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age, according to newly disclosed documents. This story has been reported in partnership between The
New York Times, the Guardian and ProPublica based on documents obtained by The Guardian. The
agency has circumvented or cracked much of the encryption, or
digital scrambling, that guards global commerce and banking
systems, protects sensitive data like trade secrets and medical
records, and automatically secures the e-mails, Web searches,
Internet chats and phone calls of Americans and others around the
world, the documents show. Many users assume or have been assured by Internet companies
that their data is safe from prying eyes, including those of the government, and the N.S.A. wants to keep it
contractor.
Last week Apple announced that it is closing a serious security vulnerability in the iPhone. It used to be
that the phone's encryption only protected a small amount of the data, and Apple had the ability to bypass
security on the rest of it. From now on, all the phone's data is protected. It can no longer be accessed by
criminals, governments, or rogue employees. Access to it can no longer be demanded by totalitarian
governments. A user's iPhone data is now more secure . To hear U.S. law enforcement respond, you'd think
Apple's move heralded an unstoppable crime wave. See, the FBI had been using that vulnerability to get
into peoples' iPhones. In the words of cyberlaw professor Orin Kerr, "How is the public interest served by a
policy that only thwarts lawful search warrants?" Ah, but that's the thing :
In
2013, encryption foiled the police nine times, up from four in 2012and the investigations proceeded in
some other way. This is why the FBI's scare stories tend to wither after public scrutiny. A former FBI
assistant director wrote about a kidnapped man who would never have been found without the ability of
the FBI to decrypt an iPhone, only to retract the point hours later because it wasn't true. We've seen this
game before. During the crypto wars of the 1990s, FBI Director Louis Freeh and others would repeatedly
use the example of mobster John Gotti to illustrate why the ability to tap telephones was so vital. But the
Gotti evidence was collected using a room bug, not a telephone tap. And those same scary criminal tropes
were trotted out then, too. Back then we called them the Four Horsemen of the Infocalypse : pedophiles,
kidnappers, drug dealers, and terrorists. Nothing has changed. Strong encryption has been around for
years. Both Apple's FileVault and Microsoft's BitLocker encrypt the data on computer hard drives. PGP
encrypts email. Off-the-Record encrypts chat sessions. HTTPS Everywhere encrypts your browsing. Android
phones already come with encryption built-in. There are literally thousands of encryption products without
back doors for sale, and some have been around for decades. Even if the U.S. bans the stuff, foreign
companies will corner the market because many of us have legitimate needs for security. Law enforcement
has been complaining about "going dark" for decades now. In the 1990s, they convinced Congress to pass
a law requiring phone companies to ensure that phone calls would remain tappable even as they became
digital. They tried and failed to ban strong encryption and mandate back doors for their use. The FBI tried
and failed again to ban strong encryption in 2010. Now, in the post-Snowden era, they're about to try
history of our movements. Our call records, email history, buddy lists, and Facebook pages tell them who
we associate with. The hundreds of companies that track us on the Internet tell them what we're thinking
about. Ubiquitous cameras capture our faces everywhere. And most of us back up our iPhone data on
iCloud, which the FBI can still get a warrant for.
surveillance.
After considering the issue, Orin Kerr rethought his position, looking at this in terms of
are used for the majority of e-commerce all over the world. You
cant go to your bank and trust that communication if those
standards have been weakened, if those standards are vulnerable.
And this is resulting in a paradigm where these agencies wield tremendous power over
the internet at the price of making the rest of their nation incredibly
vulnerable to the same kind of exploitative attacks , to the same
sort of mechanisms of cyber-attack.
when it comes to eavesdropping on the military in Syria or trade negotiations over the price of shrimp in Indonesiawhich
is an actually real anecdoteor even monitoring the climate change conference, it means it results. It means we end up
have a national surveillance agency . And until we reform our laws and
until we fix the excesses of these old policies that we inherited in
the post-9/11 era, were not going to be able to put the security
back in the NSA.
Bamford: Thats great. Just along those lines, from what you know about the project Bullrun
and so forth, how secure do you think things like AES, DES, those things are, the advanced encryption standard?
Snowden: I dont actually want to respond to that one on camera, and the answer is I actually dont know. But yeah, so
lets leave that one. Bamford: I mean, that would have been the idea to weaken it. Snowden: Right. The idea would be to
weaken it, but which standards? Like is it AES? Is it the other ones? DES was actually stronger than we thought it was at
the time because the NSA had secretly manipulated the standard to make it stronger back in the day, which was weird,
but that shows the difference in thinking between the 80s and the 90s. It was the S-boxes. Thats what it was called. The
S-boxes was the modification made. And today, where they go, oh, this is too strong, lets weaken it. The NSA was actually
we see that
their priority is weakening our security, just so they have a better
chance of keeping an eye on us.
concerned back in the time of the crypto-wars with improving American security. Nowadays,
A major cyber attack will happen between now and 2025 and it will
be large enough to cause significant loss of life or property
losses/damage/theft at the levels of tens of billions of dollars , according
to more than 60 percent of technology experts
and American Life Project. But other experts interviewed for the project Digital Life in 2015, released
Wednesday, said the current preoccupation with cyber conflict is product of software merchants looking to
hype public anxiety against an eternally unconquerable threat. Its the old phantom of the cyber Pearl
Harbor, a concept commonly credited to former Defense Secretary Leon Panetta but that is actually as old
as the world wide web. It dates back to security expert Winn Schwartaus testimony to Congress in 1991,
when he warned of an electronic Pearl Harbor and said it was waiting to occur. More than two decades
later, were still waiting. The Pew report offers, if nothing else, an opportunity to look at how the cyber
A key concern
for many of the experts Pew interviewed is infrastructure, where very real
landscape has changed and how it will continue to evolve between now and 2025.
cyber vulnerabilities do exist and are growing. Stewart Baker, former general
counsel for the National Security Agency and a partner at Washington, D.C.-based law firm Steptoe &
that came direct from the manufacturer. As writers Indu B. Singh and Joseph N. Pelton pointed out in The
were hopeful that the Obama administrations Cybersecurity Framework, released earlier this year, would force companies that preside over
infrastructure components to take these precautions, but many in the technology community were disappointed that the guidelines did not
include hard mandates for major operators to fix potential security flaws. But some political leaders say that the response from industry to
cyber threats has outpaced that of government. Just ask Rep. Mike Rogers, R-Mich., chairman of the House Intelligence Committee, who said
that private businesses were increasingly asking government to defend them from cyber attacks from other nation state actors, and even
launch first strikes against those nations. Most of the offensive talk is from the private sector, they say weve had enough, Rogers said at a
recent Washington Post cyber security summit. Its worth noting that the Pew survey was made public one day after the group FireEye released
a major report stating that a Russian-government affiliated group was responsible for hacking into the servers of a firm keeping classified U.S.
military data. In his remarks at the summit, Rogers singled out Russia as a prime target for future, U.S.-lead cyber operations. But
United States and its allies. Al Qaeda and other terrorist organizations are extremely active in cyberspace, using these
technologies to communicate among themselves and others, carry out logistics, recruit members, and wage information
warfare. For example, al Qaeda leaders used email to communicate with the 911 terrorists and the 911 terrorists used
the Internet to make travel plans and book flights. Osama bin Laden and other al Qaeda members routinely post videos
and other messages to online sites to communicate. Moreover, there is evidence of efforts that al Qaeda and other
terrorist organizations are actively developing cyberterrorism capabilities and seeking to carry out cyberterrorist attacks.
