Iceland

[Reinbeau]

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February 9, 2011

 

[I have WHAT in my yard?]

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I've been there also and we have good friends there, so I feel exactly the same way about the people and the place. However, Iceland's economy is substanitally different from the US economy, and direct comparisions of doom are a waste of time.

Phyllis

Precisely, I personally think the gov't has made some serious mistakes, but doing some of what they did was better than doing nothing. Which is what Iceland did.

There mortgage system allowed them to make mortgages in foreign currencies. And their mortgages are self adjusting UP for inflation! I have no idea whose idea that was but it was the practice.

Then Britain nailed the coffin shut by freezing many of their assets through some arcane anti-terrorism law. They have since released them, but they held them long enough for the damage to be done.

 

[SewingDiva]

I have WHAT in my yard? :

Quote:
I've been there also and we have good friends there, so I feel exactly the same way about the people and the place. However, Iceland's economy is substanitally different from the US economy, and direct comparisions of doom are a waste of time.

Phyllis

Precisely, I personally think the gov't has made some serious mistakes, but doing some of what they did was better than doing nothing. Which is what Iceland did.

There mortgage system allowed them to make mortgages in foreign currencies. And their mortgages are self adjusting UP for inflation! I have no idea whose idea that was but it was the practice.

Then Britain nailed the coffin shut by freezing many of their assets through some arcane anti-terrorism law. They have since released them, but they held them long enough for the damage to be done.​

Yes, exactly. As much as I love the people and the astounding natural beauty, I must admit their economic models always had me scratching my head. Iceland has a lots of socialized government programs and lots of nationalized industry, in addition to socialized medicine; the government also delivers heat and electricity free to every single home in the country. I believe every child is educated for free from daycare right through college, and kids from remote parts of the country go to government boarding schools. And yet, their industrial base is really small, basically it's still fish, tourism and not much else.

That video is amazing; there are only 300,000 people in the entire country (and 60% of them live in Reykjavik), so 7,000 people protesting is almost 2.5% of the population! Can you imagine 7 million people marching on Washington DC to protest our current situation?

My husband has emailed our friends in Reykjavik but there has been no word from them yet, and we're worried.

 

[kstaven]

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It wouldn't be the first time US currency has changed and the country survived it. Not a fan of the thought of an amero at all.

Considering the staggering debt, the economic reality is there may be little choice but to devalue the dollar. Countries can't run on a deficit financing system indefinately.

 

[Chicken Salad]

Quote:
Precisely, I personally think the gov't has made some serious mistakes, but doing some of what they did was better than doing nothing. Which is what Iceland did.

There mortgage system allowed them to make mortgages in foreign currencies. And their mortgages are self adjusting UP for inflation! I have no idea whose idea that was but it was the practice.

Then Britain nailed the coffin shut by freezing many of their assets through some arcane anti-terrorism law. They have since released them, but they held them long enough for the damage to be done.

Yes, exactly. As much as I love the people and the astounding natural beauty, I must admit their economic models always had me scratching my head. Iceland has a lots of socialized government programs and lots of nationalized industry, in addition to socialized medicine; the government also delivers heat and electricity free to every single home in the country. I believe every child is educated for free from daycare right through college, and kids from remote parts of the country go to government boarding schools. And yet, their industrial base is really small, basically it's still fish, tourism and not much else.

That video is amazing; there are only 300,000 people in the entire country (and 60% of them live in Reykjavik), so 7,000 people protesting is almost 2.5% of the population! Can you imagine 7 million people marching on Washington DC to protest our current situation?

My husband has emailed our friends in Reykjavik but there has been no word from them yet, and we're worried.

The heat that is delivered to each home is in the form of geo-thermal water. They quite wisely pump that under the streets to keep the snow melted and then into each home...so they quite literally have hot and cold running water. You are correct, also, that they don't have a lot to work with economically which is why they've extended themselves in foreign money. Americans don't realize how insulated we are; other smaller countries - even an island nation like Iceland HAS to interact successfully with other countries to survive. The eco-tourism is the biggest thing they have but it attracts people from all over the world. It's a wondrous country but not without it's problems (out-of-wedlock births and alcoholism). BUT they also have 99% literacy - which is all the more amazing when you know that they have to learn not only Icelandic but also English and Norwegian by law.

The VAT pays for a lot of those national provisions. Our taxes are nothing in comparison. When I was there in 01 gas was already at $4 a gallon (converted from kronas/liters).

I stayed for a while on a farm but for the life of me can't remember if they had livestock other than horses and sheep (such as chickens!).

I haven't heard from my friends there, either.