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National Security Politics The Opinionsphere The War on Terrorism

Quote of the Day

I’ll put it to you this way: You give me a waterboard, Dick Cheney and one hour, and I’ll have him confess to the Sharon Tate murders.

Former Governor Jesse Ventura explaining how effective torture is…at some things

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National Security The Bush Legacy The Opinionsphere The War on Terrorism

Ali Soufan Goes to Washington

[digg-reddit-me]I’ve written about FBI interrogator and one-time undercover agent in Al Qaeda, Ali Soufan, several times on this blog (here and here) – including in my first post that got some traction comparing the interrogations of Ibn al-Libi and Abu Zandel. Since Obama took office – as memos have been declassified, Soufan has been finally able to speak out about his experiences interrogating Al Qaeda members – as in the past few weeks he wrote an op-ed piece for the New York Times and was interviewed by Michael Isikoff of Newsweek. Today, he is testifying before the Senate on American torture. I haven’t seen his actual appearance, but his written statement is a powerful piece which describes both why torture should not be done – and tells the story of how America took the fateful step. 

As this is a public statement, I am reproducing it in full here:

Ali Soufan’s Written Statement to the Senate

Mr. Chairman, Committee members, thank you for inviting me to appear before you today. I know that each one of you cares deeply about our nation’s security. It was always a comfort to me during the most dangerous of situations that I faced, from going undercover as an al Qaeda operative, to unraveling terrorist cells, to tracking down the killers of the 17 U.S. sailors murdered in the USS Cole bombing, that those of us on the frontline had your support and the backing of the American people. So I thank you. 

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.) 
My interest in speaking about this issue is not to advocate the prosecution of anyone. People were given misinformation, half-truths, and false claims of successes; and reluctant intelligence officers were given instructions and assurances from higher authorities. Examining a past we cannot change is only worthwhile when it helps guide us towards claiming a better future that is yet within our reach. 

And my focus is on the future. I wish to do my part to ensure that we never again use these harmful, slow, ineffective, and unreliable techniques instead of the tried, tested, and successful ones – the ones that are also in sync with our values and moral character. Only by doing this will we defeat the terrorists as effectively and quickly as possible. 

Most of my professional career has been spent investigating, studying, and interrogating terrorists. I have had the privilege of working alongside, and learning from, some of the most dedicated and talented men and women our nation has– individuals from the FBI, and other law enforcement, military, and intelligence agencies. 

In my capacity as a FBI Agent, I investigated and supervised highly sensitive and complex international terrorism cases, including the East Africa bombings, the USS Cole bombing, and the events surrounding the attacks of 9/11. I also coordinated both domestic and international counter-terrorism operations on the Joint Terrorist Task Force, FBI New York Office. 

I personally interrogated many terrorists we have in our custody and elsewhere, and gained confessions, identified terror operatives, their funding, details of potential plots, and information on how al Qaeda operates, along with other actionable intelligence. Because of these successes, I was the government’s main witness in both of the trials we have had so far in Guantanamo Bay – the trial of Salim Ahmed Hamdan, a driver and bodyguard for Osama Bin Laden, and Ali Hamza Al Bahlul, Bin Laden’s propagandist. In addition I am currently helping the prosecution prepare for upcoming trials of other detainees held in Guantanamo Bay. 

There are many examples of successful interrogations of terrorists that have taken place before and after 9/11. Many of them are classified, but one that is already public and mirrors the other cases, is the interrogation of al Qaeda terrorist Nasser Ahmad Nasser al-Bahri, known as Abu Jandal. In the immediate aftermath of 9/11, together with my partner Special Agent Robert McFadden, a first-class intelligence operative from the Naval Criminal Investigative Service (NCIS), (which, from my experience, is one of the classiest agencies I encountered in the intelligence community), I interrogated Abu Jandal. 
Through our interrogation, which was done completely by the book (including advising him of his rights), we obtained a treasure trove of highly significant actionable intelligence. For example, Abu Jandal gave us extensive information on Osama Bin Laden’s terror network, structure, leadership, membership, security details, facilities, family, communication methods, travels, training, ammunitions, and weaponry, including a breakdown of what machine guns, rifles, rocket launchers, and anti-tank missiles they used. He also provided explicit details of the 9/11plot operatives, and identified many terrorists who we later successfully apprehended. 

The information was important for the preparation of the war in Afghanistan in 2001. It also provided an important background to the 9/11 Commission report; it provided a foundation for the trials so far held in Guantanamo Bay; and it also has been invaluable in helping to capture and identify top al Qaeda operatives and thus disrupt plots. 

The approach used in these successful interrogations can be called the Informed Interrogation Approach. Until the introduction of the “enhanced” technique, it was the sole approach used by our military, intelligence, and law enforcement community. 

It is an approach rooted in experiences and lessons learned during World War II and from our Counter-insurgency experience in Vietnam – experiences and lessons that generated the Army Field Manual. This was then refined over the decades to include how to interrogate terrorism suspects specifically, as experience was gained from interrogations following the first World Trade Center bombing, the East Africa Embassy bombings, and the USS Cole bombing. To sum up, it is an approach derived from the cumulative experiences, wisdom, and successes of the most effective operational people our country has produced. 

