Reykjavík Grapevine - Jul 2022, Page 6

Climate change is really taking a turn for
the (even) worse, with the ocean recently
deciding to call it quits and bid us all adieu.
We knew sea levels were rising but had no
idea the water had decided to say good-
bye entirely!
But wait, that’s not the only thing wrong
with this headline. Apparently the sea has
only been working for half a century—a
miscommunication that would make any
historian, oceanographer, or geologist run
for higher ground.
This headline conjured up images of the
ocean rising out of the ground, or worse,
disappearing entirely—leaving Iceland
and the rest of the world high and dry. We
at The Reykjavík Grapevine were mightily
baffled by this reported turn of events,
until we looked out the window and re-
alized good ol’ Google had muffed it up
again, pulling a fast one on all of us in the
process.
The original headline reads “Kveður hafið
eftir rúma hálfa öld á sjó,” but our friends
at Google translated it to “The sea says
goodbye after more than half a century
at sea.” Believe it or not, Icelanders have
multiple words for “sea.” In this confus-
ing kerfuffle of a sentence, “hafið” and
“sjó” are effectively both referring to that
big body of water—but in fact fisherman
Kristján Björnsson is saying farewell to the
sea (hafið), after he spent over 50 years
at sea (á sjó). It’s a happy retirement mes-
sage with a nautical twist.
So it looks like we’re safe from a desolate,
waterless future—for now. Maybe the
folks over at Google were trying to send
us a warning message. They are, after all,
in California, so they know a thing or two
about drought.
So don’t make the water mad, or it may
retire…forever. EL
There is no disputing that Iceland's
inflation rate has been steadily rising
— from 4.3% in July 2021 to 7.6% in April
2022. The real question is what to do
about it, and the Central Bank, business
leaders, and union representatives all
have different approaches that indicate
a tough road ahead in the upcoming
wage negotiations.
Chair of the Central Bank Ásgeir Jóns-
son announced June 22nd that the bank
would raise its policy rate by another
percent, taking it to 4.75%. This is the
seventh such increase in the past year.
The raising of the policy rate is, of
course, an attempt to quell inflation,
but from there, things get more compli-
cated.
Purchasing power and
wages
While reluctant to say whether he
believed it is likely that the Confedera-
tion of Icelandic Employers (SA) will
be able to convince unions to settle for
a small wage increase, SA chair Halldór
Benjamín Þorbergsson pointed out that
Iceland's purchasing power is nearing
its peak. Data from Statistics Iceland
does show disposable income rising
steadily, and Halldór added that "some-
times you need to take one step back in
order to take two steps forward later.
I think that applies well to the fragile
state of the economy today."
The union response
Meanwhile, Drífa Snædal, the president
of the Icelandic Confederation of Labour
(ASÍ), pointed out that the policy rate is
higher now than it was three years ago,
when the previous wage agreements
were approved. Rather than seeing
wages driving inflation, she believes
the inflation rate can be attributed to a
runaway housing market.
Wages, housing and
inflation
The housing market can have a real and
significant effect on inflation, brought
about by demand outpacing supply to a
great degree. It is no secret that hous-
ing prices in Iceland have been rising
dramatically while supply remains
constrained — and rising policy rates
contribute to the cost of owning a home.
This has in turn affected the rental
market, which hits lowest income earn-
ers especially hard.
Whatever the next few weeks and
months bear out, one thing is certain:
upcoming wage negotiations are going
to be hard fought.
ASK AN EXPERT
Q: Why are horses
important to
Icelanders?
Words: Asha Edmondson
Photo: Jelena Ohm
If you have ever driven through the
Icelandic countryside, you have likely
caught glimpses of majestic Icelandic
horses standing in farmers’ fields.
Perhaps your first introduction to
Iceland was its special equine. But
what makes the Icelandic horse so
special and culturally significant?
We asked Jelena Ohm from Horses of
Iceland.
“With the settlement of Iceland they
brought along the horses, and it’s
many people’s opinion that without the
horses Icelanders would have never
survived in this harsh environment. At
the time, they were the main means
of transportation, they were means
for food, they were means for shelter,”
explains Jelena. “I don’t think you can
really talk about the history of Iceland
without the Icelandic horse because it
is so interwoven within the Sagas and
the history.”
“That relationship kind of progressed
over the years and with the Industrial
Revolution and cars coming in,” Jelena
continues. “It changed the relationship
between the horses and Icelanders
because they started to turn more into
life companions.”
The relationship developed, and now
Icelandic horses are used for hobbies,
competitions, tourism and breeding.
As the relationship between Icelanders
and horses shifted, it has allowed for
more professionalism, innovation
and opportunities for the continued
symbolism of the Icelandic horse.
“So many people are here because of
the Icelandic horse. I know so many
people who first became aware of
Iceland because of the Icelandic horse,
and who now live and work here with
them,” adds Jelena. “We think of them
today as the best ambassadors for
Iceland.”
Inflation: What’s Causing
It & What To Do About It?
The Central Bank, management and labour at odds
Words:
Andie Sophia
Fontaine
Photo:
Art Bicnick
First
LOST IN GOOGLE TRANSLATION
The Sea
Bids
Farewell—
To Itself
6The Reykjavík Grapevine
Issue 07— 2022
SMASHED BURGERS
AND NASHVILLE-STYLE
HOT CHICKEN IN
DOWNTOWN
REYKJAVÍK
HAFNARSTRÆTI
101 REYKJAVÍK