Tag Archives: Iceland

Iceland’s Pirates head for power on wave of public anger, by Stine Jacobsen

The Pirate Party is not a joke. It’s shaking things up in Iceland, part of the anti-establishment wave sweeping Europe. From Stine Jacobsen at reuters.com:

A party that hangs a skull-and-crossbones flag at its HQ, and promises to clean up corruption, grant asylum to Edward Snowden and accept the bitcoin virtual currency, could be on course to form the next Icelandic government.

The Pirate Party has found a formula that has eluded many anti-establishment groups across Europe. It has tempered polarizing policies like looser copyright enforcement rules and drug decriminalization with pledges of economic stability that have won confidence among voters.

This has allowed it to ride a wave of public anger at perceived corruption among the political elite – the biggest election issue in a country where a 2008 banking collapse hit thousands of savers and government figures have been mired in an offshore tax furor following the Panama Papers leaks.

If the Pirates emerge as the biggest party in an Oct. 29 parliamentary election – as opinion polls suggest – they will deliver another defeat to Europe’s mainstream politicians.

 

The rise to power of a party which started out less than four years ago as a protest movement against global copyright laws, and whose election campaign is partly crowdfunded, would create shockwaves felt far beyond this island of 336,000 people on the edge of the Arctic Circle.

“Across Europe … increasingly many people think that the system that is supposed to look after them is not doing it anymore,” Pirate leader Birgitta Jonsdottir, who is also a published poet, told Reuters.

“We know that we are new to this and it is important that we are extra careful and extra critical on ourselves to not take too much on. I really don’t think that we are going to make a lot of ripples in the economy in the first term.”

“That is one of the things where you have to trust in the experts,” the 49-year-old added, referring to the ongoing lifting of capital control instituted by the central after the bank crisis.

‘NO DRAMATIC THINGS’

The Pirates are benefiting from Iceland’s fragmented political landscape where coalition government is the norm. Opinion polls show support for the party running at over 20 percent, slightly ahead of the Independence Party, which shares power with the Progressive Party.

The left-leaning party is part of a global anti-establishment typified by Britain’s vote to leave the European Union. But their platform is far removed from the anti-immigration policies of the UK Independence Party, France’s National Front and Germany’s AfD, or the anti-austerity of Greece’s Syriza.

Iceland’s gross income per capita was almost $50,000 in 2015, according to the World Bank, well above the $34,435 EU average – though still 20 percent below a 2007 peak. Immigration levels are low compared with many other European countries.

Helped by a tourism boom, economic growth this year is expected to hit 4.3 percent and the latest data shows a seasonally adjusted unemployment rate of 3.1 percent.

There appears little appetite among the public or any party leader for economic radicalism. The Pirate Party has not set out detailed plans, but has made clear that it would not deviate far from current policies in the next government term.

“We will not be doing any dramatic things in this regard, we will carry on with the lifting of capital control. We are not going to make any dramatic changes in the financial sector,” said Jonsdottir.

There is little sign of business or investor panic.

To continue reading: Iceland’s Pirates head for power on wave of public anger

 

Icelandic Bankers Are Not Too Big To Jail: Face 74 Years In Prison As US Bankers Bask In Bailouts, by Tyler Durden

It’s hard to believe that not one criminal act was committed by the US banking set during either the housing and mortgage finance boom or the subsequent bust and financial crisis. Yet, no bankers have gone to jail, and as far as SLL knows, none have gone to trial for mortgage or securities fraud, although such fraud was rampant, or any other white-collar crimes. Iceland has done things differently. From Tyler Durden at zerohedge.com:

As TheAntiMedia’s Claire Bernish exclaims, you could ice skate in Hell sooner than see the United States follow in Iceland’s footsteps with this move: the 26th banker was just sentenced to prison for a combined 74 years between them — each of them jailed for their roles in the 2008 economic collapse.

Five top bankers from Iceland’s two largest banks — Landsbankinn and Kaupþing — were found guilty of embezzlement, market manipulation, and breach of fiduciary duties. Though the country’s maximum penalty for financial crimes currently stands at six years, the Supreme Court is currently hearing arguments to extend the limit. Most of those convicted have so far been sentenced to between two and five years.

Do those sentences sound light to you? Perhaps. Until you consider the curious method of punishment the U.S. employed for its thieving bankers.

While Iceland allowed its government to take total financial control when the 2008 crisis took hold, American bankers — in likely the only bail handout given to criminals of mass destruction — received $700 billion in Troubled Asset Relief Program (TARP) funds.

Thank you, Congress American taxpayer.

Iceland certainly didn’t make it through the crisis unscathed. It repaid the IMF (the final $332 million owed was paid in full, ahead of schedule, earlier this month) and other lenders for funds needed to prevent a complete financial meltdown nearly eight years ago. Icelandic bankers are still being held to task for their illegal market legerdemain that nearly brought down the financial planet.

In contrast, not one banker in America has ever (nor will ever?) be held responsible for their criminal acts. Instead, essentially in addition to the $700 billion windfall — Big Banks are now raking in over $160 billion in profit every year.

Iceland’s president, Olafur Ragnar Grimmson, described how his country not only weathered the storm, but has been labeled the first European country to fully recover from the crisis:

“We were wise enough not to follow the traditional prevailing orthodoxies of the Western financial world in the last 30 years. We introduced currency controls, we let the banks fail, we provided support for the poor, and we didn’t introduce austerity measures like you’re seeing in Europe.”

If only the U.S. government were capable of employing logic.

To continue reading: Icelandic Bankers Are Not Too Big To Jail