Before I joined the Bureau, for example, traditional investigative strategies along with intelligence derived from human sources successfully thwarted the 1993 New York City Landmark Bomb Plot (TERRSTOP), a plot by the Blind Sheikh Omar Abdel-Rahman, to attack the UN Headquarters, the FBI’s New York office, and tunnels and bridges across New York City, — as a follow-up to the 1993 World Trade Center bombings. That remains to this day the largest thwarted attack on our homeland. I had the privilege of working with, and learning from, those who conducted this successful operation. 

The Informed Interrogation Approach is based on leveraging our knowledge of the detainee’s culture and mindset, together with using information we already know about him. 

The interrogator knows that there are three primary points of influence on the detainee: 

First, there is the fear that the detainee feels as a result of his capture and isolation from his support base. People crave human contact, and this is especially true in some cultures more than others. The interrogator turns this knowledge into an advantage by becoming the one person the detainee can talk to and who listens to what he has to say, and uses this to encourage the detainee to open up. 

In addition, acting in a non-threatening way isn’t how the detainee is trained to expect a U.S. interrogator to act. This adds to the detainee’s confusion and makes him more likely to cooperate. 

Second, and connected, there is the need the detainee feels to sustain a position of respect and value to interrogator. As the interrogator is the one person speaking to and listening to the detainee, a relationship is built – and the detainee doesn’t want to jeopardize it. The interrogator capitalizes on this and compels the detainee to give up more information. 

And third, there is the impression the detainee has of the evidence against him. The interrogator has to do his or her homework and become an expert in every detail known to the intelligence community about the detainee. The interrogator then uses that knowledge to impress upon the detainee that everything about him is known and that any lie will be easily caught. 

For example, in my first interrogation of the terrorist Abu Zubaydah, who had strong links to al Qaeda’s leaders and who knew the details of the 9/11 plot before it happened, I asked him his name. He replied with his alias. I then asked him, “how about if I call you Hani?” That was the name his mother nicknamed him as a child. He looked at me in shock, said “ok,” and we started talking. 

The Army Field Manual is not about being nice or soft. It is a knowledge-based approach. It is about outwitting the detainee by using a combination of interpersonal, cognitive, and emotional strategies to get the information needed. If done correctly it’s an approach that works quickly and effectively because it outwits the detainee using a method that he is not trained, or able, to resist. 

This Informed Interrogation Approach is in sharp contrast with the harsh interrogation approach introduced by outside contractors and forced upon CIA officials to use. 

The harsh technique method doesn’t use the knowledge we have of the detainee’s history, mindset, vulnerabilities, or culture, and instead tries to subjugate the detainee into submission through humiliation and cruelty. The approach applies a force continuum, each time using harsher and harsher techniques until the detainee submits. 

The idea behind the technique is to force the detainee to see the interrogator as the master who controls his pain. It is an exercise in trying to gain compliance rather than eliciting cooperation. A theoretical application of this technique is a situation where the detainee is stripped naked and told: “Tell us what you know.” 

If the detainee doesn’t immediately respond by giving information, for example he asks: “what do you want to know?” the interviewer will reply: “you know,” and walk out of the interrogation room. Then the next step on the force continuum is introduced, for example sleep deprivation, and the process will continue until the detainee’s will is broken and he automatically gives up all information he is presumed to know. 

There are many problems with this technique. 

A major problem is that it is ineffective. Al Qaeda terrorists are trained to resist torture. As shocking as these techniques are to us, the al Qaeda training prepares them for much worse – the torture they would expect to receive if caught by dictatorships for example. 

This is why, as we see from the recently released Department of Justice memos on interrogation, the contractors had to keep getting authorization to use harsher and harsher methods, until they reached waterboarding and then there was nothing they could do but use that technique again and again. Abu Zubaydah had to be waterboarded 83 times and Khalid Shaikh Mohammed 183 times. In a democracy there is a glass ceiling of harsh techniques the interrogator cannot breach, and a detainee can eventually call the interrogator’s bluff. 

In addition the harsh techniques only serves to reinforce what the detainee has been prepared to expect if captured. This gives him a greater sense of control and predictability about his experience, and strengthens his will to resist. 

A second major problem with this technique is that evidence gained from it is unreliable. There is no way to know whether the detainee is being truthful, or just speaking to either mitigate his discomfort or to deliberately provide false information. As the interrogator isn’t an expert on the detainee or the subject matter, nor has he spent time going over the details of the case, the interrogator cannot easily know if the detainee is telling the truth. This unfortunately has happened and we have had problems ranging from agents chasing false leads to the disastrous case of Ibn Sheikh al-Libby who gave false information on Iraq, al Qaeda, and WMD. 

A third major problem with this technique is that it is slow. It takes place over a long period of time, for example preventing the detainee from sleeping for 180 hours as the memos detail, or waterboarding 183 times in the case of KSM. When we have an alleged “ticking timebomb” scenario and need to get information quickly, we can’t afford to wait that long. 

