Intelligence Failure

Our Vision
A secure America, a confident public, and a strong and resilient society and economy.
Our Mission
We will lead the unified national effort to secure America. We will prevent and deter terrorist attacks and protect against and respond to threats and hazards to the Nation. We will secure our national borders while welcoming lawful immigrants, visitors, and trade. From Budget-in-Brief for Fiscal Year 2010, Department of Homeland Security[1]

On December 25, 2009, the Department of Homeland Security (DHS) was caught with its pants down when Umar Farouk Abdulmutallab set his own pants on fire. Abdulmutallab, a Nigerian traveling from Amsterdam, tried to bring down Northwest Airlines flight 253 and its 278 passengers by igniting an explosive in his underwear as the plane was on approach to Detroit.

This was a failure by the government to do the job it arrogated in 2002 with the creation of the DHS, which includes the Transportation Security Administration (TSA). Despite an annual budget of $55 billion, its performance was an intelligence failure in the truest sense. It wasn't a failure to put enough people or money into detecting potential terrorists--the would-be assassin's own father had reported him to US embassy officials in Nigeria six months earlier:

"Nigeria's This Day newspaper cited family members as saying that the suspect's father, Umaru Mutallab, the retired chairman of First Bank in Nigeria, has been uncomfortable with his son's 'extreme religious views' and had reported him to the US embassy and Nigerian security agencies six months ago.

"The US government created a record on Umar Farouk Abdulmutallab last month in the intelligence community's central repository of information for known and suspected international terrorists, but there was not enough negative data to place him on a no-fly list, a US official said."[2]

It was a failure of intelligence analysis.[3] The CIA knew about Abdulmutallab, but his name never made it to the no-fly list.[4] The DHS could not have dropped its pants any lower unless DHS agents had driven Abdulmutallab to the airport and stopped to pick up his explosives on the way.

Who actually protected citizens against the terrorist attack? Who responded in a way that "prevented and deterred" a terrorist attack? The passengers on the plane. It was only after passengers subdued the would-be bomber and the danger had passed that the DHS sprang into action, harassing civilian bloggers with a subpoena for revealing "sensitive content" from a leaked TSA security directive. It was "the second time in a month that the TSA has found some of its sensitive airline security documents on the Internet."[5] Apparently the DHS makes a habit of getting caught with its pants down.

What the Department of Homeland Security Does For You

What exactly do Americans get from the DHS for $55 billion? Compared to the $700 billion TARP bailout for bankers, that's not much, so we probably shouldn't expect much.

At the time of the attempted bombing, the DHS was very busy fulfilling its version of its mission to "secure America." On December 25, 2009, "A Sampling of Current Initiatives" on the Homeland Security web site showed the DHS was busy securing the DHS bureaucratic empire. The lead item on its list describes the construction of a $650 million temple for the DHS:

"The American Recovery and Reinvestment Act contains $650 million to support construction of the Department's new headquarters, which will bring together components scattered geographically throughout the Washington area. As part of the same effort, the Department has begun consolidating over 40 leases in the National Capital Region, saving taxpayers $163 million over the next 30 years."

Today businesses operate effectively with multiple locations around the world, staying connected with computers and cell phones, but the DHS needs to "bring together components scattered geographically throughout the Washington area"? Spending $650 million to save exactly 25% of the total over the next 30 years? Who else but the federal government would spend $650 million to save $163 million?

As the DHS pretends to "secure America," the result of its most visible activity is that airplane travelers get to be searched and abused by TSA personnel. Some Americans might imagine that these airport security measures are a necessary part of a well-thought out plan by the DHS to prevent terrorism. They would be wrong. They are in fact, knee jerk responses to incidents in the past where the DHS was habitually caught with its pants down. Consider the past actions of our protectors:

• Shoe bomber Richard C. Reid tried to detonate PETN explosive in his shoes during an American Airlines flight in December 2001. The federal government now requires all human cattle to take off their shoes before boarding.
• Next, British authorities said they uncovered a plot to use liquid explosives, so we can't carry liquids onboard.[6]

Now the underwear bomber tries to detonate PETN explosives in his underwear, so our "protectors" are planning full body scans with millimeter-wave and backscatter X-ray scanners so they can see beneath our underwear in a "virtual strip search."[7][8][9][10][11] President Obama directed the DHS to speed the installation of $1 billion in advanced-technology body scanners at American airports and to work with international airports so that they upgrade their own equipment for use on passengers on US-bound flights.[12]

