Spartacus points us to a BBC story describing how the UK government has guaranteed British deposits in a failed Icelandic bank after the Icelandic government reneged.
He notes:
Opening salvo in global economic banking warfare? Icelandic internet bank closes its doors, says it has no intention of repaying depositors, UK govt tells UK customers of said Icelandic bank that UK govt will guarantee those deposits.
If much more of this goes on, you may see economic warfare of the first order as govts seek to use coercion to recover the money they spent guaranteeing their citizens' deposits.
Two related observations:
1) I called it wrong the other day; 'tis the Bear who now straddles the GIUK gap.
2) Never forget the US national debt, this listing of foreign creditors, and how easily onerous terms - financial and otherwise - are imposed by lenders on debtors they consider dubious.
3) "War is the continuation of politics by different means." - von Clauswitz
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