Europe stands ready to swallow up Iceland

The European Commission are ready to fast track Iceland towards EU membership. Images of flies, webs and spiders immediately come to mind.

If Iceland does reluctantly join, the EU will be getting a bargain. The country would have to submit to the strictures of the Common Fisheries Policy. Iceland would quickly find their waters invaded by ravenous Spanish and Portuguese industrial fishing boats, busily hovering up the last great fishing stock in Northern Europe. What would the Icelanders get in return? A bailout and the opportunity to convert worthless Kroner into euros.

Iceland's sorry predicament serves as a stark warning to the dangers of allowing irresponsible financiers to run the show. In return for a few short years of rapid economic growth, followed by a catastrophic debt-induced recession, Iceland is about to lose their independence.

It isn't hard to see a similar scenario here. Although the UK has already handed over much of her independence to Brussels, monetary policy is still under the control of London. However, as the crisis deepens, UK monetary independence looks increasingly vulnerable. The pound could quickly follow the Kroner.