Iceland’s referendum result is to be expected. To an already bankrupt country to decide the referendum of whether they should pay back the money, there is only one result: no. This is consistent with the characteristics of human selfishness. Less than 10% of people think that they should also pay back Britain and France money.
Iceland’s referendum is a not a good example. Facing the debt crisis is not just Iceland a country. If Greece, Portugal and Spain all have also decided to come to a referendum, they will have the same predictable results. If everyone decides not to pay back the money, then where is the credit and good faith in this society? In fact, the French and the British could come to a referendum. Then the result is also very easy to guess: Icelanders shall pay back the money. Thus, Iceland’s referendum is totally unprecedented.
Of course, ordinary Icelanders who cast a vote against repayment also have a very good reason: Why should the burden be on each of Icelanders to clean up the mess left by greedy bankers? If you want your money back, you should ask the bankers? But, the banks went bankrupt a long time ago. The government and the country have to work together to repay their debt. In December last year, Iceland’s Parliament passed a repayment with period of 15 years, the former 7 years without repayment agreement, but the agreement was again a dummy. The president Grimsson had a veto power and rejected it. Therefore, the solution to the problem eventually entered the referendum process.
For the British and the French people, despite their governments’ first advance their own network of Icelandic bank Icesave deposit of money, how can Icelanders just say no and not pay their debt? Their government’s money no matter what is still their own money. Today, Iceland has refused to repay for high-sounding reasons, so creditors would be very difficult to get justice. However, it is not impossible. The key is a bargaining process, as well as when the Icelanders would like to rebuild its international image.
However, if the bargaining process is too long, and the re-rating agencies lower Iceland’s ratings, the international community to provide Iceland’s aid may be delayed in place. From this point, Iceland will further drag themselves into the abyss of economic collapse.
Not too long ago, Icelanders still fully enjoy the idyllic life of northern Europe. The vigorous development of the financial industry once made Icelanders proud. Had served as the capital of Iceland, Reykjavik harbor have streets that are full of luxury cars, upon rows and rows of financial buildings everywhere. The Icelandic krona is now almost impossible to use outside the country. The unemployment rate is rising to 6.7 percent. Last year’s gross domestic product declined by 6.5 percent, marking the biggest decline since in history.
In fact, the ordinary Icelanders do not have to complain about the catastrophic consequences of bankers. At least, most Icelanders also enjoy the benefits of the development of the financial industry. No matter Icelanders decided to pay back the money or not to pay back the money, each Icelanders will be paying the price. They may have to re-pick up fishing gears that have been long discarded, or to sell the yacht in exchange for fishing boats. Because, without good faith and credit, who would come to do business with Iceland?