A fourth problem with this technique is that ignores the end game. In our country we have due process, which requires evidence to be collected in a certain way. The CIA, because of the sensitivity of its operations, by necessity, operates secretly. These two factors mean that by putting the CIA in charge of interrogations, either secrecy is sacrificed for justice and the CIA’s operations are hampered, or justice is not served. Neither is a desirable outcome. 

Another disastrous consequence of the use of the harsh techniques was that it reintroduced the “Chinese Wall” between the CIA and FBI – similar to the wall that prevented us from working together to stop 9/11. In addition, the FBI and the CIA officers on the ground during the Abu Zubaydah interrogation were working together closely and effectively, until the contractors’ interferences. Because we in the FBI would not be a part of the harsh techniques, the agents who knew the most about the terrorists could have no part in the investigation. An FBI colleague of mine, for example, who had tracked KSM and knew more about him than anyone in the government, was not allowed to speak to him. 

Furthermore, the CIA specializes in collecting, analyzing, and interpreting intelligence. The FBI, on the other hand, has a trained investigative branch. Until that point, we were complimenting each other’s expertise, until the imposition of the “enhanced methods.” As a result people ended doing what they were not trained to do. 

It is also important to realize that those behind this technique are outside contractors with no expertise in intelligence operations, investigations, terrorism, or al Qaeda. Nor did the contractors have any experience in the art of interview and interrogation. One of the contractors told me this at the time, and this lack of experience has also now been recently reported on by sources familiar with their backgrounds. 

The case of the terrorist Abu Zubaydah is a good example of where the success of the Informed Interrogation Approach can be contrasted with the failure of the harsh technique approach. I have to restrict my remarks to what has been unclassified. (I will note that there is documented evidence supporting everything I will tell you today.) 

Immediately after Abu Zubaydah was captured, a fellow FBI agent and I were flown to meet him at an undisclosed location. We were both very familiar with Abu Zubaydah and have successfully interrogated al-Qaeda terrorists. We started interrogating him, supported by CIA officials who were stationed at the location, and within the first hour of the interrogation, using the Informed Interrogation Approach, we gained important actionable intelligence. 

The information was so important that, as I later learned from open sources, it went to CIA Director George Tennet who was so impressed that he initially ordered us to be congratulated. That was apparently quickly withdrawn as soon as Mr. Tennet was told that it was FBI agents, who were responsible. He then immediately ordered a CIA CTC interrogation team to leave DC and head to the location to take over from us.

During his capture Abu Zubaydah had been injured. After seeing the extent of his injuries, the CIA medical team supporting us decided they were not equipped to treat him and we had to take him to a hospital or he would die. At the hospital, we continued our questioning as much as possible, while taking into account his medical condition and the need to know all information he might have on existing threats. 

We were once again very successful and elicited information regarding the role of KSM as the mastermind of the 9/11 attacks, and lots of other information that remains classified. (It is important to remember that before this we had no idea of KSM’s role in 9/11 or his importance in the al Qaeda leadership structure.) All this happened before the CTC team arrived. 

A few days after we started questioning Abu Zubaydah, the CTC interrogation team finally arrived from DC with a contractor who was instructing them on how they should conduct the interrogations, and we were removed. Immediately, on the instructions of the contractor, harsh techniques were introduced, starting with nudity. (The harsher techniques mentioned in the memos were not introduced or even discussed at this point.) 

The new techniques did not produce results as Abu Zubaydah shut down and stopped talking. At that time nudity and low-level sleep deprivation (between 24 and 48 hours) was being used. After a few days of getting no information, and after repeated inquiries from DC asking why all of sudden no information was being transmitted (when before there had been a steady stream), we again were given control of the interrogation. 

We then returned to using the Informed Interrogation Approach. Within a few hours, Abu Zubaydah again started talking and gave us important actionable intelligence. 

This included the details of Jose Padilla, the so-called “dirty bomber.” To remind you of how important this information was viewed at the time, the then-Attorney General, John Ashcroft, held a press conference from Moscow to discuss the news. Other important actionable intelligence was also gained that remains classified. 

After a few days, the contractor attempted to once again try his untested theory and he started to re-implementing the harsh techniques. He moved this time further along the force continuum, introducing loud noise and then temperature manipulation. 

Throughout this time, my fellow FBI agent and I, along with a top CIA interrogator who was working with us, protested, but we were overruled. I should also note that another colleague, an operational psychologist for the CIA, had left the location because he objected to what was being done. 

Again, however, the technique wasn’t working and Abu Zubaydah wasn’t revealing any information, so we were once again brought back in to interrogate him. We found it harder to reengage him this time, because of how the techniques had affected him, but eventually, we succeeded, and he re-engaged again. 

Once again the contractor insisted on stepping up the notches of his experiment, and this time he requested the authorization to place Abu Zubaydah in a confinement box, as the next stage in the force continuum. While everything I saw to this point were nowhere near the severity later listed in the memos, the evolution of the contractor’s theory, along with what I had seen till then, struck me as “borderline torture.” 

As the Department of Justice IG report released last year states, I protested to my superiors in the FBI and refused to be a part of what was happening. The Director of the FBI, Robert Mueller, a man I deeply respect, agreed passing the message that “we don’t do that,” and I was pulled out. 

