AIG CEO Edward Liddy looks back at protestors from the group "Code Pink" as he arrives to testify before the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises in Washington, March 18, 2009. (Jason Reed/Reuters)

AIG: Adventures in geopolitics

DiggThis

Yes, bonuses are an outrage. But they're much more than that.

By Thomas Mucha
Published: March 19, 2009 11:00 ET

“Arrogance. Ignorance. Greed.”

“A stone in America’s shoe.”

“All the (AIG) executives and their families should be executed with piano wire around their neck.”

These comments are but a tiny sampling of the outrage that exploded in the U.S. this week over the latest AIG mess — $165 million in “retention bonuses” paid to executives of the failed firm.

But as the Obama administration scrambles for a response to the domestic political peril posed by AIG, and the House of Representatives scrambles for legislation that will tax bonuses like these, the reaction we should be paying the most attention to is occurring far outside the Beltway.

Listen carefully to Chinese Premiere Wen Jiabao:

“We are very concerned about the economic developments in the U.S. economy,” the Chinese leader told reporters late last week. “We have lent a huge amount of money to the United States and of course we’re concerned about the security of our assets and, to be honest, I am a little bit worried.”

In the rarefied and reserved world of public diplomacy, this is a smackdown. It’s like your banker calling you into his corner office and saying: “Cool it on the spending. Now.”

China is the largest holder of U.S. debt, passing Japan in September for that honor. The country now owns roughly $1 trillion in U.S. Treasuries and other government-backed bonds, or about $1 dollar for every $10 in U.S. debt.

Comments:

No Comments.

Login or Register to post comments

Recent on Commerce:

Looking sexy to sell nuts in Taiwan

Jonathan Adams - China and its neighbors - February 9, 2010 06:43 ET

Photo essay: In Taiwan, fetching young women in outrageous outfits sell betel nuts. Is this a tourist draw, or national shame?

India: The farmer's unhappy wives

Hanna Ingber Win - India - February 8, 2010 13:30 ET

Indian widows struggle mightily after a rash of farmer suicides.

Chickens: made in Brazil, sold in Iraq

Seth Kugel - Brazil - February 8, 2010 06:51 ET

Brazil's exports to Iraq have exploded in the last year and poultry is leading the charge.

Greek prime minister fights "credibility deficit"

Nicole Itano - Europe - February 8, 2010 06:40 ET

George Papandreou has stuck by his pledge to increase transparency despite economic woes.

Chile safeguards its food export success

Lezak Shallat - Chile - February 7, 2010 09:18 ET

Traveling to Chile? Don't even think about sneaking in an apple and cheese.

Can Toyota Digg its way out of recall crisis?

Thomas Mucha - Commerce - February 7, 2010 09:07 ET

The reeling Japanese automaker turns from old school PR to new media.

Opinion: Africa needs free market economies

Marian Tupy - Worldview - February 6, 2010 11:51 ET

Gates money for vaccines will help Africa's children, but better economic policies will help them more.

On Location: Shoul, Morocco — On the organic food frontier

Solana Pyne and Erik German - Morocco - February 5, 2010 06:55 ET

NYU unveils labor guidelines for Abu Dhabi campus

Tom Hundley - Middle East - February 5, 2010 06:44 ET

Human rights advocates warn that the workers building NYU's new campus could be forced laborers.

Japanese consumers tighten spending

Sonia Narang - Japan - February 5, 2010 06:30 ET

Once a hallmark of Japanese consumer culture, convenience stores are the latest casualty of the worldwide recession.

On Location: Sinaloa — The front lines of Mexico's drug war

Ioan Grillo and John Dickie - Mexico - February 4, 2010 09:13 ET

Video: Moroccan winemaker thrives

Erik German - Morocco - February 4, 2010 09:12 ET

Despite Muslim prohibitions, wine produced and sold from vineyards older than Roman times.

Sierra Leone boosted by World Bank

Kimberly S. Johnson - Africa - February 4, 2010 06:42 ET

Country's economy is still rebuilding after devastating civil war.

Opinion: How did China get double-digit economic growth?

Joel Brinkley - Worldview - February 3, 2010 11:17 ET

By dealing with some of the world's most repugnant regimes. Iran is just the latest on a long, long list.

Nigeria's oil rebels end cease-fire

Shyamantha Asokan - Global Green - February 2, 2010 06:48 ET

Crucial Niger Delta oil production threatened, Nigerians ask where is President Yar'Adua?

No porn, no gore, no sensitive politics: Censored in Indonesia

Peter Gelling - Indonesia - January 31, 2010 08:54 ET

Has Big Brother moved back to Jakarta? Does it matter?

Opinion: Uganda should consult Ghana on oil

Stephanie Hanson - Worldview - January 30, 2010 11:46 ET

Good planning and transparency should help population benefit from new find.

Fordzilla vs. Japan

Thomas Mucha - Commerce - January 30, 2010 09:40 ET

It may not be a giant radioactive lizard, but Ford is stomping all over Japan's auto industry.

Special Report

Thomas Mucha - Commerce - January 28, 2010 17:24 ET

20 correspondents, 20 countries and a world of pain. Meet the ground truth of the global economic crisis.

Top budget retirement destinations abroad

News Desk - Worldview - January 28, 2010 07:33 ET

Looking for a fabulous place to retire on a budget? GlobalPost picked 10 intriguing overseas locales where you can stretch every dollar.