The Iceland Financial Renaissance Miracle Continues

Tyler Durden's picture

When it comes to the New Normal, there are just two precedents: complacent and doomed debt slaves, such as Greece, which continues to voluntarily hand over any and all of its real assets to the vampiric banking oligarchy in exchange for simply being the member of a doomed club, while trembling at constant threats of fire and brimstone if it dares to split away from its monetary parasites (and where unemployment rises by 3% in one quarter), or the rare success story such as Iceland, which showed the bankers a middle finger, took the red pill and disconnected from the globalization matrix. And while even Bloomberg recently extolled the virtues of the Iceland "case", which will likely be solitary until the entire ponzi scheme comes crashing down, we are heartened when we observe all incremental milestones of further economic and financial success by the one country that dared to call the banker bluff, and won. Such as this press release from the IMF.

Iceland to Repay Early Some Outstanding Obligations to the IMF
Press Release No.12/84
March 15, 2012


Iceland announced today that it repaid, ahead of schedule, obligations to the IMF amounting to some SDR 288.8 million (US$ 443.4 million). The payment was made on March 12.


The early repayment is about one fifth of the SDR 1.4 billion (US$2.15 billion) that Iceland borrowed from the IMF under its Stand-By Arrangement (SBA) (see Press Release 08/296). The amounts repaid early are the obligations falling due in 2013 under the original repayment schedule.


Together with a scheduled payment made in February 2012, this early repayment will reduce Iceland’s outstanding obligation to the IMF to SDR 1.041 billion (about US$1.60 billion). This outstanding balance is projected to be repaid during 2012-16.


After this early repayment, and taking into account a similar early repayment of Iceland’s Nordic loans, reserve adequacy—as measured by the ratio of reserves-to-short term debt—will remain above the standard benchmark of 100 percent.

Congratulations Iceland. We can only hope even one other country had the testicular fortitude to follow in your footsteps and realize that all hollow threats of mutual assured destruction if one dares to turn their back on the banking supercabal, are just that. Hollow.

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SheepDog-One's picture

SO everyone who says 'Well thats just the way it is, bankers run everything, and no one can do anything against it' is efficiently proven totaly wrong. All the talk about how bankers own it, and run it, and nothing you can do is just an excuse for their own normalcy bias comfort even though its slavery. 

Ahmeexnal's picture

why on earth would they pay the IMF?

iceland should have bought PMs instead, and wait for the reset.


sessinpo's picture


why on earth would they pay the IMF?

iceland should have bought PMs instead, and wait for the reset.



Because Iceland still lives in fiat currency land. Thus to them, repaying debt would be the proper thing to do. Interest cost is a drag on GDP.

Ahmeexnal's picture

"repaying debt would be the proper thing to do"

like taking a gardasil shot?


This week, the American Academy of Pediatrics (AAP), the same group that has said all 16-year-olds should get HIV tests, is now recommending that all boys 11 years and older be given HPV vaccines.

NotApplicable's picture

Stiff the IMF and the miracle dies even quicker.

The trend is your friend's picture

hit the principal and say fuck you to the imf forever.  We don't need your stinkin loans

Green Leader's picture

The reset is coming, yes indeed.

Everyone will have a chance to "get out of Babylon".

resurger's picture

hmm let me see, i can see a similarity here .. when the government intervenes in a freemarket bad thinks happen! in iceland Kaupthing, Glitnir, and Landsbanki banks owned assets in excess of 1100% of Iceland's GDP, comprising nearly eighty percent of the island's total banking assets!

That reminds me .... yes


Divided States of America's picture

Great the IMF just got extra cash that they can plow right back into the rest of the PIIGS.

moneyline's picture

You are the exception though right?

GeneMarchbanks's picture

Huge Balls Iceland. Stone cold icey balled Scandanavians.

Shleprock's picture

But not Blue balls,  their women are smokin!!

kaiserhoff's picture

Long Thor, and Scandinavian Stewardesses;)

prains's picture

can smell like pickled herring too

akak's picture

Said the blind man in the lutefisk shop: "Hello, ladies!"

macholatte's picture


I heard a rumor that the USS enterprise will be parking in Iceland as a show of force since they started thinking about maybe one day possibly having the Ruskies build them a nuke reactor and some guy has a cousin who met a guy who knows a Turk who thought Iran was an OK place to visit on vacation 10 years ago and might have married a North Korean girl he met in Kabul and all this was discussed in a secret closed door meeting between Barry and Cameron and George Clooney ....... or something like that.

Anybody else have any insight into this developing story?


Kobe Beef's picture

All I know is you just lit up the NSA's switchboard. Party on, Wayne!

TheFourthStooge-ing's picture

macholatte asked:

Anybody else have any insight into this developing story?

Stratfor said the same thing, with debka confirming it and saying the volcanic eruptions were actually accidents at a secret underground Iceranian nuclear weapons facility.


mkkby's picture

Iceland may have won this battle.  But the bankers will come back for more.  Watch for ex-Goldman scum appointed to key positions in gov.  The empire WILL strike back.  Don't get complacent Iceland.

Hacked Economy's picture

Time to start a jedi academy and get some Ewoks together for the next round after this...

TheFourthStooge-ing's picture

GeneMarchbanks said:

Huge Balls Iceland.

NADS: The North Atlantic Dominion of Sackistan


AchtungAffen's picture

Well, Iceland nationalized dead banks. Did a whole public sector strategy. It was through the state that they gave the banks the finger. That won't happen anywhere else in the state-allergic populations of the western world...

SheepDog-One's picture

Yea because bottom line most people LIKE their slavery. Whatever.

