the so-called bankruptcy means that when all the assets of the debtor are not enough to pay off the debts due, the creditors will provide all the assets of the debtor with equal compensation through certain procedures, so that the debtor can be exempted from other debts that cannot be paid off. And the court declared bankruptcy and dissolution.

The concept of national bankruptcy

Due to the global economic downturn, the debt problem of developing countries is becoming more and more serious, and the number of countries that cannot repay their debts on time is increasing.

will the country go bankrupt? This topic, which usually sounds more like a burden, has a new case in this (28) global financial crisis: Iceland is in danger of "national bankruptcy"! In a mini country with a population of only 32,, the proportion of financial industry in the national economy far exceeds that of other industries. The country's financial industry suffered heavy losses in this global credit crisis. Now its financial foreign debt has exceeded 138.3 billion US dollars, while Iceland's GDP is only 19.37 billion US dollars! If an enterprise is caught in such difficulties, there is only one way to go bankrupt. Then, will Iceland, which is on the verge of "national bankruptcy" in theory, go bankrupt?

Iceland: The answer to national bankruptcy is: definitely not. There are many reasons, the most important of which is that the most striking feature that distinguishes a country from an enterprise is that its sovereignty is inviolable. After the end of the imperial colonial era, this principle has increasingly become an international knowledge and a principle of communication between countries with great disparity between the rich and the poor. Therefore, for those poor countries, although they are burdened with foreign debts and theoretically "bankrupt" hundreds of times, they have not been auctioned off, and these poor countries have not disappeared on the international political map and become "new colonies" of other bond countries. On the other hand, if there is a "market space" for "national bankruptcy" in the world, then the United States can use economic means to pocket small bankrupt countries without bloodshed just by taking advantage of the powerful financial tycoons on Wall Street. As a result, the world will still be dominated by "power politics". Obviously, making "national bankruptcy" possible means releasing the hegemonic politics of the law of the jungle and ultimately destroying the fragile international balance among nation-states based on historical, ethnic and religious origins.

"national bankruptcy" is more like an adjective to reflect the crisis of a country's economic situation; Rather than a verb, it does not indicate that a country will soon blow out the lights and pull out the wax and change its doors. Take Iceland for example, even though its foreign debt far exceeds its GDP, it can still find ways to overcome the difficulties within the framework of the existing international order, such as borrowing from a big country like Russia and seeking assistance from the International Monetary Fund. In fact, as early as six years ago, the IMF had compiled a bankruptcy plan for sovereign countries, but its purpose was not to deprive a country of its sovereignty, but to establish an international financial mechanism of "bankruptcy protection" so that those heavily indebted countries could apply for "bankruptcy protection" and debtor countries could get out of the crisis as soon as possible.

From this point of view, Iceland, teetering in the financial crisis, is on the verge of "national bankruptcy", but it will not become a crisis victim like Lehman Brothers, or it is like a "raw rice" cooked in a pot of financial crisis, which is half-baked and difficult for anyone to swallow as prey. Only in the end, the huge foreign debt will be pressed on the small body of 3 thousand people, and it will be repaid slowly at the cost of overdrawing Iceland's national credit and the happiness index of several generations of Icelanders.

Now the people of Iceland are living a good life. The country is poor and the people are rich, which is not as serious as I thought. Now that I am here, I feel ok!