June 2024 Xarslasja Recession

On June 10th, 2024, the Great Desert Bank of Xarslasja fell into insolvency and the entire national vault of the Bezuvate of Xarslasja was spent.

Elisa of Fishland attempted to exchange 32 stacks of Gold Blocks for 100 slabs. This requested value vastly outnumbered the total value of the national vault of Xarslasja, which was valued at one Slab. The one slab was paid out and the remaining stacks of gold blocks were returned to Elisa. Prior to this, no transaction at the Bank had exceeded values measurable in Slablets, so no system of transaction size limits or bank loans had been established. With no money remaining in the national vault, the Bank instantly became insolvent.

The Bezuv had the doors of the bank and the Xarslasja Exchange Rate Commission sealed shut and all further transactions postponed until enough resources had been extracted to reestablish a valid national vault. The Bezuv of Xarslasja, Agma Schwa, made an official declaration that construction projects, including the construction of the gawdy Copper Palace of Arcosanti, would be halted until significant mineral wealth had been collected and converted to liquid Slab value for the national vault.

The closure of the bank has led to significant political unrest in Xarslasja, especially among the residents of Quartzsite who form the agricultural backbone of the nation. The rapid economic growth before the Bank's collapse, paired with the extremely high deficit from vast construction projects, instantly brought the economy into a Recession.

As of June 10th, the bank remains closed and the national vault of Xarslasja is still empty. If this Recession were somehow worsened to the point of deteriorating the existing resources of Xarslasja, the value lost overe time mayb lead to a depression.