So, new PM Jóhanna Sigurdardóttir plans to introduce a bill in parliament tomorrow that will change laws so that the heads of the Central Bank can be removed.
You read that right. LAWS need to be changed. In order to fire three obstinate Central Bank directors who are hanging onto their positions like dogs on a fish skin.* Honestly, the mind boggles.
And why they insist in persevering when the entire system that put them where they are is a mass of smoking ruins around them is beyond me. Have they no shame? Or are they hanging on because if they are fired they are entitled to big fat severance deals – on top of everything else!? [I repeat: have they no shame?]
Jóhanna was asked in Kastljós this evening if she thought the removal of the Central Bank’s board would be costly for the nation. Her response: that it is the will of the nation that they step down, and that they surely must cooperate with the current government to make that happen.
Oh, Jóhanna Jóhanna Jóhanna. Please tell me you don’t suffer from the same delusions as the rest of them. Please.
IT WAS A COLD, CLEAR DAY
Temps well below zero for a change. Well – maybe not well. Just, like, -5°C. Light winds, though, so more than tolerable. Right now we have one degree warmer than that, it’s -4 [25F], the sun came up at 10:04 am and set at 5.19 pm.
* Nicelandic idiom
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{ 36 comments… read them below or add one }
While I understand your need to be rid of this particular head of the Central Bank (and directors) I hope the law is structured in such a way that prevents the Central Bank becoming politicized and making decisions to please the Government of the day rather than the long-term interests of every Icelander.
My guess is that Johanna is waiting for them, now with a new government in place to step down so that they won’t be paid the sums of money, they’d otherwise get if they were fired.
I admit I don’t know enough about ‘that’ part of stepping down voluntarely or being fired.
I don’t think they have any morals, just as those that drove the economy of the country to the ground, or like any of the bankers that received huge sums of money (millions I think it was) when they were fired/stepped down.
I can´t even comment I am so outraged by there lack of ethics and morals. They are so deluded thinking that none of what has happened is their fault and that it is all just a witch hunt for DO. I get hives thinking about them..
The CB directors didn’t show any sign of shame before, so, why should they do so now? They seem to consider Iceland as their private property. By forcing the government to change the law they are even structurally damaging the position of the CB by undermining the institution’s independence. So, this obstinacy is not in favor of anything but personal vanity.
Usually this kind of problem is solved by simulating an excuse like health reasons or such like. Maybe, DOddsson should see his doctor about some routine examination but this sort of emergency exit has already been taken.
Have they no shame? No, of course they don’t and nor do the other b(w)ankers across the world. When the credit crunch settles down and the economy improves these people will quietly slink away to count their millions, hidden in an offshore account.
P.S. “like dogs on a fish skin” – love it!
Here in Britain we are watching events with great anticipation. The Icelanders have done what so many of us have only dreamed of… held their government to account. I wrote an article for our website about it. The other governments of Europe are watching Iceland with horror – and are very worried about the same thing happening to them. Sarkozy in France might be a good candidate.
I’d be very interested to see what happens with the Consituent Assembly when it meets. I know in Venezuela the new constitution introduced in 1999 was a tremendous step forward in terms of accountability etc. (including the right to recall any politicians in a referendum). Perhaps it is something for the Icelanders to look at.
Thanks for a great blog, btw.
ditto dumdad
dave
Rachel, wahahahaha.
This is what the government now is trying to change – you know the head CB director is a former head of the Independence Party, which has been in government for 18 years now. Yes, they’ll try to structure the law this way, I’m sure.
Becoming politicized, indeed…
I definitely second Rachel’s comment and agree that the current laws regarding the Central Bank are a bit of a mess. On one hand, the current upper-tier occupants have completely lost any mandate (or respect) they may have had, but any change in laws would have to be careful of tying the Bank too closely to any of the political parties. If the Central Bank is going to ever be part of the solution for Iceland (fingers crossed) in the future, a level of autonomy is still needed. A difficult problem!
England = snow; Scotland = freezing rain.
great blog:)
yes, I also like “like dogs on a fish skin”
in Polish it’s “with all their teeth and claws”
wouldn’t the coming storm wipe them?
windy, -2 in Warsaw
This stuff about “independent central banks” is really just about oligarchy i.e. about bankster control. This formula was pioneered in Britain, the ultimate oligarchy, with the setting up of the Bank of England, a consortium of private investors, in 1694. So, please get all this nonsense out of your head- in a sovereign, democratic country, the government, accountable to the people, runs the financial system. Of course, the government has to be made accountable to the people but that is precisely what you are douing so admirably at the moment!
