Little Iceland kicks UK in the face

[LVMises]

Quote from Martinghoul:

I think you have this all wrong, guys...

Iceland is f*cked, really f*cked. They simply have nothing to lose at this point (except, of course, the IMF lifelines and what little remains of their credibility; see how they immediately got downgraded, as soon as the news came out). That's the reason why they're still playing games with Icesave, not because they want to stand up for what's right and show The Gord and the UK public who's boss.

I agree.

They signed up to play the game, read the rules, and now because they made some bad moves they don't want to play anymore.

 

[makloda]

Quote from zdreg:

http://finance.yahoo.com/news/UK-wa...0.html?x=0&sec=topStories&pos=5&asset=&ccode=

This should be a warning that declining economic powers including the US cannot push small countries around.

Pushing small countries around? Warning? Iceland went belly up, maybe you missed the news.

Iceland should be nuked instead of just pushed around, as a warning to others.

 

[clacy]

Quote from Ivanovich:

I've not read news stories (and I've looked) for starving Icelanders, or how the locality has collapsed and people are running through the street with weapons, rioting.

So what's f*cked? The banking industry? They seem to be doing ok otherwise. Interesting, isn't it?

That's what a lot of doomsdayers don't get. They really feel that any day now, all societal structures will collapse and it will be Thunderdome instantly.

 

[Martinghoul]

Quote from Ivanovich:

I've not read news stories (and I've looked) for starving Icelanders, or how the locality has collapsed and people are running through the street with weapons, rioting.

So what's f*cked? The banking industry? They seem to be doing ok otherwise. Interesting, isn't it?

Huh? Let's just see, shall we?

Unemployment rate: 2007 - 1%, 2009 - 8%
Average inflation: 2007 - 5%, 2009 - 12%
Sovereign rating: 2007 - Aaa/AA/AA+, 2009 - Baa3/BBB+/BBB+ (that's below i-g; Moody's/S&P/Fitch LT local ccy debt ratings).
ISK trade-weighted: 2007 - 111, 2009 - 220 (ISK per foreign ccy; broad merchandise index, Iceland CB)
I could go on, but you get the idea...

So, indeed, apart from 8x the unemployment, twice the inflation, ccy with half the purchasing power and no creditworthiness to speak of, Iceland is doing just fine... I wonder why they need those IMF loans at all.

 

[Scataphagos]

Quote from clacy:

That's what a lot of doomsdayers don't get. They really feel that any day now, all societal structures will collapse and it will be Thunderdome instantly.

Not "instantly", but if we degrade to turds over a relatively short time, what's the diff?

 

[jorgez]

all this business makes Argentina seem like a pillar of morality

 

[Ivanovich]

Quote from Martinghoul:

Huh? Let's just see, shall we?

Unemployment rate: 2007 - 1%, 2009 - 8%
Average inflation: 2007 - 5%, 2009 - 12%
Sovereign rating: 2007 - Aaa/AA/AA+, 2009 - Baa3/BBB+/BBB+ (that's below i-g; Moody's/S&P/Fitch LT local ccy debt ratings).
ISK trade-weighted: 2007 - 111, 2009 - 220 (ISK per foreign ccy; broad merchandise index, Iceland CB)
I could go on, but you get the idea...

I'd like to compare this to the United States, if I may.

Iceland: Unemployment rate: 2007 - 1%, 2009 - 8%

the US: Well, if you believe the BLS (hahah!) then 10%. If you don't, it's far, far worse. And it was NEVER 1% here.

Iceland: Average inflation: 2007 - 5%, 2009 - 12%

The US: Once again, if you believe government (I'd laugh, but I laughed too hard previously) then 2%ish. If you don't, you'll follow Shadowstats to a higher number. I wonder if that stat for iceland takes out food and energy (LOL).

Sovereign rating for Iceland degraded, but for the US it didn't, which has nothing to do with it's citizens getting food on their table in everyday life. Hell, they'll probably come out of this better off as they will be forced to reign in fiscal measures. MUCH more than I can say for the charade that is the US and the ratings companies bullshit in regards to the US.

I could go on and on, too.

 

[clacy]

Quote from Scataphagos:

Not "instantly", but if we degrade to turds over a relatively short time, what's the diff?

If the US were to have a complete economic collapse, I think a more realistic fear, than the Mad Max scenario, would be to gravitate toward a totalitarian form of government.

 

[Martinghoul]

Quote from Ivanovich:

I'd like to compare this to the United States, if I may.

Iceland: Unemployment rate: 2007 - 1%, 2009 - 8%

the US: Well, if you believe the BLS (hahah!) then 10%. If you don't, it's far, far worse. And it was NEVER 1% here.

Iceland: Average inflation: 2007 - 5%, 2009 - 12%

The US: Once again, if you believe government (I'd laugh, but I laughed too hard previously) then 2%ish. If you don't, you'll follow Shadowstats to a higher number. I wonder if that stat for iceland takes out food and energy (LOL).

Sovereign rating for Iceland degraded, but for the US it didn't, which has nothing to do with it's citizens getting food on their table in everyday life. Hell, they'll probably come out of this better off as they will be forced to reign in fiscal measures. MUCH more than I can say for the charade that is the US and the ratings companies bullshit in regards to the US.

I could go on and on, too.

Well, if a eightfold rise in the unemployment rate doesn't convince you, I don't really know what will...

Maybe you wanna read about the Kitchenware or 'saucepan' Revolution (Búsáhaldabyltingin). While reading, do remember that Icelandic people are not known for their tempers...

 

[Lethn]

Did any of you lot know that the Denmark navy once beat the living crap out of the UK navy? These assholes are not as powerful as they are arrogant and cowardly.