27 2 mins 11 yrs

Recession’s back, according to the OECD. It’s difficult to say how accurate the prediction is since the Bank of England makes it so difficult to find up to date money supply figures.

Somewhere recession is not back is Iceland. You remember it, small rocky place, no banks left since they all went bust. Iceland was battered more than any other nation in the European Economic Area because of its failed banks. The government wanted to stiff the people by loading bank debts onto them, the people told the government to get stuffed, all the experts predicted doom and free marketeers gave three cheers.

Last week Iceland’s credit rating was raised from Negative to Stable by S&P. Things seem to be moving the right way out of destruction then. In contrast to its report of doom for the UK and Europe, the OECD has a positive outlook for Iceland. GDP is at 2.9% and forecast to be 2.4% for the next couple of years. Unemployment is at 7.0% and falling. The Republic of Ireland, which (along with the UK) stands in contrast to Iceland in how failed banks were treated, has a pitiable GDP of 1.2% (almost as bad as the UK) and unemployment of 14.1%.

Well done to the people of Iceland. Their fight was right, they are vindicated and they are a lesson to everyone who is told that they must saddle the debts of banks which ought to have been allowed to go bust.

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27 thoughts on “MEANWHILE, IN ICELAND

  1. Again we see what happens when people power prevails over the control of government.
    Common sense versus the politicians.
    To be fair to Iceland, their government went with the voice of the people; whereas in the UK, the government DOESN’T WANT TO KNOW what the people think! Government only want more of your money, and more of your OBEDIENCE.
    Those who argue that democracy leads to government by the mob are wrong.
    EDUCATE the people.
    EXPLAIN the issues.
    DEBATE the issues.
    VOTE on the issues.

  2. Educate the people? You reckon that the government wants a well-educated mass of people who can think for themselves? Here’s what happens in reality.

    The people of Norway had these strange ideas that 3rd-worlders were just like them, only darker. They’re learning now, but at a severe price for some of these naive natives of Norway:


    This report (in Norwegian) describes how east Oslo is being overwhelmed by 3rd-world crime, mainly rape and robbery of silly Norwegian women and men who had the crazy idea that they could walk around their city unmolested – so last-century. Oslo has been ‘enriched’ and the thrill of being chased under threat of rape or violent assault is what makes Oslo so ‘vibrant’. The police admit that they have lost the city – yes, that’s what “Vi har tapt byen” is in English.

    However, the good news is that the Norwegian equivalent of the BNP is nowhere and soon Norwegians will be driven from their capital city. Just as well because nobody wants to be called ‘racist’, even if you’ve been mugged or raped by Nigerians.

  3. Is the UK still chasing Iceland for the money that the UK idiotically chose to pay to British account holders in Icelandic accounts?

  4. Yet more evdence that whatever postion Gordon Brown takes…it’s the wrong one. He’s very consistent. Always wrong. Even when he has the backing of the Obamessiah and lots of heads of state…he’s wrong.
    That takes a special kind of talent. Everything that man touches turns to sh*t.

  5. Allan,
    “Just as well because nobody wants to be called ‘racist’, even if you’ve been mugged or raped by Nigerians.”

    I don’t think it’s fear of being called racist.It’s more to do with western societies being settled, law abiding and mainly peaceful societies. We obey our governments, and until they tell us it’s time to retaliate/deport/imprison or whatever, we continue to suffer.
    Get it out of your head about the racist thing.
    Think instead “law abiding people, conditioned to obey.” Fine in a harmonious or homogenous society.
    Not so when you’ve had a large influx of people from very different cultures and religions.

  6. Agit – arguing with you is like trying to shape a cloud on an anvil. But I’ll give you this thought to mull over. Suppose the 120 million Japanese were moved from their islands and swapped for the 140 million Nigerians i.e. the populations changed location in an instant. What would the territory of Nigeria look like in 10 years’ time? How would the islands of Japan be in three months’ time? Let me know your thoughts.

  7. Pete


    That’s a lot different than. I had thought that things would work

    I’d thought that the government there had said that they were not going to pay any losses from these private banks

    $11 billion for a country that size is a huge account holder bailout

    Unless Iceland was receiving insurance payments all along to fund such a vast liability, that was an insane liability for the govt to ever allow itself to be responsible for

    The Icelandic taxpayer did get crucified after all it appears

  8. Phantom –

    They’re on the hook for foreign deposits, but the banks are still bust and bondholders are still singing for their money.

    Even with paying back deposits, Iceland’s economy is in recovery. It seems the main point of difference now with other countries in a similar situation is that the Icelandic people are not on the hook for vast losses incurred by bank bondholders.

  9. Im pretty sure the positive ratings are because the banks are getting what they want and not because the icelandic people are getting what they want. From what ive read recently the banks have infact won, despite the nations best efforts.

    It also doesnt make much sense that ratings agencies would be giving positive ratings to banking rejectionists considering that these same agencies are little more than the strong arm of the banking industry, bludgeoning anyone and everyone who will not come to heel. Germanys recent bond auction failure is yet more evidence of this.

  10. Pete

    But did not the voters say no to any bailouts of anybody?

    This is still one very massive bailout – of very irresponsible depositors

  11. Allan, the Germanic people of Europe were once wild, disorganised, lazy and unpunctual barbarians.

    Now they’re over-organised and wealthy designers of precision engineering.

    It’s amazing what circumstances can do. Let me know your thoughts.

  12. Noel Cunningham –

    “Allan, the Germanic people of Europe were once wild, disorganised, lazy and unpunctual barbarians.”

