ZOMG! Buyyyyyyy!!!

You can blast me all you like and tell me how wrong I am, but at the end of the day, the L$'s average valuation speaks for me (L$310.9679).... And if that average isn't going up, it only confirms everything I've been saying, the Linden Dollar is going down. And there is no better way to prove me wrong than to show a sustained upward trend spread over many months.

Will there be price spikes that run up the value? Sure, no doubt about it. But they will also retreat from that run just as fast. And with a sustained tread of the L$ going down, there is zero indictation that trend is changing. And the fall from L$297 to L$310 over the last week or two only proves the point.

We can argue over the Cause and the Cure. But as of today, the status-quo isn't working. and whatever is "planned" for the future isn't implemented, so it doesn't apply. And even once it is implement, nobody can know how it will effect the market. Only time will tell.. So anybody who is concerned about the value of their Linden Dollar knows its best to error on the safe side and sell for USDs and wait for the dust to settle...

So much panic, so much hype, all over nothing... it's only a game after all.

Lewis

A game with Real Dollars at stake.

One of you Linden Dollar Hypsters better starting buying up the L$, because your baby is falling. Or should I say, heading back to normal.

Today's average: L$311.3572

Not my hard earned money. I could care less one way or another

The is an interesting article that just came out today. The author is talking about how Gold is a safe haven against Inflation. But it also talks about how the Federal Reserve is having to print more money (akin to LL) and how that increase of money in circulation leads to Inflation. Not unlike Second Life. The more money LL prints, the worse off the Linden Dollar gets. Something that I've been harping about for ages. Yet these Pro-Stipend people seem to have this idea that printing more money won't do anything to the economy. How wrong they are.




Bet on Gold, Not on Funny Money
by Robert Kiyosaki
Tuesday, July 25, 2006


[Robert Kiyosaki] Gold recently dropped more than $100, or 14 percent, after hitting a 26-year high of $730 in mid-May. With that drop in price, I became a buyer of gold once again.

Can the price of gold go lower? Absolutely. If it drops to $500 an ounce, I'll buy more. Let me tell you why.

But first, to give you some background, I've been in the gold market since 1971, when then-President Nixon took the U.S. dollar off the gold standard. Back then, gold was pegged at $35 an ounce, and ran to a high of $850 an ounce by January 1980. In the same period, silver hit approximately $40 an ounce.

Today, as I write, silver is around $13 an ounce. So I've seen the price of precious metals go up and down.

Mining a Hunch

In 1996, I founded a gold mining company in China and a silver mining company in South America. Both companies eventually became publicly traded on the Canadian Exchanges.

I formed gold and silver mining companies then because I believed that gold and silver were at "lows" and were set to come back up. At the time, gold was around $275 an ounce and silver was around $5 an ounce. If I'd been wrong, I would have lost the mines.

I was confident about gold and silver because I wasn't betting on them. Rather, I was betting against the dollar and oil. In 1996, oil was about $10 a barrel, and that seemed low. My suspicions were that the dollar was strong, and I believed it would drop when oil went higher. I felt the conditions were right for a massive change in the markets. So far, I've been pretty accurate.

I'm confident that those conditions haven't changed. With the current national debt, balance of trade, and ongoing war in Iraq, the dollar is growing weaker and oil is going higher. That's why I recently bought more gold as well as more silver -- to bet against the dollar and oil yet again.

Inflation or Recession?

In many ways, the conditions are far worse now than they were in 1996. Today, we have a slowing demand for the dollar. At the same time, it appears that the Federal Reserve is increasing the supply of dollars.

As you know, low demand and high supply means a drop in value of anything, including the dollar. And in order to save the dollar's purchasing power, Ben Bernanke, the new Federal Reserve chairman, may be forced to raise real interest rates. By "real," I mean an interest rate that's higher than the rate of inflation.

(For example, if inflation is at 5 percent and interest rates are at 5 percent, the real interest rate is 0 percent. So, in this example, to increase demand for the dollar, the Federal Reserve would have to raise interest rates above 5 percent, to, say, 8 percent. That would means investors would receive a net 3 percent return on their money.)

