Saturday, April 30, 2011

The Sinew of War

The following is a passage from former senior U.S. intelligence official Michael Scheuer's book Imperial Hubris:

Just under the noise, death, and rhetoric yielded by the foregone episodes lies a largely ignored factor that may constitute al Qaeda's main war effort-the steady bleeding of the U.S. economy. In late 2002, Abu-Ubayd al-Qurashi wrote an essay in Al-Ansar called "A Lesson in War" wherein he described al Qaeda's intention to follow Clausewitz's principle of attacking its foes "center of gravity." He said al Qaeda would unrelentingly focus on identifying that point and make "sure to direct all available force against the center of gravity during the great offensive." Al-Qurashi wrote that al Qaeda had studied North Vietnam’s victory over the United States, and found that Hanoi had “fully understood that America’s center of gravity lay in the American people,” and by killing America’s “dearest ones…the war ended with victory on the Vietnamese side.” Al Qaeda took this lesson to heart, Qurashi wrote, but believes that current center of gravity is its economy.

...A conviction has formed among the mujahedin that American public opinion is not the center of gravity in America. The Zionist lobbies, and with them the security agencies, have long been able to bridle all the media that control the formation of public opinion in America. This time it is clearly apparent that the American economy is the American center of gravity. This is what Shaykh Usama Bin Ladin has said quite explicitly. Supporting this penetrating strategic view is that the Disunited States of America are a mixture of nationalities, ethnic groups, and races united only by the "American Dream," or, to put it more correctly, worship of the dollar, which they openly call "the Almighty Dollar." May God be exalted greatly above what they say! Furthermore, the entire American war effort is based on pumping enormous wealth at all times, money being, as has been said, the sinew of war.

Leaving aside jargon about Zionists and conspiracies, al-Qurashi's depiction of al Qaeda's intent seems to mesh with reality. The 11 September attacks, of course, devastated the U.S. economy; it is only now, in early 2004, recovering. But beyond the immediate impact lie massive expenditures-at all levels of American government-that will add permanently to the size and cost of government. In addition to the cost of hiring thousands of federal employees for homeland security purposes; acquiring buildings, equipment, and training to make them effective; and requiring proportionate upgrading at state, municipal, and local level; there lie what must be substantial amounts of unpredictable expenditures for overtime wages-in government and business alike-whenever Washington raises the threat level, or when high levels of security are provided at public places or functions heretofore not seen as serious security risks.

Likewise al Qaeda is at the core of massive increases in defense spending, costs that are likely to accelerate as U.S. officials find the military is not organized, manned, trained, or equipped to fight the kind of wars being waged in Afghanistan and Iraq. Finally, economic planning by government and business must be experiencing significant difficulty in projecting expenditures, given threats of a WMD attack in the United States; the enormous monetary, materiel, and manpower costs of running several wars; the steady diet of shocks thrown into business by steady call-ups of reserve-soldier employees; and-especially in the transport and tourist sectors-by such events as the "emergency" cancellation of flights from Western Europe to the United States in late 2003 and early 2004. Beyond the sound of bombs, then, al Qaeda's attack has continued since 11 September on its notion of the U.W. "center of gravity." Without a second 11 September-like attack, al Qaeda has stimulated immense unanticipated spending, much of which will become fixed in budgets at all levels of government. "Aborting the American economy is not an unattainable dream," al-Qurashi wrote in Al-Ansar. Perhaps he is correct.

It should be noted that even though what Scheuer writes here both was and is true, the fact remains that al Qaeda hasn't done nearly as much to attack America's center of gravity since 9/11 as they could have.

The basic cause of this is that apparently since the 19 hijackers were sent to America to perform the 9/11 attacks, al Qaeda has refrained from sending another team into American soil.

So far all the post-9/11 attacks which could possibly be traced to al Qaeda have either been against non-American targets or have involved single individuals such as the underwear bomber.

While the underwear bomber did quite a good job of provoking an overreaction, the damage the Nigerian did was small potatoes compared to the kind of damage a team of terrorists could've done.

Also there's the issue that individual terrorists are profoundly vulnerable to entrapment by undercover FBI agents, as they so often are moved to seek help from people they met on their own.

In contrast self-contained terrorist teams are nearly invulnerable to undercover agents as they have no need to seek help from anyone but the confederates they met in this or that non-American training camp.

This raises the question: "Why has al Qaeda refrained from launching self-contained team based attacks on America since 9/11?"

I suppose the interesting issue here is whether it's a question of massive tactical failure on al Qaeda's part or rather a rational choice driven by some grand strategic insight which can only be guessed at.

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Tuesday, April 26, 2011

The American Government's outstanding debt to GDP ratio (1790 to 2009)


As can be seen in the above chart provided by reader Marius, the American Federal Government's outstanding debt to Gross Domestic Product ratio has never, with the exception of WWII and its immediate aftermath, been higher than it is now.

It's of interest how the WWII debt was steadily paid off every year after the war ended until it was back to what it was before America got involved, and how sharply this contrasts with how the very large amount of debt incurred since 1980 has never been paid off more than fractionaly.