As you can see from this timeline, many of the claims made in the memos about the success of the enhanced techniques are inaccurate. For example, it is untrue to claim Abu Zubaydah wasn’t cooperating before August 1, 2002. The truth is that we got actionable intelligence from him in the first hour of interrogating him. 

In addition, simply by putting together dates cited in the memos with claims made, falsehoods are obvious. For example, it has been claimed that waterboarding got Abu Zubaydah to give up information leading to the capture of Jose Padilla. But that doesn’t add up: Waterboarding wasn’t approved until 1August 2002 (verbally it was authorized around mid July 2002), and Padilla was arrested in May 2002. 

The same goes for KSM’s involvement in 9/11: That was discovered in April 2002, while waterboarding was not introduced until almost three months later. It speaks volumes that the quoted instances of harsh interrogation methods being a success are false. 

Nor can it be said that the harsh techniques were effective, which is why we had to be called back in repeatedly. As we know from the memos, the techniques that were apparently introduced after I left did not appear to work either, which is why the memos granted authorization for harsher techniques. That continued for several months right till waterboarding was introduced, which had to be used 83 times – an indication that Abu Zubaydah had called the interrogator’s bluff knowing the glass ceiling that existed. 

Authoritative CIA, FBI, and military sources have also questioned the claims made by the advocates of the techniques. For example, in one of the recently released Justice Department memos, the author, Stephen Bradbury, acknowledged a (still classified) internal CIA Inspector General report that had found it “difficult to determine conclusively whether interrogations have provided information critical to interdicting specific imminent attacks.” 

In summary, the Informed Interrogation Approach outlined in the Army Field Manual is the most effective, reliable, and speedy approach we have for interrogating terrorists. It is legal and has worked time and again.

It was a mistake to abandon it in favor of harsh interrogation methods that are harmful, shameful, slower, unreliable, ineffective, and play directly into the enemy’s handbook. It was a mistake to abandon an approach that was working and naively replace it with an untested method. It was a mistake to abandon an approach that is based on the cumulative wisdom and successful tradition of our military, intelligence, and law enforcement community, in favor of techniques advocated by contractors with no relevant experience. 

The mistake was so costly precisely because the situation was, and remains, too risky to allow someone to experiment with amateurish, Hollywood style interrogation methods- that in reality- taints sources, risks outcomes, ignores the end game, and diminishes our moral high ground in a battle that is impossible to win without first capturing the hearts and minds around the world. It was one of the worst and most harmful decisions made in our efforts against al Qaeda. 

For the last seven years, it was not easy objecting to these methods when they had powerful backers. I stood up then for the same reason I’m willing to take on critics now, because I took an oath swearing to protect this great nation. I could not stand by quietly while our country’s safety was endangered and our moral standing damaged. 

I know you are motivated by the same considerations, and I hope you help ensure that these grave mistakes are never made again. 

Thank you.

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Humor National Security The Opinionsphere The War on Terrorism

Dramatizing the Ticking Time Bomb Scenario

Tom Tomorrow has it.

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Barack Obama Criticism National Security Politics The Opinionsphere The War on Terrorism Videos

Fox News uses Nazi propaganda to defend torture, attack Obama

[digg-reddit-me]As a preview to this Keith Olberman video, here’s quick review of the background on this: Andrew Sullivan wrote a post comparing the adopted hero of the right-wing, Winston Churchill, and current creature of the right-wing, Dick Cheney – specifically on the issue of torture. Sullivan explained that Churchill refused to torture German prisoners even with Britain being bombed daily by the Germans. He cited one of Britain’s chief interrogators during World War II on torture:

[He] did not eschew torture out of mercy. This was no squishy liberal: the eye was made of tin, and the rest of him out of tungsten. (Indeed, he was disappointed that only 16 spies were executed during the war.) His motives were strictly practical. “Never strike a man. It is unintelligent, for the spy will give an answer to please, an answer to escape punishment. And having given a false answer, all else depends upon the false premise.”…

Barack Obama then cited Churchill’s refusal to torture during a press conference – and aides later confirmed he reads Andrew Sullivan’s blog and had come across this information shortly before he brought it up at the press conference.

Immediately, the right-wing press began to try to reclaim Churchill as their hero re-branding him as a torturer and war criminal.

Take it away, Keith

Categories
Financial Crisis Humor National Security Pakistan Politics The Bush Legacy The Opinionsphere The War on Terrorism

Must-Reads of the Week

1. Inhuman. Andrew Sullivan, who has been one of the most insightful commenators on torture, discusses the term “inhuman”:

It’s odd, isn’t it, that we use this word to describe abuse and torture of prisoners. The reason it’s odd is that I’m not sure any animals torture. Yes, they can kill and maim and inflict dreadful suffering in the process of killing, eating or fighting. But the act of intentionally exploiting suffering, of lingering over some other being’s pain – using it as a means to an end – is not an animal instinct, unless I’m mistaken.

And so torture is in fact extremely human; it represents in many ways humankind’s unique capacity for cruelty.

