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Nukes and Credit Default Swaps

While re-reading John M. Collins' text on grand strategy (written in 1973), I'm struck to the degree to which US strategic thinking has not adapted to the systemic shift brought on by the end of the Cold War. Yes, this might seem to be a pretty banal insight--it's beyond cliche to claim that US strategy is oldthink. I've heard that magazine editors also (rightly) summarily reject article pitches beginning with "since the end of the Cold War." But hear me out for a few minutes.

One of the major points of Thomas Schelling's Arms and Influence is that strategic conventional and nuclear forces enabled punishment as a strategic tool. Granted, looting and pillaging of a foe's countryside was commonplace in ancient times but was not instrumental in the way, say, punitive bombing or a countervalue attack would be. Moreover, Soviet punitive strikes could also entirely bypass US fielded military forces. In the past, as Schelling noted, defeat of an enemy army was necessary before one could ravage its civilian infrastructure and population. But distance and conventional forces offered scant protection. Ravaging of German and Japanese infrastructure occured long before Axis armies completely eroded. Under such circumstances, the distinction between national and personal security significantly blurs.

Under such circumstances, national security policy entered radically new territory. Yes, as Colin S. Gray pointed out, Clausewitz still governed nuclear war and even wars of mass destructions could have theories of victory. But the existence of weapons of mass destruction, while not altering war's eternal nature, radically shifted American perceptions of security. It's common to claim that globalization and irregular warfare has completely eroded the stopping power of water, but only when we talk about strategic warfare does this supposed truism really make sense. Lazy claims about the death of distance in fact originate from thinking about the airpower and nuclear revolutions.

Pushing other powers out of striking distance has been a longtime American strategic preoccupation. Hegemony over the Americas ensured that European powers could never use the oceans to burn down the White House again, and the United States was one of the few powers that did not suffer numerous attacks on its territory during World War II. The Cold War was fought entirely in Africa, the Middle East, and Asia. And aside from the September 11 attacks, the global war on terrorism has been primarily fought in Afghanistan, Iraq, Pakistan, Yemen, and Somalia. The idea is that American citizens should be spared financial and personal security costs of warfare, an objective that has had its own unintended civil-military consequences. "America is not at war," one Marine famously lamented. "The Marines are at war. America is at the mall."

The gap left by an existential Soviet strategic nuclear threat to US existence has fortunately not been filled. Not only is irregular warfare not an existential threat, but it also is affected by geographic considerations in ways nuclear operations are not. Terrorism may not respect national borders, but power projection has costs. In their backyard, the Iranians are fearsome irregular adversaries. But when the action gets farther out, they rely on used car salesmen and blow off their own legs in failed bombing attempts. This isn't to doubt the power of Iranian intelligence and paramilitary organizations, but it's important to note the degree to which projecting power is generally easier when you are operating closer to your own political and logistic sources of power. US offensive military and intelligence efforts abroad and domestic intelligence have also substantially raised the cost for al-Qaeda to execute successful strikes against US territory. Violent non-state actors do pose threats to the US, but instruments of national power can at least theoretically strengthen the state against them in ways that were not possible within the context of Cold War nuclear strategy.

Of all the policy problems the US currently faces, only the global financial crisis and the prospect of biological contagion negates the power of distance and effects Americans individually in the way Soviet nuclear weapons could. As John Robb noted in December 2011:

When the histories are written about his era, this word may prove to be central: contagion.  Why?  We're all connected -- on every level between the physical and logical -- for the first time in history.  We see contagion everywhere, from the financial markets that spread fear and panic over default globally to viral rumors/pictures that spread across the Internet in a flash.

The contagion Robb discusses is financial and virological. Both, in some way, feed off human-built devices--massively integrated financial markets and global commerce, transport, and travel networks. Both also break down the distance between national and personal concerns the way nuclear weapons did. Financial ruin can open a pandora's box of health and safety issues, and deadly viruses have far less indirect effects on personal welfare.  But neither are the deliberate design of a malicious state or non-state actor. Rather, they are emergent phenomena formed by aggregations of state decisions and individual behaviors by humans, nonhumans, and things. Adam Smith's metaphor of the "invisible hand" was one of the first serious looks at how complex adaptive systems function in human society. The markets are an aggregate of human decisions, organizational policy and behavior, and computational trading algorithims. Pandemics are a consequence of human interaction, but also can be spread by animals as well. 

Financial and virological contagion, while terrifying, do not rise to the level of global nuclear warfare and atomic annihilation as threats to our personal safety and interests. Remember that the next time someone tries to tell you that the current international security environment is more dangerous than the Cold War.

