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Activists pressure charities to move galas from Trump's Mar-a-Lago

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NewsHubThe first thing you should know about Palm Beach is that it’s an island (unto itself) – the most exclusive town in America, and (according to wri…
But Mr. Trump’s election puts charities in an awkward position over choosing the resort — recently dubbed the president’s Winter White House — for events they may have planned more than a year in advance.
With Mr. Trump placing a moratorium on refugees and immigrants from seven Muslim-majority countries and his promises to dismantle the Affordable Care Act, activists are pressuring charities such as the Dana-Farber Cancer Institute and the Cleveland Clinic to move or cancel their galas this month.
As the American Red Cross held a gala fundraiser Saturday at Mar-a-Lago, about 3,000 demonstrators marched nearby to protest Mr. Trump’s now-blocked executive order temporarily limiting immigration. The Saturday protest began with a rally outside Trump Plaza in West Palm Beach and the march headed two miles to Mar-a-Lago.
Hundreds of people also protested in Miami, holding signs and standing in opposition against Mr. Trump’s executive actions on immigration, CBS Miami reported. “No hate! No fear! Refugees are welcome here,” the crowd chanted. Protests took place in other cities across the country.
The event near Mar-a-Lago on Saturday ended peacefully, and there were no arrests. So far, no known Mar-a-Lago charity events have been moved or canceled.
More than 2,000 people, including faculty and students from Harvard Medical School, have signed an online petition demanding that Boston-based Dana-Farber move or cancel its Feb. 18 “Discovery Celebration,” featuring a performance by Grammy Award winner David Foster. The cheapest ticket is $1,250.
Petition organizer George Karandinos, a 30-year-old Harvard medical student from Houston, said he understands that canceling or moving the Dana-Farber event would be difficult, “but they can make a public moral stand that is in line with their stated values” of diversity and supporting scientific exchanges across borders. Plus, he said, a cancellation might attract additional donors.
A similar open letter, signed by more than 1,100 including doctors and medical students, demands that Cleveland Clinic move its Feb. 25 “Reflections of Versailles: A Night in the Hall of Mirrors” gala. Its cheapest ticket also is $1,250.
Both Dana-Farber and the Cleveland Clinic said they won’t move or cancel their events, but added that it doesn’t mean they support the president’s policies. Applications filed with the town of Palm Beach show Dana-Farber expects to raise $1.25 million after paying expenses of $250,000. The Red Cross says it will make $950,000 after spending $400,000. A portion of those expenses would go to Mar-a-Lago. The town did not immediately release Cleveland Clinic’s application.
Dana-Farber President Dr. Laurie H. Glimcher issued a statement saying she shares the protesters’ concerns about the immigration moratorium and what it will mean for doctors, scientists, students and patients from the affected countries, but that the protesters are unrealistic.
“The forthcoming fundraiser in Palm Beach is planned many months in advance, and raises critical funds to support this lifesaving work. Contracts have been signed, and a large number of people have committed to attend. Cancelling the event outright would only deny much-needed resources for research and care,” she said.
The Cleveland Clinic issued a similar statement.
“The sole purpose of our event in Florida is to raise funds for important research to advance cardiovascular medicine that improves patient care,” spokeswoman Eileen Sheil said. “In no way is this connected to anything else but helping patients. The event has been held there for years, well before the election.”
Mar-a-Lago director Bernd Lembcke didn’t return a call seeking comment. The Trump Organization didn’t respond to an emailed request for comment.
President Trump travels to his Mar-a-Lago club in Florida for the first time since his inauguration. The Red Cross says he’s expected to attend i…
Photos of the ballroom complex, including the Donald J. Trump Grand Ballroom, show large open spaces lighted by chandeliers and surrounded by massive archways and columns. Bathroom fixtures are gold-plated. The walls, ceiling and columns have intricate decorations gilded with gold leaf. Many organizations have been using the venue for years to host their wealthiest donors.
Mr. Trump opened the 20,000 square-foot ballroom complex in late 2005 — the inaugural event was the reception for his wedding to Melania Trump. He told reporters the complex cost $35 million, but Palm Beach building records indicate the cost was lower, likely no more than $15 million.
Mary Simboski, who teaches in Boston University’s fundraising management program, said that while she could not speak to any specific event, major galas like the ones the Cleveland Clinic, Red Cross and Dana-Farber are throwing take a year to plan and are a major part of an organization’s fundraising operation.
Picking a site like Mar-a-Lago often comes down to location, size, cost and availability, she said, and has nothing to do with politics. Projecting that the groups could perhaps garner more financial support by canceling the event is wishful thinking, she said.
“Hope is not a strategy,” Simboski said.

