Iceland May Be A Sign Of The Bad To Come

Iceland, that small nation at the top of the world with a little over 300,000 people has been in the news recently and it is not for a good reason.
It is in Iceland that the current financial services crisis has ruptured bringing down a government and even prompting this usually very peaceful nation to outright rioting.
But, the real downside is that Iceland is simply ahead of many nations.
In nationalizing it's banks. In having its stock market all but collapse. And,with rising unemployment and inflation.
It is too much to bear on this nation.
And, it is about to elect a very left-of-center government in response to the crisis.
Disturbing as all of that is, I was interested in the inflation aspect of the Iceland collapse.
Most Americans 30 and under have no idea what inflation was like in the United States in the 1970s.
It was destructive. It was coupled with high interest rates and high unemployment.
The inflation rate in the United States was in double-digits and constantly rising. People's incomes, those that were still working, could not keep pace.
That is the real danger that the West faces. A return of inflation.
Inflation is a job killer. It is what ruins any savings. It ruins investment. It makes companies unwilling to hire new workers.
It is what brought down another American president, one Jimmah Carter.
Watch out for what is going on in Iceland. Because it can be what will happen here.