Is a declining currency really a problem?

So far, my net income in USD has not changed. I find that people are simply buying more at cheaper prices.

Is anyone else (other than say landlords who have to raise their prices) finding a declining currency really a problem?

I do.

Your logic being?

Declining net income is a problem, but I'm not seeing that..

As long as the exchange rate is stable, I dont think the actual rate matters.

You know Blaze, for the first time it occurs to me that perhaps you might be naughty after all. Haven't we just been through all this in about three different threads, with you posting almost exactly the same words in at least one location, and getting long and elaborate replies ?

Perhaps you plant your little seeds, and never come back to see what they might have grown into ? At least I keep rushing round checking on mine, giving a little tweak here and there, or a sprinkle of water.

And there's /130/79/60623/1.html, in full flow on the very same topic, right here, right now....

As I say - naughtiness is definitely now under consideration.

Oh, I'm very naughty. No doubt about that.

My point is different, however, from those threads:

As a content producer, a declining L$ does not impact me (or at least, hasn't impacted me).

As a content purchaser, a decling L$ does not impact me.

As a content producer I have no problem continuing to produce content. I feel no concern at all as the L$ drops, except a mild curiosity.

Land barons, yes, they are impacted. Mostly, however, because prices are hard to change. Not because the L$ is dropping.

I guess there is a bit of a problem in that people do not want to hold L$ currency and this could push the L$ down further. Ok.. still, not a problem. Eventually, however, the L$ is going to drop to a point where people can't be bothered to trade it in. At that point, it'll stop dropping and everyone will get the stability they're wishing for.

And the problem for land barons really is only that you can't automatically reprice land.

They are getting screwed, yes.

My income is not rising, it is stable, therefor the lower exchange rate hurts me.

I can only speak for myself, but suspect others do the same. I list the prices in US$. The rent can be paid in L$, but the amount is based on the value of the L$ at time of payment. So I am not losing financially, but its a pain in the arse calculating all the time lol.

Heh well.. you don't have land set for sale.

Blaze, if having the price cut by a factor of x increases your sales by the same factor x, to compensate, this is a total fluke.

It is an accident. It cannot be relied upon. It is not happening to other people. There is no principle of economics which makes it happen to anyone.

It cannot form the foundation stone of an argument relating to the economic effect of exchange rate changes on anyone but Blaze Spinnaker.

That was to have been my reply. But then I saw this :

And I wondered. Are you, in fact adjusting your own prices all the time to compensate whenever the rate changes, Blaze ? Because that would be an entirely different kettle of fish, and a hitherto hidden element in your argument. Which suggests you should surely then be revealing to all the nature of this successful anti-inflation strategy, and advising others on how to emulate you.

Make sense ? Its one or the other, isn't it ?

Well, you could be right, but I think there is a certain degree of pricing elasticity to my products.

lol. That is why I make more money as a "Land Baron" when the $L changes value? A changing $L means a changing value of land. If land is underpriced by the change in the value of $L, then I have plenty of land to buy cheap and sell for more within a week. If land is overpriced by the change in the value of $L then I find it easy to make sales before people learn to lower their prices. When they do learn I suddenly can replenish my land supply for less money than I made off my sales the week before. Either way a changing $L seems to make land sales have more of a profit for those who trade it. It is alright though, you can continue thinking that a changing market hurts traders of any type of commodity if you like.