We should all move to Iceland...

[jackovesk]

Iceland's Viking Victory over the Banksters

February 17th, 2012


EMU shroud-wavers need a better argument (Photo: PA)

Congratulations to Iceland.

Fitch has upgraded the country to investment grade BBB – with stable outlook, expecting government debt to peak at 100pc of GDP.

The OECD's latest forecast said growth will be 2.4pc this year, after 2.9pc in 2011.

Unemployment will fall from 7pc last year to 6.1pc this year and then 5.3pc in 2013.

The current account deficit was 11.2pc in 2010. It will shrink to 3.4pc this year, and will be almost disappear next year.

The strategy of devaluation behind capital controls has rescued the economy. (Yes, I know there is a dispute about exchange controls, but that is a detail.) The country has held its Nordic welfare together and preserved social cohesion. It is slowly prospering again, though private debt weighs heavy.

Nobody is forcing the elected government out of office or appointing technocrats as prime minister. The Althingi sits untrammeled in its island glory, the oldest parliament in the world (930 AD).

The outcome is a vindication of sovereign currencies and national central banks able to respond to shocks.

The contrast with the unemployment catastrophe and debt-deflation spirals across Europe's arc of depression is by now crystal clear. Those EMU shroud-wavers who persist in arguing that exit from the Europe would be suicidal will have to start coming up with a better argument.

Is it now so clear the Iceland will join the EU and the euro? Don't bet on it.

Here is the Fitch text:

Fitch Ratings has upgraded Iceland's Long-term foreign currency Issuer Default Rating (IDR) to 'BBB-' from 'BB+' and affirmed its Long-term local currency IDR at 'BBB+'. Its Short-term foreign currency IDR has also been upgraded to 'F3' from 'B' and its Country Ceiling to 'BBB-' from 'BB+'. The Outlooks on the Long-term ratings are Stable.

"The restoration of Iceland's Long-term foreign currency rating to investment grade reflects the progress that has been made in restoring macroeconomic stability, pushing ahead with structural reform and rebuilding sovereign creditworthiness since the 2008 banking and currency crisis," says Paul Rawkins, Senior Director in Fitch's Sovereign Rating Group.

"Iceland has successfully exited its IMF programme and gained renewed access to international capital markets. A promising economic recovery is underway, financial sector restructuring is well-advanced, while public debt/GDP appears to be close to peaking on the back of a robust fiscal consolidation programme," added Rawkins.

As the first country to suffer the full force of the global financial crisis, Iceland successfully completed a three-year IMF-supported rescue programme in August 2011. Despite some setbacks along the way, the programme laid the foundations for renewed access to international capital markets in mid-2011 and an encouraging rebound in economic growth to 3% for 2011 as a whole. Flexible labour and product markets and a floating exchange rate have facilitated the correction of external imbalances and contained the rise in unemployment, while the financial system has shrunk to one fifth of its former size.

Iceland has been among the front runners on fiscal consolidation in advanced economies: the primary deficit has contracted from 6.5% of GDP in 2009 to 0.5% in 2011 and Iceland appears to be on track to attain primary fiscal surpluses from 2012 and headline surpluses from 2014.

Fitch believes that gross general government debt may have peaked at around 100% of GDP in 2011 (excluding potential Icesave liabilities); net debt is significantly lower at around 65% of GDP, reflecting appreciable deposits at the Central Bank (CBI). Barring further shocks, Iceland should see a sustained reduction in its public debt/GDP ratio from 2012, assuming economic recovery continues and the government adheres to its medium term fiscal targets. Ample general government deposits at the CBI and record foreign exchange reserves
ameliorate near-term fiscal financing concerns. However, the risk of additional contingent liabilities migrating to the sovereign's balance sheet remains high.

Iceland's unorthodox crisis policy response has succeeded in preserving sovereign creditworthiness in the face of unprecedented financial sector distress. However, legacy issues remain, notably the protracted dispute over Icesave, an offshore branch of the failed Landsbanki that accepted foreign exchange deposits in the UK and the Netherlands, and the slow unwinding of capital controls imposed in 2008.

