We all can learn from the Icelandic people, from their sense of assuming responsibility, for their political consciousness, their tenacity, from their culture that fosters more authors per capita than any country in the world, where there is no army, and folk live in tight-knit fellowship.

I am concerned, however, that if the current trend with the fast life continues, especially in the ever-growing Capital Region where 60% of the 365,000 population live in just 1% of the land, this peaceful and intelligent people could deteriorate into consumerism like most others in the world when they have the chance.

Iceland Saga. Astronauts prepare for moon trips train in this rugged nature. Creative Commons photo.

Drug smuggling, rampant pornography, money gouging by businessmen and some politicians, rampant growth in tourism in which numbers exceed seven times the size of the population, too many cars, the return of the U.S. Naval Base are all signs of decaying humanistic values.

While crime rates are still low in this breathe-taking island-nation, and shootings most unusual, an Albanian immigrant was shot in his home, on February 13, and died of multiple wounds. This is the first shooting death since 2007. The dead man, 32, owned a physical security company. Eight persons have been arrested. Seven were in custody as of February 18. From Iceland — More Arrests In Reykjavík Shooting (grapevine.is)

Very few crimes involve firearms. Iceland has traditionally had a homicide rate of less than one per year for the last several decades. Four homicides in 2017 and four again last year were exceptional. There have been 37 homicides in the last two decades.

There are very few rapes. Nevertheless, reported rapes in 2015 numbered 178 (54 per 100,000), triple that of 2004 when the rate was 17.4 per 100,000 population. Greater porn media, tourism and immigration are partially responsible for this increase. Iceland Rape, 2003-2020 – knoema.com

Five percent of women in all of Europe reported having been raped, in 2014. In Iceland, even with the recent increase, just one tenth of one percent have experienced such violence. In the U.S., one in five women are raped, 19.3%.

Domestic violence, although infrequent, doubled last year to 60 cases over 30 in 2019.

Icelanders are generally not a violent people. In fact, they are deemed the most peaceful country in the world for 13 years running. • Chart: The State Of Global Peace In 2020 | Statista*

No even Iceland’s police are violent.

On December 2, 2013, “Police in Iceland said they shot dead a gunman — the first time armed police have killed someone in the nation.” USA TODAY

Nothing similar has happened since. Police do not usually carry lethal weapons. The prime minister does not normally have body guards.

Police said that they were called to a Reykjavik suburb apartment when a 59-year old man fired a shotgun from his flat. Two unarmed police tried to enter the gunman apartment after neighbors complained he was making threats. They were shot at but not injured. Other policemen came armed. Witnesses said the police tried to subdue the man by throwing a smoke bomb into the apartment through a broken window. Two policemen were hit by shotgun fire, but not seriously. They fired at the man, who died when taken to a hospital. No one else was injured.

Some of the reasons why there is so little crime, even today, has to do with:

1. Small country where people know one another, including their politicians and capitalists.
2. Tight gun control. Everyone desiring to buy a firearm must be approved and registered by a state agency. Semi-automatic rifles are banned as are pistols, generally. There must be a special reason to own a pistol and it can take three-four years before permission is granted. A national database registers and tracks all firearms. Nevertheless, one in three persons own one or more firearms, which are used for hunting wild animals and for sports.
3. Independence was declared in 1944, after 600 years of Danish rule. Iceland does not send soldiers to war.

Financial Crisis 2008

More people in Iceland than in most countries are politically conscious and motivated to take on corruption in politics and business in Iceland than in most countries.

Many thousands rallied at Reykjavik’s main square on freezing days between October 2008 and January 2009. They banged saucepans, linked arms in a circle around the parliament building, pelted it with food (too wasteful for my taste), and demanded the “left” government resign.

They succeeded in breaking the SDA-Independent Party coalition. An interim SDA-LGM (Social Democrats plus Left Green Movement) government won the April election. Yet again another “left” government also capitulated, this time to the EU and elite pressure. The government proposed a repayment deal “Icesave” to UK and Dutch creditors. The SDA-LGM government even announced drastic cuts in public spending. Hospital and school employees were laid off and wages cut. Some “leftist” politicians even suggested seeking membership in EU.

One of the few solid powers Icelandic presidents have is to sign proposed laws before they can be effected. President Olafur Ragnar Grimmson, a political science professor who replaced Vigdis, in 1996, took the unusual step of vetoing the appeasing bill to bailout customers of the private banks. In the ensuing referendum, March 2010, 93% of the people backed their president.

Despite this set-back, and a drastic slump in support, the “leftist” government tried once again to pay foreign creditors, this time in instalments. On 20 February 2011, President Grimmson again vetoed the bill. In the second referendum, April 9, 2011, Icelanders again rejected to pay $5 billion loans made by Britain and the Netherlands.

Sigmundur Daviõ Gunnlaugsson, head of the centrist Progress Party ran against the “leftist” coalition on a platform of “cleaning up” bank corruption and tax fraud. His party won parliament elections. He became PM, in May 2013. Sigmundur Daviõ worked with the president in refusing to pay the British and Netherland governments, a struggle finally sanctioned legally by the European EFTA Surveillance Authority. The centrist PM appeared more loyal to the people than the “leftists”.

