The Reasoned Review

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Iceland Does the Right Thing – Refuses to Pay Absurd Debt

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And, of course, Times is spinning it like it’s a bad thing. During the panic of aught-eight, the Icelandic economy crashed, their currency, the Kronor, became nearly worthless, and 85% of their banking system collapsed. They were the first national victim of the securitization Ponzi scheme – the same scheme that’s currently threatening the EU. When the dust settled, Iceland found itself owing Britian and the Netherlands more than 40% of their GDP. As the Times notes, this would be the equivalent of America owing $5 Trillion (which we actually did borrow to fix our own crisis, but don’t talk about that.)

Icelanders are, naturally, incensed, and it looks as though they’re going to refuse to pay up. Their debt is equivalent to approximately $62,000 per household here, and just try and imagine if our leaders tried to get everyone to deduct $62,000. They’re having a referendum on the latest repayment plan, and no one thinks it’s going to pass.

However, this hasn’t stopped the Times from threatening Iceland with becoming an “international pariah” if they end up defaulting. Debts must be paid, after all – even to gangsters and con artists.

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Written by pavanvan

March 6, 2010 at 12:13 am

Posted in Economy

Tagged with ,

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