Posted on 12/13/2010 3:24:53 AM PST by TigerLikesRooster
12-13-2010 18:48
'Yeonpyeong shelling causes inflation in Pyongyang'
By Kim Young-jin
North Korean merchants are exchanging their local currency en masse as war jitters in the wake of Pyongyangs attack on Yeonpyeong Island have stoked fears that the money may lose its value in the case of war, a report said.
According to North Korea Intellectuals Solidarity (NKIS), a Seoul-based NGO comprised of defectors with lines into the North, currency exchange rates have skyrocketed since the Nov. 23 incident. One hundred Chinese yuan, which before the shelling went for 2,000 North Korean won (NKW), is now worth 35,000 won, NKIS said in a report released Sunday.
Merchants have heard rumors that if there is war, North Korean bills will become worthless scraps of paper, NKIS quoted a source as saying, causing traders to exchange their won while they can.
Price of daily goods have also skyrocketed, the report said, with rice jumping from 900 NKW per kilogram to 1600 NKW. Corn climbed from 4000 NKW per kilogram to 6000 NKW, it said.
The source said the soaring prices have been caused by jitters in the market over the heightened tensions in the wake of the Nov. 23 attack, saying the Norths military has been in a quasi state of war since the incident.
The rumors that the won will lose its value in case of a war have slowed market activities as merchants have raised prices and are waiting to see if further military action is in the cards.
Traders in China, from who markets in the North secure much their goods, have also become reluctant to make transactions involving North Korean currency and are trading what won they have, the source said.
The price jump comes on the heels of reportedly enormous inflation caused by a botched currency reform last year.
The regime redenominated banknotes at a ratio of 100:1 in November last year in a move to squelch a bourgeoning private sector. But the move led to runaway inflation as the price soared by some forty times within the year, according to reports.
The U.N. estimated last month that some 5 million North Koreans will face food shortages this year due to lack of staple grains, while the economy is believed to be suffering heavily from international sanctions imposed for the regimes missile and nuclear tests.
Meanwhile, Pyongyang, which claims Seoul instigated the shelling by firing into its territory during a military drill, continued to threaten the South over the weekend, saying, The army and the people of the DPRK are ready for both an escalation and an all-out war.
This time it got a little difficult to elicit the same response, because the brazen daylight attack on Yeonpyeong Island left little room for conspiracy theories featuring 'evil' S. Korean gov. and U.S.. Things won't completely turn around until there is a third(bigger) provocation, which I believe will come in near future. I still see some politicians and others out there, who hope that people would soon forget this thing and go back to their slumber.
Some people just don't get it unless NK's 240mm rocket screaming down to a StarBucks at a posh part of Seoul, pulverizing the place and vaporizing many airheads in it, who are gulping down overpriced coffee.
P!
” North Korea Intellectuals Solidarity (NKIS),”
Hmmmm....
Not sure how much reliance I’d place on ‘intellectuals’’ reports about ‘life on the streets’....
(They use the word ‘unexpectedly’, a lot...)
If they fire 240mm rockets at Seoul most people will be safe if they remain inside and move downstairs. The bomblets detonate on impact and will not penetrate below one floor of a building. Reference the Soviets’ use of Grad rockets on Grozny. Tube artillery is another matter. Guns can level a city. The NORKs do have some guns which can hit Seoul.
ping
“Things won’t completely turn around until there is a third(bigger) provocation, which I believe will come in near future.”
I’m curious - when you say “completely turn around” do you mean to say the security situation on the peninsula will improve after another (larger) provocation? That’s how I read what you said, but I don’t believe that’s what you mean.
The myth(idol) propped up by these lefties would be destroyed not by series of logical arguments, but by a catastrophe(NK attack on SK, limited or full-scale.)
Gotcha. Based upon the changing tone in Seoul these days, I’d say the pro-North element within the ROK is well on its way to being discredited.
By the way, did you catch this -
AFP: S.Korea on Wed. (2pm) to hold biggest air raid drill in years. Evacs to shelters, fighter jets overhead will simulate #DPRK airstrike.
about 5 hours ago via TweetDeck
I will be posting from Seoul in a week.
It is getting cold in Seoul. I hope you are not from Florida or S. California.:-)
From your link:
“Although the five West Sea islands have not been designated as drill sites, a military source said there is a possibility of live-fire exercises taking place there on short notice based on weather and strategic considerations.”
Good. Was hearing that they were thinking about not going forward with anymore live-fire exercises up in the “5 Islands” region, basically caving into Pyongyang’s position as to the viability of the NLL.
Would be “convenient” if they conducted some of those live-fire arty exercises up by the NLL at 2pm on Wednesday when they kick off the big air raid drills.
NYC/LI where we have already seen twenty degree days. I’ve got all the good cold weather gear and a compact bug-out bag that will never leave my side. Semper paratus.
Then you are good to go!:-)
Won is the loneliest number.
Now would be the time to step up balloon leaflets and black ops broadcasts to the North—all blaming Kim Jong Un. Internal unrest could be fomented. So much for their own war rhetoric being their own undoing...
Hey guys anybody hear anything about North Korea want Eric Clapton concert according to Winileaks LOL!
Hey guys anybody hear anything about North Korea want Eric Clapton concert according to Winileaks LOL!
OT: links of “all” NK websites http://www.northkoreatech.org/the-north-korean-website-list/
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