(See: Smashwords – Scandinavia on the Skids: The Failure of Social Democracy – a book by Ron Ridenour and Welcome to Iceland, Where Bad Bankers Go to Prison – Bloomberg)

After the financial crisis, Iceland implemented capital control measures, which substantially reduced financial crimes and the illicit movement of money through Iceland. Most of these controls, however, were removed by new political leaders. This could lead to more economic corruption by the rich and those who seek to become rich.

Strong feelings of distrust for politicians, who often turn their backs on promises made, and opportunist businessmen and women, are now deep-seated in much of the population. In 2016, polls showed that two-thirds of the people had lost faith in The Establishment.

In April 2016, Iceland experienced its largest demonstrations in history. Up to 25,000 people protested outside the Prime Minister’s office in Reykjavik for several days. This non-violent yet determined protest was prompted by Panama Papers revelations showing that several senior Iceland officials (including PM Sigmundur Daviõ Gunnlaugsson and his finance minister) had large investments in foreign corporations and in tax shelters, in order to circumvent Iceland’s austere capital controls.

The public outcry over these revelations forced Gunnlaugsson to resign on April 7, 2016.

For an entire year of 2016-7, the activist citizenry persisted in challenging leading politicians. Social Democrats also became discredited for their right turns, as well as the traditional liberal/neo-liberal Progressive Party. The nation had four prime ministers within a year’s time. The current prime minister, Katrín Jakobsdóttir, has been PM since November 2017 parliamentary election, in which 81% of potential voters went to the polls.

Educated in Icelandic literature, the 45 year-old Jakobsdóttir is a popular leader of the Left-Green party. It won second place with 17% of the vote giving it 11 seats of the 64-member Althing (meaning Assembly in Fields) parliament. The conservative Independence party is the largest with 16 seats.

The Left-Green party leads a coalition government. It stands for democratic socialism, withdrawal from NATO and EU, opposes U.S. aggressive wars, and emphasizes feminism (full equality of genders, ethnicity, nationalities, and religion), integration of immigrants, and environmentalism.

The Althing convened first in 930 with citizenry meeting outdoors to determine how they should conduct their economy and politics. In 1262, Iceland came under first Norway and then Denmark monarchies. The Althing is now the world’s oldest parliament.

Isolated from Denmark once the Danish government accepted Nazi rule, on April 9, 1940, Iceland allowed the United States to build a military base at Keflavik, near Reykjavik airport. On June 17, 1944, the Althing decreed Iceland’s independence from Denmark, and became a republic.

Presidents are elected every four years and have no term limits. Although presidential powers are limited, she/he has more powers than other European presidents and monarchs where prime ministers have nearly total power. After general elections, Icelandic presidents designate a party leader—the one that the president considers most likely to be able to form a majority coalition government—to form a government. The president also appoint cabinet ministers proposed by the PM, and determines their number and division of assignments. Ministers are not able to resign. Only the president can discharge them.

There are currently 11 ministers. There is no minister of defense or war! It is the task of Iceland’s coast guard to fulfill the nation’s limited responsibilities to NATO.

Keflavik Military Base

Another topic of public discord concerning PM Gunnlaugsson was his acquiescence to the U.S. Navy, allowing it to retake the Keflavik base just two months before he was ousted from governing on April 7, 2016 for corruption and tax evasion.

The U.S. Army built to base “to maintain the defense of Iceland and secure northern Atlantic air routes. It served to ferry personnel, equipment, and supplies to Europe. Intended as a temporary wartime base under an agreement with Iceland and the British, U.S. forces withdrew by 1947 but returned in 1951 as the Iceland Defense Force resident on a North Atlantic Treaty Organization (NATO) base.”

Boeing P-8 Poseidon – Wikipedia. Also see: NATO BASE KEFLAVIK AIRPORT BASE HISTORY – NAT; U.S. military returns to Iceland | The Independent Barents Observer (thebarentsobserver.com)

On 8 September 2006, the U.S. turned over the base to the Icelandic Defense Agency as their primary base until 1 January 2011, when the Agency was abolished and the base handed over to the Icelandic Coast Guard, which operated the base. The coast guard serves Iceland’s functions as a member of NATO, which the republic joined in 1949. Under Iceland, the base had served primarily as a radar and communications site.

Protestor against joining EU. No to Banana Republic. Photo from Hannah’s blog. Iceland | It All Started In Iceland… (wordpress.com)

In 2017, the United States announced its intention to modify the largest hangar on the Icelandic base. Its contention is that it needs the base to “deter Russian aggression”.

“At Naval Air Station Keflavik, Iceland, slightly more than $14 million is being invested to build new hangars to house sub-hunting Navy P-8 Poseidon aircraft, according to Foreign Policy.” U.S. plans $200 million buildup of European air bases flanking Russia (airforcetimes.com)

Retaking Keflavik is part of Russiaphobia, which Donald Trump partially fell for. He designated $214 million to repair and build ten U.S. military bases in Norway, Estonia, Latvia, Luxembourg, Romania, Hungary, Slovakia as well as Iceland. At some bases, high tech stealth fighters will be employed.

