Categories
Economics Financial Crisis The Opinionsphere

Theories of the Financial Crisis: Greed

[digg-reddit-me]

George Will may seek to defend greed (Or maybe not – it’s actually kind of hard to tell.) – along with Ayn Rand and other market fundamentalists.

But just about everyone else lists it as a fundamental cause of the financial crisis. Will tries to make the case that free markets punish greed. But what Will presumes is that an unregulated market is a free market – and on this fundamental point he is wrong. The market Will describes is not one heavily regulated by the government – but it is regulated by ebay which in this instance takes on the role of the government for this small market. The financial markets on Wall Street though were largely unregulated – especially the shadow banking system (which was created in such a way as to be unregulated) – and they were in this sense free from government interference. But they were controlled by a small number of individuals – and in this sense were part of a world where freedom was available only to a princely few. Will makes the point that greed is an immutable human characteristic – and thus does not account for the booms and busts of our business cycle (and of financial crises such as this.) But what does is the combination of perverse incentives for short-term profit (indeed a form of legal fraud), a relaxation of the regulations designed to keep the markets stable that tends to occur when Republicans have power, and greed.

There has always been an historical wariness in America about the combination of greed and concentrations of wealth – focusing on a national bank, on various financiers, on “the malefactors of great wealth” and indeed, on Wall Street. The people, in their wisdom, could see that this concentration of financial power undermined the democratic distribution of political power. But by the 1980s, there was an additional reason to be wary – as Ronald Reagan unleashed a money revolution. This money revolution – like all revolutions – was the commingling of many forces – globalization, the ad-hoc Bretton Woods II agreement, and the relaxation of regulations and reduction of taxes. This revolution helped to concentrate an increasing percentage of the world’s wealth in the hands of a small number of Wall Street (and also London) bankers. The function of these bankers – their expertise – was to balance risk and profit to their customers’ satisfaction – to maximize profit for themselves and their customers while minimizing (or controlling for) risks. As a small percentage of individuals accumulated more and more wealth around the world, these individuals entrusted more and more of this wealth to Wall Street bankers – and the more money the bankers controlled, the bigger their cut. As Michael Osinski explained in a piece for New York magazine:

When you’re close to the money, you get the first cut. Oyster farmers eat lots of oysters, don’t they?

This closeness to the money created an easy money culture – in which enormous sums money were distributed whether they was deserved or not and the culture began to prize attempts to satisfy the bottomless desire that is greed. Wall Street bankers took on the culture of gamblers – except with the market going up, everyone made money. The long boom began to create perverse incentives – as risks began to seem safer, as luck and a rising tide and short term profits made everyone seem like geniuses, they all became accustomed to a certain lifestyle. Financial innovations sought to overturn many of “the fundamental rules of banking” including “that default risk is an inevitable liability of the business.” The combination of innovation and the culture of greed and gambling led to greater and greater risks being taken.

As steady foundations of banking – both as a business and as a culture deteriorated – and as the cautionary tales of Oliver Stone’s Wall Street and Liar’s Poker morphed into guides – a new culture of excess developed – excessive greed, excessive pay, excessive drinking, excessive spending, excessive personal risks, and eventually excessive professional risks. Wall Street bankers began to betray all the symptoms of the easy money culture – like gamblers whose knew their earnings were ephemeral and that every up would be followed by a down to be followed by an up – as long as they could stay at the table. But as Matt Taibbi wrote,  “this was a casino unique among all casinos, one where middle-class taxpayers cover the bets of billionaires…”

Osinski tells a story of how this easy money culture affected the individuals:

Now that I was spending more time on the floor, I wondered why the men’s room always stank. Then one afternoon at three, when I was in there taking a leak, I discovered the hideous truth. Traders had a contest. Coming in at eight, they never left their desks all day, eating and drinking while working. Then, at three o’clock, they marched into the men’s room and stood at the wall opposite the urinals. Dropping their pants, they bet $100 on who could train his stream the longest on the urinals across the lavatory. As their hydraulic pressure waned, the three traders waddled, pants at their ankles, across the floor, desperately trying to keep their pee on target. This is what $2 million of bonus can do to grown men.

