Payday and Up Another L$12/million

Total L$ Supply (L$) 671,987,815


There she blows once again boys and girls. Another week, another
L$12/million linden dollars poured into Second Life. At the current
exchange rate of L$310, it would require nearly US$40,000 of new money
from residents just to eat up this week's supply and keep the exchange
rate at L$310.

And with nothing in SL to invest your Linden Dollars into, guess where
that L$12/milllion will end up? Forsale on LindenX and pushing the
valuation even lower...

All hail Linden Labs for their talented Macro Economic Policy... NOT!!!

RBD, I haven't watched that number very close but thought it jumped from 611 Million on Monday to 660 Million on Tuesday. I did see the jump from Tuesday to Wednesday though.

Why dont you quit? Why do you stay around and lose money?
Have some of this, you will feel better!

I stay, because I can. And there is nothing you can do about it.
If you don't like the Truth, ignore me... That'll be one less person
to oppose the revolution in getting rid of Stipends.

I can't see thoses thousands of 50L$ sell order, where are they ?

Don't be silly.. We are talking Macro Economics, not Micro....
All those L$50 users spend their money in the economy on widgets.
Its the shop owners and other parties up the economic pyramid
who begin pooling those L$50 stipends into much larger stockpiles.
Which they then take and sell on LindenX. When you see postings
of L$500,000 from a few people, you start seeing where the L$50 is
going.

The Long/Short answer is, the Wealthy end up with the money and
they sell it for USDs in huge blocks. So if you expect to see 10,000
people selling at once, you'll be waiting a while.

I call it: Trickle Up Economics. The poor are given free money by the
government. They spend it on widgets. That money ends up in the hands of
retailers and business owners. They in turn sell it in larger blocks for USDs.

The point being that L$12,000,000/million Linden Dollars New Dollars are
now floating around in the economy.. Adding to an economy that is overloaded
with dollars.

I could care less about you staying around. Do not see what you have to gain by writing all of these messages.

If you really want to get rid of stipends, you need to convience Linden Labs to replace it with something of equal value to the premium members or perhaps buying the Lindens themselves instead of "printing" them.

I do agree with you on one thing, the Basic Member stipend must go!

And this hurts me how? Don't give me the old bone about inflation in world because I don't see it and frankly, I think very few creators have the power to raise their prices. Too much competition now!

Now you are singing my song... Making people "Buy" Lindens is better than
printing new dollars every week. At least then, every new linden dollar
(or fraction thereof) is backed by the US Dollar. Because that printed linden
dollar couldn't exist unless a USD bought it. Which isn't too far off from what
Linden Labs is thinking of doing.. The only problem with their madness is
they plan to keep the stipends and sell new dollars.. Only making the problem
worse...

Read My Lips: MONEY SUPPLY INFLATION

This means the number of dollars in the economy is causing the
value of the currency to decline..

Retailers in the game have no incentive to raise prices because they
have no cost basis for the goods they are selling. They created them for
free, so anything over L$1 is pure profit to them.. They don't care...
But the Inflation I'm talking about is the oversupply of currency in
the economy causing more and more dollars to be sold on LindenX
which is having a Supply/Demand effect and bring down the value.


NOTE the Word (or):

In economics, inflation is an increase in the money supply or an increase in prices.
http://en.wikipedia.org/wiki/Inflation

My financial advisors advice for today.

All of a sudden investors are worried about inflation. They seem to have forgotten that our Federal Reserve has been doing an excellent job keeping inflation under control. They also have clearly forgotten the wisdom of Milton Friedman who said, "Inflation is always and everywhere a monetary phenomenon." Inflation isn’t caused by a rise in oil or gasoline prices. The one and only cause of inflation is excess money growth. All the talking heads on TV and on the Internet should look at the monetary numbers before jumping to conclusions about inflation. I urge you to do the same. You can find the monetary data quickly and easily in a monthly publication of the St. Louis Federal Reserve Bank. The publication is called "Monetary Trends." Go to http://www.stls.frb.org for details.

