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Boudicca Littlebird

Will the Euro crisis affect sl

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There is talk of a Greek exit from the Euro, some pundits claim it will take the Euro down then the pound followed by the dollar,

how do you think this is going to affect the market here?

There are a lot of Greeks here and they run some of the best combat Sims, do you think the lindens will help them?

Also I have notice a few people here offering deals on linden with the diff currencies how will it affect them?

Also if they do leave they will try to stop runs on the banks, but the linden is a currency, so they could hide a lot of money as lindens, could the trading in lindens be halted if they think that a threat?

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The Euro crisis has had an astounding affect on everything world wide. As well as the US crisis and everyone else's LOL .

 

About the Trading in SL. Wouldn't Trading limits prevent them from hiding a lot of money in SL?

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It seems obvious to me the crisis will affect SL economy. Less Euros (or what ever currency) to spend, less lindens to buy.

Why would Linden Lab help the Greek? Then LL also should help me since a lot of my Euros went to Greece!

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L$ is linked to US$ so thats means I have more or less Lindens to spend depending on the interchange course. I have my fixed budget. (I'm not in Greece just in the Euro zone)

For Greece it's different and it depends if they stay with the Euro or not. If they loose the Euro the price for US$ and L$ will multiply and therefore explode for the local currency. I doubt that someone can afford a sim. (unless they are rich or make business outside of Greece)

The high rate of unemployment and the low value of the money add to that scenario.

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I find the first thing one should do is to find out what everyone else is doing, so I have alts that travel all over sl getting info so I can plan products, what I have noticed is more support for the Greek Sims in not only advertising but sim support, like lindens rezzing to help them.

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IMHO the Grexit scenario is being overplayed by the Europhobic brigade who are milking the current *crisis* for all the publicity they can get out of it. In an interesting interview in The Guardian, Alexis Tsipras of SYRIZA made the surprising statement that the majority of Greeks do not want to leave the Euro... merely to renegotiate the terms of their membership. Interesting times ahead.

Alexis Tsipras interview

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Boudicca Littlebird wrote:

There is talk of a Greek exit from the Euro, some pundits claim it will take the Euro down then the pound followed by the dollar,

how do you think this is going to affect the market here?

If a Greek exit from the eurozone takes the euro down, followed by the pound (sterling), follwed by the US$, there will be no SL to worry about its market, so your question doesn't arise.

But don't worry about it. Greece may leave the eurozone, and a few other countries may follow in time, but what you report some pundits as saying isn't going to happen.

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A few years back there was a report into SL resident nationalities. Can't recall where I saw it.  At that time Europeans across the board (Including UK) accounted for the majority of residents almost  60% at that time. The largest single resident nationality was of course US . I doubt of the percentages have changed very much and if so there is sure to be a  down turn  on European spend.

RL for the last few years I have been trading  world-wide through online auctions. Europe  was a steady market up to a year ago since then I have made about half a sale to Europe (from UK) but my US sales have held up and even grown.

If RL trends are mirrored in SL then for sure there  has been and will continue to be a significant slump.

It's a complex picture though and some folks may actually trade off their night at the  movies or the pub in favour of cheaper virtual world entertainment.

 

^L^

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The beauty of debt when it comes too whole country is there will always be a large lender ready to bail them out at the last minute.

It would effect (I do believe it will) the world wide market,  there will be a group that pulls together a bail out to save their own investments abroad.

They will just wait until the last minute to bail them and and Greece would be heavily affected with regulations and the truth is you could see many users from there have to leave due to large tax depts and outages such as power and internet as different carriers try to provide minimal services as people will have to choose which parts of their lives  they can do with out  to survive after paying much heavy tax.

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the logical thing for Greece is to exit out of the euro and go back to the drachma

+

the big problem that the euro countries have is that they not in control of their own currency

when the bad times came a few years ago, USA and Britain revalued their own economies against other nations economies by print more money - quantitive easing. euro countries couldnt/cant do that

if cant revalue your economy by quantitive easing then can only do it by reducing your costs. cut to deep then deflation sets in. to offset the effects of deflation then must be able to inject inflation to maintain equlibrum. can only inflate by more costcutting or more borrowing if cant ease/print more money

all the european governments and lots of their people are now waking up to this

+

i think Greece will leave the euro. same with Spain and Italy and France as well eventually. and be like Britain. in the European Union but not in the euro

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Boudicca Littlebird wrote:

But either way won't we be living in a slow motion car crash, things are hard now, how many of us will survive this?

