WHY IS ICELAND NOW THE ”SUNKEN LAND”?
The global financial crisis that has rocked the
entire world, especially America and the more developed countries of
Europe, has had a particular impact on Iceland, causing the country to
collapse financially. Some sections of the press have described Iceland
as a “sunken land,” while others have stated that the crisis has
“swallowed” Iceland up. But why is it that Iceland in particular has
come to the brink of bankruptcy while the crisis has affected the whole
world?
The reason for the global financial crisis is that
because of their dependence on the interest system, people invested
heavily in banks, for which reason there is no buying and selling,
production or money flow in the market. But what made Iceland special in
this collapse is the relatively high interest rates offered by
Icelandic banks. Investors from other countries, particularly Britain,
chose Icelandic banks because of the high interest rates on offer, but
the banks were unable to keep their promises.
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