For example, the Washington Post has reported that U.S. investigators have found evidence in the logs that mark a
browser's path through the Internet that al Qaeda operators spent time on sites that offer software and programming
instructions for the digital switches that run power, water, transport and communications grids. In some interrogations . . .
al Qaeda prisoners have described intentions, in general terms, to use those tools.25 Similarly, a 2002 CIA report on the
cyberterror threat to a member of the Senate stated that al Qaeda and Hezbollah have become "more adept at using the
internet and computer technologies.26 The FBI has issued bulletins stating that, U. S. law enforcement and intelligence
agencies have received indications that Al Qaeda members have sought information on Supervisory Control And Data
Acquisition (SCADA) systems available on multiple SCADArelated web sites.27 In addition a number of jihadist websites,
such as 7hj.7hj.com, teach computer attack and hacking skills in the service of Islam.28 While al Qaeda may lack the
cyberattack capability of nations like Russia and China, there is every reason to believe its operatives, and those of its ilk,
are as capable as the cyber criminals and hackers who routinely effect great harm on the worlds digital infrastructure
generally and American assets specifically. In fact, perhaps, the most troubling indication of the level of the cyberterrorist
threat is the countless, serious nonterrorist cyberattacks routinely carried out by criminals, hackers, disgruntled insiders,
crime syndicates and the like. If runofthemill criminals and hackers can threaten powergrids, hack vital military
networks, steal vast sums of money, take down a citys of traffic lights, compromise the Federal Aviation Administrations
air traffic control systems, among other attacks, it is overwhelmingly likely that terrorists can carry out similar, if not more
around the worldsophisticated hackers with advanced training who would be willing to offer their services for the right
price. Finally, given the nature of our understanding of cyber threats, there is always the possibility that we have already
been the victim or a cyberterrorist attack, or such an attack has already been set but not yet effectuated, and we dont
a nations banking and finance system into chaos causing markets to crash, prompting runs on banks, degrading
confidence in markets, perhaps even putting the nations currency in play and making the government look helpless and
hapless. In todays difficult economy, imagine how Americans would react if vast sums of money were taken from their
accounts and their supporting financial records were destroyed. A truly nefarious cyberattacker could carry out an attack
in such a way (akin to Robin Hood) as to engender populist support and deepen rifts within our society, thereby making
jeopardize our entire national grid. When word leaks that the
blackout was caused by a cyberattack, the specter of a foreign
enemy capable of sending the entire nation into darkness would only increase the fear,
turmoil and unrest. While the finance and energy sectors are considered prime targets for a cyberattack, an
attack on any of the 17 delineated critical infrastructure sectors could have a major impact on the United States. For
example, our healthcare system is already technologically driven and the Obama Administrations ehealth efforts will only
increase that dependency. A cyberattack on the U.S. ehealth infrastructure could send our healthcare system into chaos
and put countless of lives at risk. Imagine if emergency room physicians and surgeons were suddenly no longer able to
access vital patient information. A cyberattack on our nations water systems could likewise cause widespread disruption.
An attack on the control systems for one or more dams could put entire communities at risk of being inundated, and could
create ripple effects across the water, agriculture, and energy sectors. Similar water control system attacks could be used
to at least temporarily deny water to otherwise arid regions, impacting everything from the quality of life in these areas to
agriculture. In 2007, the U.S. Cyber Consequences Unit determined that the destruction from a single wave of
cyberattacks on critical infrastructures could exceed $700 billion, which would be the rough equivalent of 50 Katrina
esque hurricanes hitting the United States all at the same time.29 Similarly, one IT security source has estimated that the
impact of a single day cyberwar attack that focused on and disrupted U.S. credit and debit card transactions would be
approximately $35 billion.30 Another way to gauge the potential for harm is in comparison to other similar noncyberattack
infrastructure failures. For example, the August 2003 regional power grid blackout is estimated to have cost the U.S.
economy up to $10 billion, or roughly .1 percent of the nations GDP. 31 That said, a cyberattack of the exact same
magnitude would most certainly have a much larger impact. The origin of the 2003 blackout was almost immediately
disclosed as an atypical system failure having nothing to do with terrorism. This made the event both less threatening and
likely a single time occurrence. Had it been disclosed that the event was the result of an attack that could readily be
repeated the impacts would likely have grown substantially, if not exponentially. Additionally, a cyberattack could also be
used to disrupt our nations defenses or distract our national leaders in advance of a more traditional conventional or
governmentdirected/ coordinated assets, or allied cyber irregularsin advance of the invasion of Georgia. Widespread
distributed denial of service (DDOS) attacks were launched on the Georgian governments IT systems. Roughly a day later
Russian armor rolled into Georgian territory. The cyberattacks were used to prepare the battlefield; they denied the
Georgian government a critical communications tool isolating it from its citizens and degrading its command and control
capabilities precisely at the time of attack. In this way, these attacks were the functional equivalent of conventional air
and/or missile strikes on a nations communications infrastructure.32 One interesting element of the Georgian
cyberattacks has been generally overlooked: On July 20th, weeks before the August cyberattack, the website of Georgian
President Mikheil Saakashvili was overwhelmed by a more narrowly focused, but technologically similar DDOS attack.33
This should be particularly chilling to American national security experts as our systems undergo the same sorts of
focused, probing attacks on a constant basis. The ability of an enemy to use a cyberattack to counter our offensive
capabilities or soften our defenses for a wider offensive against the United States is much more than mere speculation. In
fact, in Iraq it is already happening. Iraq insurgents are now using offtheshelf software (costing just $26) to hack U.S.
drones (costing $4.5 million each), allowing them to intercept the video feed from these drones.34 By hacking these
drones the insurgents have succeeded in greatly reducing one of our most valuable sources of realtime intelligence and
situational awareness. If our enemies in Iraq are capable of such an effective cyberattack against one of our more
sophisticated systems, consider what a more technologically advanced enemy could do. At the strategic level, in 2008, as
the United States Central Command was leading wars in both Iraq and Afghanistan, a cyber intruder compromised the
security of the Command and sat within its IT systems, monitoring everything the Command was doing. 35 This time the
attacker simply gathered vast amounts of intelligence. However, it is clear that the attacker could have used this access
to wage cyberwaraltering information, disrupting the flow of information, destroying information, taking down systems
against the United States forces already at war. Similarly, during 2003 as the United States prepared for and began the
War in Iraq, the IT networks of the Department of Defense were hacked 294 times.36 By August of 2004, with America at
war, these ongoing attacks compelled thenDeputy Secretary of Defense Paul Wolfowitz to write in a memo that, "Recent
exploits have reduced operational capabilities on our networks."37 This wasnt the first time that our national security IT
infrastructure was penetrated immediately in advance of a U.S. military option.38 In February of 1998 the Solar Sunrise
attacks systematically compromised a series of Department of Defense networks. What is often overlooked is that these
attacks occurred during the ramp up period ahead of potential military action against Iraq. The attackers were able to
obtain vast amounts of sensitive informationinformation that would have certainly been of value to an enemys military
leaders. There is no way to prove that these actions were purposefully launched with the specific intent to distract
American military assets or degrade our capabilities. However, such ambiguitiesthe inability to specifically attribute
actions and motives to actorsare the very nature of cyberspace. Perhaps, these repeated patterns of behavior were
mere coincidence, or perhaps they werent. The potential that an enemy might use a cyberattack to soften physical
defenses, increase the gravity of harms from kinetic attacks, or both, significantly increases the potential harms from a
cyberattack. Consider the gravity of the threat and risk if an enemy, rightly or wrongly, believed that it could use a
cyberattack to degrade our strategic weapons capabilities. Such an enemy might be convinced that it could win a war
have even fanned the flames of discontent by championing weak information security practices. 2 In addition, other
countries have used anger over U.S. government surveillance as a cover for implementing a new wave of protectionist
controversial program authorized by the FISA Amendments Act, which allows for warrantless access to privateuser data on
economy. As of 2013,
criteria)
27.1
million U.S. workers owe their jobs to economic activity supported
by advanced industries. Directly and indirectly, then, the sector supports almost 39 million
jobsnearly one-fourth of all U.S. employment. In terms of the sectors growth and
change, the total number of jobs in the sector has remained mostly flat since 1980 but its output
has soared. From 1980 to 2013 advanced industries expanded at a rate of 5.4 percent annually30
This means that in addition to the 12.3 million workers employed by advanced industries, another
percent faster than the economy as a whole. Since the Great Recession, moreover, both employment and
the rest of the economy. Advanced services led this post-recession surge, and created 65 percent of the
new jobs. Computer systems design alone generated 250,000 new jobs. Certain advanced manufacturing
industriesespecially those involved in transportation equipmenthave also added thousands of jobs
after decades of losses.
