After reading reader comments under various articles about the financial crisis between Iceland and England specifically I see the need to publish this to help with clearing up some serious misunderstandings about the involvement of the Icelandic government and the Icelandic public.

"Pay up or shut up". This is a direct quote from a part of a comment/message to Icelanders. The truth is that the money that was in the Icesave accounts is not in Iceland. The money was loaned to British and possibly other European businesses.

It seems to be a common misunderstanding that Icelandic banks or even the government is storing this money and refuses to give it back. The money is still in UK assets, possibly devalued beyond repair by the banking crisis. What Icelanders are saying is that the British government only made matters worse with their words and actions.

Terrorist law misused or not? Iceland did not have specific laws that allowed the government to intervene by overtaking the banks. So the laws were passed as quickly as possible but through the parliament as it should and with the proper temperance it provides. The government then had the legal tools to go in and protect public interests. The British government could have done the same thing but instead they used legislation intended to deal with terrorist states. This has had serious consequences for the Icelandic public by giving false and misleading information to the British public.

Priorities. The IMF and the Icelandic government are trying to figure out a way to solve the current crisis. From what we hear the IMF has set as one of it's conditions that Iceland and the British government solve their differences. The British government demands that the Icelandic government pay Icesave depositors their deposits up front, therefore making the Icelandic public responsible. They want the assets of Landsbanki in England to be used to pay other Landsbanki debts such as to UK banks and other such entities. The Icelandic government says the Landsbanki assets are to be used to pay the depositors first, if more is needed Iceland will fulfil it's obligations by law of paying the remaining up to a specific amount. Iceland's reputation has now been tarnished beyond repair in the UK by Landsbanki and the British PM and FM have made matters even worse with untimely words and actions. We have nothing more to loose in that regard. Why should we be willing to sink us and coming generations in debt to save banking institutions in the UK and elsewhere? This is the choice we are presented with. Take on a debt the size of the collective salary of every one in the nation for one full year or be shunned from the western family of nations. Sounds fair huh?

What is the truth in this matter? What is the British government trying to do? Protect the depositors money or protect other interests? Who will gain from their plan working out? We know who will loose if they get their way. This is not a case of Icelandic public vs depositors, it's a case of Icelandic public vs certain banks that made bad loan decisions. They did not loan the Icelandic public. No, they loaned Landsbanki who planed to make money by loaning to UK businesses. That is where the money went. Don't come to us for you money, look closer to home.

This is from Eirikur Bergman in an article on the guardian.co.uk website:

"Let's look at some facts, shall we? The high-flying, globetrotting business elite that came out of Iceland and started spreading borrowed money all over the UK and Europe has very little to do with the ordinary working public in Iceland. However, for some peculiar reason, the UK media thinks it is all our fault. It seems to me that you have fallen for a cruel and calculated PR stunt by Brown, whose only mission with his destructive attack on the Icelandic public was to save his miserable political life for another day. For that, the people of Iceland are paying severely." Read the article here.

Please visit the following websites for further clarification:

Are Icelanders terrorists?

Iceland and the hazards of internet accounts

My Darling Brown 

Iceland: Britain's unlikely new enemy