Iceland
is the one nation that did most of what I deemed necessary back in
2008. Foremost, it bailed out and refinanced the middle class. If
you fail to do that it is inevitable that the economy must shrink.
Otherwise,
bank finance is a book keeping entry of no consequence. Any money
they put out has already been spent and is in circulation. No banker
is irreplaceable either so tossing them in prison is an ideal option.
There is no end of juniors eager to leap in and replace them and 'do
it right'.
In
the USA, no effort has been expended to bail the middle class and as
a consequence millions remain unemployed. Now we are printing money
to cover the natural revenue shortfall and at the same time
increasing taxation to further hamper the middle class. This likely
means another decade of anemic growth that actually reflects
structural contraction.
The
only positive note is that the US banking industry is now able to
again expand lending to the housing market and we are presently
seeing a value driven rebound in building beginning. Hopefully this
is not choked off.
How
the US Bankers are evading prison is astonishing.
Iceland’s Hörður
Torfason – How to Beat the Banksters
Source: http://www.wakingtimes.com
By Alex Pietrowski
The tiny Nordic European island country of iceland is presently
experiencing one of the greatest economic comebacks of all time.
After the privatization of the banking sector completed in
200o, the economy was thrown into a tailspin when over a five year
period, private bankers borrowed 120 billion dollars (10 times
the size of Iceland’s economy). A huge economic bubble was created,
causing house prices to double, and making a small percentage of
Iceland’s population rich enough to buy up overseas investments,
mansions, yachts, and private jets, while leaving an absolutely
un-payable debt for all Icelanders. Iceland was facing
national bankruptcy.
In response to the
failed banking system, in October 2008, Iceland’s revolution
against this financial tyranny began, rather casually in the street,
in front of the Icelandic general assembly.
In
the duration of five months, the main bank of Iceland was
nationalized, government officials were forced to resign, the old
government was liquidated, and a new government was put in its place.
By March 2010, Iceland’s people voted to deny payment of the 3,500
million Euro debt created by the bankers, and about 200
high-level executives and bankers responsible for the economic crisis
in the country were either arrested or were facing criminal charges.
In February 2011, a new constitutional assembly settled in to
rewrite the tiny nation’s constitution, which aimed to
avoid entrapment by debt-based currency foreign loans.
In 2012, Iceland’s economy is expected to outgrow the Euro and the
average for the developed world, as estimated by the
Paris-based Organization for Economic Cooperation and
Development.
So
how does a revolution like this take root and activate a
citizenry to effectively respond to grand scale economic theft by
bankers and politicians?
Hörður Torfason, a lifelong activist from Iceland, is credited
with organizing the Icelandic ‘Kitchenware Revolution’,
beginning with a simple vigil in front of parliament aimed at
educating passersby and ridiculing the blatant crimes of the elite
who worked there. When the foreign financial community (the
IMF and the European Union) pressured Iceland’s Parliament to pass
laws dictating repayment of debts privately
incurred by bankers, the revolution was formally ignited and nearly
turned violent when some Icelanders began throwing rocks at the
capital, attempting to pressure the government for redress.
Torfason and his
supporters knew that a non-violent approach would be more effective,
and formed a “human wall” of clearly marked orange-vested
citizens between angry rock-throwers and the police line. Torfason
believed that in order for a movement to be effective, one must use
reason and information, as well as peaceful demonstrations, to send a
strong message to politicians that the people refuse to pay the
bankers’ debts.
The
end result of the peaceful resistance to economic tyranny is a model
for all Western nations who are currently being gutted by a totally
corrupt banking system.
This story is much
different than what has happened in the US since the banking crisis
began in 2008. Large “bailouts” were granted to the bankers, and
none of the responsible parties have faced criminal prosecution. And
it appears that we are still at the mercy of the currency cartel and
the dollar faces total destruction.
In
Iceland, the prime minister was indicted, over 200 criminal charges
were filed against the bankers, and all of the former CEOs of the 3
biggest banks were arrested. The new government supported citizens by
passing a banking remittance that forgave debt exceeding 110% of home
values. As a result, “banks have forgiven loans equivalent
to 13 percent of gross domestic product, easing the debt burdens of
more than a quarter of the population.” (source: Bloomberg.com)
Yes,
the country continued to struggle economically after the 2008
revolution. But already today Iceland is thriving, with 2.9% growth
in the economy in 2011, and 2.4% estimated by the OECD for 2012
and 2013.
“The lesson to be
learned from Iceland’s crisis is that if other countries think it’s
necessary to write down debts, they should look at how successful the
110 percent agreement was here. It’s the broadest agreement that’s
been undertaken.” – Thorolfur Matthiasson, an economics professor
at the University of Iceland in Reykjavik (source: Bloomberg.com)
“This is about our
life and the future of the children, of the generations, of the young
people.” – Hörður Torfason (source:http://vimeo.com/25824717)
Can America hold out
for a banking miracle like Iceland’s and somehow muster the
fortitude to demand an end to economic corruption? Perhaps Hörður
Torfason is available to help get American mobilized.
Resources:
Meltdown Iceland:
Lessons on the World Financial Crisis from a Small Bankrupt Island by
Roger Boyes
Inside Job movie by Matt Damon
Sources:
This article is
offered under Creative Commons license. It’s okay to republish it
anywhere as long as attribution bio is included and all links remain
intact.
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