This easy money culture warped the incentives at Wall Street firms as well – as they were structured in such a way as to generously reward short-term success (without controlling sufficiently for long-term failure.) Rather than being paid large salaries, most of a banker’s income was handed out in enormous bonuses based on yearly performance. As long as fees were generated, as long as this quarter’s profits were growing – bankers would be rewarded with enough profits to last a lifetime. This alone is enough of an incentive to cause massive fraud. But at the same time, the culture of Wall Street ensured that money would be spent ridiculously, ostentatiously, and quickly. 

Perhaps no one has been more articulate in his visceral disgust for the excesses of Wall Street than Matt Taibbi of Rolling Stone

[I]t’s time to admit it: We’re fools, protagonists in a kind of gruesome comedy about the marriage of greed and stupidity. And the worst part about it is that we’re still in denial – we still think this is some kind of unfortunate accident, not something that was created by the group of psychopaths on Wall Street whom we allowed to gang-rape the American Dream.

The story of AIG – in its way – symbolizes better than anything else what this culture did to Wall Street. Back to Taibbi:

AIG is what happens when short, bald managers of otherwise boring financial bureaucracies start seeing Brad Pitt in the mirror. This is a company that built a giant fortune across more than a century by betting on safety-conscious policyholders – people who wear seat belts and build houses on high ground – and then blew it all in a year or two by turning their entire balance sheet over to a guy who acted like making huge bets with other people’s money would make his dick bigger.

A culture of greed and excess – a lack of respect for tradition – a market free only to a princely few – negligence bordering on fraud with regards to the evaluation or risk – and an increasing percentage of the world’s wealth concentrated in the hands of a few. Together, these were the recipe for this financial disaster. 

The problem with greed is that it is unsustainable. It exists in a cycle, like all unsustainable desires. Government regulation, like morality, seeks to control and channel greed in less destructive ways – to mitigate the effects of this cycle. The true cause of this financial crisis was not greed – but the ideology that held that finally the immutable human vice of greed had been overcome with clever financial innovation and the magic of the market.

Categories
National Security Politics The Bush Legacy The Opinionsphere The War on Terrorism

A Truth Commission

While not rejecting the idea of prosecutions for clear cases in which the law was broken, there seems to be a growing consensus about the necessity of a truth commission. It has become more and more clear that the fault lies within our system as much as it does in particular individuals. Jeffrey Record reviewing Jane Mayer’s The Dark Side [pdf] for the Army War College journal, Parameters quotes Supreme Court Justice Louis Brandeis whose insight points towards both why we need a truth commissin of a type – and why prosecution is not the most effective option (h/t Tom Ricks):

[T]he greatest dangers to liberty lurk in insidious encroachment by men of zeal, well-meaning but without understanding.

This goes to the argument that Bush administration apologists keep making – that these officials were acting in good faith, were panicked, and though they may have broken some rules, they did so to protect American lives. But this is precisely what Brandeis saw was the most serious danger to liberty. 

Tom Ricks gives his opinion of what we need – basing his argument on military strategy – rather than the protection of our way of life:

Just because you have an embarrassing problem, you shouldn’t try to hide it, because dealing with it may prepare you for an even bigger challenge down the road. So let’s get the torture and interrogation situation straightened out before the next big terrorist attack. My preference, as I’ve stated before, is for a truth and reconciliation commission that offers an amnesty period during which people would be invited to step forward. Anyone not ‘fessing up during that time would face the possibility of prosecution. Again, I think this effort should target those who departed from American history and made torture national policy.

Maureen Dowd has also come around – and she too is looking at the perverse effect on our system of checks and balances that not following up on this matter is having:

I used to agree with President Obama, that it was better to keep moving and focus on our myriad problems than wallow in the darkness of the past. But now I want a full accounting. I want to know every awful act committed in the name of self-defense and patriotism. Even if it only makes one ambitious congresswoman pay more attention in some future briefing about some future secret technique that is “uniquely” designed to protect us, it will be worth it.

