A Lesson For Europe: Why Iceland Won't Join The Euro

Tyler Durden's picture

In a brief but as usual succinct statement, MEP Daniel Hannan points out the country that decided to say no to establishment-rules and stuck to its guns by taking losses, devaluing its currency, and growing its way out of its pit of despair. The eloquent Englishman notes Iceland's current enviable position in terms of not just growth but Debt to GDP and proffers upon his European Parliamentarian peers that perhaps, just perhaps, there is a lesson in here for all European governments (cough Greece/Portugal cough). 67% of Icelanders are now against joining the Euro.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
tickhound's picture



Some-body's euro

Is crowdin' my ice-land,

While some-body's pimp-co

Is giving me chills.

Guess I'll just close my eyes..............


WALLST8MY8BALL's picture


MiddletonRobert3's picture

my roomate's sister makes $85 hourly on the computer. She has been fired from work for 6 months but last month her paycheck was $16158 just working on the computer for a few hours. Read more here .....  http://lazyCash9.com

lakecity55's picture

Man I thought we were free from these idiot spammers here!

ADMIN! Please delete this spammer. If she's making 85$/hr on the computer, she's on Skype with an object up her twat.


Ghordius's picture

another Englishman (and member of the European Parliament) praising the beauty of having a small currency that can be devalued at will? nice, but quite quaint... how much has the british pound lost in value up to now? let's see how the UK is going to export it's way to growth...

hehehe... their fisheries emptied! hello? remember how icelandic fishers rammed british warships to keep the brits out of their waters? quite rich that a brit is turning the argument the other way round - the UK is pushing since long to find an "EU" solution to those pesky icelandic fisheries...

GeneMarchbanks's picture

This is only to show how well the psy-ops operation of MSM misinformation can lead people to believe something that isn't true.

It's funny how Hannan has no thoughts on why the krona can't be viable and the Icelanders are looking for alternatives.

kridkrid's picture

The dollar... if I'm not mistaken.... only the one with some sort of bird on it.  http://www.youtube.com/watch?v=5yTwD7U_XV4

dumbfounded's picture

Why can't it be viable ? Honest question btw.

StychoKiller's picture

Apparently, pumice and pickled herring are not good stores of value...

pslater's picture

Ghordius, I think you miss the 'money creation' point.  If the banks create money at will for the purpose of impoverishing individuals and whole countries, why not tell the banks to f#$k off?  If the banks are stupid enough to loan Iceland 1,200% of their GDP, shouldn't the banks pay the price for their stupidity?  This (for the most part) wasn't some widow and orphan's money that Iceland defaulted on, it was an ocean of artificial capital created by the banks for the sole purpose of transferring your net worth to them.  For reference, check out the 'gold standard'.

Ghordius's picture

I am not missing the huge money creation by several countries. Still, that's standard practice for central banks - with the exception of the FED - to have other FX reserves (than gold), i.e. CB assets ready to be used to strenghten your currency in case it falls too low?

Of course the accumulation of FX reserves weakens your currency - that's what the Chinese have been doing, lately, in fact, everybody.

And you know what? At some time they will all reverse. Brace yourself...

And it was not Iceland that got the loans, it was Icelandic banks. That defaulted. And Iceland refused (rightly) to pick up the tab - against the wishes of London, btw.

Sandmann's picture

 let's see how the UK is going to export it's way to growth


It has cornered the market in repopulating the  Post-Indian-Nuclear -Attack Pakistan

gaoptimize's picture

The British don't need to export their way to growth, they just need to export non-producing consumers. bnp.org.uk suggests many ways to improve the situation.

And BTW:  The spear point in that picture is not period in form.  Better is 3rd row, 3rd column at http://www.kultofathena.com/spears.asp .

Oracle of Kypseli's picture

A country with the highest entitlements can never export its way to prosperity. Must get everyone out of government dole first.

Confundido's picture

Well Ghordius, apparently you believe that under the Euro, value would not be lost...You seem to believe that under the Euro...money is not printed? Well, $213BN in bonds purchased under the Securities Markets Programme + more than a trillion in liquidity lines + billions in USD swaps from the Fed tell me you got it wrong...

At least, in Iceland, they stopped the bleeding. In Europe, it is only starting...