2. 30 Rock. Jonah Weiner discusses 30 Rock’s odd conservative streak at Slate. The explanations he posits for this conservatism are perhaps beside the point, but interesting nonetheless:

Of course, 30 Rock was conceived during the reign of George W. Bush, which might help explain its ideological complexity. The show has been consistently critical of Bush, but perhaps 30 Rock began as a way to explore—and mine for gallows humor—the crisis of identity many liberals began to feel in his second term, when the Karl Rove playbook had seemingly replaced the laws of physics, when the “reality-based community” (including Liz Lemon’s Upper West Side) felt like an island populated by the marginal, flip-flopping, arugula-munching few.

3. Animal Spirits. Chrystia Freeland writes for the Financial Times that the Obama team seems to have accepted the premise of a recent book by behavioral economists about economic crises:

Judging by the upbeat economic message we have been hearing from the White House, the Treasury and even the Federal Reserve over the past six weeks, that is a shrewd guess. The authors argue that “we will never really understand important economic events unless we confront the fact that their causes are largely mental in nature”. Our “ideas and feelings” about the economy are not purely a rational reaction to data and experience; they themselves are an important driver of economic growth – and decline.

4. A Taliban Strategist Speaks. To The New York Times. Perhaps the most interesting article I have read about the Taliban’s plans in the Af-Pak region – though I have to wonder why this man would be speaking to a Western newspaper about the Taliban’s strategy. That said, you can judge the article for yourself. I pass it on as it seemed plausible to me:

One Pakistani logistics tactician for the Taliban, a 28-year-old from the country’s tribal areas, in interviews with The New York Times, described a Taliban strategy that relied on free movement over the border and in and around Pakistan, ready recruitment of Pakistani men and sustained cooperation of sympathetic Afghan villagers.

His account provided a keyhole view of the opponent the Americans and their NATO allies are up against, as well as the workings and ambitions of the Taliban as they prepared to meet the influx of American troops.

It also illustrated how the Pakistani Taliban, an umbrella group of many brands of jihadist fighters backed by Al Qaeda, are spearheading wars on both sides of the border in what for them is a seamless conflict.

5. Fool’s Gold. This one is actually a must-listen podcast of a talk given at the London School of Economics. Gillian Tett is a journalist for the Financial Times who recently wrote a book about the financial crisis and what led to it from her view as someone with a background in anthropology reporting who was reporting on derivratives before it was an exciting beat.

Bonus: Polar Insanity. Tim Wu writes in Slate about the perplexing desire of so many people – including himself –  to make the expensive trips to the polar regions:

Every so often, an iceberg floats by that is grander and more beautiful than any cathedral, though it lacks any history or even a name. What’s almost as shocking as its appearance is its anonymity: beauty untainted by fame. Most of these perfect objects will never be seen by human eyes. They float around and slowly melt by themselves, unappreciated and utterly indifferent to that fact.

Unnamed, plentiful beauty feels unearthly and almost decadent, like Sinbad the Sailor’s cave. It is alien to the typical human experience of finding everything we really desire to be scarce, expensive, or behind some temple curtain. It has always struck me that no one bothers to build museums in places of extreme natural beauty, and in Antarctica the effect is magnified. If an iceberg the size of Manhattan showed up outside town one day, why would you bother going to an art exhibit?

Categories
Criticism Law National Security Politics The Opinionsphere The War on Terrorism

The Amnesia of the Right

Hilzoy (h/t Andrew Sullivan):

Something about 9/11 seems to have produced a kind of amnesia among some people on the right. It’s as though they think that we have never before had to figure out such questions as: how can we hold dangerous people in detention safely? When someone has served his time and we think he might go on to do something bad, how might we monitor him to ensure that he doesn’t? Suppose we have captured someone who might be guilty of a violent crime, but we do not have enough evidence to charge him: what should we do? 

These are not problems that we confronted for the first time after 9/11. They have been with us from the founding of our country. We somehow managed to face down the world’s most powerful empire, survive a brutal civil war, defeat Hitler, and live for about forty years with an immense arsenal of thermonuclear weapons pointed at our cities, and do all that without giving up on the rule of law. But let nineteen guys with boxcutters fly planes into our buildings and, apparently, we face a Brand New Existential Threat that causes our entire legal history to fly out of our collective heads.

Amen.

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Barack Obama Domestic issues Political Philosophy Politics The Opinionsphere

Equality of Result versus Equality of Opportunity

[digg-reddit-me]It is noteworthy that a certain type of older conservative or right-wing intellectual finds it necessary to insist repeatedly that Obama’s politics is “the same old” stuff as liberals tried earlier in history. These olders intellectuals try to place Obama in the context of typical big-government liberals – and they presume by doing so they are taking the wind out of his sails and making him a more prosaic and less historic figure.

Victor Davis Hanson recently wrote a column explaining that Obama was interested in “the same old equality of result.” He describes the debate going back to the Greeks between “the equality of result” and “the equality of opportunity” – and he identified France with the first and America with the second. His implicit question: Do we want to become France? George Will and others have described Obama’s administration as the third or fourth wave of liberalism. There is a strong need among this group to get across the message that Obama isn’t different – he isn’t change – he’s just more of the same stuff that they – as Republicans – defeated back in 1980 and 1984 and 1994 and 2004. 

