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Author Topic: North Korea: 1000 bucks is now 10  (Read 723 times)

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Offline Matthew

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North Korea: 1000 bucks is now 10
« on: December 01, 2009, 10:59:12 PM »
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    Offline Vladimir

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    North Korea: 1000 bucks is now 10
    « Reply #1 on: December 01, 2009, 11:54:04 PM »
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  • Are you sure that it is just not that North Corea has a higher currency system? In Viet Nam I think it was like 16,000 dong to equal one USD, but 16,000 d will not buy you anything (besides maybe a packet of gum). It may have changed, I haven't been there in a while. I don't know why the currency is like that there (100 d equals a few cents). It is a lot more confusing.

    Good advice about precious metals and land though. In Viet Nam they say "Land is more precious than gold".  :smirk:




    Offline Matthew

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    North Korea: 1000 bucks is now 10
    « Reply #2 on: December 02, 2009, 12:36:31 AM »
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  • Lopping zeroes off the currency has been done countless times in the past, in countless countries.

    There is no guarantee that the new 10 bucks will be worth any more than the old 10 bucks.

    "Lopping off zeroes" is a common way to fight runaway inflation.

    Matthew
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    Offline Iuvenalis

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    North Korea: 1000 bucks is now 10
    « Reply #3 on: December 15, 2009, 03:12:16 AM »
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  • Quote from: Matthew
    Lopping zeroes off the currency has been done countless times in the past, in countless countries.

    There is no guarantee that the new 10 bucks will be worth any more than the old 10 bucks.

    "Lopping off zeroes" is a common way to fight runaway inflation.

    Matthew


    Lopping of zeroes changes the value/denomination of a particular piece of currency, but:

    -Prices of course adjust proportionally if there's markets

    -An increase in liquidity (money) is *not* inherently inflationary. Printed dollars are small minority of the 'money' in our money supply.