Hence the torrent of funds chasing higher yield began and which all unraveled when the banking system in Iceland collapsed in the fall of 2008. Since then has been a game of chess between Iceland and the European community as the the governments there, (Dutch and British in particular) strong arm the Icelandic government to make good on the losses, as they have reimbursed depositor's losses fully expecting to be able to strong arm Iceland via their muscle the IMF and the World Bank (the enforcers) into paying. Europe is also trying to leverage Iceland desires to enter the EU to their advantage.
They may have very well succeeded, up until the point where the Icelandic masses got wind of the stench for what it truly was, a government sanctioned EXTORTION scheme. An extortion scheme that would leave the Icelandic taxpayers and their children, and their children's children on the hook for $4.3 billion euros.
It seems that the deal for extortion was signed sealed and oooops....the plot thickens. It appears the people of Iceland, in particular 60,000 out of a total of 320,000 (or about 19%) have signed a petition objecting to being , your can insert your own adjective here. Bloomberg reports that over 70% of the country object to the agreement.
"The bill, which polls show about 70 percent of the population opposes, had obliged Iceland to use $5.5 billion in borrowed funds from the U.K. and Netherlands to cover depositor claims from the two countries after the failure of Landesbanki Islands hf in October 2008. The absence of clear cross-border regulatory rules on depositor insurance has allowed settlement of the claims to drag on and left Icelandic taxpayers disgruntled over having to pay for the failure of a private bank. "
thus forcing the President to veto the previously agreed to agreement. The Brits have responded to the agreement veto with this;
"Iceland would cut itself off from global financial assistance if its people vote not to compensate Britain and the Netherlands for losses caused by the collapse of Icelandic bank Icesave, Britain's financial services minister Paul Myners said on Tuesday."
"The Icelandic people, if they were to reach that conclusion, would effectively be saying that Iceland does not want to be part of the international financial system, that Iceland doesn't want to have access to multi-national, national and bilateral funding and doesn't want to be regarded as a safe counter-party with whom to do business,' Myners said."
Don't you just love it when not only bankers but the politicos are all involved in doing God's work. My sincerest congratulations to the citizens of Iceland. Tell them all to shove their concerns where the sun don't shine and if they want redress they should round up the guilty bankers, set up shop in a public square, buy a guillotine, sell tickets.... ahhh, but yet again I digress.
Something else in the news regarding this caught my eye as well;
"Another problem looming for Iceland is the IMF loan which the country was granted to help solve the financial crisis. The IMF lent Iceland billions of dollars - on condition that the Icesave dispute with the UK and the Netherlands would be solved. The IMF has not reacted to the latest developments."
Tell the thugs at the IMF, whose goal is to make the face of the planet a debt indentured slave, to piss off. (I'd use more colorful language but his is a family channel). Pay em' back and tell em' to scram. Don't pay em' off and tell em send you to collections. Either way get as far away from those leeches and parasites as possible.
Congratulations to the citizens of Iceland but don' t take your eye off the ball. The IMF and World Bank will offer every carrot(re: trap) in the book to your political leaders. DO NOT BE FOOLED. Tell them NO means NO. While your at it remind them extortion is illegal. Sadly is seems to be legal here in the U S of A.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
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