What to do with the L$ piling up????

I find myself pondering this question a lot lately. I was hoping to get some feedback, see what the rest of you are doing.

I find myself in the comfy position of having saved up enough US$ in my account to cover tier for a good 11 months. (note: this is in no way a reflection of my business skills, but more a reflection of the small amount of land I own.) Thus I find myself debating if I should sell the lindens that I have coming in or hold on to them until after the May 15 and June 13 deadlines.

This got me to thinking. Am I the only one thinking this way? Up until recently, it seemed the Linden was on a downward spiral; and I must admit to having added to that decline by selling my Lindens as quickly as they came in. It seemed prudent considering they might be worth less and less the longer I held them. Then came THE ANOUNCMENT. So am I the only one thinking about hording my Lindens? Will, through this psychological decrease in LindenX supply due to people anticipating the market, the value of the Linden continute to rise until after June 13 when people consider it 'safe' to sell. Will then on June 14 the value of the Linden tank because of the increase in supply?

What do you all think????

There is not going to be an increase in supply of L$. Dwell and stipends come from the introduction of new L$ into the system. So by eliminating dwell, LL is reducing the supply.

The results are really going to be unpredictable. On one side, reduced supply of LL = increased value. On the other hand, reduced incentive = reduced growth. Thus potentially countering the effect of the reduced supply.

Personally, since I don't think earning US$ is the motivation of most players, the damage will far outweigh the benefit. So you aren't likely to see much increase in the US$ value of L$.

Just my opinion. Caveat Emptor!

Well it's obvious! You give it to your poor starving neighbors!!

/cough cough /wheeze

ooo haven't eaten in days /cough

I donate mine to various causes; right now The Shelter is viewed by many as a Worthy Cause.

Spicy I've seen your mansion up close. You ain't starvin

But what I'm saying is that if people end up not selling Lindens when they otherwise might have, because the think the value is going to go up, will the sudden rush to sell cause the value to go back down after Dwell is removed?

Yes, I have been wondering about this lately too.

At one point one of the fanciest mansions in SL was owned by someone who was homeless in RL using a computer she put together out of dumpster trash and borrowed Internet access.

Yeah, but in those days land was $1L per meter to buy and no land use fees.

Yes, you're right. Supply is only one part of the 'supply and demand' equation.

If demand will also scale back (players not finding SL as fun, less things to do, more boring, etc), the supply reduction will prove pointless.

Use it to distribute free grain to the dispossesed roman proletariat! ...Oh, people don't need to eat... in fact, no one need the L$ for anything...

Conclusion: the Linden will continue to fall.

I'm sorry I must have missed it or missunderstood posts I've read. Could someone please explain the May and June deadlines? And how it will change things as we know it now? Thanks

I don't completely disagree with Caveat, however:

The key issues to this are (real life issues are vital here):

- Removal of dwell removes the usd injection into many people's tier bills (in other words, were you getting $50 monthly on average from dwell, you will now have to either place RL cash into tier bill, or sell off L$ on Lindex. Wich will drive a downward pressure on L$, dependent on how large the dwell dependencies were.

- The current macroeconomics of SL seem to be using same formulas as Federal Reserves, the domestic growth is inbalanced with foreign (in sl RL) trade-difference. For each 1% GDP growth there seems to be a 0,5% inflation increase. Usa is trying the impossible game of getting trade-in-balance with china, while in SL theres no other foreign trading than FDI, wich will decrease as long as the growth increases. (by example, 100 newbies join sl, more than 50% of those "donate" their capital into sl businesses (clothes, cars, gambling, and luxuries), wich then returns the cash to Lindex to pay the tier bill.

But the very needed correction has not yet arrived... So far Papermoney (USD, Euros) has only lost 40% of it's value... How's that so ? Several adjustions to us constitution, some of them making Global US-based companies to be forced to pay a small % of their global earnings back to usa (the only reason the Federal Reserve cared to Install a such tax was to "pause" the corrections abit, but as you see on precious metals, they are only pausing it, not fixing it). At the same time Putin/Jintao/Chavez seems to be natural born friends over us's geopolitical fetish to "find the magic argument to the doors of" iran (i don't see any logic in trying same arguments as against iraq, except deceptive deceptions). As many of you may have noticed iaea has actualy signed a agreement with iran (like with sweden) to freely be able to research and develop nuclear technologies for peaceful purposes. Seems like whitehouses most talented "sellers" changed employer.

