How Iceland Overthrew The Banks: The Only 3 Minutes Of Any Worth From Davos

Tyler Durden's picture

"Why do we consider banks to be like holy churches?" is the rhetorical question that Iceland's President Olafur Ragnar Grimson asks (and answers) in this truly epic three minutes of truthiness from the farce that is the World Economic Forum in Davos. Amid a week of back-slapping and self-congratulatory party-outdoing, as John Aziz notes, the Icelandic President explains why his nation is growing strongly, why unemployment is negligible, and how they moved from the world's poster-child for banking crisis 5 years ago to a thriving nation once again. Simply put, he says, "we didn't follow the prevailing orthodoxies of the last 30 years in the Western world." There are lessons here for everyone - as Grimson explains the process of creative destruction that remains much needed in Western economies - though we suspect his holographic pass for next year's Swiss fun will be reneged...

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Yen Cross's picture

I shorted the Yen Crosses.

markmotive's picture

“The ideal system, the one that we should aim at, is not a system where a bank can’t fail, but a system where a bank can fail without it being a problem, without the taxpayer having to come and rescue it … Occupy the central banks that have printed the money in order to get around the failures of a handfull of banksters! Occupy the houses of the politicians who voted to give your money to people who are not prepared to live with the consequences of their own errors!”

DaveyJones's picture

that makes too much sense. Go to prison

Stackers's picture

March 2013 ...... in other news Iceland President Olafur Grimsson died mysteriously in his sleep last night. He apparently shot himself in the back of the head from 20' away while sleep walking.

Buckaroo Banzai's picture

In related news, whores in Davos swallowed a record amount of semen this year, breaking the 2009 record of 384 liters.

Also, 2309 children were sexually molested, up from 2011's record of 2192.

Satanic ritual slaughter of infants was down this year, due mainly to concerns of how to dispose of the remains, given some unforeseen circumstances. It was determined that Moloch will have to be fully appeased at Bohemian Grove; organizers have given their assurances that steps are being taken to accommodate the local infrastructure accordingly.

strannick's picture

Icelandic President: "Why are banks considered to be the holy churches of the modern economy?"  

A: Because the modern economy is evil

Buckaroo Banzai's picture

13 No servant can serve two masters: for either he will hate the one, and love the other; or he will hold to the one, and despise the other. You cannot serve God and mammon.

Luke 16:13

Bananamerican's picture


by the way, President Olafur Ragnar Grimson is a liar.

"we smacked the banks" is an Icelandic meme

ISEEIT's picture

Likely...These fucks do love their memes eh?

Svendblaaskaeg's picture

"I could talk about how the banks are again expanding and playing the exact same game they did in the bubble. I could go on and on but if you haven’t been listening so far, nothing else I have to say will convince you.

Of course, that means that you are an idiot who refuses to acknowledge facts, but, thankfully, being a moron is your burden to bear, not mine."


Great read! (link) - thank You Sir!

GetZeeGold's picture



A moment of silence in Davos.....for our fallen comrades.


It only took three minutes to explain it.......that seems foreboding.


read it and weep, meme-swallowers of ZH...


I read it....the IMF and BIS are zombies....of course they will try to come back again.

nom deplune's picture

I read it....the IMF and BIS are zombies....of course they will try to come back again.


HeHeee, keep this shit coming bro, pure genius I say, pure genius.

James_Cole's picture

Bananamerican did you even watch the clip?

Here were his main bullet points:

- implemented currency controls

- let banks fail

- didn't introduce austerity to extent in Europe

None of that is in conflict with the article you linked to and overall three sensible points. How many people on here support debasement of currency, bailing out banks and Greece style austerity? 

Muppet Pimp's picture


Why is the US mint out of silver while HSBC buys it no problemo from the poles?  Is US .gov complicit in allowing a known money launderer to secure supply (presumably to cover short positions) while they hold out on their people?

