A E4bn loan from Russia might make financial sense – although Russians might think otherwise given Moscow’s shaky finances. But it would create strategic ructions. Iceland is a NATO member, but Russia would want something in return for a loan equal to almost a third of the tiny state’s GDP. The US would fret this could eventually mean a Russian military presence in the North Atlantic.
These Telegraph fuddie-duddies, like the ensemble of British punditry, have yet to grasp that the game is up, that support is coming from the East and that it will come with a geopolitical price. Despite British and US pressure, Iceland rejected IMF “help”.
George Hay
7th October, 2008
It has pegged the krona to the euro at 131 – the rate had swooned towards 200 on Monday – and is searching for foreign reserves. That’s a good idea. Less good is the idea to pass the cap to Russia.
In These New Times 