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Trump taps Mike Pence to lead panel investigating mass voter fraud

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NewsHubThe president made the announcement in an interview with Fox News host Bill O’Reilly that aired Sunday, televised just hours before the Super Bowl sporting event.
“I’m going to set up a commission to headed by Vice President Mike Pence and we’re going to look at it very, very carefully,” the president told O’Reilly.
President Trump said he will launch an investigation into what he calls widespread voter fraud in the 2016 election. He maintains votes were cast…
Despite a lack of evidence to back up his repeated claims of widespread voter fraud, the president has continued to press the issue. Even after his inauguration, Mr. Trump insisted he would have won the popular vote (which he lost to Hillary Clinton by nearly three million ballots) if it weren’t for illegal votes cast.
Mr. Trump has yet to keep his long-standing promise to issue executive actions ordering an investigation into the alleged fraud.
In his interview, O’Reilly pushed back on the president’s claims, telling Mr. Trump, “you gotta have data to back that up.”
In response, the president said to look at voter registrations as proof.
“When you look at the registration and you see dead people that have voted, when you see people that are registered in two states, that have voted in two states, when you see other things, when you see illegal people that are not citizens and they are on the registration roles — look, Bill, we can be babies, but you take a look at the registration, you have illegals, you have dead people you have this, it’s really a bad situation, it’s really bad,” Mr. Trump said.
The Fox News host continued to press him for evidence.
“The data already shows that 3 million illegals voted?” O’Reilly questioned.
“Forget that, forget all that,” the president said in response. “Just take a look at the registration and we’re going to do it.”

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Trump's remarks on Russia draw sharp GOP rebuke

