Hey Friends...
Ok. I'm NOT saying that I have the solution to the Somalia Piracy Problem.
Saturday's Wall Street Journal had a whole article on this.
He's my solution. Debate me, add to it, or come up with your own solution.
But the problem seems to that "people" are obviously paying the ransom demands.
Lets face it... you have $100 Million in Oil - Pirates sieze the ship - and they ask for 10 Million or they blow up the ship.
So basically, the peeps that own it - kind of feel like it's some kind of "cost of doing business' thing.
Ok.. my solution:
A 1 percent tax on the gross of every shippment there. But this tax gives you two thing:
1) An insurance policy on your shipment with at 5 percent deductable (what you would have paid the pirates anyway).
2) Additional protection by a Intenational Pirate Police.
A Pirate Police that not only patrols the area - but attack and kills without negotiation.
This is how it works...
Lets say you have 10 ships going by there a year. Each shipment has $100 Million in Cargo or Oil or Whatever.
You pay the the International Pirate Police $10 Million.
But if ANY of the ships get hijacked... you pay a deductable of 5% or 5 million.
But if the Pirate Police fails - your ship is insured for the whole $100 Million.
This would do:
1) Make it so the pirates KNOW that they can't negotiate anymore.
2) The Pirate Police would be so well trained - because if they failed to rescue the ship - they would end up having to pay for it anyway.
3) For 1 percent of your gross - you would insure your shipments.
Your thoughts.
Confucious