Topic: Foreign Policy and National Security

Event Monday: Is the FBI Creating Terrorist Plots to Stop Them?

This Monday at noon, Cato hosts “The Newburgh Sting and the FBI’s Production of the Domestic Terrorism Threat.” The event will consider how the FBI and others elements of our domestic security apparatus now generate a sense of the terrorist danger that they combat. David Heilbroner will show clips from his 2014 documentary on the Newburgh four terrorist case, which aired on HBO. Naureen Shah of Amnesty International and John Mueller of Cato and Ohio State will comment. RSVP here.

You can get a sense of the issue from this 2007 headline, from The Onion: “U.S. Counter-Counterterrorism Unit Successfully Destroys Washington Monument.” The counter-counterterrorism unit, the satirical article says, was “created in 2004 in response to the lack of terror activity since the Sept. 11 attacks,” and tasked with “raising awareness among the American public of the ‘myriad unknown threats’ that still face the country,” by demonstrating vulnerability to terrorism.

That’s make-believe, of course. No U.S. government agency has been bombing monuments, or anything else on U.S. soil. But still, like other good satire, the article gets at truth more effectively than conventional rendering of facts.

The standard view remains that the trauma of the September 11 attacks awakened Americans to their vulnerability to terrorism from without and within—terrorists groups overseas like al Qaeda and the “lone-wolf” self-starters they inspire. While our leaders, over the last decade, have become less prone to warn of imminent apocalyptic attacks, they still mostly contend that skilled terrorists lurk among us, evaluating our vulnerabilities, exploiting technologies and always growing more diabolical. That view, of course, is what justifies several of our ongoing military campaigns, various curtailments of civil liberties, and vast expenditures of our wealth for domestic security. Its proponents cite as evidence the terrorist plots found in the country since 2001.

Mass Surveillance: From the War on Drugs to the War on Terror

At first glance, the USA Today headline seemed like many others in the nearly two years since Edward Snowden’s explosive revelations: U.S. secretly tracked billions of calls for decades. And while the program essentials were the same—the secret collection of the telephone metadata of every American– there were two key differences between this story and the hundreds before it on this topic. The offending government entity was the Drug Enforcement Administration, and the warrantless surveillance program was launched during the first Bush administration.

Justice Department officials told Reuters that, “All of the information has been deleted.”  “The agency is no longer collecting bulk telephony metadata from U.S. service providers.” However, DoJ provided no actual proof of the alleged data destruction, and the DoJ Inspector General only recently began an inquiry into the program. While it now seems fairly clear that the DEA’s “USTO” metadata collection program served as a model for the NSA telephony metadata program conducted under Sec. 215 of the PATRIOT Act, what is also clear is that Americans are now confronting a government surveillance apparatus that is truly vast. As Ryan Gallagher of The Intercept noted, this particular DEA mass surveillance program is just one of several undertaken by the agency over the past three decades.

How many other such programs exist at other federal agencies, whether inside or outside of the U.S. intelligence community? And how far back do such programs go? How many members of Congress knew, and for how long? Was this DEA program concealed from the agency’s inspector general for two decades, or did the IG simply fail to investigate the program year after year out of apathy or indifference?

If the past is any guide at all—and the surveillance scandals of the 1960s and 1970s are a very good guide—we are once again confronting a level of government over-reach that calls for a comprehensive, public accounting.

In is new book, Democracy in the Dark, former Church Committee chief counsel Fritz Schwartz notes that “…too much is kept secret not to protect America but to keep illegal or embarrassing conduct from Americans…the Church Committee also found that every president from Franklin Roosevelt to Richard Nixon had secretly abused their powers.” For the paperback edition of his book, Schwartz is going to have to add more American chief executives to his list.

The United States Should Choose Allies That Benefit America

If America ends up at war, it almost certainly will be on behalf of an ally. Washington collects allies like most people collect Facebook “friends.” The vast majority of U.S. allies are security liabilities, as potential tripwires for conflict and war.

Yet American officials constantly abase themselves to reassure the very countries that the United States is defending at great cost and risk. For instance, Sen. Marco Rubio (R-Fl.) recently worried:  “What ally around the world can feel safe in their alliance with us?” The right question is with what ally can America feel safe?

Instead of relentlessly collecting more international dependents, Washington policymakers should drop Allies In Name Only (AINOs).

Engage North Korea as Pyongyang Advances Along the Nuclear Path

North Korea continues along the nuclear path. A new report warns that Pyongyang could amass a nuclear arsenal as large as 100 weapons by 2020. That would make the North a significant regional power.

Washington has no realistic strategy to deal with the Democratic People’s Republic of Korea. Some policymakers have advocated offensive military action, but that likely would trigger a war which would devastate South Korea.

The Obama administration’s chief policy has been to reaffirm Washington’s defensive alliance with the South. Some 28,500 U.S. troops are on station, backed by conventional and nuclear forces elsewhere.

However, this only encourages the North’s nuclear development. The DPRK sees nukes as protection against the allies’ overwhelming military strength, prestige for an otherwise geopolitical nullity, potent tool of extortion, and domestic reward for the military.

Some analysts look to more economic sanctions to stop a North Korea bomb. But neither China nor Russia is likely to approve new UN penalties. Additional U.S. sanctions alone aren’t likely to cause the North to surrender a program deemed essential to the regime’s international standing and domestic stability.

There also is the increasingly forlorn hope for negotiation. However, voluntary disarmament seems especially unlikely given the critical political role played by the military in Pyongyang.

Some policymakers look to Chinese pressure on the North as a panacea. But the People’s Republic of China is not inclined to take steps which might violently collapse the North Korean state.

