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Iceland's Currency Collapse Leading to Nationwide Food Shortages

By Mike Adams, October 13, 2008 | Key concepts: Iceland, Banking crisis and Food supply

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When your country's banking system collapses, it makes it difficult for grocery stores to buy new supplies. This is what's happening in Iceland, where store shelves are about to run dry. The entire nation is facing not just an economic crisis, but also a public health crisis. Who will save Iceland? And for that matter, who will save America when its own banks collapse?

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Iceland's Currency Collapse Leading to Nationwide Food Shortages

From Bloomberg.com: Iceland's foreign currency market has seized up after the three largest banks collapsed and the government abandoned an attempt to peg the exchange rate. Many banks won't trade the krona and suppliers from abroad are demanding payment in advance. The government has asked banks to prioritize foreign currency transactions for essentials such as food, drugs and oil. The crisis is already hitting clothing retailers. A short walk from Bonus in the capital's Kringlan shopping center, Ragnhildur Anna Jonsdottir, 38, owner of the Next Plc clothing store, said she can't get any foreign currency to pay for incoming shipments and, even if she could, the exchange rate would be prohibitively high.... more

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