to the Land and Economy forum.

Its all the illuminati i tells ya!

and no im not a member

and if i were would i tell you

oh wait... you all have to die now!

No!!!!! There's enough of these already in L+E! Stick it in the Sandbox.

I basically think people are being played. Fools in the Land & Economy forum are posting like crazy to either negatively impact the exchange, or positively impact it, all for their own benefit - just like the stock market. This way they can create fear in people when they want the L$ value low, and comfort in people when they want it high. I don't buy it, but many do, and I think it is a big factor in why our L$ is so low.

What I don't understand is how they are being allowed to do this. I mean some people's posts in that forum are ridiculous - you could almost call it spamming. Why hasn't anyone caught onto their scam?

Currency trading in the real world is regulated by the central banks of countries, and it has to be.

Currency trading in the real world means that banks make money by exchanging large blocks of foreign currency with each other. It doesn't mean that, when you want to change your holiday money back to US$, if there are nine people before you in the queue for the foreign exchange desk then by the time it's your turn the rate will have fallen by 9c because everyone undercut the previous person in line.