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The Nobel Laureate Milton Friedman once argued that dropping money out of helicopters would cause inflation but not affect the real economy. "Helicopter money" has made a comeback of sorts in recent years with the unconventional "quantitative easing" experiments of Japan, the US, and now Europe.
And it seems to have come to North Korea as well, though in the form of ChocoPies, and via balloons, not helicopters. As discussed in an earlier post, the humble ChocoPie has become a kind of alternative currency in Kaesong, enough so that an unnerved North Korean government encouraged the South Korean firms operating in the Kaesong Industrial Complex to restrict snack bonuses. Tired of seeing their wages in ChocoPies rising, the firms formed a cartel and complied.
Now, according to Yonhap, the NK People’s Liberation Front, a refugee group comprised of defectors from North Korea’s armed forces, have sent more than 200 pounds of ChocoPies north via balloon, timing the launches to coincide with the Lunar New Year celebration. No word as to how the price of snack cakes has adjusted to this aerial infusion.
Another story discussed earlier, was the infusion of Stormtrooper units into the border region. Good Friends reports that these units are now forcibly removing the families of refugees from the border zone. Unconfirmed reports have also circulated of landmining activities on the North Korean side of the border. One researcher of impeachable credibility who recently returned from the border region confirms the crackdown.
Lastly, earlier this month we reported that Josette Sheeran had withdrawn from consideration for reappointment as head of the World Food Program when it became apparent that the Obama Administration was backing Ertharin Cousin. Now that the leadership shift has transpired, anyone who knows Ms. Cousin's policy preferences re North Korea, drop us a line.