So Bernanke has a tough choice to make: If he prints more money to bolster the dollar, inflation increases and the dollar may collapse. If he raises interest rates to slow inflation, the economy may go into recession.

The Oil Problem

Granted, if Bernanke moves to save the dollar by raising interest rates the price of gold and silver will probably decline -- but so will our economy. If the economy begins to slow, the stock market often slows or turns into a bear market.

Personally, I suspect he's more afraid of deflation than inflation. So for now, I'm betting that he'll continue to increase the supply of dollars, which may be why the U.S. stopped reporting M3 in March of this year. (M3 measures how many dollars are in the system, and not reporting it is akin to not opening your credit card statement and pretending you're not in debt.)

But oil adds another wrinkle. Oil producers are seemingly less and less willing to accept dollars because the purchasing power of the dollar keeps falling, precisely because we continue to print more money.

To compound the problem, we're running out of easy-to-produce light, sweet crude. While there's still a lot of oil to be extracted, it'll be more expensive to produce, which makes $100-a-barrel oil very possible in the future. This, in turn, makes inflation more possible.

Historically, one barrel of oil has been worth about 2.2 grams of gold. Even when the dollar dropped in value, the ratio between gold and a barrel of oil remained pretty fixed. But recently, it has taken 3.4 grams of gold to buy a barrel of oil, which means either oil is expensive or gold is cheap.

I'm betting that gold is cheap, and that it'll correct as oil goes higher and countries such as Russia, Venezuela, the Arab states, and Africa become more reluctant to accept the U.S. dollar. For a while now, we've been allowed to pay for the goods and services from other countries with funny money, but the world appears to be less and less willing to take it as payment.

Good Money Before Bad

Which way will the new Fed chairman take us? Will he be inflationary, which means printing more money, or deflationary, which means raising interest rates and tightening the flow of money? Does he save the dollar, or save the economy? Does he increase the money supply, or increase demand for the dollar?

My strategy remains the same as it's been for years: I bet on real money, which is gold and silver. I also continue to borrow funny money to buy real estate. Since oil and gas are in high demand globally and appear to be going up in price, I also invest in oil and gas production.

Again, I'm not really betting on these assets -- I'm primarily betting against the dollar, and the leaders who manage the U.S. economy.

Now you know why I buy more gold and silver every time they drop in value in the current economic environment. What smart investor wouldn't gladly spend funny money to buy real money?

Source: http://finance.yahoo.com/columnist/article/richricher/7810

No. It. Does. Not. Prove. My. Point.

My point was that you were posting, in several different threads, to sell at L$3261 and L$3271. You said--and I will ONCE AGAIN quote you if I must--that the L$ would hang around L$3301 and then continue downward. You said nothing about possible price spikes or fluctuations. You did not say that you were only referring to long term trends. You said to sell immediately because right then was the best price at which anyone would be able to sell for a very long time. You used lame cliches and closed many of your posts with "muhahahahaha" in order to try to scare people into dumping their L$. You even tried to scare unwitting folks by posting that last week's Lindex closure was really due to the Lindens suddenly implementing a new currency, causing the L$ to be instantly worthless. All of that shows you to be a basher. You spread FUD and you outright lie and you post things out of Econ 101 textbooks to try to make that FUD and those lies sound better. You take some sort of perverse pleasure in trying to get newbies to think you're some sort of economic wiz and listen to your misinformation.

Simple fact: You told everyone to sell at L$3261. Simple fact: You told everyone they wouldn't see a better price--you made an absolute statement. Simple fact: Call it whatever you wish--dead-cat bounce, price spike, whatever--the L$ went as high as L$2961 and everyone DID see a better price. Simple fact: You were wrong.

Final fact: You can try to cover your ass but those of us who know your type can see right through it...and hopefully we can keep those who can't see at first from buying (or selling) into your lies.

I didn't know I had such a fan club... Hey, you got me. Uncle.. Yes the Linden Dollar did rise. All the way to L$297ish or so. Yup, I was wrong. But only in the (SHORT TERM)... My argument has always been, the long term trend of the Linden Dollar is going down. And the proof positive is the retracement from its recent run up to L$297, to its current decline of L$311 and falling...

