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But what are we really doing and should we be so pessimistic?
We are deciding that we are not going to pay the external debts of "people of disorder".
Why do you say "people of disorder"?
People who can't pay their debts are reffered to as "people of disorder".That I learned from my grandmother.
We are not going to pay others debts.
We are not going to pay the debts of the banks that have acted somewhat heedless.
What am I saying by this? Previously people believed that the Icelandic system,
the Icelandic government and Icelandic taxpayers would try to pay all the debts of the Icelandic banks.
When the debts have become that way that the Icelandic banks need
€50 to €55 billion on the period of the next three to four years
and they can't provide that money because markets are closed.
Then we would be placing our children and grandchildren into so much dept
that it would be slavery for the sake of others. Now people realize quickly, it takes time
that we go the same way as the Americans did e.g. with Washinton Mutual;
They say: Those who lent money in all sorts of ventures that did not withstand in the end.
Maybe they were good if everything had gone very well and no problems would have occured in the world.
Those who lent this money, lent this money to profit, nothing wrong with that.
They have to be stuck with that, but not main street.
How can it be, just so people realize, because this hasn't been cleared and that's why everybody is so nervous.
Now after this has happened, to two banks we still have a government that doesn't have external debts.
We have somewhat increased our internal debts, but tose debts can presumably dissappear in time
because people are laying tose debts in to good institutions.
Although the goverment wasn't indebted we were very indebted as a nation.
The national debts were high. These debts are now going rapidly down.
As soon as people realize the situation
that Iceland isn't in any danger. Iceland is not going to let down their obligations.
Iceland's treasury will never default, on the contrary it's position is strengthening.
As soon as people realize that, then the valuation of the credit rating agencies, it will take some time,
on Iceland will rise, the CDs rates on the government go down with surprisingly rapid speed
and then the currency rate will strengthen, people are still thinking we are in trouble.
We are taking this, a little harsh decision
to say; "We are not going to pay the external debts of the banks".