Monday, April 11, 2011

Karl Denninger, "Iceland Again Says 'Bite Me!'"

"Iceland Again Says 'Bite Me!'"
 by Karl Denninger

"It is amazing to find the people with the biggest cojones inhabiting one of the most-frozen lands on the planet:

REYKJAVIK, Iceland- "Voters in Iceland have rejected a government-approved deal to repay Britain and the Netherlands $5 billion for their citizens' deposits in the failed online bank Icesave, referendum results showed Sunday. With about 90% of the votes counted, the "no" side had 59.1% of the votes and the "yes" side 40.9%. The result reflects Icelanders' anger at having to pay for the excesses of their bankers, and complicates the country's recovery from its 2008 economic collapse."

This alleged "deal" would have saddled every man, woman and child with about $16,000 worth of debt to pay off to greedy depositors in Europe. Yes, I know, the argument goes that Iceland "owes" these people this guarantee.  And Britain and the Netherlands have threatened to sue.  There's only one problem with suing: The court they have available to them to sue in has no jurisdiction in Iceland; ergo, any judgment that is obtained there is unenforceable.

Never mind the unlawful acts taken by Britain and others thus far, not to mention the pure idiocy of those depositors.  If you remember, Britain effectively declared Iceland a terrorist nation during the meltdown in an attempt to recover their money.  That was an act of war. Then there's the fact that these "accounts" were paying interest well over the norm at the time.  Fitch had downgraded and anyone else who had bothered to look was well-aware that the entire game was a Ponzi scheme and unsustainable.

If you buy into a ponzi scheme and it collapses before you get "yours", the blame is yours - not someone else's.  In this case there's simply no argument to be had - the foreign creditors who wish to make a claim should do so to the bankrupt estate of the firm that ran Icesave, and recover what they can.

There's no argument available that such a debate should involve the people of Iceland funding the profligacy of those banksters who ran a private institution into the ground.  That Iceland's Parliament has twice tried to ram this down the throats of the Icelandic people is cause for the entire lot of them to be tossed out of office and replaced with those who actually pay attention to the will of public.  After all, they did make their opinions loudly known not all that long ago."

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