directly-harms-internet-companies-silicon-valley-california-and-the-entirenational-economy.html
Mass surveillance by the NSA may directly harm the bottom of line
of Internet companies, Silicon Valley, California and the entire
national economy . Money News points out: The company whose shares you
own may be lying to you while Uncle Sam looks the other way.
Lets step through this. I think you will see the problem. Fact 1: U.S.
financial markets are the envy of the world because we have fair
disclosure requirements, accounting standards and impartial courts.
This is the foundation of shareholder value. The company may lose money, but they
at least told you the truth. Fact 2: We now know multiple public
companies, including Microsoft (MSFT), Google (GOOG), Facebook
(FB) and other, gave their user information to NSA. Forget the
privacy implications for a minute. Assume for the sake of argument
that everything complies with U.S. law. Even if true, the businesses
may still be at risk. Fact 3: All these companies operate globally.
They get revenue from China, Japan, Russia, Germany, France and
everywhere else. Did those governments consent to have their
citizens monitored by the NSA? I think we can safely say no.
Politicians in Europe are especially outraged. Citizens are angry with the
United States and losing faith in American brand names. Foreign
companies are already using their non-American status as a
competitive advantage. Some plan to redesign networks specifically to bypass U.S.
By yielding to the NSA, U.S. companies likely broke laws
elsewhere. They could face penalties and lose significant revenue .
Right or wrong, their decisions could well have damaged the business.
companies.
Securities lawyers call this materially adverse information and companies are required to disclose it. But
they are not. Only chief executives and a handful of technical people know when companies cooperate
with the NSA. If the CEO cant even tell his own board members he has placed the company at risk, you
can bet it wont be in the annual report. The government also gives some executives immunity documents,
according to Bloomberg. Immunity is unnecessary unless someone thinks they are breaking the law. So
apparently, the regulators who ostensibly protect the public are actively helping the violators. This is a new
and different investment landscape. Public companies are hiding important facts that place their investors
at risk. If you somehow find out, you will have no recourse because regulators gave the offender a get out
of jail free card. The regulatory structure that theoretically protects you knowingly facilitates deception
that may hurt you, and then silences any witnesses. This strikes to the very heart of the U.S. financial
system. Our markets have lost any legitimate claim to full and fair disclosure. Every prospectus,
quarterly report and news release now includes an unwritten NSA asterisk. Whenever a CEO speaks, we
must assume his fingers are crossed. Every individual investor or money manager now has a new risk
factor to consider. Every disclosure by every company is in doubt. The rule of law that gave us the mosttrusted markets in the world may be just an illusion. In a subsequent article, Money News wrote:
Executives at publicly traded companies are lying to shareholders and probably their own boards of
directors. They are exposing your investments to real, material, hard-dollar losses and not telling you. The
government that allegedly protects you, Mr. Small Investor, knows all this and actually encourages more of
it. Who lies? Ah, theres the problem. We dont know. Some people high in the government know. The CEOs
themselves and a few of their tech people know. You and I dont get to know. We just provide the money.
Since we dont know which CEOs are government-approved liars, the prudent course is to assume all CEOs
are government-approved liars. We can no longer give anyone the benefit of the doubt. If you are a money
manager with a fiduciary responsibility to your investors, you are hereby on notice. A CEO may sign those
Securities and Exchange Commission filings where you get corporate information with his fingers crossed.
Your clients pay you to know the facts and make good decisions. Youre losing that ability. For example,
consider a certain U.S. telecommunications giant with worldwide operations. It connects American
businesses with customers everywhere. Fast-growing emerging markets like Brazil are very important to its
future growth. Thanks to data-sharing agreements with various phone providers in Brazil, this company
has deep access to local phone calls. One day someone from NSA calls up the CEO and asks to tap into
that stream. He says OK, tells his engineers to do it and moves on. A few years later, Edward Snowden
informs Brazilian media that U.S. intelligence is capturing these data. They tell the Brazilian public. It is not
happy. Nor are its politicians, who are already on edge for entirely unrelated reasons What would you say
are this companys prospects for future business in Brazil? Your choices are slim and none. They wont
be the only ones hurt. If the U.S. government wont identify which American company cheated its Brazilian
partners, Brazil will just blame all of them. The company can kiss those growth plans good-bye. This isnt a
If U.S. disclosure standards are no better than those in the third world, then every domestic
stock is overvalued. Our rule of law premium is gone. This means a change for stock valuations and it
wont be bullish.
California and its businesses have a problem. Its called the National
Security Agency. That may sound provincial. The debate over the massive NSA
surveillance programs disclosed by Edward Snowden is a national
and global matter, not just a California concern. But the disclosures and the U.S.
governments reaction to them hit at the heart of Californias economic life .
Whether you believe the massive collection of phone and electronic
records is a scary invasion of privacy or a necessary defense against
terrorism, you should worry about our states exposure to the
fallout. The problem for California is not that the feds are collecting all of our communications. It is
that the feds are (totally unapologetically) doing the same to foreigners, especially
in communications with the U.S. California depends for its livelihood
on people overseas as customers, trade partners, as sources of
talent. Our leading industries shipping, tourism, technology, and entertainment could not survive,
much less prosper, without the trust and goodwill of foreigners. We are home to two of the worlds busiest
container ports, and we are a leading exporter of engineering, architectural, design, financial, insurance,
legal, and educational services. All of our signature companies Apple, Google, Facebook, Oracle, Intel,
Hewlett-Packard, Chevron, Disney rely on sales and growth overseas. And our families and workplaces
are full of foreigners; more than one in four of us were born abroad, and more than 50 countries have
diaspora populations in California of more than 10,000. Hollywood and Silicon Valley are as important as
Washingtons politicians and foreign policy wonks, if not more so, in shaping the image of the United States
photos, and even stored data, tarnishes the California and American
brands. The response from Americas leaders? With respect to the
Internet and emails, this does not apply to U.S. citizens and it does
not apply to people living in the United States, said President
Obama, as if the privacy and trust of foreigners were of no
consequence. Similarly, James Clapper, the director of national intelligence, said that the Prism
program, which taps into online communications, could not be used to intentionally target any U.S.
