The Financial War Against Iceland By Prof Michael Hudson

[rjwjr]

Re: The Financial War Against Iceland By Prof Michael Hudson

Interesting article in the New Yorker


The American Revolution was in big part debt repudiation.

George Washington and Thomas Jefferson were massively in debt to British creditors.

I believe this to be a misleading or misinterpreted statement. We did not go to war in order to repudiate the debts of our Founding Fathers. Washington's debts were paid in full by 1773 and I'm pretty sure most of Jefferson's debt's were incurred after indepence was secured.

It is my understanding that we went to war for independence primarily for religious freedom and to be able to manage our own affairs with a political structure (that was deemed more representative and fair than the British monarchy at the time) as summarized most notably in the phrase "no taxation without respresentation."

But, I'm not a dedicated historian, just an interested self-educator.

[rjwjr]

Re: The Financial War Against Iceland By Prof Michael Hudson

I believe this to be a misleading or misinterpreted statement. We did not go to war in order to repudiate the debts of our Founding Fathers. Washington's debts were paid in full by 1773 and I'm pretty sure most of Jefferson's debt's were incurred after indepence was secured.

It is my understanding that we went to war for independence primarily for religious freedom and to be able to manage our own affairs with a political structure (that was deemed more representative and fair than the British monarchy at the time) as summarized most notably in the phrase "no taxation without respresentation."

But, I'm not a dedicated historian, just an interested self-educator.

I was wrong about the timing of Jefferson's debts, but the debts still don't look to be the primary reason for the war for independence. Here's the Wikipedia version...

Jefferson's trouble began when his father-in-law died, and he and his brothers-in-law quickly divided the estate before its debts were settled. It made each of them liable for the whole amount due – which turned out to be more than they expected.
Jefferson sold land before the American Revolution to pay off the debts, but by the time he received payment, the paper money was worthless amid the skyrocketing inflation of the war years. Cornwallis ravaged Jefferson's plantation during the war, and British creditors resumed their collection efforts when the conflict ended. Jefferson suffered another financial setback when he co-signed notes for a relative who reneged on debts in the financial Panic of 1819. Only Jefferson's public stature prevented creditors from seizing Monticello and selling it out from under him during his lifetime.

It looks as if Jefferson had the means to pay his debts in full, until a little thing like a massive currency devaluation got in the way.

[Thailandnotes]

Re: The Financial War Against Iceland By Prof Michael Hudson

I was wrong about the timing of Jefferson's debts, but the debts still don't look to be the primary reason for the war for independence.

Not fair of me to paraphrase an article without a link. (subscription to the New Yorker required)

And I should have written that "debt repudiation was a part" as opposed to a "big part."
I suppose debt repudiation is part of the mix in why many wars are fought.

Anyway, it's a good article on how society's ideas about debt have changed in the last 300 years.

[rjwjr]

Re: The Financial War Against Iceland By Prof Michael Hudson

Not fair of me to paraphrase an article without a link. (subscription to the New Yorker required)

And I should have written that "debt repudiation was a part" as opposed to a "big part."
I suppose debt repudiation is part of the mix in why many wars are fought.

Anyway, it's a good article on how society's ideas about debt have changed in the last 300 years.

No worries. I just tend to get a little defensive toward the reputation of the Founding Fathers, Declaration of Independence, Constitution, etc. Much the same way you might get defensive if I were to slam Buddha, or spicey food.

(Just joking with you, no disrespect intended.)

[cobben]

Iceland fights back: "Eva Joly Signs Agreement with Iceland's Government to Investigate banks"

Eva Joly Signs Agreement with Iceland's Government to Investigate Banks' Collapse
30.3.2009

http://www.iceland.org/info/news/features/nr/6887

"Judge and investigator Eva Joly has signed a special agreement with Iceland’s government to assist the special prosecutor in investigating the banks’ collapse. The agreement was announced at a press conference attended by Mme Joly, Minister of Justice Ragna Árnadóttir and Ólafur Þ. Hauksson, appointed Special Prosecutor investigating the Icelandic banks’ collapse.

The Minister of Justice also gave an account of the agreement concluded by the cabinet to provide additional financing for the Special Prosecutor’s investigation. She explained that the cost of assistance from foreign experts could amount to up to ISK 70 million on an annual basis and that the Office of the Special Prosecutor would be able to hire a staff of up to 16 persons, should it prove necessary. The total cost of the Office was estimated to be ISK 250-270 million over a 12-month period.

Ólafur Þ. Hauksson stated that currently six specialists worked in the office and he expected additional experts to be hired in the coming days. The supplementary financing would mean that as many as 20 people could be working on the investigation later this year, if foreign experts are included. This was clearly a major tasks, demanding extensive and specialised work. He added that it was a major boost for the Office to enjoy the assistance of Eva Joly and experts provided by her.

Eva Joly herself expressed real pleasure at being able to offer her assistance to the investigation. Under the agreement, she herself will work on the investigation four days each month. Her contribution, and that of experts assisting on her behalf, will include, for instance, advice on handling cross-border legal queries, as well as advice on relations with foreign experts in various fields, such as auditors for analysis of accounting documents and financial statements, plus research on ownership links and in tracing the trail of capital between states and banking institutions. She was optimistic that the background and events could be effectively uncovered and brought to light, but pointed out that this could take time.

Well known for her fight against corruption in France, and elsewhere in Europe as well, Eva Joly is regarded as a leading expert in the struggle against international corruption."

[Guest]

Re: The Financial War Against Iceland By Prof Michael Hudson

RJWJR -

Just for clarification, Thailandnotes is an American expatriate (and a lot of Thai food is not spicy).

No worries. I just tend to get a little defensive toward the reputation of the Founding Fathers, Declaration of Independence, Constitution, etc. Much the same way you might get defensive if I were to slam Buddha, or spicey food.

(Just joking with you, no disrespect intended.)