Categories
Barack Obama Criticism Law Politics The Opinionsphere

Conservative Empathy

Doug Kendall and Dahlia Lithwick take on the conservative attacks on empathy by pointing out the hypocrisy of the position:

Every time Justice Antonin Scalia writes a habeas opinion that begins with the depiction of a gruesome murder, he is evincing empathy toward the victim. When Chief Justice John Roberts battled for the rights of white schoolchildren facing arduous bus trips and educational hardship due to school integration programs in Seattle and Kentucky, he was evincing empathy for the white “victims” of affirmative action. It’s a patent falsehood that liberal judges weep and bleed for their plaintiffs while conservative jurists treat plaintiffs with stony indifference. And smart advocates on either side, knowing that, seek out “sympathetic plaintiffs” for litigation precisely because they are attempting to appeal to some part of the court’s lizard brain; the part that does more than mechanically apply the law to the case.

I think that’s about right.

Categories
Economics Politics The Opinionsphere

David Brooks’s Special Place in Washington

I’ve written before about David Brooks’s special place in Washington – as the almost always 

reliable barometer of the opinions and beliefs of the Washington establishment (and I don’t mean that as an insult.) The figure he cuts is a rather odd combination of an amateur (but insightful) anthropologist and a insider protecting the system.

There is an honesty about him, and his writing – an earnestness.

This observation from last Friday’s column struck me as probably true – and worrying:

If you read the C.B.O. testimony and talk to enough experts, you come away with a stark conclusion: There are deep structural forces, both in Medicare and the private insurance market, that have driven the explosion in health costs. It is nearly impossible to put together a majority coalition for a bill that challenges those essential structures. Therefore, the leading proposals on Capitol Hill do not directly address the structural problems. They are a collection of worthy but speculative ideas designed to possibly mitigate their effects.

In his way, I think David Brooks represents the best of what a columnist can offer – honest, informed opinions of intelligent people trying to make sense of the world around them.

Categories
Criticism Iraq National Security The Opinionsphere The War on Terrorism

Contra Taibbi: Fighting Them Over There So We Don’t Need to Fight Them Here

The thing is, we’ve been listening to this stuff for so long that when we hear it, we don’t recoil in confused disbelief anymore — we’re so familiar with these arguments we’ve forgotten that they don’t make any sense. It’s similar to that other Bush-era standard: “We fight them over there, so we don’t have to fight them here.”

I never understood what the hell that was all about. The best I could figure is that the people who were saying this think of the world like a big game of Risk, and they think that if we commit a big force to some place like Iraq, the “other side” will have to leave all his forces over there or something to keep us from moving through Eurasia. This might make sense in a real war, in a war-between-nations war, but it’s completely absurd in a conflict where the “other side” is actually hundreds if not thousands of different/unrelated actors and can successfully attack a country like the U.S. using just a few people at a time. Sending 160,000 troops to Iraq does absolutely nothing to prevent a terrorist group like al-Qaeda from sending over a couple of “exchange students” to dump botulinum toxin into the Akron reservoir.

That’s Matt Taibbi in a recent blog post. Given his explanation, he clearly is missing something.

One understanding of terrorism holds that acts of terrorism are a reaction to the fact that many people in the world have no say in how they are governed. They realize that who Americans elect as their president has a more of an impact on their lives than their local leaders. Yet – they have no vote in this matter – and few ways to affect what America does. Those who are especially frustrated and determined and who value life least see there is a way they can impact America – how they can make their views matter. They can commit an act of terrorism against America – or American interests.

This understanding of the root cause of terroism is implicit both in many liberal critiques of the War on Terror and in Bush’s democracy promotion. Liberal critiques tended to see our doubling down in our support of tyrants in the region as kong as they were anti-terrorist as contributing to the sense of alienation. The neoconservatives saw democracy as a kind of safety valve in which these frustrations could be channeled – which is why they were so focused on promoting it in the Middle East. 

