Government Takeovers: Another Weapon and a Truly Fearsome One - Thank God I bought some liquor today

[seemslikeadream]

http://powerofnarrative.blogspot.com/2008/09/government-takeovers-another-weapon-and.html

Consider. Country A through Z (look at that graphic again, lots and lots of countries all around the world, probably most of the countries on the globe) wants to renegotiate thousands, perhaps millions, of insurance policies. Or it wants a break on some rates, perhaps for a crucial construction project. Or it needs a grace period to make some payments, maybe in connection with a major government program. Or...fill in the endless possibilities at your leisure.

And the United States now says: "Well, sure! We'd love to help you out. In exchange, how about granting/extending/giving us better terms on those basing rights?"

Or: "But you know what we'd like? First rights to those valuable resources of yours. Plus waivers of all those environmental protections you have in place." Probably plus a bunch of other things.

Or: "We'd be happy to do that for you. But we need some overflight rights for the next year. Make that three years. We may have a few, well, operations we need to execute. We're sure you understand."

Or: too many possibilities to begin to list.

Get it? And if Country A through Z says, "no" ... well, gee, too bad, says the United States. Guess we can't accommodate you. How many people, and businesses, and governments do you think will say no, as the screws begin to tighten?

The AIG takeover is a huge weapon. A monumental weapon. I'm certain it is far from the only weapon of this kind the U.S. government already possesses. And as the economy further weakens, the U.S. government will probably pick up some more. (Here, I am referring to comparatively new mechanisms of coercion, pressure and extortion, such as those described above, in addition to those "normalized" and "legal" forms of coercion, pressure and extortion that have been among the major instruments of U.S. foreign policy for decades.)

[TomInTib]

1. This is an all-too-real scenario.

My evil step-father used to run one of the largest Engineering and Construction firms on the planet (you'll never guess which one), and one of the biggest factors and obstacles to any project was insurability.

This AIG takeover will have a huge effect on international projects. A lot of companies will tank unless they have someone on the inside of this deal.

[seemslikeadream]

2. international projects?

[aquart]

3. What happens if the divisions are sold off?

And why didn't we insist that AIG take the offers it refused?