North Korea and Currency Devaluations
Here’s what just happened over in North Korea : TOKYO — Chaos reportedly erupted in North Korea on Tuesday after the government of Kim Jong Il revalued the country’s currency, sharply restricting the amount of old bills that could be traded for new and wiping out personal savings. … The revaluation replaces 1,000 won notes with 10 won notes, but strictly limits the amount of old currency that can be exchanged, news reports said. 100:1. You had $100,000, you now have $1,000. You had $100,000,000 (one hundred million), you now have one million. Oh, and if you tried to cheat by taking it out of the system, only $40 of it is exchangeable - the rest is worth nothing . Yes, this is North Korea, and Kim Jung-Il isn’t exactly a nice guy. Now let’s ask the question nobody wants to ask: Is America proceeding inexorably down a path where “the wise guys” - that would be Bernanke, Obama, Geithner - have such a plan “in their back pocket” if the dollar should happen to decline precipitously? If the market refuses to buy bonds and they can’t finance spending $1.5 trillion more than they take in via taxes ? Remember, Henry Paulson had drawn up the “TARP/EESA” plan in his back pocket six months before he locked Congress in a room one dark September night in 2008 and used it to extort $700 billion of taxpayer money to bail out the banksters on Wall Street, coordinating that with $11 trillion more of Fed and Treasury “commitments.” He lied about it being a “necessary immediate response” to an ”unforeseen” circumstance - the truth is that he drew up his evil plan and then waited for an appropriate time when he could ramrod it through Congress under threat of martial law
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North Korea and Currency Devaluations