Bucket Of Water | Wicelandic Post

Posts Tagged ‘Bucket Of Water’

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.

Tags: Arsonist, Bucket Of Water, Citizens, Competitiveness, Crackpot, Currency, Developing World, Economic Collapse, Exorbitant Interest Rates, Finance Minister, Financial Sector, Hot Money, Iceland, Imf, Indexation, Inflation, Livelyhood, Mcdonald, Stiglitz
Posted in Iceland, Market | No Comments »

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.

Tags: Agendas, Ambrose, Arsonist, Bucket Of Water, Crackpot, Delicious Beef, Economist, Evans Pritchard, Fast Food, Food Joints, Gangbusters, Icelandic Krona, Import Substitution, Isk, Local Produce, Magic Solution, Mcdonald, Person Claim, Reykjavik, Shock Absorber
Posted in Iceland, Market | No Comments »

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.”

Tags: Arsonist, Bucket Of Water, Budget Cuts, Citizens, Copenhagen, Currency, Democratic State, Economics, Emergency Situation, Full Employment, Fuse, High Interest Rates, Iceland, Imf, Joseph Stiglitz, Lead, Many Things, Negative Signal, Stake, Unemployment
Posted in Iceland, Market | No Comments »

Wicelandic Post

Posts Tagged ‘Bucket Of Water’

The Finance Minister Who Doesn’t Get It

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

Thanks A Bucket – But Stiglitz Wants IMF Out Of Iceland

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