If the only bank in the world has only $1000 and loans $200 out to five people, what happens the next year when the five people try to pay it back?
The year is 1914 and you are in charge of a new bank called the central federal bank or CFB for short. All money is now traded in "Federal Reserve Bank Note" or $ for short. The CFB can load money to other banks or the government.
At the start of the game the following are the starting values for CFB that you can change:
- Owns 10,000 tons of gold
- The bank must hold at least 40% of its outstanding loans in gold.
- $ are valued at $20 per ounce so the bank has 16 billion dollars it is allowed to trade for gold or loan out.
- Loan interest rate starts at 1%
Gold production starts at 500 tons a year and increases on average 15 tons a year.
The point of the game is to last as long as possible and to make as much as possible. You make money by giving out loans with interest (such as to the government). Giving a loan creates new notes into the system. If there are too many notes in the system there will be inflation. To much inflation and the people try to revolt and you might loose the game. Too little money in the system and many defaults on their loans causing a depression and you might loose the game.
One of the first goals of the game is to remove the FRBN from the gold standard.
The interesting part of the game is because the majority of money is eventually created from loans (with interest) the system will collapse on itself. The longer things go on, the more interest is owned. It is your job to make it last as long as possible. It is Tetris, eventually you will loose, just a question of when.
Of course games are about fun, taking the above basic parameters create challenges that start out simple, but get harder and harder as time goes on with rewards for successful completion of tasks. Collecting more and more assets before the collapse. Gaining abilities such as tweaking parameters at the banks within the system and buying political clout. Wars, depressions, getting off the gold standard, inflation, new presidents, bubbles and busts, everything that can, does happen :)