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NewsHubSenate Republicans are balking at President Trump’s latest defense of Russian leader Vladimir Putin.
In an interview with Fox News’ Bill O’Reilly scheduled to air today, Mr. Trump seemed to dismiss criticisms of the Russian president as a “killer” and appeared to equate the foreign power’s morality with the U. S.
“I do respect him,” the president said of his Russian counterpart. “I respect a lot of people but that doesn’t mean I’m going to get along with him.”
When the Fox News host said, “Putin’s a killer,” the President Trump responded by saying: “There are a lot of killers. We’ve got a lot of killers. What, you think our country is so innocent?”
But despite the warmer relationship Mr. Trump may be trying to build with Moscow , his words have already had a chilling effect on some Congressional leaders at home.
When Senate Majority Leader Mitch McConnell was grilled by CNN anchor Jake Tapper about Mr. Trump’s interview, McConnell offered up a mild rebuke of the statements.
“Does it trouble you that he said this?” Tapper questioned the Kentucky Republican. “I’m trying to imagine your response if President Obama defended the murderous reign of Vladimir Putin by saying, ‘you think our country is so innocent?’”
“I’m not going to critique the president’s every utterance,” McConnell responded. “But I do think America is exceptional, America is different, we don’t operate in any way the way the Russians do.”
“I think there’s a clear distinction here that all Americans understand,” added McConnell. “And no, I would not have characterized it that way… I don’t think there’s any equivalency between the way that the Russians conduct themselves and the way the United States does.”
The majority leader said he “obviously” doesn’t “see the issue the same way [Mr. Trump] does.”
Sen. Marco Rubio, R-Florida, gave a more strident statement Sunday in response to the president’s comments about Putin, and alluded to the Russian leader’s reported use of nefarious techniques to get his political opponents out of the way.
When has a Democratic political activists been poisoned by the GOP, or vice versa? We are not the same as #Putin. MR
Rubio then escalated his criticism of Putin, blasting the Russian president for “violations” of Ukraine’s “sovereignty,” a reference to Russia’s annexation of Crimea and the ongoing war along Ukraine’s eastern border.
Only reason we should ever lift sanctions on #Putin is if he meets conditions of sanctions & ends violations of #ukraine sovereignty. MR
Another Republican senator, Ben Sasse of Nebraska, came out with his own fierce condemnation of Mr. Trump’s remarks.
“Is the U. S. at all like Putin’s regime? Not at all,” Sasse told ABC News in an interview Sunday. He went on to enumerate the differences: “The U. S. affirms freedom of speech; Putin is no friend of freedom of speech. Putin is an enemy of freedom of religion; the U. S. celebrates freedom of religion. Putin is an enemy of the free press; the U. S. celebrates free press.”
He added: “There is no moral equivalency between the United States of America — the greatest freedom-loving nation in the history of the world — and the murderous thugs that are in Putin’s defense on his cronyism.”
The staunchest defense of Mr. Trump’s comments has come from within his administration.
On Sunday, Vice President Mike Pence said on CBS’ “Face the Nation” that Mr. Trump was only expressing a willingness to “start afresh with Putin and to start afresh with Russia.”
“I simply don’t accept that there was any moral equivalency in the president’s comments,” Pence said. “Look, President Trump throughout his life, his campaign, and in this administration has never hesitated to be critical of government policies by the United States in the past. But there was no moral equivalency.”
Democrats, predictably, have also expressed their outrage at Mr. Trump’s sentiments.
Sen. Amy Klobuchar of Minnesota said in an interview on ABC News that she “resent[s]” that the president would equate Russia with the U. S.
“You cannot compare any leaders in our country to what Vladimir Putin has done,” Klobuchar said. “This is a man and a regime that has taken down a passenger plane in Ukraine, killing hundreds of people. This is a regime that has been known to poison human rights activists.”

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Man facing murder charge in slaying of NYC jogger

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NewsHubLast Updated Feb 5, 2017 3:44 PM EST
Queens District Attorney Richard Brown said 20 year-old Chanel Lewis, of Brooklyn, was expected to be arraigned later Sunday. The charge carries a penalty of 25 years to life in prison if he’s convicted. No information on an attorney for him was available.
Lewis was arrested Saturday night. Chief of Detectives Robert Boyce said Lewis “made detailed, incriminating statements and admissions” to detectives when he was arrested.
Karina Vetrano was killed Aug. 2 after going for a run not far from her Queens home. Her father later discovered her badly beaten body in a secluded marsh.
WATCH: Authorities give an update on the investigation into the murder of Queens jogger Karina Vetrano. Full story: http://cbsloc.al/2jR1c6L
CBS New York reported that, according to officials speaking at a news conference Sunday morning, DNA evidence found on Vetrano’s body linked Lewis to the crime.
“Karina helped us identify this person,” Boyce said. “She had the DNA under her nails, she had touch DNA on her back and there was more DNA on the cell phone. That’s how we were able to bring the profile up and that’s how we made the link.”
Karina Vetrano
Boyce said the encounter that led to 30-year-old Vetrano’s death apparently was a chance one.
He says DNA evidence led to the arrest. Genetic material found under Vetrano’s fingernails and on her phone and neck resulted in a DNA profile.

