Iceland should serve as a model for how America — and how the world — deals with the economy — especially banksters. This year, America’s elected officials kissed chief executive and chairman of JPMorgan Chase Jamie Dimon’s ass – that wouldn’t occur in Iceland. The bailouts would not occur today in Iceland. Strict, crippling austerity measures were not needed to fix Iceland’s predicament after their economy essentially went bust. It began with one man.
In 2009, Icelanders pelted parliament with rocks, demanding their leaders and bankers answer for the country’s economic and financial collapse. Their tactics worked, ours did not. It’s time to rethink our elected officials’ motives.
The island’s steps to resurrect itself since 2008, when its banks defaulted on $85 billion, are proving effective. Iceland’s economy will this year outgrow the euro area and the developed world on average, the Organization for Economic Cooperation and Development estimates. It costs about the same to insure against an Icelandic default as it does to guard against a credit event in Belgium. Most polls now show Icelanders don’t want to join the European Union, where the debt crisis is in its third year.
Meet the man behind the revolution, which resulted in rectifying his country’s catastrophic economy – the Icelandic government was forced to resign and the IMF representatives were kicked out off their country,
Hordur Torfarson deems himself as not representative of any political party or religion. Mr. Torfarson is now teaching meta-modern democracy throughout Europe and states to Greek politicians, “You are working for the people.”
Politicians everywhere, notably here in America — before we succumb to Europe’s economic abyss — need to come back to the realization that they are working for us.
Watch how it’s done:
Once it became clear back in October 2008 that the island’s banks were beyond saving, the government stepped in, ring-fenced the domestic accounts, and left international creditors in the lurch. The central bank imposed capital controls to halt the ensuing sell-off of the krona and new state-controlled banks were created from the remnants of the lenders that failed.
Activists say the banks should go even further in their debt relief. Andrea J. Olafsdottir, chairman of the Icelandic Homes Coalition, said she doubts the numbers provided by the banks are reliable.
“There are indications that some of the financial institutions in question haven’t lost a penny with the measures that they’ve undertaken,” she said.
Note that the poor were not made the scapegoats for the flailing economy. Strict austerity measures were not reigned in. Those responsible were held accountable. The corrupt were kicked out.
It took just one man to initiate justice in the name of preserving a country’s future.
Slightly off topic: Do you think he’s married? Just curious….
Image: Vanity Fair