Instead of glass prisms, Icelanders are looking forward to a different Chinese cargo in the dying weeks of the year: fireworks. They set off more per person each new year than any other country in the world. Such is the demand that the Chinese manufacturers are making a special loan to Icelanders to buy them, according to a local newspaper.
Almost no other private creditor is lending them anything; Iceland has turned instead to the IMF.
This little throw away line buried in a story about Iceland’s problems demonstrates how insane the Chinese business model is. As the broader article makes clear, the other shoe has not dropped yet as far as Iceland is concerned. Iceland owes the world a lot of money that is never going to be repaid.
So what are the Chinese manufactures dong loaning money to Iceland for fireworks? I can only think that they are determined to keep their exports from dropping off. But really, how short sighted can you get? There is a reason why nobody else is loaning Iceland money.