citizen. Such statements should be chilling to Californians. Will tourists balk at visiting us because they
Facebook, Google, Skype, and Apple among them that have been accomplices (they say unwillingly)
when our own U.S. Sen. Dianne Feinstein is backing the surveillance without acknowledgment of the huge
potential costs to her state. Its time for her and House Minority Leader Nancy Pelosi, who has been nearly
reminders should take the force not merely of public statements but of law. California has a robust history
of going its own way on vehicle standards, energy efficiency, immigration, marijuana. Now is the time
for another departure this one on the privacy of communications. Im not a big fan of ballot measures,
since they often only add more complexity to Californias complicated system. But on this issue, we need
California anchors U.S. economy This is not an article about California. It is about you, in
whatever state you live. Californias economy is so large and impacts so many
other businesses that its potential collapse due to a water crisis will impact the
pocketbooks of most Americans. California has a $2.2 trillion annual
economy. That makes California the seventh largest economy in the
world. For all the greatness of Texas, the California economy is
approximately twice the size. Californias companies are the worlds
technology leaders. Google, Apple, Facebook, Twitter, Cisco, Disney,
Hewlett Packard, Tesla and Solar City all have their corporate
headquarters in California. Little know Atomic General located in San
Diego is a world leader in military drones. San Francisco and San
Diego rank No. 1 and No. 3 among the top 10 biopharma clusters in
the U.S. California is also a global breadbasket: It is the worlds fifth
largest supplier of food. The California agriculture industry is highly efficient, and the state is the largest
food producer in the U.S., with only four percent of U.S. farms. Californias crop diversity is world class, with the state
growing over 450 different crops. Crops exclusively grown by California in the U.S. include almonds, artichokes, dates,
olives, raisins, pistachios and clover. The state also produces more than 86 percent of all lemons and 94 percent of all
processed tomatoes in the U.S. You might want to drink to Californias agricultural success by having a glass of California
recovery is greater than ever , IMF Managing Director Christine Lagarde said in a speech
to business leaders at the U.S. Chamber of Commerce in Washington, D.C. What happens
elsewhere in the worldbe it the success of recovery in Europe or the continued smooth
functioning of supply chains in Asiamatters increasingly for the United States,
Lagarde said. The converse is also true. What happens here matters
increasingly for the global economy. Her remarks, which focused on the
interplay between the global economy and the U.S. economy, also
highlighted the need to find joint solutions to secure a lasting,
balanced and widely shared global recovery. Job creation is a
critical ingredient of any economic recovery, domestic or global, she
emphasized. Businesses have a key role to play, Lagarde said, but at the same
time, policymakers have an important responsibility to help shape
the environment in which businesses and citizens can thriveand
jobs can be created. Lagarde said that global growth remains subdued, while acknowledging
that the global economic environment is changing. She emphasized that economies are moving at
different speeds and that the fruits of growth are not evenly shared, both in the United States and other
countries. The U.S. economy is growing and, after a long time, so is the Euro Area. In Japan, aggressive
policy support and the ongoing reform process is helping to spur growth. The emerging market economies,
on the other hand, are slowing. For some, this may be a shift toward more balanced and sustainable
growth, Lagarde told the audience. For others, it reflects the need to address imbalances that have made
them more vulnerable to the recent market turbulence. Reinforcing the point about global
interconnections, Lagarde cited the IMFs recent spillover analysis, which suggests that if the worlds five
major economies were to work together to adopt a more rigorous, comprehensive, and compatible set of
policies, it could boost global GDP by about 3 percent over the longer run. U.S. recovery gaining strength
is still modestwell under 2 percentit should accelerate by a full percentage point next year, Lagarde
mixed picture, with employment remaining well below pre-crisis levels. The issue of jobs remains
paramount, said Lagarde, noting that jobs and growth is an increasingly important component of the IMFs
policy advice. Lagarde highlighted three key recommendations for U.S. policymakers, drawn from the
IMFs most recent assessment of the U.S. economy. Fix public finances. Fiscal consolidation could be
slower in the short run, but more action is needed to reduce long-run pressures on the budget. Lagarde
also warned that political uncertainty over the budget and debt ceiling were not helpful to the recovery. It
is essential to resolve this, and the earlier the better, she said, for confidence, for markets, and for the
real economy. Appropriately calibrate monetary policy. When the time comes, exit from unconventional
monetary policy should be gradual, tied to progress in economic recovery and unemployment, and should
be clearly communicated and in a dialogue. Complete financial sector reform. While there has been
progress on this front, attention needs to focus on the outstanding danger zones, such as derivatives and
the
U.S. in the global economy, noting that the economy accounts for 11 percent of
global trade and 20 percent of global manufacturing. The countrys
global financial ties run deep too, she said. Foreign banks hold about
$5.5 trillion of U.S. assets, and U.S. banks hold $3 trillion of foreign
assets. While these interconnections have great benefits for the United States, they are not
shadow banking. Global interconnections and role of IMF Lagarde underscored the unique role of
without risks, Lagarde cautioned, referring to the collapse of Lehman Brothers five years ago that ushered
in a harsh new reality across sectors, countries, and the world. That is why an effective IMF
is
important for the global membership. Our policy advice, for exampleincluding in
core areas like exchange rates or external imbalanceshas helped to prevent or to ease the hardship of
crises around the world, said Lagarde. That, in turn, has helped reduce the possible negative fallout for
the U.S. and for all countries.
conservative skepticism that traditional tools will be effective, John Judis of The New Republic argues that a
global depression far longer and more severe than anyone expected now seems nearly impossible to
avoid. Judis believes that the coming "depression"
upheaval and institutional collapse. "As the experience of the 1930s testified , a
prolonged global downturn can have profound political and
geopolitical repercussions . In the U.S. and Europe, the downturn has already inspired
unsavory, right-wing populist movements. It could also
chain reaction of a default has been avoided by bailouts. Countries are not closing down their borders or
But the
fundamental problem the spiral downwards caused by confidence
crises and ever rising interest rates is exactly the same now as it
was in 1931. And as Italy and Spain come under attack, we are reaching the limit of how much that
sticking plaster can heal. Tensions between European countries unseen in
decades are emerging." Knowles wrote that post three days ago. Since then it has become
arming their soldiers they can agree on some solution, if not a good solution.
abundantly obvious that Europe will soon become unwilling or unable to continue bailing out every country
with a debt problem. Meanwhile, the U.S. economy continues to chug along, to the extent it is chugging at
all, on the false security offered by a collective distaste for one ratings agency and its poor mathematics.
