Why does the $L value keeps going down??

Honestly, have you ever worked retail?

I didn't see any increase in sales during Christmas or Valentines day either (sarcasm).

Have you ever taken Economics 101? Supply/Demand Theory?
MacroEconomics? MicroEconomics? International Economics?
International Trade? Global Markets? etc? Or did you just work
the register, do inventory, and check timesheets of employees?
Go away Ketra, put me on your ignore list..

RB, may I suggest you go back and look at your textbooks, while doing that crawl back under the bridge you hide under to protect you from sky falling theory.

I have taken the classes you discuss and more. The Linden is a heck of a lot more stable than most currency thru out the real world. In 2 months, it has not moved much. You are screaming over pennies, if the problem is anywhere as big as you scream it is every week then it would be at 400-1 or worse already. So please go back to programming bridges and leave business to those that know about it.

Then as a fellow educated person, Ghost. You should be able to
understand that a decline from about L$250 to L$280 in a 6/month
period a 10-12% decline in valuation. Which would make the Linden
dollar (Very Unstable).

It would mean that everything somebody owned 6 months ago
is now declined in value by 12%. A L$100,000 plot of land is
now worth L$88,000. A very important fact that your educational
knowledge has failed to grasp.

Time to wake up and join the rising masses calling for new
economic policy that strengthens the L$, instead of being the
cause of its decline.

If I don't get what I paid for then the membership is a joke.

Lower the cost of premium if you cut stipends..only the fair way.

Sure that is true, but only if you assume that the rest of the player base is not dealing with it in other ways. Like inflation in pricing of items for sale including land. As people keep saying land prices are rising, well that fits with the idea of people dealing with the value of the Linden changing.

My biggest problem with your arguement is you say the Linden is falling in value, but you never back up the statement to say that there is no inflation of other prices countering the drop in value of Linden. You are using a very basic model, extremely basic as it appears not to account for anything other that value of Linden. RL doesn't work that way, nor does SL.

You assume that land value is not rising in the game at all, yet based on most of the discussion in here and land prices most places I have looked it is rising unless you happen to end up in a location with neighbors that cause sim issues.

So RB until you can prove with raw numbers directly from LL showing that people are not inflating prices in other areas to deal with lower value of Linden, I suggest you lighten your screaming without full proof of the end of the world.

Without knowing
a) the amount of currency taken out of circulation via sinks,
and
b) how many ACTIVE users, both premium and basic there are,

how can we possibly know how much of an impact stipends are making on total money supply?

We can't. That is what I have been saying. Basing info just on the value of the Linden is useless and a very bad modelling choice. The model data is useless as it is too basic.

As an electrical engineer with minor in business, I know a lot about models and limitations of them and you remove and assume too much data you end up with an invalid solution. One of the famous looks great on paper, but doesn't work in real world.

Thats funny you mention Land Prices rising. Since Land does have
an initial intrinsic value, land owners have to raise prices as the L$
declines, else they risk losing money.

Land valuation tracking is a good tool for measuring inflation...
Or should I say, Mudflation...

Man when you're wrong.. you're wrong. Stick to yelling 'market crash' boyo. (Friday's higher volume event that you called a "market crash" appeared to be a higher than average surge of new players.)


--
"Past performance is no guarantee of future results" Though in RBD's case... we can probably expect more of the same.

Jopsy:

Don't be a fool... Let me spell it out for you:


FurryCat buy's 1024m2 for L$5000. At that moment in
time the exchange rate is US$4.00/L$1000 (L$250).
This means FurryCat has paid US$20.00 for his plot.

Roll the clock to present day and FurryCat wants to
sell his 1024m2 and doesn't want to be greedy, he
just wants his initial investment back (US$20.00).
Since now the exchange rate is US$3.57/L$1000 (L$280),
that means FurryCat needs to post his plot of land
forsale with a price tag of L$5,600 to recoup his
US$20.00. Did you notice something Jopsy? The price
increased....

Now that you understand, my original post about how
rising prices in Land is a valid tool for verifing Inflation
in the economy. Be quiet and pay attention...

Although new land continues to be added, there is already
so much land in existance and forsale, that new land
doesn't drastically impact the overall land valutation.
Just as an example, if there are 20,000,000m2 of land
in game and LL adds 200,000m2 this week, that is only
a 2/10ths of a percent increase. Not enough to move the
overall land value as much as Linden Dollar valuation
declines.

This is why 10% down swings in the valuation of the
Linden Dollar have DRASTIC effects on the economy.

