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Iceland, a country that wants to punish the bankers responsible for the crisis

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#1 TEO



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Posted 18 May 2012 - 01:43 AM


Since 2008 the vast majority of the Western population dream about saying "no" to the banks, but no one has dared to do so. No one except the Icelanders, who have carried out a peaceful revolution that has managed not only to overthrow a government and draft a new constitution, but also seeks to jail those responsible for the country's economic debacle.




Last week 9 people were arrested in London and Reykjavik for their possible responsibility for Iceland’s financial collapse in 2008, a deep crisis which developed into an unprecedented public reaction that is changing the country's direction.
It has been a revolution without weapons in Iceland, the country that hosts the world's oldest democracy (since 930), and whose citizens have managed to effect change by going on demonstrations and banging pots and pans. Why have the rest of the Western countries not even heard about it?

Pressure from Icelandic citizens’ has managed not only to bring down a government, but also begin the drafting of a new constitution (in process) and is seeking to put in jail those bankers responsible for the financial crisis in the country. As the saying goes, if you ask for things politely it is much easier to get them.

This quiet revolutionary process has its origins in 2008 when the Icelandic government decided to nationalise the three largest banks, Landsbanki, Kaupthing and Glitnir, whose clients were mainly British, and North and South American.

After the State took over, the official currency (krona) plummeted and the stock market suspended its activity after a 76% collapse. Iceland was becoming bankrupt and to save the situation, the International Monetary Fund (IMF) injected U.S. $ 2,100 million and the Nordic countries helped with another 2,500 million.

Great little victories of ordinary people

While banks and local and foreign authorities were desperately seeking economic solutions, the Icelandic people took to the streets and their persistent daily demonstrations outside parliament in Reykjavik prompted the resignation of the conservative Prime Minister Geir H. Haarde and his entire government.

Balance of article in the link: http://www.pressenza...-for-the-crisis

#2 PeaceFrog

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Posted 18 May 2012 - 09:13 PM

crazy... interesting.

it seems to me that drastic change isn't possible without a corresponding financial collapse...

#3 capt_morgan

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Posted 18 May 2012 - 09:25 PM

tell them to shut up...they have volcanos to deal with :rolleyes:

#4 PeaceFrog

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Posted 18 May 2012 - 10:24 PM

bronze is useless to me. They give it away for third place in the Olympics.

#5 Esau

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Posted 23 May 2012 - 01:01 PM

Iceland has been in talks with Canada for quite awhile now about switching to the Canadian dollar - might just happen to by the sounds of it. Also, with Greenland having more independence from Demark, they have also made mention of adopting the Canadian dollar, depending on how things work out with Iceland.

Will ongoing economic uncertainty about the eurozone push Iceland into the stable arms of the Canadian dollar?
While the question may have seemed a loonie one only a decade ago, the idea has been gaining traction recently among Icelandic investors like Heidar Gudjonsson.

Gudjonsson is an economist at Iceland's Research Center for Social and Economic Studies.
He recently stated that Canada and Iceland share Arctic geography and export-driven economies. Gudjonsson also noted that Canada's sound economy is buffered by a wealth in natural resources like oil and water, making the loonie a stable long-term bet. "Their export mix is very, very similar to ours," he said in November.

Iceland is still reeling from the 2008 economic collapse, which destroyed the country's banking system.
Now, with the eurozone facing ongoing debt issues, Iceland is looking west for a currency solution.
It seems Canada is also warming to an alliance between the two frosty nations. Iceland's RUV media reported Friday that Canada's ambassador to Iceland will touch on the matter during remarks Saturday in Reykjavik.Ambassador Alan Bones is expected to say that Canada is open to discussions over the plan.

While Iceland would lose their autonomy in terms of monetary policy if they ditch the krona for the loonie, Gudjonsson said last year that the move is a "sensible" choice.


#6 TEO



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Posted 23 May 2012 - 01:07 PM

Seems like a solid move.

#7 TakeAStepBack

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Posted 23 May 2012 - 01:08 PM

Trading one central bank in for another.....interesting concept. Why doesn't Iceland just create their own interest free currency and start the trend? I don't get it. Although, Canada's CB policies are far superior to the US inflation version.