The impact of Icesave on Iceland's sovereign creditworthiness has diminished over time and Landsbanki has begun to remunerate deposit liabilities. Nonetheless, Fitch considers that Icesave still has the capacity to raise public debt by 6%-13% of GDP, should an EFTA Court ruling go against Iceland. Resolution of Icesave will be important for restoring normal relations with external creditors and removing this uncertainty for public finances.

Capital controls continue to block repatriation of USD3bn-USD4bn of non-resident investment in ISK-denominated public debt and deposit instruments. Fitch acknowledges that Iceland's exit from capital controls promises to be lengthy, given the underlying risks to macroeconomic stability, fiscal financing and the newly restructured commercial banks' deposit base.

So far, Iceland has been relatively unaffected by the eurozone sovereign debt crisis and, although growth is expected to slow to 2%-2.5% in 2012-13, Fitch does not expect Iceland to slip back into recession. However, the private sector remains heavily indebted – household debt exceeds 200% of disposable income and corporate debt 210% of GDP – highlighting the need for further domestic debt restructuring, while the key export sector has been held back by capacity constraints and a lack of investment exacerbated in part by the slow unwinding of capital controls.

Fitch says that future sovereign rating actions will take a broad range of factors into account including continued economic recovery and fiscal consolidation and progress towards public and external debt reduction. Iceland is still a relatively high income country with standards of governance, human development and ease of doing business more akin to a high grade sovereign than low investment grade. Accelerated private sector domestic debt restructuring, a progressive unwinding of capital controls, normalisation of relations with external creditors and enduring monetary and exchange rate stability would help to further advance Iceland's investment grade status.

http://blogs.telegraph.co.uk/finance...iking-victory/



PS - We should all move to Iceland..? Or at the 'Very Least' copy their Courage to 'Oust' the Criminal Banksters..!

[eileenrose]

If you watch Max Keiser on RT today (Sat. 2/18), he is (in a funny way) suggesting that Iceland offer citizenship to anyone who has $20,000. Good idea.

[christian]

I guess it's hard for the cabal to convincingly sell the story to the public, that Iceland has WMDs and ties to Al Qaida, so they cannot invade them like they would, if this was Lybia for example.

[Anchor]

Does Iceland have a Rothschild central bank?

On another thread about countries that dont have a central bank Iceland is not on the list.

[DreamsInDigital]

Iceland, as is evident in this OP, just recently got rid of their Rothschild Central Bank. So , no they don't.

[Anchor]

Then the other thread is wrong, Iceland should be added to the list

[Tane Mahuta]

Sorry Jack....

Too cold for this fella!!..

TM

[modwiz]

A careful reading of the article sees at least one weasel word sentence per paragraph. Laced throughout the article are constant couched references about Icesave and foreign creditors and other subtle allusions about bettors who want their betting money back after losing it at the game. England and the Netherlands being the biggest creditors, IIRC. The article is from a British newspaper and it shows. The desire to whine about its losses in an article that is begrudgingly praising the Icelanders lends this article a roller coaster ride of what it wants and needs to say. There is the hint that the Island will not be accepted back into the graces of the money lenders, euphemistically referred to as the 'external creditors', until it remits the losses of the gamblers. I know the Icelanders see this kind of double-speak for what it is, and are in so many unsaid words telling these billionaire beggars to:

Perhaps if they are real good and stop stealing and lying, (impossible, it's genetic) Santa may pay them a visit next Xmas.

[jackovesk]

Posted by Tane Mahuta (here)
Attachment 13933

Sorry Jack....

Too cold for this fella!!..

TM

Oh, I beg to differ Tane Mahuta,

Iceland is a (TRUE) warm Anti-Globilist nation...

New Zealand from my reckoning is one of the most (Cowardess) nations on earth...Period..!

I have been a member here for a long time and even I have brought more 'Truth' to this forum of how your Country has been abused by the the Globalists more than any one of of our NZ Forum members put together, and you have 'No' idea how much that dissapoints me..!