Of course, the tricky part is that such a state of (relative) safety is rooted in a set of geopolitical, financial, and military arrangements that do not sustain themselves in perpetuity. We should not make the mistake of believing that the US is on a teleological path to greater and greater levels of security. The policy choices we make matter too, as do those of allies, competitors, and other states.  Additionally, 90% of threats are not existential but still necessitate strong tools of national power. Saddam Hussein's invasion of Kuwait and threatening of Saudi Arabia did not challenge American national survival. But the prospect of Hussein gaining strategic control of the Persian Gulf was enough to trigger the Carter Doctrine tripwire. And while terrorism does not pose an existential risk, it is still the responsibility of the state to protect its citizens from terrorists and imprison or destroy irregular enemies.

My discussion of finance and health is not an argument that US national security policy should be revamped around preventing market crashes or virological outbreaks---that's the proper place for economic and health instruments of national power rather than the Pentagon or the FBI. But we should be more aware, especially, when contemplating the idea that the world is more interconnected, that only in distinctly nonmilitary areas such as finance and health does interconnection pose a significant danger for the United States and individual American citizens. When it comes to everything else, we must acknowledge our good fortune to have two oceans, a strong military and intelligence apparatus, and diminished but nonetheless powerful allies. The Soviet nuclear threat was the only time that neither distance nor military and intelligence strength could grant us protection from existential risk, and the fact that this threat no longer exists should arguably be more explicitly recognized. 

international security, nuclear strategy

6 comments

When I linked to Robb's

When I linked to Robb's article from your post, I was amused to read that he doesn't advocate that we all flee to a "well-stocked cabin in the woods", since his blog's name, Global Guerillas, suggests exactly that. But he does opine that a globally interconnected system (whatever that means) is an inherently unstable one, which has the unfortunate effect of spreading the pain when something bad happens.

I take issue with 3 things in your posting:

(1) It's funny coincidence that you should title a piece skeptical of a globalized marketplace with two famously American inventions--nuclear weapons and credit default swaps. The one posed the only true existential threat we have ever faced, you say, and misuse of the other nearly brought the global economy to a halt in the Panic of '08. Fine; so far, so good. But the fact is that that we are now in an age of [almost] nuclear primacy, and so if it really is finance and disease that can destroy us, what is the true problem? Is it the mutual dependence of our economy with others across the globe (which, I imagine, means interconnectivity in your view)? Or is it that this world we have fashioned in our image, using a combination of nukes and money, is simply becoming too complex for us to control? Contagion might well be the key word--but we mustn't be so silly to think that the ills that may come to haunt us arose without a role for our own past actions.

(2) In complex systems, like the human body or the world economy, events cannot happen in one part without effecting some sort of change in another part. Contagion, in other words, isn't a property exclusive to a global economy like the one we now have. Global pandemics, and global financial panics too for that matter, have been a fact of human existence for a very long time; it's just that in the old days the diseases had to come by ship rather than plane. Two of the deadliest pandemics, the Black Death and the Spanish Flu, occurred long before nukes and today's modern transport infrastructure (although not before financial derivatives).

(3) Unlike Robb (and perhaps you too), when I think of global economic integration, I don't think of "contagion", I think of "fragility". Robb incorrectly asserts (or maybe assumes, which would be worse) that this is the first time in history that we have been so connected. On a foreign trade-to-GDP basis, the global economy in 1914 was more closely integrated than at almost any other subsequent point in the 20th century, barring maybe the late 1990s through 2000s. The human propensity to barter and exchange goods, services and ideas is a powerful force, of which trade, business and prosperity are only the most easily quantifiable benefits. The only thing stronger, evidently, is the human desire to exterminate our enemies (and even then, the two can be a match; when I was a student in Europe I was astonished to learn of WW1 German artillery units being ordered not to shell certain French and Belgian weapons factories because they were subsidiaries of German companies). So interconnectivity, insofar as it benefits Americans (and it does, indisputably), is something to be nurtured, not distrusted as an agent of contagion.

kylem556, I don't argue that

kylem556,

I don't argue that finance can "destroy us all." This may be Robb's opinion, but it's not mine. In fact, the entire point of the blog was to contrast something horrible but survivable (financial crash and pandemic) with nuclear warfare, which by definition was not. Disease and financial crashes are also cyclical in human history, whereas nuclear warfare has never occured. In general, you attribute too much of Robb's opinions to mine. I linked to a small quote in his blog, but do not approve of the entirety of its contents. I actually agree with your bullet #3 entirely.

I am also unsure why "emergent phenomena formed by aggregations of state decisions and individual behaviors" somehow absolves humans of responsibility for "our past actions" since it places the blame on both large-scale (state decision) and small-scale (individual choices).

