Bloomberg reports Iceland’s economy is so comprehensively doomed that McDonalds is closing all it’s stores there:
McDonald’s in Iceland, which imports most of the ingredients it uses in its meals, will shut after costs doubled over the past year, Lyst said in an e-mailed statement today. The franchise holder said it doesn’t expect the situation to change in the short term.
“We would have to raise our prices by 20 percent to get the margin needed on our products,” Magnus Ogmundsson, Lyst chief executive officer, said in a phone interview. “That would have sent a Big Mac to 780 kronur” ($6.36), compared with the 650 kronur it costs today, he said.
The island’s currency collapsed last year following the failure of Iceland’s biggest banks. Offshore, the krona slumped as much as 80 percent against the euro, while capital restrictions this year have failed to prevent an 8.1 percent decline, making the krona the second-worst performer of the 26 emerging-market currencies tracked by Bloomberg.
Noted partly for interests sake, but partly because whenever people like Don Brash, Sir Roger Douglas or John Whitehead talk about their plans for catching up with Australia their proposals are generally to introduce monetary and fiscal policies totally unlike Australia’s but weirdly identical to pre-bankruptcy Iceland. Do they want us to be McDonaldsless? Maybe I’ve underestimated the Greens and Sue Kedgely is secretly pulling the Treasury Secretary’s strings? We’re through the looking glass here.