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Iceland: Who need's government anyways?

DrakeonDrakeon Registered User regular
edited January 2009 in Debate and/or Discourse
REYKJAVIK, Iceland - Iceland's coalition government collapsed Monday, leaving the island nation in political turmoil amid a financial crisis that has pummeled its economy and required an international bailout.

Prime Minister Geir Haarde said he was unwilling to meet the demands of his coalition partners, the Social Democratic Alliance Party, which insisted upon getting the post of prime minister to keep the coalition intact.

"I really regret that we could not continue with this coalition, I believe that that would have been the best result," Haarde told reporters.
Story continues below ↓advertisement | your ad here

Haarde, who has been prime minister since 2006, said he would officially inform the country's president, Olafur Ragnar Grimsson, that the government had collapsed. Grimsson, largely a figurehead, has asked Haarde's government to remain in place until a new administration is formed.

Last week, Haarde called elections for May — bringing forward a contest originally slated for 2011 after weeks of protests by Icelanders upset about soaring unemployment and rising prices.

But Haarde said he wouldn't lead his Independence Party into the new elections because he needs treatment for cancer.

Source: http://www.msnbc.msn.com/id/28854529/

So, this is pretty scary. I don't know the last time I saw a western nation collapse like this on it's own.

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  • CuddlyCuteKittenCuddlyCuteKitten Registered User regular
    edited January 2009
    I'd feel worse about it if Icelandic people hadn't been such utter cocks about their "success" when their financial institutions bought up everything in Europe on borrowed money that they couldn't cover. Wild spending without anything to back it up + economic downturn = Iceland.

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  • DrakeonDrakeon Registered User regular
    edited January 2009
    I'd feel worse about it if Icelandic people hadn't been such utter cocks about their "success" when their financial institutions bought up everything in Europe on borrowed money that they couldn't cover. Wild spending without anything to back it up + economic downturn = Iceland.

    Well, I suppose that explains their banks collapsing >_>

    Are all banks this stupid? I mean, it seems everywhere that's going through financial problems is due to banks fucking up.

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  • OptimusZedOptimusZed Registered User regular
    edited January 2009
    How does a representative democracy just dissolve? Even if these people can't agree on a single goddamn thing there's still a (horribly gridlocked) decision making body here, right?

    It's not like a dozen different packs of 4th graders picking up their ball and going home. Unless everyone just vacated the government en masse, this just doesn't work.

    What the hell am I missing here?

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  • BurtletoyBurtletoy Registered User regular
    edited January 2009
    OptimusZed wrote: »
    How does a representative democracy just dissolve? Even if these people can't agree on a single goddamn thing there's still a (horribly gridlocked) decision making body here, right?

    It's not like a dozen different packs of 4th graders picking up their ball and going home. Unless everyone just vacated the government en masse, this just doesn't work.

    What the hell am I missing here?

    It isn't a two party system.

    Burtletoy on
  • QinguQingu Registered User regular
    edited January 2009
    I think perhaps the OP is exaggerating how big of a deal this is?

    I mean, yes, it sounds bad, but it also sounds like Iceland's government has systems in place to replace itself in such an event. I'm from America, so I don't know anything about parliamentary systems, but don't most parliamentary countries account for such contingencies anyway?

    Qingu on
  • OptimusZedOptimusZed Registered User regular
    edited January 2009
    Burtletoy wrote: »
    OptimusZed wrote: »
    How does a representative democracy just dissolve? Even if these people can't agree on a single goddamn thing there's still a (horribly gridlocked) decision making body here, right?

    It's not like a dozen different packs of 4th graders picking up their ball and going home. Unless everyone just vacated the government en masse, this just doesn't work.

    What the hell am I missing here?

    It isn't a two party system.
    That's got nothing to do with it. Having 3+ parties doesn't magically make a country prone to catastrophic leadership loss.

    I can see "can't come to terms" or "parliament stalled" but "government gone" isn't something that happens in the first world.

    OptimusZed on
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  • Nova_CNova_C I have the need The need for speedRegistered User regular
    edited January 2009
    Burtletoy wrote: »
    OptimusZed wrote: »
    How does a representative democracy just dissolve? Even if these people can't agree on a single goddamn thing there's still a (horribly gridlocked) decision making body here, right?

    It's not like a dozen different packs of 4th graders picking up their ball and going home. Unless everyone just vacated the government en masse, this just doesn't work.

    What the hell am I missing here?

    It isn't a two party system.

