The votes are coming in, Iceland tells international bankers to piss off

[DJ13]

Early results: Iceland voters reject debt deal

Saturday March 6, 2010, 7:49 pm

REYKJAVIK, Iceland (AP) -- Still furious over the crippling aftermath of the global financial crisis, Iceland's voters on Saturday resoundingly rejected a $5.3 billion plan to pay off Britain and the Netherlands for debts spawned by the collapse of an Icelandic Internet bank, according to initial results.

Results returned from around 83,500 ballots -- or more than 40 percent of the total ballots expected -- counted so far showed that 93 percent of voters said "no" in the referendum, compared to just 1.5 percent who said "yes." The rest were invalid ballots.

Icelanders were deciding whether to back a plan outlining the payment of $3.5 billion to Britain and $1.8 billion to the Netherlands as compensation for funds that those governments paid to around 340,000 of their citizens who had accounts with the collapsed bank Icesave, an Icelandic Internet bank that offered high interest rates before it failed along with its parent, Landsbanki.

Many voters object to the tough terms of the deal imposed by the debtor countries, not the idea of payment itself.

<snip>
The deal would require each person to pay around $135 a month for eight years -- the equivalent of a quarter of an average four-member family's salary.

http://finance.yahoo.com/news/Early-results-Iceland-voters-apf-4185401720.html?x=0&sec=topStories&pos=main&asset=&ccode=

[HeresyLives]

1. Here

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4296575

[AllentownJake]

2. Globalism is about to die a very quick death nt.

[HeresyLives]

6. LOL nonsense

[AllentownJake]

7. We'll see how all these republics and dictatorships react in the world

At the end of the day, they got to face their own people, and I highly doubt our leaders are about to go out into public and explain, yes we fucked up.

When the deflationary debt explosion that statistically has to occur sometime in the next 2 years, goes boom.

My guess is nationalism and war when resources are no longer freely exchanged using our about to be defunct financial system.

We are short on liquid fossil fuel, but got a lot of uranium and farm land.

[HeresyLives]

8. Which has nothing to do with globalization.

[AllentownJake]

9. I believe you need a medium of exchange for trade

I highly doubt debt based fiat currencies are going to be flowing between computers when the computers explode from the fiat currencies going nuts.

[HeresyLives]

10. We have a new world currency waiting in the wings.

[AllentownJake]

11. Yeah good luck selling that in this country

A pretty sizable portion of your population has a superstition about that, that ends up with them facing eternal damnation for using it.

[HeresyLives]

12. Don't worry, you'll go for it

[AllentownJake]

14. I want to add

That one of places with a particularly high concentration of people that have that superstition, are the ones we entrust with the really big guns.

[HeresyLives]

15. Reserve currency is the only one accepted globally

So Americans won't have any choice....and they can disabuse themselves of the notion they can bomb the world.

[AllentownJake]

16. I think a civil war an utter destruction are more likely than a world currency

being accepted in the United States.

[HeresyLives]

17. You can use any currency you want within your country,

but a new reserve currency will be used for all global trade, so there won't be any choice.

If Americans want to have a civil war about that, the world won't intervene.

[RB TexLa]

3. Why would britan and the Netherlands pay for lost deposits in Iceland?

[JCMach1]

22. Private Icelandic banks offering accounts to people outside of Iceland...

[RB TexLa]

23. Excatly. If I deposit money in a bank outside of the US I'm not expecting the US government to pay

me if the bank fails.

[JCMach1]

24. I think that was the point that the Icelanders wanted to make!

However it is a bit more complicated as Icesave was operating on the net.

[Warren Stupidity]

25. Actually the issue is why should Iceland pay anyone more than

Iceland covers in deposit insurance? Iceland covers only up to a certain limit (20,000 Eu), and the proposed compensation went far beyond that amount. The UK and Netherlands cover 50-100 Eu for individuals, and are demanding that Iceland make good at those levels plus it appears also cover institutional deposits, which technically aren't covered at all, plus interest payments at a rather high rate to for the period of time covering the payback. The end result is a staggering debt load on a very small country that is currently in economic collapse.

[RB TexLa]

That's what I was getting at. Why would the other countries pay anything, it's an Iceland bank

I wouldn't expect the US to pay me anything for deposits I lost overseas.

[Warren Stupidity]

31. Because there was a 'passport agreement'

in force where foreign banks are covered under the local depositor insurance program. What is in question is does that arrangement require Iceland's deposit insurance program to meet foreign standards, does it require Iceland to pay off uncovered institutional deposits, and are the terms (with something like 5% interest) even remotely fair?

Meanwhile the banksters who were using Iceland to front their scheme got rich and owe nothing. Par for the course.

[dkf]

4. Other countries should not let icelandic banks lend in their countries.

All deposits will be held for icelanders. Anybody else gets ripped off.

[tsuki]

5. Since IceSave execs were based in the UK, why won't the UK allow

extradition to Iceland?

[Greyhound]

13. So why are the people of Iceland on the hook for losses incurred

by a http://en.wikipedia.org/wiki/Landsbanki">private bank?

[AllentownJake]

18. Don't know

Why is the Federal Reserve buying toxic waste financial assets at an undisclosed price and after they stop, why is Freddie going to be continuing it.

[AllentownJake]

19. Somehow Iceland is doing better than we are

Their unemployment is 9% as opposed to our 9.7%

:shrug:

[JackRiddler]

20. Bravo! Now it's Greece's turn to fight the beast.

[earth mom]

21. Go Iceland-tell those god damn bankers to shove it! nt

[Joe Chi Minh]

26. Imagine. The naksters seem to have shot themselves in the foot (and the arms),

through their greed. For once they're taking the hit, and not Joe Public.

[muriel_volestrangler]

29. No; it's either the Icelandic government, or the British and Dutch governments, who will pay

and which, and how much, will depend on how the Landsbanki assets are divided up in the bankruptcy settlement - see http://bjarnimax.blog.is/blog/bjarnimax/entry/1003708 . Under one proposal, the Icelandic guarantee gets covered fully, and so the Icelandic government (and thus taxpayer) only pays what interest (if any) is agreed for the loan while the assets are realised. That would mean the assets cover slightly less of the repayments the British and Dutch governments made to savers, so their taxpayers would pay a bit more. Under another proposal, only perhaps 88% of the Icelandic guarantee is covered by the assets, and so Iceland has to pay the other 12%. The British and Dutch governments would then get a bit more of the assets to cover the repayments the made, so their taxpayers would pay a little less.

So Joe Public will pay; it's a question of which Joe Public and how much, that's all.

[Joe Chi Minh]

37. I suppose so. Make that 'know'.

[Greyhound]

27. Iceland and Greece could well spark a global revolution against the central banking system.

If that happens the shit will hit it hard and the splatter will be everywhere.
:kick:

[lovuian]

34. We will be next

watch ....

[JVS]

28. Cool

[anonymous171]

30. I wish we could do that here. nt

[KILL THE WISE ONE]

32. good for them -

makes me want a trailer house in the woods with a large garden.

[lovuian]

33. greece will tell them to piss off too

the people are NOT going to pay for it

only the rich will

[amborin]

35. k and r

[Kievan Rus]

36. Good for Iceland