Iceland should replace the krona with the Canadian dollar if it wants to stabilise its shaky economy, two financial experts have suggested. Arsaell Valfells and Heidar Gudjonsson told an economics forum in Toronto this week that the government should not discount the idea of adopting Canada’s currency, even though it says it will join the euro if accepted into the EU.
Gudjonsson, who is chairman of the Centre for Social and Economic Research think-tank, said that if the change was made, foreign investment would return to Iceland, helping boost the country’s economy to the level seen before the 2008 banking crisis. He added that Icelanders would happily accept the currency due to close historic ties between the northern neighbours.
“If Iceland would adopt another currency, it would immediately cut interest rates in half, which would mean massive improvements for households, and that would also help drive investments, create jobs and increase disposable income,” Gudjonsson said.
He added that the practicalities of the change could be very simple, as Iceland would just need to buy around CAD 300 million, ship them over and pass an emergency law to make it the official currency. The economist Gudhonsson the Icelandic government could do this in “about one weekend”, and even without Canada’s permission. They could, “get the money on Saturday and it’ll be in the banks by Monday,” he claimed.
However, Gudjonsson admitted that a more likely course of action would be for Iceland to discuss the matter with both Canada and the International Monetary Fund in a process that would take about three months. He said picking an exchange rate would only take about “one hour”, with around ISK 125 to the dollar the most likely outcome.
Here is a good article from March on the topic, in Embassy magazine from Canada. “Iceland should adopt the Canadian dollar”
http://embassymag.ca/page/view/meadows-03-28-2012
I try not to offer opinions about what Icelanders should do unless I’m asked, and you can guess how often that happens.
Without offering an opinion, though, I’d like to point out a really important distinction.
Simply using Canadian currency is vitally different from having a full monetary union. Will, or won’t, Canada’s central bank backstop the Icelandic banking system by being a “lender of last resort”? That’s a critical resource for managing or preventing future crises.
Iceland should only go for this idea if it is backed by Frederic Mishkin.
As a Canadian citizen I would like to see the adoption of the C$ by Iceland along with closer ties.
There are two very easy ways for a nation to give up its freedom, independence and sovereignty. Neither require a war!
1) Hand over your political system and government to a foreign/outside entity (such as the EU, or any other
“globalist” entity).
2) Hand over your economy and your financial system (your money) to a foreign/outside entity.
You don’t “fix” a problem by making it bigger (adding to, or “joining” it), especially if your “power” and “influence”, and thus “effect”, are so small as to be rendered practically negligable! There would be no “gain”, only loss! (Even the mighty Germany is floundering under the weight of huge “centralisation” in the EU!)
The only ones who “benefit” from so-called “international trade” are the ones involved in it – “the big money boys” – the
“banksters” and fraudsters, multi-national corporations and “stock-marketeers”, who owe no allegiance to any
governments, or peoples, but are “a law unto themselves”, and who exercise their influence over the populations and citizens of the world by literally tricking them into accepting to carry and support their artificially created debt! – Check it out! Look it up! This is no idle statement! (Recommend “The Keiser Report” on rt.com)
Ask yourself, which would you rather have:
Your own money (currency), in your pocket, to spend at home, where you live? Or,
Have your money stolen by default, through manipulation and control by “outside forces”, using a currency that you have
no control or ownership over? (Such as the EURO, Canadian Dollar, or “whatever”)
This is already an exercised practice around the world, bringing political entities and governments to their knees, rendered useless, ineffective, irrelevant!
A population of only 300,000 or so doesn’t actually, really, need that much to live and survive on, does it? It’s own food supply, natural resources, clothing and shelter! These things are already here!
Any “extra” “really needed” “international trade” (exports) could, and should, be conducted in real value, such as gold and silver! Build up foreign currency reserves through tourism, to later be used for any necessary imports. Build up large reserves of all of these, and you can remain free and independent indefinitely!
Keep it small! Keep it pure! Keep it simple! Keep it strong!
It may sound “simplistic”, but where has “complicated” ever gotten anyone? (Look at history for countless proofs – that “might is right” is most definitely wrong! :D)
There are two very easy ways for a nation to give up its freedom, independence and sovereignty. Neither require a “war”…
1) Hand over your political system to a foreign entity, such as the EU (or anything else that is “globalist” in nature).
2) Hand over your economy and financial system (your money) to a foreign entity.
The only people who “benefit” from “international trade” are the “big-money-boys”, the banksters and fraudsters (multi-national corporations and “stock-marketeers”) who trick the world and its citizens into carrying and supporting artificial debt, created by corruptly manipulating the economies of sovereign nations (and thus also their political institutions).
You don’t “fix” a problem by making it bigger (adding to/joining it), especially if your population and economy are not big enough to make a difference anyway (even the mighty Germany is floundering now).
Ask yourself, what would you rather have – your own money (currency) in your pocket, to spend at home, where you live? Or have all of it stolen from you by default, through outside forces and their manipulation of a currency you have no control over? (Such as the Euro or the Canadian Dollar – or any other currency for that matter!).
A smart move would be to conduct any actual, really needed international trade using “real value and worth”, such as Gold and Silver. Build up large reserves of these, and you can remain free and independent, indefinitely!
Basically, if you have your own food supply, your own natural resources, clothing, and a roof over your head, you have all you need, while the rest of the world sinks in the ever-widening quagmire of a quick-sand cess-pit!
How much does a 300,000 or so population need exactly? (Do the math – a “responsible” government would, and should, don’t you think?)
All this might sound “simplistic”, but actually, “the basics” really are!
Keep it small. Keep it pure. Keep it simple. And keep it strong!
You can’t go far wrong keeping these criteria, and most people cannot manage much more then this anyway, so why try?
This 41 minutes presentation is well worth a look. It is made by the two men in front of the Canadian Fraser Istitute :
http://www.fraserinstitute.org/events-multimedia/video-display.aspx?id=2147484443
( I and others may not agree with every thing that Ársæll Valfells does give in his short summery of the acts of Brown and Darling in October 2008 although over all it is accurate.
In every other way they analysis of the problems of the capital controls and idiot idea of the current minority Red-green government to Join the EU is right dead on. )