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alstry (35.70)

Welcome To HyperInflation

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December 01, 2009 – Comments (8)

At some point, bankers and foreign nations are going to stick the middle finger up at America and say we are no longer going to finance your unsustainable and growing defict.  They will demand higher interest rates which will in turn require more printing pushing up interest rates even higher until we are printing so much just to meet interest obligations that our currency is practically worthless.

At that point, expect a bank holiday and a massive devaluation of the currency like what just happened to 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.

http://market-ticker.denninger.net/archives/1685-North-Korea-and-Currency-Devaluations.html

None of this is hard to foresee....just hard to believe it is actually happening.  Once you get into a hyperinflation mode....it really doesn't matter how much you have......because as the process cycles, whatever you have is worthless.

Welcome to Zombulation Nation.....1.01.10

8 Comments – Post Your Own

#1) On December 01, 2009 at 10:45 PM, alstry (35.70) wrote:

Government Layoffs Skyrocketing

Massachusetts - 600 Mental Health Workers

Missouri Transportation Department - 100

Fire Department NY - Job Cuts at 49 Fire of its Companies

MANHATTAN — The FDNY is cutting staff at 49 of its companies across the five boroughs — 12 in Manhattan alone — effective Wednesday morning at 8 a.m.

The cuts are a result of the rising rate of medical leave among firefighters this year, which resulted in higher overtime expenses for the city in order to cover the shifts.

“Increased medical leave is costing us more in overtime, and we’re going to do everything we can to be fiscally prudent during these difficult economic times,” said Fire Commissioner Nicholas Scoppetta.

Tough calls are being made across the board as city agencies scramble to meet Mayor Michael Bloomberg’s goal of cutting their budgets by a total of $1.75 billion.

“I am dismayed by the proposed plan to reduce staff levels at the City’s firehouses,” Manhattan Borough President Scott Stringer said in a statement. “Penalizing firefighters for using medical leave by reducing staff levels can only lead to a greater need for medical leave, as firefighters endure the day-in, day-out rigors of doing the same job with less manpower.”

Who really needs so many firefighters anyway????  They eat too many pancakes and watch flat screens all day long......zombulation nation 1.01.10.It is amazing that we can afford to send troops to Afghanistan but can't afford to retain our fire and police safety workers. Report this comment
#2) On December 01, 2009 at 10:57 PM, alstry (35.70) wrote:

The Full Story from the WaPo:

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 and exchange limits triggered panic and anger, particularly among market traders with substantial hoards of old North Korean won -- much of which has apparently become worthless, according to news agency reports from South Korea and China and from groups with contacts in North Korea.

The sudden currency move appeared to be part of a continuing effort by the government to crack down on private markets, which have become an essential part of the food-supply system in chronically hungry North Korea.

In recent years, some market traders have stashed away substantial amounts of cash, while establishing themselves in profitable businesses that the government struggles to control.

But under the rules of the new currency system, the wealth of these traders has largely disappeared, unless it is held in euros, dollars or Chinese yuan.

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.

According to two Web-based groups with sources in the North, that limit was set Monday at 100,000 won, which at current black-market rates amounts to just $40. All North Korean currency that individuals possess in excess of that amount becomes worthless under the revaluation.

Amid widespread protests, the limit was raised to 150,000 won in cash and 300,000 won in bank savings, according to DailyNK, an online news organization that has informants in the North.

"I worked like a dog for two months for the winter, but the money became useless paper overnight," a resident of Sinuiju, a city that borders China, was quoted as saying on the Web site of Good Friends, a South Korea-based aid organization with informants in the North.

China's official New China News Agency said in a report from Pyongyang, North Korea, that state-run shops were closed Tuesday as sales staff posted new prices on goods.

The exchange of old currency for new began Monday and will end Sunday, the Chinese news agency said, adding that the government did not explain why the revaluation had occurred.

In the past year, North Korea has put increasing pressure on local markets, closing several and limiting the range of goods that can be sold in them.

The government has also criminalized everyday market behavior while creating a new kind of gulag for those it deems economic criminals, according to a report released this fall by the East-West Center, a research organization established by Congress to promote understanding of Asia.

The report says security forces in North Korea have broad discretion to detain without trial nearly anyone who buys or sells in the local markets. But if traders can pay bribes, security officials will often leave them alone, the report says.

If the currency move substantially cripples the operation of local markets in the North, the consequences could be severe for the millions who now depend on them for food. U.N. officials have estimated that as much as half the calories consumed by North Koreans come from food bought in markets.

South Korean officials said last month that North Korea appears to be on the brink of another severe food crisis, with stocks of food likely to run short by March.

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#3) On December 01, 2009 at 11:08 PM, alstry (35.70) wrote:

1.01.10...Zombulation Nation when prices go up and wages go down

NASHVILLE, Tenn. (AP) -- Bridgestone Americas has announced a price increase of up to 5 percent on its Bridgestone, Firestone and associate brand consumer tires.

The Nashville-based company Tuesday blamed a steady increase in raw materials and energy costs.

The increases, effective Jan. 1, affect tires on certain passenger and light trucks for both the original equipment and replacement markets.

The company said in a news release that efforts to become more efficient and increase productivity have not succeeded in overcoming "the escalation of raw material costs."

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#4) On December 01, 2009 at 11:28 PM, jesusfreakinco (29.61) wrote:

Al - good find in North Korea.  Scary stuff.  My heart breaks for those living in those circumstances. 

JFC

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#5) On December 01, 2009 at 11:59 PM, alstry (35.70) wrote:

JF...

You don't think that can happen here where we are running a $2 Trillion dollar and growing deficit as unemployment skyrockets and burdens on government explodes?

When you simply print without much production.....pretty soon money loses all credibility.

It was a lot worse in Germany not too many decades ago.

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#6) On December 02, 2009 at 1:34 AM, Rasbold (93.10) wrote:

That is a bold move by North Korea. The population is already starving, he may incite a revolution there.

Very scary.

Tomorrow will be interesting.

 

May Your Dow Never Jones, Alstry.

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#7) On December 02, 2009 at 1:38 AM, robstuck (< 20) wrote:

ALSTRY YOU ARE WRONG MY FRIEND.

1. japanese debt levels are much higher than ours and their stock market has been rising in spite of this fact.

2. EU debt levels are higher than ours and EURO VS DOLLAR has been rising in spite of this fact.

 

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#8) On August 12, 2010 at 12:16 AM, tititi (< 20) wrote:

Trillion  ed hardy t-shirtdollar and growing deficit as unemployment skyrockets and burdens on government explodes? kauf ed hardy ed hardy purses 

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