That can't continue forever. The next few months will show S&P's downgrade to have been too little and
The American
political crisis will only worsen; the "super-committee" will utterly
fail, true to design. Soon enough, we may all wake up to a "reckoning"
truly deserving of the name.
too late, rather than too drastic and too soon. The Eurozone will fall apart.
these past challenges was our technological and industrial leadership, and
especially our ability to continuously recreate it. Indeed, the United
States has been unique among great powers in its ability to keep on
creating and recreating new technologies and new industries,
generation after generation. Perpetual innovation and technological
the
The computer is the first machine in history that was invented as an adjunct of the mind. All prior
machines were adjuncts of physical strength and capabilities, such as movement. Hence it is no surprise
that,
http://www.newsms.fm/strategy-defeat-isis-mississippi-senator-asks-detailspres-obama/)/
WASHINGTON, D.C.A well-funded, well-equipped, and sophisticated army is
how Sen. Roger Wicker described ISIS, the Islamic state, to the Senate Monday, asking the
president to provide more information on his plan to defeat the group before it grows bigger and threatens
more Americans. Wicker said he believes Congress should support the Commander-in-Chief, but before
they can, they need to know how an airstrike campaign, without soldiers actually on the ground, will be
effective in putting down such a large movement. Wicker is a senior member of the Senate Armed Forces
Committee. His comments addressed the skepticism that some DC lawmakers feel after Pres. Obamas
speech last week. That skepticism is also being reflected in polls, some of which indicate that a majority of
the American people are not sure about how effective the presidents plan may be. Congress and the
American people are now seeking specifics about the new strategy. I am hopeful that the new plan is
want to help the President in his request for authorization to train and equip these forces. This coalition
needs to include Muslim-majority nations who are all-in with a demonstrated resolve to defeat the Islamic
terrorists in their own neighborhood. I believe Congress should support our commander-in-chief in the
fight against ISIS
sustained. I look forward to hearing more details about the Presidents plans when Secretary Hagel
and General Martin Dempsey testify before the Armed Services Committee tomorrow. There are still
questions to be answered. For example: If public opinion turns, will the Administration lose its resolve? How
long will it take to win, how long will it take to crush ISIS? What is the definition of success? What is the
definition of victory in this case? If we accomplish our objectives, will we once again abandon our gains as
we did after the surge in Iraq? What is the plan to eliminate the terrorist groups financial network? And are
the President and congressional leaders willing to find a solution to defense sequestration in order to fulfill
the mission, if more resources are required? And, more resources will be required, Mr. President.
Addressing these questions is important to understanding the specific goals and aims of the Presidents
strategy, which are yet to be fleshed out. Americans and Congress deserve this clarity. Wicker also
addressed what he believes is the need for the Senate to pass the National Defense Authorization Act
(NDAA) in order to provide the nations armed forces with the resources they require to fulfill their
missions. Congress has the responsibility to provide the resources that our U.S. military needs for its
missions. We do this through our appropriations, through the power of the purse, and the National
Defense Authorization Act, which has garnered bipartisan support for the past 52 years. An annual
blueprint of the military priorities is vital to making sure that our troops have what they need to protect our
national security interests at home and abroad. This years bill, for example, includes a provision to stave
off drastic cuts to the U.S. Army, which would put troop strength at levels not seen since before World War
II. Well-trained units like the 155thHeavy Brigade Combat Team in my home state of Mississippi should not
be jeopardized by shortsighted and ill-considered proposals by the Obama Administration. Instead, under
the committee bill an independent commission would have the opportunity to make recommendations on
force structure and size before the National Guard personnel could be cut or the Apache attack helicopters
could be transferred. In conclusion, Mr. President, we have work to do. The Senate Armed Services
Committee and the House of Representatives have passed the defense authorization bill. It is time for the
Senate to follow suit. America has the most formidable fighting force in the world, and this presence must
remain resilient as dangerous groups like ISIS put our interests at risk. The rapid rise of these barbaric
terrorists is a wake-up call for U.S. leadership. Now that the President has declared his intention to
degrade and destroy ISIS militants, we must ensure that the mission is fulfilled.
State of Iraq and al-Sham (ISIS), which have since rebranded themselves as the Islamic State, all fled
before he and his men attacked the building. The attack occurred in January in a village in the Syrian
province of Idlib, close to the border with Turkey, as part of a larger anti-ISIS offensive occurring at the
time. We found the laptop and the power cord in a room, he continued, I took it with me. But I have no
clue if it still works or if it contains anything interesting. As we switched on the Dell laptop, it indeed still
worked. Nor was it password-protected. But then came a huge disappointment: After we clicked on My
Computer, all the drives appeared empty. Appearances, however, can be deceiving. Upon closer
Out of the blue, she asked: Did you find his papers inside Syria? Asked why she would think that
Muhammeds belongings would have ended up in Syria, she answered, For further questions about him,
you better ask state security. An astonishing number of Tunisians have flocked to the Syrian battlefield
since the revolt began. In June, Tunisias interior minister estimated that at least 2,400 Tunisians were
fighting in the country, mostly as members of the Islamic State. This isnt the first time that jihadists have
attempted to acquire weapons of mass destruction. Even before the 9/11 attacks, al Qaeda had
experimented with a chemical weapons program in Afghanistan. In 2002, CNN obtained a tape showing al
Qaeda members testing poison gas on three dogs, all of which died. Nothing on the ISIS laptop, of course,
suggests that the jihadists already possess these dangerous weapons. And any jihadi organization
contemplating a bioterrorist attack will face many difficulties: Al Qaeda tried unsuccessfully for years to get
its hands on such weapons, and the United States has devoted massive resources to preventing terrorists
from making just this sort of breakthrough. The material on this laptop, however, is a reminder that
jihadists are also hard at work at acquiring the weapons that could allow them to kill thousands of people
with one blow. The real difficulty in all of these weapons [is] to actually have a workable distribution
system that will kill a lot of people, said Magnus Ranstorp, research director of the Center for Asymmetric
Threat Studies at the Swedish National Defence College. But to produce quite scary weapons is certainly
within [the Islamic States] capabilities. The Islamic States sweeping gains in recent months may have
provided it with the capacity to develop such new and dangerous weapons. Members of the jihadi group
are not solely fighting on the front lines these days they also control substantial parts of Syria and Iraq.
The fear now is that men like Muhammed could be quietly working behind the front lines for instance, in
the Islamic State-controlled University of Mosul or in some laboratory in the Syrian city of Raqqa, the
groups de facto capital to develop chemical or biological weapons. In short, the longer the caliphate
exists, the more likely it is that members with a science background will come up with something horrible.
Doornbos 14
HARALD DOORNBOS IS A JOURNALIST BASED IN ISLAMABAD, PAKISTAN. and,
JENAN MOUSSA AUGUST 28, 2014. EXCLUSIVE Found: The Islamic State's
Terror Laptop of
Doom,http://www.foreignpolicy.com/articles/2014/08/28/found_the_islamic_sta
te_terror_laptop_of_doom_bubonic_plague_weapons_of_mass_destruction_exc
lusive
A laptop reportedly recovered from an Islamic State jihadist
contained a hidden trove of secret plans, including weaponizing the
bubonic plague, and lessons on disguise, bomb-making and stealing
cars. A man identified by ForeignPolicy.com as Abu Ali, a commander of a moderate Syrian rebel group
in northern Syria, told the publication the black laptop was seized earlier this year in a
raid on an ISIS hideout in the Syrian province of Idlib, close to the border with Turkey, and
belonged to a Tunisian jihadist. "We found the laptop and the power cord in a room," Ali told
ForeignPolicy.com. "I took it with me." Initially, it appeared the computer had been scrubbed, but on closer
inspection, thousands of secret files were discovered on the hard drive ,
which was not password protected, Ali said. ForeignPolicy.com was permitted to copy of thousands of files,
which were in French, English, and Arabic. The information included videos of Usama bin Laden, ideological
justifications for jihad and tutorials on how to carry out the Islamic State's deadly campaigns. But most
small mice, the symptoms of the disease should start to appear within 24 hours," the document says.
