al8
6th January 2010, 10:37
This has by far been the main issue in Iceland since the financial crash a year ago.
Icelandic bankers established a subsidiary Internet bank called Icesave (http://en.wikipedia.org/wiki/Icesave_dispute) servicing depositors mainly in the UK and Netherlands. Since it didn't have as many employees or constant capital costs, being an Internet bank, it had more leeway to set loan shark interest rates higher than domestic banks in in the UK, Netherlands and elsewhere. Foreign invasion of the home market was not well seen by domestic banks. The private banking system in Iceland went under in the financial crisis, taking it's various branches and subsidiaries abroad down as well. In the wake of the folds the Republic of Iceland and it's banks where put on a terrorist list by the UK. Later a disagreement arose between the government of Iceland and UK and Netherlands as to how depositors insurance schemes should be set up and managed. Who are eligible, who gets preference and how much of lost deposits should be reimbursed by the Icelandic state and its tax payers.
Now that's the gist of it. UK and Netherlands wants the Icelandic tax base - which will mean the working class section of it - to reimburse as much as possible the UK's and Netherlands' near encompassing reimbursement to it's domestic Icesave depositors. To this end the UK and Dutch governments have used their controlling share in the IMF, and media influence to dictate the terms in their favor. The Leftist alliance in government has acquiesced to the IMF neo-liberal privatisation and working class thrift scheme - and to a pressured UK/Dutch slanted Icesave agreement that will further steep Iceland into the bottomless pit of neo-colonial loan-shark bondage and cheap resource exportation orientation of the economy.
In a new turn of events the President, Ólafur Ragnar Grímsson, has vetoed the law on a (mearly finalized) version of the Icesave agreement - the law will thus go to a popular vote. There is overwhelming popular opposition to this Icesave agreement as a whole. The fat servants in the ruling parties, corrupt labor unions and the employers coalition are all pissed they couldn't rush this through. As a result there is currently a strong political opposition to this presidential action as well as a media frenzy that preaches doom and gloom if this agreement doesn't get instituted smoothly. The voting masses are charactered as ignorant, stupid and not properly educated in the ways of capitalist economics nor informed about the particularities of the Icesave agreement process to make an informed vote. This tone has not appeared to my knowledge in the capitalist media when people are set to vote unrecallable parliamentary politicians once every 4 years.
The international community (read;foreign financial institutions) is outraged by this uncivilized delay. Credit rating institutions have put Iceland into a junk category - stalling loans. There have been further threats of isolating Iceland and other belligerent hand wriggling in foreign media outlets. Some nationalist commentators on the Internet are even calling for military action. It's really absurd and chilling to hear this sort of stuff from people. Especially when they come from people of a nation that has a rich history of plundering weaker nations.
These are some articles I recommend; Icelandic citizens, are we scapegoats? (http://www.icenews.is/index.php/2008/10/10/icelandic-citizens-are-we-scapegoats/),
Gordon Brown's Icelandic blame game (http://www.guardian.co.uk/commentisfree/2009/may/14/gordon-brown-iceland-finance),
Iceland is till reeling (http://www.guardian.co.uk/commentisfree/2010/jan/05/iceland-debt-financial-crisis), It’s War With Iceland. Will Brown Invade? (*)
(http://blogs.wsj.com/iainmartin/2010/01/05/its-war-with-iceland-will-brown-invade/).
I will also quickly translate a weeks old article from an Icelandic communist on this matter;
In the Shadow of Threats
Many important questions arise now when the final arrangements on the states responsibility in regards to the so-called Icesave agreement is being processed. How come this issue developed to this point, that despite every valid reason weighing against it, the leading pack of the government should persist so ruthlessly in pushing forward this ultimatum on the Icelandic nation?
All arguments point to that the agreement enjoys no legal basis and that interest rates and other terms be most unfair even if there'd be a validity to the basic demand. It is obvious that the Icelandic state cannot pay this demand compounded with all the other debts that have been dumped upon it.
The overwhelming majority of the nation is opposed to the passing of the bill. It has been implied quite clearly that this has no bearing because the populace is simply to shallow and irresponsible. It would be more accurate to call it shallow and irresponsible to bind the nation in such unbearable shackles that she is in no way obliged to take upon herself. But it is well known that the impetuous lust of the current government for EU membership pushes every other consideration aside.
Slander and Threats
Whereas all the standard arguments employed by the government have failed thus far it's leaders now resort to imply that they have been threatened on behalf of the nation and that something terrible will happen should the will of the Big Powers not be done.
What do leaders of nations do when their nation receives threats? It should be kept in mind that these kind of threats are an attack on the nation. Real leaders inform their people as to who is making the threats. And exactly what these threats entail. And unite the people to opposed such an attack. To change into a middleman and assist with the attainment of unjustified demands made through such threats is a betrayal of the nation - to put it very mildly.
This is how low the government steeps in order to brake the nation into submission to a foreign colonial power. However the truth of the matter is that the future of Iceland is not absolutely dependent on the whims of some European Colonial nations. All over the world are nations that are ready to have fair [business]dealings with us.
Mafia threats only work on people that cower from under them. The Icelandic nation can full well live upright and step out of the darkness and not be swayed nor guided by slander and scare-propaganda.
