Tuesday, Oct 28, 2008
Iceland now facing complete financial collapse
BBC: Iceland's interest rate up to 18%
Iceland's central bank has raised its key interest rate to 18% from 12% as the country battles against a complete financial collapse. The increase comes less than two weeks after it cut rates from 15.5%. News of the rise came as Iceland's prime minister said the country needed another $4bn (£2.6bn) in loans. Iceland has been struggling to avoid collapse since it was forced to take over its three biggest banks, which had been hit by the credit crunch.
Posted by jack c @ 10:36 AM (935 views) Add Comment
18 Comments
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1. japanese uncle said...
Iceland is the extreme/severest case of over-dependency on financial non-business. UK is more or less belongs to the same league. Must get back to the simple and genuine lifestyle as depicted in the Journey to the Centre of the Eearth by Jules Berne.
2. Whostolemyendowment said...
Icelend and Hungary must now dance to the piper's tune - in this case the IMF, who will order higher interest rates as the pain for their 'help'.
3. jack c said...
www.fundstrategy.co.uk/blogs/strategy-blog.html
23-10-2008
Another World War?
Daniel Ben-Ami
The default by Iceland – the country rather than the food store – could be a sign of a coming world war. That is the serious conclusion of an opinion piece in the Washington Post by two eminent economists.
Peter Boone and Simon Johnson argue that the conflict over Iceland’s default could signal a broader breakdown in international economic cooperation. In Britain alone 300,000 account holders could lose access to their funds and may face problems claiming deposit insurance. This is bad enough but it could, argue the authors, be the start of an “every country for itself” approach to economic affairs.
The authors put forward several suggestions to reduce the chances of such a breakdown happening. These include the world’s largest developed economies announcing plans to recapitalise their banks, a temporary blanket guarantee on all existing bank deposits and debts, lower interest rates and a substantial fiscal expansion.
4. harold said...
"....lower interest rates and a substantial fiscal expansion."
In other words, the 'cure' is the same as the pathogen - lol.
5. malct said...
jack c - but it could, argue the authors, be the start of an “every country for itself” approach to economic affairs.
WE CAN'T HAVE THAT!
bring on the new financial world policeman
6. titaniccaptain said...
@JU
"Must get back to the simple and genuine lifestyle as depicted in the Journey to the Centre of the Eearth by Jules Berne.".........Does that mean I have to swap my chicken roast for terradactyl?????
7. malct said...
Robert Peston just announced on BBC 1pm news that the bank bailout globally now amounts to £5 trillion of tax payers money. (english pounds) I didn't realise the pound had devalued that much
8. jack c said...
malct - have a look at the breaking news on Sky - "PM Calls On Oil-Rich To Boost IMF" - you couldnt make this stuff up even if you were like Coleridge writing Kubla Khan - the poem that was inspired by an opium-induced dream
9. japanese uncle said...
titaniccaptain
No. Before Alex and Lindenbrook entered into the earth through the crater of Mt. Sneffels in Iceland, they stayed with a fisherman's family for a while. Verne elaborates their lifestyle, scene of meals in particular, which is facsinating.
10. titaniccaptain said...
must read that JU..........We have been living in la la land for so many years so very detatched from ouyr enviroment and reliant on others to put the meals infront of us.....just because joe bloggs went out to work for 18 grand a year in an office it doesnt mean that he put food on the family table...........did he grow anything or catch anything?????? No he diddnt.................................... NO WE HAVENT.........looking back at what I have written it seems extremist but it is the truth........Living on a mountain of debt then pointing down at our minions in other countries to do our dirty work.........That is not moral......when it comes to giving to charity for other countries we see it as a black hole and a waste of money............then we go back to remortgage our house up to the hilt....pathetic is the only word to describe the way we have become in the u.k................I am ashamed of myself aswell for not standing up against this...just sitting in my chair infront of a monitor blogging away...... ignorant to the rest of the world and only caring if it comes up to my front door............pathetic......
11. Tom101 said...
tc.... likewise
12. malct said...
from the sky article jack c mentions above :-
Mr Brown said a substantial increase in the IMF's IMF's £160bn fund was required to lessen the risk of "contagion" from Eastern European countries like Hungary spreading around the world.
Speaking at 10 Downing Street before his departure for Paris for talks with French President Nicolas Sarkozy,
Mr Brown did not rule out a British contribution.
But the Prime Minister made it clear he believed the bulk of any additional money should come from China and the oil-rich states of the Gulf.
The Prime Minister said: "It is in every nation's interest and in the interests of hard-working families in our country and every country that financial contagion does not spread.
"We don't rule out anything on this, but the big surplus countries are in a position to do most."
13. malct said...
Just how newscasters, anybody, can present details of families facing neg eq and eviction alongside a £5trillion bank bailout is beyond my comprehension.
How 'we the people' can be so complacent is explanable but very sad.
14. shipbuilder said...
Well said, Titaniccaptain. You should also read this -
http://www.zpub.com/notes/black-work.html
As you have pointed out, a large part of our problem, and one that underpins corporate capitalism, is buying the lie that, for the majority, providing for ourselves and our families can be substituted by work for a company that produces goods surplus to our needs.
15. mrmickey said...
As somebody pointed out, we now work all week to pay somebody else to do things we used to do ourselves. People used to fix their own cars grow their own veg and bring their own children up, this has now all been outsourced to "professionals" at £80 per hour PATHETIC !!!!.
16. shipbuilder said...
15. mrmickey said...
"As somebody pointed out, we now work all week to pay somebody else to do things we used to do ourselves. People used to fix their own cars grow their own veg and bring their own children up, this has now all been outsourced to "professionals" at £80 per hour PATHETIC !!!!."
Because we don't have the time, because we're working all week........and who gets the real fruits of our labour?
17. malct said...
The psychological framework behind the social engineering of rampant consumerism is extremely powerful and well organised.
Many, probably most people are living a life determined for them by others they never see.
They think they are OK so long as they can borrow to consume. Sad
18. shipbuilder said...
Malct - it's powerful and well organised but pretty transparent - it's called capitalism and the psychological framework is put in place by advertising and marketing. Corporations are legally obliged to seek profit first and foremost, therefore they will seek any legal means to encourage the public to buy their products. We have all agreed that this is the best way to run our society, it has not been forced upon us.