Let me start by saying that I did a search on this and this seems to be an update to what has previously been run here on this subject. My other
reason for posting this is because in earlier threads it was noted that the media is not covering this - one thread was based on a blog...
Let me give credit to the author of the headline;
Now lets go to the original story by Bloomberg;
Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of
more than a quarter of the population, according to a report published this month by the Icelandic Financial Services Association.
(Note; this link was embedded in the above paragraph. It is the report mentioned - in Icelandic - for those that wish to run their translator on
Icelandic Financial Services Association
“You could safely say that Iceland holds the world record in household debt relief,” said Lars Christensen, chief emerging markets economist
at Danske Bank A/S in Copenhagen. “Iceland followed the textbook example of what is required in a crisis. Any economist would agree with that.”
Any economist would agree? I wonder does that mean that American Bankers, Wall Streeters, Federal Reserve leaders are not economists? Or does it
mean that they are dishonest and have their own agenda that they are following here in the States?
“The lesson to be learned from Iceland’s crisis is that if other countries think it’s necessary to write down debts, they should look at
how successful the 110 percent agreement was here,” said Thorolfur Matthiasson, an economics professor at the University of Iceland in Reykjavik, in
an interview. “It’s the broadest agreement that’s been undertaken.”
In several previous threads I had held up the example of Venezuela and how well they did when Hugo Chavez did the same thing with that country's
fictitious debt. Each time the naysayers have said that it would never work in a country this large and an economy this indebted, when I think what
they really meant is that TPTB would never allow this to happen. Well now another country has shown us that this is indeed the way out of our
man-made and contrived crisis.
Iceland’s approach to dealing with the meltdown has put the needs of its population ahead of the markets at every turn.
Once it became clear back in October 2008 that the island’s banks were beyond saving, the government stepped in, ring-fenced the domestic accounts,
and left international creditors in the lurch. The central bank imposed capital controls to halt the ensuing sell-off of the krona and new
state-controlled banks were created from the remnants of the lenders that failed.
So to me this sounds like the way out of the Wall Street Wonderland that we seem
to be stuck in. And one key ingredient are new
state-controlled banks, as opposed to the bank-controlled State that we live in.
Of course the American bankers will not like any of this. After all, they just gained complete control over the country, they certainly wouldn't
want to give it up so soon. However we the people need to step up to the plate and call our Reps and Sens and let them know that we need to assume
the role of a Father who does not allow his children to play with his guns, especially when this one is pointed at our heads.
So the choice seems clear to me; do we want to follow the two examples of what has worked, or the myriad of examples of what is not working as in
Greece, USA, Germany, and the list goes on and on...
“There are still a lot of people facing difficulties; at the same time there are a lot of people doing fine,” Kristjansson said. “It’s
nearly impossible to say when enough is enough; alongside every measure that is taken, there are fresh demands for further action.”
Time to make our demands heard. I heard somewhere that each phone call a US legislator receives is viewed as representative of 1300 citizens who are
too lazy to make the call, email or write the letter. Seems this little calculation could be used in our favor if we all quit being lazy. I have,
how about you?