North Koreans in misery as cash is culled

[Ghent12]

Re: North Koreans in misery as cash is culled

Raz has a point, but the same would be equally true of most any stockpiled commodity in physical possession, be it gold or canned beans.

I am somewhat skeptical that any stockpile of physical commodities would suffice. Gold is obvious because its value as a medium of exchange rises precipitously during an event such as a currency emergency. Canned beans might be worth their weight in gold in North Korea, given the whole starvation-is-policy thing there. I don't see many other things doing as well, although all would certainly fair better than the fiat currency!

[rj1]

Re: North Koreans in misery as cash is culled

Gold wouldn't necessarily be of much help in this situation

Gold wouldn't be of much help in this situation because I doubt the common North Korean has any or was ever able to afford it. If they did, they'd've sold it for food and necessities long ago.

What both revaluation situations sadly DO do, unfortunately, is threefold-

3) Reduces faith in the currency/government/economy. Wealth flees if able.

Not sure many had faith in the government to begin with.

[fallout]

Re: North Koreans in misery as cash is culled

A fascinating tale the history of the tally is, too. From their use we get and still use the terms "stock", "stockholder", and "short end of the stick", among others. Worth a read up on for those with an interest in both economics and history.

[fallout]

Re: North Koreans in misery as cash is culled

These were historical generalizations, not necessarily specific to this case with North Korea.
I like PM's, but keep in mind you cannot eat gold, nor wipe your tail with it, defend yourself from a gang of robbers with it, etc. It is only worth what it will purchase for you in a mutually agreeable transaction. Under a severe currency devaluation or economic collapse, the same conditions that increase the relative value of gold vis-a-vis other circulating forms of "money" also make it less useful versus other commodities for many needs. Potable water would be more valuable than gold to someone without, and the canned beans I mentioned in my earlier post are, in fact, far more valuable to the hungry (including the chronically malnourished North Koreans). Immediately after WW2, German citizens would bargain away family heirlooms, stored gold, diamonds, wristwatches, artwork, whatever they had for a GI K-Ration. In Zimbabwe today, a country with active working gold mines, citizens will happily work all day to find enough gold to trade for a loaf of bread.
http://www.protectthehuman.com/video...gold-for-bread
EJ himself has pointed out previously that in a hard crash, the kind seen in historical review, the lack of a functioning economy or rule of law would render PM's largely moot. I.e. someone will trade you hot lead for your PM's. ^_^

[audrey_girl]

Re: North Koreans in misery as cash is culled

Dan Amerman has a very good post on this type of government shell game at finanancialsense


imho - it pretty much explains how the govt plans on inflating away the problem in plain sight:

http://www.financialsense.com/fsu/ed...2009/1203.html

think it is worth the read

[jiimbergin]

Re: North Koreans in misery as cash is culled

Dan Amerman has a very good post on this type of government shell game at finanancialsense


imho - it pretty much explains how the govt plans on inflating away the problem in plain sight:

http://www.financialsense.com/fsu/ed...2009/1203.html

think it is worth the read

Yes, that is well worth the read, although I believe most of us already understood the concept. It might be worth forwarding to friends and family who do not understand.

[fallout]

Re: North Koreans in misery as cash is culled

"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens." - John Maynard Keynes, 1919.
As true today as it was back then.

[Slimprofits]

Re: North Koreans in misery as cash is culled

My post was in response to the proposition that the US might call in cash, capping redemptions at $200k per capita. Certainly our fiat currency is being depreciated, but the North Korea scheme would never fly in the US.

Funny how people will call the US "socialist" or even "communist". North Koreans are literally slaves to the government, with NO freedom of speech, NO freedom of information, NO right to "life, liberty and the pursuit of happiness", not even allowed to use the internet, read a foreign newspaper, much less leave the country. Meanwhile the "socialist" US can't even get a quasi-universal healthcare bill through congress, based largely on private insurance, doctors and hospitals, because it's "too liberal".

Get real and stop the hyperbole. We're depreciating the dollar to hell but we ain't North Korea.

Jimmy

great post.

[grapejelly]

Re: North Koreans in misery as cash is culled

Aren't Americans slaves to their government?

What's the difference? We give 55% of what we earn at the point of a gun and we "vote" for our king.

Big whoop.

They are debasing our money and supporting over 700 military bases, two major wars and aching for a third one, and you think there is no one party system here? There is one party, the War Party, in this country.

Sure, this isn't as bad as North Korea, I agree, that is obvious. But we are heading in that direction and I daresay that at some point they will fall and start heading in a more capitalist direction. Interesting.

[Fiat Currency]

Re: North Koreans in misery as cash is culled

Burn baby burn :p

North Koreans burn bills

North Koreans set piles of old bills alight in anger over their government's surprise move to redenominate the national currency, a report said, a sign of growing frustration among citizens left with hoards of worthless bills.
...

[scootie]

Re: North Koreans in misery as cash is culled

They are also renaming the currency from "won" to "loss"

[Mn_Mark]

Re: North Koreans in misery as cash is culled

I'd just like to pause a moment to give a thought to the North Korean people, who must be among the most desperate and miserable people on earth....what a curse to be born into that country. I have read that there is even some trading in human meat, so desperate are North Koreans for food. I hope the day of their deliverance comes sooner rather than later, but it's already been fifty years too long.

[MulaMan]

Re: North Koreans in misery as cash is culled

Too bad there is no oil in North Korea, otherwise the Americans would have been in there bombing years ago.

There is just no profit motive to help them.

[jimmygu3]

Re: North Koreans in misery as cash is culled

Too bad there is no oil in North Korea, otherwise the Americans would have been in there bombing years ago.

There is just no profit motive to help them.

Actually, we were in there bombing years ago. To this day, the US has about 35,000 troops in South Korea, defending them against certain invasion from the North. South Korea has no oil to speak of.

Jimmy

[touchring]

Re: North Koreans in misery as cash is culled

I'd just like to pause a moment to give a thought to the North Korean people, who must be among the most desperate and miserable people on earth....what a curse to be born into that country.

Miserable is an understatement. The worst curse is not to be born into North korea, but to be born in a North korean prison camp.

Read this:

I Was a Political Prisonerat Birth in North Korea
http://www.northkoreanrefugees.com/2007-09-atbirth.htm

I have read that there is even some trading in human meat, so desperate are North Koreans for food. I hope the day of their deliverance comes sooner rather than later, but it's already been fifty years too long.

How about this?

http://www.northkoreanrefugees.com/2006-1-interview.htm

She says she saw that (the eating of human flesh) with her own eyes. That people would exchange their children and cook them, because they couldn’t eat their own children…