As many commentators have noted, one disturbing thing about farming out security in a war is the lack of accountability that private companies face. Witness the follow-through on recent threats by the Iraqi government to kick Blackwater out of Iraq. Outsourcing war, while filling in troop gaps, has disturbing consequences.
On the surface, it would seem that the firms and the U.S. military would be working toward the same end: to secure the country. Yet, as we've seen with Halliburton, these private companies are not beyond overcharging and fraud. And, as Robert Gates pointed out earlier this week, we have big problem with losing highly trained soldiers to companies like Blackwater. Why? Money.
Yes, the war is a huge windfall to select group of private companies. When it comes to loyalty, our military is a direct representation of the United States government, yet private security firms work for the highest bidder. That may mean a Sunni sheik one day, and a resurgent Shia politician the next. By every Pentagon calculation, the longer the war drags on, the fewer troops we'll be able to rotate into the country. Therefore, we will become increasingly reliant on contractors like Blackwater in the coming year. That means, of course, that those companies stand to make a lot more money from a protracted war. What was that Doobie Brothers refrain? "Old black water, keep on rollin."

Former Fed Chairman