Public outrage and demonstrations against U.S. military presence on this peaceful island nation has taken place periodically since Iceland joined NATO seven decades ago. Bjarni Benediktsson, Foreign Minister of Iceland, was a strong advocate for NATO. He was a leading figure in the conservative capitalist Independence Party, and became prime minister, 1963-70. While the Independence Party opposed Denmark’s colonialism, it desired “protection” from the United States.

On March 30, 1949 parliament voted (37-13) to join NATO. Besides Benedikstsson’s party, the Social Democrats and Progressive parties voted for; opposed were Nationalists and Socialists.

Socialists led an anti-NATO march on parliament where pro-NATO demonstrators awaited them. Fisticuffs ensured amongst egg and rock throwing. Many parliament windows crashed. The uproar lasted for hours. Police finally broke it up using batons and tear gas, which did not occur again until the financial crises of 2008.

On 4 April, Iceland joined 11 other countries, including Denmark, to found NATO. NATO – Declassified: Iceland and NATO – 1949

Since then, many people continue to oppose NATO and Iceland’s membership. They may be the majority, but parliament refused to conduct a peoples referendum on the matter. The ”Campaign Against Militarism” demonstrates with banners “Iceland Out of NATO” and “The Army Out”.

Vigdis Finnbogadöttir 1985. Wikipedia

On June 29, 1980, Vigdis Finnbogadöttir became the world’s first female elected president, and the first single mother president. Vigdis has long been one of those anti-NATO activists devoted to world peace.

She granted me an interview just four months after taking office. I flew from Denmark to meet with her.

“Whenever I speak as head of state, I speak about peace. I will say it as often and as long as necessary,” the straight-talking President Vigdis Finnbogadöttir told me. Smashwords – Scandinavia on the Skids: The Failure of Social Democracy – a book by Ron Ridenour

“Think what we could do with the money that goes into militarism! I am a premeditated pacifist. Wars and armies are absurd things. We have no army, no militarism. We are a peaceful, independent people,” asserted the charismatic president.

She told me that she demonstrated scores of times against the Keflavik military base, often marching the 50 kilometers to and from the capital and the base.

Vigdis was never a member of any political party. She was a cultural worker educated in French literature at the Sorbonne. When elected president she was head of Iceland’s theatre, and noted for being a single mother to a daughter she had adopted years after her divorce from a doctor.

“I think my election was the result of the woman’s day strike we had on October 4, 1975. No lady did a thing the whole day. I was striking like everybody else, as were all my actresses.”

The United Nations had proclaimed 1975 as Women’s Year. A committee made of five of women organizations in Iceland organized a day to protest for equal wages, equal treatment. Ninety percent of women did no housework; most did not go to their jobs; and 25,000 demonstrated (out of a 220,000 population). Many pointed to Vigdis as their choice for president.

“We have accomplished a lot for such as a small population. We have no real poverty, hardly any unemployment, everyone has food and shelter. And Imagine! We succeeded in harnessing the strong elements of nature: ice, rapid waters, fire, and even lava. We are the only nation to detour a lava stream to save a village and then used the lava to heat all the homes not destroyed,” President Finnbodattir concluded.

Vigdis served four terms (August 1980-April 1996), the longest serving president in Iceland ever. At 91 years, she is still serving peace as UNESCO’s Goodwill Ambassador, so chosen in 1998.

Culture

Iceland is known for its moon-like, volcanic nature. Icelanders are known for their pony-sized horses, and for their sagas (Íslendingasögur). These family prose narratives are generally based on historical events, which mostly took place in Iceland in the ninth, tenth, and early eleventh centuries. This so-called Saga Age is the best specimen of the island’s literature. They were written in Old Icelandic, a western dialect of Old Norse.

In modern times, Icelandic authors write marvelous novels, detective stories, and poetry. Many ordinary citizens write their own poetry. In fact, 10% of the people publish one or more books. More books are published and sold per person in Iceland than in the world, and there are more book stores per capita. Most people actually read books.

Iceland Has the Most Books Published per Person per Year in the World (funfactz.com)

Icelandic culture is one of the richest in the world, in part, because nearly everyone feels connected. Icelanders appreciate theater, symphonies, even opera. There are many art galleries, professional theaters, museums, and cinemas. Filmmakers are world class.

Cuisine is based on the many varieties of fish from their waters, and lamb. Haddock is their favorite. Fish, especially cod and redfish, is their largest export product.

Gender equality is widely successful and respected. Many women hold leadership positions in government and business. Gay rights are legislated and largely accepted. Same gender couples have been able to register in union since 1996, adopt children since 2006, and marry since 2010. Women retain their sur names after marriage.

The 2003 Children’s Act outlawed spanking, even verbal and emotional abuse. Physical or mental violence is punishable by imprisonment and/or fine.

When I moved to Denmark, I began reading books written by Scandinavians. My first Icelandic author was Halldór Laxness. He wrote novels, short stories and poetry. Laxness drew from Bertold Brecht, Upton Sinclair, Sinclair Lewis and Ernest Hemingway, among others. He even translated Hemingway’s Farewell to Arms.

