The New World Order is in big trouble. The European subdivision is visibly coming apart at the seams.
The Powers That Be are facing Problems That Won't Go Away. The heart of their control is fractional reserve banking and the market for government bonds (sovereign debt). Both are under siege. Both are showing signs of unprecedented vulnerability.
The euro summit meetings are turning into reality shows. Which team will be The Survivors? Merkel-Sarkozy? Papandreou-Berlusconi?
Meanwhile, Estonia is the only nation in the West that is not in fiscal trouble.
Then there is Iceland.
Iceland, whose banks defaulted on $85 billion in 2008, completed a 33-month International Monetary Fund program in August. The Washington-based fund expects Iceland's economy to grow faster than the average for the euro area this year and next. It costs less to insure against an Icelandic sovereign default than it does, on average, to hedge against a credit event in Europe's single currency bloc, debt derivatives show.
Iceland and Estonia never get invited to major European summit meetings. They are not in the G-20. There is a lesson here.
