If The Shoe Fits
An amazing thing happened here in Iceland this morning. My government decided to nationalize one of the Icelandic banks. Apparently our prime minister doesn't think that the state owning 75% of this bank equals nationalization. At least he decided to say and I quote:
"Geir Haarde, forsætisráðherra, sagði á blaðamannafundi í stjórnarráðinu í dag að ríkið væri ekki að þjóðnýta Glitni" - RUV which in a quick translation would be "Geir Haarde, prime minister, said in a press conference that the Icelandic state wasn't nationalizing Glitnir".
Here's how AP described it:
"In Iceland, the government took control of Glitnir bank, the country's third largest, buying a 75 percent stake for 600 million euros ($878 million) in a move it said was to ensure broader market stability."
Here's how the IHT described it:
"The government said it bought a 75 percent stake in Glitnir, the country's third largest bank, for 600 million euros (US$878 million) to ensure broader market stability after it suffered liquidity issues."
Here's how nationalization is defined by Wikipedia:
"Nationalization, also spelled nationalisation, is the act of taking an industry or assets into the public ownership of a national government."
Here's how Encyclopedia Britannica defines it:
"Nationalization may occur through the transfer of a company’s assets to the state or through the transfer of the share capital, leaving the company in existence to carry on its business under state control."
Of course our beloved leader can not bring himself to call a horse a horse. So instead of nationalization, it's state ownership (ríkisvæðing). Of course the reason could be that our beloved leader and our beloved former leader (now in the central bank) have based their political philosophy on the mantra that state control and government interference is bad for the economy. The market should be left to its own devices, self regulation should be the norm and while the taxpayer has now funded a bailout and our beloved leader has in his great knowledge decided that now that the boys in their private jets can't fund the bill. It's time for the state to step in. These are indeed remarkable times.
Here are 2 graphs which might be of interest. Our beloved former leader is now in the central bank. It's aim should be to keep inflation at or below 2.5% (p.a.) and as is shown it's currently around 14% (p.a.).
This same beloved former leader is absolutely sure that it would be madness to look for more stability than that offered by the Icelandic Krona. To discuss things like joining the European Union or discuss the Euro is nothing but foolishness. Only fools and madmen would dare to spread vicious rumors that our Icelandic currency isn't stable. This is obvious when you track the value of the Icelandic krona against the Euro or the Hong Kong dollar.
This shows that it's now approx. 60% more expensive for me to buy imports than it was one year ago. Oh, I must be thankful to enjoy the leadership of our beloved leaders, both in the private sector and in government.
But among the crowds a little child suddenly gasped out, "But he hasn't got anything on."
"Geir Haarde, forsætisráðherra, sagði á blaðamannafundi í stjórnarráðinu í dag að ríkið væri ekki að þjóðnýta Glitni" - RUV which in a quick translation would be "Geir Haarde, prime minister, said in a press conference that the Icelandic state wasn't nationalizing Glitnir".
Here's how AP described it:
"In Iceland, the government took control of Glitnir bank, the country's third largest, buying a 75 percent stake for 600 million euros ($878 million) in a move it said was to ensure broader market stability."
Here's how the IHT described it:
"The government said it bought a 75 percent stake in Glitnir, the country's third largest bank, for 600 million euros (US$878 million) to ensure broader market stability after it suffered liquidity issues."
Here's how nationalization is defined by Wikipedia:
"Nationalization, also spelled nationalisation, is the act of taking an industry or assets into the public ownership of a national government."
Here's how Encyclopedia Britannica defines it:
"Nationalization may occur through the transfer of a company’s assets to the state or through the transfer of the share capital, leaving the company in existence to carry on its business under state control."
Of course our beloved leader can not bring himself to call a horse a horse. So instead of nationalization, it's state ownership (ríkisvæðing). Of course the reason could be that our beloved leader and our beloved former leader (now in the central bank) have based their political philosophy on the mantra that state control and government interference is bad for the economy. The market should be left to its own devices, self regulation should be the norm and while the taxpayer has now funded a bailout and our beloved leader has in his great knowledge decided that now that the boys in their private jets can't fund the bill. It's time for the state to step in. These are indeed remarkable times.
Here are 2 graphs which might be of interest. Our beloved former leader is now in the central bank. It's aim should be to keep inflation at or below 2.5% (p.a.) and as is shown it's currently around 14% (p.a.).
This same beloved former leader is absolutely sure that it would be madness to look for more stability than that offered by the Icelandic Krona. To discuss things like joining the European Union or discuss the Euro is nothing but foolishness. Only fools and madmen would dare to spread vicious rumors that our Icelandic currency isn't stable. This is obvious when you track the value of the Icelandic krona against the Euro or the Hong Kong dollar.
This shows that it's now approx. 60% more expensive for me to buy imports than it was one year ago. Oh, I must be thankful to enjoy the leadership of our beloved leaders, both in the private sector and in government.
But among the crowds a little child suddenly gasped out, "But he hasn't got anything on."
Ummæli
kv. Marta Rós