    Yeah, in this case, the government was a coalition of at least 2 parties who joined in order to form a majority. The parties in the coalition are no longer co-operating, so the government falls and an election is supposed to be held. Or possibly, another coalition could form? Not sure about the Icelandic system.

    Something like this could happen in Canada if the current minority government of the Conservative party falls to a possible coalition of the opposition parties. I don't see the opposition maintaining co-operation for long, so the government would fall and an election would be held.

    Canada's economy is doing okay compared to the rest of the world, so it wouldn't cause a crisis like in Iceland, but it would suck.

    I'm not sure how I see this as a 'western democracy collapsing' though. It's just a bad time for the parties to get up in each others' grills.

    Nova_C on
  • FireflashFireflash Montreal, QCRegistered User regular
    edited January 2009
    If the coalition collapsed wouldn't leadership fall into the hands of the party with the most seats?

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  • Monolithic_DomeMonolithic_Dome Registered User regular
    edited January 2009
    Ok, not that the MSNBC article does anything to clear this up, but replace "government" with "the governing coalition" in that article and it starts to make more sense.

    The "government" as we use that word in the states did not dissapear. Iceland still exists, both as a geographic place and as a geopolitical entity.

    But the coalition has been broken, which basically just means fuck-all is going to get done until a new coalition is formed (that is, until two parties decide to agree on stuff and become the new "the government")

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  • WicketW.WarrickWicketW.Warrick Registered User regular
    edited January 2009
    Well they still have a president which would probably make some decisions forming a new government. Also the leader of the second leading party has recently come back from medical treatment after a benign tumor was found in her head.

    WicketW.Warrick on
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  • OptimusZedOptimusZed Registered User regular
    edited January 2009
    So, the wikipedia page (Yes, Icelandic politics has it's own page) isn't really much help.

    From what I'm gathering around the tubes, this is a case of the parties who had allied to form a majority (an this is where the multi-party thing comes in, see I can learn) basically had enough of each other and are going through a Rom Com level bad breakup.

    "Fuck you, I quit."
    "You can't quit, I quit."
    "Fuck all of you, I quit first."
    *sound of stereo falling into parkinglot*

    Makes the theatrics here in the states seem positively civil.

    OptimusZed on
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  • Dis'Dis' Registered User regular
    edited January 2009
    Drakeon wrote: »
    Are all banks this stupid? I mean, it seems everywhere that's going through financial problems is due to banks fucking up.

    Pretty much, its just a) Icelandic banks were extra stupid*, and b) Iceland's economy is too small to absorb the subsequent implosion.

    *Due to the tiny nature of country allowing just a few banks to wield considerable influence over...everything really.
    Crisis claims Icelandic cabinet
    Iceland's Prime Minister Geir Haarde
    Prime Minister Geir Haarde had called early elections for May

    Iceland's coalition government has collapsed under the strain of an escalating economic crisis. Conservative Prime Minister Geir Haarde announced the resignation of his cabinet, after talks with his Social Democratic coalition partners failed. He said he could not accept the Social Democrats' demand to lead the country.

    Iceland's financial system collapsed in October under the weight of debt, leading to a currency crisis, rising unemployment and daily protests. The economy is forecast to shrink by almost 10% this year. The coalition between Mr Haarde's Independence Party and Foreign Minister Ingibjorg Gisladottir's Social Democratic Alliance had been under strain in recent months. Mr Haarde told reporters on Monday: "We couldn't accept the Social Democratic demand that they would lead the government." The Independence Party currently controls 25 of the country's 63 parliamentary seats, to the Social Democrats' 18.

    The announcement comes three days after the prime minister called an early general election for 9 May, adding thathe would not stand for health reasons. The coalition government, in place since 2007, had been due to remain in place until 2011. Ms Gisladottir said a more powerful leadership was needed. "The government's actions in the last weeks and months were not swift enough," she said. Her party is now expected to look for new partners to form a government until the election. In recent months the Social Democrats had urged Mr Haarde to fire the central bank governor and move towards closer ties with Europe. Iceland, a country of about 300,000 people, has traditionally sought to stay outside the EU. But last month European Union Enlargement Commissioner Olli Rehn said the island might apply for membership as soon as this year.

    The extent of Iceland's trouble became evident as conditions tightened in global credit markets last year. It emerged that the country's banks, which had amassed debt during years of rapid expansion, owed about six times the country's economic output. Money from around the world had also poured into Iceland because interest rates there exceeded 10%.

