Icelandic politicians turn really desperate!

Miscellaneous and Personal Stuff I Must Share
1

(I thought about putting this in the pit, but I think it’s too mild for it)

Ok, we’re in the middle of a currency crisis here in Iceland and the politicians are doing their best (which isn’t much) to try to get a hold on things.

So they’ve got us the loan from the IMF, and with that will probably get the rest we need from other countries as well. But then they realised that a lot of foreigners hold Icelandic currency; money they might be inclined to move from Iceland, once the currency markets open again*.

So how should they ban those foreign investors from getting their money back?

Well, just this night they pushed through new legislation which will be in effect until otherwise announced (so it’s not permanent, just temporary without a set deadline). This legislation includes, among other things, the following:

[ul]
[li]Everyone who gets foreign currency is required to hand it in to an Icelandic bank[/li][li]Huge limits set on all money exchange (you f.ex need to show a flight ticket to be able to get foreign currency)[/li][li]Foreigners are not allowed to buy Icelandic currency for Icelandic nationals[/li][li]Foreigners are not allowed to issue stocks in Iceland[/li][li]Icelanders are not allowed to invest in foreign stocks[/li][li]Icelanders are not allowed to transfers over 500’000 ISK/month (google “500000 ISK in USD”)[/li][li]Icelanders are not allowed to take loans in foreign currency[/li][/ul]

and to top it all

[ul]
Exporters who do not transfer all their foreign earnings back to Iceland, risk a 2 year prison sentence
[/ul]

How can this possibly be a good idea? How can this possibly increase trust in the Icelandic economy? And how can this lead to Iceland joining the EU?

Last time I checked, I did not live in the USSR…

I read this in the Icelandic papers, haven’t checked for English versions, and Icelandic journalists are hacks, so I hope they got this all wrong.

*at the moment, all int’l money transfers are stopped, with a few exceptions.

2

I’d give you my two cents on the situation but I’m not sure if that would be legal.

3

Desperate times call for desperate measures. What’s your plan?

4

I´m working on getting the hell outta Dodge…

This is just so unbelievable. I can’t fathom what they’re doing…

5

From the posts we get here I’d say it’s an alien invasion plan to free up a thermal region for energy exploitation. Once most of the natives leave, the aliens can just move in.

6

That actually makes a lot more sense that most of what has been said in the news.

7

Bleeding heck! Haven’t they learned from the Great Depression that protectionism is precisely the wrong thing to do?

8

Nope. They figure if they force everyone to keep their money here (and lock up all previously made investments by foreigners) the ISK will not sink as much as it would otherwise and then, in a few years, they’ll lure back foreign capital with our much higher interest rates.

I wouldn’t be surprised if they start printing money in the next couple of weeks.

9

So does that mean I can’t transfer money to Iceland to support my hypothetical but deserving Icelandic relatives?

10

Sure you can!

It means you can’t transfer it out of Iceland, if you want to.

What it basically comes down to is that an Icelander who moves to Iceland, has to liquidate everything he owns abroad and move all assets to Iceland.

11

And the incentive to invest in any business in Iceland is precisely what now? This looks like a really, really stupid set of new regulations.

12

Might be time to edit the Iceland Wikipedia entry:

13

Absolutely none. If you want to be sure to get your money back.

Iceland’s going protectionist style.

14

So, now would NOT be a good time to visit and spend lavishly, eh?*

*I can’t come right now and have no lavish to spend. I wish I did. :slight_smile:

15

Now is! All Icelanders are gonna be like 4.th street hookers trying to score :wink:

(apart from me, naturally, my account no. is…)

16

Gee–you make it sound so enticing, you’ve no idea! :stuck_out_tongue: No money on this end, otherwise the airfares would tempt me.

17

Hey com on, whe all love your money :smiley:

18

OK, do you guys at the very least have some viable opposition politicians with a platform of sane economics, that could be voted in to replace this bunch?
Or is this bunch already the replacements to those who got you into this mess to start with?

19

Nope. The change is go radically green… which means aaaaaa left

20

Green does not necessarily have anything to do with left; it’s orthogonal to the left-right distinction. Our greens have at times been quite right-wing, though possibly yours are left-wing.

Green is one end of a continuum that describes how the economy relates to the environment, the other end being ‘grey’ or extractive. Left/right is more about how humans regulate their interactions (individualistic versus collective organization).

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