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The Anglo-Icelandic War of 2008

In another era the UK and Iceland would have now declared war on each other.

With the UK government enacting anti-terrorist laws to seize the assets of Icelandic financial institutions in the UK and Iceland having over £900 million of deposits from UK Council, Police, etc potentially now lost via their now nationalised banking system. With the condemnations of the UK government on Icelands actions (Gordon Brown called them effectively illegal for starters) and the 'unpleasentness' of the UK's actions sited by the Icelandic Prime Minister it has all the ingredients needed to put on the helmets and launch the longboats!

Anyway, I have a headache and am going to have a really early night to try and sleep it off.

Too many meetings and not enough time spent at home :(

Night.

Comments

( 20 comments — Leave a comment )
eryx_uk
Oct. 9th, 2008 09:44 pm (UTC)
Have I missed something? Whats Iceland done?
pengshui_master
Oct. 9th, 2008 09:53 pm (UTC)
http://en.wikipedia.org/wiki/Icesave

Seems to cover the salient points.
angusabranson
Oct. 9th, 2008 10:12 pm (UTC)
Brown condemns Iceland over banks
angusabranson
Oct. 9th, 2008 10:14 pm (UTC)
List of affected councis
richaje
Oct. 9th, 2008 11:55 pm (UTC)
Crazy shit. I knew the Icelandic bank crisis was bad in Iceland but I had no idea the extent to which local councils had put their deposits there.

Then again, the US and the UK will likely recover from this crisis in a year or two. Iceland will probably take a decade or two.
pond823
Oct. 10th, 2008 08:33 am (UTC)
You know about the the cod war?
davywavy
Oct. 10th, 2008 08:54 am (UTC)
So when when Brown nationalises banks it's in the UK's interest, but when Iceland does it, it's effectively illegal.

Well done, Gordon.
angusabranson
Oct. 10th, 2008 09:36 am (UTC)
I think the difference being is that the UK guaranteed savings whereas Iceland hasn't made any comment about what's happening to the money as yet and has, certainly up to the last time I read anything about it (which hasn't been today) managed to evade those questions or given radio silence in response to enquiries from governments, media and customers alike.
davywavy
Oct. 10th, 2008 09:54 am (UTC)
They've guaranteed saving for Icelanders, not foreign nationals - this being identical to GB's scheme for Uk banks, I believe.
davywavy
Oct. 10th, 2008 08:57 am (UTC)
This isn't the first time local authorities have got burned playing with other people's money on the international financial markets. Back in 1992 Hammersmith & Fulham council lost millions when they took a dodgy short position on the FOREX exchange, expecting to make a packet and failing to do so.
They managed to wangle out of it by getting a legal ruling that they had no legal right to have made the trades in the first place and so didn't have to pay. Nobody lost their jobs over that bit of fuckwittery, and I wouldn't expect anyone at Kent or any other council to do so this time round either.
angusabranson
Oct. 10th, 2008 09:32 am (UTC)
No, and to be fair in this instance they have done absolutely nothing wrong at all. It isn't their fault the banking system has collapsed so they shouldn't be hung up for it.
davywavy
Oct. 10th, 2008 09:56 am (UTC)
So speculation on an economic bubble is 'absolutely nothing wrong'?
Heavens. I take back what I said about the financial sense spoken by the LibDems :)
angusabranson
Oct. 10th, 2008 10:13 am (UTC)
Investing your money in an account which would, in theory (and in practice up until recently), have the best returns is hardly bad practice.

Plus I'm not entriely sure I'd call myself a LibDem anymore.

I'm no longer a card carrying paid-up member and, for whatever reasons, haven't actually voted for them in any election since the last General Election.
davywavy
Oct. 10th, 2008 10:18 am (UTC)
I'd argue that the primary responsibility for the FD of an authority with control over public funds isn't maximising return but reduced risk; higher returns = higher risk, and it's disappointing - but not unexpected - that the many people don't really seem to comprehend this.
Any return over (say) 2% over base rate is gambling to a greater or lesser extent. I'd expect a Local Authority FD (going rate £100,000 package + ) to be aware of that.

You're no longer libdem? Heavens, just when i'm finding them a more attractive proposition!
angusabranson
Oct. 10th, 2008 10:25 am (UTC)
I'm a bit of a floating voter at present. Out of the main three parties the LibDems still appeal to me most but I feel they've let too many opportunities go to waste and with the renewed energy and popularity of the Conservatives I think they may have missed there particular window for a while.

If they had more guts on pushing certain issues at certain times - and got more exposure - I think they'd be doing a lot better.

On non-political matters we should really try and rally up a few people for a drink sometime.
davywavy
Oct. 10th, 2008 10:39 am (UTC)
The problem I have with the conservatives is that George Osbourne is a complete waste of space and Vince Cable is completely ace. On the other hand, the libdem constituional proposals are unaccepable, and so Im faced witht eh prospect of voting for a worse-managed economy with more individual liberty or a better economy with less. Tought choice.
My great hope is for Labour to be so pasted in the next election that they're beaten into 3rd place and Vince becomes shadow chancellor - hopefully he'd make Osbourne raise his somewhat lacklustre game. I'll certainly be tactically voting next time, as the Labour majority in my constituency is only about 160 over the LibDems.

As for drinks, yes - I was hoping to go to DT's drinks until I found out they happened last week.
colonel_maxim
Oct. 10th, 2008 03:41 pm (UTC)
Drinks still this weekend, you know.
davywavy
Oct. 10th, 2008 04:09 pm (UTC)
Am away this weekend - I had your drinks in my diary as this weds just gone rather than last and so missed them, worse luck.

colonel_maxim
Oct. 10th, 2008 03:40 pm (UTC)
But there are drinks this weekend as well...
colonel_maxim
Oct. 10th, 2008 03:43 pm (UTC)
I have to say that I think that the Brownster has gone completely and utterly bonkers on this one. How on earth can he think that it is legal to seize Icelandic private assets for the actions of the government and how does he propose to react when the Icelandic government follows his precedent and seizes British assets.

It is worse than a crime, it's a blunder.
( 20 comments — Leave a comment )

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