Posted on 02/02/2016 1:12:10 PM PST by Lorianne
Iceland is drawing up plans to tax foreigners who buy its bonds or to remove certain interest privileges to keep from being overwhelmed by a flood of money drawn by the highest interest rates in western Europe.
The country is about to start the tricky process of removing the capital controls that have been in place since what the central bank governor, Mar Gudmundsson, calls "the third biggest bankruptcy in the history of mankind".
With its economy recovering and interest rates at 5.75 percent compared with virtually zero in the rest of Europe, concern is growing about a destabilizing rush of cash coming in.
"The conditions are good for lifting capital controls - they have never been better," Gudmundsson said in an interview with Reuters. "A current account surplus, high level of reserves, a fiscal surplus and, hopefully, inflation that is still not too high."
(Excerpt) Read more at reuters.com ...
They did it right. Other countries should really follow.
“Too big to fail” —NOBODY permitted this in Iceland.
They took their medicine and let their irresponsible bankers fail.
LOOK AT THEM NOW and ponder what’s in store for US.
What I mean is WHO CARES what Iceland does? [Besides those from Iceland and Icelandic ancestry]
True.
It's especially true, I suppose, for itty-bitty banks in itty bitty countries. Their krona isn't like the Euro or dollar. One keeps a few of them just for keepsakes...if one should visit Iceland.
“They did it right. Other countries should really follow.”
Other countries aren’t as homogeneous as they are and have already been captured by foreign financial interests. Like ours?
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