The Reserve Bank of Oz

[undergroundpanther]

Check this story out ,The greatest scam ever pulled....




The Council of Oz had the only remaining goldsmith as a member. He suggested the old trick of seigniorage, or faking the purity of the coins. “We could never get away with it before because competition from other coins would eventually cause the impure coins to fall in value and increase their use until nobody would take them and the economy would collapse. But nobody will question the Council and the Sheriff because they have to trust us. There is nobody left to trust. If they don’t trust the Council and the Sheriff for long, we just make a law that says they have to, wave lots of flags and jail anyone who disagrees.”

The council saw that they could make one ounce gold coins with ¾ ounce of gold, and the Council gets 3/16 ounce with the goldsmith getting 1/16 ounce. Everybody on the Council decided that it was good for the people too, because it would increase jobs, so this measure to not measure correctly was passed with only one dissenting vote. But the Council shouldn’t tell the people until they have to make a law. The Council was making so many laws that nobody paid attention to them any more.

The people were fooled for a while, but eventually found out this scheme and bailed out. Many people were put in jail and many were hung by the neck for using foreign coins. The Sheriff tried extending his territory to the closest small communities to stop this, but then ruin came to them too, and expenses just kept going up for the Sheriff. Other small communities tried to secede, and the Sheriff was using up all the gold in the treasury just to retain their existing territory in his grip. Inflation further ruined the economy and trade and saving just stopped. They all became more impoverished: the fools who could not leave Oz, the Council Members, the Sheriff and their friends and employees. When the people of Oz were just about to revolt against the Council and the Sheriff, a Wizard appeared driving a large wagon pulled by big, beautiful horses.

The Wizard said, “Your worries are over. I can turn paper into gold.”

(To be continued.)



Part 1

http://www.strike-the-root.com/51/davis/davis8.html
Part 2
http://www.strike-the-root.com/51/davis/davis9.html