Iceland considers switching to the Canadian dollar

[Newsjock]

Source: The Globe and Mail

For 150 years, no country has expressed interest in adopting the Canadian dollar -- the poor cousin to the coveted greenback.

But now tiny Iceland, still reeling from the aftershocks of the devastating collapse of its banks in 2008, is looking longingly to the loonie as the salvation from wild economic gyrations and suffocating capital controls.

And for the first time, the Canadian government says it’s open to discussing the idea.

... “The average person looks at it this way: Canada is a younger version of the U.S. Canada has more natural resources than the U.S., it’s less developed, has more land, lots of water,” explained Heidar Gudjonsson, an economist and chairman of the Research Center for Social and Economic Studies, Iceland’s largest think tank.

Read more: http://www.theglobeandmail.com/report-on-business/economy/iceland-eyes-loonie-canada-ready-to-talk/article2356634/

[Vincardog]

1. CAnada is poisoning its' water with the toxic sludge sands

[Siwsan]

2. Iceland giving up the króna?

I still have a couple, stashed away somewhere. I'd love go to back to Iceland, some day. It's an amazingly beautiful country.

[provis99]

3. Iceland has immigration ties to Canada.

the second highest population of Icelanders in the world is in Manitoba, Canada. Probably most Icelanders have family ties to Canada already.

[catnhatnh]

4. What a Lovely "Fuck You!" to the European Austerity model.

Turning their faces to their west and embracing the monetary unit of the most progressive government on the North American continent.

[HopeHoops]

5. It's made sense for a long time for the US and Canada to merge currencies. More stability.

Sometimes their currency is worth more, sometimes ours, but it's always in the ballpark. The coins up through quarters are the same size. It would give us a wider range of consistency and reduce obstacles to trade. They're ahead of us though. They've got $1 AND $2 coins. Most people in the US won't even use the $1 coins despite the fact that they SAVE TAX DOLLARS. I always have at least ten in my pocket, sometimes more. Paper has a very short circulation life.

[madokie]

6. Ten, hell I'd have to wear suspender to keep my pants up

you know little ass and all

[HopeHoops]

7. I've got a pretty small one but I can keep two handfuls of coins in my pockets.

Usually without a belt! Hell, I wear a size 30 waist jean and was a 29 in high school. If you don't have any hips, then yeah, suspenders are a good idea. But that doesn't have anything to do with coins. I've been in far too many places where taking a wallet out wasn't a good idea. Coins are safer.

[saras]

8. Really bad idea with the neocons in power in Canada

It's out of a right-wing business mag in Canada, and all over the freeper blogs.

Iceland looks like a strong place to invest, for sensible long-term investors. I'm suspicious of why "big" investors won't put money there. The restrictions are short-term, and shouldn't affect any real investments. And they solved their bank problems, unlike some other countries I could name, or live in.

The original story tracks back to this Icelandic news site or where an English translation would be if they had one by way of this Facebook post by the Icelandic Club of Canada

Google Translate sez:

Icelandic economists have discussed the possibility of Iceland unilaterally taking up Kanadadal (Canadian dollar), as shown in prime time news today. Since the Ministry of Finance both Canada and the Canadian central bank has taken a positive to this idea.

The news Bylgjan (Icelandic radio station) revealed that Canadian officials had come to Iceland earlier this year and discussed these efforts with the Icelandic businessmen. The Icelandic government has however not discuss this possibility.

In consideration of several economists in prime time news says that Canadian dollar is the currency that mainly reflects the Icelandic economy. Canadian spot in a long period of growth and coins would work their purchasing power, which it uses.

With the introduction of another currency would be to abolish capital that would increase investment and jobs would be created, according to economists.

If the neocons weren't in power in Canada, it might be a different matter entirely.

[applegrove]

9. I guess if Iceland has no manufacturing base it might work. I know that Ontario

will suffer from a high canadian dollar (because of the alberta tar sands and resources) well into the future. It will kill our manufacturing. Oil economies get warped. Ask the saudis.

[pampango]

10. CBC: Could Iceland adopt the loonie?

There are precedents. El Salvador and Ecuador have both unilaterally adopted the U.S. dollar in the past dozen years, and Kosovo has the euro.

With the krona continuing to fall, and currency controls still in place, it's not that Icelanders have any particular love of their currency.

But economist Olafur Isleifsson of Reykjavik University said in an email interview that the loonie would not be the first option if the krona is jettisoned.

"There are some entities linked to the business community up here that are voicing adopting the Canadian dollar," he said. "I for one do no see this as a realistic possibility," saying the natural choice is the euro.

http://www.cbc.ca/news/business/story/2012/03/02/iceland-loonie.html

[JBoy]

11. All ur volcano are belong to us