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N. Korea: 'Yeonpyeong shelling causes inflation in Pyongyang'(War hysteria blowback)
Korea Times ^ | 12/13/10 | Kim Young-jin

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 Pyongyang’s 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 North’s 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 regime’s 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.”


TOPICS: Extended News; Foreign Affairs; News/Current Events
KEYWORDS: inflation; nkorea; skorea; yeonpyeong
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Panic is occurring in the wrong place. It is supposed to happen in SK not NK. I think NK wanted to have a repeat of last May's feat, successfully spooking a segment of S. Korean population, especially young people, when Cheonan was sank, and N. Korea issued non-stop series of belligerent threats. With their sympathizers(SK left) in S. Korea, they successfully stoked panic among young population. Hysteria generated by mobile phone messages at lightening speed. These kids got played.

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.

1 posted on 12/13/2010 3:24:57 AM PST by TigerLikesRooster
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To: TigerLikesRooster; AmericanInTokyo; Steel Wolf; nuconvert; MizSterious; nw_arizona_granny; ...

P!


2 posted on 12/13/2010 3:27:56 AM PST by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster
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.

Damn, you should write opeds. Lol.
3 posted on 12/13/2010 3:30:28 AM PST by randomhero97 ("First you want to kill me, now you want to kiss me. Blow!" - Ash)
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To: TigerLikesRooster

” 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...)


4 posted on 12/13/2010 3:50:23 AM PST by Uncle Ike (Rope is cheap, and there are lots of trees...)
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To: TigerLikesRooster

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.


5 posted on 12/13/2010 4:19:01 AM PST by Justa
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To: maquiladora

ping


6 posted on 12/13/2010 4:50:47 AM PST by jhpigott
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To: TigerLikesRooster

“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.


7 posted on 12/13/2010 5:01:13 AM PST by jhpigott
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To: jhpigott
I was referring to the political landscape. There are those who used to be leftwing(pro-North) activists, but now fashion themselves as democracy fighters. Many are in the SK's political scene. Some are even in ruling party. Their credibility could be destroyed or damaged.

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.)

8 posted on 12/13/2010 5:13:47 AM PST by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

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

http://twitter.com/w7voa


9 posted on 12/13/2010 5:21:19 AM PST by jhpigott
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To: jhpigott
Yes, it is on. On a related note,

Live-Fire Drills on All Coasts This Week

10 posted on 12/13/2010 5:36:40 AM PST by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

I will be posting from Seoul in a week.


11 posted on 12/13/2010 5:40:22 AM PST by wtc911 ("How you gonna get down that hill?")
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To: wtc911

It is getting cold in Seoul. I hope you are not from Florida or S. California.:-)


12 posted on 12/13/2010 5:45:04 AM PST by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

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.


13 posted on 12/13/2010 5:47:30 AM PST by jhpigott
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To: TigerLikesRooster

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.


14 posted on 12/13/2010 6:02:14 AM PST by wtc911 ("How you gonna get down that hill?")
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To: wtc911

Then you are good to go!:-)


15 posted on 12/13/2010 6:16:10 AM PST by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster; Charles Henrickson
North Korean merchants are exchanging their local currency en masse as war jitters in the wake of Pyongyang’s attack on Yeonpyeong Island have stoked fears that the money may lose its value in the case of war

Won is the loneliest number.

16 posted on 12/13/2010 7:33:33 AM PST by martin_fierro (< |:)~)
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To: TigerLikesRooster

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...


17 posted on 12/13/2010 7:36:14 AM PST by AmericanInTokyo (**George W Bush** bears as much responsibility as CARTER, CLINTON and OBAMA over N. Korean nukes)
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To: AmericanInTokyo; Jet Jaguar; TigerLikesRooster; Cindy; All

Hey guys anybody hear anything about North Korea want Eric Clapton concert according to Winileaks LOL!


18 posted on 12/13/2010 9:59:27 AM PST by SevenofNine ("We are Freepers, all your media belong to us ,resistance is futile")
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To: AmericanInTokyo; Jet Jaguar; TigerLikesRooster; Cindy; All

Hey guys anybody hear anything about North Korea want Eric Clapton concert according to Winileaks LOL!


19 posted on 12/13/2010 9:59:27 AM PST by SevenofNine ("We are Freepers, all your media belong to us ,resistance is futile")
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To: TigerLikesRooster

OT: links of “all” NK websites http://www.northkoreatech.org/the-north-korean-website-list/


20 posted on 12/13/2010 12:59:06 PM PST by AdmSmith (GCTGATATGTCTATGATTACTCAT)
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