Iceland refused to bailout its banks. They let them go bankrupt.
They also kept control of their currency, which allowed them to deal with the crisis at home rather than be told by the European Central Bank what to do.
Iceland comes out of the crisis relatively quickly because they did not interfere. They are writing off the debt. It took a lot of "principle" to let the banks fail. And the government listened to the people, what a novel idea...
Relating back to Dr Paul - he frequently mentions the depression of 1921 that only lasted a year because the government did not interfere (compared to 29'). He also speaks about presently writing off the trillions of dollars the Fed generated out of thin air.
For the most part this is what Iceland did. It doesn't come out in this report.
"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo
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