Bloomberg: “While the IMF loans to Hungary and Ukraine make up less than 20 percent of those countries’ gross domestic products, Iceland needs loans worth more than its entire GDP to repay debts built up through five years of economic boom.”
The oddest part is that one of the Icelanders interviewed in the story brags that he has participated in five protests over the past month. Instead of holding your breath for political changes that won’t occur, what about getting a job?
If protesting equated to increased wealth then the French would be titans of finance. Argentina would be a safe-haven for long-term bond investors. Organizers from MoveOn would top the Forbes rich list. And South Korea wouldn’t be on the cusp of insolvency (there are between 50-100 riot buses permanently located here in downtown Seoul due to the insatiable appetite to protest over the latest rumor circulating on CyWorld).
Be sure to check out Portfolio’s new slide show on worthless money. Since mass protesting didn’t reverse the monetary policy in those countries then the Icelandic krona could eventually be added to the list.