L$717,618,852 And Growing

This thread gets funnier each time it gets posted.

Someone please make a dead cat that bounces, in game. With tiny green L$ poofers rising each time it hits the floor.

make it a freebie, of course ;>

The market had seeked and will continue to seek its optimum level, maybe it's not the magical 250 that LL had announced.

We have gone through it many times, the balance between in net increase of money supply verse economical growth ( GDP or rather in SL's case total $L exchanged hands).

The debate seems to be, RBD wants to control the supply side, while LL would want to encourage the demand side (no free money to new basics, and easier registration).

Advantage of RBD approach, supply side control in theory is easier to control, LL can change stipend policy. However the problem is: majority of the stipend are generated through premium memnbership. Who in pay RL dollars to get their stipend, taking that away will no doubt cause significant lashbacks. Compensation alternative such as increased land tier would however would means reduce revenue for LL from the monthly tier. Also, even if everything works out the economical growth will be slowed/ less responsive to market demand as it would require LL constantly adjusting money supply.
As for currency supply control base on user base/ demand, it is already in place: based on the number of active premium accounts. Maybe it's not the way RBD wanted, but it is there.

With LL's encourage demand approach, growth is encourage. However the market become more volitile. Variation on the market depends largely on how happy the SL residents are, uncertainties, fear mongering can often send the $L into different directions very quickly. Who is right who is wrong? That's remain to be seen.

However from an alignmnet of goal point of view, LL's approach is actually very good. IT aligns what matter to the customer the most, entertainment, with the way the economy goes. Overly restrictive control over money supply discourage spending, limit growth.

$L has been relatively stable ~330 for the last couple weeks. Still to early to tell if we've reach the point of stability, but certainly better sign than the 6 months before.

With Supply Side Policy, you always have the option to print new money
if the economy becomes too hot. The ability to better control volitility and
stabilize L$ valuations is a much better selling point.


With Demand Side Policy, the market is flooded with dollars and you require
thousands of people to all consume at the same rate consistantly. If for any
reason that demand slips, the economy collapses, and LL is helpless to
unprint the money it flooded the market with. It has to ride out the bad times
and "hope" the economy finds a balance. All the while, people are screaming
because Inflation is eating at any investment, widget , or L$ Cash, valuation.
If you are a Rental Property Owner, Inflation is your worst enemy. Stable
valuations allow you to price out contracts beyond days/weeks.

I think we agree that $L need to stablize to benefit both consumers and providers. It's just the method we disagree on.

LL also has options on the demand side as well:
Increase sink: Imposing fines for AR, price increase on classified, etc.
Biggest one of all is LL can now trade on LindeX; if $L weaken too much they could buy excess $L off the market and destroy them. In fact, LL could be doing it right now.

It's a big "IF" whether LL would would do that, Money out of their pocket. On the other hand, the pure supply side control has the high risk of losing Premium customers if their stipends were cut, or having to deal with additional loss of revenue of having to give out extra tiers to compensate for stipend cut.

It remains to be seen if the current level would hold, stable for a couple weeks now. However, without demand, it doesn't matter how well the money supply is controlled, SL will collaspe.

The way transactions is handled, the potential of linking RL needs to SL is still very risky. Even if LL wouldn't admit it, at this time, SL economy depends completely on the entertainment value of the consumer at the end of the SL value chain. If there is only content providers, land barons and money traders in SL, SL will fail.

Check my sig...

*rolls eyes*

Here we go again. lol

I got a better idea for you..you should sell now, pack up your scare tactics to attain market manipulation, and find a new chat. Nice try again Jamie...I mean RBD.

Nice try Jamie..I mean RBD. You aren't gona be happy til account holders are totally dependent on you and other day traders for any income. You'd love it if they could only get L's from you, could not earn L's anywhere, and only bought crappy freebies from your alt in world. You say you're gonna sell. I got a better idea for you. Pack up your earnings, and your market manipulation tactics, and your alts and find a chat where ppl are truly blind to your methods and prevarication.

Are you serious?? Are they one and the same?? Ooooh, that would be priceless!

hahahaha

Jamie and RBD will be in for a rude awakening when the Linden strenghtens to around 300 to 1 soon with no explanation for it except that its a dead cat bounce. It's been one month in this range of 336 to 226 and I would call that stablized. Looks like LL is doing things ok for now. I for one would not want to try to balance an economy like this. Take away stipends, lose customers. Not fix the economy, lose customers.

I like you... I think we need to get married..

You make me laugh... You seem like the type who thinks Oil Companies
are begin the rise in gasoline prices... Hahahah

Guess you forgot about that month or so when the L$ hovered
around L$275 and would move L$5 +/-? Then without warning,
its was L$280, L$290, L$300, L$310, L$320, L$330... Now its a
pause once again for a brief period of time.. Soon, we will hit
L$350 - L$400...

Those who ignore history are destin to repeat it...

Take a close look RBD, its strengthening slowly the past month. LOL. Here's what's going to happen, 335 (few weeks ago), 330 (last week), 325, 315, 305, 300 by September.

Can anyone market sell L$ 2457503? I have a buy order stuck at 344 for the past 2 days now... ^^

I've joined you at L$344/1 Mad but you will have to wait until late Sunday night or early Monday morning for the rate to get back up there.

Total L$ Supply (L$) 725,126,108


Add another L$7.5/million to the pot of glut...

Either start posting your figures in $L per capita or stop spamming.

*eek* help us RBD... you're our only hope.

*bzzt*-static.(message repeats)

By my calculations we've gone from 5900 to 4900 L$ per capita (last 60 days logged in users).

That's pretty impressive. I wonder if LL has started selling L$ yet, if not, we should see some price pressure on the L$ fairly soon.

Looking at the numbers between May and June there is a difference of 42.4% less additional L$ added in the same time period normalizing May to a 4 week month. That is a huge decrease, I expext to see the L$ slowly gain strength over the coming months. The difference in stipends alone was 27.5% less and we will top 300,000 residents tomorrow. Also the peak residents ingame topped 8,000 for the first time in history on Tuesday. Today it was 7,959.

RBD doesn't know math at all, forgets to add number of users to equation.

But that would mean his point is pointless, he HAD to leave the number out.

While I'm not usually one to argue RBD's side of the equasion....

I wouldn't assume that the surge in population numbers means a surge in L$ minting... or in Lindex usage, or both. Alts and credit-cardless users aren't going to boost the demand for L$ much, if at all.

Of course, if there's that much more L$ in float... and a diminishing percentage of the population is getting it, that makes the 'haves' that much richer, in comparison. No?