Iceland to adobt the US Dollar?

The youth arm of the Independence party (many over 30 years old) have agreed to pursue that Iceland adopts the US dollar. SUS is the name of the youth department, and it is has been known to support Hayek and his theories, and generally that the market will adjust itself.  They want to talk to the IMF and a deal be made to allow Iceland to use the USD as a reference in commerce and business.denial

They think that the Icelandic krona (ISK) has been fully tested and is clearly not working. That is correct, but insted of doing the sensible thing like joining the EU and adobting they Euro as a result, they want to adobt the US Dollar.

The new emergency currency laws restrict export companies to buy ISK in foreign banks at a much better deal for them, since the ISK is so badly rated in foreign banks at the moment, since it deprives the nation from getting in to the country the so very valuable foreign currency.  This is a special situation for Iceland and the currency laws are there as an emergency tool, that the fishing industry for example deliberately bypassed for their own gain, and leaving the homes and companies to suffer for it.

Without a foreign currency change for Iceland, and the only sensible thing is to get the Euro, things will only get worse. But the strange thing about this SUS idea is the fact that the Independence party has been adamant to keep the ISK. All their actions either political or economical have had one aim only. Do not enter the EU and fight to the death to keep the ISK.

As ruling members of the Central Bank (David Oddson on wikipedia) and in fact behind the whole ideology of the extreme market freedom that included deregulation and total freedom the Central Bank gave the other banks to operate. The Central Bank even lowered the restrictions on bank growth before totally abandoning it.

It can be perceived as a total ideological breakdown for the party to be willing to discuss other options than keeping the ISK. The sad part is that they do not agree, just like Alan Greenspan did, that there is something wrong with their ideology (religion in fact). This is generally called denial, or “the pink elephant syndrome”. It is common with for example the families of alcoholics, where nobody discusses the problem, but actually defend the actions and drinking of the main culprit. Everybody sees the elephant, but nobody wants to mention it. The emperors new clothes pinkelephantsyndrome is even better.

The youth brigade is not alone in this think pattern, other political parties suffer from the same thing. So many have the the view that EU membership would plunge us into financial chaos, unemployment, and straight to hell. I fail to spot a difference to the current situation Iceland is in at the moment. They all have their views, but nobody has any solution, they refuse to discuss the EU on a professional level, and when forced to address it, they just make doomsday predictions that have not merits in reality.

Things are grim in Iceland today. Pink elephants everywhere. Nestor Media sees the pink elephant and is not afraid to point him out.


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