(posting on a few threads, it is important)

riley martini's picture

 Banana here is the so-called selout to banksters #1 Hung up on UK FM .#2 lied to banksters about banks .#3 Announced on tv that creditors-banksters would not be bailed out . #4 would only agree to noncommittal loan which they knew the bankster would never accept . That was on your  link.

rotagen's picture

Thanks for confirming my suspicions Bananamericanamanoman or whatever.  You can't kill a central bank unless you...kill them.

nmewn's picture

This article has over five hundred tweets so far...something tells me its not the article itself, as much as what was offered in bananamerican, hooligan's and espirit's linkage within the comment section ;-)

Fíréan's picture

Wishful thinking.  How many people actually read the comments sections ? And when you tweet do you emphasis that the reason for the tweet was a link somewhere down the page amongst all the comments ? And then expect the recipient of the tweet to actually browse the comments to find the relevant tweet ?

nmewn's picture

Yes, I suppose its impossible to think the tweeters would be saying in their text to scroll down to the 10th comment link ;-)

serog's picture


why not just post the intended link?

nmewn's picture

ZH carries more weight?

Its over a thousand (tweets) now...we saying the rather innocuous main article has that much interest?

Someone(s) are definitely interested in the subject & the subtext...people want truth, they are tired of being lied to.

Theosebes Goodfellow's picture

~"Satanic ritual slaughter of infants was down this year..."~

Yeah, maybe in Davos, but we made up for it in the USA. Thanks to "Planned Parenthood", (an oxymoron if you ever heard one), they weren't born in droves here. (My apologies to the late Samuel Goldwyn.) 

NoTTD's picture

In the alternative, he accidently cut his head off while shaving.

economics9698's picture

It is always amazing the solution to getting people back to work is arresting and jailing a few hundred people.

Y = C + I – G + NX

LetThemEatRand's picture

"...we provided support for the poor...."

I'll bet a lot of those here cheering him on glossed over that part, yet it is a critical part of the equation.   Ayn Rand would not be proud, because she was an idiot as proven quite clearly by this part of the Icelandic success story.  

Jack Burton's picture

 Indeed, Iceland made provisions as far as possible to help get society through the financial disaster. No Icelanders were sleeping in their cars like in today's Spain! I have spent a lot of time in Scandinavia, Sweden in particular, but also been to Iceland, Norway and Denmark.  I speak Swedish fluently and that is where my father's parents were born and grew up.

What I know from reading many economics blogs, the comments sections in particular, is that very few who comment on Scandinavian economic and social systems  know much of the reality there.

I agree, Iceland is anything but an Ayn Rand type society. MS Rand is not in our genes I can tell you! But if you want to talk hard work, industry, competence, the work ethic, industrial and technological inovation, I will hold up Scandinavia to any nations.  Most Americans call Sweden a socialist hell hole. That can only come from a lack of knowledge.

I have family and friends in Sweden who are corporate executives, high tech developers, industrial managers, private farmers, and business owners. Go live with them in Sweden like I have, and tell them they are part of a socialist hell hole. Now that would pull a laugh or two! The welfare state is well known, and well managed. It has it's detractors and supporters, but the decisions are made in a democracy with free open and fair elections. So people have a right to arrange their own nation.

Al Gorerhythm's picture

What's their M3 rate of growth annualized? Do they use gold and silver as money there?

AUD's picture

This article is complete bullshit.

Just go here to see how Iceland 'did it'.

The average Icelander has been screwed hard & will get it all again soon enough.

All Risk No Reward's picture

Exactly.  The banksters let them win a win a Pyrrhic victory while they concentrate on moppin gup all the chumtocracies over which these criminal kleptocrats rule.

You have to remove THE ROOT CAUSE if you want to get ride of the bad effects.

The root cause is the fraud that is debt based money.  It is Debt Money Tyranny. 

Debt Money Tyranny

America has been under a soft (now hardening) financial tyranny (a very real tyranny) for a hundred or more years.

Stacking criminal fractional reserve Ponzi lending on this fraud only weaponizes this highest level Art of War the world has ever seen.

Lady (the rumors are true, there is only one lady who visits ZH ;-) and Gentlement, war **is** all about deception.

The victims of the highest state of the art warriors DON'T EVEN KNOW THEY ARE IN A WAR.

