Icelandic currency restrictions deliberately bypassed

This is happening again. Straumur Bank did this late last year and into this one. Now the laws have been made even harder to bypass, but it is still being done. Who can be blamed? The answer is most of the major export companies. The majority of the fishing export simply buy (Icelandic kroner) ISK from foreigners who own the Glacier bonds.

The Glacier bonds are bonds in ISK issued by foreign banks in Germany and Japan for example. They loom over Iceland like the ghost of Christmas to come. The are the reasons for the high interest rates that are kept up by the IMF and the Icelandic Central bank in order to keep that money from flooding in. That would be catastrophic for the nation and the krona would fall or even collapse.

The fishing industry among others have been very good at playing this currency bypass game. It goes like this: They export goods, and instead of bringing the foreign currency back to Iceland through the Central bank, in order to restore the foreign currency balance, and thus make the ISK stronger, they do deals abroad directly and get a better value for themselves. Money that either comes to Iceland as ISK or not at all.  The results are that the people who can save the nation are deliberately destroying its chances of survival. They also want to get all their debts reduced or even written off.

To top it all, they want to either keep the krona as currency or adobt unlilaterally another currency, like the USD, Euro, Swiss Frank or the Norwegian Krona. The only goal is to keep Iceland out of the EU. They bypass emergency laws and make sure that the krona does not get stronger. That alone is very serious indeed, for the only reason that if the krona keeps weakening then Iceland will eventually go bankrupt.

It is strange to think about, that if they want to keep this going, they have to support their local community, their local currency and the nation as a whole. If they don’t, the nation will sink, and drag them down too.

I guess that own self interests and greed are still the norm here.  And the sad part is that majority of people will do almost anything for those fishing industry moguls.


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