Iceland: A great example for the rest of the world

[Notorious Honey Badger]

http://bellacaledonia.org.uk/2011/08...ws-but-is-not/

To write the new constitution, the people of Iceland elected twenty-five citizens from among 522 adults not belonging to any political party but recommended by at least thirty citizens. This document was not the work of a handful of politicians, but was written on the internet. The constituent’s meetings are streamed on-line, and citizens can send their comments and suggestions, witnessing the document as it takes shape. The constitution that eventually emerges from this participatory democratic process will be submitted to parliament for approval after the next elections.
Some readers will remember that Iceland’s ninth century agrarian collapse was featured in Jared Diamond’s book by the same name. Today, that country is recovering from its financial collapse in ways just the opposite of those generally considered unavoidable, as confirmed yesterday by the new head of the IMF, Christine Lagarde to Fareed Zakaria. The people of Greece have been told that the privatization of their public sector is the only solution. And those of Italy, Spain and Portugal are facing the same threat.
They should look to Iceland. Refusing to bow to foreign interests, that small country stated loud and clear that the people are sovereign.
That’s why it is not in the news anymore.

[GreatWhiteEbola]

Thor you are lucky to be among such forward thinking individuals.

[WilsonFourTwo]

I was expecting pictures of Icelandic hotties.

I am both impressed and disappointed by this thread.

[afc wimbledon]

I wish Iceland well but I can't see how welching on your debts is a great example or even practical for the rest of the world, the only reason it was practical for Iceland was its small centrally located population of 300,000 meant it could survive on a few small goodwill loans from Sweden and Norway.

Greece, with 10 million people, doesn't have the option to retreat into a few decades of somewhat poverty stricken self sufficiancy living on cod and potatoes.

[Azure]

How are they a great example to the rest of the world when their government, after being elected by the 'forward thinking people' of Iceland proceeded to deregulate their financial industry to the point where it started the financial crisis?

In fact, if you go by size of the country, the crash was the biggest suffered by any country ever in history.

Like it or not, the people are responsible for that as well, considering they elected the government.

[GreatWhiteEbola]

Originally Posted by Azure

How are they a great example to the rest of the world when their government, after being elected by the 'forward thinking people' of Iceland proceeded to deregulate their financial industry to the point where it started the financial crisis?

In fact, if you go by size of the country, the crash was the biggest suffered by any country ever in history.

Like it or not, the people are responsible for that as well, considering they elected the government.

Hindsight.

They are making changes from their mistakes, they are on a path that still may not work, but they are trying. What the people of Iceland have done is beyond what other countries have done or are willing to do. Direct democracy, forward thinking.

[THE SCUD]

They are dirty welshing *#&^#@'ers and I hope their economy collapses again. People who welsh on debts deserve to live poor, crappy lives IMO.

[Bobblehead]

Sounds impressive, but it is probably a little easier to do in a country with a population 1/3 that of Calgary.

[afc wimbledon]

Originally Posted by THE SCUD

They are dirty welshing *#&^#@'ers and I hope their economy collapses again. People who welsh on debts deserve to live poor, crappy lives IMO.

They had crappy lives before they became international bankers, they have gone back to their crappy lives, with the exception that vast numbers of them are in default on their mortgages, but much like Detroit, no one wants the houses so it is unlikely any one is going to be evicted.

The reality is borrowing money to open a business or the like in Iceland is imposible, so they are stuck with their lifestyle for decades longer than the rest of us and the brightest and the best will move to europe.

[Cecil Terwilliger]

Originally Posted by THE SCUD

They are dirty welshing *#&^#@'ers and I hope their economy collapses again. People who welsh on debts deserve to live poor, crappy lives IMO.

You are definitely the 1%.

[Traditional_Ale]

Originally Posted by THE SCUD

They are dirty welching *#&^#@'ers and I hope their economy collapses again. People who welch on debts deserve to live poor, crappy lives IMO.

fyp.

[Cecil Terwilliger]

Originally Posted by Traditional_Ale

fyp.

No I think Scud just hates Welsh people.

"Doesn't he run like a Welshman?" - Stewie Griffin.