    Mr Haarde's government responded to the financial collapse by nationalising leading banks. It also negotiated about $10bn in loans with the International Monetary Fund and donor countries. Commerce Minister Bjorgvin Sigurdsson resigned on Sunday citing the pressures of the economic meltdown.

    ICELAND'S WOES
    October 2008 - Government takes control of three largest banks
    20 November - IMF approves $2.1bn (£1.4bn) loan for Iceland
    26 November - Annual inflation rate hits record 17.1%
    20 January - Economy forecast to shrink by 9.6% in 2009
    23 January - PM Geir Haarde calls snap election for 9 May
    26 January - Government resigns following breakdown of coalition

    Dis' on
  • BurtletoyBurtletoy Registered User regular
    edited January 2009
    OptimusZed wrote: »
    Burtletoy wrote: »
    OptimusZed wrote: »
    How does a representative democracy just dissolve? Even if these people can't agree on a single goddamn thing there's still a (horribly gridlocked) decision making body here, right?

    It's not like a dozen different packs of 4th graders picking up their ball and going home. Unless everyone just vacated the government en masse, this just doesn't work.

    What the hell am I missing here?

    It isn't a two party system.
    That's got nothing to do with it. Having 3+ parties doesn't magically make a country prone to catastrophic leadership loss.

    I disagree.

    Burtletoy on
  • Nova_CNova_C I have the need The need for speedRegistered User regular
    edited January 2009
    Burtletoy wrote: »
    OptimusZed wrote: »
    Burtletoy wrote: »
    OptimusZed wrote: »
    How does a representative democracy just dissolve? Even if these people can't agree on a single goddamn thing there's still a (horribly gridlocked) decision making body here, right?

    It's not like a dozen different packs of 4th graders picking up their ball and going home. Unless everyone just vacated the government en masse, this just doesn't work.

    What the hell am I missing here?

    It isn't a two party system.
    That's got nothing to do with it. Having 3+ parties doesn't magically make a country prone to catastrophic leadership loss.

    I disagree.

    Why's that? There's lots of >2 party systems out there.

    Nova_C on
  • KazhiimKazhiim __BANNED USERS regular
    edited January 2009
    does this mean EVE online is going to shut down?

    Because I'm totally cool with that.

    Kazhiim on
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  • ObsObs __BANNED USERS regular
    edited January 2009
    Burtletoy wrote: »
    I disagree.


    Then you are alone in those sentiments.



    Also, EVE Online is pretty much going to be fucked as a result of this. Aren't they based in Ice Land?

    Obs on
  • GoslingGosling Looking Up Soccer In Mongolia Right Now, Probably Watertown, WIRegistered User regular
    edited January 2009
    Iceland was getting along nicely until the day they decided to bring in the smelters. Right about there was when people started to get angry with each other, and this is apparently the end result. Bhutan's been undergoing some modernization too and they're having some of the same growing pains, albeit at lower voltage.

    What I'm taking away from this is, if you're lagging behind other countries as far as economic and technological progress, but are perfectly happy regardless, resist the urge to tinker.

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  • BurtletoyBurtletoy Registered User regular
    edited January 2009
    Nova_C wrote: »
    Burtletoy wrote: »
    OptimusZed wrote: »
    Burtletoy wrote: »
    OptimusZed wrote: »
    How does a representative democracy just dissolve? Even if these people can't agree on a single goddamn thing there's still a (horribly gridlocked) decision making body here, right?

    It's not like a dozen different packs of 4th graders picking up their ball and going home. Unless everyone just vacated the government en masse, this just doesn't work.

    What the hell am I missing here?

    It isn't a two party system.
    That's got nothing to do with it. Having 3+ parties doesn't magically make a country prone to catastrophic leadership loss.

    I disagree.

    Why's that? There's lots of >2 party systems out there.

    My opinion here is about Proportional Representation multiparty systems. To me, it seems very clear, that having two opposing parties coalesce into one body in order to rule would clearly add more strife between the two parties that are all mashed into one. This will in turn make one of the groups in the coalition government more likely to want to use their power, aka the possibility of leaving the coalition and destroying the government, to get what they want. If you don't give it to them, bam, no more majority party.

    Not all multiparty systems collapse, but it seems reasonable to assume they are more prone to collapse than a two party system.