LawsofPhysics's picture

Don't shoot the messenger simply because he speaks the truth.  Although he did forget to also mention the rather uniform ethnic composition of Iceland.  A lot easier to get things done when 1) there are not many of you to begin with (what Iceland's GDP again?), 2) you all speak the same language and 3) have the same heritage so as to agree on what needs to be done.  I see states succeeding from the union before people in the U.S. start working in each other's best interest.

AchtungAffen's picture

I really don't think it's about race or ethnic background here. When the banks imposed several times GDP on debt over the population, it doesn't matter if you're Sudaca, Chicano, Muslim, Jew, Black, whatever. It's just common sense of social justice. And that has nothing to do with ethnicity.

AchtungAffen's picture

So it is an ethnicity issue? Which is the "best" ethnicity to be then?

NorthPole's picture

LawsofPhysics, who you seem to disagree with, is right. Read his 2nd and 3rd sentences.

AchtungAffen's picture

Hm, the Swiss kinda make him wrong.

AchtungAffen's picture

People love their slavery. Specially when they're slaves for the private sector.

Rubicon's picture

Its easier when there are only 6 of them.

John Wilmot's picture

We have a free-market procedure for dealing with these situations, it's called bankruptcy. No government required.

Ghordius's picture

not true - it's a government service, the bankruptcy court. In a free-market system without government nobody steps in if your creditor rounds up some muscle to squeeze the last drop of blood out of you, literally - no government, no police, remember?

Blue Pill, Red Pill, the Icelanders took both - they refused to bail out their banks to make the creditors whole, yes.

They still have their normal debt which they are servicing. Don't behave as if they defaulted.

And the reason why they are exploring the adoption of the Loonie is because they have understood that soon it's hard to have a small currency.

And they are still hoping that Brussels get's the hint and let's them adopt the EUR without making a huge bureaucratic hassle.

Folks, we are in a currency war, downward leg. Wake up. You are being bambozzled by propagandists.

Dr. Richard Head's picture

I hope my Google translation isn't rusty, but Fjandinn hirði þig bankastjóri.

DosZap's picture

Dr. Richard Head

 Fjandinn hirði þig bankastjóri.

Sounds good, I second it.........LOL

Translational Lift's picture


I don't know Icelandic (or is that Austrian) but it sounds like Fuck the pig banksters..............

Seize Mars's picture

Guess what, geniuses. Iceland has just decided to peg its currency to the Canadian Dollar. This is equivalent to a peg to the US dollar. So Iceland is just another place that the US FED can off-load inflation into.

Do you understand that? As long as the USD is the reserve currency, US inflation is your inflation. That is the only reason the USD ponzi has gone on as long as it has, because the FED is drawing from a very deep well here.

War-Starting Psychopathic Killers 1

Iceland 0


resurger's picture

Iceland is the horse that realized it's more powerful than it's squid master..


sessinpo's picture


Iceland is the horse that realized it's more powerful than it's squid master



I wouldn't say that is necessarily correct until Iceland pegs it's own currency to its own GDP or some other store of value (some would suggest PM).

resurger's picture

any of that would be of a good deal, having it's own currency (& a printing press) is the best thing... and pegging the currency to gold is the ultimate thing!

if it's pegged to gold, i would expect 1 cent can buy you bread and milk! and 10 USD's (am just saying) seessinpo

redpill's picture

"Iceland has just decided to peg its currency to the Canadian Dollar. This is equivalent to a peg to the US dollar."

Not really.  Canada certainly has its issues, but over the last decade the loonie has appreciated significantly vs the USD, and even dipped below parity earlier this year iirc.  A more commodity-oriented economy, slightly less fiscally irresponsible political leadership, and no massive wars help to make a more stable currency.

Jim in MN's picture

In other words, a loonie peg is a roundabout gold standard.  Very, very roundabout.  But still.

Matt's picture

The Canadian Dollar is near parity due to a long-time, now on ice, plan to bring about a currency union in North America. In ~2002 the Government of Canada sold all the gold reserves and replaced them with USD. Mark Carney, head of the Bank of Canada, used to work at Goldman Sachs. The Bank of Canada is a primary dealer for the Federal Reserve.

The CAD deviates a bit either side of the USD to accomodate fluctuations in USD and commodities, but I'd be shocked if it's ever off by more than $0.10 to either side, ever again, for any length of time.

Even without wars, we're still back to running deficits. We may lag behind in debt-to-GDP, but then again, our mortgages are explicitly backed by the federal government with $600 Billion in backing, equal to our whole federal debt, and our housing bubble is just starting to pop.

Seize Mars's picture

No, man. I'm not saying the Candian central bank is good, bad, sideways. That they have or haven't done a good job of printing or non printing, whatever.

I'm saying that the USD is the reserve currency of the CDN. That means American inflation is Canadian inflation. And now, Canadian inflation is Icelandic inflation.

It's like Bela Lugosi. If you leave the door open, the vampires walk right in.

The bankers are back in charge in Iceland all over again, because the Icelandic money supply is now a function of whatever the Bernank says it is.

the Bernank 1

Iceland 0

brent1023's picture

While in the past the $C has moved with the $US that linkage is weakening.

$C is now a petro/commodities dollar, no longer a manufacture and sell to the US dollar.

At $C=.65$US in 2002 to parity today, with bit of a crash in 2008, like the $AU, the $C will not crash with the $US over the next few years.

sgt_doom's picture

I would expect nothing less from the country which produced the colossal mystery writer, Yrsa Sigurdardóttir.


Acet's picture

The sad bit is that I only guessed she's a woman because of her surname.

Ghordius's picture

It's not even a surname or family name in our sense, Sigurdardóttir just means Daughter of Sigurdar...