[Marxism] A near-riot and parliament besieged: Iceland boiling mad at credit crunch

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A near-riot and parliament besieged: Iceland  boiling mad at credit crunch


by Omar Valdimarsson

<_http://www.globalresearch.ca/index.php?context=va&aid=11155_ 
(http://www.globalresearch.ca/index.php?context=va&aid=11155) >     
_Global  Research_ (http://www.globalresearch.ca/) , November 25, 2008
The Scotesman 

 

Thousands of Icelanders have demonstrated in Reykjavik to  demand the 
resignation of Prime Minister Geir Haarde and Central Bank governor  David Oddsson, 
for failing to stop the country's financial meltdown. It was the  latest in a 
series of protests in the capital since October's banking collapse  crippled 
the island's economy. At least five people were injured and Hordur  Torfason, a 
well-known singer in Iceland and the main organiser of the  protests, stated 
that the protests would continue until the government  stepped down. 
As crowds gathered in the drizzle before the Althing, the  Icelandic 
parliament, on Saturday, Mr Torfason said: "They don't have our trust  and they are no 
longer legitimate." 
The value of the Icelandic krona has been cut in half since  January. 
Four Nordic countries, as well as the International Monetary  Fund (IMF), 
have pledged to lend the country a combined $4.6 billion to help  revive its 
deflated economy. The loan would be the first by the IMF to a Western  nation 
since 1976. 
One young man climbed on to the balcony of the Althing  building, where the 
president appears upon inauguration and on Iceland's  national day, and hung a 
banner reading: "Iceland for Sale: $2,100,000,000" –  the amount of the loan 
the country is getting from the IMF. 
A separate group of 200-300 people gathered in front of the  city's main 
police station, throwing eggs and demanding the release of a young  protester 
being held there. 
Police in riot gear used pepper spray to drive back an attempt  to free the 
protester during which several windows at the police station were  shattered. 
The pro-tester was later released after his fine was paid. 
As daylight began to wane, demonstrators drifted away into the  nearby coffee 
shops. Here, as currency tumbles, the price of a cup of coffee has  shot up 
by about one-third since before the crisis struck. 
The demonstrators accuse the government – elected last year –  of not doing 
enough to regulate the banking industry and have called for early  elections. 
Iceland's next election is not required until 2011. 
Opposition parties tabled a no-confidence motion in the  government on Friday 
over its handling of the crisis, but the motion carries  little chance of 
toppling the ruling coalition which has a solid parliamentary  majority. 
Gudrun Jonsdottir, a 36-year-old office worker, said: "I've  just had enough 
of this whole thing. I don't trust the government, I don't trust  the banks, I 
don't trust the political parties, and I don't trust the IMF. 
"We had a good country and they ruined it." 
BACKGROUND 
ICELAND'S three biggest banks – Kaupthing, Landsbanki and  Glitnir – 
collapsed under the weight of billions of dollars of debts accumulated  in an 
aggressive overseas expansion, shattering the country's currency.  Iceland's 
government seized control of all three institutions in early  October. 
This week, the North Atlantic island nation, which has a  population of only 
320,000, secured a package of more than US$10 billion (about  £6.7 billion) in 
loans from the International Monetary Fund (IMF) and several  European 
countries to help it rebuild its shattered financial system. 
Despite the intervention, however, Iceland still faces a sharp  economic 
slowdown and surging job losses while at least one-third of Icelanders  are also 
at risk of losing their homes and life savings. 
Geir Haarde, the Icelandic prime minister, has promised that  the government 
will use the IMF money to bring back a flexible interest rate  scheme and 
rewrite financial laws, particularly legislation relating to  insolvency. 
Iceland was the first country to ask the IMF for help as the  turmoil in the 
credit markets in October hit home. 
The UK government used anti-terrorism legislation to freeze  money deposited 
by UK savers in Icelandic banks in order to ensure that their  money was 
protected. 

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