Defying European Creditors Iceland says yes to deflation

The Icelandic President's decision to veto yet another attempt to nationalize debts of defunct private banks not only shows that there are at least SOME politicians in this world who listen to their constituents but that a whole nation is voting to stop the inflationary insanity of debt creation in favour of deflation.

Instead of kicking the can further down the road, nationalizing the obligations to British and Dutch depositors of private banks which lent foolishly, Iceland is clearly saying that it is better to just take the hard medicine now and write off the debt.

In big and small ways the world is slowly waking up to the reality that the massive speculative debts built up over the last 30 years will simply have to be purged.