[UK Debt Slave]

Krona crashes


This seems like a non related event but I would advise everyone to watch what is unfolding in Iceland very carefully

Iceland has always been a fiercly independent country. It is very different from most countries as it is not as oil dependent.

The crash of the Icelandic Krona shows that no country will be allowed to operate independently, outside the fold of the internationalists. Watch very carefully what happens in Iceland. The really BIG question is, will they be forced to accept the Euro as a replacement currency? If that should happen, the true nature internationalism will be exposed for what it is, a cynical plan to bring all the world's nation states under the control of a small coterie of elitists.

[UK Debt Slave]

mattsta1964, on Mar 23 2008, 09:52 AM, said:

Krona crashes


This seems like a non related event but I would advise everyone to watch what is unfolding in Iceland very carefully

Iceland has always been a fiercly independent country. It is very different from most countries as it is not as oil dependent.

The crash of the Icelandic Krona shows that no country will be allowed to operate independently, outside the fold of the internationalists. Watch very carefully what happens in Iceland. The really BIG question is, will they be forced to accept the Euro as a replacement currency? If that should happen, the true nature internationalism will be exposed for what it is, a cynical plan to bring all the world's nation states under the control of a small coterie of elitists.

From Wikipedia

Because of the volatility between to euro and the króna, some Icelanders are thinking about the idea of becoming a eurozone member, without joining the European Union. Former Foreign Minister Valgerður Sverrisdóttir has said in an interview with Iceland Radio that she seriously wishes to look into whether Iceland can join the euro without being a member of the 27-nation EU, according to Norwegian news NRK. Valgerður Sverrisdóttir believes it is difficult to maintain an independent currency in a small economy on the open European market. The policy of the present Icelandic government, however, is as before that neither EU membership nor euro adoption is on the agenda.

The issue is highly controversial among Icelanders. An opinion poll on the matter of Iceland joining the European Union released on 11 September 2007, by Capacent Gallup showed that 53% of respondents were in favour of adopting the euro, 37% opposed and 10% undecided. [2] However, another poll produced for the Icelandic newspaper Fréttablaðið and released on 30 September 2007 showed 56% opposed to euro adoption and 44% in favour.

[slurms mackenzie]

mattsta1964, on Mar 23 2008, 09:55 AM, said:

From Wikipedia

Because of the volatility between to euro and the króna, some Icelanders are thinking about the idea of becoming a eurozone member, without joining the European Union. Former Foreign Minister Valgerður Sverrisdóttir has said in an interview with Iceland Radio that she seriously wishes to look into whether Iceland can join the euro without being a member of the 27-nation EU, according to Norwegian news NRK. Valgerður Sverrisdóttir believes it is difficult to maintain an independent currency in a small economy on the open European market. The policy of the present Icelandic government, however, is as before that neither EU membership nor euro adoption is on the agenda.

The issue is highly controversial among Icelanders. An opinion poll on the matter of Iceland joining the European Union released on 11 September 2007, by Capacent Gallup showed that 53% of respondents were in favour of adopting the euro, 37% opposed and 10% undecided. [2] However, another poll produced for the Icelandic newspaper Fréttablaðið and released on 30 September 2007 showed 56% opposed to euro adoption and 44% in favour.

I'd recommend first pegging their currency to the euro first through some kind of rate mechanism, maybe allowing it to fluctaute within a predetermined band, best if they give it a high valuation first tho. What could possibly go wrong?

[Waiting Patiently]

mattsta1964, on Mar 23 2008, 09:52 AM, said:

Krona crashes

.......The really BIG question is, will they be forced to accept the Euro as a replacement currency? .......

This year the Icelandic krona....next year sterling, as we approach parity?

[Fed Up]

Why not tie it to the Norwegian Krone instead? It would make more sense than tying it to the Euro.

[Last Avenue]

slurms mackenzie, on Mar 23 2008, 09:59 AM, said:

I'd recommend first pegging their currency to the euro first through some kind of rate mechanism, maybe allowing it to fluctaute within a predetermined band, best if they give it a high valuation first tho. What could possibly go wrong?

[loafer]

There is more likely to be break up of the Euro than the pound joining.

Iceland has been riding for a fall with overleveraged banks in the same way as NR.

[Wlad]

Waiting Patiently, on Mar 23 2008, 11:05 AM, said:

This year the Icelandic krona....next year sterling, as we approach parity?

Parity of nominal currency values makes no difference with regards to joining the Euro. Other nations have no problem joining without this parity red herring.

The issue would rather be things like current account deficits (although Germany and France managed to fudge theirs when out of compliance, so that might not be a huge issue) and interest rates and inflation. If the BoE thinks that it needs to set different IRs to control inflation (or stimulate growth) than the ECB then the UK won't join the Euro unless the Euro is stable and Sterling is falling to such an extent that it stokes up inflation in and of itself, and the level of interest rates needed to arrest that decline would be too damaging.

But parity is meaningless, the issue is long term movements.