EU, IMF Revolt: Greece, Iceland, Latvia May Lead the Way

Iceland, Latvia and Greece are all in a position to call the bluff of the IMF and EU. In an October 1 article called "Latvia - the Insanity Continues," Marshall Auerback maintained that Latvia's debt problem could be fixed over a weekend, by a list of measures including (1) not answering the phone when foreign creditors call the government; (2) declaring the banks insolvent, converting their external debt to equity, and having them reopen with full deposit insurance guaranteed in local currency; and (3) offering "a local currency minimum wage job that includes healthcare to anyone willing and able to work as was done in Argentina after the Kirchner regime repudiated the IMF's toxic package of debt repayment."

Issuing and lending currency is the sovereign right of governments, and it is a right that small European countries lose when they join the EU. Argentina is a large country with more resources than Iceland, Latvia or Greece, but new technologies are now available that could make even small countries self-sufficient.

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