How To Lose Your Sovereignty

As people may have heard, Iceland is bearing the brunt of the global depression. Unfortunately for the Icelandic people, a population of only 320,000, their banking sector which was nine times the value of their GDP, had fallen into the same easy credit policies as the rest of the western world. When the threat of insolvency loomed, the central bank couldn't bail them out because of how small their bank is compared to the mountain of bad debt acquired by the big three Icelandic financial institutions. To make a long story short, after a serious devaluation of their currency, a plunge in the stock market, and the acquiring of a series of loans from the IMF, Russia, Norway, Sweden, and even the Faroe Islands (that has to be emasculating), we arrive at the point where Iceland is willing to join the European Union and adopt the euro as their currency. Many fear that this is the beginning of their loss of sovereignty, and rightly so. It's the easy way out. Rather than taking their licks for their own financial excesses, they are willing to sell their independence for a quick end to their problems.

Iceland pressed to join euro

By Andrew Ward in Stuttgart

Published: September 3 2009 02:00 | Last updated: September 3 2009 02:00

Joining the euro offers the only “durable solution” to Iceland’s economic problems but the country’s bid to enter the European Union would be a complicated process, according to the Organisation for Economic Co-operation and Development...

Read the article HERE.