If terrorism is the means by which people whose views are not represented make themselves heard by those who have the power to change their lives, then allowing them to fight us over there does make it less likely we will be attacked at home. It provides an outlet in which they can channel their displeasure – killing American soldiers. It’s easier to travel to Iraq or Afghanistan than to America – and to participate within structures already set up while attacking outsiders – than to work undercover in an American sleeper cell, plotting against the people with whom you have contact every day.

Taibbi is right that leaving ourselves vulnerable over there doesn’t preclude them from attacking us here – but that mis-states what the “fighting them over there” idea is about. The fact that we can be attacked over there provides a release valve for frustrations – in a way similar to having a democracy where people could vote anti-American politicians into office would. 

I’m not sure if I buy this theory. And it’s not clear that even if it is true, that the overall approach is effective – because after all, by responding to attacks on us, we probably create more ill-will than we have allowed to be “released.” But there is a coherent view behind this – and mocking it doesn’t make it less so.

Categories
Barack Obama Financial Crisis Law Politics The Opinionsphere

Obama and the Rule of Law


[digg-reddit-me]Right-wingers and some conservatives are trying out a new approach in their attacks on Obama – as you can see from the growing meme on the right that Obama has no respect for the Rule of Law. I’ve come across this meme in a George Will column, a Wall Street Journal editorial, and in a blog post by Jim Manzi for the National Review / The American Scene all last week. All three authors have focused on one particular event – Obama’s role in the Chrysler sale/bankruptcy/bailout. I for one am glad to see the National Review and Wall Street Journal finally coming around to accepting the importance of the Rule of Law after eight years of promoting George W. Bush’s blatant disregard for the law – but I digress.

The past eight years have demonstrated to many Democrats and liberals the vital importance of the respect for the Rule of Law to a well-functioning state – as President Bush concentrated more and more power in the White House and asserted authorities both beyond and over the law – which is why an accusation that President Obama is not respecting the Rule of Law must be taken seriously.

It is hard though to take the example all three authors use seriously – Obama’s intervention in the Chrysler mess. I can understand why people might object to what Obama did – if you consider unions to be a malevolent force, you certainly don’t want them helped out – and it is unseemly that they donated so much to Obama only to be rewarded now (of course, the creditors also gave Obama a great deal of support.) But neither of these objections is based on Obama disrespecting the Rule of Law.

Certainly, even these authors are not accusing Obama of disrespecting the Rule of Law in the same manner as George W. Bush – who did not believe he was bound by law when acting to protect Americans. The unitary executive theory he accepted and Cheney, Addington, and others used, is a direct assault on the idea that the president is bound by the law. Obama does not take this position.

These authors make a big point of the fact that Obama is abrogating contracts – but this objection is a bit silly. Obama is not a party to these contracts – and thus has no obligation to honor them personally. The Contracts clause of the Constitution – the Law which it is being alleged Obama has broken – was meant to constrain the individual states rather than the President or even the Congress. Congress was in fact given the power to abrogate contracts through bankruptcy proceedings in the Constitution. Obama – in intervening in the case of Chrysler – helped to negotiate an out-of-court settlement of the matter. Out-of-court settlements happen all the time – and are welcomed by overburdened judges who see it as better to allow all sides to come to an agreement rather than having to order them to agree.

To call this a violation of the Rule of Law is disingenuous at best.

What these authors are right to be concerned about is the concentration of power that undermines the system of the Rule of Law – as the government’s role in backstopping the finance and auto industries leaves it with enormous leverage. But their fears should be allayed by the fact that most of these interventions are temporary. (Of course, George Will is on the record disbelieving this based on the old adage – as are all of Will’s beliefs – that once government has taken a power, it will not give it up.)

Liberals have continued to voice a different set of concerns about Obama’s respect for the Rule of Law – pointing to the many Bush administration positions Obama has accepted. But they key difference between Bush and Obama is that even as Obama may be putting forward positions on these issues which are controversial, Obama has given the sense he will concede if his legal means of asserting these claims are defeated. Bush in at least one instance refused to end a clearly illegal program despite the fact that his own Justice Department had declared it illegal. 

