"if NSA is spying and they did watch us here in Iceland ..then we must be under the terrorist hat ? right ..."

No...wrong... that simply breaks the rules of logic as a coherent argument. There is an **equivocation** on the word "watch" in it ...to go along with the equivocation on "spying". "Watch" as a term that means different things in different contexts can't just be tossed into a discussion as if it proves something!

You MUST realize the sense of word describing what the NSA 'may' be collecting... metadata... which simply means data about phone numbers or email contacts (not their content)which 'may' come from or go to a suspected terrorist. Then....*IF* a series of suspicious calls or contacts is noted, there can be a *court order* obtained to monitor the content.
The USA doesn't have enough NSA or FBI agents anywhere to 'spy' on people in Iceland... much less 40-50 other countries. We are talking hundreds of millions of calls, emails..etc. They are looking for METADATA... which 'may' lead them to a reason to 'spy' on a dozen suspicious links.