by Gregory Elich

North Korea, it is often said, is a criminal state. One of the more persistent stories supporting that allegation is that the North Koreans are counterfeiting U.S. currency. Through repetition, the claim has taken on an aura of proven fact. This in turn has been cited as justification for everything from imposing punitive measures against North Korea to suggesting that the nation cannot be trusted as a partner in nuclear negotiations.

The evidence against North Korea is widely regarded as convincing. “The North Koreans have denied that they are engaged in the distribution and manufacture of counterfeits,” says Daniel Glaser of the U.S. Treasury Department, “but the evidence is overwhelming that they are. There’s no question of North Korea’s involvement.”1 There is no denying that North Korean citizens have been caught passing counterfeit currency in Europe and Asia, and some defectors from the Democratic People’s Republic of Korea (DPRK — the formal name for North Korea) claim to have first-hand knowledge of state-run counterfeiting operations. In Western media reports the case is treated as proven. Yet the closer one examines the matter, the murkier the picture becomes.

Counterfeit currency attributed to North Korea raises deep concern due to its extremely high quality. Dubbed supernotes, their production process closely matches that of the genuine article, and the engraving is so fine it rivals that of the U.S. Bureau of Engraving and Printing.2

Unlike most of the world’s counterfeit currency, which is printed on offset presses or through digital processes, supernotes are printed on an intaglio press. The Bureau of Engraving and Printing uses Giori intaglio presses for the engraved portions of its bank notes, and an offset press for the background colors. Supernotes use the same technology. An intaglio press operates by applying ink on its plates and then wiping them clean, leaving ink only in the engraved lines. The plate is then pressed against the paper, depositing the ink in ridges. The result is raised printing that ordinary counterfeits can’t duplicate. Supernotes have the same look and feel as U.S. currency. (more…)

The House passed legislation Thursday to change the composition of pennies and nickels, addressing dramatic rises in metal prices that have made the coins more expensive to produce than their face value.

Action now moves to the Senate, where the Banking, Housing and Urban Affairs Committee has a similar bill, though no action has yet been scheduled.

According to the U.S. Mint, it costs 1.26 cents to make a penny and 7.7 cents to make a nickel. The House bill, sponsored by Zack Space , D-Ohio, estimates that reducing the cost of penny production to face value would save approximately $500 million over 10 years, while similar changes to nickel production would save $60 million annually.

“Right now our government is needlessly throwing away money in the production of coins,” Space, a member of the fiscally conservative Blue Dog Coalition, said during floor debate on the bill May 6.

The measure would allow for the minting of pennies made primarily of steel but coated with a copper-colored dye so they appear similar to the current zinc-copper alloy. It also would require the production of 5-cent coins made primarily of steel, with a coating of nickel, in place of the nickel-copper composition originally authorized in 1866 when the coins were first minted.

The last time the penny and the nickel were produced at face value was fiscal year 2005, according to the Mint. (more…)

By  WERNER MENGES for the Namibian 

THE discovery of a treasure-laden shipwreck, estimated to be around 500 years old, in Namdeb’s Mining Area 1 near Oranjemund early last month is only the first chapter in what could turn into a long slog of archaeological detective work to unravel the secrets of an ill-fated pioneer of sea travel off the Southern African coast.

The easy part of working on an archaeological site like this is the digging up of the site and recovering relevant material from it, archaeologist Dieter Noli, who played a leading part in the first examination of the wreck site in April, told The Namibian in a telephonic interview from Cape Town yesterday.

The hard work is analysing what was found at the site, he said.

That is expected to be painstaking labour that could take months before it is even known what the real significance of the discovery is, he said.

He is convinced, though, that he and his colleagues who will be helping to study the wreck and its contents will eventually be able to find out whose ship this was and what business it was on when it came to an end on that barren stretch of Namibian coastline, Noli indicated.

“We have to piece together the puzzle.  It’s a fascinating story,” he said. (more…)