January 2, 2007: The United States has gotten North Korea's attention, and in an unexpected way. By telling the world's banks that they will be cut off from access to the U.S. banking system if they do business with North Korea, the North Koreans suddenly find that many of their criminal activities are much more difficult, if not impossible, to carry out. The American plan was accompanied by U.S. government officials giving a compelling presentation detailing North Korean crimes, and abuse of the international banking system. This convinced all the major international banks that it was not worth the trouble, and risk, to do business with the North Koreans. As a result, North Korea has put regaining access to the banking system at the top of its list of demands. The U.S. has told North Korea that, if the nuclear weapons and ballistic missile programs are shut down, along with the drug dealing and counterfeiting, American banking restrictions would be lifted. The North Koreans are fuming over that, and are getting desperate, as can be seen in the attempt to sell their gold reserves.
December 28, 2006: North Korea is attempting to circumvent American banking restrictions by registering with a London gold trading organization, in preparation for a sale of its gold reserves (of some $25 billion). The gold is the North Korean emergency reserve, and when it is being sold, it means the north is out of options. Several hundred million dollars worth of gold was sold in 2006, apparently in barter deals, outside the banking system. |