Questions & Answers
How did it all begin?
During an interview on BBC Radio on the morning of October 8th. Chancellor Alistair Darling manoeuvred away from the difficulties of the British government by claiming that the Icelandic government had no intention of honouring their obligations in the UK. The Icelandic government refuted the claim as completely false, but the story was out and the Brown government spin machine went into overdrive.
Why did the British Government use anti-terrorist legislation against Icelanders?
Because no financial laws would have permitted the draconian action which, although it was aimed particularly at one bank, is in effect having a devastating effect on nearly all Icelandic companies and destroying the Icelandic economy at a critical time.
Did the British government really define Icelanders as terrorists?
On Wednesday October 8th, the British Government invoked the Anti-terrorism, Crime and Security Act of 2001 against the Icelandic bank Landsbanki, the Central Bank of Iceland and the Government of Iceland in the United Kingdom. This action was in effect directed against the people of Iceland. As a result of this action, Landsbanki was placed on a list of regimes subjected to financial sanctions by the British government, joining Al-Qaida, the Taliban, Belarus, Iran, North Korea, Sudan, and 10 other organisations or countries known for political unrest or oppressive dictatorships. Two weeks later, eight hours after we launched our campaign, HM Treasury updated its website, moving Landsbanki into a curious new category of regimes subjected to financial sanctions. These changes to the Treasury website are merely cosmetic. The financial transactions of Icelandic companies are still effectively frozen in the United Kingdom and in most other places of the world, primarily as a result of the actions of Prime Minister Brown and Chancellor Darling.
What does the British government have to gain from its actions against Iceland?
Gordon Brown and Alistair Darling have received short term political gains by creating an enemy and then claiming to be the champions in the fight against that enemy. No matter that they chose to use one of Europe’s smallest countries at its weakest moment to show their “strength”. It is worth mentioning that similar situations had previously arisen in regard to American banks in the UK without Brown or Darling lifting a finger. When one Icelandic bank fell the whole nation was made to suffer.
Is Iceland bankrupt?
No. Iceland has considerable resources and will not default on its obligations. However, the erroneous claim made by the British Prime Minister that the country was in fact bankrupt has devastated Icelandic interest all over the world. The Prime Minister’s unusually abusive rhetoric about the country has in fact instigated a run on nearly all Icelandic companies and the equivalent of the short selling of an entire country (this from the man who emphasises international co-operation in fighting the world wide credit crisis).
What is the impact on Iceland and Icelanders?
The words and actions of Gordon Brown and Alistair Darling have turned a grave economic situation and part-nationalisation of two banks into a national disaster. Icelandic companies all over the world have been chastised, Icelandic people have been harassed abroad, students have been forced to abandon their studies, Icelandic pension funds have lost a great deal of their assets and imports of everything from food to pharmaceuticals to Iceland has been restricted.
What is the impact in the United Kingdom?
The destructive effects of the government’s actions have already bankrupted a number of British companies with Icelandic connections and put over 100,000 UK jobs in danger. The British pound fell as news of the action caused concern about a lack of political restraint in Great Britain. The likelihood of runs on British banks has also become a real concern, endangering the banking system.
Did Icelanders overspend?
Like most other western nations, household debt in Iceland has grown fast in recent years. Unlike other nations, Icelanders spent much of their savings abroad, particularly in the UK. This had much to do with a long lasting admiration of the UK in Iceland.
What do the citizens of Iceland have to do with Icesave?
Nothing, they have lost more money than anyone else, many have lost their life savings. Nevertheless the whole nation has been made to suffer even more as a result of the British government’s actions.
Will depositers with Icesave reclaim their money?
Economists have pointed out that the bank had more than enough assets to reimburse all deposits and could have gone a long way towards repaying other creditors. Brown and Darling’s actions are however fast obliterating the assets that would have funded the repayments.