L$717,618,852 And Growing

Where did that go??? Now its 303.

With 130 posts, it tells me you haven't been around long enough to have seen the L$ fall from a high of L$175 to L$330.. This bounce of 10-20pts is peanuts and will be short lived.

Since when does someone have to be around during an event to talk about it?

You weren't there for WWI (or WWII, I'm betting) either.

Damn straight.. Because the factor of rising prices that everybody seems to be looking for will never appear because of the fact that widget makers have zero cost of production. As such, there is no financial incentive to raise the numerical value of their products. With blindly allows folks to believe there is no inflation. Yet the arguments folks are making about the minor historical rise in the last few weeks of the L$ doesn't hold water. As long as the money supply grows without the demand to support the increase, the net result will be a devaluation of the currency. With more sellers of L$ than Buyers with US$. Case and point, the decline from Aug/Sept of L$175 to the Present L$315-L$330. I'd love for you to explain how the L$ can decline so much in value over 2+/yrs? Other than the fact that too many linden dollars are chasing too few products. AKA: Glut of Currency in Circulation.

I'm just pointing out that your excitement over a 10-20pt bounce in the Linden Dollar ignores the history of its fall from L$175 to L$330. Overall the long haul, this bounce is just that, a short term rally in a long term decline.. As such, you shouldn't talk if you don't have the facts.. And I do apologize, I typo'd my World War with (II) instead of (I).. Making note of the hyperinflation germany experienced with was made worse by the government's increased printing of paper money. Thus the argument for Money Supply Inflation. Which is always overlooked.

Your join date of Jan 2006 tells me that you haven't been around long enough to see the L$ fall from a high of L$175 to L$330 either...

Now, do you want to try dealing with the facts as they are, or continue this pissing contest about if we know the history of the L$?



:edit: And don't forget, the details of that drop, the system that was in use is NOT the system or details now effecting the Lindex... thus, any attempt to use the past performance to predict the future performance is flawed and will give false results.

In other words, you know squat about what will happen... you're just guessing.

This isn't short term RBD. Things stablized over a month ago and finally have strengthened. 10-20 pt bounce is a lie!! It was 335 now its 302, possible 300 by tonight. That in my book is a 35 point climb. When it was 175, that was short lived according to one graph I saw and no I didn't need to be here on SL, I just looked at a graph I saw.

Oh and by the way remember I said 300 by fall?

You can shake your finger all you want and point to a short term bounce. Lets see what happens over the long term when the current US$ inflows dry up and the currency in circulation continues to grow by L$30-L$50/million per month. If somebody doesn't continue buying up the newly printed L$, supply and demand will push the price right back down. Something you are forgetting when it comes to the fundamentals of this economy.

Think about it. For every L$1000/block LL prints, somebody has to exchange (at some point) the current exchange rate value in US Dollars for it. Otherwise, its existance will add to a downward pressure on the L$'s value. And there is nothing in SL today that is driving the demand for widgets/services denominated in L$ dollars. As such, this hiccup will be short lived. And don't you worry, I'll be cooking crow that morning for you to eat as you try to explain the bubble burst and the continued decline of the L$.

I've just realised something... you're trying to use the internal market inflation of one country that was still paying the reparations from WWI to the EXTERNAL money exchange rate of a virtual world...

This isn't just comparing apples and oranges... this is comparing apples to moon dust.

NewsFlash to Tiger: Some people have more than 1 account. Imagine that... Perception isn't always what it appears to be...

And I'm not guessing, I have L$ History to back me up.. All you have is a 2/wk bounce. Not a strong leg to stand on my brother..

Heheheh I wouldn't put any merit in your predictions.. I could swear it was you calling for a rise from L$275 to L$250 back in Feb/March.. And look what happen, it dropped to L$330. Right in line with my historical evidence of the continued decline of the L$ with brief short term rallys that cannot be sustained.

Why are you so upset today RBD. Could it be that you continue to be wrong?

No silly wabbit.. Its pointing out that printing new money without the demand for that currency to support it, causes a fundamental decline in the value of a currency. A concept that just went over your head..

Yes but the prediction of 300 has been almost correct. Just a couple more points. So I wouldn't say I didn't know what I wasn't talking about. I would like to see the post where I said it would go from 275 to 250. There was none. I said it could strenthen, but no 250.

Oh and yes once it hits 300, I think we'll see the strengthening stop for a while. Then you can say that things are falling apart because of the "over printing"

Quite a bounce this dead cat has.

Newsflash to RBD: Some people have more than one account...

Now, start by telling me what makes you think this is A: my only account and B: that it's also my first account.


And guess what... you're using a history of a system that is no longer in use. You no longer HAVE a leg to stand on.

On the other hand, we've got the history of the new system which shows stable/strengthening value... nice strong legs, huh?


And while I'm at it... note to Jamie Bergman... I'm STILL waiting for that hardcore drop that was promised over 2 weeks ago.

You or one of your groupies.. You all look the same to me... hahaah
So lets assume your L$300 prediction comes true. Where is the L$ going after that? Higher or Lower? Where will the L$ be by Dec 31st, 2006? What demand can you cite that is going to cause the massive influx of US Dollars to buy up enough L$ to push up its valuation?

You're assuming there is no demand... Id say the lower amounts being printed while the numbers of people wanting it increases gives us just that demand.

Again, the system has changed and you are making predictions based on the OLD system... Come join the present and stop wallowing in the past.

Where is it going? Who really cares. As long as it goes from 330 to 270 and anywhere inbetween.

Hahahaah.. You hypesters sure are funny.. You proclaim happy, happy, joy, joy off a few weeks of a rise. With zero supporting evidence of how these risen levels will be sustained. Care to explain to Jamie, myself, and the others of how the L$ will continue to rise O Wise TigerSpan?

I must say that I am bit dissapointed. You did not provide a new definition...nor did you accept that a state of Inflation, according to your provided defintion, does NOT EXIST.

At least, not directly anyway.


Rather, you have said that in world producers of widgets have failed to raise prices, as there is zero cost of production. You then alledge that this results in the removal of economic incentive for the raising of prices.

So, for now....We will go ahead and take note that you are ceding the point that one of the two elements required by your definition for the presense of INFLATION does not exist.

Based on the reason that you have provided regarding the lack of financial incentive for widget makers to increase prices....It would also seem that it is your belief that the second requisite element for the presense of INFLATION....will NEVER exist in world.

So that even you are agreeing here (without actually having stated it) that, according to your defintion, "inflation" does not currently exist in Second Life.

Therefore, it might be helpful for us to come up with a term that more clearly describes the condition you are trying to communicate to others. INFLATION, does NOT seem to be appropriate, and it seems that you agree with that.

One step at a time.

Exactlly, because somewhere along the line it will run out of steam, and turn right back around and begin falling again. Because the inflows of USDs can't support the increased valuation based on zero fundamental economic reasons. And one of them is detailing where the demand for L$ is coming from to justify its rise. Otherwise, its a short term blip that cannot be supported. (aka: Dead Cat Bounce).

More residents! Less dwell and no basic stipends to new residents.

Get over this dead cat bounce thing. The only bounce this thing had was for the buyers when it went over 330. That was short-term, not this rise.

*sigh*

Lower amounts being printed while the numbers of people demanding those amounts equals increased demand. The only way that increaded demand will slow or stop is if the numbers of people coming into SL slows or stops.
As that has never happened....


I'm sure you can finish that logic yourself... can't you?