The reason why i mix this RL situation as a factor for L$ price, is because quiet alot of is a result on peoples cash reserves. PPP (in english: Purchasing Power. or in ghetto: Your bucks you have after paying gas/food/house/healthcare/tax) and FDI (english: Foreign Direct Investmen. ghetto: international badass corporations with the aim to indirectly "steal your bucks".) will decline further (and i doubt bush will change the constitution more to get more usd's back to us, that our wonderful corps are spreading all over the world, taxing back much more to china, india than us). So with this, you should be getting the picture of where i'm heading... gold: $1200, silver $30, oil $150, the US Treasury bonds are gonna do some acrobatics over this Ben Benmarke's financial games (the rates MUST go up to balance the gap, but at the same time it would kill PPP, because the gas price is creating barriers in it)... and the L$ is always punished after a small delay between the dollar punishments.

My recomendation for L$: Strong Sell
For USD: Strong Sell
For precious metals, and enery commodities: Strong Buy (if you live in a country wich has commodity backed currency, get a foreign loan in USD, the coming interest rates "boom" in US will still make you profit (actualy very nice profit) off the decline on value versus commodities.

Btw. there are gonna be people poping out of different institutions, that will admit over time whats been going on, just too sad they usualy do it after it's too late to fix the problem, like this guy:

Thomas Jefferson's Warning To America : "I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Written by Jefferson in a letter to the Secretary of the Treasury Albert Gallatin (1802).

But we (democraticly) wanted that Federal Reserve to be a private corporation, in foolish greedy hope it'd act as a more effective structure. I can't say they werent effective, they managed to sell us the idea that we need $9 Trillion debt, so imagine balancing that next time you see USA's GDP numbers, and count out how many decades it's needed to pay it off. I ended up in similar calculations as to SL's growth, it's a ever shrinking system. If a commodity isn't backed by value, rather by supply demand it WILL SHRINK, not because markets always decline, but because the monetary systems USA and EU chosen have the agenda to shrink.

If you wonder where these $9 Trillion debt worth Bank returns it's profits, it's over the seas... some in England, Switzerland, Israel, Germany and spreading into asia... it's quiet a list of divident hungry investors.

So when people criticize that Linden Lab is such a greedy profit hungry corporation, it realy is a big joke, they're actualy serving people a great service. Unline reallife, and it's mostly reallife issues that touch the vital buttons of the game and the reason why reallife stopped serving the service you once demanded, is because people no longer are interrested in neither politics nor history... People just do their relaxation wether it's deficit spending on luxury or watching tv all day or jerk off all day, as long as the creditcard still aint broke we feel economicaly safe, don't we. And if that cc even brokes we still have the weekly L$ stipends, wonder how that'd work to finance RL food. We're simply too addicted to deficit madman spending to see the inflation.

Looks like we're gettning one step closer to the agenda i described, these facts can now be added to history of the "falling papers".:

1. WASHINGTON, April 21 (RIA Novosti) - Russia cannot consider the dollar as a reliable reserve currency because of its instability, the finance minister said Friday.

"This currency has devalued by 40% against the euro in recent years," Alexei Kudrin told a news conference in Washington on the occasion of the opening spring session of the International Monetary Fund.

According to the Central Bank of Russia, the dollar accounted for 70% of Russia's gold and currency reserves, euro for 25% and other assets for 5% in late 2005. As of April 14, 2006, the reserves were $212 billion.

2. The International Monetary Fund on Wednesday stepped up the pressure for far-reaching shifts in exchange rates, declaring that the dollar will have to depreciate "significantly" over the medium term if global economic imbalances are to be resolved in an orderly fashion.

In its clearest statement to date on this highly charged subject, the IMF said it was essential that currencies in Asia and of oil exporters were allowed to appreciate as part of the required "realignment of exchange rates."

3. Sweden announced today that their Central Bank, the Riksbank, had reduced their dollar reserves... And bought... Drum roll, please... The euro!

4. Oh! This is a great one! You won't believe the latest line to come from Fed Chairman Big Ben... In a letter to lawmakers dated April 18... Big Ben told them... "If the dollar declined sharply, it would not necessarily disrupt markets." What? I can't believe he told them that! But what I want to point out more than his doltness is the fact that it sounds like he is preparing them for a sharp decline in the dollar!

So to get back to the 4USD/1kL$ rates we had 12months back, it needs to go up to a rate of 8USD/1k L$.


Bottom line to our uniquely intelligent politicians:

Cheeney: Don't shoot the man in the face!
Benmarke: Inflation is like training muscles, you can reach skylevels without people noticing it as long as the pace is right.
Bush: Fool me once, shame on — ... shame on you. Fool me — ... you can't get fooled again'

That "chosen" lobby has ruined our economy, reduced our military powers, turned our intelligence agencies into a muppet show, and made the congress into cartoon figures.