The Amazing Story of Iceland’s Economic Recovery

Iceland map

Iceland went through a deep economic crisis in 2008. This tragedy, which could have led to the economic enslavement of the country – the Greek scenario – was the occasion of a major restart of the Icelandic society, on very different principles from the reigning neo-liberal vulgata that controls presently the Western world, with dire consequences that are continuously exposed prophetically by Pope Francis, which makes the preachers of the neo-liberal false ‘gospel’, to accuse him of being a communist. They would have done that to Jesus too, if he lived today. So, the pope is in good company.

How did the whole thing started? Here is one version of it:

Five years of a pure neo-liberal regime had made Iceland, (population 320 thousand, no army), one of the richest countries in the world. In 2003 all the country’s banks were privatized, and in an effort to attract foreign investors, they offered on-line banking whose minimal costs allowed them to offer relatively high rates of return. The accounts, called IceSave, attracted many English and Dutch small investors.  But as investments grew, so did the banks’ foreign debt.  In 2003 Iceland’s debt was equal to 200 times its GNP, but in 2007, it was 900 percent. Continue reading “The Amazing Story of Iceland’s Economic Recovery”