Merced County and Iceland

Badlands Journal, in its remorseless efforts to understand Merced County, has embarked on a series of comparative economic studies. In fact, in the hope of boosting sagging UC Merced enrollment, Badlands plans to endow a chair in comparative econometric modeling, complete with oodles of math and whirring computers, just as soon as it is solvent. Or is it liquid?
Imagine, the government of a nation with only 50,000 more people than Merced County is being held responsible for that nation's economic collapse!
At first glance, there does not seem to be much basis for comparison between Iceland and Merced County, but as all real good economists know, the poetry is in the numbers.
The population is basically the same and so is the economic condition -- disastrous.
Yet, Iceland has only 0.07-percent arable land and fishing is the basic industry. There are more whalers than farmers in Iceland, while the reverse is true in Merced County. 
But, there is also extensive mining in Iceland, which offers some comparison with Merced County's endless stream of sand and gravel mines.
Iceland had begun to diversify into manufacturing and computer-related industries, the old high-tech, bio-tech engine of growth that UC Merced was supposed to instantly provide Merced County except that all the "money" (credit) was in real estate.
Iceland's now-collapsed banks got into international high finance, another point of comparison with Merced County, where no one quite knows who owns what slice of whose mortgage.
But Iceland, although in recent centuries a possession of larger states until 1944, boasts the oldest democratic legislative body in the world, the Althing, founded in the 10th century. Merced is located in California, where it is being reported for the first time since the last Jerry Brown administration that drums are beating audibly for a constitutional convention. The institute of governmental studies bearing Brown's father's name, has been describing the state as ungovernable for years, an opinion occasionally shared by the dean of state Capitol newsmen, Dan Walters and others. It has even now been suggested by our governor, the Hun, in his most recent State of Mess address. Perhaps, it will be a reprise of his famous Terminator role.
Hundreds of Icelanders, perhaps due to their ancient traditions, demonstrated in front of its parliament for months until the coalition government collapsed. Furthermore, they did this in the Icelandic winter, a very serious winter indeed, with only a few hours of daylight.
Gisladottir said yesterday: "We would become like a divorcing couple, shouting at each other, if we continued like this. That's not my style."
Imagine such a statement from the coalition of Republicans and Democrats that run Merced County.
Imagine more, as did a Merced County supervisor in a recent meeting, muttering darkly that, "There are people trying to take over this county":
"A new government should be formed by the end of the week," Baldur Thorhallsson, a political science professor from the University of Iceland, said.
"It seems most likely that we will have a minority government of the Alliance party and the left-greens."
Steingrimur Sigfusson, leader of the left-greens, offered a national government in October, when the collapse became apparent, which the government rejected. Sigfusson said that he is now considering all possibilities.
Iceland, where literacy has been universal since the 18th century, is a highly educated society. Merced County, on the other hand, is located in California, where K-12 education funding ranks 47th in the nation. That ranking may fall a notch or two as a result of the 2009 state budget because the California Legislature is dominated by finance, insurance and real estate special interests, who do not give a damn about public education, except as it might increase the price of a home product in a subdivision. In this economy, these special interests aren't especially interested in this issue this year.
Although Iceland's unemployment in 2008 is reported to have been 1 percent, in the last quarter and carrying through to January 2009, due to the economic crisis, the Icelandic unemployment rate has risen to around 6 percent. Merced County reported 15.5 percent unemployment last weekend.
Teams of Badlands' number crunchers are busy providing the editorial board with deeper insights into relationships between Merced County and Iceland. The whole meteriological issue, for example, must be quantified in light of global warming, officially called "climate change" at UC Merced. They ask no thanks from local government or the university for this service. It is enough, they report, to know that they are voluntarily performing their civic duty.
