In Defence of Marxism

Iceland and Ireland had some of the highest GDP rates in Europe over a 15 year boom: so-called “Nordic and Celtic tigers.” Both diversified into software, biotechnology and financial services, and a property boom, but Iceland built up a trade deficit of 16% of GDP in 2007 (U.S was 5%, Spain 10%); all unsustainable. Now the boom`s over, Iceland faces a currency collapse and attacks by speculators, as the Krona has lost 36% against the Euro in 2008 alone (April), inflation is over 5%, housing`s unsold, central bank interest rates are over 15%, and private debt is astronomical. The problems were confounded because the big banks were privatised in 2003. “No man is an island,” there`s no escape; we welcome the Icelandic working class to the realities of the capitalist globalised economy!

Based on El Pais report, 27.4.08