Something Feral

Digging up the flower-beds.

Saturday, December 5, 2009

Rendering unto Caesar

He that has the gold (and maintains a lock on it through issuance of notes), makes the rules for those that use those notes:
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.

“Loud sounds of weeping in every house have not ceased since the news was released,” a South Korean website quoted an inhabitant of Sinuiju, a city on the border with China, as saying. “Weeping and fighting between couples has not stopped anywhere. The atmosphere of the city is terrible now.”
Promissory notes are just that: promises. When the distributor is a known liar, is it wise to put any faith whatsoever in the endless promises of stability and solvency?

I'm looking at you, Bernanke... You and all of your cohorts, elected or not.

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