The nation of lost faith

Things are going strange for Iceland now, the looming loan-payment strike led by the Household Interest Group could become a reality. The strike is for those  who see no reason to pay of those ever increasing loans any more, and for those who cannot pay anymore. It is not the people who are failing, it is the system.  A good article was written about the subject the other day (click here), and this site has talked about the surreality of massive debt write-off for the corporate world while the public has to bleed out and does not get any slack, see here.

The Economic Disaster Area calls the promise of the government, meant to be a  so called „fortress for the homes“, „the fortress of the banks“. That term is hard to deny as things are today. Hopefully it will change soon, but most people do not believe that because the faith in politicians is gone. Faith in the system is gone. The system has shown itself to favour the lenders and the special interests of those in power.

Faith in the international community is gone as well. As the IMF, our neighbours such as Scandinavia and the UK have completely lost the plot and put Iceland into massive trouble. That is an over simplification of the whole status because a few people and private companies made this mess happen, and the state must go bankrupt and the taxpayers have to pay for the criminal behaviour of those individuals. This was perpetuated by the lack of will to negotiate and help the nation, instead of pressuring the nation to pay a.s.a.p. with no regard to consequences.  There is the fault of the international community. Even the EU has failed for not recognising that the fall of Iceland made them able to fix their own regulatory system (see more that here) that will prevent such a travesty again, but Iceland has to pay fully.

Icesave. The Dutch and the British government went against their own rules and hanged the Icelandic nation and its people out to dry, by paying in full the loss of Icesave, and sending the Icelandic government the bill.

Even the offshore islands are feeling the pressure. The Cayman Islands are close to bankruptcy. The Guardian newspaper similar thing is happening to the Caymans as the British government is refusing to help them, just like they did with Iceland. A quote from the Guardian:

“But the situation is about to get worse after the British government, which has ultimate responsibility for the islands, last week refused to bail out the Caribbean idyll. It is not convinced the country will have the money to pay it back. At the same time, hundreds of civil servants found that pension contributions and health insurance payments were missing from their pay slips. Contractors and government suppliers also had bills unpaid.”

The only difference is that Iceland could pay it’s people, but not after the British government used the EU and the IMF to put political and financial pressure on Iceland and it‘s people, there is serious doubt about the future.


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