Laxness is best known for Salka Valka, a sociological novel depicting a girl of nature who fights for justice, for union rights and livable working conditions. This book began a series of social critical novels in which socialism is the preferred economic order. Laxness won the Lenin Peace Prize, in 1953, which did not prevent the Swedish-based institution from granting him the Nobel Prize for Literature, in 1955.

Halldór Laxness by Iceland artist Einar Hákonarson, 1984. Wikipedia

I bring my reading into this writing to illustrate how cultured the average Icelander is, which leads me to an anecdote about one of Icelanders greatest cultural skills: chess. This intelligent game is not only for professional players, most Icelanders play chess. In fact, Iceland has more rated grandmasters per population than any other nationalities. The World’s Most Chessly Nation Is… ÍSLAND! – Chess.com

Chess players throughout the world remember the famous 1972 world championship played at Reykjavik between Soviet Boris Spassky and U.S. American Bobby Fischer.

Having travelled to this wonderful island nation to meet its peace activist president, I returned in 1981 to work on a fishing boat at the small island of Heimaey, Vestmaanaeyjar. I had become familiar with the island, because of the 1973 eruption of Eldfell Volcano, which destroyed a fifth of the buildings. The tenacious islanders did not falter in putting out the fires with oceanic water, and then converted the lava into heat energy for all their homes.

The island of 4000-4500 residents, with as many cars, is a major fishing village. I was offered a summer job with a crew of ten Icelanders. Grethe came for a time, and worked in a factory cleaning the fish that we and other small fishing boats netted. These jobs were grueling work. When there was a break, waiting for our nets to catch fish, several men and teenage fishers would take out their chess boards. I play a bit. I watched amazed. Most of these boys and men had the minimum of education, 10 grades, yet all were excellent players. When I asked if I might try my hand, there was a hush. No one wanted to reply. I learned from my native “guide”, who had found me work and a place to live, that they were shy, embarrassed. They didn’t want me to feel left out or ignored. On the other hand, they didn’t want me to play because, without knowing how good I might be, they surmised that I wouldn’t last a couple minutes. I understood their reasoning completely.

Small Societies Can Be Peaceful; Large Ones Are Violent

Monument to the Unknown Bureaucrat.

THE 10 BEST Reykjavik Monuments & Statues (with Photos) – Tripadvisor

When Jean-Jacques Rousseau used the word democracy, he referred to a direct democracy rather than a representative democracy. Rousseau argued that, like his native Geneva, only small city-states are the form of nation in which freedom and peaceful relations can possibly flourish.

“In his most influential work of political philosophy, The Social Contract (1762), Rousseau asserts that democracy is incompatible with representative institutions…[T]he moment a people allows itself to be represented, it is no longer free: it no longer exists.’” Democracy – Rousseau | Britannica

Rousseau, however, was pessimistic about the long run viability of any form of government where the society has too many human beings. He did not set any number that might be “too many”. He hints, though, “that democratic governments may be viable if joined together in confederations.”

Anthropologists have concluded that when homo sapiens lived in small groups (20-to a couple hundred) it was possible to live with one another in relative peace, and with relative democratic-decision making. Each person had his/her tasks, and no person could occupy a leading position without authentic skill and without consent of the group.

In my opinion, we homo sapiens are doomed to murder one another either individually or in massive scales because: 1) we insist upon endlessly constructing huge societies, which are dominated by a few persons bent on obtaining endless wealth by any means; 2) we insist upon bearing too many children.

The planet is already over-populated and cannot sustain the human race as it is. Is the Earth over-populated? (phys.org) and The Ecological Footprint: 1.7 Earths are needed to support our demands! | Sustainability Academy (sustainability-academy.org)

Parents worldwide should bear no more than one child for some time to come. This is the only sane approach. Another “only sane approach” is to end all forms of economic greed in the whole world.

In the words of Evo Morales’ Ten Commandants: Live Well, not Live Better.

“Sisters and brothers, [in] the tenth point, we propose to Live Well, not live better at the expense of another—a Live Well based on the lifestyle of our peoples, the riches of our communities, fertile lands, water and clean air. Socialism is talked about a lot, but we need to improve this socialism, improve the proposals for socialism in the XXI century, building a communitarian socialism, or simply Live Well, in harmony with Mother Earth, respecting the shared life ways of the community.Evo Morales: 10 Commandments To Save the Planet | Climate & Capitalism (climateandcapitalism.com)

The base, situated at Keflavik International Airport close to the Icelandic capital of Reykjavik, was first opened as a strategic US airbase for US bombers during World War II. However, the base acquired key strategic significance during the Cold War as it allowed easy access for the US to patrol the North Atlantic against potential «Soviet threats».

In 2006 the US military left Keflavik, as the Navy shifted its focus away from the North Atlantic and toward the Mediterranean. Now, in a sharp change reminiscent of the Cold War, the US is reopening its former military base. Indeed, the strategic location midway between the US and Europe makes Keflavik ideal for patrolling the waters off the coasts of the UK, Ireland, Iceland, and Greenland. The value of the facility is immense for sending military reinforcements to Europe in case of a large-scale war. 

US Deputy Secretary of Defense Bob Work visited Iceland last year to discuss the details with the Icelandic authorities.