I even came across a story the the other day that I honestly thought would have been posted by a Kiwi and be of interest to some of Avalonian members, especially New Zealanders...?

The World NZ court stops sale of dairy farms to Chinese investor Shanghai Pengxin

http://www.theaustralian.com.au/news...-1226271898837

Not a word..! As per usual..!

Next thing you'll accuse me of is being a RACIST..!

Just remember Avalonians Russel Crowe, Keith Urban, Sam Neil would have you all believe they are born and bred Aussies..!

Not the case, by any way shape or form...

I admire the likes of Sir Richard Hadlee (Cricketer), Martin Crowe (Cricketer/ Russel Crowes Cousin) & Benji Marshall/Sonny Bill Williams who are proud of where they came from and their Nation..! (Notice I left out the band - Crowded House)

I am 4th generation Australian (of Convict Heritage) and proud of it..!

If I moved to New Zealand, I would still be Australian and proud of it..!

To me if you are born in New Zealand and live in Australia your still a Kiwi and should be proud of it..!

...and to all those Kiwis that live over here and are happy to call themselves Australian, answer me just 1 simple question..?

Why, do you still support the All Blacks in front of your supposed adopted Country..?

As far as I'm concerned we have had very little 'Truth' stories coming out of New Zealand, its as if they don't even care that their Country has been the South Pacific 'Test Tube' for the Globalists..?

Now that I've said all that, I welcome your rebuttals...

..and to those who wish to join in and say (there is 'No' Sovereignty) and everyone should just accept 'Global Governence' because there is 'No' such thing as taking pride in your Country of origin and its Culture...

Bring it On...)

In the infomous words of 'Jeff Fenech' Australian Triple World Champion - I LUVS YOUS (ALL)..

[jackovesk]

Posted by modwiz (here)
A careful reading of the article sees at least one weasel word sentence per paragraph. Laced throughout the article are constant couched references about Icesave and foreign creditors and other subtle allusions about bettors who want their betting money back after losing it at the game. England and the Netherlands being the biggest creditors, IIRC. The article is from a British newspaper and it shows. The desire to whine about its losses in an article that is begrudgingly praising the Icelanders lends this article a roller coaster ride of what it wants and needs to say. There is the hint that the Island will not be accepted back into the graces of the money lenders, euphemistically referred to as the 'external creditors', until it remits the losses of the gamblers. I know the Icelanders see this kind of double-speak for what it is, and are in so many unsaid words telling these billionaire beggars to:Attachment 13937

Perhaps if they are real good and stop stealing and lying, (impossible, it's genetic) Santa may pay them a visit next Xmas.Attachment 13936

I read the article for its core message:

Meaning, how much I admire those who stood against the 'Criminal Banksters' and won..!

The USA, could do a lot worse than to follow their example..

Don't you think its about about time, you got your head screwed on right..?

In fairness to your upside down approach, you do kind of look like a 'Head with Wings'...

[BlueGem]

Jackovesk,

I'm pretty sure Ireland is in the same state as NZ, in lieu of "deepening" ties to the Vatican.

http://www.irishtimes.com/newspaper/...reaking10.html

This article, to me, seems to be another attempt at getting the Irish public back to fearing and revering the Catholic Church. And sadly it will have some impact in 'these hard times'. I can't stress enough how much of a lifeline some people in Ireland require right now, but old habits die hard.

I remember when Iceland were basically mocked for going bankrupt. Look at them now eh? Every country should take a leave out of Iceland's book!

