The ISK's for the past two years

The ISK's journey for the past two years

In April 2008 I met a well-connected guy who worked for one of the banks. We were discussing the difficult times ahead. As everyone with their eyes open knew, things were going to get rough later that year. We discussed the ISK and the need for it to be put out of its misery. He then raised the subject of the magical number, 180 and that’s when I heard it first.

The banks were betting against the ISK. It was their life-support while their bodies had lapsed into a coma. By betting against the krona they could post respectable Quarterly Earnings Reports and get away with their game while still breathing.

180 was supposed to be the magical number the banks’ management teams had as their target when weakening the krona. The way this number was bandied about could not be coincidental although it was hard to proof anything. When the krona would hit 180 the banks, their management and connected individuals would reach their profit target.

Now the fishing industry is considering action against the banks because at the same time companies in that industry and others were being sold positions with the krona. The effect could be nuclear in several industries as they have lost frightfully large amounts on the krona’s freefall since then.

Today the krona is 227. The profits made by this select group of people are supposed to be hidden abroad. And the ISK is left behind in its blood with a violated nation.

If ever there was an argument against small countries trying to control their own currency in an open economy then Iceland has stated its case.


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