If the typical Icelander owns 1 million ISK in a bank account and loses 200.000 then he will experience it as if he’s lost that money.

If the typical Icelander owes 1 million ISK in his property and 200.000 is added to the capital because of price indexation and inflation then he will not experience it as a loss at all.

That is why people are not enraged about the price indexation still being in place.

That is why people are not in the streets protesting the protection given to savers but not debtors  in the wake of the economic crash last year.

That is why you’ll hear people say ridiculous things as “The economic crisis has not affected me so much. I am only paying 5-20.000 extra a month than I did last year.”

If people got their head around the real effects of price indexation then they’d march on Althingi and burn down the banks if the price indexation would not be removed.

Until then, the Icelandic government does nothing to dismantle this weapon of mass financial destruction.

Related posts:

1. It Came To The Point Where I Saw No Sense In Continuing To Pay
2. An Extreme Turn For Myself And Other Icelanders
3. Prisoners options
4. What Is Missing From The “Definite” Household Debt Solutions?
5. Two days later – our homes are at risk