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У МЗС Німеччини сподіваються на зближення США з Росією не за рахунок інтересів України та ЄС

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NewsHub“Але якщо буде зниження напруженості між цими двома світовими державами, то це буде добре для розвитку події в Сирії, для розвитку подій в Україні”, – заявив керівник МЗС ФРН після повернення зі США в неділю, 5 лютого.
За словами Габріеля, Білий дім поки що перебуває в пошуку нової стратегії у відносинах з Кремлем.
“Для нас, німців і європейців, все ясно: ми не можемо терпіти, що одна країна в Європі змінює кордони, як це зробила Росія. Американці бачать це так само”, – підкреслив міністр.
Коментуючи ситуацію в Авдіївці, Габріель зазначив, що відповідальність за ескалацію лежить на обох сторонах конфлікту.
Як повідомлялося, раніше Трамп заявив, що поважає Путіна і готовий співпрацювати з РФ для спільної боротьби з міжнародним тероризмом.
“Я поважаю його. Я багатьох людей поважаю. Це не означає, що я збираюся жити з ним. Я кажу, що краще ладнати з Росією, ніж ні, і якщо Росія допомагає нам у боротьбі проти бойовиків ІДІЛ, що є головним протистоянням, а також ісламським тероризмом у всьому світі – це хороша річ”, – сказав Трамп в інтерв’ю журналісту Біллу О’Рейлі.
Нагадаємо, раніше США послабили санкції проти ФСБ Росії. Тепер можна здійснювати “деякі види операцій із ФСБ”, які раніше були заборонені. Зокрема, дозволені операції щодо ліцензування експорту в області електроніки. Пізніше в Білому домі назвали пом’якшення санкцій проти ФСБ “формальними діями”.

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Nach dem Fan-Skandal beim Leipzig-Spiel | Wie hart wird Dortmund bestraft?

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NewsHubFür die Randale außerhalb des Stadions fühlt sich der DFB nicht verantwortlich. Für die Schmähplakate auf der Tribüne wird es eine Strafe geben.
Mediendirektor Ralf Köttker: „Der DFB-Kontrollausschuss wird diesbezüglich Anfang der neuen Woche Ermittlungen einleiten.“
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Fahri Yardim & Christian Ulmen im BILD-Interview | Wir haben beide den Schwulen-Test gemacht

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NewsHubChristian Ulmen (41) ermittelte am Sonntag zum vierten Mal mit Nora Tschirner (35) im Weimarer „Tatort“. Von Kindesbeinen an ist er mit Fahri Yardim (36, Hamburger „Tatort“-Kommissar) befreundet. Zusammen spielen sie in der Video-on-Demand-Serie „Jerks“ (immer donnerstags neu auf Maxdome) zwei Trottel.
Im Doppel-Interview kommen die Schauspieler ins Schwärmen – vor allem übereinander – und sprechen über Männerliebe und ihre sexuelle Orientierung. Lesen Sie das komplette Interview mit BILDplus!
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"Tatort" aus Weimar – Und man fragt sich: Hä?

