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Old 01-04-2010, 10:14 AM   #5
Project Avalon Moderator
Join Date: Sep 2008
Location: Northeastern Brazil
Posts: 1,259
Default Re: North Korea currency change sparks panic

Hi peaceandlove,

The scheme in North Korea is nothing too radical. Here in Brazil in the 1980's I beleive, the government simply kidnapped money from the populations' savings accounts in the banks. Of course the people with links to the inside knew what was going to happen and withdrew their savings, but the vast majority of the populous knew nothing and found their money gone.

A similar thing happened I also beleive in Argentina.

Another reat feat in Brazil was when the government decided to weaken the Real against the US$ to improve exports. Once again those in the know bought their dollars the day before the action and the day after the Real was worth (against the dollar) half as much. Those that bought the dollars the day before could sell them again for twice as many R$ than they had bought them for.

As I understand it in the US and in the UK, our birth certificate makes us (the person named on the birth certificate) responsible for the national debt as in the case of these two nations the governments are actually corporations. I'm only just starting to read up on this so I'm not the most reliable to be asked for further information, perhaps somebody else knows more. But this liability makes it perfectly legal for these two governments 'charge' it's persons (named on the birth certificate) for any shortfalls.

I'm trying to find out if this is true for Brasil and what this could mean for a foreign national.

The mysterious wheelings and dealings of governments...

Best regards,


Originally Posted by peaceandlove View Post
N.Korea's Currency Reform Could End in Chaos

January 4, 2010

The North Korean military is on alert for a possible civil uprising following last week's sudden currency reform, according to a Russian business newspaper citing foreign diplomats in the communist country. The currency reform involved the exchange of only limited amounts of old bills at a rate of 100:1, with the state confiscating the remainder. People who are afraid of exposing the size of their wealth have no choice but to hide their old bills. It is difficult to ascertain the actual circumstances, but it is apparent the North Korean regime is virtually stealing money equivalent to two or three months' wages for the average worker. And public discontent is rising to the degree that the regime had to order the military on standby to quell riots.

The currency reform may seem illogical, but it appears to follow careful political considerations. Ever since the regime became unable to feed its own people, a primitive form of the market economy in the form of open-air markets emerged everywhere as North Koreans struggled to stay alive. A certain group of North Koreans were able to amass a little wealth that way, and when the gap between rich and poor began to widen in a country where such differences are acutely visible, the regime probably began to view them as a threat to the system.

In other words, the currency revaluation was probably aimed at destroying the middle class before it swells any further and becomes a real threat...



Last edited by Steve_A; 01-04-2010 at 11:29 AM.
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