How Kim Affords His Nukes

The myth of a failing economy.

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  • Posted By: Poke lover @ 06/05/2009 8:05:57 AM

    While reading "How Kim affords his nukes" by Takashi Yokota, I wonder how much money is actually sent from Japan to North Korea through revenues from pachinko parlours and other eroneous business owned or operated by ethnic Koreans living in Japan. Also I find it very difficult indeed to comprehend the local Japanese tax laws which have granted special tax free status to numerous Korean owned or operated businesses, this is just ridiculous. Not to mention the countless manufacturing, and technological companies that have been producing all kinds of equipment and tools that can be used for weapons and weapon systems. Wouldn't it be ironic if we are bombed by North Korea and find out that we have supplied them with the tools and financial means to help them? This is not something most Japanese nationals would be very proud of, the government must do something now before its too late and change some of the antiquated laws put in place years ago.

  • Posted By: Poke lover @ 06/05/2009 8:04:15 AM

    While reading "How Kim affords his nukes" by Takashi Yokota, I wonder how much money is actually sent from Japan to North Korea through revenues from pachinko parlours and other eroneous business owned or operated by ethnic Koreans living in Japan. Also I find it very difficult indeed to comprehend the local Japanese tax laws which have granted special tax free status to numerous Korean owned or operated businesses, this is just ridiculous. Not to mention the countless manufacturing, and technological companies that have been producing all kinds of equipment and tools that can be used for weapons and weapon systems. Wouldn't it be ironic if we are bombed by North Korea and find out that we have supplied them with the tools and financial means to help them? This is not something most Japanese nationals would be very proud of, the government must do something now before its too late and change some of the antiquated laws put in place years ago.

  • Posted By: motorherz @ 06/04/2009 7:00:15 AM

    On one hand, the West can push sanctions further, forcing North Korea to sell military technology to islamic extremists.

    On the other hand, the West can relax sanctions on a condition that North Korea doesn't sell military technology to anyone. Heck, $100 million is what - a routine CEO bonus these days? Why doesn't the West simply buy that technology from Korea?

    This whole fear-monging about North Korea is stupid. Out of all new nuclear powers, they are perhaps the most predictable and the least dangerous. Given the right signals, in 30 years or so they can join the rank of other Asian pseudo-democratic authocraties, like South Korea, Japan or China.

  • Posted By: McLovinB @ 06/03/2009 11:15:27 PM

    I know Takashi Yokota probably does not write his own headlines, but
    THE MYTH OF A FAILING ECONOMY says this exactly: The North Korean economy is not failing.

    Is that really what the author intends to say with this article? Really?

    I wonder what outcome of the North Korean economy would be considered successful by, well, let's use Asian standards. What country would I avoid so that I could start a business or invest in North Korea? I cannot think of one. Myanmar's numbers and outcomes have got to be better. I could think of good reasons to invest in Cambodia or Laos, even, but North Korea? They have very low growth on an agricultural, primary industry, mining base. Considering that they are doing that with something like slave labor, with people who by all accounts are near starvation, it is amazing, but it is still a failure. Are they creating new industries and training workers in new skills? No. Is their education or research and development base strong, pointing to a better future? No. Even if everyone has equal medical care, which is extremely doubtful, do they have modern medicines or medical schools? No. Power generation? No. Tourism? Almost nonexistent. Leisure? None. Private investment? None. I am just guessing now, but there are probably no private loans, no stock market, no venture capital. Do people have any need to know double entry bookkeeping, even? The people cannot even read Newsweek. How can that be success in Newsweek terms?
    "Oh, but that is the result of sanctions..." Uh uh. The author clearly states that sanctions do not work. Kim would like everyone to THINK that the failures of the system will just disappear someday, but they won't.
    Their growth rate is lower than any depreciation rate I can think of for agricultural machinery, automobiles... anything, ... so their equipment is actually breaking down, on an aggregate basis, faster than it can be replaced.

