The understanding and acknowledgement of the problem of induction and its negative force on discourse failure bring intelligence studies towards a new theory of intelligence. The understanding of discourse failure opens a window to intelligence failure as a circular problem that intensifies itself by the human tendency to displace and redirect new knowledge that threatens orthodoxies, political assumptions and a uniform belief in nature. The result is that threats appearing in new variations will not easily be acknowledged or accepted, since they exist outside the normative threat paradigms and outside the existing language available to communicate threats that exist outside the possibilities of induction. The acknowledgement of this phenomenon discloses the problems that arise because intelligence has lacked a proper intelligence theory. It illustrates that if intelligence institutions want to reduce the damaging effect of the problem of induction and discourse fail- ure, and produce qualitative intelligence, they must probe beyond the limits of induction. A deep acknowledgement of the discourse failure theory therefore explains the reciprocal nature of intelli- gence, as well as capturing and identifying the circular dynamic between threats, threat perception and intelligence failure. This chapter examines how this phenomenon shapes intelligence analysis.
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