Nigerians Elect Former Dictator to Save Democracy

Nigerians have elected a new president, the first time an opposition candidate defeated an incumbent since the restoration of democracy in 1999. Muhammad Buhari, a 72-year-old former dictator and perennial presidential candidate, will take over on May 29.

Nigeria enjoys the continent’s largest GDP but trails several African nations in per capita GDP. Although possessing extensive energy resources, the nation suffers from regular power outages.

Nigerians are entrepreneurial but nearly a quarter of them are unemployed. An intrusive, exploitative state blocks economic development and steals wealth. According to the latest Economic Freedom of the World Nigeria has one of the world’s least open economies, coming in at 125 of the 152 countries rated. This discourages foreign investment in what should be the continent’s best market.

Corruption raises the cost of business and rewards economic manipulation. Last year an expatriate worker told me:  “Nigeria is not a country. It is an opportunity.”

Nigerian politics is anything but clean. Jonathan’s People’s Democratic Party ruled for 16 years, using patronage and other tools of incumbency to maintain power.

Nigeria better protects political rights and civil liberties than many African states. However, the State Department pointed to a number of human rights challenges, including “vigilante killings; prolonged pretrial detention; denial of fair public trail; executive influence on the judiciary; infringements on citizens’ privacy rights; restrictions on the freedoms of speech, press, assembly, religion, and movement.”

Insecurity is pervasive. When I visited last year my group sported a well-armed escort. The oil-rich Niger Delta is especially dangerous; executives admit to paying bribes to discourage attacks.

Worse, sectarianism divides the nation. At times violence flares.

In recent years the murderous Boko Haram extended its reach across Nigeria. The group received a blaze of publicity last year after kidnapping hundreds of school girls. Boko Haram has killed more than 20,000 Nigerians and displaced 1.5 million people in Nigeria and neighboring countries.

The Nigerian military is underfunded and ill-trained, distrusted by civilian politicians. Worse, government abuses generate support for Boko Haram.

Understandably, Nigerians desperately wanted change. But in what direction?

As dictator, Buhari lasted only 20 months before being unseated by another general. The Economist observed: “He detained thousands of opponents, silenced the press, banned political meetings and had people executed for crimes that were not capital offenses when they were committed.”

Buhari says he now recognizes democracy to be the better option. He has a reputation for probity and being a Muslim may better position him to combat Boko Haram.

However, energizing the economy may prove more difficult. Candidate Buhari promised much. While there are some free market advocates in Buhari’s coalition, more around him are not and he is thought to be an “unreconstructed statist,” according to the Financial Times. This is a prescription for economic failure.

His previous record is cause for pessimism. Noted the Economist: “He expelled 700,000 immigrants under the illusion that this would create jobs for Nigerians. His economic policies, which included the fixing of prices and bans on ‘unnecessary’ imports, were both crass and ineffective.” Nigeria cannot afford a repeat performance.

Still, in at least one important respect the election was good news. Despite some technical problems, the election went surprisingly well. Jenai Cox of Freedom House called the vote “one of the smoothest and least violent in Nigeria’s history.”

Equally important was President Jonathan’s unconditional acceptance of the results. He declared:  “I promised the country free and fair elections. I have kept my word.” And he did.

As I point out in Forbes online, “Nigeria’s success suggests that the country has developed a lusher civil society and stronger commitment to the rule of law than often thought. Moreover, this experience offers hope for other African nations struggling with democracy.”

Nigeria is a tragedy. Not so much because of the bad events which have occurred, which are many, but for its many lost opportunities and great unused potential. The future of Nigeria now rests in Muhammad Buhari’s hands.

Ukraine: The World’s Second-Highest Inflation

Venezuela has the dubious honor of registering the world’s highest inflation rate. According to my estimate, the annual implied inflation rate in Venezuela is 252%.

The only other country in which this rate is in triple digits is Ukraine, where the inflation rate is 111%. The only encouraging thing to say about Ukraine’s shocking figure is that it’s an improvement over my February 24th estimate of 272%—an estimate that attracted considerable attention because Matt O’Brien of the Washington Post understood my calculations and reported on them in the Post’s “Wonk blog.”

As a bailout has started to take shape in Ukraine, the dreadful inflation picture has “improved.” Since February 24th, the hryvnia has strengthened on the black market from 33.78 per U.S. dollar to 26.1 per U.S. dollar. That’s almost a 30% appreciation (see the accompanying chart). 

Restoring the Old-Fashioned Budget Virtue of … FDR and Truman?!?

This is a column I never expected to write. That’s because I’m going to applaud Presidents Franklin Roosevelt and Harry Truman.

This won’t be unconstrained applause, to be sure. Roosevelt, after all, pursued awful policies that lengthened and deepened the economic misery of the 1930s. And, as you can see from this video, the “economic bill of rights” that he wanted after WWII was downright malicious.

Truman, meanwhile, was a less consequential figure, but it’s worth noting that he wanted a restoration of the New Deal after WWII, which almost certainly would have hindered and perhaps even sabotaged the recovery.

But just as very few policymakers are completely good, it’s also true that very few policymakers are totally bad. And a review of fiscal history reveals that FDR and Truman both deserve credit for restraining domestic spending during wartime.

In a new column I wrote for The Hill, I specifically responded to the cranky notion, pursued by Bernie Sanders, the openly socialist U.S. senator from Vermont, that there should be tax hikes on the rich to finance military operations overseas.

The idea has a certain perverse appeal to libertarians. We don’t like nation-building and we don’t like punitive tax policy, so perhaps mixing them together would encourage Republicans to think twice (or thrice) before trying to remake the world.

But “perverse appeal” isn’t the same as “good policy.”