How would the DHS respond if terrorists adopt drug-running mule techniques and a terrorist tries to bring explosives on the plane in his rectal cavity? We may find out: according to CBS News, Abdullah Asiera, an al Qaeda member tried to kill a Saudi Prince in a Saudi palace:

"Taking a trick from the narcotics trade - which has long smuggled drugs in body cavities - Asieri had a pound of high explosives, plus a detonator inserted in his rectum."[13]

If the DHS continues to respond as it has after every new security incident, and pulling our pants down isn't enough, we might expect arbitrary on-the-spot rectal and vaginal exams.[14] Whatever the DHS response, we can be sure it will involve more abuse by the TSA; America is the "land of the free" only as long as you do what you're told, and only if you adopt the fatuous mindset of James Carville who, if told to jump, would ask: "Off what cliff?"[15]

The Real Intelligence Failure

"The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable." H. L. Mencken

Since 9-11, most Americans followed in lock step as the Bush (R) administration and Congress used that crisis as an opportunity to pass the Patriot Act, and create the TSA and the DHS to "protect" Americans. The massive increase in government bureaucracy and the resultant loss of American freedoms is Bush's baby. Now that President Obama (D) and secretary of DHS Janet Napolitano (D) are in charge, Bush supporters can look in a mirror for an idea as to how things got this way.

Each time the DHS gets caught off guard, it responds with excuses, and then calls for more "security" measures that treat air travelers like cattle. Americans are becoming conditioned to reflexively relinquish responsibility to our rulers without wondering why people are literally dying to kill them. Could it have anything to do with US foreign policy?

The "candidate for change" not only hasn't closed Guantanamo (they're moving it to Illinois instead), and is maintaining the status quo in Iraq, but he is increasing US military efforts in Pakistan and Yemen. In addition to directing the DHS to speed use of body scanners a week after the underwear bomber incident, President Obama threatened to widen the war in the Middle East by moving the fight to Yemen and "more than doubling" military aid to Yemen.[16]

The real intelligence failure isn't in government; the real intelligence failure is with Americans who relinquish their freedoms and responsibilities, and trust politicians to keep them safe.

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[1] "Budget-in-Brief Fiscal Year 2010," US Department of Homeland Security, (Accessed at http://www.dhs.gov/xlibrary/assets/budget_bib_fy2010.pdf on January 9, 2010).

[2] "Flight terror suspect Abdulmutallab charged with trying to blow up jet," James Sturcke, guardian.co.uk, 27 December 2009, (Accessed at http://www.guardian.co.uk/world/2009/dec/27/us-terror-flight-abdulmutallab-charged on January 11, 2010).

The "system" knew about the underwear bomber in advance because they were told about him by the young man's father:

"The cable from the State Department outlining Mr. Abdulmutallab’s father’s warnings about his son was available to the N.C.T.C. officials who maintained the no-fly list, the report said. But the cable alone did not meet the minimum standard for Mr. Abdulmutallab to get on the list."[4]

[3] "Flight 235 (sic): This time, plenty of data but analysis failed," By LYNN SWEET, Chicago Sun-Times, January 8, 2010, (Accessed at http://www.suntimes.com/news/sweet/1980054,CST-NWS-sweet08.article on January 12, 2010).

[4] "Obama Details New Policies in Response to Terror Threat," By JEFF ZELENY and HELENE COOPER, NY Times, January 7, 2010, (Accessed at http://www.nytimes.com/2010/01/08/us/politics/08terror.html?th=&emc=th&pagewanted=all on January 9, 2010).

"Mr. Abdulmutallab, who has been linked to the Yemeni branch of Al Qaeda, came to the attention of the American authorities when his father went to the American Embassy in Nigeria last month to report that his son had expressed radical views before disappearing. The father, a respected retired banker, did not say his son planned to attack Americans but sought help locating him and bringing him home, United States officials said.

"After Mr. Abdulmutallab’s father asked for help, embassy officials from several agencies, including the Central Intelligence Agency, met to discuss the case, officials said.

"Paul Gimigliano, a C.I.A. spokesman, said that was the first time the agency had heard of the young Nigerian. 'We did not have his name before then,' he said.