RBD stays in the mad hope that someone will be stupid enough to buy into his BS then he can rake us all over the coals buying L's from him. Again the solution is for SL to make third party sales of L's a banable ofense, set a fixed rate to cash ppl out themselves then set a fixed rate for selling L's at a small profit so they can make some cash. Fixed economic rate, no more lording over it by ppl screaming falsehoods, and hey the upshot is no more problem. Personally I wouldn't buy one L from RBD if he sold them at 1 million per USD. Mainly because I know the real reason behind the falling value is these same pl who are screaming about it falling, driving it down themselves by auctionning L's on e-Bay in large chunks for far below market value. Wanna stop the fall? Stop third party sales. Set a fixed rate. and don't alow these self-appointed "gurus" the right to pull the wool over everyone's eyes.

Actually the real cause of inflation is personal greed by executives voting themselves rasies while shipping good paying jobs overseas to increase thier own profits while screwing the rest of us over.

Actually, the REAL cause of inflation is wealthy executives voting themselves raises while shipping our jobs overseas thereby increasing profits while screwing the rest of us over, AND trying to look as if they operate at a los on paper so that poverty level ppl bear the brunt of the tax burden

and with that 85% of the population that buys L's from money mongers would go thereby removing ANY demand for RBD's L's and would give him yet anotehr thing to scream about. You know, you "get rid of stipend" people all suffer from the misonception that a large majorioty of SL is Premium ppl..it is not. You also suffer from thinking that 50L's the basics get will buy a lot of stuf..it won't. And one more, you seem to think a lot of ppl buy L's from third party sources...they don't. Most of the pl buying L's are speculators hoping they can make a fast profit, then panicking and turning around selling large chunks for low dollar just to get thier money back. Want the real reason for the L falling? manipulation, lies, and ppl buying into the BS RBD is spreading.

Oh, The falling stipend does not bother me in the slighest! I dont own enough lindens to worry about it. I will leave it to them to worry!

Most people should not worry either, if Lindens are not worth anything the big renters like Anshe Chung will be happy to take your money directly from paypal!

Yawn! This is ah so boring!

[sarcasm] Ooo, big numbers bad. Everyone, be afraid! [/sarcasm]

RBD-

You've yet to show how this is anything more than a perception problem.

Or how it, in anyway, poses a serious threat to the success of SecondLife.

Your posts are nothing but empty puff.

Yes, and this is the problem. It will stifle innovation.

Children! Children! Settle down and take it easy!
Day after day, I come to the forums to see the same old gripes and complaints about the falling value of the L$. Do we remember why its falling? No one is making anything new worth buying anymore. its the same old content that everyone already has. if you want to increase the value of the L$, just create better content for people to spend their money on. then they will buy more money from the lindex, and... Oh my god, the demand starts to level out the supply! There is more than enough supply of L$ on the market, we just need to increase demand. So lets get out there and start creating stuff that people want to buy.

Have a great day

Competition usually promotes innovation, not vice versa!

The biggest barrier to innovation in SL is that network effect is so much more significant

I find that selling freebies to newbies is hardly innovative.....

"Another week, another RBD post"

I think the problem that the poster of this thread is refering too is that even if demand increases and people buy Lindens off the market... it just trickles back up to the same people who are selling the lindens for less and less on the LindenX. So even if you creat new and inovative content, the same lindens keep cycling through the system, only there are more and more and more due to stipends, and each time they cycle up the ladder, they are worth less and less and less and less....

I want to see the $L stabilize at a reasonable level. The reduction of dwell payments is just now starting to go into effect and hopefully this will help. An increase in the cost of other payments to LL (upload fees and such) may be necessary. A gradual reduction in the basic membership stipend might also be necessary. Any steps should be gradually implemented, economies don't react well to drastic changes.

Yup.... The voice of reason in a sea of sheep following their
Linden Master into the grave...