During the visit he noted that the country was «…an incredible partner. They have a longstanding relationship in coordinating P-3 flights, and we’d like to see what they can do to assist P-8 operations. They’re committed to the F-35 Joint Strike Fighter, and they’re thinking about the P-8».

Icelandic Prime Minister Sigmundur Davíð Gunnlaugsson welcomes US military projects in Iceland. «I first heard about this on the news that the US military plans to put some money into renovating an old hangar, and there is nothing but good things to say about that if it creates jobs for workers in Suðurnes», he said in his remarks on the issue.

When asked if he thought the operations would increase, he answered, «They will probably want to fly some more over here and that is in accordance with current agreements with the US». 

It was reported then that according to the proposed budget for next year, Iceland increased allocations for military purposes. It was decided that «emphasis has been placed on NATO member states increasing their payments to the common defence of the alliance, especially in light of security developments in Europe», Icelandic media reported.

Some facilities in Keflavik are maintained in operational or near-operational condition – barracks, command centers, fuel facilities, weapons storage facilities, and about 21 hardened aircraft shelters dating back to the mid-1980s, including a large hangar built to support B-52 bombers. US aircraft occasionally still use the base’s facilities. Many installations are dispersed and constructed as protected bunkers. A US Navy P-8A Poseidon maritime surveillance and patrol aircraft also visited the base over several days in April to assess the feasibility of operating the aircraft at Keflavik. Also present were four Danish F-16 fighters that operate from the Keflavik. Since 2008, Iceland’s air space has been patrolled by NATO allies as part of the Icelandic Air Policing operation.

The US Navy is asking for funds to upgrade an aircraft hangar at its former base in Keflavik, as part of the Defense Department’s fiscal 2017 budget request, Navy officials said  to Stars and Stripes.

The upgrade would allow the US to fly P-8 Poseidon patrol aircraft over the North Atlantic with ease – currently, the US has to fly the aircraft out of a base in Sicily to the Atlantic for operations. A modernized hangar will house P-8 Poseidon maritime patrol aircraft (submarine hunters). The Navy could eventually establish regular patrol rotations at the base, which would likely resemble the Navy’s maritime patrol force at its air base in Sigonella, Sicily, where squadrons rotate out every six months.

The activities to modernize a strategically important base in the Atlantic should be viewed as part of a broader picture. 

The US has stepped on the road to confrontation with Russia. In 2014, President Obama kicked off the European Reassurance Initiative, or ERI, to conduct military exercises and pre-position tanks and other equipment in the vicinity of Russia’s borders. If Congress decides to fund it, the expanded ERI will be at the core of this policy. With the third US Army brigade, the Pentagon says it would be able to maintain a constant presence in Estonia, Latvia, Lithuania and Poland, plus «periodic» deployments to Bulgaria and Romania.

In the US Department of Defense’s budget request for the 2017 fiscal year, the US military asks for $3.4 billion more to keep this program going. This is more than four times the amount the Pentagon asked for in the previous budget. US servicemen will visit and train within NATO members and other countries, including Ukraine, a Russian neighbor.

In addition, the funds would help to stockpile extra gear in Eastern Europe – viewed as a possible future front line. Military infrastructure will be upgraded. Most importantly, Washington plans to up the number of American forces present in Europe at any given time – including a full armored brigade of 3,000 to 5,000 soldiers with tanks and other heavy vehicles. This is on top of more than 70,000 troops the Pentagon already has in the region. The US Army already has a battalion’s worth of tanks and other supplies positioned and ready to go on short notice in Grafenwoehr, Germany. The new stocks will be closer to the new potential front lines in the Baltic States and elsewhere. All told, the Army wants to have the equipment required for an armored brigade, an artillery brigade and a support brigade, plus division headquarters to oversee those units. With everything in place, the Pentagon could just fly in more than 10,000 troops needed to staff these units during a crisis.

In the fall of 2014, the Marine Corps had announced similar plans to update its own storehouses, which are hidden inside caves  in Norway.

The US Marine Corps will keep working out of the bases near the Black Sea, as well.

US Special Operations Forces (SOF) would get $25 million to step up training with their Central and Eastern European counterparts.

Off the coasts, the Pentagon would work with NATO members and other countries like Sweden and Finland to practice chasing Russian submarines.

The Air Force will keep 20 F-15C fighter jets on station in the United Kingdom. It will continue to send other planes to the region, for instance, A-10 ground attack fortresses, stealthy fifth generation F-22 fighter jets and B-52 strategic bombers. And the Pentagon wants to survey the Baltic region and Eastern Europe for radio frequency issues that could conflict with drone signals. At least two MQ-1 Predators are stationed in Latvia to enhance NATO’s close-air-support, air interdiction, and intelligence, surveillance and reconnaissance (ISR) capability. All of these activities would require new or expanded facilities. The Air Force alone would get more than $63 million to build new hangers, fuel storages, aircraft parking spots and other buildings at five separate air bases in Estonia, Bulgaria, Romania and Poland. Another $21 million would go to building hangers to host Navy P-8 sub hunters in Keflavik.

* * *

Last June Russian President Vladimir Putin speaking at joint press conference with the President of Finland, Sauli Niinistö told reporters, «We will be forced to aim our armed forces… at those territories from where the threat comes».