[Locke]

Originally Posted by THE SCUD

They are dirty welshing *#&^#@'ers and I hope their economy collapses again. People who welsh on debts deserve to live poor, crappy lives IMO.

What have you got against the Welsh? Did your last username happen to be; 'THE SHEEP.'

I have respect for Iceland, their people refused to be held personally responsible for the poor decisions of private banks.

That decision has consequences which they are evidently willing to suffer.

[Cowperson]

Originally Posted by Locke

I have respect for Iceland, their people refused to be held personally responsible for the poor decisions of private banks.

That decision has consequences which they are evidently willing to suffer.

So . . . . . they're paying anyway, one way or the other, whether they like it or not.

That's something that should be remembered.

If memory serves, Argentina also said "no" and is still paying the butchers bill for it while Uraguay negotiated an equitable solution - I think it was something like 80 cents on the dollar - and is back on the road and doing fine.

I think the jury is still out on whether or not Icelanders have been heroes or not.

Cowperson

[Azure]

Originally Posted by GreatWhiteEbola

Hindsight.

They are making changes from their mistakes, they are on a path that still may not work, but they are trying. What the people of Iceland have done is beyond what other countries have done or are willing to do. Direct democracy, forward thinking.

Sounds like a crappy justification for a country that won't make right what they screwed up.

I don't care if its hindsight. Once upon a time I created a lot of credit card debt. Wasn't a good decision, hell it was a stupid decision. Difference between me and the people of Iceland is that I had to pay it out, and couldn't just 'default' on it and say 'screw you' to the credit card company.

[valo403]

I don't really care about the whole constitution thing, they won me over with their hot dogs

[Itse]

Originally Posted by Locke

That decision has consequences which they are evidently willing to suffer.

Those consequences would be: moderately good economic recovery, declining unemployment, and as IMF says, and I quote:

“Iceland has done fine in terms of regaining not total, but reasonable confidence in its sovereign debt. The idea that there would be a huge reputational penalty for allowing private sector parties to go bust and default on their external obligations has not turned out to be true.”

http://www.imf.org/external/pubs/ft/...CAR110311A.htm

And to end that article:

Iceland set an example by managing to preserve, and even strengthen, its welfare state during the crisis.

Basicly, right now Icelanders can basicly say "suck it, rest of the world, we know what we're doing."

Or to quote a Nobel Prize winner in economics, professor Joseph Stiglitz

“What Iceland did was right. It would have been wrong to burden future generations with the mistakes of the financial system”

Also, for those who question why bother with income inequality issues (ref. occupy-movement); from the same article:

Recent IMF research has shown that countries tend to grow faster and more consistently when income distribution is more equitable, so the Fund is now paying much more attention to these issues in its programs

[zuluking]

Originally Posted by Itse

Those consequences would be: moderately good economic recovery, declining unemployment, and as IMF says, and I quote:

http://www.imf.org/external/pubs/ft/...CAR110311A.htm

And to end that article:
Basicly, right now Icelanders can basicly say "suck it, rest of the world, we know what we're doing."

Or to quote a Nobel Prize winner in economics, professor Joseph Stiglitz


Also, for those who question why bother with income inequality issues (ref. occupy-movement); from the same article:

Also from the article about the economic recovery of a country with 300,000 people...

Key to Iceland’s recovery has been an IMF-supported program worth $2.1 billion that ended in August this year.

...and another $2.5bn of loans and currency swaps from Norway, Sweden, Finland and Denmark.

Sweeeeet!! Suck it rest of the world, indeed!

[peter12]

Tiny country, entirely culturally and ethnically homogenous. Ridiculously small and specialized economy. How is this a model for anything but itself?

[Iowa_Flames_Fan]

Originally Posted by THE SCUD

They are dirty welshing *#&^#@'ers and I hope their economy collapses again. People who welsh on debts deserve to live poor, crappy lives IMO.

So on your planet taxpayers should foot the bill for debts racked up by a hyper-leveraged private bank?

If you like the profits that come with deregulation, you have to accept the risks too. Banks shouldn't be leveraged at 10 to 1--if you're continuing to lend money to a non-insured private bank with no assets, you're asking to lose money. No way should the Icelandic taxpayer be giving you an insurance policy that you didn't pay for.