Friday, December 26, 2008

Ordinary Icelanders in spirit of revolt over bank mania

A spirit of rebellion has slowly enveloped Iceland, reinforced by every new horror story about the financial crisis. "What responsibility to you feel over the fact that my debts have quadrupled, although I make my repayments on time and haven't taken out any new loans?" asked one ordinary citizen of Prime Minister Geir Haarde this week in front of 2,000 listeners.

"Somehow, everyone is responsible," the premier answered meekly. He added that his responsibility will have to be clarified before an independent "truth commission."

According to publicist Oskar Gudmundsson, "the way our government here is being brought to account is reminiscent of a Chinese people's court in the Cultural Revolution" - albeit a very polite "people's court."

Polite or not, the 320,000 citizens of the northern Atlantic island have been in a state of constant shock ever since the collapse of all three of Reykjavik's leading banks in October.

That shock was compounded by inflation that has climbed toward 20 per cent and a national currency, the krona, that has lost so much value that some see it on par with the nearly worthless currency used in Soviet-bloc countries during the Cold War.

"Iceland is sinking and no one knows when we'll reach dry land," said Andri Snaer Magnason, a spokesman for the fast-growing protest movement.

It is absolutely exceptional, given the country's tiny population, that almost 10,000 people are now arriving every Saturday to protest in front of the Icelandic parliament, the Althing. Single mothers, who suddenly have to cope with 100-per-cent rent hikes, stand shoulder- to- shoulder with prosperous-looking middle-class Icelanders facing the abyss due to credit pressures for their new apartments and cars.

"We are the people," is their mantra, displayed on placards as they stand under wintry and dark Icelandic skies.

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