North Korean won Currency is "Reevaluated"

[wrongbyright.livejournal.com]

Economic activity inside North Korea has reportedly ground to a halt following a government announcement that it is devaluing its currency at a rate of 100:1.

There were reports of public outrage and confusion after the announcement of the measure, which requires North Koreans to swap existing won notes for new ones at an exchange rate of one to 100 — effectively knocking two zeroes off their value. Because of a cap of 100,000 won per family (£475 at the official exchange rate), anyone with significant holdings of cash will have their savings wiped out.

The move is seen as an effort to quash small businesses and private enterprises which have proliferated in the unofficial economy. As many as 30,000 vendors are believed to operate in a market outside the capital, Pyongyang, and many of them had accumulated substantial cash reserves. This move effectively confiscates that cash.
Analysts do not foresee any direct economic repercussions outside the country, but it does serve as a reminder that many other world currencies are, like the North Korean won, “fiat money”.

Links at the Times Online, Wall Street Journal, and Economist. Photo credit.
source: neatorama

I'm not sure if this is suitable for the comm?

Comments

[shincaru.livejournal.com]

I think it's suitable? Single moms aren't Kpop idols either, and this article is both interesting and 'wtf'.

The line 'a reminder that many other world currencies are, like the North Korean won, "fiat money"' is awkward though - kind of implies that it's only the cray-cray countries do it, but the US Dollar and Euro (and nearly every damn currency out there) are fiat currencies as well.

[kyoko-hino.livejournal.com]

rofl basically the whole money system is insane b/c they give u a piece of paper and u get things with it...so basically the power of the dollar/any foreign currency lies in the belief/value that people believe it has.
it was rly lol-y when our US History teacher talked about ppl making their own money in ~1800s XD

I do not get economy

[silvaesedai.livejournal.com]

IA with the above.

[freezetomorrow.livejournal.com]

The move is seen as an effort to quash small businesses and private enterprises which have proliferated in the unofficial economy.

WHY?

[silvaesedai.livejournal.com]

Because apparently they're shaking the government's hold on the proletariat. =/

[shincaru.livejournal.com]

[kyoko-hino.livejournal.com]

Probably b/c private means that the government can't fully control them/can't "benefit" that much money from it.
Basically private doesn't give government that much ability to be corrupt there XD

plus it's easier to control pplz

[nene718.livejournal.com]

Keyword = private

[rawthorne.livejournal.com]

Welcome to communism!

[thewokstar.livejournal.com]

I think it's informational thank you!

And I learned what fiat money is... I should really get back to school. ):
But from what I understand... it is shady?

[shincaru.livejournal.com]

Your American dollar/Euro/Pound Sterling/etc. are all fiat money, the definition being that a government just says 'this shit can get you this other shit'. The idea of coloured paper with pictures of dead dudes on it being traded for food and housing is pretty shady in general. X) It's scary, but if you really think about it, all the paper and scrap metal you hold dear is in and of itself worth nothing. It's what ideas and concepts we place on them that make them valuable.

But if you mean NK being shady ... been that way since 1945, baby.

[silvaesedai.livejournal.com]

Not really. Basically fiat money is whatever the government chooses to be legal tender... but you might remember it as shady because it isn't backed by any RL physical commodity (as opposed to a gold standard system, say, where you can exchange paper money for a set quantity of gold). Fiat money's only value is its relative scarcity. And in the willingness of the consumers to use it.

[des-akazim.livejournal.com]

...jeex that's psychotic

[-ochre.livejournal.com]

OT but I went to the DMZ and got myself a set of North Korean currency. It's really very pretty.

[shincaru.livejournal.com]

I really like SK currency. King Sejong especially looks amused that he's been in the vicinity of a fine ass.

[silvaesedai.livejournal.com]

Here, another Economist article to go with your column ^^. (http://www.economist.com/world/asia/displaystory.cfm?story_id=15022481)

[dream-a-dreamer.livejournal.com]

economics hurt the head. The exchange rate 100:1 don't you think that's a little crazy N.Korea?

[dream-a-dreamer.livejournal.com]

Why yes I am replying to my own comment. OT but what is life like in NK? Is is as depressing as it seems?

[moldface.livejournal.com]

WHAT A DICKHEAD MOVE.

[radical-ed57.livejournal.com]

This sums it up pretty nicely.

[loose-shoe.livejournal.com]

u iz kidding me.

[onerainysunday.livejournal.com]

hey at least it's not as bad as zimbabwe

[microminiscrew.livejournal.com]

Whenever I feel bad about my own exchange rate, I remember Zimbabwe and give thanks. I know a couple people from there and there is nothing quite like seeing a billion dollar bill O.O

[unrefin3d.livejournal.com]

Snap.

[kamikaze-bunny.livejournal.com]

WTF, dick move.

[microminiscrew.livejournal.com]

You know, I read this 3 times and each time saw 'South' instead of 'North', and as such, was really confused. /fail

Makes much more sense now

[despair26.livejournal.com]

My friend once said that he wanted to go to North Korea and I was like dude wtf why? He didn't get why I was so opposed to them... they just freak me the fuck out! I watched all these videos on youtube and it's so sad!
I think North Koreans are poor brainwashed souls that need to be saved!