1-27-09
The Guardian (UK)
Icelandic PM becomes world's first leader to step down over banking system crisis• Geir Haarde calls for early elections amid protests
• Country faces economic contraction of up to 10%...Valur Gunnarsson in Reykjavik and Mark Tran
http://www.guardian.co.uk/world/2009/jan/27/iceland-prime-minister-resignation
The global economic crisis claimed its first leader yesteday, as Iceland's prime minister announced the immediate resignation of his government following the collapse of the country's currency and banking system.
Geir Haarde said as recently as Friday that his coalition would remain in office until early elections, called for 9 May, after violent protests at its handling of Iceland's tottering economy.
Yesterday he threw in the towel, saying that his Independence party and its Social Democratic Alliance partners were quitting immediately as he could not accept a demand by the Alliance to take over the premiership.
"What I have feared the most has come to pass, we now have a governmental crisis on top of the economic one," Haarde said.
The prime minister told reporters that a continuing of the coalition would have been the best result. "We couldn't accept the Social Democratic demand that they would lead the government. That is not something we agreed on in 2007."
The government started with a famous kiss between Haarde and Ingibjorg Solrun Gisladottir, the head of the Alliance party, in the spring of 2007.
The government held a two-thirds parliamentary majority and would have remained in power until the spring of 2011 had it not been for the country's economic meltdown.
Gisladottir said yesterday: "We would become like a divorcing couple, shouting at each other, if we continued like this. That's not my style."
Iceland's president, Olafur Ragnar Grimsson, said he was unlikely to give any party a mandate to form a new government until today.
"It's very natural that the president will first sound out if there is a majority to be found in parliament," he said. "I have asked everyone in the current (administration) to continue to do their jobs until a new government has been formed."
Haarde has been in office since mid-2006. The 57-year-old has the dubious distinction of being the first world leader to leave office as a direct result of the world financial crisis. Last week, Haarde revealed he had been diagnosed with throat cancer and would not be seeking reelection anyway.
The prime minister's previous national popularity was obliterated in October when the global credit crisis ravaged Iceland's hugely indebted economy, leading to a collapse in the country's currency, the crown, and forcing the government to take control of its three major banks.
The population of 320,000 - who had enjoyed years of rising incomes and high growth rates, thanks in no small part to an economy burdened with a foreign debt that peaked at 10 times the annual national GDP - now face a potential economic contraction of up to 10% this year, with unemployment rising rapidly.
After months of rallies outside the parliament building, last week protesters pelted Haarde's car with eggs while riot police used teargas for the first time since 1949.
The protests continued at the weekend despite Haarde's announcement of the early election.
Yesterday the country's commerce minister, Bjorgvin Gudni Sigurdsson, resigned, apologising for the collapse.
"I accept my part of responsibility in the collapse of the banking sector even if numerous other people have their share of responsibility," Sigurdsson, a Social Democrat, told a press conference.
Who will take over from Haarde is unclear. Gisladottir, currently Iceland's foreign minister, immediately ruled herself out.
Gisladottir has only just returned to Reykjavik after undergoing treatment for a brain tumour in Sweden.
Gisladottir has called for another senior member of her party, Johanna Sigurdardottir, the social affairs minister, to lead a new government.
"A new government should be formed by the end of the week," Baldur Thorhallsson, a political science professor from the University of Iceland, said.
"It seems most likely that we will have a minority government of the Alliance party and the left-greens."
Steingrimur Sigfusson, leader of the left-greens, offered a national government in October, when the collapse became apparent, which the government rejected. Sigfusson said that he is now considering all possibilities.
Protesters celebrated the fall of the coalition government with a party outside the parliament building.
"I am proud of the Icelandic people to have driven this off their hands. Now that the suspect is leaving the scene of the crime, the investigation can begin," Illugi Jokulsson, a publisher, said.
"The Independence Party should not run anything except the transportation ministry at most," Erpur Eyvindarson, a rapper, said.
Eyvindarson continued: "They ignored us in 1949, they ignored us when they went to war in Iraq and when they dammed the highlands. They will ignore us no more."