I do find a few areas of concern. The power of the executive branch has grown enormously in the financial crisis – between the Stimulus Bill and the bank bailout. While in the short-term this may be necessary, if steps are not taken, this would undermine the balance of power between the federal government and the states. While this in itself is not a violation of the Rule of Law – it does weaken the system which together helps maintain the Rule of Law. And it is this that conservatives and right-wingers seem to be ojecting to – but their rhetoric about the Rule of Law being disregarded is hyperventilationist – and for those who did not likewise say the same of our previous president, hypocritical.

But by far the most disturbing manner in which Obama is undermining the Rule of Law is in how his administration is keeping Bush’s policies on the matter of Bagram. The Supreme Court’s ruling on the rights of detainees to certain basic rights at Guantanamo was in a large part based on the idea that our government should not be able to deprive an individual of rights merely by moving them to a particular location. But this is exactly what the Obama administration is claiming with regards to the detainees brought to Bagram from around the world. Our nation’s freedoms are grounded in our traditions. This includes a respect for contracts, a balance of various powers, and an energetic chief executive – but at it’s base, our traditions are grounded in a single, fundamental restriction on the state. To quote Winston Churchill:

The power of the executive to cast a man into prison without formulating any charge known to the law, and particularly to deny him the judgment of his peers, is in the highest degree odious, and the foundation of all totalitarian government whether Nazi or Communist.

Categories
History Humor Iraq Morality National Security Reflections The Bush Legacy The Opinionsphere The War on Terrorism

Must-Reads This Weekend

Nuclear Porn. Ron Rosenbaum writes about how hard-core our nuclear fantasies have become in an essay for Slate:

I love airport best-sellers because I see them as our Nostradamuses, the literary canaries in the dark coal mines of our paranoia. They sniff out and serve up fictionalized but “realistic” prophecies of coming doom of one sort or another. Perhaps it’s that in their visions of total world immolation they diminish in the mind of said traveler the possibility of something so trivial as a 757 engine malfunction.

The Awakening. David Rose investigates the Sunni Awakening in an article for Vanity Fair. The big news: apparently the initial approach by the Sunni insurgents offering to work with America came in 2004 – but was rejected as a result of turf battles and ideology. 

Happiness. Joshua Wolf Shenk tells the story of the most significant longitudinal study in history (so far). He reveals that one of the participants in the study (all of whom were chosen while they were in college) was John F. Kennedy. The study itself is fascinating – and Shenk’s piece was reflective and probing:

“I’m usually callous with regard to death, from my father dying suddenly and unexpectedly.” He added, “I’m not a model of adult development.”

Vaillant’s confession reminded me of a poignant lesson from his work—that seeing a defense is easier than changing it. Only with patience and tenderness might a person surrender his barbed armor for a softer shield. Perhaps in this, I thought, lies the key to the good life—not rules to follow, nor problems to avoid, but an engaged humility, an earnest acceptance of life’s pains and promises…

Torture and Truth. Ali Soufan testified in Washington – but while he was constantly interrupted by an edgy Lindsey Graham, his written statement is a testament of a man who was there: 

The issue that I am here to discuss today – interrogation methods used to question terrorists – is not, and should not be, a partisan matter. We all share a commitment to using the best interrogation method possible that serves our national security interests and fits squarely within the framework of our nation’s principles. 

From my experience – and I speak as someone who has personally interrogated many terrorists and elicited important actionable intelligence– I strongly believe that it is a mistake to use what has become known as the “enhanced interrogation techniques,” a position shared by many professional operatives, including the CIA officers who were present at the initial phases of the Abu Zubaydah interrogation. 

These techniques, from an operational perspective, are ineffective, slow and unreliable, and as a result harmful to our efforts to defeat al Qaeda. (This is aside from the important additional considerations that they are un-American and harmful to our reputation and cause.) 

Categories
Barack Obama Criticism Morality National Security Politics The Bush Legacy The Opinionsphere The War on Terrorism

Cheney Is Preemptively Politicizing The Next Attack

[digg-reddit-me]Stephen Hayes of the Weekly Standard is reporting that the CIA’s Information and Privacy Coordinator has rejected Cheney’s request to declassify documents Cheney insists prove that torture worked. As the CIA explained in what is an apparently leaked excerpt from their letter to Cheney:

In researching the information in question, we have discovered that it is currently the subject of pending FOIA litigation (Bloche v. Department of Defense, Amnesty International v. Central Intelligence Agency). Therefore, the document is excluded from Mandatory Declassification Review.

