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How to survive a crisis the Ron Paul way - A Hopeful Interview of the Icelandic President

There truly is hope for this world. Ron Paul is doing his stuff in the US and Iceland is showing how to deal with the economic crises. This little country actually did what Ron Paul has been advising for decades!

Here is a link to a recent CBC interview with the president of Iceland, about his country's response to the economic crisis that is plaguing governments around the world

Instead of cutting social programs and handing billions of dollars the banks and the rich guys who caused the problem, Iceland let them fail and did what it could to help the average person make it through. They did this against some very heavy threats from bigger countries. They valued democracy above finance and have achieved an enviable stability.

This is an eye-opening and inspiring interview that proves Ron Paul is right not only in theory but in reality as well. (To skip the introductory seasonal drivel, drag the little button to the 9th minute.)


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Iceland implemented a Post

Iceland implemented a Post Keynesian strategy. I doubt Ron Paul approves.

Telling the bankers to go...

...pound sand and defaulting à la Iceland sounds nice. But Iceland's solution is not our solution.

As long as we have the Fed/fiat money/income tax/manipulated rates/monopoly money system, defaulting on a national scale à la Iceland will be like plugging a hole on one side of the bucket, while everything pours out an even bigger hole on the other side. Defaulting will just be rearranging the deck chairs on the Titanic. We must deal with the Fed/fiat money/income tax/manipulated rates/monopoly money system.

President Grímsson asks if democracy is more important than financial markets. Democracy is two wolves and a sheep voting on what's for dinner. Perhaps democracy is a priority for Europe. For America, it's not about democracy. It's about the right to life, liberty and property. Our property, the fruits of our labor, is stolen by a corrupt system.

Keeping the fruits of one's labor requires honest money. Dr Paul's support for honest money will lay the foundation for us to keep the fruits of our labor.

“None are so hopelessly enslaved as those who falsely believe they are free.” – Goethe

it was a good experiment

kudos to the president for directly going to the people and over-riding the parliament.
these too big to fail companies live on paranoia, that if they go down, everything we know will fall apart.
same goes for military industrial complex - they survive on fear and hate mongering. they say they need to be fed taxpayer dollars other wise all our enemies will attack us.

Dr.Ron Paul's 2002 Predictions

The President Bypassed Parliament with a Plebiscite

The argument made was that the interests of "democracy" should override "finance".

The expression of this was the President's overriding Parliament's desire to bail out the banks and going straight to the people in a plebiscite.

Direct democracy supported the free market solution of letting the big banks fail.

This doesn't fit many ideological scripts.

If you read nothing else, read this: A Contract Between Americans

Agreed. This is an

Agreed. This is an interesting overlap in the ven diagrams of populism and free market thought - being against banker bailouts. It's the same limited overlap between Tea Party and Occupy folks.
The interesting thing is that the system and associated special interests have so much momentum that they are willing to ignore the democratic sentiment. I think this has a lot to do with why Ron Paul has such a unique opening this time around and why this is singularly unique moment in history.
There is a huge cognitive dissonance for those liberals that have put their faith in government, embodied in the perfect progressive candidate Obama, to do the "will of the people" and he goes the other way!
Simultaneously, there's this huge cognitive dissonance on the conservative side as they watched their conservative champions "abandon free market principles to save the free market".
The only ones this all makes sense to are libertarians and Austrian economists represented by Dr. Paul. No cognitive dissonance here!
That ability to resolve the dissonance is one big reason why once people "get it", they don't switch back, and why we may be at an enormous turning point in our history.
God, this is an exciting time to be alive and paying attention!

If you recall,

in some of the interviews Dr. Paul gave when he spoke against the bailouts, he would bring up how America did nothing during the 1920 collapse and allowed businesses and banks to fail. The result was that people went back to work and we recovered in a year. A few times he was asked for an example in more recent history where a recovery has occurred; now he has one.

Austrian economists often note how government intervention in the market through regulation or inflation causes both human and financial capital to be misallocated. Jump to minute 31:15 in this clip and listen to the president discuss how they discovered that the banks had become high tech companies instead of traditional banks. He goes on to tell how when these banks went under their high tech talent were hired by high tech companies which previously had high growth potential but could not afford to hire them.

This reminds me of Bastiat's essay "What Is Seen and What Is Not Seen." We see the people that are employed by the banks in the financial sector. What he do not see is how they could have been otherwise employed in the high tech sector.

(Btw, thanks for posting this great interview!)

You are welcome!

I think this is a great example that we should all be studying and spreading far and wide.

No surprise the establishment and their media is not telling us about it.

Very interesting listen,

Very interesting listen, thank you.
I too see differences between Ron Paul's approach and what Iceland did, but everything about the result compared with our own actions and the EU confirms what Dr. Paul has been saying.
The Icelandic President says that this came down to a fundamental decision between democracy and the market - which he describes as having failed. He seems to use "market" as a word for "financial markets" as opposed to the "free market". I would guess that Iceland, like all the other countries, has many flawed banking regulations and special privileges that would not exist in a truly free market and that these contributed to a systemic collapse.
In other words, I suspect that Dr. Paul and the President of Iceland would disagree somewhat on the cause of the collapse, but nonetheless Iceland managed to select a cure much like what the good Dr. would have recommended.
It is interesting that this decision on the part of Iceland resulted from a principled decision to listen to the people rather than the financial "experts". The common sense of the people is loud and clear on bailouts - it was here too at the time - and our politicians decided to ignore it and thought they were smarter.
This is why economic education is such an important objective for us all and such a terrific side effect of Paul's campaign.

ytc's picture

Yes, our common sense voice against bailouts was and

is ignored & suppressed SO effectively in USA. This voice of 99% of people, who are forced to finance these bailouts, cannot be muted forever. . .

