How Iceland Escaped From ‘One Bank’

Written by Jeff Nielson (CLICK FOR ORIGINAL)

What have the governments of the corrupt Western bloc spent most of their time doing since the Crash of ’08? We can answer this question in three parts:

1) Creating increasingly falsified “statistics” to fabricate the illusion that their economies were not on the verge of all-out economic collapse;

2) Hacking and slashing every social program in sight in order to generate the false savings known as Austerity; and

3) Creating new funny-money and taking on new debt at an exponentially increasing rate in order to delay collapse, since all that Austerity accomplished was an acceleration of these death spirals.

Making these points apparent to newer readers will require additional elaboration. The starting point is the Crash of ’08 itself. What caused these nations to go from being merely heavily indebted to hopelessly insolvent overnight? That can be summed up in a single euphemism of fraud and crime: “too big to fail.”

At the end of 2008, the West’s puppet governments succumbed to History’s ultimate act of blackmail at the hands of History’s largest and most rapacious crime syndicate: the One Bank “Give us all your money, or we’ll blow up your entire financial system.” That is the real meaning of “too big to fail”: institutionalized extortion, in perpetuity.

What was the real price tag for this massive extortion operation? Forget the phony numbers published by our corrupt governments and their mouthpieces in the corporate media. The total quantum for these extortion payments was in the tens of TRILLIONS . Obviously the Deadbeat Debtors of the West couldn’t raise more than a tiny fraction of that amount of blackmail money up front. Thus, most of this shakedown of (supposedly) sovereign governments came in the form of future tax breaks and “loss guarantees.”

In the Shakedown of ’08, our governments did not merely clean out every penny they could scrounge from our public treasuries and borrow every penny that they could. In addition, they mortgaged the future of our children and grandchildren by pledging infinite corporate welfare for the One Bank.

Western governments had no money left to spend on their own people after committing tens of trillions in extortion payments to this banking crime syndicate while also having to deal with rapidly rising interest payments (to the same crime syndicate) on all their new debts. So Western governments then pulled out their chainsaws and attacked our social programs.

Infinite dollars in “interest payments” go to the crime syndicate; no pennies are left for the people. That is Austerity. However, so-called Austerity represents more than simply another act of economic treason against Western populations; it is also the self-inflicted, fatal wound for these economies.

Austerity treason took economies that were already in a slow-motion descent toward collapse and rapidly sped up that suicide cycle. The evidence here is overwhelming, but it can be summed up most easily in one word: Greece.

Greece has had far greater and more punitive amounts of Austerity treason heaped upon its victim population than any other regime in the Corrupt West. It was demanded by the economic sadists known as “the Troika”: the European Union, the European Central Bank, and the International Monetary Fund. The result? This nation was bankrupted twice within a span of five years.

Which nations are closest behind Greece in Europe’s Bankruptcy Derby? Spain and Portugal. These are the #2 and #3 nations in terms of inflicting the greatest amounts of this suicidal Austerity on their own populations. Austerity kills. More Austerity kills faster.

Here, people need to understand that it was always totally predictable that Austerity would fail. It was always totally predictable that Austerity would harm these economies more than help them. And this was predicted (repeatedly) in previous commentaries.

How do you make any economy stronger? The key lies within one of the most fundamental principles of economics: the Marginal Propensity to Consume. This law of economics is universally accepted because it is ½ simple arithmetic and ½ common sense.

In elementary terms, the fastest and easiest way to make any economy stronger is to place a dollar into the hands of a member of the Poor or Middle Class. Why? Because these people will spend most of that dollar (the Middle Class) or all of that dollar (the Poor) immediately. This extra dollar of consumption then gets divided up into wages, payments to suppliers, tax revenues for the government, etc.

Then additional portions of that dollar are spent and re-spent. This is known as “the multiplier effect,” and it explains why the Marginal Propensity to Consume is a universally accepted principle.

But what happens if we put a dollar into the hands of the Rich, rather than the Poor or Middle Class? By definition, the Rich person will hoard the vast majority of that dollar. As a matter of the simplest logic and arithmetic, no person can become “rich” unless/until they have spent years hoarding wealth, or they win a lottery.

Thus every time a Rich person receives a dollar, most of that dollar is hoarded and disappears from the economy. Only a few pennies of that dollar are ever circulated, and as a result the multiplier effect is virtually nil. This is known by the economic euphemism of “trickle-down economics.” Put all the new dollars into the hands of the wealthy, and only a few pennies will ever “trickle down” to the economy.