Essentially, the CIA’s response is that the form of Cheney’s request is improper – though they are not excluding it’s release by other means.  Though the Obama administration could have reached out and helped out Cheney by intervening and (technically independent of Cheney’s request) releasing the documents, they chose not to at this time. This is what is actually going on behind the blaring headlines: White House Snubs Cheny!

In requesting these documents be released, Cheney was echoing Mark Danner, a journalist for the New York Review of Books who published the leaked Red Cross memos that documented the torture conducted by the Bush administration. Danner explained why we needed to declassify any relevant documents – even if they proved torture worked:

Mr. Cheney’s politics of torture looks, Janus-like, in two directions: back to the past, toward exculpation for what was done under the administration he served, and into the future, toward blame for what might come under the administration that followed.

Put forward at a time when Republicans have lost power and popularity—and by the man who is perhaps the least popular figure in American public life—these propositions seem audacious, outrageous, even reckless; yet the political logic is insidious and, in the aftermath of a future attack, might well prove compelling…

The only way to defuse the political volatility of torture and to remove it from the center of the “politics of fear” is to replace its lingering mystique, owed mostly to secrecy, with authoritative and convincing information about how it was really used and what it really achieved.

Danner argues:

This is the only way we can begin to come to a true consensus about torture. By all accounts, it is likely that the intelligence harvest that can be attributed directly to the “alternative set of procedures” is meager. But whatever information might have been gained, it must be assessed and then judged against the great costs, legal, moral, political, incurred in producing it. Torture’s harvest, whatever it may truly be, is very unlikely to have outweighed those costs.

As Dawn Johnsen, who Obama has appointed to head the office that under Bush authorized torture, wrote for Slate:

Our constitutional democracy cannot survive with a government shrouded in secrecy, nor can our nation’s honor be restored without full disclosure.

All of this demonstrates why Obama must release these memos – for only with full disclosure, with the Bush torture program subjected to the only disinfectant a democracy has – the sunlight of public opinion and inspection – only then can we come to a consensus on torture. This is the inevitable logical end of Obama’s stated positions. And there is reason to suspect this is still the plan. Those who have reviewed these documents (aside from Cheney) have said they do not prove what Cheney insists they do. As Stephen Bradbury, the compliant head of the Bush Office of Legal Counsel in 2005 who replaced the right-wing but independent Jack Goldsmith, concluded in a still classified memo (which seems to be referencing the memos in question):

[I]t is difficult to determine conclusively whether interrogations have provided information critical to interdicting specific imminent attacks…

So – if these memos don’t support the Cheney position – or offer only qualified support for it – why hasn’t Obama called Cheney’s bluff and just released them? Musn’t he be hiding something?

The one thing I have learned paying attention to Obama over these past few years is that it is often easiest to figure out what he means by listening to what he says. Obama has a way of setting a goal – then compromising, pushing deadlines off, hedging, keeping his mouth shut, and moving steadily forward – all while his opponents shriek and the media analyzes every small signal for portents of what is to come – until everyone misses the story and Obama’s goal is accomplished. This is the story of how Obama beat Hillary and McCain and of how the stimulus was passed.

On the issue of torture, Obama has been clear. He has ended the practice. He wishes to move on – but he does not wish to sweep the crimes of the Bush administration under the rug. He cannot appear eager to prosecute anyone – and he doesn’t seem to be. But he realizes that in a liberal democracy such as ours, there must be accountability. What is required is a balancing act – as he tackles the essentially political task of achieving a national consensus on the issue that will survive in the aftermath of the next crisis.

For Cheney, the political logic is also clear. He believes a crisis requires a strong executive empowered to do whatever is necessary. In defending this belief in the way he is, Cheney is setting Obama up to be politically kneecapped in the immediate aftermath of the next attack. Cheney is preemptively blaming Obama for the next significant terrorist attack – and preemptively politicizing the aftermath of that attack, preparing the ground for a resurgence of the Cheney model of the executive (which is in essence an elected tyrant). This is a truly dangerous game Cheney is playing.

