In layman’s terms, what will be the effect of this change? Will it further weaken the dollar exchange rates?
“In layman’s terms, what will be the effect of this change? Will it further weaken the dollar exchange rates?”
From one layman to another, I think that is a safe assumption. Prices for everything, and especially imported items, will go up as the dollar loses value and purchasing power. There are too many factors to predict the future, but I expect the worse even as I vainly hope for the best. I am thinking in survival terms now. What items do you need to live? Stock up prudently while you can.
$12.99 a gallon gas.
If you can find a pump somewhere that even has any.
Seriously.
Mebbe completely off-topic as the Icelanders evidently had their debt denominated in curriencies other than their own, but I suspect something like the below will happen to many middle class Americans. The writer was responding to comments generated by THIS ARTICLE:
It was a really bad call for sure for the Icelandic Government to change the laws but without it Icelandic Economy would be far worse off than it is now. Do you know how bad it is? If drastic things don´t happen during the next year most likely 50% of all homes in Iceland will go bankrupt!
Yes, I´m from Iceland. I´ll give you an example how a middleclass home looks like right now by giving you a peek into mine. I´ve lost ALL my savings, 35% of my pension lost, one unemployed in the family and the other got it´s wages cut cause companies just can´t cope, My loans have doubled in montly payments, Buying power of my salary has gone down 50%, The millions of ISK I owned in my house has gone to negative equity, I eat 14 meals of porridge every week :)
You just try to work on those numbers with what you got and try to calculate how you are gonna cope!! The government had to allow us to take out some of our pension funds and people are using it just to cope. And on top of that you are asking us the Icelandic Nation to pay for the debts of a privately owned bank!! I didn´t own that bank and surely did nothing to deserve paying their debt.
Cause I voted for st..id people and finance regulations in Europe are greatly flawed should I pay for it more than you... or the 12.000 people in England? If you are from England you probably didn´t vote for the brightest of the bunch either but why arent you expected to pay? You probably don´t care so please go on kicking me down.
I´m relentless and will not give up but it would make it easier to me and this small nation if you could show some understanding and back off a little! Look before you leap. :