The L$ is currently worth...

... about half as much as the Japanese Yen, or four times as much as the South Korean Won. Huh, how about that?

Gee, really? You know, that really puts things in perspective

...less. how's that for persepective?

Read my Value, Money, and Markets article, and you will see where I point out that the L$ is worth exactly whatever you think it is worth.

- Ace

Nothing is worthless if any single person wishes to pay/trade for it.

but as Ace said...

and i think it's worthless. checkmate!

wait, you think it's worth something. call it a draw?

The same is true with the USD, British Pound Sterling, The Euro, Yen, etc... None of these currencies have value. Its only value is what your willing to pay for it and then use it for your own enjoyment.

Bzzt.

Those currencies are backed by an amount of gold. The currency acts as a token from the treasury of the government concerned for X amount of gold.

Bzzt

I don't know about the other currencies, but the USD has been off the gold standard for decades now.

- Ace

I would also like to point out that gold's only value is what you're willing to pay for it, et caetera.

Just a touch fast on that buzzer there Adam.

I present for your reading enjoyment:
http://en.wikipedia.org/wiki/Gold_standard

With regards,
Antagonistic Protagonist

Bzzzt... None of those currencies are backed by Gold. Any modern nation does not backup its currency with Gold, because the price of gold dictates the value of your economy.

Lets say the US was still backed up by Gold. Then somebody discovered the largest freek'n Gold Mine in some corner of the world. The flood of Gold on the market would send Gold Prices into a tailspin and drag the US Economy down with it. We've been off the gold standard for decades. The only value the Pound, Greenback, Euro, etc have is the faith its citizens place in it. Its truely worthless..

Yeah, totally worthless. You don't need any of it. Send it all to me and I'll dispose of it for you....








Well it was worth a try

LOL... U can have the Greenbacks and Euros, I'll keep the Pound Sterling in my pocket. At US$1.85 (http://finance.yahoo.com/q?s=GBPUSD=X) its got some value.. But that value is how much we value the paper its printed on as a form of trading between parties.

LOL
Best laugh i've had all day

As others have pointed out, the US dollar is not backed by gold or any other tangible commodity. It is backed solely by the public's faith in the dollar itself. It has worth only because people are willing to accept it in exchange for goods and services.

However, even if it were backed by gold, that wouldn't change the fact that its worth, as Ace put it, is determined by whatever people think it's worth. Adding gold into the mix would only serve to add an extra step in the process. The gold, like all thuings, would simply be worth whatever people think it's worth and the currency would be worth whatever people think it's worth in relation to the gold. There's nothing inherently special about gold that makes it valuable. It just happens to be an item that a lot of people feel is worth having, (which by the way is something that could cease at any time). That's all.

The bottom line is belief. Most people believe money has value so therefor it does, at least to them. There are plenty of people across the world though who don't believe that, and for them money is entirely worthless. If you don't get that, try this: stick a wad of cash in your pocket, jump out of a plane somewhere over the Amazon, make first contact with an isolated aboriginal tribe, and see how far all those pictures of dead presidents get you when you want to buy dinner. I'm fairly certain the chief of the tribe is not going to say, "Whoa, dude, you're rich! You simply must visit our new shopping hut. Remember to spend, spend spend!" If anything, he'll say "Ooh, this guy brings his own kindling. I bet that stuff burns great."

Wee haw... Chosen gets "it"!!!

Another thing you might do that will illustrate how the value of any currency is a personal perception is try to offer either L$ or Japanese Yen (assuming you're not in Tokyo) the next time you need groceries.

- Ace

... or try to use gold bars to buy yourself a Pixel Dolls outfit.

I'm sure Nephaline wouldn't mind the gold, but it ain't gonna work.

- Ace

Snickers at Ace

I would like to clarify this statement, as it is often used in a misleading way.

While belief plays a part in the value of fiat money, it is not the primary reason fiat money has any value. The real reason the dollar has value is a single sentence printed on every note: ‘This note is legal tender for all debts, public and private.'

What this means is, if I owe you, I can repay you with that note. If you refuse to accept the money, let us say because you in fact don't believe it has any value (lack of belief), that is too bad, the government says that I in fact paid you back, and therefore no longer owe you.

Where belief comes into play is the populace belief in the government. If the government is not trust worthy, is rife with corruption, etc… and most specifically the legal system is not trusted; that will undermine the value of a currency. This also addresses the statement that natives in Brazil are likely not going to accept your currency: you are now operating under a different government and legal system; One in which the legal phrase ‘This note is legal tender for all debts, public and private.’ holds no sway.

I hope that clears things up.

I'd just toss out there that lots of african bushmen are aware of the value of the US dollar. They trade too, you know. And in any case, we should remember that 25 million US had enough value for Hussein's sons to get sold out by relatives.

And the british pound is not (and it not intended to be) equivelent to the US dollar. A pound will always (or at least britain hopes) cost more than a dollar, because it represents more money (a pound is actually supposed to be 2 or 3 dollars, I think. That would make that $1.83 to the pound look not as good. But don't quote me).

It is very fashionable to bash all things America these days, but we do have the largest economy in the world. If you are looking for a currency that will maintain its value over time, the greenback is where it's at.

the L$ continues to fall the market is not righting its self. There are many posts on the subject as to why. The fact remains the same the L$ continues to fall.

current price 3.93 per block of 1k Lindens.

yikes!

If you can wait to sell your lindens I strongly suggest you do.

If you look at the intraday chart, you'll see that the L$ is trading on the high side at US$4.07 per block, and on the low side at L$3.93 per block. Hardly a cause for panic, and maybe even a cause for celebration by those trading the spread.

Actually a larger spread is a cause for greater monitoring of the situation as it generally means we're in a moving market.

Has anyone noticed a large drop in dwell payments?

Walkerman Horus
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