Reference: The Fraud-Based US Economy

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The attached blog,  “Failing to Prosecute Wall Street Fraud Is Extending Our Economic Problems,”

is a cut-and-paste accumulation of a variety of outlooks. Most are  based on analyses or accumulated wisdom, but some appear based on hunches, ideologies, etc.  Taken together, however, they paint a horrifying picture of the American political economy and our prospects for the future.  Moreover, that picture does not change materially if you throw half of the pastings away.  While the implications of fraud, per se, are clear, the horrifying picture of what is happening emerges when one tries to generalize on the description.

The anonymous guest author is telling us, in effect, that the neural network of our political-economy — i.e., the information system that provides the wherewithal for implicit and explicit homeostatic guidance and control – – has become so corrupted by fraud and disinformation that a pervasive atmosphere of confusion, menace, fear, mistrust, and alienation is breaking down the system into non-co-operative activities, thereby creating a kind of paralysis of will that, left unchecked, will prolong and deepen our economic crisis. <

One psychologist insightfully likened the situation to trauma and post traumatic stress disorder on a national scale.

Any student of Colonel Boyd's theory [1] of competition and conflict (Patterns of Conflict) and his idea of the OODA loop will immediately recognize the symptoms of confusion, menace, fear, mistrust, and alienation, expressed below.  These are the emergent properties of decision cycles, or Observation – Orientation – Decision – Action (OODA) Loops, that have been folded back inside themselves and have become focused inward and are disconnected from their environments, but connected to some kind of internal dynamic that feeds on itself. Of course, Boyd was discussing military strategy and the art of winning by wrecking his adversary's OODA loops to undermine his adversary's organic cohesion, while preventing his adversary from doing the same thing to him.

Nevertheless, it would be a mistake to dismiss his ideas as applying only to the art of war.  That is because Boyd's aim was to describe in a generalized sense how the human mind works in any conflict involving a clash of independent wills, what the mind's  strengths and weaknesses are, and how these strengths and weaknesses play out in the competition that is the essence of life.

So, it should not be surprising that many politicians, businessmen, and scholars  have recognized that Boyd's general ideas can be tailored to any kind of competition or game (just google “OODA loop”) and have sought gain by exploiting these ideas against others.  Most people, however, instinctively evolve  similar if less well defined ideas, because if Boyd's synthesis of the OODA loop is correct, these dynamics are innate in the evolved wiring of left and right hemispheres of our brains [2], and therefore will exhibit their outward manifestations in repetitive patterns in conflicts over time — which brings back to the tapestry of confusion, menace, fear, mistrust, and alienation and the counter weights that are necessary to overcome them.

Viewed through the lens of Boyd's theory of competition and conflict, the attached blog clarifies one question about the players in the economic game in particular: The information assembled below clearly shows who is the hoser and who is the hosee.

One final point, history has shown that once an nation's political-economic OODA loops become infected by the virus of corrupted information it is very very hard to clean it out.  The hosing will continue unless ruthless action roots it out, otherwise, we will experience continued disintegration ending in a sudden collapse, like what happened to Rome on a grand time scale or to France's Third Republic [3] on a more tangible time scale.

With this background in mind, now read the attached blog and draw you own conclusions about what is needed to re-oreint the corrupted political-economic OODA loops that are leading America to ruin.
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NOTES:

[1] A short bio of  Boyd and his theories as well as the briefing slides he used to explain his theories can be found in the Boyd folder here.  Robert Coram's excellent biography of Boyd and his theories can be found here.

[2] See, for example, my analysis of how Barack Obama beat Hillary Clinton and John McCain here.

[3]  William L. Shirer's Collapse of the Third Republic, is a case study in how the dry rot of inward focus in the 1930s set France up for its sudden collapse in during the German invasion of May 1940.  His description of how the flow information among the military and political leaders became corrupted during the invasion is a microcosm of how inwardly focused OODA loops, lubricate by menace, mistrust, and fear result inevitably in the breakdown of cohesion, paralysis, chaos, and collapse.

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ATTACHED BELOW THE LINE IN FULL for Information Availability Assurance Into the Future

Failing to Prosecute Wall Street Fraud Is Extending Our Economic Problems

Posted By Guest Author On December 15, 2010 @ 8:30 am In Think Tank

http://www.ritholtz.com/blog/2010/12/failing-to-prosecute-wall-street-fraud-is-extending-our-economic-problems/print/

Continue reading “Reference: The Fraud-Based US Economy”

Reference: CRS 2010 Intelligence Issues for Congress

Congressional Research Service

29 Pages Online

Tip of the Hat to Gary Price at LinkedIn.

Phi Beta Iota: This is of passing interest as an overview of what people are thinking about at the shallowest possible level in relation to the Wall Street/Military-Industrial-Congressional Complex (MICC).

