A shout-out for a terminological insight

Periodically one comes across sensible, calm analyses of American policy in the Middle East which announce in calm, sensible terms that the war on Iraq wasn't "about oil" because it is not in the national economic interest of America to invade Iraq to try to control its oil. I agree with this assessment, but it misses the point.

In a comment thread on the Nielsen Hayden joint blog Making Electro, Teresa N H finally dug up the term of art for the governmental policies of the Bush/Cheney administration:

In the meantime, Bush & Co.'s friends have been doing a fast job of looting the country.

Huh. I've suddenly realized that I know the form of this scam: it's a blowout.

Here's the deal: Your basic blowout starts when crooks take control of a legitimate business that has a good credit rating, most often by entering into an agreement to buy it from its original owners, and possibly making a token initial payment.

In the next phase, the crooks start placing large orders for easily liquidated merchandise with the business's regular suppliers, and also with new suppliers who think they've acquired a valuable new customer. And since the orders are coming from an established business with a good credit rating, the suppliers don't ask for payment up front.

Meanwhile, the goods are being resold as fast as they come in, often at a fraction of their value. It's hugely wasteful, but the crooks don't care. Essentially, they're selling off other people's stuff and keeping the money, so anything they make off the deal is pure profit for them.

The suppliers send in their bills in due course, and meet with delays in payment. That's not an uncommon thing; and in the meantime, nobody wants to lose a customer that's obviously doing so much business. It takes some time for suppliers to start balking, and more time for them to start aggressive collection procedures.

At that point the business's new owners vanish, and all the money vanishes with them. Since they've never actually paid the agreed-upon price for the business, it reverts to the original owners. Unfortunately, what they get back is a plundered company that's deeply in debt to its suppliers and has a wrecked credit rating.

Thus with the national situation. The looting has been swift and efficient, but it's taken a while for the full extent of the plundering to become apparent. We're going to be feeling this one for a long time to come.

I've been quite aware that this was the policy all along, but I had forgotten that it was an established pattern. One of the later commentors noted that Henry Hill discusses blowouts in Wise Guy, which was the basis for the film Goodfellas.

And doesn't it make you sick to your stomach to realize that the best vocabulary for describing American policy is that of organized crime?

(Props to Atrios Avedon for digging this post out of the comments and giving it the prominence it deserves.)

Amendment: del_cotter points out in comments that the proper term is "bustout". Googling on 'bustout mafia' gets, as a very early hit, a Josh Marshall piece for The Hill describing the Medicare bill in those terms.

RIP, Dear Aimee Semple McFurrson (2003-2005)

Not much I can add to this excellent obituary by nellorat. However, a couple of pictures follow after the cut-tag.

( Aimee, Young and Old )