What Happened in Iceland in 2008 with the IMF?

I had become curious of what the story is with Iceland and there dealings with the IMF.

This inquiry discusses what had transpired with their economic collapse and their banks. Still tied to the IMF, it says they had handled their debts differently than what most most countries would do. 

 Here is an excerpt from a website dealing in the matters of which I pondered, http://nome.unak.is/nm-marzo-2012/vol-9-no-4-2014/75-conference-pap...

" II. Success stories

The success stories told of how Iceland bounced back from its near-death economic experience are many. Here is an example of something I have in mind:  

In contrast, Iceland avoided a public health disaster even though it experienced, in 2008, the largest banking crisis in history, relative to the size of its economy. After three main commercial banks failed, total debt soared, unemployment increased ninefold, and the value of its currency, the krona, collapsed. Iceland became the first European country to seek an I.M.F. bailout since 1976. But instead of bailing out the banks and slashing budgets, as the I.M.F. demanded, Iceland’s politicians took a radical step: they put austerity to a vote. In two referendums, in 2010 and 2011, Icelanders voted overwhelmingly to pay off foreign creditors gradually, rather than all at once through austerity. Iceland’s economy has largely recovered, while Greece’s teeters on collapse.[3]

 

There are various versions, but what they have in common is that they attribute success to the fact that Iceland did not bail out the banks."

Of course, here in America a situation such as this is highly unlikely, it is still interesting to see how other countries  have handled a similar economic crisis that many countries are still faced with.

Here is this piece of the story from the same source,

"Another peculiarity of the Icelandic case is the introduction of capital controls in an IMF programme, which helped stabilize the currency. Some would point to how the depreciation of the currency helped hasten the recovery for an export-driven economy. But keeping in line with the peculiarities of the Icelandic experience, I want focus on other factors that I consider pivotal in its recovery. Bergmann notes that in terms of the recovery, a key component of it was that it was welfare-orientated.[11] One of the main aims of the government was to do as much as it could to protect Iceland’s Nordic welfare system and the consolidation measures implemented after the crash were based on social principles.[12] Cuts in the budget were curtailed to shelter the most important elements of the welfare structure. To meet the rising costs of such a social protection scheme after the crisis hit, in addition to falling revenue, considerable tax reform was introduced. An increase in income tax on the highest wages was introduced instead of a flat rate. Capital and corporate income tax rates were raised, new special wealth taxes and a bank levy introduced, environmental and carbon emission taxes launched. "

Notice the carbon tax was introduced into the economy. Also sheltered was their welfare system. That being said, I believe the socialist state goals of the NWO agenda have been achieved.

Here is a description of the Icelandic welfare system according to another source, 

http://www.invest.is/why-iceland/living-in-iceland/

"The Icelandic welfare system

Iceland is a modern welfare state like its Scandinavian neighbours and cousins. Everyone reaps the benefits of free health care, free education (from preschool to the university level), guaranteed pension and high standards of living. Children can also expect all necessary levels of care and protection. Icelanders pay income taxes from 37,34% to 46,24% depending on their salary level. Taxes are high in Iceland but so are earnings. The benefits include a comprehensive welfare system and a standard of living among the best in the world today."

Along with that, here is a glimpse of their educational system which should be included to the 'welfare' system and from the same source.

"Education system

The Icelandic educational system is ranked 5th highest in the world according to IMD (IMD 2012). The education system in Iceland is divided in four levels: playschool, compulsory, upper secondary and higher. It is similar to that of other Nordic countries where education is mandatory for children aged 6-16. Education in Iceland has traditionally been organised within the public sector, and there are very few private institutions in the school system. Almost all private schools receive public funding."

So this is a brief look into what I had found about Iceland and their economic collapse as opposed to what we might know of with other countries experience with the IMF and NWO agendas being foisted upon IMF participants if we have being paying attention to such matters.  The carbon tax was introduced into their economy, free health care is offered as opposed to a costly compulsory Obamacare here in the US and a welfare system that ensures a quality of life while other countries are seeing the vast chasm between wealthy and financially strapped population become more obvious. This is what I had comprehended in my search for what happened to Iceland and the ubiquitous IMF.

Views: 1437

Comment by Patriot Pete on January 31, 2015 at 6:43pm

 "Icelanders voted overwhelmingly to pay off foreign creditors gradually, rather than all at once through austerity. Iceland’s economy has largely recovered, while Greece’s teeters on collapse."

How many nations get a chance to vote like this ? Way to go Iceland. An example of "Athenian Democracy" at work. Ironically a Greek invention!

The New Govt of Greece has followed suit, negotiating with the banks to pay debt over longer duration. Just goes to show

  

Comment by Patriot Pete on January 31, 2015 at 6:49pm

Athenian *Direct* Democracy that should have been, getting the right answers from the people rather than the politicians, the IMF or any other NWO conglomerate 

Comment by Burbia on September 19, 2015 at 1:02pm
criticized decision by the Reykjavik City Council this week to boycott Israeli products will be retracted, Reykjavik Mayor Dagur B. Eggertsson said Saturday, according to local website Iceland Monitor.

The proposal will be amended to indicate that the Council will be boycotting only those goods produced “in occupied areas,” the website reported, citing the mayor.

On Tuesday, the Reykjavik City Council voted in favor of a general boycott of Israeli goods “as long as the occupation of Palestinian territories continues,” Iceland Magazine reported.

Council members said the boycott was a symbolic act demonstrating the Icelandic capital’s support for Palestinian statehood and condemnation of Israel’s “policy of apartheid.”

Israel’s Foreign Ministry condemned the move, and, in an apparent reference to Iceland’s status as a hotbed of volcanic activity, said “a volcano of hatred spews forth from the Reykjavik city council building.

“For no reason or justification, except hatred for its own sake, calls of boycotting the state of Israel are heard,” the Foreign Ministry said in a statement. “We hope someone in Iceland will come to their senses and end the one-sided blindness fielded against Israel, the only democracy in the Middle East.”

On Thursday Iceland’s Foreign Ministry distanced itself from the decision, saying the move was “not in line” with the country’s foreign policy.

Speaking to The Times of Israel, a spokesperson of the island nation’s government said that: “The Ministry for Foreign Affairs wishes to underline that the City Council’s decision is not in line with Iceland’s foreign policy nor does it reflect on Iceland’s relations with the State of Israel.”

Earlier Saturday, before the retraction was announced, Yesh Atid leader Yair Lapid announced that he published an op-ed in two Icelandic publications entitled “The Hypocrisy of [a] Boycott.”

http://www.timesofisrael.com/iceland-capital-retracts-decision-to-b...

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Photos

Loading…
  • Add Photos
  • View All

Please remember this website is supported by your donations...

© 2017   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2015 - all rights reserved. unless otherwise noted