Ghordius's picture

me? suggesting? the honorauble Mr. Hennan, not me! oh, yes, and arguably Mr. Tyler Durden...

of course the ECB is printing! China is printing like mad, the US is printing like mad and the ECB is doing everything it can to keep up

that's called a currency war - we are at the beginning and very often in the past they ended up nasty for small currencies

but I agree that Iceland did the right thing - which is not bailing out banks. somehow I've missed other actions

lakecity55's picture

In the Old Days, the Brits Took What They Wanted.

Now the City has the American M/I Complex in its pocket to do the dirty work.

lolmao500's picture

BURN BITCHES!!!!!!! Iceland, the new freedom loving people... America is no longer number one... Iceland is.

Bay of Pigs's picture

Go Iceland!

Bay of Pigs grandmother was 100% Icelantic....

Miss Expectations's picture

Are the remaining 33% bankers?

tiwimon's picture

Nah, likley it is their 1%'ers as a portion of the 33% and the rest of the 33% are just clueless maroons - guess they have those the world over huh?


/who in their right mind would possibly want to be in a dead currency (wait, am I too early on the dead part? Sorry about that, thought they knew... )

Rubbish's picture

No freedom down the toilet for me. Just carbs, can't afford meat and veggies.

DarthVaderMentor's picture

Anyone know of any true pure Icelandic investment opportunities?I think ivestments there might be pretty stable and safe now.

Gully Foyle's picture


I thought there was a move toward tapping their geothermal energy. And didn't they offer a save data haven to everyone in the world sick of demineering intrusive governments?

So, probably energy and servers.

Oh and don't like 99% of Icelanders believe in Fairies? Not the Tom Cruise kind either.

pods's picture

I would rather believe in fairies than the notion that our monetary system is for our benefit.



zuuma's picture


They don't believe in fairies, per-se.

Actualy, they beleive in Body Thetans. That's where Tom Cruise comes in.

Printfaster's picture


Is that where the Zero Hedge symbol comes from? Is Tyler a Thetan?


Uchtdorf's picture

Thetans? Is that like a male Thespian?

neidermeyer's picture

I can't speak to investments but they have a great need for foreign men , they actually have an Iceland specific iPhone app that connects to geneology.com or ancestry.com and tells you how far apart (generationally) you are from that hot chick at the bar... They also have a custom that you don't marry until after your gf gives birth! I can find an investment opportunity/need to fill once I get there.

Archduke's picture

Kudos to iceland

kridkrid's picture

schadenfreude - please don't take it from me... it's all I have left.

The Count's picture

Iceland is of no importance to the NWO. But I can assure you that if any of the EU countries tried a stunt like this the politicians would face ENORMOUS pressure to play along... Whatever happened to the Finns and their promise to say no to futher Greek bailouts? Hmm, dead silence.

I think even here most do not realize that the banking cartel has the power to topple entire governtments (don't believe that? who is running Italy now?), have people assasinated and worse.

francis_sawyer's picture

So does this mean that Iceland has just been declared an "Ask us of eevul" state?

dark pools of soros's picture

....and the snakes will slither back in under darkness   -  probably DSK's next assignment after all the public flogging

zerotohero's picture

I was just in Iceland for a 2 day stop over - these people are very strong willed and have alot of pride. They are making the right choices and staying united in there decision to do the right thing and expect nothing from anyone else - they will succeed.

kridkrid's picture

It's a country of 300k, give or take.  There are approximately 100 us cities/urban areas that have larger populations than Iceland.  I say this not to dismiss anything, really.  In fact, perhaps all economic hubs should have their own currency... or not...or maybe we should have more compeition with respect to money... and more choice.  

dark pools of soros's picture

isn't Iceland the capital of Eskimo or something?

kridkrid's picture

I have a neighbor who is from Iceland.  I'll ask her.  When someone tells me that they are from Canada, I always like to ask, "where's that"?  After the awkward pause I'll add, isn't that in Minnesota or Wisconsin or something.  

TMT's picture

Within a state, cities should compete for business and residents.  With a country, states should compete much the same way.  The federal government should be a footnote.  That's how real economies work.  Unfortunately we don't have a real economy - we have a top down centrally planned corrupt system that is collapsing under its own weight.

WestVillageIdiot's picture

Isn't that what The War of Northern Aggression was all about? 

Mercantilism, bitchez.

