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Payday and Up Another L$12/million
Jonas Pierterson
Dark Harlequin
Join date: 27 Dec 2005
Posts: 3,660
05-18-2006 10:06
From: UnWorldly Ng
You obviously did not read everything I wrote, because I not once suggested that stipends were a problem.

What I did suggest is that there will eventually be a point where LL would make more money by taking stipends from the lindex by spending the fees you paid them there instead of creating the money. I mean money for nothing in the sense that today we can take our stipends, which we got by *doing nothing*(in comparison with tranactions from other ressies) and sell for more US dollars than would be spent in taking a stipend out of the lindex after the "inflation" ends. So we are at an advantage compared to people who will join the game after LL stops creating money.


I misread you then. :)

Sound slike a go, as long as I get my 500 a week, at least.
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UnWorldly Ng
Registered User
Join date: 2 Mar 2006
Posts: 49
05-18-2006 10:13
And the nice thing about it is that it requires no action whatoever on our part, we just get to sit here and watch the lindens switch the source of the stipends when it suits their interest to do so.
ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
05-18-2006 10:24
From: Cannae Brentano
Reserve,

I like your posts, they are well thought out. However, one thing that can't be ignored is the (hopefully) growing population of active players on SL. If the amount of players is constant, then an increase in the money supply is inflation, pure and simple. But an increase in the active population without an increase in the money supply is just has bad as inflation, especially since LL said their goal was a 10 fold increase in population over the next 4 years.

You probably know all this already, but for the sake of clarity in this thread, I thought I would interject.




Cannae:

Population does play a factor in any money supply debate.
The problem is that LL is using Population as the only metric
to justify needing to ramp up the money supply.

Instead, what they should be doing is using GDP in the game to
determine money supply growth.. Does this make sense?

If I went and created 100,000 new accounts and never used them
again for the rest of my life, how does the increase in population
from 200,000 to 300,000 in the game justify the need for a 33% increase
in the money supply? See what I'm getting at?

Instead, LL should say, "We've seen a rise or fall in overall prices
and have determined the money supply needs to be increased or
decreased." The reason being, is that if new people join and actually
add to the GDP of SL, then yes, the money supply needs to grow
to accommodate the growth. But if new people sign up and don't do
anything in SL by wander around, spend their free stipends, and leave
or never return, then what justification exists for the money supply to
have grown?

Because what you end up with is a non-producting population with
a flood of currency in the market. This is the concept the LL Gurus
and their SL lackys fail to grasp... They are ramping up the money supply
for growth in SL which doesn't materialize in the form of economic growth.
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Kevn Klein
God is Love!
Join date: 5 Nov 2004
Posts: 3,422
05-18-2006 10:33
LL should only sell $L at $L245 per dollar, so LL isn't competing with it's customers in the $L market.
ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
05-18-2006 10:35
From: Kevn Klein
LL should only sell $L at $L245 per dollar, so LL isn't competing with it's customers in the $L market.



What does this serve?
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Zonax Delorean
Registered User
Join date: 5 Jun 2004
Posts: 767
05-18-2006 10:43
From: ReserveBank Division
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..


LOL... I need a new house built in SL. It takes about 30 hours to build.

Please build it for me, RBD, and I will pay L$ 0... or maybe L$ 1 to make you happy.
Yumi Murakami
DoIt!AttachTheEarOfACat!
Join date: 27 Sep 2005
Posts: 6,860
05-18-2006 10:44
From: ReserveBank Division

If I went and created 100,000 new accounts and never used them
again for the rest of my life, how does the increase in population
from 200,000 to 300,000 in the game justify the need for a 33% increase
in the money supply? See what I'm getting at?


If you never used them, they wouldn't recieve any Basic stipend. Even if you Premium subscribed them all (thus potentially paying LL US$1m a month), if you didn't use them they wouldn't be spending those L$.

From: someone
Because what you end up with is a non-producting population with
a flood of currency in the market. This is the concept the LL Gurus
and their SL lackys fail to grasp... They are ramping up the money supply
for growth in SL which doesn't materialize in the form of economic growth.


Although there might be a lot of non-producing users, the users who do produce stuff, tend to produce a lot.
Svar Beckersted
Registered User
Join date: 14 Apr 2006
Posts: 783
05-18-2006 10:46
From: Kevn Klein
LL should only sell $L at $L245 per dollar, so LL isn't competing with it's customers in the $L market.


If LL offered 100,000,000 Lindens at $L245 per dollar who would buy them when the buyer now gets them at $L317 per dollar?
ReserveBank Division
Senior Member
Join date: 16 Jan 2006
Posts: 1,408
05-18-2006 10:49
From: Zonax Delorean
LOL... I need a new house built in SL. It takes about 30 hours to build.

Please build it for me, RBD, and I will pay L$ 0... or maybe L$ 1 to make you happy.




Yes Yes Zonax, there are exceptions to the rule. Retailers who's time has
been put into highly custom and detailed works which are difficult to replicate
(if at all) will most likely be motivated to raise prices. Since competition
against you is few and far between..

My remarks are more geared towards the retailers who's products are for the
most part, manufactured by many others. I mean, how many sex shops selling
love beds are there? Dozens and dozens. Those folks won't be raising prices.
Not to mention their products have little time/effort put into their creation.

If every business in SL sold unique custom items which required "time"
for each item and/or copy thereof, then pricing of widgets would be changing
by the hour as the linden changed in value. since "time" can be equated into
a cost basis....
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