To quote from the Jan. 2010 Jim Jubak article 'Approaching the Debt Tipping Point':

The threshold is when government debt rises above 90% of national gross domestic product (GDP), economists Carmen Reinhart and Kenneth Rogoff argue in a paper headed for publication in the American Economic Review.

After looking at data from 44 countries spanning 200 years, they’ve concluded that at ratios of debt to GDP up to 90%, there’s not much correlation between government debt and economic growth.

Above 90%, however, median economic growth rates fall by one percentage point and average economic growth rates fall by about four percentage points.

That makes the 90% level a kind of make-or-break point for countries that are hoping to grow their way out of debt. If the government debt load climbs above 90% of GDP, economic growth slows so much that growth is no longer a viable solution to reducing that debt.

Above the 90% level, governments serious about reducing their debt load have to increasingly rely on “solutions” such as reducing wages and depreciating their currencies, which might over time increase global economic competitiveness enough to give a boost to national economic growth. In the short to medium term, however, these “solutions” inflict real pain on the citizens of the countries since they reduce standards of living.

The scary thing about Reinhart and Rogoff’s conclusion is how close the United States and other major developed world economies are to the 90% cutoff thanks to the global financial and economic crisis.

The United States finished 2009 with a debt-to-GDP ratio of 85%, according to the International Monetary Fund (IMF). On current trend, the United States will finish 2010 at 94% and 2011 at 98%.

According to the Reinhart and Rogoff study:

1. When America has had a debt to GDP ratio of less than 30 percent, it's averaged GDP Growth of 4.0%.

2. When America has had a debt to GDP ratio of 30 to 60 percent, it's averaged
GDP growth of 3.4%.

3. When America has had a debt to GDP ratio of 60 to 90 percent, it's averaged
GDP growth of 3.3%.


4. When America has had a debt to GDP ratio of more than 90 percent, it's averaged GDP growth of negative 1.8%.

The the study finds a similar pattern in the totality of 
twenty Advanced Economies it looked at
, with a medium growth rate of 3.9% when they had less than 30 percent debt to GDP, a medium growth rate of 3.1% when they had from 30 to 60 percent debt to GDP, a medium growth rate of 2.8% when they had 60 to 90 percent debt to GDP, and a medium growth rate of only 1.9% when they had a 90 percent of more debt to GDP.

Of course correlation shouldn't be assumed to prove causation here, as Paul Krugman has pointed out, but this fact may be less important than Krugman seems to think.

A correlation can have predictive power irrespective of whether it's based on one variable causing the other.
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Saturday, April 2, 2011

An update on Hadji Murad's people

Auster recently wrote an entry entitled "The Islamization of Chechnya" containing the following quotation from an article by Aymenn Jawad:

A recent report by Human Rights Watch (HRW), entitled "You Dress According To Their Rules," should highlight the growing need for policymakers in Moscow to counter the increasing entrenchment of sharia in Chechen society.

HRW's analysis documents extensively the enforcement of Islamic law vis-à-vis women's rights in Chechnya, as part of Chechen President Ramzan Akhmadovich Kadyrov's "Campaign for Female Virtue." In fact, Kadyrov, who was first appointed president of the Chechen Republic by the Kremlin in February 2007, has never disguised his advocacy of sharia. Soon after becoming president, he defended polygamy as part of Chechen tradition, and in 2009 he praised the male relatives of seven young women whom they shot in the head and dumped by a roadside as part of a series of honor killings. Speaking to journalists on a Friday afternoon outside a mosque in Grozny, the capital of the Chechen Republic, Kadyrov said that the women had "loose morals," thereby deserving death, and that "no one can tell us not to be Muslims." Even so, polygamy and honor killings are unambiguously prohibited according to Article 14 of the third chapter of the Family Code of the Russian Federation.

A key aspect of Kadyrov's drive towards sharia has been forcing women to wear the hijab. By the autumn of 2007, the Chechen president had publicly stated on television that all women working for state institutions had to wear headscarves, and that such an unwritten law should be implemented immediately. The results were soon evident as female television anchors, government officials, teachers and staff-members of the ombudsman's office began wearing headscarves to work by the end of that year. In schools and universities, where the hijab was introduced under Kadyrov as part of mandated uniforms in 2007, students who refused to wear the hijab were simply denied entry to their respective offices and academic institutions, even though no legal basis existed for this new requirement.


It's notable that the only part of the Russian Federation socially conservative and patriarchal enough to produce a president like Ramzan Akhmadovich also has a Total Fertility Rate far higher than other parts of the Russian Federation:

Total fertility rate (TFR) in Chechen republic exceeds the replacement level.

In 2008 it was 3.40 per woman at the age of 15-49.

For comparison, in the same year TFR in neighboring Republic of Dagestan was 1.95, in Republic of Ingushetia it was 1.96, in the  whole South Federal Districtit was 1.67 and in the whole Russian Federation it was 1.49.

Note I do not deny the possibility that the Chechans are taking social conservatism too far under the leadership of Kadyrov.

However, two things need to be pointed out:

1. They certainly aren't taking things too far in one direction more than the West is taking things too far in the opposite direction.

2. The Chechen way of doing things is more adaptive and natural than the current Western way of doing things.

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"All is Number" -Pythagoras






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