Obama is struggling with how to counter this. He knows it is likely that America will be attacked in his first year in office. Both Bill Clinton and George W. Bush were tested in this way in the beginning of their presidencies. Obama must demonstrate that he is not going too far too fast in pushing back the Cheney model – lest that push be blamed for the next attack as Cheney wants it to be. Yet the Bush-Cheney policies are being legally challenged on every front – and even to delay rolling them back, Obama must defend them. What Obama needs is a gradual, thoughtful, public process.

My suspicion is that Obama will let Cheney continue to promise more openness and accountability. Cheney has already promised to testify before Congress; he is pressuring for the release of classified documents; he is making his case in the public arena. Cheney’s insistence on fighting this out in public will give Obama cover to convene a truth commission – perhaps Cheney himself may even call for one. This strategy would effectively deal with the very real threat that Cheney’s preemptive politicization of the next attack poses to the country and to the presidency.

And it means the photos just held back must be released; it means we must get to the bottom of what Nancy Pelosi knew and when she knew it; it means we must figure out what the well-timed leaks about Jane Harman and Nancy Pelosi were meant to accomplish; it means we must know how effective torture was or was not; it means we must have a truth commission. 

 

 

[Image by the World Economic Forum licensed under Creative Commons.]

Categories
Barack Obama Conservativism Criticism Economics Financial Crisis Liberalism Political Philosophy The Opinionsphere

The intellectual deterioration of the conservative movement

Richard Posner has written one of those posts that gets talked about despite it’s lack of hyperventilation – it’s a thoughtful, reflective piece on what he calls the “intellectual deterioration of the once-vital conservative movement in the United States.” Posner summarizes the deteriotion:

[T]he policies of the new conservatism are powered largely by emotion and religion and have for the most part weak intellectual groundings [such that]the face of the Republican Party [has] become Sarah Palin and Joe the Plumber. Conservative intellectuals [have] no party.

Posner sees this decline as a symptom of the movement’s success. I think he’s half right.

Philip Bobbitt posited some time ago his theory of the evolution of the state – from princely city-states to kingly states to imperial states to the modern nation-state. The next step – according to Bobbitt – the one to which we are already evolving – is the market-state. And while a nation-state was legitimized in the eyes of it’s people by ensuring people were provided for (thus setting up the economic battle of the Cold War, as capitalism and Communism competed on this front), the market-state is legitimized by offering the maximum amount of opportunity for it’s citizens. Bobbitt’s theory is interesting – and if not entirely perfect, it is certainly useful. 

Given this structure, you can easily understand how the nation-state liberalism of Lyndon Johnson gave way over time to the market-state liberalism of Bill Clinton and Barack Obama. By this reading, conservatism did not so much win any more than nation-state liberalism “won.” Both were appropriate responses to their times.

Unfortunately for it’s proponents, conservatism (like nation-state liberalism in the 1970s) did not evolve with the times, but remained staticly committed to the principles that worked so well three decades earlier. The innovative ideas of the 1980s have become the brittle orthodoxies of the present. As conservative historian Niall Ferguson explained – “only the left” has a credible response to the issues of our day. The Right is still fighting the battles they won decades ago.

Categories
History National Security The Bush Legacy The Opinionsphere The War on Terrorism

The Lessons of Torture in World War II

[digg-reddit-me]When I first started this blog, I told the story of two different interrogations at the beginning of Bush’s War on Terror – one using traditional methods which yielded actionable intelligence; and one using “enhanced” techniques which yielded false information. Now – in the past few weeks with Obama referencing Winston Churchill in defense of his administration’s anti-torture stance, a battle has broken out over torture in World War II. Keith Olbermann and Bill O’Reilly engaged in a skirmish earlier this week – but at the same time, two academics have written pieces about the broader historical context – both of which purport to demonstrate how torture helped the Allies win the war. 