STRIKE ONE: The document still does not understand that overt Human Intelligence (HUMINT) is 90% of Open Source Intelligence (OSINT), or that OSINT is a discipline in its own right as well as an interactive element of any properly-managed classified discipline (none are).

STRIKE TWO: The document fails to represent the near-total failure of the US Intelligence Community to meet the needs of all consumers below the level of President, and does not appear to recognize the sharp negative assessments of General Tony Tiny (4% “at best”) or General Mike Flynn (“irrelevant”).

STRIKE THREE: The document fails to present Congress with the deeply documented alternatives to unilateral top-down very expensive technical-collection driven secret intelligence, and it especially fails to outline the immediate possibilities of the Open Source Agency (OSA) as called for in the 9-11 Commission Report on pages 23 and 423 (but under diplomatic auspices), or the integrated elements of that agency, the Strategy Center advocated by General Tony Zinni and the Multinational Decision Support Centre proposed by comprehensive architect Robert Steele.

References: Frog Loves FAS & CRS

Congressional Research Service

We have always held the Federation of American Scientists (FAS), and its prime mover Steve Aftergood, in the highest esteem.  As we have been building this new site for the public, we have noticed others stealing from FAS and relabeling materials downloaded from FAS as their own.  This is unethical and disqualifies any site so doing from being considered a public service.

Our policy is to always link to persistent URLs offered by others.  We only create safety copies when there is a high probability the existing URL will not be persistent.  Below is a Valentine from Frog to FAS (and to CRS, which may one day grow up to be a public service, not just a shallow pond for Members to dip their toes into diluted substance).  Frog links to the FAS CRS master page.

Frog Loves FAS-CRS
Frog Loves FAS-CRS

Reference: Congressional Research Service (CRS) Report on The Department of Homeland Security (DHS) Intelligence Enterprise–Operational Overview and Oversight Challenges for Congress

Congressional Research Service

In our view the Department of Homeland Security (DHS) went down the wrong road, trying to create a “mini-me” secret enterprise.  The Joint Fusion Centers have all collapsed because–as we anticipated and articulated–there is nothing really valuable that can be done with a one-way saline drip from the top to the bottom.  Instead, DHS needs to create a robust bottom-up Community Infomration Sharing and Sense-Making Architecture, and as we have pointed out in the past, the unclassified concepts, doctirine, tools, and training are precisely analogous to what we need for multinational information sharing and sense-making for early warning, stabiliztion & reconstruction, achievement of the Millenium Goals, and so on.

Below is an excellent overview from CRS–the one failing of CRS is that they do not know what they do not know, and hence evaluate on industrial-era benchmarks rather than information-era bvenchmarks.

CRS on DHS Intel
CRS on DHS Intel

Follow the Frog to see our briefing to DHS Intel at the invitation of LtGen Pat Hughes, USA (Ret), the first Assistant Secretary for Intelligence there.  he continue to hold him in the highest esteem, as with his successor, Charlie Allen (since retired)–when such great men fail, we must conclude that we have a pathological system, not that they lacked in any way.

OSS CEO at DHS
OSS CEO at DHS

Reference: Congressional Research Service Report on Congress as a Consumer of Intelligence Information

Congressional Research Service

Below is a very important report that focuses primarily on Congress as a consumer of SECRET information.  The report has yet to be written on Congressional needs for decision-support (intelligence) that is unclassified and can be shared with constituents, the press, and the private sector being regulated and taxed.

CRS Report
CRS Report

Click on the Frog to see a one-page listing of Congressional committees and how they would benefit from an Open Source Agency (OSA) that included Congress via the Congressional Research Service (CRS) as a primary stake-holder and recipient of unclassified decision-support.  Conressional needs are also addressed by The Smart Nation Act: Public Intelligence in the Public Interest.

Congress & OSINT
Congress & OSINT
Congress & OSINT
Congress & OSINT

Reference: Congressional Research Service Report Open Source Intelligence (OSINT) Issues for Congress

Congressional Research Service

Below is the 2007 report on Open Source Intellience (OSINT).  It was a hugely mediocre effort through no fault of the junior author, Al Cumming, who is now the senior author for intelligence at the Congressional Research Service (CRS).  A former Staff Director of the Senate Select Committee on Intelligence (SSCI), Mr. Cumming is a bit more inquisitive, integrative, and evaluative, all necessary in helping Congress understand emerging capabilities that are still resisted by the mandarins of secrecy while not well understood by the intellience consumers who should be doing their own OSINT but do not.

CRS OSINT

Click on the Frog to read a vitrolic angry critique by OSS CEO Robert Steele, possibly the last angry document closing out 20 years of blind opposition from the secret world.  This battle is OVER.  The good people of America have won.  Public intelligence in the public interest is here to stay, and we anticipate a growing demand to cut the secret intelligence budget in half so as to properly fund OSINT, education, and research essential to restoring the competitiveness of the USA.

OSS CEO Critique
OSS CEO Critique