Friðrik Hansen Guðmundsson

Föstudagur, 5. mars 2010

Can we get The Treaty of Versailles, please?

The interest rates in the Treaty of Versailles signed 28. June 1919 was 2,5% to 5,0%. This is lower than in the Treaty of Icesave. In the Treaty of Icesave the interest rates are 5,55%.

I call it the “Treaty of Icesave” because the first “Letter of Understanding” was signed when British Terrorist Laws were in full action acting against Iceland. British Terrorist Laws were used to freeze the assets of two of the largest banks in Iceland, coursing the collapse of the rest of the bank system in Iceland and 50% devaluation of the local currency in October 2008. Terrorist Laws were also used to freeze the assets of the Central Bank of Iceland and to freeze the assets of the Icelandic Minister of Finance.

This meant that all the Gold and Foreign Currency Reserve the Icelandic state owned and had stored for decades in a bank in London, these assets were frozen in the hands of the British when Iceland signed the first “Letter of understanding” about Icesave. Because of the state assets were all frozen in London there was at that time, in Iceland, talk about shortages of foreign currency to pay for imported food, medicine and fuel. Iceland economic status was in ruin after this Births Terrorist Law attack against the nation. Iceland had already surrounded and pledged for mercy and to get access to its Foreign Currency Reserve. This was the situation when Iceland signed the ground laying documents for „The Treaty of Icesave”. The scale of the financial damage in Iceland caused by this British Terrorist Law attack was similar as if Britain had sent the Royal Air Force to Iceland and their bombers had leveled half of Reykjavik to the ground.

In The Treaty of Versailles the total sum of war reparations demanded from Germany after killing 4,6 million people and ruined most of North and East Europe, was around 226 billion Reichsmarks. In 1921, it was reduced to 132 billion Reichsmark ($33.0 billion, £6.6 billion). With inflation adjustment it is roughly equivalent to $400 billion US Dollars as of 2007 (Wikipedia). The year 1919 there lived 58,5 million people inside the border of Germany. According to the Treaty of Versailles every person in German had to pay 6.800 USD or 4.700 euro per person, (inflation adjusted to 2007). This was a sum that many economists deemed to be excessive because it would have taken Germany until 1988 to pay. Germany, under the control of Adolf Hitler, stopped these payments.

According to an article written by Dr. Jon Danielsson at London School of Economics, published 17. January 2010, he informs that the total amount Iceland is expected to guaranty because of Icesave is about 4,0 billion euro. If everything goes according to those now running the bankrupt bank, Landsbanki, it is expected that 88% of this amount will come from the bank. The rest is expected to come from the taxpayers of Iceland. With 5,55% interests over these 14 years and taking into account all the special aspects of the Treaty of Icesave, Dr. Jon Danielsson estimates that taxpayers of Iceland will in the end pay a total of 1,6 billion euro. This means Icelanders have to pay, with interest, 8.800 euro per person.

What kind of people force a contract upon a nation that puts twice the amount of the war reparations put on Germany, according the Treaty of Versailles, upon today’s modern citizens?
How can it be that an international bank registered on the Stock Market in Copenhagen can cause the people in that country where it has its home base, such a burden that each person in that country is doomed to pay twice the amount every person in Germany had to pay after 8,5 million dead and 21 million wounded in the First World War?
Is there a court in this world that would have the nerve to sentence a natin into such a dept that every person in that nation is forced to pay in 14 years twice the amount every person in Germany was sentence to pay after the First World War?
And what about the responsibility of those who put their money in to a foreign net bank that offered the highest interest rates ever seen in Europe from the end of the Second World War?

These people took a calculated risk trying to earn lots of money. Now it is demanded that the farmers and fishermen of Iceland shall pay what these risk takers and gamblers lost.

Why should fishermen and farmers in Iceland pay what these people lost? These farmers and fishermen they did not take any calculated risk. They never even knew they were responsible and should guarantee these savings.

No nation should accept this kind of in judgment.