Finally, while I appreciate #2, since I love to make "nothing new under the sun" arguments myself, there is also a limit to how far we can. It's true that according to economic geography theorists, the origin of "globalization" is a controversial subject. A global system arguably existed prior to the 1970s for many centuries. But rapidity of transport, just-in-time production, and post-Fordist economics all make a difference in terms of rapidity and coverage. Still, I appreciate the point.

While I agree with the tone

While I agree with the tone of your post overall, I found it strange that you referenced Saddam's 1990 invasion of Kuwait to make your point about justifying military action with a less than existential threat present. We all can accept that the 1990 Persian Gulf War was a war of choice, that the United States went in to push back Saddam and reclaim Kuwait for its emir. But more importantly, the 2003 invasion of Iraq was branded as necessary because Saddam was a clear and present danger, although the Bush administration was very careful to not use the word "existential threat" or "imminent threat."

Would also suggest that while the Russian bear is staggering and unhealthy, its nuclear arsenal is still very much an existential threat to the United States (although GEN Demsey may not agree). It still retains a latent capability to destroy the homeland.

David Kilcullen has distilled

David Kilcullen has distilled the phenomena of insurgencies into his theory of "accidental guerrillas," which in short argues that only about 10% of a population needs to be hardcore ideologues for an insurgency to take root in a population. He backs his theory up with research into uprisings everywhere from East Timor to Iraq, it seems to hold pretty true in modern societies.

The greatest threat to American security isn't going to come from an outside threat, as you say yourself that's "oldthink," it's going to come from our inner-cities. For two generations they've been ravaged by a War on Drugs that's created a cycle of absence among Africa-American communities as prospective fathers have been systematically locked up. In the first decade of the War on Drugs the rate of single black mothers tripled, in the prior decade it had held steady at the exact same rate as the national average.

Black wealth declined in tandem with the end of the black family, starting in 1973 with the passage of the Rockefeller Drug Laws, in "an ominous bellwether... the gap between black and white incomes started to grow wider again, in both absolute and relative terms." Direct empirical research into incarceration's economic effects weren't done until recently, when a Pew Charitable Trusts research paper showed that prior to imprisonment two-thirds of male inmates were employed and half were their family's primary source of income. Additionally, upon release an ex-con's annual earnings were reduced by 40% - http://tremblethedevil.com/?p=2310

The greatest existential threat America faces isn't external, its the specter of our own accidental guerrillas being created out of our radicalized ex-con population, and our inner-cities systematically imploding

Jason, Re: Gulf War I and

Jason,

Re: Gulf War I and II, it is interesting that the phrase "clear and present danger" implies preventive war, which is conceptually different than the justification used to reclaim Kuwait. Unlike others, I don't see preventive war is always a bad thing for a state, if it can successfully eliminate a threat before it matures---although I would also point out that any such determination should be subjected to a ruthless cost-benefit analysis and viewed extremely skeptically in light of the historically poor track record of preventive (as opposed to preemptive wars). My point about I was that, in spite of the bashing of wars of choice, the Gulf War happened because the American polity judged a potentially indecisive conventional war to be theoretically worth a non-existential objective. That the Gulf War turned out to be decisive was positive but was by no means clear when the war plans were being drawn up.

I agree with you re: Russian capabilities, but capabilities also require intent. Same thing with discussions of the Chinese nuclear arsenal--it is one thing for a PLA general to talk loosely of holding Los Angeles at risk, another to put in place a realistic SIOP to do so. The Joker may have wanted to make the world burn, but even genocidal 20th century tyrants sought some kind of benefit for themselves or their favored populations.

Tremble the

Tremble the Devil,

Spent.Force.

The Inner City threat you mention has peaked, although it may be revitalized by Hispanics if illegitimacy (51%) is the driver. Not that whites at 36% illegitimacy aren't keeping up with the Joneses.

However since we can't keep paying people to have babies out of wedlock, it may not be an issue.

If it is stop trembling - lock and load.

Good news - we're all going to get a form of Libertarian government - or at least a government that's poor and not throwing money around on social experiments. Under Libertarianism drugs are not illegal. There's just no welfare there when you crash...so you shape up or die. But responsible users with money will be able to get them...

Interesting correlating the War on Drugs with Illegitmacy, thereby absolving the bums from abandoning their children.

People get arrested and may spend some time in jail for drug use, they don't go to prison for a stretch for use or possession.

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CNAS retains the right to delete comments that include words that incite violence; are predatory, hateful, or intended to intimidate or harass; or degrade people on the basis of gender, race, class, ethnicity, national origin, religion, sexual orientation, or disability. In summary, don't be a jerk.
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