When all is said and done, I will still be correct. Few more weeks like this, and L$330ish will be a daily read on the price. Thanks to piss poor economic policy by the powers that be.

Now if you don't like it Freyr , be my guest and load up on all the Linden Dollars you can at L$311 and put your money where your mouth is... I want you to crow about how great of an investment you made when the L$ either Rises or Falls... My research says falls, you might have some other numbers. Only time will declare the victor...

Why don't you pull up some quotes from the folks who said, "Buy More at L$300, this rally isn't a fluke, the L$ is going higher"?

I'd love to see them defend this falling dollar...

Ohh well... too bad for the people who bought at L$297 and can't get out for more than L$311..

"Dead Cat Bounce"

Hahahahah...... Tell that to the SLers selling Millions of Linden Dollars, with only a few hundred thousand buy orders... Translation: Too Many Sellers, Not Enough Buyers = Downward Pressure on the Linden Dollar's Valuation..

Your "argument" has always been to try to scare the crap out of people with lies, going so far as trying to convince everyone last week that their lindens would be worthless once the Lindex came back online.

Volume of Sell Orders: L$ 23,980,411 (00:00)
Volume of Sell Orders: L$ 22,552,346 (14:03)
Volume of Sales: L$ 5,481,593 (14:03)

And what happen? The L$ tanked after the LindenX came back online, as predicted by me. I'm glad you see the light.

As for scaring people, sorry, but that is not a goal. Only to state the truth. Sorry if the truth doesn't always end with a wonder rally where everybody made oooddles of money.

That's BS and you know it. You weren't saying the L$ was going be worthless because it was going to tank after the Lindex came back online. You were saying the L$ was going to be worthless because it was being replaced with a different currency while the Lindex was offline. All you're doing now is trying to cover your lies with more lies.


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Translation too much trolling

Would you care to define "tanked" as well in your so precise way RDB?

Going back to your current favourite statistic, the daily average trading value, there was a sudden strengthening 8 points and 9 points to 1 sig fig on successive days at the start of the calendar month that's 3% in a day more or less. The biggest single change in the "OMG the sky is falling" direction is about 5 points on one day (that's less than 2%). There's currently a slow and steady strengthening of the US$ against the L$, but tanking? Tanking was what it did with the first, really poorly worded announcement about the changes to the TOS. A change of < 4% from the best trading in the last month, and changes in the ±1% territory (and yes there are some days the L$ strengthens in since that peak) is hardly a tanking. In fact we're over 5% stonger than we were a month ago - when you were still shouting at us to sell, the world was over.

Your tin RL currency to mine shows >1% daily variations quite regularly, so what's the panic?

Looks like another dead cat bounce, average is 308 currently. I think I see more opportunity for it to go to 297 than 330.

or on the lindex

Honestly anyone who posts BUY or SELL here with any account, the posting one or alt, on any tier but basic on the lindex, ought to have their trade tier removed, and their long term SL status re-evaluated.

Dr. House said it well:
"You talk to God, you are religious.
God talks to you, you are delusional."

At least you have the qualifications for a job in the Bush White House
... or Osama Bin Laden's crew. I hear that they both claim God tells them what to do.

~ F ~

Which Linden should I contact to clean up all of the dead cats that are bouncing around?


When you switch alts back to RBD (haven't seen that one around for a bit), why don't you ask all the people who have been buying those millions of lindens over the past three days.


Oh, wait a minute...

Hmmm, I can sell at 303 this morning. Hope not many listened to the posts he left on Tuesday. It's the weekend too, hurray! Weekends are good to sellers.

The cat is far from dead

The cat is on the jump not bounce!

Uh-Oh, Suckers Rally... PT Barnum was right.

Well, look who's back...

You know, You're going to run out of cliches soon.

Call it whatever you will, but yet again you were wrong. Doesn't matter what your name for it is, right now folks can sell at 302:1. What happened to that not being able to "get out for more than L$311"?

And is the average (of L$305.6715) still speaking for you?


Oh, have you asked around about this yet?

I'm sure you're still wondering who's been buying through all of those millions so far.