Iceland: Canada's 11th Province?

[Boges]

Well no, but they want to use our currency.

Iceland, a nation of 300,000 people, wants to adopt the Canadian dollar as its currency because its own, the krona, is practically worthless. One thousand kronur are worth less than eight Canadian dollars.

The loonie is flying high over Reykjavik. While Iceland officially favours joining the eurozone, that could take years to negotiate, with serious conditions imposed on the country to reduce its deficit and debt. As the Globe and Mail reported, Icelanders’ “favoured alternative is the Canadian dollar, easily outscoring the U.S. dollar, the euro and Norway’s krone.”

There’s nothing to prevent Iceland from doing this, though the Icelanders would receive nothing in return. They wouldn’t ask for a seat on the board of the Bank of Canada, and they would not be consulted on monetary policy by the Canadian central bank.

Read more: http://www.montrealgazette.com/business/MacDonald+Canadian+loonie+looks+mighty+appealing+tiny+troubled+Iceland/6259941/story.html#ixzz1oNdS1Sje

This is known as dollarization, and it’s a fairly common occurrence. No less than 10 countries, many of them in the Caribbean and Central America, have adopted the U.S. dollar as their own. El Salvador, Panama, Ecuador and the British Virgin Islands are among them. The Bahamas and Haiti are among countries using the U.S. currency in addition to their own. They get the stability of the world’s reserve currency. Several jurisdictions, including Monaco and the Vatican, use the euro. And several Pacific island nations use the New Zealand or Australian dollar.

But no country has ever adopted the loonie. Or even talked about it, until now.

Read more: http://www.montrealgazette.com/business/MacDonald+Canadian+loonie+looks+mighty+appealing+tiny+troubled+Iceland/6259941/story.html#ixzz1oNedyq4v

Not sure how interesting this is. I wonder if they could potentially become a province or at least a Canadian Territory.

They have an excellent Junior Hockey program.

http://1.bp.blogspot.com/_pBR42NL-8qA/TUJppaJ4QXI/AAAAAAAAAC4/mPwRq_Zt25E/s1600/The-Mighty-Ducks-2.jpg

Edited March 6, 2012 by Boges

[olpfan1]

Iceland lost to the U.S in The finals of the Goodwill games on D:2 The Mighty Ducks

it must've been embarassing

As for Iceland becoming a Canadian province that would be sweet but unlikely

Edited March 6, 2012 by olpfan1

[bush_cheney2004]

..As for Iceland becoming a Canadian province that would be sweet but unlikely

I agree...Canada is having a tough time just keeping the existing provinces!

[fellowtraveller]

Pros and cons to Iceland becoming part of Canada:

Cons: 1)Reykjavik is cold and really expensive and wholly unattractive for a winter holiday. 2)The population has an unnatural liking for fish. 3) Bjork is from there. Her name and her music sound like a cat vomiting.

Pros: 1) Iceland would be an excellent staging area for a surprise Canadian invasion of Denmark. 2) A lot of the women are really hot.

[olpfan1]

I agree...Canada is having a tough time just keeping the existing provinces!

That is just Quebec

[fellowtraveller]

That is just Quebec

well...count again

[olpfan1]

well...count again

what others?

[fellowtraveller]

what others?

all of them. Canada has become a place of competing regions. Note the newly articulated feelings of McGuinty for the West.

[bud]

bjork!

[Smallc]

all of them. Canada has become a place of competing regions.

It's coming apart at the seams. Nice try, but it isn't even close to separation level...even in Quebec. Regional bickering is a part of every federation. It comes from the coexistence of semi sovereign entities in a single larger entity. Language politics can sometimes make Canada's more obvious, but, it's really no more prevalent.

Edited March 7, 2012 by Smallc

[TheNewTeddy]

85% of Icelanders speak English IIRC. 300,000 people would probably get them 6 MPs and 6 Senators. Even if they elected Icelandic parties, I'd still say this would be an asset to Canada. We should let them join if they want to. However; I do not think they will ever want to join.

[Wild Bill]

85% of Icelanders speak English IIRC. 300,000 people would probably get them 6 MPs and 6 Senators. Even if they elected Icelandic parties, I'd still say this would be an asset to Canada. We should let them join if they want to. However; I do not think they will ever want to join.

