Iceland to use Canadian currency?

[allhatnocattle.livejournal.com]

The Krona is history. There is much resistance in Iceland to join the EU or use the Euro as it`s own currency. And so there is some speculative talk that Iceland might start using the Canadian Loonie as it`s own currency.


This surprises me. I have many more questions about this then I do answers.

I do know the Canadian Mint mints currency for foreign governments. As well as some foreign passports printed by our Canadian Bank Note Company.

Contracting out domestic documents and or currency to foreigners does not give up national sovereignty, but perhaps makes one a little more vulnerable. (FYI; most small nations accept being vulnerable as le status du jour anyway)

But using some other countries currency as your own... seems... um... really vulnerable to our Canadian domestic policies.

Why Canada? Why not Danish Krones? Or British pounds? Or American dollars? I understand from the outside we look pretty stable (more stable then the Euro or the USD, FWIW) but we're just as likely to fall down as anyone else.

As a Canadian, I'm kinda flattered. Really I am. But I`m thinking we (Canada) are just too nice and will start to take Icelandic concerns into consideration of Canadian Parliamentary debates. I wonder if the next time we bail out AirCanada/Nortel/Bombardier (possibly RIM Blackberry?) will our Members of Parliament consider how this effects Iceland?

Will somebody please give me the Icelandic point of view on this? (En français, si vous souhaitez éviter un examen américain)

Comments

[allhatnocattle.livejournal.com]

Demand is high while supply keeps shrinking. There are no more easy oil fields to exploit. Oil won't decline in price for some years to come.

There's was a concerted effort to move away from USD as preferred currency of trade... but when Iraq tried it USA invaded.

USD is very unstable, as they've done nothing to address issues which became obvious apparent in 2008 while the US has gone deeper in debt.

Euro has fallen pretty steady since it first became a hard currency in 2001. This poor track record means nothing as it's so young. But the shear volume of Euro at least made it competitive. That is until it was bailing out everyone

[mikeyxw.livejournal.com]

No real arguments except that oil has been cyclical since it became a commodity. Something might have changed, but then maybe it didn't

I don’t think Canada will go downhill any time soon, but nobody thought the US would have a meltdown a couple of years ago... until it did.

[allhatnocattle.livejournal.com]

Not only did I predict the last American meltdown, I also predict the next one.The economic situation in USA has not changed for any better. Wall Street needs tighter reins, and DC needs to hold them.