Asgard readily accepted the Earth United Government's proposal. Loki saw it clearly: ever since Odin had been defeated by He-El, Asgard no longer had any room to bargain. The Earth United Government had not interfered in the political affairs of the other nations of the Nine Realms, but the goodwill radiated by this diplomatic move—even if it was not intended to drive Asgard to extinction—would still reduce Asgard's deterrent hold over the Nine Realms to the lowest point, making it difficult for the other nations to trust Asgard.