I think you're a bit confused though.
Do you really think that the NSA produces our encryption technology for the benefit of the public? or to make sure that the public only uses technology that they approve?
Given you monopolize talent in the cryptology field, you could make crippled crypto that the NSA reserves knowledge of backdoors to. This scenario has been suggested over and over again, and the history of regulations reflect it. Their crypto techniques are often found to have flaws.
Just look at what happened when someone tried to make their own encryption standard: https://en.wikipedia.org/wiki/Pretty_Good_Privacy#Early_history
-bm
