Wednesday, April 25, 2012

Iceland; fixing their economy their own way

"Yet if Iceland got it all wrong in the lead-up to the October 2008 banking collapse, the country (which still has its own currency) has since done much that is interesting and positive, ignoring or going against the counsel of orthodox economists:
  • Iceland nationalised the domestic parts of its banks, and allowed the non-domestic parts to go bankrupt
  • Iceland looked after its own citizens first, and refused to be bullied by the UK and the Netherlands demanding preferential treatment for non-existent ‘loans’ at usurious rates of interest
  • Iceland’s President responded to popular dissatisfaction with proposed deals with the UK and the Netherlands, by allowing a democratic vote – which confirmed overwhelming opposition
  • Iceland imposed capital controls to stop hot money flows into or out of the country.
  • It gave special protection to home-owners threatened by banks foreclosing.

    Wow, they put their own people ahead of corporations?  I thought corporations WERE people?  See?  It pays to keep an eye on Iceland's economy.


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