Chump's picture

No it's not; things are going really well.  We're seeing organic growth and strong demand, and fundamentals are not only turning around, they're increasingly trending upward.*

*Whenever I compile all the reasons why our economy should already be dead, I get nothing but triple digit DOW gains and story after story from the "media" about the quickening recovery.  Maybe if I'm contrarian, the S will finally HTF.  If we see a flash crash or three in the next month or so feel free to thank me.

Likstane's picture

By not sarking, and admitting your contrarianistic causality, your responsibilty towards a continued non-fundamental increase in rehypothecated allocations only increases my misunderstanding of stated recovery hypothesis.


Chump's picture

Don't worry, I'll tell you when I spend my life savings on 50 shares of AAPL.  Then it's time to bug the hell out.

BobPaulson's picture

Ha, competition! Name one person on the global financial scene that really believes in competition. The oligarchs and plutarchs that run this little green ball pretend to favour competition as a trick to get countries to forfeit their sovereignty.

Only labour has to compete for nickels and dimes. Access to trillions of dollars and captial markets is obtained by arm twisting behind closed doors at the highest level. The Opium Wars were prescient of all trade that would come a century later after the nation state was rendered irrelevant.

The true genius of it is how they have brainwashed the suckers of the world to vote for it or not vote at all. The puppeteers know the one technology they must control is the science of psychology.

Sandmann's picture

The eloquent Englishman  .......raised in Peru

bobola's picture

March 2, 2012 / ICELAND;  Applied for full membership: July 2009

Negotiations started: July 2010

The EU has opened accession talks with Iceland.

But Iceland's progress is threatened by a dispute over mackerel fishing.

Iceland objects to the EU and Norway taking more than 90% of the total allowable catch recommended by scientists. Iceland has increased its 2011 quota unilaterally by nearly 17,000 tonnes.

The European Commission is now considering an EU-wide ban on the sale of mackerel caught by Iceland.

Another sensitive area is financial reform, with Iceland still reeling from the collapse of its major banks in 2008.

In two referendums Icelanders have rejected compensation deals struck by their government with the UK and the Netherlands over savings lost by investors in the collapsed Icesave online bank.

The UK and Dutch governments want Iceland to reimburse the estimated 4bn euros (£3.4bn; $5.3bn) that they paid as compensation to Icesave investors. The dispute will delay Iceland's EU bid unless it is resolved.

According to Iceland's President, Olafur Ragnar Grimsson, assets from the collapsed bank Landsbanki will cover what is owed.

The European Commission says Iceland is already deeply integrated with the EU - it applies about two-thirds of EU laws - so it has less distance to cover than other applicants. But the EU is not offering any "shortcut".

Iceland is in the Schengen zone, meaning its people enjoy passport-free travel to many European countries. Iceland also applies many of the EU's single market rules.

The North Atlantic island, home to just 320,000 people, will not join unless Icelanders support it in a referendum. That could be held in late 2011 or early 2012, officials say.

The Icelandic krona has plummeted in value, but many Icelanders may still prefer to keep it. The fallout from Europe's debt crisis means the euro has lost some of its lustre since 2009.

Some Icelanders think they would be better off outside the EU, fearing the impact of EU regulations on their traditional fisheries and whaling.

Iceland's independence from continental Europe has provided fertile ground for Eurosceptics, and recent opinion polls suggest a strong "no" camp.

Icelandic membership would give the EU a more significant role in the Arctic - a region rich in untapped energy and mineral resources.


AlaricBalth's picture

Iceland has quickly restored confidence to their financial system by tracking down and prosecuting the bankers who were responsible for the Icelandic economic collapse. The Special Prosecutor in Iceland has arrested top executives from their largest banks and have also seized assets. Over 200 bank senior executives have been listed as suspects in an ongoing investigation. The Central Bank of Iceland is also being audited and is under criminal investigation. 

Meanwhile here in the U.S., Dept of Justice probes have led to zero arrests against financial executives. Their excuse has been that the burden of proof is too high and that it would be better to handle any financial misconduct through civil courts, via the SEC. Civilly, the standard for burden of proof is lower. Our federal law enforcement agencies are nothing but private protection details for the TBTF bankers.

CheapBastard's picture

Aye, “…Icelanders are a shrewd and canny people with wisdom bred in the bone…”


Aye, it be trueth….they are Cheap Bastards also, if I may sayeth.

amarshall's picture

Iceland doesn't want to join the euro because they don't want European fishing boats with access to their groundfish stocks.  Iceland's economy is run by fish.  They don't want to share those fish.