[seehas]

sure they cant blame island for al quaida connections but they dont need to do this, just remember what happend in poland some years ago...

they have to be careful how they book their planeflights

[modwiz]

Posted by jackovesk (here)

Posted by modwiz (here)
A careful reading of the article sees at least one weasel word sentence per paragraph. Laced throughout the article are constant couched references about Icesave and foreign creditors and other subtle allusions about bettors who want their betting money back after losing it at the game. England and the Netherlands being the biggest creditors, IIRC. The article is from a British newspaper and it shows. The desire to whine about its losses in an article that is begrudgingly praising the Icelanders lends this article a roller coaster ride of what it wants and needs to say. There is the hint that the Island will not be accepted back into the graces of the money lenders, euphemistically referred to as the 'external creditors', until it remits the losses of the gamblers. I know the Icelanders see this kind of double-speak for what it is, and are in so many unsaid words telling these billionaire beggars to:Attachment 13937

Perhaps if they are real good and stop stealing and lying, (impossible, it's genetic) Santa may pay them a visit next Xmas.Attachment 13936

I read the article for its core message:

Meaning, how much I admire those who stood against the 'Criminal Banksters' and won..!

The USA, could do a lot worse than to follow their example..

Don't you think its about about time, you got your head screwed on right..?

In fairness to your upside down approach, you do kind of look like a 'Head with Wings'...

The message of the article was acknowledgment of the Icelanders achievements mixed in with constant referrals to their need to pay off the banksters if they wish to join the 'legitimate' world financial community of treasonous scumbags.

I say, yay Vikings.

Watch out for those bullets, Neo.

[GCS1103]

Posted by Tane Mahuta (here)
Attachment 13933

Sorry Jack....

Too cold for this fella!!..

TM

I'm with you . I was in Iceland in October and it's pretty cold there.

[jjjones]

jackovesk, the second part of the p.s. is right on and brought to mind the following statement from Einstein on crisis and change, that i have long ago memorized. I have always thought that these words of Einstein shows the awareness and insight he had. EINSTEIN ON CRISIS AND CHANGE. LET'S NOT PRETEND THAT THINGS WILL CHANGE IF WE KEEP ON DOING THE SAME THINGS. A CRISIS CAN BE A REAL BLESSING TO ANY PERSON, AND TO ANY NATION. FOR ALL CRISES BRING PROGRESS. CREATIVITY IS BORN FROM ANGUISH, JUST LIKE DAY IS BORN FROM NIGHT. IT'S
IN CRISIS THAT INVENTION IS BORN, AS WELL AS DISCOVERIES, AND STRATEGIES. WHOEVER OVERCOMES A CRISIS, OVERCOMES HIMSELF, WITHOUT BEING OVERCOME. WHOEVER BLAMES HIS FAILURE ON A CRISIS NEGLECTS HIS OWN TALENT, AND IS MORE RESPECTFUL TO PROBLEMS THAN TO SOLUTIONS. INCOMPETENCE IS THE TRUE CRISIS. THE GREATEST PROBLEM WITH PEOPLE AND NATIONS IS THE LAZINESS WITH WHICH THEY ATTEMPT TO FIND THE SOLUTIONS TO THEIR PROBLEMS. THERE IS NO CHALLENGE WITHOUT A CRISIS. WITHOUT CHALLENGES, LIFE BECOMES A ROUTINE, A SLOW AGONY. THERE IS NO MERIT WITHOUT A CRISIS. IT IS IN THE CRISIS WHERE WE CAN SHOW THE VERY BEST IN US. TO SPEAK ABOUT A CRISIS MAY PROMOTE IT. NOT TO SPEAK ABOUT IT PERPETUATES CONFORMISM. LET US WORK HARD INSTEAD. i hope all who reads this gets some good food for thought from this and enjoyed it. Namaste, love and peace universally jackovesk, thank you for this great thread and all your interesting and controversial threads.

[aranuk]

I would consider Iceland if the poleshift happened to make Iceland a warmer clime. To hell with putting up with colder weather that we have in Scotland. No is my first and last answer, but thank you Jack for the invitation.

Stan

[trenairio]

[edit][edit][edit]

[modwiz]

As far as I know, Iceland has very strict citizen criteria. They are a homogeneous society and are not looking for outsiders to join them. One of the reasons they were able to resist getting screwed by outsiders,(international bankers) is because of their solidarity and no organized foreign voices.