The Art of War wwarriors never have to throw a blow.

Yes, they've constructed it and they have it like that.

The average schmoe thinks these people are dumb.  Oh, making the sheeple think they are smart and the authoritarian tyrants stupid is all part of the highest Art of War.

Read the book.  You enemy probably knows it by heart.

As if Debt Money Tyranny and fractional reserve Ponzi lending wasn't enough...  they unleashed the bucket shop and stomped on anyone that got in the way...  Netflix "The Warning".

Another good Netflix movie is ironclad.  The chumptocracy thinks the tyrants are the keepers of their freedom.  Ignorant chumps.

The people have to FIGHT their government tyrants, TOOTH AND NAIL, to hold onto the freedoms the tyrants which to snuff out.

The Barons of Runnymede understood this well.  Even when the tyrant was claiming to allow freedom, he was scheming to dominate all who wanted freedom - and destroy those who wouldn't be dominated.

A true education of the masses is the only thing that will keep these criminals from having their way with society.

You are either part of the solution or part of the problem.

We are up against cold hearted, demon spawn tyrants.  They love death and have probably a billions dead souls to their name...  and that's not enough for them.

They love violence, wars, etc.

For all his good traits and failings, Alex Jones has it dead on - this is an information war.

The system sucks the minds out of citizens and spits them out. 

Someone, somewhere has to light that spark and let people know the system only works BECAUSE WE LET IT WORK.

Once the trick of the modern day Babylon system is exposed, it is impossible to forget!

The scientific dictatorship reveals itself right before our eyes... and in all its demon spawn glory.

IBelieveInMagic's picture

Paper and electronic money has been very good for the Western world at the expense of the commodity/third world. The loot has obviously not been distributed evenly but as a whole, it has been great for OECD countries.

Just deal with it.

All Risk No Reward's picture

Focus on reality, not the ILLUSION.

The physical wealth is the temporary ILLUSION.

The inextinguishable debt is the REALITY.

America is an impoverished entity.  Sure, many have physical wealth now, BUT THAT'S TEMPORARY.

The Debt Money Tyrants and their fraudulent debt system is impoverishing America ever more as each day passes.

Same with Europe.

Yes, the 3rd world has been royally (literally) forked and these criminals didn't even bother with an ILLUSION there.

But don't think the common person in America is going to hold onto their $10 in physical wealth when they owe $15.




This is where the controlled opposition narrative of straight to hyperinflation is wrong, wrong, wrong.

The mega banks control the debt money supply.  The debt money supply will determine what sort of 'flation we end up with.

The mega banks are lending 15 years at 2.5% and 30 years at 3.0%.



Ideology over observation and critical thinking (The Trivium - grammer (data - who what where when), logic (why - eliminate contradictions and fallacies) and rhetoric (how)... there is a reason they don't teach in the sheeple schools what served Socrates so well).

BTW, I get good information from all of the above "personalities," but the "straight to hyperinflation" meme is not part of it.

GetZeeGold's picture



Critical thinking.....when idiots run out of gas.

nom deplune's picture

Critical thinking.....when idiots run out of gas.


Now that's funny coming from youI'll actually give you an up for use of irony.

unununium's picture

Is anyone else getting numerous 0% credit card offers again?  Is appears that lack of lending is not for lack of trying ... at least with some prospects.

Backspin's picture

"The mega banks are lending 15 years at 2.5% and 30 years at 3.0%."


The banks have no skin in the game on these loans.  They don't care that much if the rates are low.  All profit and no risk for them.  But, yes, contraction of the debt-money would be deflationary, and they can't force people to borrow.


The inflation will come from government spending, IMO.  And that is showing no signs of abating.


Please correct me if I'm wrong, people.


disabledvet's picture

"if the best the Government can do is pay down the deficit to surplus" then no, what inflation there will be will be de-minimus since "the totality of the people have stopped paying for that." to counter-act the power of the Banker-MEDIA complex you need to "force" a particular honesty on the criminals committing the crime and getting away with it. And how does that happen? To me it's as simple as showing the world that only thinking of yourself and getting rewarded for it MUST HAVE AN ALTERNATIVE. And no...i'm not talking about going to church more...