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NewsHubIm Weimarer “Tatort” wird Kakao getrunken, das Rosenbeet fliegt in die Luft und Oma holt die Armbrust raus. Wer darin Sinn sucht, wird enttäuscht. Alle anderen werden aber bestens unterhalten. Die Nachlese.
Die Erkenntnis :
Weimarer Tatorte sind besonders. War der Fall des “treuen Roy”, der es einfach nicht schafft, sich umzubringen, unangestrengt witzig , ist “Der scheidende Schupo” einfach nur gaga. Vergifteter Kakao erinnert an Schneewittchen, die verfeindeten Töchter eines Porzellan-Patriarchen an Aschenputtel und der tapfere Ludwig Maria Pohl ans tapfere Schneiderlein. Mit diesem Märchen-Medley wird man bestens unterhalten, wenn man unter einem guten Tatort nicht nur ein klassisches “Wer war’s? ” versteht.
Darum geht’s:
Ludwig Maria “Lupo” Pohl ist kakao-abhängig (Marke “Choco Genuss”) und ein Rosen-Fetischist. Er arbeitet seit Langem bei der Weimarer Polizei, wird aber von den Kollegen übersehen, nach dem Motto “Wie-heißt-der-nochmal? “. Das ändert sich allerdings, als seine Freundin Andrea Münzer in seinem Rosenbeet explodiert. Als sie wild auf die liebevoll gepflegten Rosen einhackt, trifft sie eine Fliegerbombe – und wumms! – wird sie in den Tod gerissen. Kurz darauf kippt Lupo um. Er wurde mit Rizin vergiftet und hat nur noch zwei Tage zu leben. Als wäre diese Koinzidenz nicht schon abgedreht genug, stellt sich heraus, dass Lupo Erbe einer bekannten Porzellanmanufaktur ist. Aber er ist nicht der einzige. Das klingt zwar nach Plot, ist aber so wirr miteinander verstrickt, dass man sich schlussendlich trotzdem kurz fragt: Hä?
Bezeichnender Dialog:
Kira Dorn und Lessing, liiert und inzwischen sogar Eltern, suchen im Schlossgarten nach der Rizinpflanze. Lessings Ausführungen animieren Dorn zum Knutschen.
Lessing: Der Wunderbaum – ricinus comunis. Gehört zur Familie der Wolfsmilchgewächse.
Dorn: Lessing, so was weiß man nicht. Das ist krank.
Lessing: Zur Rizinherstellung braucht man den Samen. Das Gift steckt in der Samenschale. Glycoprotein. Gehört zur Gruppe der ribosominaktivierenden Proteine. Ach, Quatsch – guck mal, das ist sogar eine ipsomis mirabilis. Das ist eine Zwergsorte. Die blüht nur im Sommer. Aber den Samen kann man aufbewahren.
Top:
Wer dachte, eine Explosion im Blumenbeet wäre das abstruse Highlight, wird von einer Kaffeekannen werfenden Porzellan-Erbin und der Armbrust schießenden Oma eines Besseren belehrt. An Verrücktheit ist dieser Tatort kaum zu übertreffen.
Flop:
Mit einem Tatort im klassischen Sinne hat er allerdings nichts zu tun. Macht aber auch nichts.
Bester Moment:
Andrea Münzer schreit. Sie hatte sehnlichst auf den Heiratsantrag von Lupo gewartet. Vergeblich. Auf dem “Steg der Wünsche”, der vor dem Porzellanmuseum in die Landschaft ragt, macht sie ihrer Enttäuschung und Wut Luft. Und wirkt mit diesem Schrei aus tiefster Kehle plötzlich ganz anders als das Mäuschen zuvor im Museum.
Beste Auftritte:
Vom kakaosüchtigen Lupo über die beiden verfeindeten Töchter des Porzellan-Patriarchen bis hin zur verschrobenen Ziehmutter und ihrem dödeligen Knast-Sohn Ringo: Jede der Figuren hat ihren ganz eigenen, großartig abgedrehten Tick.
Und warum nicht gleich Märchenfilme ansehen?
Die müssten ja ohne Nora Tschirner und Christian Ulmen als Dorn und Lessing auskommen. Und das wäre wirklich schade.
Die Schlusspointe:
Im letzten Moment stellt sich natürlich heraus, dass Lupo nicht sterben muss. Auf wundersame Weise hat er Antikörper auf Rizin entwickelt und überlebt. War ja klar, denkt der Zuschauer. Aber immerhin passt das Ende zur Märchen-Analogie: Lupo lebte glücklich bis ans Ende seiner Tage. Das ist fast zu schwach für diesen Tatort.
Die besten Zuschauerkommentare:

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Rumänen protestieren weiter gegen Regierung

