Iceland Ousts McDonald’s

"For a kilo of onion, imported from Germany, I'm paying the equivalent of a bottle of good whiskey."

There's your reason.

"such a dramatic crash won't happen to the US and her currency"

No, but since the inauguration of G.W. Bush, the dollar has lost 37% of it's value vs. the Euro (from €1,07/$ to €0,68/$).

That's a good lesson for all (especially English people) who think staying on an own, propriotory currency makes sense in a globalized world. It wouldn't have happened to a smaller country that's on the €uro. Granted, now Iceland wants to join the EU and adopt the €uro as quickly as possible. So no matter all the fluctuations in value of the US dollar as long as 300 million Americans plus millions of other people worldwide use it and as long as vast portions of the world trade use it such a dramatic crash won't happen to the US and her currency. That's my two cents.

"No no matter all the fluctuations in value of the US dollar as long as 300 million Americans plus millions of other people worldwide use it and as long as vast portions of the world trade use it such a dramatic crash won't happen to the US and her currency." But if the US debt continue to pile up and the Chinese ever decide to stop stockpiling reserves in US dollars, look out below!

It seems the only reason our economy hasn’t completely collapsed already is the fact that the dollar is the world’s reserve currency. This allows us to promote economic policies that are fantastically irresponsible and reckless. Other nations would be bankrupted if they were to run the kinds of deficits we do. If Russia, China, and others continue to push for a new trading currency, we could be in trouble. China holds so much of our U.S. Treasury debt, it’s ridiculous. And, yes, our policies have been imprudent for decades. Frankly, it doesn’t matter who’s in the White House (although GW should get his fair share of the blame), economic policy is dictated by capitalists whose only concern is profit above everything else (as evidenced by factors that facilitated the current near economic collapse).

On a lighter (and much less political) note, wouldn’t a Happy Meal be much happier for our Icelandic friends if it included a bottle of good whiskey in the Happy Meal box? Even our French friends at the new Louvre restaurant might enjoy McDonald’s more if it came with a little Scotch.

I can imagine this hypothetical meeting between US and Chinese government officials. The Chinese complain that the US spending policies are hurting the value of the Chinese's currency reserves. The US officials look puzzled and ask "What are these 'reserves' you speak of?"

That's why I'm slowly converting my assets into euro-demoninated securities and currency.

Andreas...Lee's right...I lived in Germany in the 60's when the the exchange rate was 4 DM to 1$. By the time Germany converted to the euro, I think it was about 1.25 DM to the $ ...given the recent devaluation of the dollar vs the euro, if you had $100K in 1968 and if you kept it in a safe, it would buy you less than 20K euro's today...that's a pretty sobbering thought.

But consider the plight of the Brits. Back when there was 4DM to the dollar, there was $2.80 to the £. So that was DM11,60/£. When they converted to the Euro it was less than DM2,- to the USD. Today it's only $1.65/.£, or, if they still had DM, DM3.23/£.

The Euro may be strong against the USD, but even euro-zone member states are not immune from currency devaluation, and they’re going to need to watch their deficit spending as they continue to fund the out-of-control speculators in their own huge banks to keep their own financial systems from collapsing. And, what about Britain…they could be the next Iceland! What if McDonald’s has to pull out of the UK? The horror!!!

Lee...I remember when the pound sterling was worth $5, so as you can see, the Brits have been on a downward spiral for years...I would suggest that it is coincident with their evolution into a service oriented economy instead of an industrial based economy...unfortuantely, we are on the same road. The funny thing is that economic theory would have you believe that when the currency is cheapened, your exports (read commodities and manufactured products) should increase...which will theoretically bring the currency back into equilibrium....doesn't appear to be working very well.