Iceland To Take Back The Power To Create Money

Bankers may soon declare Iceland a rogue state and drop nukes on them.  Governments, instead of corrupt commercial banks being in charge of issuing their own money--what a concept.

http://www.theautomaticearth.com/2015/03/iceland-to-take-back-the-power-to-create-money/

Dan White: The economic return of Iceland has proved that the joke was on us

Not only did I forecast the collapse of the Icelandic bubble due to its obscene 100 x leverage ratios in their banking system, I also forecasted Iceland's subsequent recovery due to their default from debt obligations to British and Dutch banks.  While painful and inflationary for several years, default is necessary to cleanse out the excesses--and to re-emerge from the other side.  Iceland traded in decades of financial chaos and economic stagnation, and instead took their bitter medicine to recover within five years.  By stiffing their creditors, they cleared the toxic debt from their previously impaired balance sheets.

This Irish author correctly chronicles why Iceland and Ireland have had two very different outcomes.  Despite Ireland's bail out, they are even more indebted to banks, and have only extended and exacerbated their pain.  The neo-Keynesian solution of piling new debt on top of old debt will end in tears for the developed world--for decades.

http://www.independent.ie/business/irish/dan-white-the-economic-return-of-iceland-has-proved-that-the-joke-was-on-us-3327164.html

Welcome to the Currency War, Part 1: Iceland and the Tragedy of the Commons

http://dollarcollapse.com/inflation/welcome-to-the-currency-war-part-1-iceland-and-the-tragedy-of-the-commons/

The Iceland Financial Renaissance Miracle Continues

Iceland is the most recent example of why a hard default--while extremely painful--is the only solution in solving the developed world's debt problems.  Iceland basically said "screw you" to its Dutch and English creditors (banks).  Greece is the example of what not to do--keep dragging it out until the Greeks choke on their debt.  But hey, we gotta save the bankers, right?


http://www.zerohedge.com/news/iceland-financial-renaissance-miracle-continues

New Proof the U.S. Dollar is No Longer "King"

http://www.dailywealth.com/2012/New-Proof-the-U-S-Dollar-is-No-Longer-King-

Iceland Declares Independence from International Banks

Good for Iceland for giving UK and Dutch banks the middle finger.

http://netrightdaily.com/2011/04/iceland-declares-independence-from-international-banks/

Former Fed governor Fred Mishkin on Iceland

Iceland's economy collapsed in 2008, as did its currency. Fred Mishkin is a former governor in the Federal Reserve Bank. He's also an Ivy Leaguer from Columbia University. In other words, he has impressive credentials as a respected economist in academia and within the government. Watch how he squirms in the video when pressed with tough questions.

America will soon find out we have been duped by our government leaders and economists, in my opinion, of course. "Faith in the central bank" is a contradiction of terms.

PIIG sovereign debt flow diagram

http://www.nytimes.com/interactive/2010/05/02/weekinreview/02marsh.html?ref=weekinreview&utm_medium=email&utm_source=MyNewsletterBuilder&utm_content=trechairman108%40mac.com&utm_campaign=Guild+Global+Market+Commentary+1410308413&utm_term=The+New+York+Times+Europe+Web+of+Debt

Article:
http://www.nytimes.com/2010/05/02/weekinreview/02schwartz.html

The CNBC contrarian indicator

CNBC's Carl Quintanilla interviews the smug Allen Stanford on what it's like to be a billionaire--months before "Sir" Allen was imprisoned for running an $8 billion Ponzi scheme.



http://www.youtube.com/watch?v=XtRkZ3i1ERQ

A few years ago, CNBC did a documentary on venture capital investing in the booming and promising country of Iceland. In 2008, Iceland went bankrupt in a horrific collapse almost overnight.

Now Quintanilla is gearing up to do a special report on carbon credit trading. Guess what's going to happen next in that industry?

This is what happens when your currency collapses

Icelandic banks collapsed last year, causing a run on deposits and their currency, the Krona. The economy imploded, drowning in debt and over-speculation (sound familiar?) amidst a financial crisis. Inflation soared overnight. As a result, the McDonald's hamburger chain is closing all their franchise restaurants in Iceland.

http://www.bloomberg.com/apps/news?pid=20601085&sid=amu4.WTVaqjI

Countries in default--a blueprint for the US?

Countries which have defaulted on their bond obligations: first Russia in 1998, then Argentina in 2001, Iceland last November, Ecuador last December, and Ukraine on the brink.

More emerging countries are at risk. What's important to note is that in each case, the local currency was debased due to exorbitant printing of said currency. This was done in response to governments looking to print their way out of a huge deficit problem. This monetary and fiscal easing caused hyperinflation, which then caused interest rates to soar. This further exacerbated the ballooning debt, and eventually, the countries could not meet their debt covenants. This caused the country to shut down, as the government IOU's were now worthless, and credit disappeared.

The US Treasury and Federal Reserve Bank are essentially implementing these same policies of easy money and quantitative easing--only on a much grander scale. Exactly how they expect a different outcome for the US is beyond me.