Not exactly Ron Paul

I wouldn't say that Iceland did exactly what RP has advocated. They did allow their big banks to fail, but they still have a central bank. I lived in Iceland for 18 months. They have a pretty socialist society.

Free market economy works

but the MSM will have us believe that we can only get our of debt, by taking more debt from private banksters !!

Dr.Ron Paul's 2002 Predictions

psnow's picture

Thank you!!

Thank you Lars for posting this incredibly important interview. This is truly the most relevant topic of our time and speaks volumes about what this country and the whole western world is up against.
So, will our Representative Democracy prevail? Or will we succumb to the fraudulent international banking system and become eternal debt slaves to their system? Yes, its that big folks. Will we wake up in time? Last I looked our own representatives didn't give a damn what 'we the people' wanted. (tarp anyone?)
I understand Iceland has also issued arrest warrants for the perpetrators of these crimes.


"I just want to live in a free country" - Dr. Ron Paul

Everyone Should See This

Everyone Should See This Documentary.............Inside Job is a 2010 documentary film about the late-2000s financial crisis directed by Charles H. Ferguson.

There Is A Super Big Difference In Iceland They Have A Republic System Where The People Vote If I'm Right I Think 96% Of Iceland People Vote Against The Bailout....Banks.

Maybe RON PAUL Should Mention About The Documentary Movie: Inside Job 2010

The president has an interesting view of what the free market is

He somehow seems to think that the free market means you bailout the banks and democracy means letting it fail. I wonder where that view comes from. If that was how I thought the free market works I'd be against it as well. Any ideas where this view comes from?

Billy Jack's picture

My God - this interview is

My God - this interview is like Gold. Not only does it explain the entire 2008 financial crisis and what is going on today in Europe and here, but it implicitly proves that the US media is nothing more than the "TASS" of the International Bankers - how else to explain that ICELAND, which was THE MAJOR WORLD Story of 2009, has NEVER been reported on by our mainstream press?

Cos Cob, CT

Iceland went "off script"...

...you know, that one that says "BAIL OUT THE BANKS OR WE ALL DIE!!!". So the MSM had to (figuratively) sweep this story under the rug like the dirt(y truth) that it is.

Or less conspiratorially, Iceland going down and no one knows how bad it will be == big story; Iceland recovering == boring; spreading critical lesson about how letting banks fail is not actually so bad == not our [MSM's] job. Go watch Bloomberg for that. (It has been covered to some extent on financial channels. It's just the MSM isn't going to pound this reality into the public's heads to the extent that it needs to be -- they all have their biases and I suspect most of those biases are not even prepared to really accept this reality, despite the evidence.)

meanwhile, back at the OP...

This really is a great interview. It raises some questions about "democracy" vs. "financial markets" which I think would be excellent debate fodder here in the USA, particularly as long as we have Austrian economists present. :-)

What is begun in anger, ends in shame.

Screw Iceland...you know why...

...it is because they allow the Slaughter of WHALES...these people in Iceland, Denmark and Japan have the same thing going; that is they all Slaughter Whales. Nice People, huh?

Yeah, I'm one of those do-gooders.

fearless brave joyful peaceful loving grateful, compassionate

Bigger fish to fry...(pun intended)

Bigger fish to fry...(pun intended)

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

One has nothing to do with the other.

Washington, Jefferson and Madison were all slave holders.
Adams, as President, jailed people for criticizing him.
Franklin was a sex pervert, a frequenter of the infamous Hellfire Club. Without these men there would be no United States of America, US Constitution or Declaration of Independence. Do you reject that, too?

In the words of Cheech and Chong..

Save the whale's...but club all the seals.




"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

at least Iceland doesn't slaughter


What is begun in anger, ends in shame.

That's almost like people

That's almost like people from India saying "Screw the United States. They slaughter cattle", except cattle are much more numerous. I like whales too but are they a source of food for the people of Iceland? Who are we to tell them whether they should fish for whales? In the economic disaster they went through, I can see them saying "Screw everyone else. We have to take care of ourselves" and I respect that. But they did go through an economic collapse couple of years ago similar to where we are heading (except we are on a much larger scale). They didn't accept Eurozone help and they implemented Paul's policies on allowing the correction to occur. I haven't listened to the interview yet but am eager to hear what he had to say.

And Denmark do no whaling at all.

What kind of comment is that???

Iceland implemented Ron Paul's economic policies and they are now out of the woods as the only Western country.

Please listen to the speech, it is very informative and supportive of Ron Paul's policies.

Good for Iceland...

that is for supporting Ron Paul. Yet I do not support Iceland for the reason that they slaughter Whales. Most people have no idea the importance of Whales and their support to this Earth Planet.

Also, it is sad that my original comment has disappeared from this discussion.

fearless brave joyful peaceful loving grateful, compassionate

reedr3v's picture

I think we have to start with humanity

learning it is not ok to murder their own species. If we can convince people to accept the nonaggression principle in dealing with humans, it should be an easier step to extend humane behavior to whales. But if most humans believe it's fine to use violence against those humans they want to control, they will never become enlightened and motivated enough to find ways of feeding themselves without slaughter of even intelligent animals such as whales.

Do your homework

In the United States, whaling is carried out by nine different indigenous Alaskan communities.

And that's bad Mo Jo for the US

Nothing good will ever come from killing Whales.

fearless brave joyful peaceful loving grateful, compassionate

Of course it does. People are

Of course it does. People are fed from whales like any other fishery. Whales are animals, it's not immoral to kill them as long as it's a sustainable harvest.