All Risk No Reward's picture

disabledvet, if you haven't already, check out the PeaceRevolution podcast.

Don't go in with a preconceived notion based on the name - it is actually a thought provoking podcast that deconstructs the fallacies and inconsistencies of society and the dElites running it.

You might want to start with this Richard Grove interview...

All Risk No Reward's picture

"The banks have no skin in the game on these loans."

One distinction.  The banks don't matter, its the people who own and control the banks that matter.

Chess pieces aren't valuable unless they can help the CHESS MASTER win their Art of War implementation.

Having said that, the OWNERS seem particularly interested in protecting their TBTF&J banks and banksters.

Saying the OWNERS have "no skin in the game" is akin to saying they are impoverished.

By my count, they and their mega corporate fronts have trillions in Federal Reserve Debt receipts.

That translates into trillions in "skin in the game."  Are you worried about $100k?  Imagine how much they are worried.

So why are they looting the Treasury of more trillions and gambling on food stuffs jacking the prices for the common person?

The answer is in the question as posed.

WHO is it that owns trillions in debt instruments?  Oh, that would be the small OWNER class.

Sure, the government says they will back stop all their losses, but that will get risky as they default on 350 million commoners.

That's why they are offloading as much debt as possible NOW, before the pain hits the narcissistic high end prole class.

The OWNERS and CONTROLLERS of the system have more skin in the game than anyone - and they will protect it as assuredly as they are looting the Treasury and ripping off the tax payer Muppet's face right now.

Tails the OWNERS wins, heads everyone else loses.

Anyone with trillion in debt money receipts (money) and trillions more in debt holdings will defend that from loss.  Right now, they are stealing more than they are losing to inflation, so the NET GAIN IS POSITIVE FOR THEM.

That trend is UNSUSTAIINABLE.  By definition it will end.

What comes next?

Do the trillionaires destroy their wealth and control by trying to save social security and medicare?

Or do they cut off credit, WHICH ONLY THEY CAN DO, bust almost everyone, and then foreclose on trillions in assets and buy up the rest of the world, for pennies on the dollar BTW after they bust us, with the trillions they've looted from society.

We literally pay for them to steal our wealth, destroy our liberties and set up their authoritarian rule over us.

I'm not funded by anyoone, hence I can tell the truth about this.  This message will not be funded by the International Banking Cartel.

It will be suppressed...  mostly by people not thinking critically about it BECAUSE it isn't promoted by bankster financed or promoted individuals who don't better or coldly set up the proles for poverty and enslavement.

Now, that's not to say hyperinflation won't happen.  Once these criminals have all the assets, they need to BALANCE THE BOOKS RIGHT?

A good hyperinflation will do that, will it not?

And since they will essentiall own the physical Earth by then, MONEY'S SOCIETAL ASSET STRIPPING characteristic will no longer need to be defended.

You have to do the research yourself to reach your own conclusion.  Don't just repeat bankster financed propaganda.  An understanding of Econ 101 (cost / benefit analyis) is required, as is the ability to remove contradictions.

The system will give you a million contradictions to confuse your thought process.  You need to be able to remove them.

For example...

1. Insiders are stupid

2. Insiders don't get charged when they commit ccrimes (Corzinie, JP Morgan, Jefferson County bribery, laundering $100s of billions in drug money (which is, miraculously, never recovered...  but that's not a problem, this is not the droid you are looking for), including running the drug money planes, armign the mega bank drug cartels that launder their money through mega banks, growing the heroin with tax payer dollars in Afghanistan, digitally raping innocent women on the roadside with the same glove...

Oh, don't believe it... pay attention!

Torturing, eliminating the Constitution (you live today ONLY because the bankster handmaiden President decided not to kill you - no evidence, no trial, no jury.  They think you are so stupid, they don't even think you need a show a trial to control you.  Didn't kill you today, anyway.  Maybe tomorrow.)...  trying to steal paid off hotels from law abiding citizens...  oh, don't believe that one?


I could go on and on.  And on and on.