    Burtletoy on
  • Nova_CNova_C I have the need The need for speedRegistered User regular
    edited January 2009
    Burtletoy wrote: »
    My opinion here is about Proportional Representation multiparty systems. To me, it seems very clear, that having two opposing parties coalesce into one body in order to rule would clearly add more strife between the two parties that are all mashed into one. This will in turn make one of the groups in the coalition government more likely to want to use their power, aka the possibility of leaving the coalition and destroying the government, to get what they want. If you don't give it to them, bam, no more majority party.

    Not all multiparty systems collapse, but it seems reasonable to assume they are more prone to collapse than a two party system.

    Only IF there's a coalition. Canada, for example, hasn't had a coalition government since 1917. And that's assuming that your assumption is even correct, which I'm not convinced it is.

    Pretty much all that happens when a coalition falls is a snap election is called. In the US elections run for like, two years. Canada had one start in finish in a couple months. It's hardly leaving the nation without leadership.

    Nova_C on
  • ThanatosThanatos Registered User regular
    edited January 2009
    Burtletoy wrote: »
    My opinion here is about Proportional Representation multiparty systems. To me, it seems very clear, that having two opposing parties coalesce into one body in order to rule would clearly add more strife between the two parties that are all mashed into one. This will in turn make one of the groups in the coalition government more likely to want to use their power, aka the possibility of leaving the coalition and destroying the government, to get what they want. If you don't give it to them, bam, no more majority party.

    Not all multiparty systems collapse, but it seems reasonable to assume they are more prone to collapse than a two party system.
    You mean like a coalition between religious conservatives and low-tax advocates? Or a coalition between environmentalists and labor unions?

    In any case, in most parliamentary systems, a "failing government" is built into the system. When the government loses a vote of confidence (in a British-style system, any vote can be declared a matter of confidence), the PM resigns, and new elections are held. Yes, this makes it easier to bring down a government, but at the same time, it creates a big incentive for dealmaking (because people don't like bringing down the government). If we'd had a similar system in the U.S., Dubya would have been out on his ass two years ago (which I'm not saying makes the system inherently superior to the U.S. system; I'm just saying it has certain advantages).

    Thanatos on
  • BurtletoyBurtletoy Registered User regular
    edited January 2009
    Thanatos wrote: »
    Burtletoy wrote: »
    My opinion here is about Proportional Representation multiparty systems. To me, it seems very clear, that having two opposing parties coalesce into one body in order to rule would clearly add more strife between the two parties that are all mashed into one. This will in turn make one of the groups in the coalition government more likely to want to use their power, aka the possibility of leaving the coalition and destroying the government, to get what they want. If you don't give it to them, bam, no more majority party.

    Not all multiparty systems collapse, but it seems reasonable to assume they are more prone to collapse than a two party system.
    You mean like a coalition between religious conservatives and low-tax advocates? Or a coalition between environmentalists and labor unions?

    I believe that if we split our two parties into four as your question suggests, that whichever party was actually in the #1 position, the labor unionists, would be trying much harder to push their agenda and would be more prone to spurning the environmentalists, which they require to ensure that it doesn't collapse.

    Burtletoy on
  • ElJeffeElJeffe Registered User, ClubPA regular
    edited January 2009
    Thanatos wrote: »
    Burtletoy wrote: »
    My opinion here is about Proportional Representation multiparty systems. To me, it seems very clear, that having two opposing parties coalesce into one body in order to rule would clearly add more strife between the two parties that are all mashed into one. This will in turn make one of the groups in the coalition government more likely to want to use their power, aka the possibility of leaving the coalition and destroying the government, to get what they want. If you don't give it to them, bam, no more majority party.

    Not all multiparty systems collapse, but it seems reasonable to assume they are more prone to collapse than a two party system.
    You mean like a coalition between religious conservatives and low-tax advocates? Or a coalition between environmentalists and labor unions?

    Exactly. That would never happen.

    Religious folks and low-tax folks working together? Psh. May as well add "pro-war ideologues" in there for extra zany.

    ElJeffe on
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  • jothkijothki Registered User regular
    edited January 2009
    Yeah, the US's system is is just as coalitionistic as parlimentary systems, it's just that the coalitions are only allowed to collapse during elections.

    jothki on
  • bongibongi regular
    edited January 2009
    Basically right now is the only time I'm glad to have a first past the post system. At least something like this is very unlikely in the UK, especially right now when our economy is about to follow Iceland up shit creek, paddling with only its hands.

    bongi on
  • Lizz the BlizzLizz the Blizz Registered User regular
    edited January 2009
    This is nothing. In the course of 2007 and 2008, Belgium spent about half a year before an actual government was formed after elections.