Thorvaldur Thorvaldsson, woodworker.
Icelandic bankers established a subsidiary Internet bank called Icesave (http://en.wikipedia.org/wiki/Icesave_dispute) servicing depositors mainly in the UK and Netherlands. Since it didn't have as many employees or constant capital costs, being an Internet bank, it had more leeway to set loan shark interest rates higher than domestic banks in in the UK, Netherlands and elsewhere. Foreign invasion of the home market was not well seen by domestic banks. The private banking system in Iceland went under in the financial crisis, taking it's various branches and subsidiaries abroad down as well. In the wake of the folds the Republic of Iceland and it's banks where put on a terrorist list by the UK. Later a disagreement arose between the government of Iceland and UK and Netherlands as to how depositors insurance schemes should be set up and managed. Who are eligible, who gets preference and how much of lost deposits should be reimbursed by the Icelandic state and its tax payers.
Now that's the gist of it. UK and Netherlands wants the Icelandic tax base - which will mean the working class section of it - to reimburse as much as possible the UK's and Netherlands' near encompassing reimbursement to it's domestic Icesave depositors. To this end the UK and Dutch governments have used their controlling share in the IMF, and media influence to dictate the terms in their favor. The Leftist alliance in government has acquiesced to the IMF neo-liberal privatisation and working class thrift scheme - and to a pressured UK/Dutch slanted Icesave agreement that will further steep Iceland into the bottomless pit of neo-colonial loan-shark bondage and cheap resource exportation orientation of the economy.
In a new turn of events the President, Ólafur Ragnar Grímsson, has vetoed the law on a (mearly finalized) version of the Icesave agreement - the law will thus go to a popular vote. There is overwhelming popular opposition to this Icesave agreement as a whole. The fat servants in the ruling parties, corrupt labor unions and the employers coalition are all pissed they couldn't rush this through. As a result there is currently a strong political opposition to this presidential action as well as a media frenzy that preaches doom and gloom if this agreement doesn't get instituted smoothly. The voting masses are charactered as ignorant, stupid and not properly educated in the ways of capitalist economics nor informed about the particularities of the Icesave agreement process to make an informed vote. This tone has not appeared to my knowledge in the capitalist media when people are set to vote unrecallable parliamentary politicians once every 4 years.
The international community (read;foreign financial institutions) is outraged by this uncivilized delay. Credit rating institutions have put Iceland into a junk category - stalling loans. There have been further threats of isolating Iceland and other belligerent hand wriggling in foreign media outlets. Some nationalist commentators on the Internet are even calling for military action. It's really absurd and chilling to hear this sort of stuff from people. Especially when they come from people of a nation that has a rich history of plundering weaker nations.
These are some articles I recommend; Icelandic citizens, are we scapegoats? (http://www.icenews.is/index.php/2008/10/10/icelandic-citizens-are-we-scapegoats/),
Gordon Brown's Icelandic blame game (http://www.guardian.co.uk/commentisfree/2009/may/14/gordon-brown-iceland-finance),
Iceland is till reeling (http://www.guardian.co.uk/commentisfree/2010/jan/05/iceland-debt-financial-crisis), It’s War With Iceland. Will Brown Invade? (*)
(http://blogs.wsj.com/iainmartin/2010/01/05/its-war-with-iceland-will-brown-invade/).
I will also quickly translate a weeks old article from an Icelandic communist on this matter;
In the Shadow of Threats
Many important questions arise now when the final arrangements on the states responsibility in regards to the so-called Icesave agreement is being processed. How come this issue developed to this point, that despite every valid reason weighing against it, the leading pack of the government should persist so ruthlessly in pushing forward this ultimatum on the Icelandic nation?
All arguments point to that the agreement enjoys no legal basis and that interest rates and other terms be most unfair even if there'd be a validity to the basic demand. It is obvious that the Icelandic state cannot pay this demand compounded with all the other debts that have been dumped upon it.
The overwhelming majority of the nation is opposed to the passing of the bill. It has been implied quite clearly that this has no bearing because the populace is simply to shallow and irresponsible. It would be more accurate to call it shallow and irresponsible to bind the nation in such unbearable shackles that she is in no way obliged to take upon herself. But it is well known that the impetuous lust of the current government for EU membership pushes every other consideration aside.
Slander and Threats
Whereas all the standard arguments employed by the government have failed thus far it's leaders now resort to imply that they have been threatened on behalf of the nation and that something terrible will happen should the will of the Big Powers not be done.
What do leaders of nations do when their nation receives threats? It should be kept in mind that these kind of threats are an attack on the nation. Real leaders inform their people as to who is making the threats. And exactly what these threats entail. And unite the people to opposed such an attack. To change into a middleman and assist with the attainment of unjustified demands made through such threats is a betrayal of the nation - to put it very mildly.
This is how low the government steeps in order to brake the nation into submission to a foreign colonial power. However the truth of the matter is that the future of Iceland is not absolutely dependent on the whims of some European Colonial nations. All over the world are nations that are ready to have fair [business]dealings with us.
Mafia threats only work on people that cower from under them. The Icelandic nation can full well live upright and step out of the darkness and not be swayed nor guided by slander and scare-propaganda.
Thorvaldur Thorvaldsson, woodworker.