Icelandis the one nation that did most of what I deemed necessary back in2008. Foremost, it bailed out and refinanced the middle class. Ifyou fail to do that it is inevitable that the economy must shrink.
Otherwise,bank finance is a book keeping entry of no consequence. Any moneythey put out has already been spent and is in circulation. No bankeris 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 'doit right'.
Inthe USA, no effort has been expended to bail the middle class and asa consequence millions remain unemployed. Now we are printing moneyto cover the natural revenue shortfall and at the same timeincreasing taxation to further hamper the middle class. This likelymeans another decade of anemic growth that actually reflectsstructural contraction.
Theonly positive note is that the US banking industry is now able toagain expand lending to the housing market and we are presentlyseeing a value driven rebound in building beginning. Hopefully thisis not choked off.
Howthe US Bankers are evading prison is astonishing.
Iceland’s HörðurTorfason – How to Beat the Banksters
Source: http://www.wakingtimes.com
By Alex Pietrowski
The tiny Nordic European island country of iceland is presentlyexperiencing one of the greatest economic comebacks of all time. After the privatization of the banking sector completed in200o, the economy was thrown into a tailspin when over a five yearperiod, private bankers borrowed 120 billion dollars (10 timesthe size of Iceland’s economy). A huge economic bubble was created,causing house prices to double, and making a small percentage ofIceland’s population rich enough to buy up overseas investments,mansions, yachts, and private jets, while leaving an absolutelyun-payable debt for all Icelanders. Iceland was facingnational bankruptcy.
In response to thefailed banking system, in October 2008, Iceland’s revolutionagainst this financial tyranny began, rather casually in the street,in front of the Icelandic general assembly.
Inthe duration of five months, the main bank of Iceland wasnationalized, government officials were forced to resign, the oldgovernment was liquidated, and a new government was put in its place.By March 2010, Iceland’s people voted to deny payment of the 3,500million Euro debt created by the bankers, and about 200high-level executives and bankers responsible for the economic crisisin the country were either arrested or were facing criminal charges.
In February 2011, a new constitutional assembly settled in torewrite the tiny nation’s constitution, which aimed toavoid entrapment by debt-based currency foreign loans.In 2012, Iceland’s economy is expected to outgrow the Euro and theaverage for the developed world, as estimated by theParis-based Organization for Economic Cooperation andDevelopment.
Sohow does a revolution like this take root and activate acitizenry to effectively respond to grand scale economic theft bybankers and politicians?
Hörður Torfason, a lifelong activist from Iceland, is creditedwith organizing the Icelandic ‘Kitchenware Revolution’,beginning with a simple vigil in front of parliament aimed ateducating passersby and ridiculing the blatant crimes of the elitewho worked there. When the foreign financial community (theIMF and the European Union) pressured Iceland’s Parliament to passlaws dictating repayment of debts privatelyincurred by bankers, the revolution was formally ignited and nearlyturned violent when some Icelanders began throwing rocks at thecapital, attempting to pressure the government for redress.
Torfason and hissupporters knew that a non-violent approach would be more effective,and formed a “human wall” of clearly marked orange-vestedcitizens between angry rock-throwers and the police line. Torfasonbelieved that in order for a movement to be effective, one must usereason and information, as well as peaceful demonstrations, to send astrong message to politicians that the people refuse to pay thebankers’ debts.
Theend result of the peaceful resistance to economic tyranny is a modelfor all Western nations who are currently being gutted by a totallycorrupt banking system.
This story is muchdifferent than what has happened in the US since the banking crisisbegan in 2008. Large “bailouts” were granted to the bankers, andnone of the responsible parties have faced criminal prosecution. Andit appears that we are still at the mercy of the currency cartel andthe dollar faces total destruction.
InIceland, the prime minister was indicted, over 200 criminal chargeswere filed against the bankers, and all of the former CEOs of the 3biggest banks were arrested. The new government supported citizens bypassing a banking remittance that forgave debt exceeding 110% of homevalues. As a result, “banks have forgiven loans equivalentto 13 percent of gross domestic product, easing the debt burdens ofmore than a quarter of the population.” (source: Bloomberg.com)
Yes,the country continued to struggle economically after the 2008revolution. But already today Iceland is thriving, with 2.9% growthin the economy in 2011, and 2.4% estimated by the OECD for 2012and 2013.
“The lesson to belearned from Iceland’s crisis is that if other countries think it’snecessary to write down debts, they should look at how successful the110 percent agreement was here. It’s the broadest agreement that’sbeen undertaken.” – Thorolfur Matthiasson, an economics professorat the University of Iceland in Reykjavik (source: Bloomberg.com)
“This is about ourlife and the future of the children, of the generations, of the youngpeople.” – Hörður Torfason (source:http://vimeo.com/25824717)
Can America hold outfor a banking miracle like Iceland’s and somehow muster thefortitude to demand an end to economic corruption? Perhaps HörðurTorfason is available to help get American mobilized.
Resources:
Meltdown Iceland:Lessons on the World Financial Crisis from a Small Bankrupt Island byRoger Boyes
Inside Job movieby Matt Damon
Sources:
http://www.alternet.org/world/how-gay-rights-maverick-helped-topple-icelands-government
http://vimeo.com/25824717
http://crazyemailsandbackstories.wordpress.com/2012/05/12/icelands-amazing-peaceful-revolution-still-not-in-the-news-backstory/
http://www.dailykos.com/story/2011/08/01/1001662/-Iceland-s-On-going-Revolution
http://www.alternet.org/newsandviews/article/964401/cenk_uygur%3A_iceland_shows_bailing_out_middle_class_works%2C_not_bailing_out_banks/
http://www.bloomberg.com/news/2012-02-20/icelandic-anger-brings-record-debt-relief-in-best-crisis-recovery-story.html
This article isoffered under Creative Commons license. It’s okay to republish itanywhere as long as attribution bio is included and all links remainintact.
Hiç yorum yok:
Yorum Gönder