OWS: Kitchenware Revolution! One Man Protest! How Iceland Economy Recovered! Lessons For The World!

Hördur Torfason at the second weekly protest,
on the 18 October 2008

Iceland's Economic Recovery A Lesson  for Portugal, Greece, Ireland, Spain, Italy, European Union, USA...
Iceland's Economic Recovery A Lesson for the World on how to handle financial difficulties.

2009 Icelandic financial crisis protests

The 2009 Icelandic financial crisis protests, also referred to as the Kitchenware Revolution occurred in the wake of the Icelandic financial crisis. There had been sporadic protests since October 2008 against the Icelandic government's handling of the financial crisis. The protests intensified on 20 January 2009 with thousands of people showing up to protest at the parliament (Althing) in Reykjavik.

Iceland's parliament is not elected according to the "one person, one vote" principal, with conservative rural areas receiving considerably more representation per person than the main cities.

Protesters were calling for the resignation of government officials, and for new elections to be held. The protests stopped for the most part with the resignation of the old right-wing government. A new left-wing government has been formed after elections in late April.

How All Began

Hördur Torfason Staged a One Man Protest

Concerned with the state of the Icelandic economy, Hördur Torfason staged a one man protest in October 2008. Torfason stood "out on Austurvöllur with an open microphone and invited people to speak". The following Saturday a more organised demonstration occurred, and participants established the Raddir fólksins. The group decided to stage a rally every Saturday until the government stepped down. Torfason led the protest from a stage near the front.

Some of the 6000 protesters in front of the Alþingishús,
seat of the Icelandic parliament, on 15 November 2008

On 20 January 2009, the protests intensified into riots. Between 1,000 and 2,000 people clashed with riot police, who used pepper spray and batons, around the building of the parliament (Althing), with at least 20 people being arrested and 20 more needing medical attention for exposure to pepper spray. Demonstrators banged pots and honked horns to disrupt the year's first meeting of Prime Minister Geir Haarde and the Althing. Some broke windows of the parliament house, threw skyr and snowballs at the building, and threw smoke bombs into its backyard. The use of pots and pans saw the local press refer to the event as the "Kitchenware Revolution".

Iceland Protests 20 January 2009

On 21 January 2009, the protests continued in Reykjavík, where the Prime Minister's car was pelted with snowballs, eggs, and cans by demonstrators demanding his resignation. Government buildings were surrounded by a crowd of at least 3,000 people, pelting them with paint and eggs, and the crowd then moved towards the Althing where one demonstrator climbed the walls and put up a sign that read "Treason due to recklessness is still treason." No arrests were reported.

On 22 January 2009, police used tear gas to disperse people on Austurvöllur (the square in front of the Althing), the first such use since the 1949 anti-NATO protest. Around 2,000 protesters had surrounded the building since the day before and they hurled fireworks, shoes, toilet paper, rocks, and paving stones at the building and its police guard. Reykjavik police chief Stefán Eiríksson said that they tried to disperse a "hard core" of a "few hundred" with pepper spray before using the tear gas. Eiríksson also commented that the protests were expected to continue, and that this represented a new situation for Iceland.

Despite the announcement on 23 January 2009 of early Parliamentary elections (to be held on 25 April 2009) and the announcement of Prime Minister Geir Haarde that he was withdrawing from politics due to esophageal cancer and would not be a candidate in those elections, protesters continued to fill the streets, calling for a new political scene and for immediate elections; Haarde announced on 26 January 2009 that he would hand in his resignation as PM shortly, after talks with the Social Democratic Alliance on keeping the government intact had failed earlier the same day.

Iceland's Economic Recovery A Lesson For Ireland from the Economist in 2010

The article in The Economist argues that Ireland could learn something from Iceland on how to handle financial difficulties.

The Economist points out, for one, that on the Misery Index (unemployment plus inflation), Iceland's level of "misery" has been steadily declining, and this year went below Ireland's, which is on its way up.

"Evidence of economic recovery in Iceland means the Irish can no longer persuade themselves that things are worse elsewhere," the article says in part. "Figures released on December 7th showed that Iceland’s GDP rose by 1.2% in the third quarter (Ireland’s third-quarter GDP rose by 0.5%, according to figures published on December 16th). The Icelandic central bank’s benchmark interest rate has fallen to 4.5%, from a peak of 18%. The halving of the dollar value of the Icelandic krona at the height of the crisis pushed inflation as high as 18.6%. It has since fallen close to the central bank’s 2.5% target. The 'misery index', a crude grading that sums unemployment and inflation rates, suggests Iceland is now doing better than Ireland (see chart)."

The reason for this, the Economist argues: letting the banks fail, and not being a part of a larger currency.

On the first point, the article says that by not pouring public money into trying to rescue its banks, Iceland saved itself revenue that would have been tied up in them. Ireland has attempted to save its banks, but has yet to see any benefit from doing so.