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NewsHubDer Druck auf die erst seit einem Monat amtierende rumänische Regierung lässt nicht nach: Obwohl sie am Wochenende nach Massenprotesten ihr umstrittenes Dekret zur Strafminderung bei Korruption zurückgenommen hatte, gingen am Sonntag erneut hunderttausende Menschen gegen die Regierung auf die Straße. Landesweit beteiligten sich nach Schätzungen mehrerer Fernsehsender 500 000 Menschen an den Protesten, allein in der Hauptstadt Bukarest waren es bis zu 300 000 Teilnehmer.
Ministerpräsident Sorin Grindeanu von der Sozialdemokratischen Partei (PSD) hatte die Rücknahme des Dekrets am Samstag angekündigt, am Sonntag folgte das Kabinett mit dem entsprechenden Beschluss. Grindeanu kündigte statt der Eilverordnung einen neuen Gesetzentwurf an, der dieses Mal dem Parlament zur Abstimmung vorgelegt werden solle. Die Kehrtwende begründete er damit, er wolle eine “Spaltung” des Landes verhindern. Grindeanu lehnte in einem Fernsehinterview einen Rücktritt ab. Er habe eine “Verantwortung” gegenüber den Menschen, die seine Partei bei der Parlamentswahl am 11. Dezember gewählt hätten.
Doch die Regierungsgegner strömten auch am Sonntag auf die Straßen und forderten den Rücktritt der Regierung: Auf dem Siegesplatz in Bukarest, wo sich der Regierungssitz befindet, versammelten sich am Abend den Schätzungen der TV-Sender zufolge zwischen 200 000 und 300 000 Regierungsgegner. Zwischen rumänischen Flaggen, EU-Flaggen und Protestschildern hielten viele Teilnehmer ihre leuchtenden Smartphones hoch und riefen “Rücktritt” und “Diebe”.
Die Regierung wollte mit der Eilverordnung die Ahndung von Amtsmissbrauch deutlich erschweren. Unter anderem sollte Amtsmissbrauch nur noch mit Gefängnis bestraft werden, wenn der Streitwert über umgerechnet 44 000 Euro liegt. Nach Angaben von Grindeanu wird die 44 000 Euro-Grenze in dem nun angekündigten Gesetz “vermutlich” wieder fallengelassen.
Die Regierung hatte die Maßnahmen nach nicht einmal einem Monat im Amt am vergangenen Dienstag erlassen. Sie argumentierte, sie wolle damit die überbelegten Gefängnisse entlasten und die Strafgesetze mit der Verfassung in Einklang bringen. Von den Regeln hätten allerdings auch unzählige Politiker und Behördenvertreter profitiert – von denen viele der PSD angehören.
Der Parteichef der regierenden PSD, Liviu Dragnea, reagierte empört auf die Fortsetzung der Proteste und warf der Opposition vor, die Regierung stürzen zu wollen. “Wenn die Proteste nach der Rücknahme des Dekrets weitergehen, dann wird klar, dass es sich um einen nach den Parlamentswahlen (im Dezember) geschmiedeten Plan handelt”, um die Regierung zu stürzen.
Der Regierung aus Sozialdemokraten und Liberalen steht Staatspräsident Klaus Iohannis gegenüber, der zum Mitte-rechts-Lager gehört. Er hatte sich selbst an den Protesten gegen das Dekret beteiligt.

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North Korean economics 101: How much is a dollar worth?

