Sunday, October 11, 2009

One Year after the Icelandic Crash: Lessons for America

Iceland's Ambassador to the United States, Hjálmar W. Hannesson, was kind enough to send along this link to a BBC report on Iceland one year after its financial crash.

The crash has resulted in a decline of 50% in the value of their currency.

There are lessons here for Americans, as the long term outlook for the dollar is not good. One lesson is, of course, that a declining currency is not bad for all sectors of an economy. Iceland's export industries are booming. With imported products, it is another story, the price of imports have soared. Then there is the overall return to thrift and a decent days work.

The video is here:

UMfjöllun BBC

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