“Trickle-down economics” has been the official policy of nearly all of the traitorous governments of the Corrupt West since the start of the new millennium, and, in the case of the U.S., it goes back at least a full generation. This policy of everything-for-the-Fat-Cats and nothing for the Little People is one of the primary reasons for the relentless decay in our standard of living and the relentless collapse of our economies.

How do you then make these sick economies even sicker? Start taking extra dollars out of the hands of the Poor and Middle Class – Austerity. Every dollar of Austerity treason creates a Reverse Multiplier Effect: removing more and more dollars from the system and thus starving the economy of the fuel which allows our consumer economies to survive: consumer spending.

Austerity causes the economy to get even sicker, leading to larger deficits, more borrowing, and thus even higher interest payments to the parasitic One Bank. Debt slavery. The response from these puppet governments to this vicious circle? Even more Austerity. If something fails, do much more of it.

However, one Western nation that was caught up in the original Crash of ’08 did not climb aboard this treadmill of economic suicide and blackmail: Iceland. As a result, alone among the nations of Europe, Iceland enjoys real robust economic growth. The standard of living of its population is once again risingrather than falling as it is throughout the rest of the Corrupt West.

How? How did one, small island nation succeed while every other Western government failed miserably and completely? As with the economic suicide now practiced throughout the Corrupt West, Iceland’s success also traces back to the same four words: “too big to fail.”

What happened when Iceland’s Big Banks (more tentacles of the One Bank) arrogantly demanded that the government rubber-stamp the principle of crime of “too big to fail” – sacrificing the System in order to save the Big Banks? Iceland’s government responded that it had a different, radical idea: it would sacrifice the Big Banks, and save the System.

Iceland’s Big Banks folded. As with all blackmailers, the One Bank responded to Iceland’s refusal to be blackmailed by immediately lashing out in revenge. Among other things, it attacked Iceland’s currency (i.e. manipulated it lower), yet another criminal conspiracy for which the Big Banks have now been convicted.

However, Iceland’s government stood firm and did not cave in to the attempted extortion by this crime syndicate. It weathered the financial/economic reprisals. It proved that “too big to fail” was always nothing more than a lie and a myth created by the banking crime syndicate. No entity within any system could ever be more important than the system itself. This was always elementary logic. Iceland has validated that logic.

Iceland refused to be blackmailed. Iceland refused to take on the extra debt (and debt slavery) that came with the blackmail. Iceland refused to touch its social programs. Iceland has the strongest economy in the Western world.

Game, set, and match.

Iceland Sentences 26th Banker

Iceland sentences 26 bankers to a combined 74 years in prison

Iceland sentences 26 bankers to a combined 74 years in prison

Unlike the Department of Justice, Iceland is focusing on prosecuting the CEOs rather than low-level traders.

by James Woods, published on US Uncut, on October 21, 2015

Iceland sentences 26 bankers to a combined 74 years in prison

In a move that would make many capitalists’ head explode if it ever happened here, Iceland just sentenced their 26th banker to prison for their part in the 2008 financial collapse.

In two separate Icelandic Supreme Court and Reykjavik District Court rulings, five top bankers from Landsbankinn and Kaupping — the two largest banks in the country — were found guilty of market manipulation, embezzlement, and breach of fiduciary duties. Most of those convicted have been sentenced to prison for two to five years. The maximum penalty for financial crimes in Iceland is six years, although their Supreme Court is currently hearing arguments to consider expanding sentences beyond the six year maximum.

After the crash in 2008, while congress was giving American banks a $700 billion TARP bailout courtesy of taxpayers, Iceland decided to go in a different direction and enabled their government with financial supervisory authority to take control of the banks as the chaos resulting from the crash unraveled.

Back in 2001, Iceland deregulated their financial sector, following in the path of former President Bill Clinton. In less than a decade, Iceland was bogged down in so much foreign debt they couldn’t refinance it before the system crashed.

Almost eight years later, the government of Iceland is still prosecuting and jailing those responsible for the market manipulation that crippled their economy. Even now, Iceland is still paying back loans to the IMF and other countries which were needed just to keep the country operating.

When Iceland’s President, Olafur Ragnar Grimmson was asked how the country managed to recover from the global financial disaster, he famously replied,

“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.”

Meanwhile, in America, not one single banking executive has been charged with a crime related to the 2008 crash and U.S. banks are raking in more than $160 billion in annual profits with little to no regulation in place to avoid another financial catastrophe.