But insistince does not make it so.

Obama’s liberalism is not the liberalism of the Great Society or of Jimmy Carter – or even of Bill Clinton. Hanson, Will, and others refuse to acknowledge that in the debate between equality of result and equality of opportunity, they already won. Obamaism is about expanding equality of opportunity – which would be clear if Hanson were doing more than reciting talking points. Look at the three specific programs Hanson cites before claiming Obama wants “equality of results”:

…creating a new health care bureaucracy, cap-and-trade, allotting trillions more for education…

None of these try to achieve an “equality of results.” They are about ensuring people equal opportunity to succeed – and ensuring the market properly prices activities which are damaging to society in general. For example, if you want everyone to have an equal opportunity to succeed, you need to make sure that everyone who is intelligent enough and works hard enough can get an education. Health care costs and concerns have made it much more difficult for smaller businesses to succeed – so Obama is proposing to open up the federal program. This will even the playing field in competition between big and medium- to small-sized companies to a significant degree. Cap and trade imposes a market mechanism to take into account the costs of polluting activities.

Hanson and the others of his generation need to understand that they won the opportunity versus results debate. Liberalism today has evolved to deal with the demands of the moment

Perhaps they should focus on their own political philosophy to see that it does as well.

Categories
Economics Financial Crisis History The Opinionsphere

Theories of the Financial Crisis: The Government Did It!

[digg-reddit-me]

The first person out of the box promoting the idea that the current financial crisis was actually caused by the government (specifically Democrats in the government – and even more specifically Barack Obama) was Rush Limbaugh. On the day Lehman fell (this crisis’s equivalent of September 11), Rush Limbaugh was already trying to exploit it for partisan gain – claiming “Capitalism Isn’t the Problem: Government Caused This Crisis.” On this date of crisis, Limbaugh had already unveiled in a near-complete form what was to become the Republican party’s position on the crisis. He embraced positions that had previously been associated with the Austrian School of Economics – but without much of the ideological baggage they had with them. He only embraced as much of them as was politically convenient – and he applied them only so far as they made Democrats look bad. He also began blaming Barney Frank for this crisis – something which many other right-wingers picked up on. Though I for one find it hard to see how this person who was a member of a Congressional minority had so much power to influence the entire economy and cause this severe crisis and the causal chain has never been made clear. At least to me.

Within a few days of the near-collapse of the financial system – with the crisis still causing panic – Limbaugh was already trying out names he could use to brand the crisis – from the “Democrat-Caused Financial Crisis” to the “Obama Recession.” None of them quite caught on as most people with common sense found it hard to blame Barack Obama for a crisis that occurred before he had won the presidency. But the right faithfully repeated this meme. (It has often seemed to me that Rush Limbaugh – with his vast influence via memes and love of pranks – is a forerunner of and competitor to 4chan.)

I need to say two things going into this: (1) for my analysis, I am merely standing on the shoulders of economists more knowledgeable than I – when it comes to economics especially, I am – clearly – just an interested amateur; and (2) I came to this issue biased against this theory of the financial crisis – although not with my mind closed to it. The best expression of why I started out biased against this idea is probably the analogy Tyler Cowen used while debunking it. Cowen invoked the legal principle of the “thin skull” – in which someone at fault is considered responsible for all the damage caused by their actions, even if a person without a thin skull would not have been seriously hurt by such damages. For example, if you were responsible for a car accident and the other party was injured seriously as they had a thin skull which was damaged much more than a normal skull when it banged into the side window, you would be responsible for even the extraordinary damages resulting from that individual’s medical condition. Cowen explains that those seeking to blame the government for the business cycle and/or the current economic crisis:

…are postulating a very thin skull for markets and then blaming government for the disaster which results from government’s glancing blow to that skull.

A surprising amount of the debate over what caused the current crisis centers around the causes of and solutions to the Great Depression. The reason for this is not because there is widespread disagreement about this among historians or economists – but because the Republican party has embraced recent revisionist histories to make their case against the current intervention. The traditional understanding – between Keynesian and members of the Chicago School is that the Great Depression was made worse by the application of variations of this “thin skull” theory – as Herbert Hoover heeded advice to do little or nothing to combat the financial crisis – preferring to allow the market to fix itself. As Paul Krugman describes (from a 1998 Slate column):

The hangover theory can do real harm. Liquidationist views played an important role in the spread of the Great Depression—with Austrian theorists such as Friedrich von Hayek and Joseph Schumpeter strenuously arguing, in the very depths of that depression, against any attempt to restore “sham” prosperity by expanding credit and the money supply.

