In August 2008 I was fortunate to spend two weeks holiday in Iceland, a country small in population but large in cultural tradition, where volcanoes, glaciers and the strength of its waterfalls have created a landscape of outstanding natural beauty. While preparing for the trip, I devoured all the information that fell into my hands and everything I read was wonderful.
This nation of Viking origin, halfway between Europe and America, had happened in 50 years as a poor country, who survived by fishing, to lead the rankings of the Human Development Index of the UN and its system CONOMIC, social and education was a global standard.
The trip had a profound and fifteen days I knew very little, while taking into account the cost of living, tiny big car circulating in Reykjavik, and a beer in a bar cost six Euros, and was fine. But the most shocking surprise, I had already in Barcelona, three weeks after returning from Reykjavik:
Iceland was bankrupt. The Icelandic kroner was devalued by 400%, the UK and Holland claims interposed against the country to collect the debt caused by the banks and the government pleaded with aid from the IMF and loans from Russia to save the furniture.
“The country was plunged in just three weeks? Obviously, the answer was “No”. From that moment I began to follow the news and inform Icelandic. As explained in a concise and accurate documentary Inside Job, the country began to sink eleven years ago, at exactly the same moment that began the main phase of economic growth and became a power.
In the early 90′s, with David Dodson as prime minister of Iceland, the country followed in the wake of Reagan and Thatcher neoliberal. In 2000, Iceland began to deregulate its banking system. With the support and participation of business groups, the top three country’s banks (Glitzier, Kaupthing and Landsbanki) began to engage in high-risk financial transactions. Geri Hared, who in 2006 succeeded Dodson, boasted worldwide for its great management and health of the Icelandic economy, while they were piling up an outrageous debt of € 100,000, ten times the GDP of Iceland. In September 2008, the bubble burst and the Icelandic government had to respond by banks.