While some Islamic scholars have said the use of weapons of mass destruction is prohibited, the material
on the seized computer included a fatwa, or Islamic ruling, permitting it. "If
Muslims [ISIS]
cannot defeat the kafir [unbelievers] in a different way, it is permissible
to use weapons of mass destruction," states the fatwa by Saudi jihadi cleric Nasir alFahd, who is currently imprisoned in Saudi Arabia. "Even if it kills all of them and wipes
them and their descendants off the face of the Earth."
wants to know is what Washington thinksand what is it willing to do. While it has never been our
problems and places that many Americans have never even heard of, much less been to. Fact is
ourselves-get-the-job-done-and-get-home type of mobility and sustainability that is the envy of all other
armed forces. But its not just U.S. military muscle that makes us unique. We also have strong diplomatic
forces in embassies, consulates and international institutions that span the globe, giving us sway and a say
field than just about anyone else. Even the U.N. has said the United States, leads the world in
productivity. Fortunately, we also have the worlds finest intelligence services, from the Central
Intelligence Agency to the Defense Intelligence Agency. They dont always get it right, but intelligence is a
tough business and they get it right a lot more than they get it wrongby a long stretch. The fact is that
you dont pull off first-rate diplomacy or military operations without top-notch intelligence, collected from
the ground by daring spies, in the air by manned and unmanned aircraft or from space by advanced eye
in the sky satellites. For instance, without great, painstaking intelligence work, there would have been no
special forces raid on Osama bin Ladens compound in Pakistan in May. Period. Our diplomatic, military and
intelligence professionals do it so well so often, people just take it for granted theyll get it right. Its on
those rare times where they get it wrong that you hear about it from Capitol Hill or read about it in the
newspapers. And while enemiesand sometimes friends and alliescriticize Lady Liberty for being big,
powerful and out and about, the truth is this country of ours has provided, and continues to provide, a
world of good. Regional Role While few take the time to realize all America does, much less acknowledge
our often-selfless contributions, the fact is were making a difference in so many places
around the world. Lets start with the Korean Peninsula. Ever since the cease-fire between North Korean
and Chinese forces and the United Nations, led by the Americans, was concluded in 1953, weve been a
stabilizing force reducing the risk of another conflict on the divided Korean peninsula. Even today, 25,000
U.S. troops (far from home) help keep the peace across the misnamed demilitarized zone (DMZ)
against a North Korean regime, which still harbors dreams of unitingmilitarily, if necessarythe North
and South under its despotic rule. Without the presence of American forces, a second Korean war has been
and still isa distinct possibility. It's easy to assume that another war would be even more horrific than
the last, especially considering North Korea now has nuclear weapons. And what about Japan, where
Japanese
security since the end of World War II. This has not only allowed Japan to prosper economically and
45,000 U.S. troops are stationed? The U.S. military has also played a huge role in
politicallylike South Koreabut it helped stabilize Asia in the aftermath of war, too. The presence of U.S.
forces and the extension of our strategic nuclear deterrent has also kept both Japan and South Korea from
developing a nuclear option that many believe they might have taken in light of North Korean atomic
questions about its intentions in the region. Perhaps most troubling is Beijings unprecedented military
buildup, supported by the worlds second largest defense budget. Its military spending has been growing
at a double-digit rate, meaning 10 percent or more, for the last two decades, raising eyebrows across the
region. Despite the absence of a threat to China, Beijing is developing a highly potent military, capable of
projecting power in the air and on the seas well into the Pacific, dwarfing other regional militaries,
Europe to Indonesia in Asia, using terrorism as a key tool. And what about the Middle East? Of course, in
the mother of all terror battles, our brave young men and women put the hurt on al Qaeda in Iraq,
stemming the momentum of the extremist group that had only been gaining steam since 9/11. Next door,
the United States has been the bulwark against Irans rise in the region since
the fall of the Shah in 1979. Today, it serves as the driving force to counter its nuclear program. Without
U.S. leadership, wed already be dealing with atomic ayatollahs. Plus, for years, weve been the country
that has guaranteed the free flow of oil shipped through the Persian Gulfs Strait of Hormuz, where as
much as 40 percent of the worlds black gold flows to markets across the globe, courtesy of the U.S. Navy.
Today, the likelihood of a major war in Europe is thankfully just about nil, but considering weak European
ambitions of being a major power broker internationally, is already breathing down the neck of its "near
abroad" neighbors, especially in its old Soviet Union-era stompin grounds like Georgia and Ukraine. It
doesnt end there. Transnational Trouble If it werent for our spooks and special operations forces, Osama
bin Laden would still be stalking the Earth, calling the shots for al Qaeda and its affiliates around the world
against a slew of countries that have suffered at his hands and those of his terror cohorts. While killing bin
Laden may not be the knockout punch to al Qaeda that we all hope it is, it was certainly a major body
blow, and the group will likely be shaking it off on the canvas for a bit. American drone strikes in the
Pakistani tribal areas on the Taliban and in Yemen on al Qaeda factions make sure the terrorists know that
theyre never completely out of reach of the long arm of Lady Liberty. Weapons of mass destruction (WMD)
would be more common than they are today without U.S. efforts like the Bush-era Proliferation Security
Initiative, which joins states together to fight the spread of these deadly technologies and weapons. For
instance, American efforts in recent years led directly to Libya surrendering its nuclear program, and
without our uncovering the network of Pakistan's prodigious proliferator, A.Q. Khan, hed still be going door
to door, hawking his nuclear wares to who-knows-who. Not surprisingly, our cutting-edge engineers and
scientists are developing the worlds most prodigious ballistic missile defense system to protect the
American homeland, our deployed troops, allies and friends that face the growing WMD and missile threat.
Why be held hostage to North Korea, which can likely hit the West Coast of the United States with a
nuclear missile, or Iran, which will have an intercontinental ballistic missile (ICBM) that can reach out an
touch us as soon as 2015? Moreover, our Navy patrols the worlds oceans, providing freedom of the seas
free of charge. It also protects international shipping against sea banditry and modern-day piracy, a
growing problem especially in Southeast Asia and off the Horn of Africa. But thats not all. Uncle Sugar In
addition, U.S. intelligence assets, especially satellites, provide critical information to the international
community, including early warning of crises and ongoing support during hostilities or humanitarian
Haiti. In addition, the American medical ship USNS Mercy and other U.S. Navy ships ply the Seven Seas
performing numerous humanitarian missions around the world every year, bringing much-needed help to
those without access to basic medical care. Of course, there are other generous gifts from Uncle Sam,
starting with the lions share of the United Nations budget. We also fund half the operations of the World
Food Program, feeding more than 100 million people in nearly 80 countries. Moreover, we also contribute
to U.N. programs which fight HIV/AIDS; vaccinates, educates and protects children across the globe; battles
human trafficking; combats child labor; and supports international peacekeeping. Were also the worlds
trainer, providing military, counterterror and counternarcotics education, and equipment to some 130
countries around the world, especially in places like Latin America and the Middle East, where the need
runs high. Colombia, which came close to falling to the narcoterrorist group, the FARC, turned into the
counterterror and counterinsurgency success story it is today because of American assistance and training.