In general the main point about hanging on to power is immunity from prosecution. These gentlemen are no doubt concerned about the statements of Vilhjalmur Bjarnason:
http://inthesenewtimes.com/2009/02/02/icelands-warning-to-the-world/
The European Central Bank being modelled after the German Bundesbank is not designed as being run by “the government”. The autonomy of the ECB concerning monetary policy is currently under threat as some governments are seeking more influence.
I would generally be more concerned about a Central Bank under political pressure of one or more governments than about an CB, which is at least designed as independent. The Icelandic case seems to be special.
Oddsson appears no different from any other employee facing removal: just waiting to be offered a nice settlement in a compromise agreement. Perhaps the new law that the Icelandic government is introducing should permit Oddsson to be dismissed on grounds of incompetence or misconduct, not merely redundancy. And if Oddsson subsequently appeals his dismissal without a financial settlement in an employment tribunal, then so be it…
Thanks for the input, everyone!
Apparently Jóhanna spoke to DO today, who would not confirm that he would resign. Like a dog on a fish skin.
I wouldn’t worry too much about D’Odd staying in office for now. He has no decisions to make — every important monetary policy is being dictated by the IMF (ie inflation fixed at 18%, support ISK at 120-150) and there’s nothing any Icelander can do to change this without giving up the IMF loan. The CB could decide to run the printing presses to create even more worthless ISK but all the parties want to do this anyways.
D’Odd will out sooner or later. Mostly it’s a symbolic issue.
DO is like that extremely obese 1000 pound man who couldn’t be removed from his apartment until they tore down the wall and hauled him away in a crane.
DO is like that extremely obese 1000 pound man who couldn’t be removed from his apartment until they tore down the wall and hauled him away in a crane.
An image infinitely superior to the dogs hanging on the fish skin.
Hi Alda,
Love the Icelandic idiom ! It reminds me of an Austalian idiom
that expresses real disgust – ‘ sticking like shit to a blanket’ !
Ooooh, Kaupthing even cheated Queen Elizabeth. Kaupthing rented furniture for their headquarters from Lizzie’s posh furniture company and didn’t pay her for it. Blimey. “We are not amused with Iceland,” the Queen probably said.
Oh Jóhanna, you are now the Prime Minister, which means start acting like one. Its quite simple. Get on the phone to you Police Chief and tell him to take half a dozen of his colleagues down to the Central Band and physically remove this man. If he gives you any problem then you have the tear gas that you have used quite liberally on the rest of the population to persuade him its in the national interest. Having done this you then appoint a new own governor. For pity’s sake get some backbone.
>Kaupthing rented furniture for their headquarters from Lizzie’s posh furniture company and didn’t pay her for it.
Looks like property rather than the furniture, which makes more sense. “We are landed, not tradesmen”, the Queen was heard to say.
http://www.telegraph.co.uk/news/newstopics/mandrake/4449044/Queen-finds-herself-having-a-little-trouble-with-the-tenants.html
And can anyone forget the contribution of these businessmen who overreached themselves and now it’s all crashing down?
http://www.dailymail.co.uk/news/article-1135562/Top-high-street-names-threat-Icelandic-group-Baugur-faces-administration.html
According to some news quoting IP-members, power greed seems to rule since the new government is in charge. The time for altruistic behaviour of those in power seems to be a thing of the past. I wonder, if anybody is really falling for their line. But I have read, that the IP is regaining support. Is this a hoax made up by media, controlled by IP-supporters?
To make any major changes now is an abuse of power.
This government wasn’t elected by the people and any major changes should wait until they are.
The makeup of this government is just wrong.There is no way that so many parties would agree on a single vision so anything they do now is highly questionable.
They should let DO stay until after the election and the new,properly elected,government can make a decision that isn’t some knee jerk reaction to having some power for a limited time.
Unfortunately it appears that no party or politician has a viable way to deal with the problems facing Iceland.Johanna’s support for the EU is worrying,especially as the major(perhaps only)reason is for the currency benefits.Iceland will not be able to satisfy the economic conditions for joining the Euro for several years by which time the worst of the crisis will be over.
Iceland is crying out for a leader but doesn’t appear to anyone up to the challenge.
