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A crazy politician (named Tronald Dump) is elected as leader of a country. Being crazy, he changes to the national currency to be donuts with the following conversion:

  • Doughnut Hole = 1d
  • Glazed Doughnut = 5d
  • Frosted Doughnut = 10d
  • Longjohn = 20d
  • Premium Doughnut = 100d

(The d stands for "doughnut")

The federal reserve turns into a massive bakery, churning out trillions of donuts when they want to stimulate the economy.

How would the government prevent counterfeit donuts from being produced?

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  • $\begingroup$ I doubt that even "The Tronald" is that crazy, there are many millions of high quality counterfeiting donut machines already present all over the US, as well as the rest of the world. Making your own from scratch also presents no challenge. $\endgroup$ – Gary Walker Apr 7 '16 at 3:14
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    $\begingroup$ How do you suppose to prevent the Fed from reducing the monetary supply in the first place? trust me they are fed! $\endgroup$ – user6760 Apr 7 '16 at 4:36
  • $\begingroup$ So are these donuts eaten before they get stale or just retired and destroyed? What prevents a glazed donut from becoming unglazed passing from hand to hand? Will cops be paid with the very same donuts they eat or they will turn to celery? Will wasteful rich people just eat the donut instead than the classic lighting a cigar with a 100$ bill? $\endgroup$ – Erik vanDoren Apr 7 '16 at 12:42
  • $\begingroup$ These had better be one inch around donuts made of some metal, or they will not work as currency. Maybe the coins just have holes in them now, so they are nicknamed "donuts". $\endgroup$ – Xandar The Zenon Apr 8 '16 at 4:01
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    $\begingroup$ If you want to ask a question just to call Trump crazy, then do it somewhere else on the internet.... $\endgroup$ – HDave Apr 8 '16 at 4:27
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As Gary Walker pointed out, the prevalence of high quality 'counterfeiting donut machines' world wide means that it is nigh impossible to ensure that you are the only one making them.

What needs to happen, then, is the addition to the donut of a singular ingredient that isn't readily available anywhere else. What this is, I donut know. I'm not a pastry chef.

Whether this is some kind of special sprinkle, or even some kind of microdot (https://en.wikipedia.org/wiki/Microdot), it doesn't matter. Whatever system is designed to prevent donut counterfeiting is going to have a lot of holes in it, and leave a bad taste in the governments mouth.

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  • It becomes impossible to keep your wealth in your wallet or in a safe. People who do not want to spend their money, or eat it directly, would have to bring it to a bank.
  • Credit cards suddenly become much more attractive. No risk of squashing your Premium Donut by accident. If all sane people use digital donuts rather than real ones, intelligence agencies can get a more complete picture by following the bits and bytes.
  • A second-order effect, if nobody uses cash then the illegal economy takes a hit. How do you recognize a drug dealer? By the truckload of donuts.

Last but not least, have you ever tried to tell a toddler that he can't have a donut right now if you obviously have one? The work of parents just got much harder.

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