Sunday, November 02, 2008

The Coming War Between the UK and Iceland

Not really, but things are heating up.

No one disputes that the economic troubles of Iceland are largely the country's fault. But there may be more to the story, at least in the view of Icelandic government, its citizens and even some outsiders. As grave as their situation already was, they say, Britain — their old friend, NATO ally and trading partner — made it immeasurably worse.

The troubles between the countries began three weeks ago when Britain took the extraordinary step of using its 2001 antiterrorism laws to freeze the British assets of a failing Icelandic bank. That appeared to brand Iceland a terrorist state.