I figured it out. RBD's problem is he is holding most of his Lindens in liquid format so everytime the value drops at all he loses money he can't recoup thru selling of Lindens on the exchange. Otherwise, it shouldn't matter to him as inflation is to be expected in most economies as long as it is reasonable and based on size of this one it is very reasonable.

As for land sales, I know for a fact most of the people I know have a set USD that they are willing to spend on the land so inflation really does not change the sales of land.

RBD get over it. This is a game, the fact that there are ways to make it free or make a little to play even when you own a lot of land is just a plus. If you really want to complain go play a game that is run by SOE, like SWG.

Yeah, charge those that want to be creative so you can put all our money in YOUR pocket.. get a life! a real one!

Hahahah.... I will stay right here Ghost so I can check you
at every turn... Plus, don't you remember the old saying?

The people with the greatest minds and the most radical ideas
always have 99% of the people against them. Yet in the end,
their opponents always end up eating crow. Ready for your
serving? My favorite example is John Harrison and his search
to win the prize for finding longitude. He was a clock maker from
the countryside with hardly any education, yet he was busy making
perfect clocks to use time as a way to measure position and
longitude. Whereas the "establishment" which included the
likes of Sir Issac Newton, believed the ONLY acceptable method
was using celestial objects for navigation.

Turns out that dumb clock maker from the countryside showed the
fools at the Royal Society who was da man...

Some reading material for your mind:

http://en.wikipedia.org/wiki/John_Harrison

TAKING AWAY MY STIPEND AND PAYING FOR IT IS NOT IN MY BEST INTREST!

Cant you just accept inflation and "take it like a man"?

So if you consider yourself a person with a great mind and radical ideas.. why are you here annoying those that want to enjoy SL? Why aren't you using your so called great mind elsewhere, like Toon Town?

RBD,
you have yet to prove a great mind. As the first stupid thing I read from you was items built in SL cost nothing to produce. Guess you have never built anything in SL or if you have you only used default textures, takes 10 Linden for every custom texture you load for the first time. Guess your personal time costs you nothing, not sure in your case, it costs in mine. Guess you never had to buy any software to build your widgets, depending on what you do that might cost you 30 USD or a lot more. Guess you never had any overhead running your business in SL, aka land tier, ads, providing service for your products, etc. So those are costs in any business model. So widgets darn well cost to produce and to ignore that fact leads me to believe you might know the basics of econ, but know nothing of the details of running a business in RL or SL.

Biggest problems with the greatest minds is most of them have no common sense, so maybe you are a great mind.

Hahahaha.... Toon Town... You make me laugh Half Pint.
But I am here already... SL is Toon Town..

And I suppose the man who planned to blow up Parliament on his own, when everyone else was agaisnt it was a genius too, I mean look at the shambles we are because of the broken down English government..oh wait.. nevermind

He was like RBD: Wrong

Anybody who plans violence should be hanged.
as for economic reform, they should be praised..

Come join the "pat me on the back" celebrations
scheduled for tonight in Federal. lol

you don't plan economic reform

you plan economic ruin

I hope you get greifed

So that's a no. Interesting.. Because, honestly, if you have ever worked retail, you would know that the seasons have a MASSIVE impact on people's spending habits. And because of that, the sellers change their practices to match. If you really think shopping isn't seasonal, then obviously you have no clue and all your arguments are nul.

As for that list there, I really don't think you have either. You're a tech, not an economist. And yes, I will put you on my ignore list.

Shopping is seasonal, but economic policy is daily.
Stick to what you know, shopping. And leave the
advance economic theory and policy to the big boyz.



If I can snag a blurb from The Breakfast Club..



Just stick to the things you know; shopping, nail polish, your dad's BMW, and your poor rich drunk mother in the Carribean.

"Don't be a fool" right back at you RBD.

There are times when the tail can wag the dog.
This isn't one of those times.

When FurryCat can't SELL his/her land at $5600 to recoupe
their losses because there's so much of a land glut that the
price of land has slipped further... then what?

FurryCat keeps paying land (tier fees of) US$10 a month waiting for the
sale to complete so he can get his US$20 back? That's stupid.
(It happens, I'm sure, but it's still stupid).

More likely, FurryCat drops his sell land price to something
that has a chance to sell and cashes out at whatever rate he can get.

Land availability affects land prices. Because land purchases
and rent are still some of the largest uses for L$'s in game,
that drives the exchange rate.

Glut of available land = cheaper land = fewer lindens being bought for land = lower rates for L$.
When land is scarce, land prices rise, more lindens get bought, the price for L$'s goes up. Simple as that.

You may do business like FurryCat, but few enough people do that it's marginalized.