The World Economy

[Eli]

So, with all the talk in the news about this, I thought it would be appropriate to make a topic about it here as well. I'm a news and current affairs geek, and I'm following what everyone (except Sarah Palin, who's busy telling people how sick the situation makes her) that knows a little about economy describes as a finance crisis similar to the famous American market crash in 1929. Anyone else interested in what's going on?

Here in Europe Iceland seems to be in the most trouble at the moment, and of course them receiving help from Russia has shocked (and in Sarah Palin's case, probably made her more sick about the situation) the US and so on...

I'm suggesting that the best way to save Iceland's doomed economy would be to send me there to boost their economy. Just drop me off in the middle of Reykjavik. I'll buy anything if it has volcano in it.

Some people from my school are actually going to Iceland next week. It's like a geology class trip. I wonder if they will need to change their plans, cause Iceland is kinda going crazy these days. I think they had stopped all America-connected flights or something, they've set limits for how much money people can take out of their bank accounts, and you can no longer exchange Icelandic money for other currencies in Iceland. I actually read that some experts think that it might come to the point where the Icelandic krone just keeps dropping so that they'll be forced to stabilizing it by joining the EU and adopt the euro. I don't see that happening any time soon though, the Scandinavian relationship with our krone currencies are more holy that most religions here... But anyway it's rather extreme... I mean, if Iceland eventually actually have to go to such drastic lenghts (like I said, I doubt it. Russia is helping them out, the Norwegian finance minister said yesterday that we'll be helping Iceland if they ask for our help, and I'm sure Sweden and Denmark would too) as joining the EU... That's crazy... And we'd be the only country left in Europe that's not a EU member

So, any opinions or comments?

[Miranda]

Well I'm concerned about the situation. Everything is so much more expensive and we are struggling to manage. But we've been short of money before, life goes up and down and you just have to keep going As long as our daughter doesn't lack anything, we can survive.

I didn't know Russia were helping out Iceland- how?

[Eli]

Yeah, apparently Russia is going to help them out with a 5.4 billion dollar loan to save the whole country from going bankrupt (which could happen the way it is right now)

[Ryan]

If Iceland went bankrupt, would it be up for sale? That would be LOL-some.

[Eli]

Hehe, I was actually wondering the same thing My mother called earlier and talked about this guy we know who's selling his store because he's retiring, and he had jokingly suggested she'd buy the store. I suggested she'd turn him down and save up some money so that in a few weeks we could buy Iceland

No seriously, I actually don't know what happens when a country goes bankrupt...

[Cal]

I'm dealing with it. I mean, the worst thing you could do is not do anything. If we all sit here and take it, then it's not going to get better. Ireland's in Recession. It's predicted to be one of the worst... even worse than the one in the 80s. And it has come when I graduate out of high school - BEST TIMING EVER!

I can't get a second job because nobody is employing people now. My first job gets me by, but when I move out and start to pay rent and bills, I need a proper job.

The government is dealing with the banks pretty well here. But I'm sick of the UK government giving out about it saying that it's wrong... eh, sorry, but you did the exact same thing with Northern Rock last year, so...

I feel sorry for Iceland. They're just... there... and they don't have the population or the economy to deal with this.

... And we'd be the only country left in Europe that's not a EU member

Switzerland aren't an official member, but I don't know why, they have the open market agreement and every other agreement. Maybe it's because they have all the bank stuff or something. Norway and Iceland should remain out of the EU - it has it's benefits, but the downside is appalling. 'Democratic' union my ass. I am NOT voting again for Lisbon just because they didn't get the answer they wanted.

[Mrs Bishop]

I,ve never acually heard of a country going banckrupt I wonder what would happen would they put it up for auction? sorry mylitte joke but really this with all the banks going to the wall as they say it is a worry because its the tax payer that forks out in the end.

We have food going up but then they still go on about eating your five a day fruit and veg plus House prices they say are going down you work to buy your home and it ends up less that what you payed for it.then they wonder why poeple dont trust banks,

Now we have jobs being axed right left and centre it dose make you wonder were it all will end.

[Zetti]

Switzerland aren't an official member, but I don't know why, they have the open market agreement and every other agreement. Maybe it's because they have all the bank stuff or something. Norway and Iceland should remain out of the EU - it has it's benefits, but the downside is appalling. 'Democratic' union my ass. I am NOT voting again for Lisbon just because they didn't get the answer they wanted.

Annoyed slightly?

Anyways the economy crisis does scare me but its life and all we can do is ride it out if we can. Atm I just want to concentrate on my school life and let the worrying come later, my boyfriend does enough of that to fill the planet a million times over!

[Slade]

I didn't know Russia were helping out Iceland- how?

Forgot about how, what I don’t understand is WHY. What does Russia actually have to gain by helping Iceland out? It’s not as if they’re massive trading partners or are there strategic interests involved. You never can tell with the Russians. Motives are very rarely unselfish.

[Eli]

Iceland is very strategically placed between Russia and the US. And also, there have been some disagreements between Russia and some of the Scandinavian countries (mainly Norway, but the Scandinavian countries tend to stick together on decisions) so Russia definitely has something to gain in getting more trust from the Scandinavian countries by helping out Iceland. Especially since Scandinavian countries don't really unconditionally support the US (I'm not sure about Sweden and Denmark, but to mention one example, Norway's government does not support the US support of Israel in the Israel/Palestine conflict). Neither do we support Russia unconditionally, and like I said there have been some arguments between Russia and Norway about borders at sea far north where we share a border. Since Scandinavia, and generally few nations support the US as unconditionally as the US would like to think, Russia certainly would have a lot to gain on helping out a country like Iceland, which is rated one of the best countries in the world to live in (I think either Iceland or Norway is in 1st place, not sure which one at the moment) when they're having financial problems. It makes Russia look even better considering the US has been messing up a lot lately in this disaster.

Also, like I said earlier, and from a strictly more Americanized (and mainly Republicanized) point of view; Scandinavia (Norway, Iceland and Greenland/Denmark) are strategically placed between Russia and the US. If a bigger conflict ever were to build up, those countries could be important because of the amount of sea separating Russia and the US.

I'm far from an expert, and I haven't really read any concrete explanation that states this, so I could be way off here, but it seems like the most logical explanation to me.

ETA: Cal, when was Switzerland ever really officially in on anything. Switzerland are just very Switzerland. Sweden is considered a neutral country, but they're nothing compared to Switzerland.