Colombia isnow helping Mexico with its drug cartel problem. The United States even created African
Command [AFRICOM]which supports and trains armed forces in African states so that they can
appropriately respond to possible crises or disasters on that continent. The U.S. government has also
funded new technologies, often through military research and development, that have primed the pumps
of the private sector, stirred further innovations and made life better for so many, from the Internet to the
microwave oven to GPS. But what about a world without todays America? Absent America Singapores
former prime minister, Lee Kwan Yew, had it right when he told the Wall Street Journal recently, The
there
is nobody else to relieve the United States of this duty at least for the
moment. Nor are any of the prospective candidates looking good . While
some would like to see the United Nations in this role, it has been nothing short of a
disappointment. While some at the U.N. mean well, it is hamstrung by its own diversity of values
and interests, leaving it often quite feckless in dealing with the matters that everyone agrees requires
Solvency
The Secure Data Act would prevent mandated NSA
backdoors and bolster trust in Congress ability to restrict
surveillance
Wicklander 15 [Carl: politics writer Bipartisan Secure Data Act Has Votes
to Pass House, But Will Lawmakers Drag Their Feet?, Independent Voter
Network, February 9, 2015, http://ivn.us/2015/02/09/bipartisan-secure-dataact-votes-pass-house-will-lawmakers-drag-feet/ // emb].
Last week, a bipartisan group of legislators introduced a bill intended
to protect Americans privacy and online data. In a press release, U.S.
Reps. Thomas Massie (R-Ky.), James Sensenbrenner (R-Wis.), and Zoe Lofgren (DCalif.) announced that the purpose of the Secure Data Act of 2015 is not
to restrict the ability of intelligence agencies to collect data in general. However, they do intend to reassert the role of Congress in regulating these activities: Congress
has allowed the Administrations surveillance authorities to go
unchecked by failing to enact adequate reform. . . . With threats to
our homeland ever prevalent, we should not tie the hands of the
intelligence community. But unwarranted, backdoor surveillance is
indefensible. The Secure Data Act is an important step in rebuilding
public trust in our intelligence agencies and striking the appropriate
balance between national security and civil liberty. The bill is an
attempt to specifically guard against backdoor searches, including those
where identifiers such as phone numbers and e-mail addresses known to belong to Americans are
employed to conduct the searches. For years, privacy advocates have denounced these types of searches
as a way to skirt the law. According to the Register, a UK-based tech site, Under
the proposed
Secure Data Act, developers cannot be forced to insert security
holes into devices and code. An ACLU lawyer quoted in the story said that the previous
bills success might indicate that at least in the House they know how important it is to secure encryption
efforts. Massie, Lofgren, and Sensenbrenner tried to pass a similar version of the Secure Data Act near
the end of the 113th Congress. The legislation passed with broad support, 293-123, but was not included
in the omnibus bill that passed at the end of the session. A Senate version of the Secure Data Act was
introduced by Oregon U.S. Sen. Ron Wyden (D) in January. His bill is still waiting to move through the
Senate Committee on Commerce, Science and Transportation. Regaining the peoples trust may be one of
Polls have
consistently shown that Americans do not approve of the current
methods of surveillance and data collection. Previous bills have
passed Congress seeking to limit the power and authority of
agencies like the National Security Agency. However, the final
products were severely watered down versions of the initial
legislation. Even extensively supported bills such as the previous
Secure Data Act failed to get anywhere in both chambers of
Congress.
the harder obstacles when it comes to regulations on spying and surveillance.
comments by U.S. officials, most notably the Federal Bureau of Investigation (FBI) Director James Comey, chastising Apple
and Google for creating encrypted devices to which law enforcement cannot gain access. Comey and others have argued
that U.S. tech companies should design a way for law enforcement officials to access consumer data stored on those
devices. In this environment,
the FBI is working against its own goal of preventing cybercrime as well as broader government efforts to improve
cybersecurity. Just a few years ago, the Bureau was counseling people to better encrypt their data to safeguard it from
in the system and work to prevent any new ones. Rather than
decreasing security to suit its appetite for surveillance , the FBI should
recognize that better security is needed to bolster U.S. defenses against
online threats. The Secure Data Act is an important step in that
direction because it will stop U.S. law enforcement agencies from
requiring companies to introduce vulnerabilities in their products. If
this bill is enacted, law enforcement will be forced to use other means to solve crimes, such as by using metadata from
Cybersecurity Unita unit designed solely to deter, investigate, and prosecute cyber criminals, should work in
cooperation with the private sector to create a safer environment online.
What is Bullrun?
This is what it is.
Perlroth and Shane 13 [Nicole: technology reporter for The New York
Times, covers cyberattacks, hackers and the cybersecurity industry for The
Timess business news section, winner of the Society of American Business
Editors and Writers award for best technology coverage in 2013, and was
voted the top cybersecurity journalist by the SANS Institute in 2014 and
Scott: American journalist, currently employed by The New York Times,
reporting principally about the United States intelligence community, N.S.A.
Able to Foil Basic Safeguards of Privacy on Web, The New York Times,
September 5, 2013,
http://ctvoterscount.org/CTVCdata/13/09/NYTimes20130905.pdf // emb].
The National Security Agency is winning its long-running secret war
on encryption, using supercomputers, technical trickery, court
orders and behind the-scenes persuasion to undermine the major
tools protecting the privacy of everyday communications in the
Internet age, according to newly disclosed documents. The agency
has circumvented or cracked much of the encryption, or digital scrambling,
that guards global commerce and banking systems, protects
sensitive data like trade secrets and medical records, and
automatically secures the e-mails, Web searches, Internet chats and
phone calls of Americans and others around the world, the documents
show. Many users assume or have been assured by Internet
companies that their data is safe from prying eyes, including
those of the government, and the N.S.A. wants to keep it that way.
The agency treats its recent successes in deciphering protected information as among its most closely
1990s to insert its own back door in all encryption, it set out to accomplish the same goal by stealth.
The agency, according to the documents and interviews with industry officials, deployed
custom-built, superfast computers to break codes, and began
collaborating with technology companies in the United States and
abroad to build entry points into their products . The documents do not identify
which companies have participated. The N.S.A. hacked into target computers to
snare messages before they were encrypted. In some cases, companies
say they were coerced by the government into handing over their
master encryption keys or building in a back door. And the agency
used its influence as the worlds most experienced code maker to
covertly introduce weaknesses into the encryption standards
followed by hardware and software developers around the world.
For the past decade, N.S.A. has led an aggressive, multipronged
effort to break widely used Internet encryption technologies, said a
2010 memo describing a briefing about N.S.A. accomplishments for employees of its British counterpart,
Government Communications Headquarters, or GCHQ. Cryptanalytic capabilities are now coming online.
Vast amounts of encrypted Internet data which have up till now been discarded are now exploitable.
When the British analysts, who often work side by side with N.S.A. officers, were first told about the
program, another memo said, those not already briefed were gobsmacked!
An intelligence
budget document makes clear that the effort is still going strong.
We are investing in groundbreaking cryptanalytic capabilities to defeat adversarial cryptography and
exploit Internet traffic, the director of national intelligence, James R. Clapper Jr., wrote in his budget
request for the current year. In recent months, the documents disclosed by Mr. Snowden have described
the N.S.A.s reach in scooping up vast amounts of communications around the world. The encryption
documents now show, in striking detail, how the agency works to ensure that it is actually able to read the
information it collects. The agencys success in defeating many of the privacy protections offered by
encryption does not change the rules that prohibit the deliberate targeting of Americans e-mails or phone
calls without a warrant. But it shows that the agency, which was sharply rebuked by a federal judge in
2011 for violating the rules and misleading the Foreign Intelligence Surveillance Court, cannot
necessarily be restrained by privacy technology .
