Twelve citizens were recently executed by the government in North Korea...
They were protesting against a new government regulation that would have made everyone "more equal."
North Korea had asked everyone to turn in all their money. The government was creating new bills, lopping two zeros off the old bills. But it was the final part that drove citizens crazy...
The North Korean government said it would only give out a maximum of $40 worth of new money per citizen. That would effectively wipe out the savings of everyone in the nation.
The goal of this new regulation was to "clamp down on a growing free-market economy and reassert the government's control."
After the announcement, riots started in the markets. They ultimately led to the 12 executions.
This week, the government backtracked... a bit. It has raised the limit you can get to about $200.
The government also just announced citizens can eventually deposit all of their old bills in North Korean government banks... provided they can legitimately explain how they got them.
But if you live in North Korea, you don't typically put your money into banks because of two very real fears: 1) that government investigations into your dealings could lead to arrest and 2) that the banks will lock you out of or confiscate your deposits (as has happened in the past).
North Korea didn't have to end up here. North and South Korea started from the same point a half-century ago.
South Korea became a free-market economy. It opened itself to trade and investment. And it went from nothing to the 13th largest economy in the world today.
North Korea is a government-controlled economy. The people are repressed and dirt poor. The North Korean government used its power to make everyone equal – it made them all equally dirt poor.
If in your dreams you believe giving the government power is the best way to improve things... and if you believe a government with a goal of making everyone equal is doing noble work... then think long and hard about North Korea.
The lesson is obvious... freedom and markets create wealth, not the government.
Our colleague Dan Ferris just made his readers 197% on the kind of stock he told us about early this year. And he's going to do it again...
You see, most mining insiders love "royalty companies." These companies avoid the dirty work of digging up rocks and processing ore. They simply invest in a lot of early-stage projects and collect income streams off the ones that become producing mines.
One of Dan's favorite royalty companies is Extreme Value recommendation International Royalty. This small cap is up huge this year... and it just soared to a new high on buyout rumors.
As we've mentioned many times in the past, the mining sector is set to enjoy a major uptrend in the coming years. Royalty companies are an incredible way to play it. And right now, Dan is pounding the table on the next royalty company set to rise hundreds of percent, which we encourage you to become familiar with immediately. You can learn how to access his report here.
Wednesday, December 16, 2009 eBay's web traffic has collapsed Why eBay and Craigslist are suffering gigantic traffic declines...
What to Do If You Haven't Bought Gold By Chris WeberThursday, December 17, 2009
The ardor of the past few weeks about gold has to be cooled down a bit before the next phase can begin. To me, gold started to sprint during the last three months. And no sprinter can go on forever. He has to rest, to exhale. After that, he can continue his run.
Moving to Haiti... Because It's Better Than the States By Dr. Steve SjuggerudWednesday, December 16, 2009
Then he went on a Rush Limbaugh-style tirade about undeliverable government promises on health care and the environment, and out-of-control government spending. He finished with: "At least the Haitian government knows it is out of money."
The Skyscraper Curse By Tom DysonTuesday, December 15, 2009
It happened in America before the Great Depression. Architects unveiled two awesome new skyscrapers – the Chrysler Building and the Empire State Building – just as the worst bear market in America's history was getting started.
Today's Biggest Bets Against the Crowd By Tom DysonMonday, December 14, 2009
The surest way for you to make a quick buck in the stock market is to bet against the crowd at extremes. When you see traders all piling onto the long side of the market, and ignoring the short side, you know betting on the short side is more likely to show the profit. This is called contrarian trading.
