Nobel economics laureate Edmund Phelps and Iceland say no to the European Union

Congratulations to Prime Minister-elect Sigmundur Gunnlaugsson of Iceland for the wise decision not to join the European Union! Perhaps the Icelanders were influenced by Nobel Economics Laureate Edmund Phelps's sound views on the future of the  EU:  

NOBEL Laureate Edmund Phelps warned yesterday against the dangers of European Union membership as Iceland became the latest nation to question the sense of affiliation with a bloc mired in economic crisis.

Iceland's new government said on Wednesday it will halt its EU bid and drop the previous coalition's goal of euro adoption.

Prime Minister-elect Sigmundur Gunnlaugsson, whose Progressives won last month's vote together with the Independence Party, said he doesn't want to join a bloc in crisis as his own economy recovers.

According to Mr Phelps, the decision is likely to spare Iceland many of the risks plaguing the EU. "We're still learning about the European experiment and to what extent it's going to succeed," Phelps (79) said in a telephone interview. "The possibility is not foreclosed that the experiment is going to prove unworkable, unsuccessful."

The appeal the EU once held to nations seeking economic stability and access to free trade is crumbling as the region fails to emerge from its crisis.

The UK is now openly questioning its allegiance with the EU while other members like Denmark have distanced themselves from the goal of euro adoption to protect their economies. Iceland, which in 2008 became the first nation to succumb to the global financial crisis, now enjoys faster economic growth than the EU average.

"I can't believe that anybody's serious about joining the EU right now," Mr Phelps said. "It's like saying: 'It's a beautiful house – it happens to be on fire at the moment – we should buy it!'"

Mr Phelps, who won the Nobel Economics Prize in 2006 for his theories on the interplay between inflation expectations and unemployment, questions the future of the euro, and the larger EU, after three years of debt crisis have left five nations relying on bailouts.

Read the entire article here

Iceland was able to recover from financial collapse because it is outside of the EU

The president Iceland does not see any reason for his country to join the European Union:

Iceland’s revival from its financial collapse and the prosperity of nations outside the European Union show that membership in the bloc isn’t needed to achieve economic success, President Olafur R. Grimsson said.

“There are a few countries in the world which have succeeded the way Switzerland has,” he said today in an interview in Davos, Switzerland. “And then look at Norway and my country, Iceland, which has recovered from a financial crisis more effectively than Europe. So it’s difficult to argue the case that you have to be in the EU to be successful.”

As the EU battles to rescue the 17-nation euro region from the debt crisis, Iceland has recovered from its financial collapse in 2008, leading the country’s 320,000 citizens to question the logic of joining. 

Read the entire interview here

The president was rather diplomatic in the interview. He could have said, that if Iceland had been a member of the European Union, it would NOT have been able to recover. 

How to pretend you are "discussing" human rights with a high Chinese visitor

We are told that Chinese premier Wen Jiabao - currently visiting Iceland - has had "in-depth discussions about human rights" with the island state´s president Olafur R. Grimsson:

“I didn’t discuss the matter of Bo Xilai in particular with him as I didn’t want to discuss specific individuals,” Grimsson said in an interview outside his residence at Bessastadir. “We did have in-depth discussions about human rights and the possibility of cooperation between China and Iceland in that field, where China could utilize Iceland’s experience and knowledge in the field of human rights.”

The Chinese leader “expressed interest in building up a dialogue between the two countries on human rights,” Grimsson said. “It’s important to bring about such cooperation, where Icelandic specialists in social rights and the representatives of human rights organizations and other humanitarian organizations can participate in our cooperation with China. The premier said that China would applaud such cooperation with Iceland and with the Icelandic academic society.”

Wen’s bodyguards pushed and blocked a Bloomberg News reporter yesterday when questions related to Bo’s detainment were asked following the meeting with Grimsson.

The Icelandic president here used the same formula as all other Western leaders when meeting China´s leaders:


In order to be able to answer media questions about China´s repression of human rights, pretend that you have had a serious or "in-depth" exchange of views on human rights, and that your Chinese counterpart has shown real interest in the issue. 

This formula is foolproof, because the media will never be able to find out that there was no serious "discussion". 


The usual talk about setting up academic and other "expert" meetings is also part of the smoke screen tactics. These meetings, which always happen behind closed doors, are just another way of pretending to act on human rights.


The real reason for Grimsson´s meeting with Jiabao was, of course, this: 

For Iceland, the visit is a chance to deepen ties with China and speed efforts to emerge from its 2008 economic collapse when its three largest banks defaulted. Iceland is seeking to revive its $13 billion economy by returning to the industries it once relied on including tourism and clean energy.


Read the entire article here

The Chinese - as Wen Jiabao now in Iceland - willingly participate in this role play with masks, fully aware of he fact that the script, involving western beggars, is only a farce.