Monday, October 19, 2009

Iceland in the Canadian Fold

A renewal of an earlier offer.

Iceland's financial deep freeze has rendered its banks incapable of meeting international obligations, and its reserves unable to cover demand for cash withdrawals. Three of the nation's biggest banks have collapsed racking up debts 16 times the nation's economic production.

A decade ago, the banks were sold to private investors. Is the collapse any surprise? The stock market has lost 97 per cent of its value since September 2008. McDonald's hamburger joints have fled the island. Another economic implosion is feared. The situation gets worse, but the point is made.

The question remains: Why should Icelandic taxpayers be held responsible for the failure of high-risk investments made by private corporations? Another question: In the absence of criminal action by these corporations, why should there be compensation at all?

There is but one solution to Iceland's problem. The banks must renege on all foreign obligations, absolutely and totally. The nation must declare bankruptcy.

Iceland must forget about joining the European Union. Europe which  is on the path of self-destruction. The island nation need only look west, and apply for provincial status in Canada. We can readily absorb its 300,000 inhabitants constituting less than one per cent of our population. We will have a debt-free province, a stepping stone to Europe, and another spectacular place to visit within our boundaries.

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