Sunday, January 15, 2006

Why CEOs Should Never Wage War

Excellent post by pessimist via leftcoaster:
It is only one who is thoroughly acquainted with the evils of war that can thoroughly understand the profitable way of carrying it on.
So said Sun-Tzu in The Art of War, chapter II-7
((snip) Do go read the whole post)

The evidence is fairly clear that Bu$hCo is in over its head.

In their first venture, Petroleum Pipeline Pathways of Afghanistan, after almost five years (yes, it has sadly been that long!), there is still no progress on the construction of that project. The local project leader, ex-UNOCAL exec Hamid Karzai, has been attempting to approach local leaders to back the project - without success - after a hostile takeover also failed to yield profitable results. In fact, there are reports that a counter-takeover may well be in the works. The coming proxy fight should enliven discussions in the Oval Office!

Bu$hCo's partnership with Mushareff Enterprises is suffering some strains as well, as a recent effort to eliminate a competitor seems to have not achieved the desired result. Relations between the partners are reported to be strained as executives of both partners meet to discuss the poor performance of field operatives.

In yet another disappointment to Bu$hCo shareholders, the leveraged buyoff of the Iraqi petroleum industry is still incomplete almost three years after announcing a successful conclusion. Local conditions are quite unsettled, and the recent demise of an important local official isn't helping any.
In addition, a legal action taken against a former director of the Iraqi petroleum industry has run into difficulties as the lead jurist trying the case has resigned after declaring he was considering such a step for a while.

With local election results considered untrustworthy, and with a new scandal developing, local citizens are expressing unhappiness over the increasing costs of vital commodities.

Economically, this leveraged buyoff has now cost shareholders $1 TRILLION dollars - an amount which is beginning to cause unrest among those financing the venture

Juan Cole points out rumors flying in Egypt.
Rumors are flying in Cairo that the US is asking Arab countries to send troops to Iraq to prepare the way for a US withdrawal. This quest is said to underlie the mission of Vice President Richard Bruce Cheney to Egypt and other Arab states beginning Sunday....(more).
So it seems chimpyco may finally be trying to liquidate their losing venture, but it's a buyers market, and there is little if any interest in assuming this deal. The only way they pawn this thing off on the Arab league will be to sweeten the pot heavily, and at what cost to us? Wonder how they'll try to spin that?


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