Has the SL Financial economy bottomed out?  Has the SL stock bubble burst?  If we compare some of the events that have happened recently to the RL US economy, then I would say that there should be some relative confidence that the answer to both questions is 'Yes'. 

blog by Arbitrage Wise 

As I watch our stock market constantly dropping every day due to what I would consider a dismal monetary policy set by the US Feds, I can’t help but think the collapse of the USD is looming just not too far ahead.  And if the US Dollar does collapse, how will it affect the virtual worlds, particularly the Linden Dollar since its conversion rate is set based on the USD?

As more open grids and virtual worlds start linking up with each other, one of the things I wouldn’t mind seeing (assuming that it’s legal), is a free market of currency.  No doubt that in the early days of the free market currency, there will be a lot of bank collapse and rampant frauds.  Being a pure capitalist, I have to say that we just need to let the market play out.  Under the condition of a privatized currency, there should be some kind of universal agreement of checks and balances, or ‘membership rules’ that banks must go by in order to ensure that full transparency.  But aside from that, it’s really up to the investors and market to perform their due diligence.  We can’t expect everyone to research each individual bank they think about using, but we can certainly expect that a business will come around to fill that void – that’s what a free market does: fill gaps and decrease inefficiencies. 

If anything is to serve as a ‘Lab’ on how a free market currency would work, virtual world is the place for it.  The ‘GDP’ (more like GVP – Gross Virtual Products) of virtual worlds are relatively small compared to the Real World, and virtual world as a whole is still an emerging market.  So why not try out free market currency and pure laissez-fair, and see how it works.  Something worth looking into, or at least talked about.  So assuming that our government somehow allows this, or we can circumvent this just as Linden Lab did – do you think this is a good or bad idea?

**For a good understand of Privatize Currency, read this article by Roderick Moor.

A blog by Arbitrage Wise: 

I recently discussed our bank run and issues with my friends and brother, and they pointed me to a few YouTube videos that, while it has little resemblance of our current situation, really opened my eyes to the business of banking, and what’s really been going on around us.  If you have not done so, feel free to view the videos here:

Part 1 , Part 2 , Part 3 , Part 4 , & Part 5

I’m not suggesting what the videos say are true, but I do feel that we should all wake up, and liberate our minds from the conundrum that we’re all in.  After watching the videos (and a few Michael Moore documentary including Sicko), I just didn’t know what to think, except one thing – money and greed will corrupt anyone, and I will make certain that I do not fall victim to it.  I have always grown up wanting to do business, and becoming rich.  But if this is the result of becoming rich, then I really need to reconsider my goals in life.  There are just more important things out there then money, power, and materialism.  At then end of the day, I can sleep better with my loved ones knowing that I have helped made someone’s life better, then I would knowing what kind of car is parked in my garage.

These ideas have been plaguing me for the last two weeks, and my apathy for the government and politicians sunk to an all time low.  Compound it with our Second Life problems, it was difficult for me to wake up and be motivated to do anything.  What’s the point of doing anything?  What is there to look forward to seeing the ‘Brave New World’ that we’re now entering where our freedom and liberty is being stripped away right in front of our own eyes?  How can we look our [future] kids in the eye and tell them everything will be OK when we know that it was us, our generation, who failed them?

Fortunately, I was able to find some hope for us all in Ron Paul.  If you’re wondering who he is, then you’ve been living in a cave like me – a cave where I was fed information only from what I see on TV.  I would do him injustice to tell you about him, so I’ll just provide some videos that I saw last night on YouTube about him, and for once, it brought tears to my eyes seeing that there is some hope after all. 

Part 1 , Part 2, Part 3 , & Part 4

I watch CNBC and the news all day – I see what’s going on more than most people, and I see what’s going on with our economy and what our government is doing.  I’m not telling you this so that you’ll vote for Ron Paul, nor am I trying to be a conspiracy theorist.  I’m just sharing with you my feelings, and helping to liberate your mind so that you can do your own free thinking.  I can tell you one thing –2008 will be the first year that I have ever gone out to vote in my life.

-Arbitrage Wise