Alan and Bob each own a bar. Alan's is in very northern New York, and Bob's is just across the border in Canada.

As it turns out, at the beginning of this problem, a Canadian Dollar is worth exactly the same as the U.S. Dollar, and people are quite accustomed to using them interchangeably (including banks).

But, alas, the U.S. Government and the Canadian government get in a spat. So, the U.S. "devalues" the Canadian dollar 10%, so now they will treat it as worth 90 cents (U.S. currency). In retaliation, Canada does the same and "devalues" the U.S. dollar 10%, so they treat it as worth 90 cents (Canadian currency).

Enter Charlie.

Charlie goes to Alan's bar and purchases a 1 dollar drink and pays with a 10 dollar bill (U.S.). He receives, in change, a 10 dollar bill (Canadian). He then walks across the border to Bob's bar and purchases another 1 dollar drink, paying with a 10 dollar bill (Canadian), and he receives, in change, a 10 dollar bill (U.S.).

Charlie proceeds to continue doing this until he finds himself quite intoxicated.

I think it obvious that Charlie is gaining on these transactions. The question is.... WHO (if anyone) is losing out on these transactions?

"WHO (if anyone) is losing out on these transactions?"

One clear loser was, as you say, WHO (World Health Organization), whose anti-alcohol campaign had fallen on deaf ears. Beyond that, after 50 visits from Charlie, Alan had given up 50 Canadian dollars ($45 in America) and gotten 50 US dollars. He was ahead $5 in US currency. Bob had given up 50 US dollars ($45 in Canada) and gotten 50 Canadian dollars. He was ahead by $5 in Canadian currency.

So the 4 losers were:
(1) WHO (World Health Organizaton)
(2) Charlie. He lost social prestige, his wife left him, he got brain and liver damage, and he received 20 years in prison for double vehicular homicide.
(3) Alan. As he was on his way to the bank, after hours, to deposit his $5 profit, a besotted Charlie (by now too drunk to walk) plowed into him in his SUV, killing him instantly.
(4) Bob. He was Charlie's other victim.

The 2 winners:
Flora and Fauna,the barmaids of Alan and Bob, respectively. They inherited the two alehouses.
Edited on November 2, 2003, 10:03 pm

Posted by Dan on 2003-11-02 04:06:41