Responding to repeated claims of Russian aggression, Putin pointed out that it was NATO which had expanded up to Russia’s borders. «It is NATO that is moving towards our border and we aren’t moving anywhere», he stated. The President also cited his opposition to longstanding NATO plans for the construction of a missile defense system in Eastern Europe that would be directed at Russia.

In a recent commentary, Rep. Dana Rohrabacher, R-California, chair of the House Foreign Affairs Subcommittee on Europe, Eurasia, and Emerging Threats, dismissed claims of Russia’s growing threat to US security as «belligerent nonsense».

«It remains the case that NATO countries hugely outspend Moscow when it comes to military procurement», he observed. «There is no evidence whatsoever that Russia, as when it was the Soviet Union, is embarked on a wanton course of global expansion. This is a country that unilaterally pulled its occupying troops out of Eastern Europe, a door closing on the Cold War».

Rohrabacher added, «Obviously, some highly influential people can’t accept that and leave the Cold War behind, their mindsets and careers linked to a lingering enmity between the Kremlin and the White House. In particular, they can be found as think tank strategists and arms merchants».

The US Navy getting back to Keflavik puts into jeopardy Russian Navy and Air Force   operations in the Atlantic. This step cannot be perceived as anything else but the implementation of broader plans to launch a large-scale war against Russia. The US and its NATO allies have heightened the already high tensions in a dangerous game of bringing the world closer to the abyss of military conflict. 

 There was no “blockade” of the island by International Monetary Fund and other world economic and financial bodies. On October 24, 2008 Iceland asked the International Monetary Fund for a bailout package. On November 17, 2008 the country received $5, 1 billion (30 percent of national GDP) to refund the budget deficit.  In exchange it took over the obligation to cut the deficit and restore normal functioning of financial sector. In July 2009 the government of Iceland announced the recapitalization plan for three new banks created out of the remnants of the old ones aimed at getting $2,1 billion (12 percent of national Gross Domestic Product) by issues state bonds. The so called “banks nationalization” has been tried in the times of crisis in the United States, Great Britain and some countries of Europe. The process is purely technical, the banks are rescued at the expense of state budget. After that, the state gradually reduces its presence in the banks capitals making them become private entities. By the way, the foreign depositors never suffered any damage receiving adequate compensations from their respective governments.

Besides, it’s absolutely indisputable that the government of Iceland did have state debt obligations. The debt was large enough, but not record breaking. In 2007 it was equal to 29, 1 percent of GDP, increasing to 70.3 percent on 2008 and 88.2 percent in 2009. These figures are comparable with the ones for Ireland and Greece at the time. The government of Iceland never declared a sovereign default. But all of a sudden world media outlets started to report (revealing a great secret) that there is some “Iceland precedent” and the powers that be declared the state default. I say it once more, no such thing happened. True, there was an unpleasant moment in the relations between Iceland and the International Monetary Fund in 2009. The “Vikings” suggested they would not repay the IMF debt, not because they did not want to, but because they had no money to do it.  Then the Fund dropped a hint it was a “privileged” creditor and the depositors of Icelandic banks could wait.
   
In this case, what was the reason for inventing the fairy tale about the Iceland’s default?  Perhaps it was done to push Greece, Spain, Portugal and other member-states of the European Union in the same direction. As far back as January 2012 Russian expert Sergey Golubitsky published the article called Why There is no Revolution in Iceland. The Icelandic Hoax Concocted by US Bankers? There he proved that: a) There was no revolution in Iceland; b) the events, that are erroneously described as a “revolution”, were staged by Wall Street for its own purposes. All the emotions were sparked by the Wall Street and the London City banks (Goldman Sachs, J.P. Morgan, Morgan Stanley, Barclays) that issued a huge number of financial instruments called credit default swaps (CDS). The swaps are kind of insurance from all kinds of defaults declared by banks, companies, states in debt. Creditor banks and debt bonds holders paid hundreds of billions for default swaps, including Spain’s state CDS. The banks were afraid that as a weak link of the European economy, Iceland may create a precedent of sovereign default with all the ensuing consequences for the Wall Street sharks. If the government of Iceland had taken over the unbearable burden of paying off foreign clients of Icelandic banks, then nothing would have rescued it from real default. Another group of banks and companies, that have bought scores of toys called credit default swaps, has a dream that sovereign defaults do take place. The article by  Sergey Golubitsky about Iceland ends with the following, “There are hundreds of billions euros spent to acquire credit default swaps, any hokum will do to create a default situation – even  if it is such a profanation as a revolution made by the small, but proud island nation”.

At present Iceland is no different from other states of Europe. Like its European neighbors, it is gradually plunging into the quagmire of debt crisis. Here are the dynamics of total sovereign debt growth in the Eurozone (percent, GDP): 2007 -66, 2011 – 88. 2012 – 93. According to European Commission., this year the figure is going to exceed 93. We have already mentioned that in 2009 the state debt of Iceland was 88, 2 percent going up to 118, and 9 percent in 2012. There is no standoff (as sometimes some media outlets report) between Iceland and the International Monetary Fund.  

