Defence Minister Stephen Smith and Foreign Minister Bob Carr have been in Jakarta this week for the annual 2-2 Australia-Indonesia talks. It was a business-as-usual dialogue, with few major announcements.
When your country is always on a war footing, how do you know you are on the brink of war? When your political leadership and government propaganda constantly remind that your enemies are plotting against you, how do you know that times are more tense than normal?
Every country has detailed procedures to govern private sector bankruptcy. These allow the residual assets of the insolvent company to be divided equitably between creditors. The insolvent party can begin again, reputation damaged but at least able to move forward with the slate wiped clean.