In fact, here's two more...  The Fed lies about a dual mandate because they broke Section 2A of the Federal Reserve Act for 30 years running.  Their laws have no penalties, though.  You know, they were too "stupid" to give themselves penalties...  or were we too stupid to demand penalties?  Lastly, the government criminals (not fools, criminals) are trying to ban self defense weapons... but onoly for you.  You see, the don't get social security.  They don't get our "sick care."  Nor does the gun ban apply to them.

Only someonoe completely uninformed or brain dead stupid thinks that they are too stupid to not to exempt themselves from such great programs.

OK, one more.  Congress got busted criminally insider trading, fleecing the general public with insider information.  Since they were stupid, they all went to jail.  Uh, no.  The pretended that their crimes were legal and the stupid public bought it.  Congress then passed a law that LEGALIZED INSIDER TRADIING SO LOONG AS YOU GOT A "HANK PAULSON" EXEMPTION FROM OTHER INSIDER TRADERS.

I know who the FOOLS AREN'T.  Unfortunately, too few people know the same.  They fall for the art of war trick of making your opponent feel smart so s/he thinks you are dumb.

So, for those who read this far and can't figure out the contradition, THE INSIDERS DO WHAT THEY WANT, CRIMINAL OR NOT AND GET AWAY WITH IT OVER AND OVER AND OVER.

If they were "stupid" they'd get caught and thrown in jail.  They aren't stupid, WE ARE.


wake up!

buckethead's picture

I would simply switch the term 'root cause' to 'disease'.

In the US, we don't even bother treating the symptoms as we completely ignore the disease.

Silver Bug's picture

The banks have got a iron grip on the western world. But as this brave man shows, we can change our course if we stand up for our rights.


Keep Calm and Slave On, must see.

wee-weed up's picture

Jack Burton:

So, how have the government-sponsored Islamic immigrant polices helped Sweden and other Scandinavian countries avoid being called "socialist hell holes?" How are these folks assimilating into Swedish culture? Are those policies now regretted?

Buckaroo Banzai's picture

Bingo. Scandanavian socialism is just as fucked as every other brand of socialism. That fact wasn't quite as noticeable for the first 50 years. Now reality is catching up to them.

Matt's picture

Except they have the advantage of virtually no immigration, legal or otherwise. It is much easier to have democracy and socialism when you have a homogenous society made of one ethnicity and one culture.

On top of the advantages that other Scandinavian countries have (above, and the general resource wealth scandinavian countries have) Iceland also has the advantage of a very small population. People are less likely to rob (i.e. squander the money of) other people they know personally. I'm sure it is the nebulous haze of unknown strangers that makes spending Other People's Money so easy for many people.

GetZeeGold's picture



Almost everyone in Greece dreams of moving to Sweden....rinse and repeat.

Carl Spackler's picture

the Greeks...yeah, getting their feet under them on somebody else's dime, then moving back to Greece because it is depressingly cold and dark for half the year in Sweden

Scandanavian socialism is a structural economic failure just like socialism anywhere else in the world. 

It's just headed to destruction at a slower pace, because, like others have pointed out in this thread, they have no poor immigrants to deal with or take care of, they are significantly smaller societies, and they pay nothing out of their economy for national security, as the USA's navy and army protects them.

And, I have been to Iceland.  Other than abundant geothermal energy, there is nothing there.

Consequently, the national pastime is being intoxicated 24x7 on grain alcohol.

CheapBastard's picture

matt, you need to go there and see the latest. Downtown filled with MENA immigrants and some suburbs total ghettoes of MENA people outside of Stockholm. I was there last year...Be care at's all different now...the wars in MENA world have created 100,000 refugees and they have flooded the EU...some places more then others.

Buckaroo Banzai's picture

No immigration??? When was the last time you were in Sweden? The country has been overrun with Muslim immigrants. Crime--especially rape-- has skyrocketed.

Socialism is a mental disease whose primary symptom is the denial of reality. Sooner or later reality intrudes, and destroys the illusion, resulting in social collapse. For the Swedes, the punishing agent of reality came in the form of Muslims.