Price of alcohol is now 36% higher than it was at the same time last year. The result has been a decrease in alcohol sales by 14%. Which, honestly said cannot be an altogether bad thing. But then again, somehow we have to weigh up against the almost 20% increase in the daily shopping basket.

The economic disaster did not “just happen” in October 2008. Those that want you to believe that the Icelandic government and business community was caught by surprise are selling you a big, fat lie. Lets recap: Spring 2006: According to a Merril Lynch report, the likelyhood of the Icelandic banks running into deep trouble within [...]

We discussed threats that are underneath the surface. An international threat does not necessarily have to break its way into your home carrying a gun to have serious consequences. It can appear as friendly older men on a television screen, saying that governments are not the solutions but that they are the problems. It can [...]

Who’s got a seat at the table when the government decides how to tackle household debt? Is it you? No, it is a group of middle aged economists and officials whose livelyhood has been dependent on looking out for the interests of industries and corporations. Then they drive off in their SUV’s to their comfortable [...]

Looks like Eva Joly got the memo. Click here to see her Kastljos’ interview from last night. She definitely seemed more positive than last time she was here, which is exactly what the nation needs. She is absolutely correct in pointing out that there are not going to be magical solutions, that things are going [...]

Although for a decade or so Iceland had imagined itself to be at the centre of the prosperous world, the crash propelled it back into the remote North Atlantic. Its pride was hurt. Icelanders were conscious that they had been steered incompetently and corruptly into the abyss. Yet the political class showed no remorse. David [...]

This has been a very rough year for Iceland, and it’s not likely to get better anytime soon. The public’s anger continues to grow, and it would not be surprising if this winter sees a repeat of last winter’s uprising. One would hope that we retained a few lessons from this painful debacle, but unfortunately [...]

It hardly seems the typical recipient of a $10bn (£6.2bn) package of bailout loans orchestrated by the IMF. But, despite the outward signs of continued prosperity, most Icelanders are quietly waking up to the burdensome legacy they must endure after one of the most rapid destructions of wealth any economy has ever seen. It was [...]

“Whatever you say about the Icelandic banks, they operated within the framework of the European regulations on banking and finance,” Grimsson, who is the country’s head of state and doesn’t lead the government, said in an interview with Bloomberg radio in New York today. From Bloomberg The president who’s got his foot firmly stuck in [...]

My life and the life of so many of my friends has taken an extreme turn in the last year. Now we can safely say with the benefit of hindsight that the economic collapse of Iceland has been a life-changing event for just about everyone. Old truths have been demolished, new governments have been formed, [...]