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They should tell the IMF and the banks to fuck off, and enter into partnership arrangements with bauxite producers to supply bauxite in exchange for a percentage of the refined aluminium.

Then they could sell a few million Units redeemable in aluminium to the Chinese etc and pay off as much of the loans as is reasonable to get the monkey off their shoulder.

Alcoa could stay as an operating partner on a production share, or a competitor would probably do it instead - certainly a consumer nation.

Essentially Iceland would then be exporting their energy in the form of aluminium.

They could solve most of the rest of their problem - which is the absolutely surreal housing debt (index-linked principal!) by unitising land rentals as I suggest.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Apr 26th, 2009 at 07:34:42 PM EST
The new government is looking to hire expert ministers.
by rifek on Mon Apr 27th, 2009 at 09:38:49 AM EST
[ Parent ]
Experts in keeping the Icelanders in hock

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Mon Apr 27th, 2009 at 10:35:50 AM EST
[ Parent ]
Hopefully, another flavor.  You might send the new Finance Minister a nice proposal on how to accomplish exactly what you have proposed before regarding conversion of the debt into shares in a new LLP.  That would be much harder for Alcoa to fight in court.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Apr 27th, 2009 at 12:41:41 PM EST
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Or he could send the new Prime Minister a CV...

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
by Migeru (migeru at eurotrib dot com) on Mon Apr 27th, 2009 at 12:46:30 PM EST
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Second!  But I didn't want to suggest such a massive commitment, given what I have come to understand of his preferences.  But functioning as a consultant on retainer could be as effective and less onerous than taking a ministerial role.  Off with the CV, Chris!

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Apr 27th, 2009 at 02:13:07 PM EST
[ Parent ]

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