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NewsHubPYONGYANG, North Korea — To get a feel for how North Korea’s economy works, go buy a roll of toilet paper. Or start up a mobile phone network.
As capitalist-style markets have grown more important in North Korea, so has a market-friendly exchange rate for the much-coveted U. S. dollars, euros and Chinese yuan that lubricate the North’s economy. But the official and unofficial rates are totally out of whack. And as one big investor recently found out, the difference can mean hundreds of millions of dollars in lost profits.
Dueling exchange rates are a common issue for developing countries that have an official premium rate set by the government, often for political purposes that don’t reflect economic realities and are therefore often ignored in the marketplace.
The discrepancy can severely hamper foreign investment, undermine confidence in the local currency and contribute to corruption and economic instability.
But nowhere in the world is the gap bigger than North Korea, according to Steve Hanke, a professor of applied economics at the Johns Hopkins University who specializes in hyperinflation,
“The North Korean won’s black market premium is the highest in the world: a fantastic 6,440 percent,” he said. For comparison’s sake, the black market premium for the Syrian pound is “only” 144.3 percent of the official rate, he said.
What does such a system look like on the ground?
If you pick up that roll of toilet paper in a shop catering to foreigners, tourists or the relatively affluent elite in the capital, it would probably have a price tag in the 200-400 won range, or $2-4. The prices in won are calculated according to the official exchange rate. In reality, you can’t actually pay in won, at least not at that rate.
Typical Pyongyang residents, meanwhile, are more likely to do their shopping at a place like the Kwangbok Department Store, which does take won and therefore uses an entirely different pricing system. Here, a roll of toilet paper costs 1,400 won. An exchange booth right next to the checkout counter posts the day’s rates — not the official 108-or-so won to the dollar, but a whopping 8,000-plus.
“The official rate is a political rate,” Hanke said. “It is, therefore, totally arbitrary and no one really knows how it is determined. The black-market rate is a free-market rate. The supply and demand for dollars and won on the black market calls the tune and sets the rate.”
Most North Koreans don’t have foreign currency to begin with and don’t shop in upscale stores, so the system is fairly invisible most of the time.
On a larger scale, it has major ramifications.
One of North Korea’s biggest recent success stories has been the rapid spread of mobile phones, now in the millions, thanks to capital and expertise invested by the Egyptian conglomerate Orascom. The venture, Orascom Telecom Media and Technology, was hugely profitable, but rather predictably hit a big wall when it tried to get its earnings out of North Korea.
In late 2015, it announced a huge loss after North Korea insisted it use the unofficial rate to convert its profits into dollars, turning what would have been $450 million into a mere $8 million.
CEO Naguib Sawiris resigned on Jan. 1 this year.
Sawiris refused to comment to the AP until after the company releases its next financial report. But the company, which has staff working out of a hotel in Pyongyang, is apparently still waiting to get even its $8 million out of North Korea.
The importance of the unofficial exchange rate has grown tremendously since the 1990s, when the collapse of the Soviet bloc and natural disasters that devastated harvests took North Korea’s economy to the verge of collapse. Citizens who previously relied on the government for their needs had to learn how to fend for themselves.
The result was the rise of an unofficial, but by now well-established, capitalist-style market, where prices are competitive and determined by supply and demand. Transactions are primarily made in cash. Outside experts estimate that half or even more of all economic activity in the North is done in this gray zone.
The transformation has not been without its shocks.
In 2009, leader Kim Jong Un’s father, Kim Jong Il, ordered a revaluation of the won, effectively cutting two zeros off the value of each bill. That appears to have been an attempt to reassert control over nouveaux riches who had profited too much from the gray market and were seen as a potential political threat.
That put the country through a severe bout of hyperinflation from late 2009 to early 2011. Monthly inflation peaked at 496 percent in March 2010, according to Hanke’s calculations, and the value of the won on the black market collapsed.
To the surprise of many, the won appears to have rebounded and stayed within a fairly stable range, both officially and at the unofficial rate, since Kim Jong Un assumed power in late 2011.
“This is a major quandary, and an apparent success story of the Kim regime,” said William Brown, an adjunct professor at Georgetown University and non-resident fellow at the Korea Economic Institute of America. “I think for the time being people are getting used to monetary stability and that is allowing a big increase in market activity and growth.”
He warned, however, that the stability could be fragile.
“Some kind of shock would instantly cause people to trade in their won for dollars and the exchange rate and won prices would soar,” he said.
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