    It is not a myth. Demonstrably, the economy is a failure. The article might explain how Kim was able to develop some nuclear weapon, but the headline is a lie.

  • Posted By: psdesert2008 @ 06/03/2009 10:57:54 PM

    As usual this left-wing publication leaves out all the stuff they don't want you to know, such as the huge industry of counterfeiting US currency that produces hundreds of millions in income and damages our currency value. But then, Newsweek doesn't want you upset, just fuzzy warm, Obama worshiping disciples.

  • Posted By: D_Right_One @ 06/03/2009 9:41:40 AM

    Evidently, there are more players in the market to make money with the DPRK. This whole saga with Kim rattling his swords and the US, EU, China et al running around trying to say or do something to calm Kim down before he wakes the baby is like a dull James Bond movie.

    Maybe, I missed a speech somewhere where Kim explained why he so wants the attention of the US. It seems like China is more able to give him what he wants.

    • Posted By: McLovinB @ 06/03/2009 10:46:29 PM

      But see, then China would have to be responsible for what Kim says and does, and who wants that headache? Besides, China is busy attending to other problems, and it knows that North Korea will not get aggressive against China, so it will just let Kim cause problems for its Asian rivals. Hey, wouldn't you?

      They want the attention of the US because
      1. The US can give it money or food, which, this article's analysis nothwithstanding, it does not have
      2. The US could push South Korea or Japan to do all kinds of things that Kim would want
      3. Dealing with the US gives Kim prestige
      4. Up to now, the US has been suckered much more easily than any other country it has dealt with

  • Posted By: Bruce Gordon @ 06/03/2009 9:39:31 AM

    An excellent analysis. While some have pointed out possible errors in the missile sales, the important thing is that the North Korean economy is doing far better than I had expected. I did not think they had an economic base for their military. Looking at Google maps, I see little evidence that their many aircraft are actually flown often. With so little pilot training, their ability to fly at night or in weather would be questionable, much less to fight in those conditions. I thought they couldn't afford the fuel. If they have a stronger economy than expected, it puts a new light on the situation.

    • Posted By: McLovinB @ 06/03/2009 10:39:40 PM

      Bruce, if you have enjoyed Google Maps, check out satelllite photos taken at night.

      Maybe you will see the analysis presented above in a new "light": if North Korea has such a strong and vibrant economy, how come they use candles and lightning bugs after the sun goes down?

  • Posted By: airborne33 @ 06/03/2009 9:01:34 AM

    Sorry, I have no remorse for anyone who would rather build a missle than feed his people. Why are we wasting our time with this guy? Take him out, one way or another.

  • Posted By: airborne33 @ 06/03/2009 9:09:51 AM

    Grow some sack, or bring back bush!

    • Posted By: hlgns763 @ 06/03/2009 5:07:26 PM

      yeah, he would show up on the first day with the "mission accomplished" banner under his arm...

      i say, send some black ops/rangers/green berets, or hire some higly qualified mercs to take him and his family out. bomb the air fields, bunker buster the silos, and be done with it. let the people revolt and over throw who remains. then we can step back in and bring back democracy. no need to wage a war that can be solved over night with a talented sniper.

      i make it sound easy, obviously it is not as easy as i make it seem.

      hell, find someone on the inside that is disloyal and have kim get stabbed in the back by his own people. of course that would come with a price...

  • Posted By: CouldCareLessAnymore @ 06/03/2009 12:30:07 PM

    Starting back in the 90`s the Untied States was paying for 88% of the subsidized food going into that country so they could concentrate on their nuke program. So the answer is you paid for it...

    • Posted By: hlgns763 @ 06/03/2009 4:58:34 PM

      isnt it funny how we seem to help these people/countries gain power with our tax money, then they turn around and want to kill us? or at least threaten us? i wish we would go back to being a neutral country...

      "there has never been a good war, or a bad peace"-benjamin franklin

  • Posted By: Aditya Mookerjee @ 06/03/2009 1:30:06 PM

    It is no surprise, because North Korea needed some economic prowess, for China to help out economically. China cannot give North Korea goods for free, otherwise.