"The embassy sent a cable to Washington, which resulted in Mr. Abdulmutallab’s name being entered in a database of 550,000 people with possible ties to terrorism. But he was not put on the much smaller no-fly list of 4,000 people or on a list of 14,000 people who are required to undergo additional screening before flying, nor was his multiple-entry visa to the United States revoked.

“'It now appears that weeks ago this information was passed to a component of our intelligence community but was not effectively distributed so as to get the suspect’s name on a no-fly list,' Mr. Obama said of the father’s warning. 'There appears to be other deficiencies as well. Even without this one report, there were bits of information available within the intelligence community that could have and should have been pieced together.'"[5]

[5] "TSA subpoenas bloggers, demands names of sources," By Eileen Sullivan, Associated Press, Dec 30, 2009 (Accessed at http://news.yahoo.com/s/ap/20091231/ap_on_go_ca_st_pe/us_airliner_attack_tsa_subpoenas on December 31, 2009).

[6] "British Authorities Say Plot to Blow Up Airliners Was Foiled," By ALAN COWELL and DEXTER FILKINS, NY Times, Published: August 10, 2006, (Accessed at http://www.nytimes.com/2006/08/10/world/europe/11terrorcnd.html?fta=y&pagewanted=all on December 31, 2009).

[7] "Explosive on Flight 253 Is Among Most Powerful," By KENNETH CHANG, NY Times, Published: December 27, 2009, (Accessed at http://www.nytimes.com/2009/12/28/us/28explosives.html?_r=1&sudsredirect=true on December 31, 2009).

[8] "Debate Over Full-Body Scans vs. Invasion of Privacy Flares Anew After Incident," By JOHN SCHWARTZ, NY Times, Published: December 29, 2009, (Accessed at http://www.nytimes.com/2009/12/30/us/30privacy.html?th&emc=th on December 31, 2009).

[9] "Underwear Bomber Renews Calls for ‘Naked Scanners’," By Noah Shachtman, Wired Magazine, December 28, 2009, (Accessed at http://www.wired.com/dangerroom/2009/12/underwear-bomber-renews-calls-for-naked-scanners/ on December 31, 2009).

[10] "New scanners break child porn laws," by Alan Travis, guardian.co.uk, 4 January 2010, (Accessed at http://www.guardian.co.uk/politics/2010/jan/04/new-scanners-child-porn-laws January 5, 2010).

"The rapid introduction of full body scanners at British airports threatens to breach child protection laws which ban the creation of indecent images of children...

"Privacy campaigners claim the images created by the machines are so graphic they amount to 'virtual strip-searching' and have called for safeguards to protect the privacy of passengers involved."

[11] "Child Porn Fears Block Under 18s From Full Body Scanners," Updated: 01- 5-10, Huffington Post, (Accessed at http://www.huffingtonpost.com/2010/01/05/child-porn-fears-limit-fu_n_411769.html on January 5, 2010).

Scans of children under 18 have been banned in Great Britain.

[12] "Obama Details New Policies in Response to Terror Threat," By JEFF ZELENY and HELENE COOPER, NY Times, January 7, 2010, (Accessed at http://www.nytimes.com/2010/01/08/us/politics/08terror.html?th=&emc=th&pagewanted=all on January 9, 2010).

[13] "Al Qaeda Bombers Learn from Drug Smugglers," By Sheila MacVicar , CBS News, LONDON, Sept. 28, 2009, (Accessed at http://www.cbsnews.com/stories/2009/09/28/eveningnews/main5347847.shtml on January 4, 2010).

[14] "Fliers Complain About X-Rated Security Screenings," by Pam Zekman, CBS Chicago, Jul 22, 2008, (Accessed at http://cbs2chicago.com/investigations/xrated.security.screenings.2.777423.html on January 11, 2010).

[15] "Carville: Airport scanners can 'measure my penis'," January 8, 2010, by Christina Wilkie, The Hill, (Accessed at http://washingtonscene.thehill.com/in-the-know/36-news/1349-carville-airport-scanners-can-measure-my-penis on January 9, 2010).

[16] "Obama Says Al Qaeda in Yemen Planned Bombing Plot, and He Vows Retribution," By PETER BAKER, NY Times, January 2, 2010, (Accessed at http://www.nytimes.com/2010/01/03/us/politics/03address.html?th&emc=th on January 3, 2010).

