Posts Tagged ‘Arsonist’

What Fear And Confusion Will Get You

Friday, March 19th, 2010

Are you confused as to why the Independence Party is now topping the polls with 40,3% and adding 11 new members of Althingi if the vote were today?

Don’t be. Voters are illogical, as is evident by this excellent summary from an article in Time. They would even vote for the party which caused the biggest economic downfall worldwide in recent history:

With these acts of legislative sabotage, Republicans tapped into a deep truth about the American people: they hate political squabbling, and they take out their anger on whoever is in charge. So when the Gingrich Republicans carried out a virtual sit-down strike during Clinton’s first two years, the public mood turned nasty. By 1994, trust in government was at an all-time low, which suited the Republicans fine, since their major line of attack against Clinton’s health care plan was that it would empower government. Clintoncare collapsed, Democrats lost Congress, and Republicans learned the secrets of vicious-circle politics: When the parties are polarized, it’s easy to keep anything from getting done. When nothing gets done, people turn against government. When you’re the party out of power and the party that reviles government, you win.

From Time.com

It might have been a politically tactical mistake for the parties on the left to ask for an election in 2009. By taking the helm at this lowest point in Iceland’s history they have put themselves in the firing line, especially the Social Democrats who suffer the biggest damage.

Voters are strange like that. They’d rather blame the fire department than the arsonist if the fire is damaging enough.

And by delaying an IceSave solution, the opposition has cost the country dearly in lost recovery time. But the voters blame the government. That is the nature of the beast. This is fear and confusion at work.

But many of us who agree that this government is a better option than anything with the party which orchestrated the downfall have been really disappointed. Maybe things would be a little bit different if the Social Democratic / Left Green fire department had concentrated on putting out the fires in the bedrooms instead of the wine cellar?

Before the Independence Party has gone through reform and kicked the bad habits that are the fishing lobby and David Oddson’s isolationism, the Independence Party can not be allowed back into government. It would not necessarily be in their best interests to reclaim their seat in government until after the ghosts of the past have been exorcised. When that happens, the Independence Party will have moved significantly towards the spectrum where Social Democrat voters believe their party should be.

The most critical number in the poll for any of the parties, or any new parties which might be on the horizon are the 40% who are undecided. The government should remember that Clinton did win re-election two years later. Most people realised that their frustrations could bring them a Newt Gingrich / Bob Dole double act and weren’t quite so keen on that one.  But Iceland can not afford a repeat of what happened in 2000 in the US. The long term consequences of an unreformed Independence Party in government could be catastrophic.

Related posts:

  1. The Essence Of Current Icelandic Politics (Borrowed from the US)
  2. The co-insuring grip of terror
  3. Iceland Takes Two Steps To The Left

Arsonist Responsible for Sandgerdi Fire?

Thursday, March 18th, 2010
Police suspect that someone set the old fishmeal factory in Sandgerdi, in Iceland’s southwestern region of Sudurnes, on fire on Tuesday night. The source of the fire remains unknown but police have ruled out common fire starters, such as electricity.

The Finance Minister Who Doesn’t Get It

Tuesday, March 9th, 2010

“I think what is happening in Iceland proves that our own currency is very beneficial to our needs. You don’t have to go far back to see that the currency developments have increased the competitiveness of Icelandic businesses and industries”.

- Steingrimur J. Sigfusson, Finance Minister of Iceland two years after an economic collapse all but wiped out the Icelandic financial sector after years of “hot money” flowing into the country because of exorbitant interest rates imposed to battle inflation.

He is crediting the arsonist for bringing a bucket of water to the fire.

What he is really celebrating is Iceland moving one step closer to the developing world and  improving our “competitiveness” through a worthless currency. Never mind the comparative loss of wealth to citizens in the developed world.

A classic argument for not joining the EU and improving the livelyhood of Iceland’s citizens.

Related posts:

  1. Thanks A Bucket – But Stiglitz Wants IMF Out Of Iceland
  2. Finance minister wants to abolish price-indexation
  3. UK Crackpot: McDonald’s flight shows Iceland’s policy works

Arsonist on the Loose in Southwest Iceland?

Tuesday, January 5th, 2010
The Sudurnes police department on the Reykjanes peninsula in southwest Iceland is currently investigating recent arsons in the jurisdiction, suspecting that an arsonist is on the loose. No one had been arrested because of the arsons yesterday.

UK Crackpot: McDonald’s flight shows Iceland’s policy works

Tuesday, October 27th, 2009
What the company actually said was that it can no longer compete with Icelandic fast-food joints that rely on local produce – and which make delicious beef samlokas, as I discovered at a stand in downtown Reykjavik in August.
McDonald’s imports its supplies from Germany. It is being undercut. Simple as that.
The weak krona is doing exactly what it should do. Iceland’s exports are recovering. Import substitution is going gangbusters.
The currency shock-absorber is performing its magic. If I hear one more person claim the crash in the Icelandic krona has been a disaster, I think I will punch them.

What the company actually said was that it can no longer compete with Icelandic fast-food joints that rely on local produce – and which make delicious beef samlokas, as I discovered at a stand in downtown Reykjavik in August.

McDonald’s imports its supplies from Germany. It is being undercut. Simple as that.

The weak krona is doing exactly what it should do. Iceland’s exports are recovering. Import substitution is going gangbusters.

The currency shock-absorber is performing its magic. If I hear one more person claim the crash in the Icelandic krona has been a disaster, I think I will punch them.

From crackpot’s Ambrose Evans-Pritchard’s’ blog at the Telegraph

If I hear yet another well-off macro-oriented pseudo-economist with anti-Euro agendas talk about the ISK as magical without having had to try to create a life for himself in its laughable economy then I will not punch him but certainly pity his narrow-mindedness and question his agendas.

The ISK was a major cause of the problems in Iceland, not a magic solution. Don’t praise the arsonist for bringing a bucket of water to the fire.

Thanks A Bucket – But Stiglitz Wants IMF Out Of Iceland

Wednesday, October 14th, 2009

Although I appreciate the brilliant contribution Joseph Stiglitz has made to economics, I still find it cringeworthy whenever I hear someone thank the flexible Icelandic currency for things “being better than they could have been”.

It is sort of like thanking the arsonist for bringing a bucket of water to the fire he started himself.

Stiglitz, speaking in Copenhagen is still vary of the IMF’s involvement in Iceland. Its plans are likely to lead to increased unemployment. “The fund’s fuse is short, which means that if states don’t do what it proposes, then it will delay its actions. It is a negative signal and that is why many are now considering whether Icelanders should thank the IMF for stepping in one year ago and tell it that there is a balance in the system, there is no emergency situation and as a democratic state we need the citizens to get together and discuss further action. There are many things at stake but full employment is the most important.”

Stiglitz says that the huge budget cuts demanded by the IMF would lead to higher unemployment in Iceland. “They say that the cost of obtaining trust is to have large reserves, the cost of the reserves are high interest rates. The cost is equivalent to the budget cuts in health or education and Icelanders should ask themselves whether it is worth it.”

Arsonist in Westman Islands’ Fire Department

Monday, April 6th, 2009
Three men have confessed to having set fire to a bus in the Westman Islands last week, one of whom is a member of the local fire department. The bus was destroyed in the fire and the fire almost spread to the facilities of the local emergency service.

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