At the same time, the euro is no longer seen as the magic solution to economic troubles, the articles states. "When panicky investors were rushing out of small currencies in the autumn of 2008, the euro seemed a haven. There was much talk in Iceland of fast-tracked membership of the European Union and, ultimately, the euro. Two years on, the euro looks more like a trap for countries struggling to regain export competitiveness. Greece and Ireland have lost the confidence of markets, even though both issue bonds in euros. Iceland’s voters are cooler about joining the EU and the euro."

Not that either strategy is without its faults, of course. Iceland did not attempt to save its banks because it could not: the banks were several times greater than the GDP at the time of the crash. Furthermore, the article speculates that Icelanders might be more open to the euro if the economy of the EU were in better shape.

"Even so, that Iceland’s economy has done little worse than Ireland’s is still a triumph," the article concludes. "It has been tough with its creditors and disregarded some international norms—and recovered. Ireland has stood by its banks to the benefit of the wider European banking system. Its reward has been 'rescue' loans at an interest rate that makes it hard to fix its finances. The next Irish government may look at Iceland and decide to play hardball with Europe."

Real Democracy NOW! Greek: Declaration of Support from ICELAND Civic Movement

Iceland People Revolution: Country That Wants to Punish Bankers and Politicians Responsible for Economic Crisis Bailout's

From The Reykjavik Grapvine

Icelanders Thirst For Vengeance, Says Former Tycoon

Björgólfur Thór Björgólfsson told a Norwegian business newspaper that Icelanders in the wake of the area of "outvasion vikings" have sought vengeance against the rich. He also expressed regrets about buying Landsbanki.

In a nine-page interview in Dagens Næringsliv, RÚV reports, Björgólfur discussed his career and Iceland in general. When the subject of the crash was brought up, he had some strong words to share.

Björgólfur contends that shortly after the financial collapse, the general public wanted to strip the wealthy of all their assets. Rather than creating a "truth commission" modelled after the post-apartheid South Africa model, he says, parliament chose to be controlled by anger and take the matter to court, referring to the trial of former prime minister Geir H. Haarde.

He also said that the Special Investigative Commission report was flawed, contending that he was called a liar in the report but was never interviewed by anyone on the commission over his business practices.

He said that his reputation in the business world has been actively tarnished by the media, comparing his situation to the notorious Hafskip Case from the mid-80s - where a shipping company (owned by his father) on already shaky ground financially was supposedly put out of its misery by negative press coverage.

Björgólfur now sees himself in the same position, and claims that his damaged reputation means that he now owes some 1 trillion ISK.

When asked about some of the biggest regrets in his life, Björgólfur named purchasing Landsbanki. This, he said, he has often regretted, both before and after the financial collapse.
check also http://en.wikipedia.org/wiki/2009_Icelandic_financial_crisis_protests

RealDemocracyNOW! Greek: Declaration of Support from ICELAND Civic Movement

RealDemocracyNOW! Greece: Declaration of Support from ICELAND

The Civic Movement Iceland expresses a deep concern about the way European political leaders manipulate the state of Greek economy and the reason for its collapse.
It is our firm belief that the Greek public is not to blame for the economic meltdown in the world, and even though, Greek banks are now on the brink of collapse, they should not be saved at any cost. Other and more important issues have to be addressed first.

The majority of the so-called Greek debts are private debts, debts of private banks operating in Greece. These privately owned banks owe other privately owned banks, mainly in Germany, France and the UK. Therefore the Greek public should not be forced to underwrite these debts.
The world economy has been proven un-economic and furthermore, it has been proven disastrous for the common public.

This system of imbalance with its disastrous effects, has to come to a halt.
A society will easily function with out this system but this system will never function with out a proper and sound society. And since the society is now being torn apart for the purpose of rebuilding an unsustainable financial system, it is inevitable that both will collapse.

The Civic Movement Iceland calls for action among the leaders of the world. Viable solutions have to emerge. A sustainable and just society must prevail.
That is our debt, and that particular debt is the only debt we are willing to pay.
We owe it to our children to come.

G.Andri Skulason
Spokesman, The Civic Movement Iceland
gandri@xo.is
---

The Civic Movement is a political party in Iceland, founded by a number of grassroots movements in the lead up to the 2009 election during the Global Recession, which hit Iceland particularly hard.
In the election, the Civic Movement won 4 out of 63 seats in Althingi, the Icelandic Parliament.

The Civic Movement is no longer represented in the Althingi and is now collaborating with the Icelandic Association of Debtors and the Open Civic Forum all of whom have been working towards a reformed system and a better society, with great results.

Together we can change the world...

Gandri Skulason tel. +354 6151522
Iceland Association of Debtors

gandri@lanthegar.is
Gunnar Sigurdsson tel. +354 8977694
Open Civic Forum

gus@mmedia.is
Islandia...