But Amity Shlaes authored a recent history of the Great Depression to dispute this traditional understanding which had made her a hero of Republicans everywhere who have begun to cite her book more often than the Bible – almost. Shlaes passes herself off as an intellectual, but seems to be as partisan as Paul Krugman on his worst days. And her understanding of economics is quite shallow compared to the Nobel prize winner’s. Jonathan Chait in The New Republic took on Shlaes book – pointing out the holes in Shlaes revisions – how she attempted to blame liberalism for causing the crisis despite the fact that liberals had been out of power for the eight years before the depression started – and for the first three years after. She manages to pull this off by claiming that Herbert Hoover was a secret liberal interventionist – and blames Hoover’s meager attempts to stop starvation for undermining the recovery that her ideology maintains was imminent. Shlaes also fails to account for how we finally got out. As Chait explains:

[T]he classic right-wing critique fails to explain how the economy recovered at all. In one of his columns touting Shlaes, George Will observed that “the war, not the New Deal, defeated the Depression.” Why, though, did the war defeat the Depression? Because it entailed a massive expansion of government spending. The Republicans who have been endlessly making the anti-stimulus case seem not to realize that, if you believe that the war ended the Depression, then you are a Keynesian.

James Glassman’s influential arguments (in some circles) against any stimulus plan seem to have been inspired mainly by Shlaes’s flawed history.

Today’s crisis appeared at first glance (to most economists and us less enlightened citizens) to have been caused not by government interference but by private bankers controlling vast sums of money taking dumb risks with little government oversight. In time, other factors have come to the forefront, but this basic explanation seems right. Yet right-wingers and the Republican party continue to insist that government intervention was the cause – often out of what they see as a political necessity.

But on the other hand, there are some who seem to have less of a partisan interest in blaming the government for this crisis – and have embraced the Austrian School of Economics out of conviction rather than temporary partisan gain. Ron Paul, for example, blames both Democrats and Republicans for causing this mess. He seems to accept this “thin skull” logic and he has become an influential proponent of the Austrian school of economic thought. This school had its heyday in the 1920s as a result of Hayek, Mises, and others grappling with the issues of that time and perhaps most importantly discovering the business cycle. But this theory was largely abandoned as many saw it as responsible for worsening the Great Depression – as during the first years of the crisis, portions of the Austrian School’s prescriptions were tried. The theory was largely developed before the invention of central banks and while currency was still on the gold standard – but it had important insights in its time. Contemporary proponents such as Ron Paul tend to blame the changes to the financial system created to manage the boom-and-bust business cycle for causing the boom-and-bust business cycle. Yet this cycle has been part of capitalism since it’s inception – and has been managed since Great Depression by central banks and others using Keynesian theory and its successors relatively successfully. 

The appeal of this Austrian School of though though – aside from the partisan appeal for Republicans who are allowed to blame everything on liberals – is a moral one. It functions as a kind of religion-like palliative, telling a comforting story of sin and redemption. The Austrian business cycle tells of a recurring morality tale in which virtue is corrupted, until the sin of easy credit leads to the fall of the system. Then, the Market cleanses the world and virtue is restored to it’s proper place. The proper role of the economist in this is to act as a kind of priest – urging the people to stay true to this belief system in the face of adversity – to keep their faith that eventually the god of the Market will make everything better.

This fits well with the religious right of the Republican party – and perhaps this is why despite the theory’s rejection by most mainstream economists as outdated, it is gaining adherents among the Republican party, including the “rising star” Michelle Bachman.

[Image licensed under Creative Commons courtesy of elandru.]

Categories
Foreign Policy National Security Pakistan Politics The Opinionsphere The War on Terrorism

Pakistan: The Edge of the Abyss

[digg-reddit-me]Today, as the President Zardari of Pakistan is scheduled to meet with Obama, the news about Pakistan is growing worse and worse.

A nation with nuclear weapons seems on the brink of collapse. Yet it often seems as if the country’s leadership is still more focused on the threat from its historic rival, India. As the New York Times editorial board explained last week:

If the Indian Army advanced within 60 miles of Islamabad, you can bet Pakistan’s army would be fully mobilized and defending the country in pitched battles. 

The Pakistani Taliban is now within that distance – 60 miles – of the capital. It’s advance has not been halted and it continues to destabilize and then take over large portions of Pakistan. You can see the strong position the Taliban is in by reading the story published just a few days ago by Jane Perlez and Pir Zubair Shah also in the Times telling the story of a Taliban strategist who gave them an inside look at the Taliban’s regional strategy – which focuses in a large part on exploiting the border between Afganistan and Pakistan over which the Taliban move without qualms, but which U.S. forces generally respect. The Pakistani army and intelligence agencies are both said to be sympathetic to the Taliban and islamist extremism in general – and U.S. strategists believe their goal is to wait out America’s interest in the region and then use these Taliban forces to exert control over Afghanistan and to destabilize India, which they still consider the main threat to their national security. This is why – despite the billions of dollars in funding given to the Pakistani military and intelligence agencies since September 11 for the purpose of aiding them in their war against the Taliban – their forces they have arrayed against the Taliban are ill-equipped and too few in number – as they have used most of these funds to build up their military for a more conventional war against India. David Sanger, speaking at the Council on Foreign Relations some weeks ago told a story he described as telling you “everything you need to know about the U.S.-Pakistan relationship.” It is a story, essentially, of a leadership that is friendly with the Taliban – even as they tell the Americans they are doing everything they can to stop them. 

President Zardari meanwhile tried to assure American lawmakers – who he met with yesterday – that the money they were sending to Pakistan was being used wisely by likening it “to the government’s bailout of the troubled insurance giant, American International Group” according to the Times. 