    Out of pure misery, a temporary government was formed for a few months then, before power was handed over to an unstable mess of everyone who ever wanted to do politics. Except for the socialists.

    For a couple of months, nothing whatsoever got done, banks started crashing right and left, and now the prime minister has resigned again.

    And really, us Belgians stopped caring about a year ago. Nothing much has changed, and we're still sort of just moving along... existing.

    Lizz the Blizz on
  • shrykeshryke Member of the Beast Registered User regular
    edited January 2009
    Wow, a coalition breaking apart in a Parlimentary system?

    Yeesh, I thought something noteworthy had actually happened.

    shryke on
  • geckahngeckahn Registered User regular
    edited January 2009
    shryke wrote: »
    Wow, a coalition breaking apart in a Parlimentary system?

    Yeesh, I thought something noteworthy had actually happened.

    You'd think the capitol building had been burned down by the OP title or something.

    geckahn on
  • DukiDuki Registered User regular
    edited January 2009
    Except for the socialists.

    Thank God for that.

    8-)

    Duki on
  • DakeyrasDakeyras Registered User regular
    edited January 2009
    Hah, stuff like this happens all the time in countries with multiparty systems. Hell, I don't think there has been an Italian coalition that has made it till the end of it's term since WW2.

    Dakeyras on
  • AdrienAdrien Registered User regular
    edited January 2009
    So I take it the use of "government" in this context refers to what we Americans would call the "administration"?

    Adrien on
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  • HachfaceHachface Not the Minister Farrakhan you're thinking of Dammit, Shepard!Registered User regular
    edited January 2009
    The headlines really are incredibly misleading. My first thought when I read NYT's headline, "Iceland's Government Collapses," was something along the lines of "Oh no! I hope they don't all starve!"

    Hachface on
  • BurtletoyBurtletoy Registered User regular
    edited January 2009
    Only misleading because us Americans define the word government different than everyone else.

    Burtletoy on
  • ElJeffeElJeffe Registered User, ClubPA regular
    edited January 2009
    Worst Thread Title Ever.

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  • geckahngeckahn Registered User regular
    edited January 2009
    Burtletoy wrote: »
    Only misleading because us Americans define the word government different than everyone else.

    what with our government being defined as the executive, and not a parliamentary coalition.

    Of course people like the editors of the NYT and whoever wrote the OP should know these things.

    geckahn on
  • BurtletoyBurtletoy Registered User regular
    edited January 2009
    geckahn wrote: »
    Burtletoy wrote: »
    Only misleading because us Americans define the word government different than everyone else.

    what with our government being defined as the executive, and not a parliamentary coalition.

    Of course people like the editors of the NYT and whoever wrote the OP should know these things.

    I think most Americans define Government to mean The Constitution and everything that has spawned from it. Whereas most definitions of the word are more inline with current people in charge of governing, the current body politic.

    Burtletoy on
  • RingoRingo He/Him a distinct lack of substanceRegistered User regular
    edited January 2009
    I don't think the Constitution enters into the thought process of many Americans when talking about the government.

    Ringo on
  • AegisAegis Fear My Dance Overshot Toronto, Landed in OttawaRegistered User regular
    edited January 2009
    Adrien wrote: »
    So I take it the use of "government" in this context refers to what we Americans would call the "administration"?

    Your administration is really the Executive and in parliamentary governments, the Executive is basically equal to the Prime Minister (and his office). The 'government' is the parliament itself which would be the legislative body, with the Prime Minister usually there with his party. It runs the country, passing the laws, housing the bureaucracy, etc.

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  • ThisThis Registered User regular
    edited January 2009
    Okay seriously. Please change the thread title and content of the first post or something. Iceland has not disappeared under the waves.

    This on
  • OptimusZedOptimusZed Registered User regular
    edited January 2009
    This wrote: »
    Okay seriously. Please change the thread title and content of the first post or something. Iceland has not disappeared under the waves.
    ... yet.

    OptimusZed on
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  • CuddlyCuteKittenCuddlyCuteKitten Registered User regular
    edited January 2009
    They are in pretty deep trouble right now. Economically they are about as screwed as they can be and without leadership they aren't going to get anything done. They have quite a cash infusion with the IMF money they had but they really, really need good leadership that can handle that money responsibly because they don't have the GDP to handle the situation if the piss it all away (again...).

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