Circle of 13: RealDemocracyNOW! Greece: Declaration of Suport From Iceland

http://www.peoplesassembli​es.org/2011/07/iceland-sol​idarity-to-greece-real-dem​ocracy-now/

Iceland People Revolution: Country That Wants to Punish Bankers and Politicians Responsible for Economic Crisis Bailout's

Iceland, a country that wants to punish the bankers responsible for the crisis

Since 2008 the vast majority of the Western population dream about saying "no" to the banks, but no one has dared to do so. No one except the Icelanders, who have carried out a peaceful revolution that has managed not only to overthrow a government and draft a new constitution, but also seeks to jail those responsible for the country's economic debacle.

Iceland Revolution People Peacefull ProtestsAgainst Politicians and Bankers

Peaceful protests, pots and pans and demonstrations against the banks

Pressenza Reikjavik, 3/28/11 Last week 9 people were arrested in London and Reykjavik for their possible responsibility for Iceland’s financial collapse in 2008, a deep crisis which developed into an unprecedented public reaction that is changing the country's direction.

It has been a revolution without weapons in Iceland, the country that hosts the world's oldest democracy (since 930), and whose citizens have managed to effect change by going on demonstrations and banging pots and pans. Why have the rest of the Western countries not even heard about it?

Pressure from Icelandic citizens’ has managed not only to bring down a government, but also begin the drafting of a new constitution (in process) and is seeking to put in jail those bankers responsible for the financial crisis in the country. As the saying goes, if you ask for things politely it is much easier to get them.

This quiet revolutionary process has its origins in 2008 when the Icelandic government decided to nationalise the three largest banks, Landsbanki, Kaupthing and Glitnir, whose clients were mainly British, and North and South American.

After the State took over, the official currency (krona) plummeted and the stock market suspended its activity after a 76% collapse. Iceland was becoming bankrupt and to save the situation, the International Monetary Fund (IMF) injected U.S. $ 2,100 million and the Nordic countries helped with another 2,500 million.

Great little victories of ordinary people

While banks and local and foreign authorities were desperately seeking economic solutions, the Icelandic people took to the streets and their persistent daily demonstrations outside parliament in Reykjavik prompted the resignation of the conservative Prime Minister Geir H. Haarde and his entire government.

Citizens demanded, in addition, to convene early elections, and they succeeded. In April a coalition government was elected, formed by the Social Democratic Alliance and the Left Green Movement, headed by a new Prime Minister, Jóhanna Sigurðardóttir.

Throughout 2009 the Icelandic economy continued to be in a precarious situation (at the end of the year the GDP had dropped by 7%) but, despite this, the Parliament proposed to repay the debt to Britain and the Netherlands with a payment of 3,500 million Euros, a sum to be paid every month by Icelandic families for 15 years at 5.5% interest.

The move sparked anger again in the Icelanders, who returned to the streets demanding that, at least, that decision was put to a referendum. Another big small victory for the street protests: in March 2010 that vote was held and an overwhelming 93% of the population refused to repay the debt, at least with those conditions.

This forced the creditors to rethink the deal and improve it, offering 3% interest and payment over 37 years. Not even that was enough. The current president, on seeing that Parliament approved the agreement by a narrow margin, decided last month not to approve it and to call on the Icelandic people to vote in a referendum so that they would have the last word.

The bankers are fleeing in fear

Returning to the tense situation in 2010, while the Icelanders were refusing to pay a debt incurred by financial sharks without consultation, the coalition government had launched an investigation to determine legal responsibilities for the fatal economic crisis and had already arrested several bankers and top executives closely linked to high risk operations.

Interpol, meanwhile, had issued an international arrest warrant against Sigurdur Einarsson, former president of one of the banks. This situation led scared bankers and executives to leave the country en masse.

In this context of crisis, an assembly was elected to draft a new constitution that would reflect the lessons learned and replace the current one, inspired by the Danish constitution.

To do this, instead of calling experts and politicians, Iceland decided to appeal directly to the people, after all they have sovereign power over the law. More than 500 Icelanders presented themselves as candidates to participate in this exercise in direct democracy and write a new constitution. 25 of them, without party affiliations, including lawyers, students, journalists, farmers and trade union representatives were elected.

Among other developments, this constitution will call for the protection, like no other, of freedom of information and expression in the so-called Icelandic Modern Media Initiative, in a bill that aims to make the country a safe haven for investigative journalism and freedom of information, where sources, journalists and Internet providers that host news reporting are protected.

The people, for once, will decide the future of the country while bankers and politicians witness the transformation of a nation from the sidelines.

Source: www.elconfidencial.com

Pressenza Editorial Team in Chile

translation: Silvia Swinden

Source:
http://www.pressenza.com/npermalink/icelandx-a-country-that-wants-to-punish-the-bankers-responsible-for-the-crisis