  • Posted By: Black Knight @ 06/03/2009 9:19:33 AM

    Your numbers are not exaclty correct. Try reading this and you might get some idea of how far off you are: http://yaleglobal.yale.edu/display.article?id=1546 North Korea is the largest proliferator of missle technology sales in the world. Your numbers appear to be about 400 million dollars off.

  • Posted By: Black Knight @ 06/03/2009 9:17:25 AM

    You need to go back to school and recheck you information as it is a little left and not very accurate. Try reading this http://yaleglobal.yale.edu/display.article?id=1546 and you will see that your figures on weapon proliferation are about 440 Million dollars off. They are the largest sell of missle technology in the world today.

  • Posted By: denvermorgan@gmail.com @ 06/03/2009 8:12:38 AM

    opsolete weapons will still kill you just as dead as new ones!

    • Posted By: chucks55chevy @ 06/03/2009 9:10:03 AM

      My simple reply is 'GREED". Any nations business's other than food with this country is done out of shear greed.

  • Posted By: airborne33 @ 06/03/2009 9:07:08 AM

    Why are we so surprised that people will do anything for money? Even if it means trading with satan himself. NOT a new concept.

  • Posted By: hlgns763 @ 06/03/2009 9:06:22 AM

    SEND IN TEAM AMERICA!!!!! KIM IS IN CAHOOTS WITH ALEC BALDWIN!!!

  • Posted By: airborne33 @ 06/03/2009 9:04:39 AM

    There is no use in polotics, when it comes to satan!

  • Posted By: airborne33 @ 06/03/2009 9:02:33 AM

    Sorry, I have no remorse for anyone who would rather build a missle than feed his people. Why are we wasting our time with this guy? Take him out, one way or another.

  • Posted By: sicandtyred @ 06/03/2009 8:28:13 AM

    I can't understand why all the nations trading with n. korea want to have anything to do with this country since it has violated the u.n. agreements. Since the u.n. is made up of the EU that belong to the u.n. it speaks sanctions on one hand and turns it's back on the other since a buck can be made.. This has to make those nations who do business with NK the biggest hippocrites in the universe.

  • Posted By: McLovinB @ 06/03/2009 4:32:04 AM

    And that is what you get from the mixed bag of carrot and stick policies used to deal with North Korea. Had it been all carrots, they would be about where China is today. Had it been all sticks, it would be where Afghanistan is today. Here it is, in between... a Stalinist state that blows its meager fortunes on the fourth largest military in the world and nukes for the cherry on top. One would think all those guns would get some respect, but although Pyongyang has embassies all over the world, presumably gathering as much information as they can, only 25 countries think that North Korea is important enough to merit an embassy. Imagine how busy those offices must be... >yawn<.

    What the article seems to gloss over is that even with an economy of 40 billion dollars, with some growth, if that becomes allocated to military hardware, soldier uniforms, embassy maintenance, parade ribbons, nuclear weapons, etc., there is not a lot left over for food, medicine, textbooks, and productive investment. 40 billion dollars COULD solve a lot of problems, but it apparently will not in North Korea.

    Unable to support its own technological infrastructure and military, it is still in quite a bind, trading all its butter for guns. Maybe it is hoping to trade some guns for butter in the near future? Assuming that trade is not the only answer, what vibrant sector of the economy will soak up millions of unemployed soldiers? Consumer products? Auto production? Textiles? Educational excellence? Information services? This year's outcomes aside, systemically speaking, it is hard to imagine what North Korea expects to pin its future hopes on. Disco mirror balls and bell bottom jeans, perhaps? 1--2% growth is not even matching depreciation in its manufacturing and agrarian economy, after all, so North Korea is still losing productive capacity each year as it destroys its topsoil. It is not evolving structurally, It is rusting.



    The article ignores ideology in an attempt to assess North Korea's productive capabilities fairly. But because North Korea's political and economic systems ARE ideology writ large, how can such an assessment be meaningful?

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