Black Thursday

## Overview

Black Thursday, also known as Red Thursday, was an economic crisis within Haturel that occurred on June 10th, 2021. The immediate nations that were effected by this event were Hanvis, Tustarica, and Elzarike.

## Causes and Reform

### The Causes

Black Thursday occurred for a number of reasons, said reasons are:

* Ratatoskr cashing in Twenty of Tartu's currency, which at Haturel Spice's old exchange rate, was 670 Haturel Spice, 65% of what was in circulation at the time.
* Mornald Corradio beginning the process of globalizing Haturel Spice, the official currency of the Haturel Union, created under the Treaty of Haturel.
* Centurion making Haturel Spice the global translation currency for how other currencies should be ranks and how much they would be worth.
* Evangelina, the Visroyal of Hanvis, issuing a now defunct statement that all citizens within the Haturel Union will no longer recognize spice produced in Tustarica.
* It was discovered that Mornald Corradio had produced upwards of 20,000 Haturel Spice for his said globalization plan, causing hyperinflation as people realized the money is almost useless in its current state.

Alone, these changes would cause instability within the economy of the continent, however, with the sudden change and no one being prepared for said sudden change, many civilians began to panic, and the value of Haturel Spice began to drop rapidly. Due to this panic and drop of prices, Black Thursday officially began.

### Currency Reform

After about two hours of initial panic and blame being thrown around, a group consisting of Mornald, Avalis, and Atamin met in the bank-mint building in Stonksport to discuss how the currency can be reformed. After an hour of discussion on how the crisis should be solved, the three came to an agreement on what to do.

To begin, the first act would be to void all agreements made about Haturel Spice within the last 24 hours, undoing what Centurion and Evangelina had done. The second act would be to then adapt Haturel Spice to the Iron/Gold/Diamond standard of Uruldu, which would allow for the currency to have basic conversion rates. The various acts that would follow that can be summarize in one sentence would go as follows:

* The currency adapts a base-2 system, placing five "coins" of the Haturel Spice at one, two, four, eight, and sixteen Haturel Spice respectively.
* 3,600 Coins would be sent immediately into circulation, allowing for a gap between possibly needing to produce more Haturel Spice.
* A decree would be declared stating that no Haturel Currency will be produced following the 3,600 being depleted from the reserves.
* Finally, under these reforms, the Haturel Spice would return to being a global translator of other currencies, if and only if they followed the Iron/Gold/Diamond standard.
* All citizens of both the Haturel Union or Uruldu in general would be reimbursed for all iron, gold, or diamonds lost from buying the old Haturel Spice, and the old Haturel Spice would be declared defunct and will not be accepted at any currency vendor.
* The currency, under the Iron/Gold/Diamond standard will be priced as follows, two iron for one spice, one gold for two spice, and one diamond for four spice, causing the currency to be worth more in the long run compared to the unreformed old currency.