The SL economy is on the verge of a recession!!!

Actually, what we're really seeing is Devaluation -- the phenomenon in which a currency loses value relative to some benchmark (in this case, USD). AFAIK, in-world prices haven't ben significantly altered -- yet. I expect they will start to creep up in the FX rate continues to decline, leading to inflation.

OMG! 100L... and a FREEBIE?! You must be the true cause of all this inflation!

Indeed! And I did it all to wind Jamie up!

Whateva! I do what I waaaaaaaaaant!

Jamie Bergman WROTE :

01-20-2006, 12:47 AM (2 weeks ago):
-------------------
Its now down to L$275 per $1 USD.

How LOW will it go?!
--------------------------

Speculation.

You don't see his level of knowledge of capitalism as "Legendary"?

Jamie, may I, seriously (I swear), ask what the point of these threads are? Do you *want* the Linden Dollar to fall in value? Is so stop making such a song and dance about it.

If not, why post? People are hardly going to see this and go "OMGSH I MUST stock up on L$!".

You're not exactly getting positive discussion either, mainly due to how often you tell us the sky is falling.

Please do explain.

I would argue that Devaluation is the "effect" of Inflation.

The true value of the $L is roughly $L-Infinity/$US 1.00. Anything more than that is wishful thinking and a temporary blessing.

Sell sell sell! Sell! SELL!

SELL


SELL

SELL

SELL

I think one could argue either way depending on how you choose to define "inflation". Are we defining it as a persistant rise in prices and decrease in the purchasing power of money, or as a general increase in money supply. If the former, than I would argue that inflation is the effect of the currency devaluation, while if the latter, I would agree that the devaluation is a result of inflation.

Either way, the two are tightly linked. Given the distribution of currency holdings, I think that the increased money supply tends to pool in a few accounts, with disposable income for the average avatar not changing appreciably over time.

What is it with the right wingers and the -istic suffix? Socialistic, Communistic, Capitalistic, Fascistic. They mean the same thing as Socialist, Communist, Capitalist, Fascist, right? Do they have different meanings? It's like the Republicans all using the term "Democrat" as an adjective, i.e. a "democrat senator". Democrat is a noun, the adjective is democratic. I guess I shouldn't complain, pretty soon we'll be hearing the wing-nuts using "democratistic."

I still find it funny that the free market capitalist heroine of SL always calls for government intervention to prop up the $L. She either wants more taxes (monetary sinks) or elimination of the stipends. Seems like a reasonable solution, right? Have the government take away other people's money to increase the value of your own. Sounds vaguely socialistic to me!

I wanna know what the 'crisis' level is and what happens.. does like a huge jack in the box jump out at the W.A. and scare the shit outta people?

Will all the sex balls turn phys and lump together on the east coast - forming a 'punani tsunami' that washes the world bare?

Enquiring minds wanna know!

I care because??????????????

No, LL needs to eliminate the free lunch that it is giving out. Why not eliminate ALL stipends, as this is merely welfare. A strong society needs no welfare, as the market will self-correct. We need to get back towards a purer free market in SL and end SL socialism once and for all!!

Why is it serious? I hope the Cost of the Linden gets lower, maybe 300 lindens =50 U.S. Cents ?????

I hope it goes lower than that - just to see who's head explodes first!

How does 1000 L$ = 1 penny sound?

LOL I can hear the banshees wailing already!

The Stipend is NOT WELFARE!!!!!

You need to drop the Conservative Work Ethic and realize that not everyone can build, or design or sell things.

This would be nice. I could become a billionare hehehe

Siggy, I will try to let you know, When I find this so-called Crisis. So far I havn't found it.

Yes, and those people can use RL money to by L$. That is the power of the free market, my friend.

Well when the Linden hits 100,000 per 1 U.S. Penny I will aggree with you. BUt until then, keep your Conservative Work Ethic to yourself.

Jamie, I use RL money to pay for my premium membership.

I also contribute a reasonable amount of RL money each month for tier for my land to the same people that pay me the stipend.

How is it that my stipend is welfare, then? I really don't understand this constant harping about 'welfare' in the case of people who pay for their stipend. I pay into the system much more than I receive. My definition of welfare would be to receive money I haven't earned/paid for in some way.

Sweeeeeeeeet

I always wanted to live in a post-appocalyptic second life.

Oh... My.... God...

Someone whack Jamie with a brick in a carrier bag for me?

I'll rent you the brick for only L$100,000/hour. Yes, I know that sounds expensive but what with the hyper-inflation and looming recession and all....