Sunday, March 22, 2009


Well the lovely media has not reported on anything about Iceland since the protests there.

I follow the events unfolding there for two reasons. One I was stationed in this beautiful country. Two I believe that this small country is a microcosm of the world in general.

Below is a copy of the Central Bank of Iceland's (equal to our FED) statement about the country's banks.

21.03.2009 Changes in Iceland's savings bank operations
The Icelandic authorities decided today to take co-ordinated action to protect the interests of savings bank customers and to ensure continued banking services throughout the country.
The measures taken provide a strong foundation for sustained savings bank operations, enabling the savings banks to take active part in rebuilding the Icelandic economy. As the Government has already announced, all deposits in domestic banks in Iceland are guaranteed in full. The Financial Supervisory Authority has intervened in the operations of SPRON and Sparisjódabankinn on the basis of the Act on Authorisation for Treasury Disbursements due to Unusual Financial Market Circumstances, etc., no. 125/2008.
SPRON customers will automatically have access to their deposits and will receive banking services through New Kaupthing. The same applies to customers of Netbankinn. Customers can obtain information online and at SPRON and Kaupthing branches, where staff will be available to advise them on how to proceed. Sparisjódabankinn’s payment intermediation operations will be taken over by the Central Bank of Iceland.

The unemployment rate there is now pushing 11%. Prior to the world crisis we are now in it was 1.6%. They have a workforce of about 159,000 and about 11% of that number are unemployed. The total population is about 306,000.

According to the Central Bank of Iceland the inflation rate is 17.6%. They even have a graph that charts the inflation rate on their website. The target rate is listed as 2.5%.

The exchange rate has increased from 77.65 Krona to the $ TO 112.94 Krona to the $ in one year, 19 March 2008 TO 19 March 2009. Info also from the Central Bank of Iceland. As of 20 March 2009 it is 113.44. It just keeps rising.

The debt of this country is 200% of GDP. That does not include the debt of the failed banks! This is reported to be the highest in the world!

The fishing industry there is BROKE! With debts of about 800 billion Krona. Fishing accounts for 70% of exports (CIA factsbook) !

I fear that events unfolding in this little country will only spread worldwide soon. To read more you can go to ( English Translation of Icelandic News By the Beautiful eyes of ANYA) or (Central Bank of Iceland website English version).

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