Were the practice of legitimating debt repudiation by prosecution of those responsible for the assumption to become a recognized principle of international law it might seriously impede the ongoing, world wide fleecing of taxpayers.  

 
Absolutely right.  Which is why there is no chance that such a principle will be recognized.  

Unfortunately, while Iceland has shown a willingness to throw the rascals out they have not, as yet, shown any stomach for throwing the rascals in jail.

 
There is no legal way to do this, as the rascals own and control the Icelandic government.  To throw the rascals out would require the overthrow by force of the Icelandic government.  Sadly, Iceland does not seem ready for this necessary step.  

The Fates are kind.