You are correct; the strengthening of the USD vers...

2010-06-19T08:53:11.688-07:00

You are correct; the strengthening of the USD versus the Euro was an additional source of sell pressure on the LLD. But it works both ways: in late 2009 and early 2010 the USD was weak against the Euro, which eased sell pressure and probably masked some of the weakness of the Second Life economy.

The larger question of "how should the value of the LDD be managed" is a greater topic I hope to address in a future post.

One aspect that is overlooked in your analysis is ...

2010-06-18T08:46:30.893-07:00

One aspect that is overlooked in your analysis is that the majority of SL users are NOT in the US, so the artificial pegging of the Linden Dollar to the US$ creates a sense of "stability" only for a fraction of SL users.

For most of us, the Linden Dollar is in constant movement anyway. In particular, the Euro fell rapidly against the US$ in the last few months, and so Second life became more and more expensive for European users, see the charts on the VirWoX exchange.

So, the recent fall of the value of the Linden Dollar is just a "back to more normal conditions" for us European users.

Comments on Procyon Games: Lindex Meltdown

You are correct; the strengthening of the USD vers...

One aspect that is overlooked in your analysis is ...