It went where ever I…
People of Iceland Versus Global Economic Policymakers
Sheldon Filger, Huffington Post
Writer, founder of GlobalEconomicCrisis.com
Posted: January 5, 2010 04:18 PM
An extraordinary development is occurring in the tiny island nation of Iceland. The first sovereign casualty of the financial tsunami that occurred during the onset of the global economic crisis in 2008, Iceland underwent a fiscal meltdown and currency collapse when its 3 largest banks became insolvent. A neo-liberal government allowed Iceland’s financial industry to go global amid an environment of deregulation. The result was that Icelandic banks held more deposits from foreigners than from the nation’s citizens. When the global economy went into a nosedive, the three banks were rendered utterly insolvent, with liabilities exceeding the GDP of Iceland by a multiple of ten.
What is now occurring in Iceland is a foretaste of what may become more common throughout the developed world. Taxpayers have been told by policymakers that they must bear the financial costs of failed decisions made by private business, no matter how steep the price, or accept even more horrendous economic consequences. For the first time, an aroused public in at least one country has rejected the dictates being imposed by the political establishment. No wonder that the Dutch and British governments reacted so swiftly with a condemnation of Iceland’s citizens for having the audacity to think they have the right to exercise their democratic rights in deciding for themselves what is in the best economic interests of their nation.
As the global economic crisis continues, leading to more private business failures and demands by policymakers that taxpayers fund ever-larger bailouts, look for other aroused citizenry following in the footsteps of Iceland’s.