It’s difficult to say goodbye to illusions. Iceland is just another example of the way world bankers manage to guide the energy of public protest into the direction they desire. It’s even hard to imagine what the West would do if the people of Iceland really decided to stand up and oppose the interests of Financial International. In reality there are many examples of genuine precedents of such actions taking place in the contemporary world when the all-powerful financial oligarchy is really confronted.  Only these events are hushed up by world media.  
 

The estimated strength is 1,200 personnel comprising three to seven companies. The Swedish initiative is to be discussed this September at the defense ministers’ level.  Swedish Armed Force Chief Gen. Sverker Göransson has said that establishing the modular-style NBF is fundamental to meaningful Nordic defense cooperation. According to him, the force could be activated in 2016. Finland said the initiative is welcomed, though it is still to mull it over  and make some details precise. “Would it function as a regional force or could it be a crisis management tool that could be used outside of the European Union’s borders?” asked Finnish Defense Minister Carl Haglund. Norway and Copenhagen, the NATO members, have adopted a wait and see king of attitude.

The force advocated by Sweden would operate as a separate force to the European Union’s Swedish-led Nordic Battle Group (NBG), made up of troops and equipment from Finland, Norway, Ireland, Estonia and Latvia. Unlike the NBF, which would be Nordic-specific, the larger NBG is assigned to the EU’s standby international mission forces. But taking into consideration the fact that the major EU parties are also NATO members, it easy to guess the both formations will inevitably add to NATO’s capabilities too…  The Swedish initiative matches the NORDEFCO Cooperation Area Battalion Task Force 2020 study, devoted to finding a common approach to the creation of a generic Nordic Battalion Task Force.   The proposal sparks a debate on a broader issue of Nordic states security policy, while in Sweden the question of whether it should rescind its non-aligned status and join NATO hits the national radar screen.  

            Nordic states defense dimension – NATO guidelines followed

The five Nordic countries,  Finland, Sweden, Norway, Denmark and Iceland,  have a long history of cooperation.  Even before the EU offered a framework for getting closer, they had a passport union and common labor market with each other since the 1950s.   Talking about security arrangements, in 1948 and 1949, there was an attempt to form a Nordic defense union. It ended up in failure due to multiple disagreements. 

Time had passed and the Nordic defence cooperation NORDEFCO was established in 2009. That year the Nordic Foreign Ministers started to discuss the Stoltenberg report that contained thirteen concrete proposals to enhance Nordic cooperation in the foreign and security policy area; including items such as peace building, air surveillance, maritime monitoring, arctic issues, military cooperation, declaration of solidarity and cooperation with our foreign services among others. Most of the items in the report had already been part of Nordic cooperation earlier or were already under consideration. The Nordic Declaration on Solidarity, adopted at the Nordic foreign ministers meeting in April 2011, was a clear indication of this commitment. Should a Nordic country be affected, the others will, upon request from that country, assist with relevant means, the same way it is envisaged within the framework of  NATO as stipulated in Article 5 of Washington Pact. It is emphasized that this intensified Nordic cooperation is fully in line with each country’s security and defence policy and complements existing European and Euro-Atlantic cooperation. True, the Nordic Defense Cooperation, which includes all the Nordic countries, is not an official military alliance. But in practice it brings the Nordic states together against the background of differences: the countries are members of different economic and monetary groups. Only Finland is a Eurozone member; Denmark and Sweden are EU members but not in the currency alliance; and Norway and Iceland are not EU members.

At that, today the Nordic countries are engaged in intensive defence and security policy cooperation. Joint exercises, training, surveillance activities, military procurement, crisis management cooperation including capacity building in East Africa and participation in the ISAF operation in Afghanistan.

The Nordic defence co-operation strengthens, and the US builds ever-closer bilateral military relationships with Finland and Sweden. These are stronger than with many countries that are nominal NATO members. This year Swedish planes took part for the second time in the coveted ‘Red Flag' air force exercises in Nevada, for example.

The Nordic security and defence cooperation has achieved impressive results. Speaking to military experts in Helsinki this March, general Ari Puheloinen admitted that among the success stories are the exchange of marine and air space information, joint training of navy units and cross-border air force training.(1)    Some examples of the results are the Archerartillery program, a joint effort between Norway and Sweden, and Finland’s acquisition of the Norwegian NASAMS II air-defense system. There is also an ongoing study to see whether Norway, Sweden and Denmark – which all operate the US-produced C-130J Super Hercules – could cooperate more closely on tactical air transport. There has also been very good experiences with joint cross-border training, for example, when the combined territories and airspace of Norway, Sweden and Finland are being used for exercise and training.

NATO guidelines influence the Nordic states security policy.  In line with the NATO’s Smart Defense there are steps taken like the long-lasting collaboration on Airborne Warning and Control System aircraft (AWACS), the cooperation on the C-17 Strategic Airlift Capability (SAC) in Hungary, the NATO Sea Sparrow Project.  

NORDEFCO is a good example of a “Cooperation Cluster,” a project that is in its infancy worked out to follow the NATO’s Smart Defense concept.

