Allister Heath

Iceland sees the first anti-bailout revolt


SOMEONE should give Gordon Brown a copy of John Maynard Keynes’ The Economic Consequences of the Peace. Published in 1919, it addressed post-war Germany – but the book is uncannily relevant to the situation in today’s Iceland, explaining how crippling reparations enforced by powerful foreign nations on an unwilling population are counter-productive. Iceland – unlike Weimar Germany – won’t turn to extremism, though an eventual descent into national bankruptcy and hyperinflation is a real possibility, with Fitch yesterday downgrading the country’s debt to junk.

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