I agree! Why on earth would they want to? They are under fiscal pressure that they could satisfy by using our dollar. That's it!

They have no need or pressure to even consider a political union.

Meanwhile, we keep turning down the Turks and Caicos Islands, who would LOVE to become part of Canada! They are a holiday destination!

We are perpetual idiots to keep refusing while talking about letting Iceland join up!

[Smallc]

Turks and Caicos isn't as simple of a situation as you're making out.

[Wild Bill]

Turks and Caicos isn't as simple of a situation as you're making out.

No it's not, I agree. Once again, that wasn't my point. My point is that so many jump to the conclusion that Iceland wants to join Canada and start to debate the issue, while we summarily dismissed the idea of the Turks and Caicos out of hand!

Simple or not, I should think that allowing the Islands to join us is something Canadians could warm up to!

[fellowtraveller]

We should not consider Iceland in any kind of political or fiscal union until they give us a solemn promise that they will stop eating those buckets of raw herring.

[Smallc]

We should not consider Iceland in any kind of political or fiscal union until they give us a solemn promise that they will stop eating those buckets of raw herring.

[cybercoma]

This really has nothing to do with a union. Countries can adopt whatever currency they want.

[-TSS-]

I thought their economy was slowly picking up following the banking crisis 4 years ago when two or three of their largest banks were bailed out. The banks lent money overseas creating a situation whereby the banks caused a debt about 800% of the entire country's GDP. Such dramatic figures make sense as we remember the size of the country and its economy.

[dre]

I thought their economy was slowly picking up following the banking crisis 4 years ago when two or three of their largest banks were bailed out. The banks lent money overseas creating a situation whereby the banks caused a debt about 800% of the entire country's GDP. Such dramatic figures make sense as we remember the size of the country and its economy.

Yup thats what happens to a nation with government backed fiat currency when you deregulate and privatise banking.

Cant say we werent warned!

But if in the pursuit of the means we should unfortunately stumble again on unfunded paper money or any similar species of fraud, we shall assuredly give a fatal stab to our national credit in its infancy. Paper money will invariably operate in the body of politics as spirit liquors on the human body. They prey on the vitals and ultimately destroy them. Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.

George Washington in a letter to Jabez Bowen, Rhode Island, Jan. 9, 1787

I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.

Thomas Jefferson

[Post To The Left]

This really has nothing to do with a union. Countries can adopt whatever currency they want.

Bingo! Haven't Panama (since 1904), Ecuador (since 2000), and El Salvador (since 2001) all adopted the American dollar?

[TheNewTeddy]

I'll take my chances with an 800% debt load over some nutter professing the gold standard.

[Smallc]

I'll take my chances with an 800% debt load over some nutter professing the gold standard.

Yep, pretty much. Gold has no more real value than paper money backed by a country's economy.

[Jack Weber]

Pros and cons to Iceland becoming part of Canada:

Cons: 1)Reykjavik is cold and really expensive and wholly unattractive for a winter holiday. 2)The population has an unnatural liking for fish. 3) Bjork is from there. Her name and her music sound like a cat vomiting.

Pros: 1) Iceland would be an excellent staging area for a surprise Canadian invasion of Denmark. 2) A lot of the women are really hot.

The Bjork thing just about put it over the top...In the FORGET IT! category...

But what's this about hot women?

Edited March 8, 2012 by Jack Weber

[Guest American Woman]

From what I've read, going with Canada's currency could hurt Iceland. They got out of their financial situation by devaluing their currency, but they won't be able to do that with the Canadian dollar - which could end up being a strong "oil" dollar - and they won't have the oil to help their economy when their strong dollar hurts them regarding their high priced exports.

Edited March 8, 2012 by American Woman

[olpfan1]

From what I've read, going with Canada's currency could hurt Iceland. They got out of their financial situation by devaluing their currency, but they won't be able to do that with the Canadian dollar - which could end up being a strong "oil" dollar - and they won't have the oil to help their economy when their strong dollar hurts them regarding their high priced exports.

Then we should ask them to become a province or territory, they can still be called Iceland and get everything we get