The Nordic cooperation has also materialized in the development of EU Battle Groups. The Nordic Battle Group has already been formed and been on stand-by two times. Finland will also join the next formation of the Nordic Battle Group, led by Sweden in the first half of 2015. The Nordic Battle group (NBG) is one of eighteen European Union battle groups. It consists of around 2,200 soldiers including officers, with manpower contributed from the six participating countries (Sweden, Finland, Norway, Ireland, Estoniaand Latvia). The military strategic command of the force is done in cooperation with the any suitable of the five Operation Headquarters framework nations at the time for deployment.

Nordic states also enhance cyber security cooperation in accordance with the Nordic Declaration on Solidarity. They have established a Nordic Classified Communication network. The decision was made at the Nordic Foreign Ministers meeting in 2012.  The network, which consists of Nordic national Computer Emergency Response Teams (CERTs) will be functional by the end of 2013.

Patrolling NATO member airspace – new landmark step in security policy

 A very important step has been done recently to enhance the interaction between Sweden and Finland on the one hand, and NATO on the other.   The two Nordic countries are ready to take part in air surveillance over Iceland, starting in 2014. The possible inclusion of Finland and Sweden in Iceland's air patrol mission in the skies of a NATO member-country is an example of the ongoing trend.  After 2006, when the United States pulled out of Iceland, NATO has been responsible for surveillance of Iceland’s airspace. In the first quarter of 2014, Norway will have primary responsibility for air surveillance, with non-NATO members Swedish and Finnish also participating in NATO operation.

It is all on the rise.  Swedish warplanes supported the no-fly zone in Libya in 2011, though formally they did not engage in combat. Both countries support peace-keeping and anti-piracy missions in far-away places. Now Iceland is a clear step towards further involvement in NATO activities.

Sweden assumes leading role in building Nordic Defense Pact

The Swedish government wants to accelerate the pace and scope of Nordic cooperation, urging moves that could create combined joint units with Finland, Norway and Denmark.Sweden’s intent is backed by a joint positional landmark statement made at the start of this year by Defense Minister Karin Enström and Foreign Minister Carl Bildt that was expanded at the annual Sälen Society and Defense conference Jan. 14.    This statement proposes Nordic states “pool and share” their military equipment and capacities, effectively creating joint air, naval and land forces units to undertake Nordic defense roles. “Sweden wants to create a more efficient use of resources, higher quality, better effects and an expanded variety of defense capabilities through cooperation,” it states.“Joint ownership and use of military capacities and resources, or so-called pooling and sharing, is a central part of the Swedish vision for Nordic defense cooperation.”(2)

Staffan Danielsson, the Swedish Center Party’s spokesman on defense said back then that “Sweden will need to strengthen its own national defense capability before promoting a Nordic defense pact.” He pointed out that ““This means taking responsibility and spending a lot more money on our military,” he said.“This is the best means of contributing to increased stability in the Nordic region. He added, that, “. … An increase in military spending is necessary if we are to remain credible.”(3)

The Swedish proposal has divided Finnish thinking. Prime Minister Jyrki Katainen said concrete measures covering joint exercises and equipment acquisition were on the table, but a defense treaty was not. “Discussion of a defense pact is not on the agenda, and I don’t know if it ever will be,” he said. “Now is the time to concentrate on defense cooperation at a practical level.” So, Sweden does have support for its proposal in Finland. “Commonality of equipment and the pooling of capacities and military operations could serve Nordic defense very well,” said Eero Heinäluoma, speaker of the Finnish parliament, the Eduskunta. “For instance, I could not see why Finland would not purchase the JAS Gripen when Finland’s existing fighter fleet is replaced in the future. If the Nordic countries were to deploy a single type modern fighter, this has the potential for huge savings.” (4)

The prospect of a pooling-and-sharing pact with Sweden, or a broader Nordic defense agreement, is a possibility but must be viewed as a long-term rather than short-term objective, said Carl Haglund, Finland’s defense minister. “In practice, the type or arrangement that Sweden proposes would require a treaty-based formal defense agreement with Sweden, given that we are talking about fundamental capabilities impacting the Navy or the Air Force,” he said. (5) The pooling and sharing proposal could be incorporated within the evolving pan-Nordic defense collaboration program, said Erkki Tuomioja, Finland’s foreign minister. As to him, “The Nordic states already collaborate in joint military maneuvers, training, joint materials acquisition, crisis management and surveillance operations. A certain amount of this cooperation is bilateral. A pooling and sharing arrangement cannot be ruled out of future cooperation.”(6)

(To be continued)

     Endnotes:

1.      http://barentsobserver.com/en/security/2013/03/nordic-defence-gets-stronger-not-cheaper-05-03

2.      http://newsmilitary.com/pages/10510508-sweden-looking-to-build-nordic-defense-pact

3.      http://www.noticierodigital.com/forum/viewtopic.php?p=14214428&sid=c61675a753ab344140955686340d73ab

4.      http://www.defensenews.com/article/20130124/DEFREG01/301240015/Sweden-Looking-Build-Nordic-Defense-Pact

5.      https://globaldefenceanalysis.wordpress.com/2013/01/page/2/

6. http://www.indiandefence.com/forums/world-affairs/23591-sweden-looking-build-nordic-defense-pact.html