Thread: Iceland's government collapses

Iceland's government collapses


Global Research, January 26, 2009
Al-Jazeera


Geir Haarde, Iceland's prime minister, has announced that his coalition government has fallen apart under the pressures of the country's financial crisis and that he would hand in his resignation to the president.

"I really regret that we could not continue with this coalition. I believe that that would have been the best result," Haarde said on Monday.

Haarde's government, a coalition between his Independence party and the Social Democratic Alliance, has been under pressure since the global financial crisis hit Iceland in October.

On Friday, the prime minister had called early national elections for May 9, revealing that he would not seek a new term because of a malignant throat tumour.

On Sunday, Bjorgvin Sigurdsson, Iceland's minister of commerce, resigned over his part in causing the economic crisis.

Sigurdsson, a member of the Social Democrat Alliance, said: "I have decided to do this to take responsibility. I realised last night that for me, at least, there is no
going back."

http://www.globalresearch.ca/index.php? ... &aid=12022

When are our KINGS AND QUEENS going to resign?

Well if things don't get on track and they don't get their heads out of the sand our government will collapse....although a fresh start would be nice.

Originally Posted by April

Well if things don't get on track and they don't get their heads out of the sand our government will collapse....although a fresh start would be nice.

I agree.....on both counts. The collapse AND the fresh start April.

My biggest fear, however, is that the only way we'll get a fresh start is via extremely unpleasant circumstances that none of us are going to like very much in the process.

I just hope I can get my kids somewhat out of harm's way before it all comes apart around here.

When I first saw this, I blew it off as an article with an overblown title, yeah, maybe the prime minister is on his way out, or maybe they were just having some slight political problems.

Well, on Fox news, they are showing rioting in the streets, fires, apparently the people are thoroughly angered.

According to one article I pulled up, just in 2007 they were considered at least the most wealthy nation in the EU, maybe even in the Western Hemisphere.

From BBC today:Timeline: Iceland economic crisis

Iceland's economic difficulties became evident in the autumn of 2008 as conditions tightened in the global credit market.
Icelandic banks owed around six times the country's total Gross Domestic Product (GDP) and when the world's credit markets dried up, they were left unable to refinance loans.

Below is a timeline of events that have led the government to resign:

29 September 2008 - The Icelandic government takes a 75% stake of the country's third-largest bank, Glitnir, after it faces short-term funding problems.

6 October - Trading in Iceland's six biggest financial shares is suspended on the OMX Nordic Exchange Iceland. The government offers an unlimited guarantee for all savers and Iceland's parliament, the Althing, passes emergency legislation enabling the government to intervene extensively in Iceland's financial system.

7 October - Iceland's government takes control of the country's second and third largest banks, Landsbanki and Glitnir.


8 October - Iceland takes control of its biggest bank, Kaupthing, in the wake of the British government's decision to invoke anti-terrorism legislation to freeze the bank's UK-based assets.

9 October - Icelandic Prime Minister Geir Haarde criticises the UK government, saying that he was upset and shocked that it had invoked "hostile" anti-terrorism legislation to freeze Icelandic banks' assets in the UK.

10 October - UK Prime Minister Gordon Brown condemns Iceland's handling of the collapse of its banks and its failure to guarantee British savers' deposits. He says its policies were "effectively illegal" and "completely unacceptable".

15 October - Iceland's central bank cuts the country's interest rate by 3.5% from a record high of 15.5%. A UK-based law firm is hired by the Icelandic government to prepare a lawsuit against the British authorities.


17 October - The amount of UK taxpayers' money in failed Icelandic banks edges close to £1bn.

20 October - Iceland's financial authorities formally announce the establishment of new Glitnir, Landsbanki and Kaupthing banks.

28 October - Iceland's central bank raises its key interest rate to 18% from 12%.

20 November - The International Monetary Fund approves a $2.1bn (£1.4bn) loan for Iceland. Iceland becomes the first Western European nation to get an IMF loan since the UK in 1976.

26 November - The annual rate of inflation in Iceland escalates to a record high of 17.1%.

16 December - Prime Minister Haarde tells the BBC he is preparing legal action against the UK over the collapse of the bank, Kaupthing.

18 December - The International Monetary Fund (IMF) says Iceland has taken the first important steps towards restoring financial stability. It says the key objective of stabilising Iceland's currency, the krona, is being met.


20 January 2009 - The Icelandic finance ministry says the economy is forecast to shrink by 9.6% in 2009 and see no growth in 2010.

21 January - Protesters angry at the economic crisis surround Prime Minister Haarde's car, banging on its windows and pelting it with eggs.

23 January - Prime Minister Haarde calls a general election for 9 May, two years early, adding that he will not stand again because of throat cancer.

26 January - Prime Minister Haarde announces the immediate resignation of the government, following the breakdown of talks with his coalition partner, the Social Democratic Alliance.

What a mess....

If "we" can't learn from these mistakes, then we too can be in this very same position.

Originally Posted by azwreath

Originally Posted by April

Well if things don't get on track and they don't get their heads out of the sand our government will collapse....although a fresh start would be nice.

I agree.....on both counts. The collapse AND the fresh start April.

My biggest fear, however, is that the only way we'll get a fresh start is via extremely unpleasant circumstances that none of us are going to like very much in the process.

I just hope I can get my kids somewhat out of harm's way before it all comes apart around here.

That is what I find unsettling as well, the unpleasant circumstances, but at this point everything has been put in motion by these greedy idiots and we have no choice but to see where the ride leads. God save America!! God save us all!!!