    This is Roman propaganda, and that’s no conspiracy theory. Renaissance and Enlightenment learning wasn’t all good. The ‘re-birth’ of wisdom lost in antiquity was a re-birth also of Roman chauvinism in some respects.

    We now know that Germanic and Celtic civilisation was much more sophisticated and advanced than was thought.

  13. “We now know that Germanic and Celtic civilisation was much more sophisticated and advanced than was thought.”

    There was certainly plenty of Roman propaganda, but they were still much less advanced, more disorganised and feckless than the Latinos or, gasp, the Greeks.
    I could also have given the example of how hopeless my countrymen were generlly considered by yours in the 19th C, and how the same people then fared in the New World.

    Or 100 other examples of how circumstance and not race explains the Japan vs Nigeria difference.

  14. Oh boy

    Talk about high theory

    Back to the topic

    How did the Iceland thing get turned around so that the taxpayers got truly robbed after all?

  15. Noel Cunningham –

    The Latinos and not particularly advanced bunch. It was the Romans who learned from Greek colonies and crushed the rest of the peninsular. Even so, as late as the Third Century BC Gallic tribes were running amok up and down the land. They even sacked Rome in the 4th Century BC.

    It’s one reason why later Roman writers were keen to play up the wild and mysterious nature of barbarians.

    As for the Greeks, well yes of course. But those Greeks were eventually invaded and colonised away. Greeks today are of a literally different stock.

  16. Phantom –

    Not long ago an Icelandic court upheld a law which the people had protested, making them culpable for foreign deposits in bust Icelandic banks.

    Depositors in Britain and Holland were mainly affected. Holland and Britain guaranteed those deposits anyway so it’s a case of the treasuries receiving back anything they paid out. Also, Landesbanki (which owned the bust Icesave) has said that there should be enough in their pot to cover it.

    So Icelanders aren’t on the hook for all deposits, they told bank bondholders to take a swim, the Krona was devalued by about 50 per cent (something which eurozone countries cannot do), exports are up, Iceland is cheap, bankers have been prosecuted, the ex-PM is scheduled to appear before a constitutional court on charges of malfeasance in public office, the stable were swept clean, losses weren’t socialised and the economy is in recovery.

  17. But this should not in any way be spun as a good outcome

    It’s a horrid outcome for the average Icelandic taxpayer. It is entirely immoral

    The taxpayer did not own these banks. They did not I suppose get paid for insuring them. So why should they pay the depositors a penny?

    Just because other solutions would have been worse does not mean that this solution is fair

    The US has the FDIC scheme of depositor insurance but that is effectively funded by depositors and banks – not so here?

  18. This is certainly better than what the Irish govt did

    But it sets a precedent of reimbursing unwise foreigners for investment losses. I am not sure how this helps Iceland or it’s economy

  19. “The Latinos and not particularly advanced bunch. It was the Romans who learned from Greek colonies and crushed the rest of the peninsular. Even so, as late as the Third Century BC Gallic tribes were running amok up and down the land. They even sacked Rome in the 4th Century BC. ”

    If so, those are all arguments on my side of the fence. Whether the tribes were Gallic (a very imprecise term in Roman times) or Celtic (a very imprecise term in modern times) is irrelevant. We know that there were developed cities, forums (fora?), advanced medicine and laws, literature and philosophy in Latinum and not on the North Sea coast.
    If the Latinos for their part only got their stuff from Greece, that again supports my view that civilisation and technical advancement and the other things that Allan holds dear are the result of a large complex of factors, including geography, climate and accidents of history.
    Allan would have it that being Nigerian is in itself enough to damn you to eternal uselessness; the same that a 1st C AD Allan would have been saying about the northern Europeans, probably most clearly the Caledonians around Aberdeen.

  20. The average man woman and child there is on the hook for $41,000 due to this

    It is a moral and financial catastrophe

  21. Phantom –

    Here you go, it doesn’t look that bad.

    “Close to 40 percent of depositor claims can be covered by the cash now at hand and whatever is outstanding will be remunerated once the rest of Landsbanki’s assets have been liquidated,” Arnason said. The bank’s resolution committee said Sept. 1 that its assets were valued at 1.3 trillion kronur, or about $11.4 billion.

    I see that bondholders include “Royal Bank of Scotland Plc, BNP Paribas SA and Deutsche Bank AG” and that they’re still chasing their losses. Let their names never associated with capitalism, they are the greatest socialists around.

  22. Allan,
    “Agit – arguing with you is like trying to shape a cloud on an anvil.”

    Out of all the compliments and acknowledgements you have paid me, this is surely the finest.

    My personal thinking is that climate is very influential in affecting human behaviour, attitudes and creativity. I certainly accept that there are marked differences between peoples, cultures and religions.
    Which is WHY Allan, I believe people should stay in their own yards. If they want to move location then they have to accept that they will also have to change behaviour and loyalties.
    I don’t care what colour or religion people are; if they want to live in my country, they accept the ultimate authority of my culture and its laws.
    BTW what’s this got to do with Iceland??

  23. Indeed Noel – we’ve just got to get rid of Tourette’s-addled whites and replace them/us with the infinitely more advanced black man. I’m sure that China is conducting a similar policy wrt their people.

    Just over two thousand years ago, blacks were slaves of Romans. The blacks in Africa hadn’t even invented the wheel. Thwo thousand years later, Europeans encounter sub-Saharan Africa again, and find that blacks had made no progress since Roman times.

    And yes – I agree with the white woman. However one of the comments which was linked to that video said that she’ll lose anyway as the country is becoming more multi-racial. Excellent – just what we need.

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