At the School of Eruus, students relied on a single currency to trade for their most essential commodity: snacks. The currency, known as “Snack Coin,” was introduced by a student named Alex. Alex wasn’t just another student—he held the exclusive power to create and distribute Snack Coins, and soon, everyone at the school had no choice but to use them. Whether you wanted a sandwich, a bag of chips, or a granola bar, Snack Coins were the only way to trade.

Because Alex controlled the supply of Snack Coins, he became the central figure in determining the school’s entire economy. Whenever Alex decided to print more Snack Coins, he could buy whatever snacks he wanted, but at a cost. The more Snack Coins he produced, the less each one was worth. Suddenly, students who had been saving Snack Coins found that their hard-earned savings were worth less and less. Snack prices soared, but their Snack Coins bought fewer and fewer snacks.

Desperation Sets In

As the value of Snack Coins plummeted, students became desperate. Some started to deal in old, expired snacks, buying them cheap and selling them at higher prices to scrape together more Snack Coins. Others, more desperate still, resorted to stealing snacks to survive. But Alex didn’t stop printing more Snack Coins, even as the situation worsened. In fact, he was fully aware of the effect his actions had on his fellow students.

With Snack Coins becoming more and more worthless, many students found themselves unable to buy enough food. The cafeteria’s prices climbed higher and higher, and some students had no choice but to approach Alex for help. He happily obliged, but not without a cost. Alex began lending Snack Coins to the students—but with a steep interest rate. His appointed agents would lend Snack Coins, expecting a 10% return.

Power and Punishment

This new arrangement gave Alex immense power. If any student stepped out of line or didn’t follow his rules, Alex could simply raise the interest rate on their loans or refuse to lend them Snack Coins altogether. This left some students at Alex’s mercy, forcing them to beg or do whatever he asked to survive.

The situation for most students became unbearable. They worked harder and traded more, but every effort was undermined by the constant devaluation of Snack Coins. And every time they went to Alex for loans, they became more indebted, locking them into a cycle of dependence on him.

A New Solution: Betta Coin

One day, a group of students, tired of Alex’s control, decided to come up with a new solution. They created a new currency called “Betta Coin,” one that anyone could print and use. The idea caught on quickly. More and more students began trading with Betta Coin instead of Snack Coin because it gave them a sense of control over their own economy. No longer would they need to rely on Alex’s supply of Snack Coins or fear his punishments. With Betta Coin, the power to print and distribute money was spread across the entire school.

As Betta Coin gained popularity, students began to pay off their Snack Coin loans and gradually stopped using Alex’s currency altogether. Snack Coin, once the dominant currency, was becoming obsolete. Alex’s grip on the school economy weakened. Furious, he tried to intimidate students, but it was clear his power was slipping away.

A Turning Point

Alex now faced a choice: either adapt to the new system and try to coexist with Betta Coin or find a way to regain his influence. The students, meanwhile, felt empowered and free. They had taken control of their own economy and no longer lived under the fear of Alex’s whims.

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The Bigger Picture: Global Finance

If you’re wondering what this story means in real life, let me explain. Alex represents the United States, and Snack Coin is the US dollar. The students in the school symbolize the countries of the world—especially in regions like Africa, South America, and Southeast Asia—many of which rely on the US dollar for trade.

The Bretton Woods Agreement of 1944 established the US dollar as the global currency for trade. This meant that most countries had to hold US dollars in their reserves to buy and sell goods on the global market. However, this system placed immense power in the hands of the US, just like Alex had control over Snack Coins. If the US decided to print more dollars (through actions like quantitative easing), the value of those dollars would drop, and countries holding dollars would see their savings devalued.

Countries with fewer natural resources to export struggled to accumulate enough dollars. Over time, their economies suffered as the value of their own currencies dropped. Without access to sufficient US dollars, they couldn’t participate fully in global trade, leading to inflation and economic hardship.

Much like the students at the School of Eruus, these countries are often forced to take out loans from global institutions like the International Monetary Fund (IMF), usually with steep interest rates. And if these countries don’t comply with certain political or economic demands, they may find themselves cut off from further aid or facing even more crippling loan conditions.

The rise of cryptocurrencies and decentralized financial systems, symbolized by “Betta Coin” in the story, reflects a growing global movement to break away from reliance on the US dollar. Countries and individuals are seeking alternative ways to trade and store value without being at the mercy of a single, powerful entity. This shift threatens the dominance of the US dollar, just as Betta Coin challenged Alex’s control over the school economy.

The question is, what will happen next? Will the current system adapt to these changes, or will we see a new global financial order where control is more evenly distributed?