Wednesday, Nov 26, 2008
Iceland inflation soars to 17.1%
bbc: Iceland inflation soars to 17.1%
Food prices increased fastest, up 30.6% over the year, as the country's currency plummeted.
Posted by mark @ 01:25 PM (601 views) Add Comment
13 Comments
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1. bystander said...
....and HMG and teh BoE are worried about deflation. This is what will happen to the UK consumer in about 6 months time, when the pound will be worth (less) than 90 euro cent. Genius way to run a country.
2. planning4acrash said...
Coming here within the year. Get ready.
3. Mrmickey said...
Yes once the government can't borrow any more money from our Chinese friends they will really ramp the printing presses up. Expect £5 for a loaf of bread.
4. Pwez said...
The ISK had gone down in value 75% this year
5. little professor said...
This is the critical point Mervyn King et al seem to miss when they talk about inflation plummeting due to lower global oil and commodity prices. A weak currency more than cancels out these effects, and with the pound down 25% against the dollar in the last year alone, we are heading for a whole heap of hurt.
6. planning4acrash said...
Weak currency and inflation, etc. all these issues are symptoms of the underlying issue, inflation of the money supply. Government intend to continue inflating the money supply, so it is in their interest to give us a fragmented analysis of the situation.
7. fjcruiser said...
Back to a fish diet. At least it is healthy.
8. greytornado said...
Some spot on comments - don't get misled by the deflation at this point in time. Buy yourself a wheelbarrow to cope with the hyperinflation that will come. Only those who have gone into gold will retain their savings; gold, is just cash in another form.
9. theboltonfury said...
@6
not if I decide to spend all my savings in the next 6 months. If we have hyper-inflation on the scale of Weimar than anyone owho thinks that just because they have a bit of gold will be ok is deluded.
If HI happens, there will be such chaos then your gold will count for FA. There'll be looting, monumental crime and a collapse of society. Gold can't protect you from that
just my opinion
10. greytornado said...
If there is a total econonomic collapse involving hyperinflation, then the fiat (paper currency) will become worthless. The world obviously can't run without currency, so another currency will be launched. Although it won't be backed by gold - there simply isn't enough gold to do that; it is quite possible that the new fiat currency will somehow be pegged to gold. This isn't my idea - an awful lot of better brains than mine are thinking this. Those people who had the foresight to buy gold will be able to buy into the replacement fiat currency and will have retained their money. It's worth reading up on the Weimar Republic - when a new currency was launched, things stabilised immediately. It's quite possible that those who have bought gold this time around will make quite a profit. I don't dispute that there iis some real grief coming via social disorder & crime etc. Believe me, the people who have holdings of gold and silver are not deluded.
11. theboltonfury said...
good argument. It's at least balanced. However, some are deluded. They think that they will be untouched and firproofed if they have gold. I know this because I read it on here all the time.
PS After an A level in Modern European History, A degree concentrating on The Mid Dark Ages, and a masters on Mid Victorian Britain (not completed!) the thought of another history book revolts me ;-) even if The Weimar Republic is one of the most interesting things I ever studied in any depth. People forget it was only 75 years ago. My Nan was 19, to put it into perspective
12. rumble said...
I refuse to put all my eggs in one basket, but battling to find something other than gold.
13. Jonathan said...
@ 11 theboltonfury - agree with perspective; my grandfather at the end of weimar ('33) was 62!