Miss Kolka

I have been hearing about the meltdown of the Icelandic economy for a while now but everytime I ask someone who lives in Iceland or is Icelandic it never seems to worry them somehow. When a fellow journalist at my job asked me about contacts in Iceland to interview for a story I realised that no one really wanted to comment on this "slump" in the one once believed to be the fastest growing economy in the world. That it was not being seen as problematic by Icelanders themselves. Except that now they are starting to feel the heat of the soaring food prices, witnessing protests due to high oil cost (The word "protest" not existing in icelandic vocabulary for so many years) and panic is also being felt on the housing market. My own uncle - a real estate mogul even considering choosing another field - NOONE is selling or Buying. The Icelandic króna has always been a fluctuating currency but this time it seems different, What ever the "buzz" on the Island's tiny financial market.

By reading an article in the newyorker I finally understood. In the past, when people asked me about Iceland being one the richest countries in the world, I always had some scepticism of my own. What money? I certainly was not seeing alot of it despite having worked since the age of 14 - paying very high taxes and spending money I didn't have to make the best I could (the banks were so eager to lend me all that money as well) Avarage people there are not rich (there's no oil or gold in the ground) but we sure pretend to be. By borrowing money. Iceland has always lived on credit. And now its coming back to haunt us. The Icelandic economy relying so heavily on foreign investment (like other economies as well though) and since there is a global credit crunch on world markets, its affecting the Icelandic economy. All this because a few people predicted some down periods or that there might be an oil shortage in the near future - investors get weary - and it becomes more difficult to find funds to borrow money from. Could Iceland really become the first national casualty of the market crisis? All this due to the small size of the country and lack of resources? Prices continue to rise around the world you might be thinking but I always laugh when people complain of how expensive the "baguette" is becoming in France. "It costs around 1, 10 euro!itz Scandaleuz..."

How can you compare that with prices in Iceland?

Is it even possible to raise the price of chicken? - Two chicken breast already cost around 20-25 euros!!

No one probably knows where this is heading but Im sure glad that Im out of the credit loop and that I've closed down my Icelandic Visa card. Only have to pay my student loans now..

well for the next 60 years though...What a mess we're in.

Note to self: Remember to play the Lottery

• How much is enough? | 09-05-2008
• Where is Iceland's money coming from? | 06-05-2008
• There's no way out | 19-04-2008
• Sendi it back to China | 07-04-2008
• Poisson d'avril | 01-04-2008
• Wish I was | 30-03-2008
• lesser of two evils | 27-03-2008
• in my head | 25-03-2008
• Where are all the drugs going? | 11-03-2008
• Why is she so controversial? | 07-03-2008
• Presidential obsession | 14-02-2008
• All we can do is wait | 14-01-2008
• The stupidity of the French President (read to the bottom for it to make sense) | 08-01-2008
• S.O.S. | 30-12-2007
• In memoriam | 27-12-2007