:: Friday, January 23, 2009 ::

Iceland Meltdown

Mótmæli 21. janúar 2009, originally uploaded by dvergur.

Peaceful and prosperous were two words you would have used to describe Iceland. Now the island faces ruin as the credit crunch has wiped out banks and rendered the currency worthless. The icelandic Left-Green Movement have gone up in the polls. More remarkably civil disturbance has come to the streets of Iceland. Not really a riot by British or French standards, but the first time tear gas has been used in the nation since 1949. No, I don't know what happened in 1949.

Experts are predicting similar scenes in other countries with food and gas shortages on the agenda in places like Bulgaria and Ukraine.

What about good old Blighty? The excellent Leftbanker blog is predicting bankruptcy.

"Even conservative think tanks are predicting unemployment levels of 3.4 million which in reality is over 4m. Companies are going bankrupt at a rapid rate as credit and orders dry up. All this is feeding backing into the Banking and financial system increasing the losses. It is a dynamic that the government cannot stop and opens them to huge liabilities which may take the UK to the edge of bankruptcy, forcing them to go to the International Monetary Fund (IMF) for a crisis loan. The IMF will impose strict conditions on any such loan which likely to include a freeze on pay rises and a large reduction in in public services."

As they say at the end of Crimewatch, don't have nightmares.

:: Alister | 12:29 p.m. | save this page to del.icio.us Save This Page | permalink⊕ | |


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