N.B. Keep in mind while reading these stories that the justification for using torture that American proponents utilize is that it is an essential intelligence tool that is necessary to produce actionable intelligence quickly.

Julian Sanchez told the first story about how torture helped win “the Good War.” The Japanese tortured an American airman in the immediate aftermath of the bombings of Hiroshima and Nagasaki trying to get information about this bomb program. The airman “confessed” that America had hundreds of atom bombs ready to drop on Japanese cities. In turns out, the airman knew nothing of the program – and America has just used the only one left in it’s stock. It’s unclear what effect this information had – but this false information gleaned from torture had to have had an effect on Japan’s leadership as they debated whether or not to surrender. Sanchez doesn’t lay out the lesson – but based on his presentation, it is clear: Torture produces false information.

Andrew Roberts, who claims to be an historian, tells a different story in The Daily Beast. He starts out explaining what the lessons he wants to convey is –  the “crucial truth” about torture during World War II that he makes clear will support the right-wing defense of torture. Roberts writes:

When troops need information about enemy capabilities and intentions—and they usually need it fast—moral and ethical conventions…have repeatedly been ignored in the bid to save lives.

So far, a relatively uncontroversial reading of history. But the next sentence is a doozy:

In the conflict generally regarded today as the most ethical in history, World War II, enhanced interrogation techniques were regularly used by the Allies…[my emphases]

Google records 0 instances of anyone calling World War II the most ethical anything in history. For good reason – first, Roberts entirely mis-states what he means to say – that the Allies conduct in World War II was the most ethical in history; secondly, from the firebombings of Dresden and Tokyo to the atom bombs dropped on Hiroshima and Nagasaki to the interment of hundreds of thousands of Japanese-Americans there are quite a few barbaric acts associated with the Allies in the war. What Roberts should know – as an historian – is that World War II is widely regarded as a “good war” – one of the few – not because our conduct was exemplary – but because the war was against evil forces that left no choice but for the Allies to violently oppose them. Roberts only uses this as a throwaway phrase – more important is his second point – that “enhanced interrogation techniques were regularly used by the Allies.” 

Roberts spends the rest of his piece not backing up this assertion – except by innuendo. The story Roberts chooses to tell is of Operation Fortitude – Britain’s program that used German intelligence agents to feed misinformation to keep the bulk of the German army away from Normandy on D-Day. But in terms of “enhanced interrogation techniques” being used on these agents, he literally offers no proof. This is the closest he gets:

If anyone believes that SIS persuaded each of these 19 hard-bitten Nazi spies to fall in with Operation Fortitude by merely offering them tea, biscuits, and lectures in democracy, they’re being profoundly naïve.

Once again – a Google search for “Operation Fortitude” and torture yielded no results backing up Roberts’s history. Roberts himself cites not sources or records or accounts – and for what it’s worthy, torture is hardly the traditional method of turning a double agent. 

What you find instead are accounts that explicitly reject Roberts’s innuendo. Colonel Robin “Tin-Eye” Stephens who ran the interrogation center that turned these German spies into double agents for the same Operation Fortitude banned violence saying:

Never strike a man. It is unintelligent, for the spy will give an answer to please, an answer to escape punishment.

Stephens was manipulative – and held the threat of lawful execution over the German spies’ heads – but he understood that it was idiotic to torture them for information. Roberts gives no source for his rejection of the historical facts – but instead accuses those who accept them of being “profoundly naïve.”

Still – even if we are to grant Roberts his premise – that these agents were recruited as doubles by means of torture – his story still wouldn’t demonstrate that torture was “regularly used by the Allies” or capable of getting accurate “information about enemy capabilities and intentions.”

The story Roberts tells – if anything – undermines the idea of torture as an interrogation tool. Time and again – even in Roberts telling – history demonstrates that torture is an exceptionally effective tool to break an individual, to get them to confess to something regardless of it’s truth. Unfortunately, it is substantially documented that our intelligence agencies adopted a program of torture without knowing it’s history. What is almost inexplicable is how an historian such as Roberts can today still try to justify this program when the history of the methods used has been dragged out into the open.