Eric Margolis points out some of what US military aid to Yemen has already accomplished:

"In December, the Saudis, backed by US air power, CIA and special forces, intervened against Shia Houthi tribesmen along Yemen’s northern desert border. A semisecret US base in Djibouti is being used for attacks on Yemen, Somalia and Kenya.

"Just before the Detroit air incident, US warplanes killed 50–100 Houthi tribesmen fighting the American-backed regime. US Special Forces, warplanes and killer drones have been active since 2001, assassinating Yemeni militants and antigovernment tribal leaders. It was only a matter of time before Yemeni jihadists struck back at the US."[17]

[17] "Welcome, Americans, to Mysterious Yemen," by Eric Margolis, LewRockwell.com, (Accessed at http://www.lewrockwell.com/margolis/margolis175.html on January 5, 2010).

Looking Without Seeing

He said, "Go and tell this people: 'Be ever hearing, but never understanding; be ever seeing, but never perceiving.' Make the heart of this people calloused; make their ears dull and close their eyes. Otherwise they might see with their eyes, hear with their ears, understand with their hearts, and turn and be healed."

Then I said, "For how long, O Lord?"

And he answered: "Until the cities lie ruined and without inhabitant, until the houses are left deserted and the fields ruined and ravaged, until the LORD has sent everyone far away and the land is utterly forsaken. Isaiah 6:9-12 NIV

In this most modern of countries, America, a plague ravages the land. Slowly at first, stores close their doors, neighbors lose their jobs, and random houses are emptied, abandoned and lifeless. Not because of any biological plague, instead America's cities suffer from an economic plague, a quiet plague that leaves people robbed and ruined. This is a plague of lies by accounting, numbers on a balance sheet manipulated by the federal government to show whatever it wants, promising people something for nothing, keeping them docile and waiting for the next government vaccine, all while they hope to avoid their neighbor's fate. The plague of lies is spreading, leaving more people unemployed, relying on charity for food and shelter, and losing hope.

How could this happen? We have access to vastly more information than any who have come before us. We see, we hear, yet we do not perceive.

"Accounting fraud at Enron is such a big story because it is so exceptional; only once in a blue moon does a major corporation destroy itself in this way. In contrast, “accounting” fraud is an inherent feature of government." Thomas DiLorenzo, "Real Accounting Fraud" [1]

Enron is synonymous with corporate dishonesty. Enron executives pretended to follow generally accepted accounting principles (GAAP), but used special purpose entities to hide liabilities and overstate the company's equity.[2] Investors lost nearly $45 billion in Enron and some executives went to prison for fraudulent accounting practices.[3] Most people won't forget the infamous Enron accounting scandal of 2001.

Why doesn't the news media ever mention a more blatant and worse accounting scandal that has been going on since 1968?

Our federal government, quick to prosecute Enron executives, doesn't even pretend to follow the GAAP standard, and is in a financial hole 1000 times deeper than Enron ever was. Estimates for federal government liabilities are as high as $65 trillion. But unlike the Enron accounting fraud, this time there won't be any trials.

Taxpayers, the "investors" in the US government accounting fraud, will pay with higher taxes, a stagnant economy that jeopardizes their incomes, and inflation that robs their savings. Instead of prosecutions, the federal government bails out wealthy executives, and "chastises" them by limiting their annual compensation to under $10 million.[4][5] Meanwhile, the vast majority of Americans will continue to support the federal government as it grinds them into the ground, all the while believing federal government lies that the government makes our lives better. All this is happening now before our eyes. Yet we make our ears dull and close our eyes.

John Williams' Shadow Government Statistics site reports on federal government lies about economic statistics. The federal government misrepresents unemployment and inflation rates, and minimizes the annual budget deficit. As they see their paychecks shrinking, houses abandoned, and businesses closing, most people know things are worse than the government reports. But the media and Americans continue to ignore the truth: federal government profligacy is destroying America. "...the cities lie ruined and without inhabitant, until the houses are left deserted and the fields ruined and ravaged..."

Since the Johnson administration, when LBJ created his "Great Society," the biggest "something for nothing" program since the New Deal, the federal government has used an accounting gimmick called "unified budget accounting" to misrepresent the size of the federal budget deficit.[6] For the last 40 years the federal government has consistently spent more money than it takes in, trying to hide the fact by using unified budget accounting rules that ignore off-budget spending.

