Wow!!! Iceland's national currency failing

[Karl Harris]

http://www.nytimes.com/2008/11/09/world/europe/09iceland.html?pagew...

I just read that story and it floored me. I have been thinking more and more about how frail our economy is, but this... I had no idea how close it could be.

Several things I think can be learned from this.

1. Economies that are based on foreign (other than local) investments are too risky. You have no control over them.

2. CES would be a life saver to the people in REYKJAVIK now. With CES, they would have complete control over the value of "their" currency.

3. How will the ripple effect from their currency value drop effect other currencies? Will people get scared and economies world wide crash if this same thing happens to a few more countries?

I know it can be argued that Iceland depends on other countries for much of their needs but even here in the US, I think we depend way too much on other countries for our own good.

I would love other people's comments on their reaction to this article.

[Karl Harris]

On TV the other day I saw a report from Iceland including statements from the president how Iceland is a good place for foreign investment due to Iceland's use of geothermal power generation and hot water.

[Warren]

I wonder if there was manipulation in the foreign exchange. Ellen Hodgson Brown, in her book Web of Debt describes how the Mexican peso was destroyed
by unlimited shorting by the New York banks in the 1990s.

I would expect that the krona started going down against the dollar when the oil price started going down.

Just a guess

[Karl Harris]

I have been reading stories about the currency in Zimbabwe going through really bad inflation and being almost worthless now. The article described how may citizens are trying to find work in South Africa since they would get paid in a foreign currency which is worth something.

It was frightening to read that even in Zimbabwe their own currency is often not accepted at local stores.

I am interested to know if more people are showing an interest in alternative currencies due to the economic problems or if people are instinctively looking to other resources (government, self employment, etc).

[Ken Meek]

Hi Karl
I have tried to get a few people I know from Zimbabwe interested in our system but they haven't shown much interest. I have been surprised - they ought to be clamouring.
Ken Meek

[Karl Harris]

I wonder why? Is it a feeling of entitlement... that the government should take care of them? I think that CES requires a degree of entrepreneurship and a desire for self sufficiency. I think that here in the US we are becoming sadly deficient in those categories.