Yeah .. we are .. & the Eurozone economic crisis & likely meltdown of 1st the PIIGS followed by France, Germany & the UK .. are only a small partuv it. Fukushima killed the Japanese economy, China's productivity is in a nosedive & the US continues to limpa long waiting to see what happens in Nov. The larger issue tho is that global petroleum production has peaked & entered into terminal decline. Prices rise as demand goes up & supply goes down .. until the unaffordablity of liquid fuels kills the globabl economy. This has happened once .. modest recovery ensued .. will happen again soon .. & the global economy comes to resembles a slinky going down a staircase. How many of us will survive this? None of us will .. but you knew that! :cattongue: No1 gets outuv here alive, right?

Jeanne

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>>It's a complex picture though and some folks may actually trade off their night at the  movies or the pub in favour of cheaper virtual world entertainment.<<

I hope so. This, imo, is the real value of SL. Even tho the air-conditioned server farms & hundreds of thousands of home computers w/ their hi-end grafix cards use a lotuv electricity generated primarily from coal & CH4 buring & nuke power plants, if SL is keeping ppl home then energy is being saved & oxidized carbon emissions are reduced. So mote it be.

Jeanne

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I wish! After all these years i still tend to convert to our old currency. Which is not the smartest thing to do. We most likely never get it back, and it makes me feel miserable to realize that what once was FL10 now is €10. :matte-motes-angry:

And our old money looked way better too! :matte-motes-big-grin:

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Euro: 1.00 - AUD: 1:282

USD: 1.00 - AUD: 1:024

The trick will be waiting until best return before booking holidays.

Euro skiing sounds nice :)

How low will they go?

Strange days indeed.

 

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16 wrote:

the logical thing for Greece is to exit out of the euro and go back to the drachma

 Is it?  I'm not at all sure it would help anyone very much.   Greece's problem, or one of the major ones, is that it owes lots of money, and these debts have to be paid in Euros or US Dollars.   Switching back to the Drachma, or so it seems to me, doesn't make those debts go away or make them any easier to pay off.

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I'm not sure what you mean by interesting.  That the Greek people want to stay in the Euro but under different terms is and has all along been as obvious as the fact that other country's like Germany want them to stay in but under the same terms.  That's the crux of the problem and has been all along.

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it makes the governments debt repayments less

is how the USA government, and lots of others, done it after the second world war. what they done was print money by issue government bonds and then sell the bonds to their own citizens and the local banks, investment and pension funds. then use the money to pay off foreign creditors. in some cases the banks/funds got strongarmed into it by regulation

so basically convert the foreign debt into a domestic one. as much as you can anyways

then what the governments done was ease/print more paper money to create inflation internally which devalue what they owed to their own citizens, banks and funds

the citizens kinda accept that way of doing it and buy into it bc they know they have to pay for it somehow. either can buy the bonds or pay more taxes. so buy the bonds bc one day maybe someday i might get some of my money back which i dont if have to pay more taxes. so appeal to self-interest but disguise/promote it as being in the national interest

also people buy into it bc wages/salaries/benefits denominated in your own currency can go up in dollar terms when is more paper dollars in circulation (in value terms they actual go down relative to other countries currencies). but as people dont get paid their wages and salaries in foreign currency then is not as noticeable

can only do this way tho if you got your own currency and have total control over your own economic and fiscal policy and central bank

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The debt does not have to be paid in Euros or dollars.  In fact it does not have to be paid.  Obviously creditors would prefer to be paid and in Euros or dollars rather than drachmas, but that does not mean Greece "have" to pay in dollars or Euros.

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When the US economy collapsed SL wasn't dented. The EU kept SL up preventing it from declining.

The decline we notice now is directly related the to EU.

To answer your question, the EU crisis is affecting SL, and quite hard too.

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Greece will not pay back anything when they go back to the drachma because they will not have that money and printing more drachmas will lower the value instantly. The other countries will have to pay for them partially since they will prevent a few banks from crashing.

Even then it will take many years for greece to get the economy going. They will not be able to lend money and they don't have much of an economy that would get an advantage from a cheap drachma.

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I did suspect that the down turn we have all been feeling is partly due to the down turn in Europe, I don't think Greece will leave, I think it is just a threat to make them toe the line over taxes and repaying their debts.

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