What the company actually said was that it can no longer compete with Icelandic fast-food joints that rely on local produce – and which make delicious beef samlokas, as I discovered at a stand in downtown Reykjavik in August.
McDonald’s imports its supplies from Germany. It is being undercut. Simple as that.
The weak krona is doing exactly what it should do. Iceland’s exports are recovering. Import substitution is going gangbusters.
The currency shock-absorber is performing its magic. If I hear one more person claim the crash in the Icelandic krona has been a disaster, I think I will punch them.
From crackpot’s Ambrose Evans-Pritchard’s’ blog at the Telegraph
If I hear yet another well-off macro-oriented pseudo-economist with anti-Euro agendas talk about the ISK as magical without having had to try to create a life for himself in its laughable economy then I will not punch him but certainly pity his narrow-mindedness and question his agendas.
The ISK was a major cause of the problems in Iceland, not a magic solution. Don’t praise the arsonist for bringing a bucket of water to the fire.
Related posts:
D_Boone
10 months ago
As a person from a country whose currency as swung between 80 cents US and 40 cents 3-4 times in the last 20 years and from 48 cents to 76 cents since March THIS YEAR. All I can say is its a great way to destroy the productive part of the economy. It does have benefits but the downsides are pretty horrible.
Of course the Pacific Peso is worth ~100 Icelandic Krona now, may even be able to afford a beer when I visit
…
Hmmm… yes there definitely are benefits
Bromley86
10 months ago
Great title, especially as it is reproduced in his comments section
.
rifek
10 months ago
He’s in the Tele-Crap. That’s about all you need to know.
Bromley86
10 months ago
“The ISK was a major cause of the problems in Iceland, not a magic solution.”
On a related note:
http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=351247
My favourite quote? This:
“Political scientist Stefanía Óskarsdóttir told Vidskiptabladid that the results show that during times of uncertainty, people want leaders with experience.”
Priceless!