Today people still believe that the Clinton (D) administration ran a budget surplus from 1998 to 2000. The government tells them so, using its unified budget accounting scheme to define a surplus as the amount by which "on-budget" federal revenues exceed outlays for a given fiscal year. What the government doesn't tell them is that the "on-budget surplus" excludes spending and revenues for the off-budget Social Security Trust Fund, Medicare, Postal Service, and pension funds. But if people looked at historical data available from the government, they would see that it shows the gross federal debt has increased every year since 1969. There has never been a surplus since then, no matter what the news media and then-President Clinton would have people believe.

In this decade, deficits have been so huge that the federal government doesn't even pretend to run a surplus. But it still can lie about the size of the shortfall: the annual deficit is much worse than Congress and the President profess. According to the GAAP standard used by private corporations, the 2008 US treasury report (pdf) for the last year of the Bush (R) administration showed an increased gross debt of $997.7 billion and liabilities of $4.1 trillion for an approximate $5.1 trillion total debt. Yet the unified budget reported a deficit of $454.8 billion. To further insult us, the Obama (D) administration told us we needed a stimulus program of increased federal spending as our latest vaccine.

The unified budget deficit reported for the first year of the Obama administration in 2009 is three times higher than in 2008: $1.417 trillion. The GAAP version of the deficit will be higher still.[7]

For how long can this continue? Until we either see with our eyes, hear with our ears, understand with our hearts, turn, and are healed, or until the land is utterly forsaken.

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[1] "Real Accounting Fraud," The Free Market, April 2002; Volume 20, Number 4, by Thomas J. DiLorenzo, (Accessed at http://mises.org/freemarket_detail.aspx?control=395 January 3, 2010).

[2] "Causey May Put GAAP On Trial," by Dan Ackman, January 23, 1004, Forbes.com, (Accessed at http://www.forbes.com/2004/01/23/cx_da_0123topnewse.html on January 2, 2010).

[3] "How Enron awards do, or don't, trickle down," By Kris Axtman, Staff writer of The Christian Science Monitor, June 20, 2005, (Accessed at http://www.csmonitor.com/2005/0620/p02s01-usju.html on January 2, 2010).

[4] "Fannie’s Christmas Eve Surprise," by Steven Davidoff, NY Times, January 4, 2010, (Accessed at http://dealbook.blogs.nytimes.com/2010/01/04/fannies-christmas-surprise/ on January 4, 2010).

[5] "What’s a Bailed-Out Banker Really Worth?," By STEVEN BRILL, NY Times, Published: December 29, 2009, (Accessed at http://www.nytimes.com/2010/01/03/magazine/03Compensation-t.html?pagewanted=all on January 4, 2010).

[6] "GOVERNMENT ECONOMIC REPORTS: THINGS YOU’VE SUSPECTED BUT WERE AFRAID TO ASK! Federal Deficit Reality (Part Three in a Series of Five), by Walter J. "John" Williams, September 7th, 2004, (Accessed at http://www.shadowstats.com/article/federal_deficit_reality on January 3, 2010).

[7] "A Citizen's Guide to the 2008 Financial Report of the US Government," (Accessed at http://www.fms.treas.gov/fr/08frusg/08frusg.pdf on January 3, 2010).

Table 1, page 4 of the report compares the budget deficit of $454.8 billion and the net operating cost of $1.009 trillion. "A Snapshot of the Government's Financial Position & Condition" on page 10 shows Social Insurance Liabilities that increased from fiscal year 2007 to 2008 by $4.073 trillion. So a deficit of $454.8 billion is reported, while the national debt increases by $997.7 billion, and total liabilities increase by approximately $5.1 trillion.

According to the annual letter from the commissioner for the US Treasury for the fiscal year ended October 2008 (pdf):

"The financial results for the year include total receipts of $2,523.6 billion, a decrease of $44 billion under 2007 receipts; total outlays of $2,978.4 billion, an increase of $249.2 billion over 2007 outlays; and a $454.8 billion deficit, a decrease of $293.3 billion under the 2007 deficit."

From the letter from the commissioner of the US Treasury for the fiscal year ended October 2009 (pdf):

"The financial results for the year include total receipts of $2,104.6 billion, a decrease of $419 billion from 2008 receipts; total outlays of $3,521.7 billion, an increase of $543.3 billion from 2008 outlays; and a $1,417.1 billion deficit, an increase of $962.3 billion from the 2008 deficit."