Friday, January 8, 2010

Iceland Update- Age of Austerity?

A bill that would finalise the island nation's repayment of the £3.2bn it owes to the British and Dutch governments after the collapse of Icesave looked as if it was about to go through;

The story of how that unravelled is one of intense and ham-fisted politics. It features an egotistical (noting the negative adjective) President sharply at odds with the will of his parliament, a furious Foreign Minister dismayed at the British response, and a serious failure of communication at the heart of the Icelandic government. But it's also a story of something simpler: a country that got sick of being told what to do. 

Tuesday's political earthquake began in the office of President Olafur Ragnar Grimsson. The head of state had merely to sign the coalition's Bill to set the Icesave repayment scheme in stone

In London, the reaction was swift—and stern. (Including threatening Iceland EU membership, odd for Britian)
The politicians are upset with the President, and the public are upset with the politicians, and no one knows quite what to do with the bankers.(I bet there are lots of thought on what to do with the bankers)

Final say: "Iceland was literally being taken over by oligarchs," says Andri Snaer Magnason, the author of Dreamland: a Self-Help Manual for a Frightened Nation. "This news makes us more frustrated than angry. Now people just want to get on with their lives."

Reasons Iceland does not want to repay
-Icelanders refer to Jean-Claude Trichet, president of the European Central Bank, and Wouter Bos, the Dutch finance minister, who both have stated publicly that the rules on deposit insurance were not designed for the collapse of an entire financial system, such as Iceland saw.
- A lot of the damage done can be directly attributed to the actions of the British government, which brought about, or at least contributed to, the collapse of the Icelandic banking system. Should the British not solve the problem they themselves created?


  1. An interesting interview with Johannes P. Skulason on the Max Keiser Report on Russia Today who has organised a website called InDefence and is petitioning for the Icelandic govt. not to sign the bill of the Icelandic people being liable for the debt of he collapesed Icesave bank into law.

    It looks like it will go to a referendum and they can tell the British and Dutch to piss off.

    Each man woman and child in Iceland somehow owe 12,000 euros of debt of the Icesave bank, which is a private bank owned by the first Icelandic billionaire Thor Bjorgolfsson who now seems to be hiding in the UK.

    If Gordon Brown wants some money back the guy who has it all is living just round the corner from him by the look of it.

    How is it that when the bankers make loads of profit we don't get a cut of it but when it all goes wrong we are liable for all of their debts?

    As Max brings up, there is also the question of reputational damage which Icelandic businesses could seek compensation for after Iceland was labeled as being terrorists by Gordon Brown.

  2. Go Iceland !!!! Tell the MF'ers they are number one - with your middle finger.

    THESE ARE NOT DEBTS!!! This "money" is war-script. It is worthless so there is no debt.

    Its a hoax perpetuated by the BAR association and the banks.

  3. Iceland: Send the members of the BAR back to the City Of London where they belong. Permanently expatriate them from your land. Never let them back in. Rid your country of corruption. Print your own asset money.