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Economic basket cases abound at the moment, but none quite so fraught as Iceland. Little country, great trouble. Its financial system has collapsed because its foreign debt is ten or even twelve times the size of the economy. There's no chance of repaying it. Trading in the local currency, the krona, has been suspended. The IMF hovers in the background, and there is talk of adopting the euro, or pegging the krona to it. The banks that were offering all the credit that gave rise to the debt mountain have been ...