Iceland’s Hörður Torfason – How to Beat the Banksters

Alex Peitrowski, Contributor
Activist Post

The tiny Nordic European island country of Iceland is presently experiencing one of the greatest economic comebacks of all time. After the privatization of the banking sector completed in 2000, the economy was thrown into a tailspin when over a five-year period, private bankers borrowed 120 billion dollars (10 times the size of Iceland’s economy). A huge economic bubble was created, causing house prices to double, and making a small percentage of Iceland’s population rich enough to buy up overseas investments, mansions, yachts, and private jets, while leaving an absolutely unpayable debt for all Icelanders. Iceland was facing national bankruptcy.

In response to the failed banking system, in October 2008, Iceland’s revolution against this financial tyranny began, rather casually in the street, in front of the Icelandic general assembly.

In the duration of five months, the main bank of Iceland was nationalized, government officials were forced to resign, the old government was liquidated, and a new government was put in its place. By March 2010, Iceland’s people voted to deny payment of the 3,500 million Euro debt created by the bankers, and about 200 high-level executives and bankers responsible for the economic crisis in the country were either arrested or were facing criminal charges.

In February 2011, a new constitutional assembly settled in to rewrite the tiny nation’s constitution, which aimed to avoid entrapment by debt-based currency foreign loans. In 2012, Iceland’s economy is expected to outgrow the Euro and the average for the developed world, as estimated by the Paris-based Organization for Economic Cooperation and Development.

This video clip from the film Inside Job gives some background on what caused the financial crisis in Iceland.

So how does a revolution like this take root and activate a citizenry to effectively respond to grand scale economic theft by bankers and politicians?

Hörður Torfason, a lifelong activist from Iceland, is credited with organizing the Icelandic ‘Kitchenware Revolution’, beginning with a simple vigil in front of parliament aimed at educating passersby and ridiculing the blatant crimes of the elite who worked there. When the foreign financial community (the IMF and the European Union) pressured Iceland’s Parliament to pass laws dictating repayment of debts privately incurred by bankers, the revolution was formally ignited and nearly turned violent when some Icelanders began throwing rocks at the capitol, attempting to pressure the government for redress.

Torfason and his supporters knew that a non-violent approach would be more effective, and formed a “human wall” of clearly marked orange-vested citizens between angry rock-throwers and the police line. Torfason believed that in order for a movement to be effective, one must use reason and information, as well as peaceful demonstrations, to send a strong message to politicians that the people refuse to pay the bankers’ debts.

The end result of the peaceful resistance to economic tyranny is a model for all Western nations who are currently being gutted by a totally corrupt banking system.

This story is much different than what has happened in the US since the banking crisis began in 2008. Large “bailouts” were granted to the bankers, and none of the responsible parties have faced criminal prosecution. And it appears that we are still at the mercy of the currency cartel and the dollar faces total destruction.

In Iceland, the prime minister was indicted, over 200 criminal charges were filed against the bankers, and all of the former CEOs of the 3 biggest banks were arrested. The new government supported citizens by passing a banking remittance that forgave debt exceeding 110% of home values. As a result, “banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population.” (source:

Yes, the country continued to struggle economically after the 2008 revolution. But already today Iceland is thriving, with 2.9% growth in the economy in 2011, and 2.4% estimated by the OECD for 2012 and 2013.

The lesson to be learned from Iceland’s crisis is that if other countries think it’s necessary to write down debts, they should look at how successful the 110 percent agreement was here. It’s the broadest agreement that’s been undertaken. – Thorolfur Matthiasson, an economics professor at the University of Iceland in Reykjavik (source:

This is about our life and the future of the children, of the generations, of the young people. – Hörður Torfason (source:

Can America hold out for a banking miracle like Iceland’s and somehow muster the fortitude to demand an end to economic corruption? Perhaps Hörður Torfason is available to help get America mobilized.

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13 Responses to "Iceland’s Hörður Torfason – How to Beat the Banksters"

  1. Jack Barras  December 14, 2012 at 6:57 am

    The gradual removal of peoples ability to function on an equal basis without banks has been one of most well thought out and stealthy invasions in the last 100 years! In many countries around the world you cannot even get a job without a bank account! I admire Iceland for its actions and wish the western press were not such capitolist puppets!

  2. Autonomous Collective  December 23, 2012 at 11:35 pm

    This needs to happen on a global scale. We are being robbed blind by the bankers and political elite. It needs to stop and the sooner the better. Well done Iceland!

  3. herma  December 26, 2012 at 4:48 am

    Its time the pond scum top executives (general managers and above) and any politician not delivering what the constitutions of countries or the people have asked for, be held accountable and punished by eviction from their country. Set them adrift on a wooden pallet on the ocean with a bag of their fiat monopoly money to eat while out there. Time for these parasites to start paying for their inhumane greed.

    • Allen Anderson  February 23, 2013 at 12:09 am

      I like your idea herna.

  4. ib4242  December 27, 2012 at 7:53 pm

    Won’t happen here. Too long, too many and ‘unconstitutional’. The latter word has been savaged and twisted beyond recognition by the vermin who know how.

  5. Rachel M Valaskaj  January 6, 2013 at 6:20 pm

    I’m confused by the picture – is that someone being hung while people just walk by???

    • Tudor Rosca  January 17, 2013 at 9:52 pm

      It is just a puppet, not a real Person. By the looks of it, it represents a bankster ;)

  6. Andri Þorvalds  January 17, 2013 at 10:23 pm

    God damn it please stop painting this bullshit rosy picture of Iceland. The guys who ran the country into the ground still own the most important companies and all the big media. The sentences of the few minor players are laughable. The banks are still making people homeless. The rent market is terrible as banks would rather keep houses empty to make their books look good. Unemployment is still high. People who seek food relief increase. Food and gas prices rise. Workers wages (adjusted for inflation) have been continually decreasing while top executives wages continue to rise. Corruption is still rampant. The new government takes always the side of the bankers and business leaders on important issues. The welfare system is in a terrible state. Interest payments make 13,3 % of the government spending (an increase from previous years). The 110 % way was only to help those who spent the most and were going bankrupt anyways, while nothing has been done for people who were careful with their finances. The inflation index is still bleeding the population. The situation of the proposed new constitution is very uncertain. And yes I am Icelandic and I live in Iceland and know this very well.

  7. roger frazier  January 18, 2013 at 2:47 am

    Not trying to be a dickhead but do you think our situation in the USA is better ? Maby we should keep our assault rifles?

  8. John connor  January 18, 2013 at 7:07 pm

    The call for America’s now globalized gov to disarm its people is if nothing else but a sign that the NWO exists and is working together with china and Russian superpowers to bring us to our knees and break the chance of civil war, at this point we should move for anarchy…

  9. athousandshadesofmelancholy  January 20, 2013 at 5:56 am

    A banking miracle? This has to be the most poorly researched ‘article’ I’ve ever read. Well done, you have officially become a propagandist. You are now your own enemy.

  10. S_Logos  January 23, 2013 at 12:06 pm

    What is actually going on in Iceland:


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