Icelander strikes back about doom and gloom British media coverage – they’re not quite starving to death yet up there. From the Guardian:

The British prime minister has repeatedly said that Iceland, as a country, even as a nation, is going bankrupt, that our government has defaulted on its legal obligation, that we are virtually doomed – falling into an economic abyss. Neither is true. We have never denied our legal obligation regarding the Icesave accounts, and the people of Iceland are not going bust. Ask yourself: would you lend £100m, as Chancellor Darling has just announced he will, to a bankrupt?

Glad to know no one’s going hungry. Still hoping the currency stays down so I can afford a visit.

Commentary from Johnathan Freedland on the meaning of this financial disaster:

If that’s now all over, what’s coming next? The first shift might be a radically different approach to public spending. Now that they have seen their governments spend eye-popping sums of money to get out of a crisis, won’t voters demand similar largesse to solve other pressing problems? For decades, politicians have told constituents that there simply isn’t the cash to pay for, say, the £3bn that would be needed to halve child poverty by 2010, or the annual £8bn it would take to get 20% of our energy from renewable sources. Now, though, those look like paltry sums next to the £37bn the government plans to inject into Britain’s ailing banks. Saving post office branches in deprived areas at a cost of £150m? Small change! In this way, the rhetoric of public discussion on spending could change drastically, with voters’ patience for arguments of prudence evaporated. “If you could find the money to clear up the mess left by a few greedy fat cats,” voters will say, “then you can find the money to fund this bus service/save this village school/renationalise the railways.”

Sounds too good to be true eh? Well, Freedland goes on to acknowledge “Or it could go the other way. The politicians may find that…. they simply lack the means to pay for any of it.” Exaaaactly.