February 24, 2012

“Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population, according to a report published this month by the Icelandic Financial Services Association. “You could safely say that Iceland holds the world record in household debt relief,” said Lars Christensen, chief emerging markets economist at Danske Bank A/S in Copenhagen. “Iceland followed the textbook example of what is required in a crisis. Any economist would agree with that.”

For people to accept the yoke, they must believe they have no choice.

The role of population size is an important factor; Iceland, approx 308,000, Ireland approx 4.500,000+. Icelanders were much more individually effected by their meltdown. They threw rocks outside their parliament in the early stages. Information on what was happening was much more freely available.

Ireland, on the other hand, successfully kept prying eyes away from those with their hands on the rudder; they successfully persuaded a majority of people, the decisions taken on their behalf were necessary and there was no choice in the matter.

They successfully persuaded those who created the mess that they had most to gain by handing the mess over to european ‘partners’ to fix; but that they would need to accept any medicine provided.

They also insured that those in the banking and financial sector who created the mess, those with most clout in Ireland’s FIRE economy, would be protected most in any loss situation. The Government also segmented the population protecting those on higher earnings ie those with most purchasing power over those on lower incomes.

The lesson must be that disenfranchising people in a democracy comes in many shapes and forms in EUSSR LAtin American style ‘pyramid’ democracies where power is distributed vertically upward out of the reach of ordinary people and fenced in by governing elites whose role is to hide the invisible hands on the puppet strings.

In Iceland, with smaller numbers, small is beautiful, Democracy and true capitalism simply work better Ireland, on the other hand, has become a puppet state of the EMU/Troika, whose main agenda is to protect failed banks locally/internationally, in violation of simple rules of capitalism, such as the avoidance of moral hazard.

  • Thus we have old ladies on waiting lists of over two years who’ve worked their whole lives serving the needs of their families, blind, unable to see, because the state won’t provide for their needs.

    Iceland dealt with its economic problems head on. Ireland, on the other hand, with Troika bailouts, distributed its risk into the future hoping to get Lucky, that Pozzo would be kind and merciful. Pozzo(ECB/Troika) meanwhile gained respect for Lucky gamblers in Ireland who had lost all before; but now had new bailout borrowings; these bozos could be relied upon to payback their PN’s. I wonder could you bet on that ?

    Inflation by definition tends to devalue a currency even in low inflation over A long period of time. Where value of currency increases, = its opposite, ie deflation. Its very significant for a currency tied to a fixed exchange rate, such as the euro. In fact, its a major argument why we need to leave the euro; we cannot devalue inside the euro.

    This is another reason we are unlike Iceland !

  • A major component in their recovery was not only their decision to allow banks to fail, but NB to devalue the Kroner

    We, on the other hand, like vassals before their Lords, conned into the false belief we have no choice in the matter, have decided to carry Pozzo’s(ECB) suitcase of sand(troika bailout of banks), save the European banks, save Irish banks, all paid for at your family’s expense now and over coming generations, tied to a fixed exchange rate that makes us economically competitive against our ‘partners’…

    Are you Lucky ?

    Isn’t Ireland a bit like Lucky where the euro is POZZO?

    “He is “tied” (a favourite theme in Godot) to Pozzo by a ridiculously long rope in the first act, and then a similarly ridiculous short rope in the second act. Both tie around his neck. When he is not serving Pozzo, he usually stands in one spot drooling or sleeping, if he stands there long enough. His props include a picnic basket, a coat, and a suitcase full of sand.”

    The picnic basket is our bailout…!


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