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The Icelandic economy didn't collapse today. It's been doing this for weeks now. A well known problem.

.....Alan.
 

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The Icelandic economy didn't collapse today. It's been doing this for weeks now. A well known problem.

.....Alan.
Exactly right, and as I stated before, there are some great lessons to learn there, but Iceland was not/is not sustainable for their consumption.

They actually (in a long term scenario) would fair better than many places because they are energy rich (geothermal) and produce amazing amounts of food in hothouses... it's just not the stuff they have a (rich) taste for.

Can't really compare them to the U.S. because of the huge difference in raw materials and production capacity.

Yes, a lot of stuff is produced in China that we buy, but ours is a different reason than Icelands... we have CHEAP tastes. We want cheap.throwaway.replace.upgrade stuff. We're actually trained and conditioned for it. Think about this... has there been any REALLY (practical) major advances that I NEED a new laptop from the last 3 or 4 years?

No... and yet I was thinking the other day how old this one is and how I may as well buy a new one because it's just as cheap as upgrading this one, etc. etc.

And then I thought... WHY? Until this one dies the death... I am still further ahead to use it. Even if it's ugly or doesn't play WARCRAP of the WORLDS... I have dial up, so I can't do that anyway.
 

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"Back to basics". Isn't that what a homesteading forum is all about, anyway? Seems like the world is slowly (or quickly, depending on your perspective) being forced back to that.
 

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Farmer Willy breaking in with this late breaking news just in, the Kaiser has surrendered! Russia launches Sputnik. The Beatle have broken up. Zimmerman flew and Tyler knew.
 

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I think about that with the computer equipment all the time, Seedspreader. Why upgrade? I'm still functional. Run it into the ground. The things it won't do are things I ought not to be doing anyway.
 

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In Remembrance
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Credit Crisis Worse to Come as Bank Credit Contracts <snip>
Meanwhile, in the US, bank lending is already responding to Fed's tactics. Total commercial and consumer bank lending has grown by an annualised rate of almost 50% in the last month and a half. Quite impressive in an economy which is supposedly in recession.

So far so good. The problem is, however, that the near meltdown has unleashed an asteroid storm of problems. Take Iceland. As most investors know by now, Iceland is in very serious trouble. According to at least one estimate, European banks stand to lose about $75 billion on Iceland - not exactly pocket change. And that is on a population the size of Coventry! Earlier this week, the Central Bank of Iceland raised the policy rate from 12% to 18%. Inflation is now running at about 16% and will undoubtedly peak at much higher levels. According to Danske Bank, expect it to hit 75% before things get better. That is ugly.
The canary in the coalmine

I have an increasingly uneasy feeling that Iceland is the canary in the coalmine. Hungary is struggling. So are Pakistan, Ukraine, Belarus, Romania and Argentina. Cristina Fernández de Kirchner, the President of Argentina, took everyone by surprise last week when she announced that the country's private pension funds (about $26 billion) would be transferred into the state pension system. The official line is that she is aiming to protect the country's pension funds from the global turmoil. Who is she kidding?

Now, the Federal Reserve Bank has decided to provide emergency loans to Mexico, Brazil, Singapore and South Korea. Not that long ago, it was Singapore (amongst others) which provided emergency funding to the ailing US banking sector. If countries such as South Korea and Singapore require help from the outside, the state of affairs in other and less developed nations could be much worse than generally perceived.

Looking at the evidence produced in a new Goldman Sachs research paper 1 , it is primarily Eastern Europe one has to worry about. Credit growth in Eastern Europe and Latin America has been much stronger than in emerging Asia (chart 2).
<snip>

the rest here:
http://marketoracle.co.uk/Article7241.html
 

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Don't be so hard on Rusty.


He's right in reporting the continued degeneration. It's getting really bad their. They are having shortages of all kinds of goods, Even foods. They have had riots and civil unrest. It's really interesting to watch the collapse of a western country. It happens as fast as it does in the third world. So be warned.

I know, I know the USA is very different.... Bla, bla, bla. But how far are we from a collapse?
 

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Don't be so hard on Rusty.


He's right in reporting the continued degeneration. It's getting really bad their. They are having shortages of all kinds of goods, Even foods. They have had riots and civil unrest. It's really interesting to watch the collapse of a western country. It happens as fast as it does in the third world. So be warned.

I know, I know the USA is very different.... Bla, bla, bla. But how far are we from a collapse?
It's been more than a month that Iceland was officially "bankrupt". It didn't happen overnight... it just felt that way and was probably the fastest decline of a country on the record books.

How far are we to collapse? We're actually in a much better position than Iceland. Our debt is about equal to our GDP. We are probably headed for Depression, but I don't think we'll have a total collapse to the point where we are bankrupt. Countries like Germany and France are in much worse shape.
 

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It's been more than a month that Iceland was officially "bankrupt". It didn't happen overnight... it just felt that way and was probably the fastest decline of a country on the record books.

How far are we to collapse? We're actually in a much better position than Iceland. Our debt is about equal to our GDP. We are probably headed for Depression, but I don't think we'll have a total collapse to the point where we are bankrupt. Countries like Germany and France are in much worse shape.
Did you ever look into how much the government is in debt? GAO says we are bankrupt. I will have to disagree with you. ;)
 

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It's been more than a month that Iceland was officially "bankrupt". It didn't happen overnight... it just felt that way and was probably the fastest decline of a country on the record books.

How far are we to collapse? We're actually in a much better position than Iceland. Our debt is about equal to our GDP. We are probably headed for Depression, but I don't think we'll have a total collapse to the point where we are bankrupt. Countries like Germany and France are in much worse shape.
Are you counting unfunded liabilities in your debt figure? That's a good 60 trillion currently...
 

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Are you counting unfunded liabilities in your debt figure? That's a good 60 trillion currently...
I didn't do the counting at all... I read it in the WSJ the other day.
 

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I may be wrong, but I think Rusty is a gal...

I think Iceland will simply revert to where they were before this current bubble swept them away to la la land...
 

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Why has it not made the headline news?? I can tell you!! I can tell you!!

The Rising of the Messiah has pre-empted most other news for the past month!!

Ha' ye not been watching Charlie Gibbson?
 
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