@DJ
Why would you say that the government isnt elected by the people?
All members of it are elected MP’s. Since the IP / SD coalition isnt possible, this is the only possible coalition.
It seems like an elected government to me.
any major changes should wait
Wait?? – We’ve been waiting for months. What we need now is action and it cannot come a moment too soon.
What Iceland actually needs now is the right action now not just any action.
Unfortunately the idea that any action is best is the prevailing thought here and will only lead to more problems.
The decisions made now will affect generations to come so they shouldn’t be made by people who have to make an impression in the next 80 or so days.
The IP party has the most mps but doesn’t have any input in the policies or how the government is now run.How can this be democracy in action?
Iceland needs elections now and any major changes should wait until the people have spoken.If they want the current coalition to remain in power then give them the opportunity to vote for it.
Perhaps the IP party is looking a better option to more people today because they had(have) a plan to sort out this crisis while the current coalition doesn’t appear to have one.The fact that the IP party will have a new leader gives them a much better chance in the forthcoming election.If they can convince the people that neither Geir or DO will have any significant input then it wouldn’t surprise me to see them gain the most seats again.
I thought DJ was simply ignorant of democratic process (as wally points out) until I read “they should let DO stay until after the election” – and then realised it *must* be a joke/troll…
I think the only ignorance here is the view that any action is the best course of action.
I understand democracy but don’t believe a government should be formed by not including the leading seat holder.Most people vote for a party to lead their country because they believe in that parties leader.When the governing party changes leaders(by election)the people should have a right to decide if they want that leader to govern their country.Therefore a general election should be held.
As for DO,what is the point in ousting him and appointing someone for just 3 months?The best course of action would be to hold an election and let the new government decide who should run the bank.
Although it might appear I’m supporting DO I’m not,I just believe that such a major change should be made after the next election when the new government would have a mandate from the people.
The only joke I can see is appointing someone for 3 months and letting them make decisions which the new government might not agree with.This would cause even more problems,and Iceland could certainly do without them anytime soon.
I seem to have a different understanding of democracy. Usually not “the government” is elected in general elections but parties are, which are free to form a government in a coalition in the way they are able to find a majority in parliament. And if one party is unable to cope with the problems of the country, then another coalitions seems just natural.
Is there a law in Iceland that requires the largest faction in parliament to be part of the government? Or even a law that requires the IP to be part of it? Or a law that makes Iceland private property of one party, i.e. the IP? Wouldn’t really sound like democracy but this seems to be the understanding of many.
And somebody with such a history of complete failure like the CB governor shouldn’t wait until he get sacked, he should have the decency to step down by himself.
Too funny
“DO is like that extremely obese 1000 pound man who couldn’t be removed from his apartment until they tore down the wall and hauled him away in a crane.”
Nick: I agree, lets use the same power against DOddsson as was used against protestors. Gas him out – enough is enough
Most people vote for a party to lead their country because they believe in that parties leader.When the governing party changes leaders(by election)the people should have a right to decide if they want that leader to govern their country.Therefore a general election should be held.
Errr…. In many democracies including the UK, people vote for named MPs (not for a PM and not for a party). For example, following the last UK election, the majority of MPs were Labour and so the Queen invited Tony Blair (as the Labour leader) to form a government. After his resignation as Labour Party leader 8 months ago, the Labour Party chose a new leader (Gordon Brown) and that person became the new PM. There was no general election required as people had previously elected MPs (not a PM and not a party).
“Nick: I agree, lets use the same power against DOddsson as was used against protestors. Gas him out – enough is enough.”
Failing that, just storm the Central Bank building and physically carry him out!
With many others “downunder”, I am watching your progress with interest.
32 degrees 51%humidity
Gary Couchman, Brisbane
Why DO wants to hang on is beyond me. Is he really so deluded that he believes he is the only person qualified for the job?
Iris Erlingsdottir’s response on Huffington Post to Hannes H. Gissurarson’s letter to the Wall Street Journal seems to indicate that DO and Hannes are living in a parallel universe.
I wonder what color the sky is over there?
Jim – DO and Hannes Hólmsteinn are thick as thieves. HH was one of DO’s main advisers for years.
DJ clearly has a very formal understanding of democracy. Personally I believe that people will find their way when they start doing something together to get things done. You can’t learn to ride a bike either before having fallen off it several times.