The fall of Pakistan to the Taliban is perhaps the worst case scenario national security experts can imagine. The Taliban is allied with Al Qaeda – who have planned to use weapons of mass destruction against America. Pakistan has nuclear weapons in numerous locations throughout the country – and is already responsible for more nuclear proliferation than any other nation on earth. It is, what Dick Cheney might call, the nexus of America’s worst fears. And worse yet, none of America’s policies in the region seemed to have had the desired effect – former President Musharraf seemed unable to truly take on the Taliban and terrorist elements, despite his being motivated their attempts to kill him – and America, by continuing to support Musharraf in the face of his desperate bids to hold onto power, alienated many Pakistanis and was finally removed from office due to the pressure from both America and groups organizing for a civil society; Benazir Bhutto, martyred running for office, said all the right things and seemed to recognize that the fundamental enemy of Pakistan was no longer India – but the religious extremists within it’s own borders; but she never had an opportunity to lead Pakistan again; her widower, the current President Zardari has followed too much in the path of Musharraf and had likewise angered many Pakistanis by using his power to undermine political rivals  (leading to massive destabilizing protests until he backed down due to pressure from America and groups organizing for civil society) – while at the same time, despite fine words, he has been unable to make progress in combating the Taliban. Instead, he signed a deal with them to allow the Taliban to impose their extremist religion on a large region of the country. Despite the glaringly self-interested actions of Pakistani leaders – and the fact that even today with the Taliban encroaching upon the capital, it is not clear that the government is yet committed to rooting out these insurgents or terrorists – America has been forced time and again to double down in our support of Pakistan’s leaders. What other choice do we have? Pakistan is too important to allow it to fail – and it has nuclear weapons. 

Which is why we can longer accept the constant refrain from Pakistan’s leaders that “Everything’s fine; please send helicopters.” Pakistan is “ground zero in many of the worst-case scenario exercises gamed out by national security officials [and seems] on the verge of spiraling out of control.” General Petreaus is apparently saying privately that “the next two weeks are critical [in] determining whether the Pakistani government will survive.” David Kilcullen, an Australian counterinsurgency expert advising the Obama administration, expressed a related point:  “We have to face the fact that if Pakistan collapses it will dwarf anything we have seen so far in whatever we’re calling the war on terror now.” 

This is where we are – at the edge of an abyss. And it seems there is nothing for us to do but to trust that our government is properly trusting the ineffectual (or perhaps conflicted) Pakistani leadership to control the situation.

Or is that all we can do? Wendy Chamberlin, a former ambassador to Pakistan suggested another idea: “We have to make clear that our relationship is with the people of Pakistan and not with [any] one man…” I don’t this is what she meant – but it seems to me that the best way to make this clear is for Americans to begin communicating with Pakistanis. And I don’t just mean the government.

Remember the Obama campaign – which encouraged tens of thousands of volunteers to call or email or knock on the doors of millions of citizens – in a grass-roots effort to change the nation? We should start that. Here. Today. Go on Facebook. Find someone from Pakistan. Send them a pen-pal letter and ask them what’s going on – so each of us can do our part to figure out what is going on in what we are being told is a very dangerous situation. Be humble; be curious; be respectful. But reach out. It seems kind of silly, but what other choice do we have?

Categories
Criticism Economics Politics The Opinionsphere

Taxing the Wealthy

[digg-reddit-me]Liberal orthodoxy has made the state dependent on a volatile source of revenues – high income tax rates on the wealthy.

That’s George Will in his most recent column. As phrased, I’m not sure it makes sense. A tax rate is not a source of revenue. A tax is. And while an income tax rate can be volatile – that doesn’t seem to be Will’s point – it is that the revenue generated from the tax is. So, let me correct Mr. Will:

Liberal orthodoxy has made the state dependent on a volatile source of revenues – taxes paid by the wealthy.

Now, I won’t argue about the volatility of any financial strategy based on depending on just a few individuals to generate revenue. 

But let’s pose a hypothetical for a moment. What if those that made over $200 million were taxed at a lower rate than everyone else – let’s say 18% – and those who made less than $100,000 were taxed at a 35% rate. And what if – even given this, the revenue generated from taxing those making over $200 million far exceeded the vast majority who made less.

Wouldn’t that complicate things just a bit?

And now, what if it were true?

The stats here are national – not based on California which Will is talking about. And there are only concerning the top 400 taxpayers who despite being just over 1/one millionth of the population, pay nearly 2% of all income taxes. But based on my previous research, I’m pretty confident the pattern holds – that those at the top of the income scale pay a lower rate of taxes than those at the bottom (Warren Buffett famously explained that he was taxed at a lower rate than his secretary)  – and yet because wealth and income is so concentrated in America, the richest 5% pay about 60% of all taxes.

Volatility is built into any system in which wealth is concentrated – which is why I’m not sure Will’s point here is well-founded. What does he suggest is a more stable type of taxation? If wealth were distributed more broadly, then our economic system – and tax revenues  – would undoubtedly be more stable – but I doubt this is what Will wants. If consumption were taxed rather than income, then the system would likely be even more unstable – especially in a downturn such as now when everyone is cutting back. So, what is the solution?