Another day, another krona

The market opened today finally in Reykjavik and it was a road runner moment….down 77%. In the Hekla auto showroom, the nation’s largest, not a car to be seen. The Central Bank lowered interest rates, it’s so called policy rate from 15.5 to 12%. That should give a boost to the currency which still isn’t being traded except under unusual circumstance. I read that income taxes will likely be raised. The young lady to the right is in the country’s famous Blue Lagoon, a giant hot spring.The vapor over her head is the Icelandic Krona evaporating. I have been scouring the internet for online communique’s from the beautiful country and some of the posts are almost heartrending even amid the banking delamination. Icelandonline and are two samples of what is really going on away from the national media. As you would expect, folks are pretty sore but as befits a country of stoic sturdy souls, no one is in a panic. The poor folks who took out car and house mortgages in Euros because the interest rates were lower are looking at huge resets on their payments and barring a miracle, many expect to lose their homes and cars. Many have lost all their savings. Their prime minister on TV seems stolid and calm, a far cry from the jerky A.D.D spectacle of bush every time he steps up to the mike. ECS, a blogger in Reykjavik of course voices the common metaphor of Iceland being a canary in a coal mine, showing the rest of the world its possible future. It does look like Hungary, Ukraine and some of the former Soviet Republics may be facing a similar fate. The S&P is down 6.5% as I speak and oil is off as well which means we can now go out and fire up our Hummer again for a trip to the convenience mart for a pack of Camels. The bad news is that we just moved up Peak Oil a little closer. I have faith that the Icelanders will get through this. I don’t have the same faith in my countrymen.


Published by Rendezvous Mountain Farm

I was born in Cascade county Montana and raised in a dozen Air Force SAC bases. I attended Holy Cross,West Point and UNC in Chapel Hill(MD"71). Army doc in the last years of the Viet Nam fiasco. My wife and I live in a log cabin I built from standing dead lodgepole trees we cut from Shadow Mountain and regional local timber in 1976 . I've done a dozen different jobs including construction, boat building,magazine writing and commercial fishing and retired from the Emergency and Operating Room in 2004. We manage a small diversified organic farm including leased land which totals about 40 acres in the Jackson Hole valley. We raise a variety of livestock which includes some heritage breeds of animals and poultry. We grow most of our food and forage. Our land is irrigated from Granite Creek and the Snake River and we raise and bale our own organic hay. We supplement with food collected from Jackson Hole Food rescue which is mostly dairy, bread and past date vegetables and food from the grocery stores and restaurants.

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