Granneman 13
Joseph, resident expert on information security management. He has more
than 20 years of technology experience, How to protect corporate data after
the NSA Bullrun revelations, http://searchsecurity.techtarget.com/tip/How-toprotect-corporate-data-after-the-NSA-Bullrun-revelations //NA
The shocking news of project Bullrun has served as a much-needed
wake-up call for all of us in the information security field. The
technologies that we trusted to keep us secure have instead been
used for mass surveillance. Even worse, the types of attacks
highlighted in the NSA Bullrun documentation could be performed by
many other malicious actors on the Internet. Companies must respond by developing new
mitigation strategies, such as the use of open source infrastructure, internal private key management and
private cloud hosting, to protect critical data assets .
Terms
Backdoor
How backdoors work
Tech blog 11 (How Hackers Use Backdoors to Access a Network;
http://www.thrivenetworks.com/blog/category/client-services/)
Backdoors are a method that hackers use to establish unauthorized
access to a network from a remote location. Hackers use backdoors
as a means of gaining repeated access to a network without being
logged by the systems administrator. This type of network intrusion hides its
presence while the hacker is actually using the network without the knowledge of others. How
Backdoors Work Hackers gain access to a network by creating backdoors
on compromised systems. This is accomplished by searching for
vulnerabilities in the network such as unused accounts which have passwords that are easy to
crack. Once the intruder is in they change the password to a different password that is difficult to break.
When the systems administrator monitors the network, the account where the hacker modified the
systems administrator has detected unauthorized access in the systems log. This is especially true if the
default passwords created by the manufacturer are left on the system .
A backdoor is used by
hackers to install malware for the purpose of stealing information from
a network such as company trade secrets or customer financial data . Backdoors can also be
used to launch Denial of Service attacks which can bring down an
entire company network. DoS attacks are performed by sending an excessive amount of
information packets over a network which results in network failure. How Hackers Find Network
which are the perfect location for an exploit. Often these are unused accounts on a network perhaps once
used by a former employee that left the company or other type of situation.
Vulnerabilities in a
network system can be detected by using specialized software that the hacker activates from a
remote location to sniff around the system and identify the weaknesses. The typical target is unused
accounts or services or even accounts that have been disabled. The hacker can choose one of these
components and remove it and then install a new system under the same name. This helps the hackers
point of entry to remain anonymous when the systems administrator performs a security inspection of the
that allows system privileges. An account that has system privileges is similar to your PC administrator
account. It allows you to change passwords and privileges for other accounts and basically have full access
review of the event log that provides a report of events on the network. A systems administrator that is on
top of how network criminals operate and the latest techniques they use will be able to adequately protect
the network from intrusion. Allow Thrive Networks to monitor your network and save you from potential
intrusions. Contact us today for more information!
Decryption
The definition of decryption is to decode or to decifer
Oxford Dictionary 15
[http://www.oxforddictionaries.com/us/definition/american_english/decryption
] Syllabification: decryption Definition of decryption in English: noun
the process of changing information that is in code into ordinary
language so that it can be understood by anyone
Encryption -
were interested in protecting their military secrets by using their famous Enigma machine. With the
Inherency
http://www.newyorker.com/tech/elements/how-the-n-s-a-cracked-the-web mm
Cryptographic and security experts have been able to piece together
some ideas about the extent of the agencys capabilities. Mike Janke,
the C.E.O. of the encrypted-communications company Silent Circle
which shut down its encrypted e-mail service a few weeks ago said
over the phone that, based on information and literature he has
seen, he believes the N.S.A. developed a massive push-button
scale ability to defeat or circumvent S.S.L. encryption in virtually
real time.
He added, the reality of it is that most of the security world has known that lower level
probably collected by hacking into companies computer servers, where they are stored. If the agency
possesses the keys, there is no need to crack the encryption algorithm.
contractor.
the Ruskies. Only a small set of relatively weak techniques approved by the Commerce and State
http://www.pcworld.com/article/2887792/nsa-director-wants-govt-access-toencrypted-communications.html]
It probably comes as no surprise that the director of the U.S. National Security
Agency wants access to encrypted data on computers and other
devices. The U.S. should be able to craft a policy that allows the
NSA and law enforcement agencies to read encrypted data when
they need to, NSA director Michael Rogers said during an
appearance at a cybersecurity policy event Monday. Asked if the
U.S. government should have backdoors to encrypted devices,
Rogers said the U.S. government needs to develop a framework.
You dont want the FBI and you dont want the NSA unilaterally
deciding, So, what are we going to access and what are we not
going to access? Rogers said during his appearance at the New
America Foundation. That shouldnt be for us. I just believe that
this is achievable. Well have to work our way through it. Justsecurity.org
has a transcript of an exchange between Rogers and Yahoo CISO Alex Stamos at Mondays event. Rogers isnt the first
In
September, after Apple and Google announced encryption features
on their smartphone OSes, both FBI Director James Comey and
Attorney General Eric Holder raised concerns that additional
encryption tools would hinder law enforcement investigations. Stamos
questioned whether it is a good idea to build backdoors in encryption. If were going to build
defects/backdoors or golden master keys for the U.S. government,
do you believe we should do so .... for the Chinese government, the
Russian government, the Saudi Arabian government, the Israeli
government, the French government? he said, according to the Justsecurity transcript.
member of President Barack Obamas administration to call for encryption workarounds in recent months.
Rogers objected to using the word backdoor. When I hear the phrase backdoor, I think, Well, this is kind of shady.
Why would you want to go in the backdoor?
leader initially opposed. Paul has been leading the charge against extending any of the National Security
Agencys spying powers authorized under the Patriot Act. He blocked any short-term extension of the law
and has repeatedly delayed votes on the reform bill, which he believes doesnt go far enough. Wyden,
also a vocal NSA critic, has joined Paul to press for votes on privacy-focused amendments to the USA
Freedom Act. A measure barring backdoors has been one of the most sought-after provisions among techsavvy lawmakers and the privacy community in recent years. A bipartisan group of lawmakers is fighting
from 1995 to 2003 and is currently president and CEO of the American
Bankers Association; Richard Hunt: president and CEO of the Consumer
Bankers Association; Jim Nussle:congressman from Iowa from 1991 to 2007
and is currently president and CEO of the Credit Union National Association;
Tim Pawlenty: governor of Minnesota from 2003 to 2011 and is currently
president and CEO of the Financial Services Roundtable; Camden R. Fine:
president and CEO of the Independent Community Bankers of America; D.
Dan Berger: president and CEO of the National Association of Federal Credit
Unions; and Jim Aramanda: president and CEO of The Clearing House. Their
organizations are members of the Financial Services Data Security Coalition,
Congress must act against cyber crime, The Hill, June 15, 2015,
http://thehill.com/blogs/congress-blog/technology/244848-congress-must-actagainst-cyber-crime // emb].
When consumer expectations dont match reality, things can go terribly wrong. Americans expect
companies with which they do business to protect their sensitive personal and financial data. Yet, the
and credit card accounts have been compromised at major retail locations. It is important to remember
that behind each of these compromised accounts are everyday Americans who now have to deal with the
raw and frightening consequences of having their virtual identity stolen. In 2014 alone, criminals stole $16
billion from more than 12.7 million fraud victims and, not surprisingly, two-thirds of those victims can be
traced to data breaches. The stakes are high. And consumers are paying the price. In some sectors,
where the nature and sensitivity of consumer data has always been obvious, such as banking and health
and Reps. Randy Neugebauer (R-Texas) and John Carney (D-Del.) have stepped in to help. With
approximately 200 million electronic payment transactions daily 2,300 transactions per second Blunt,
Carper, Neugebauer and Carney want to ensure a customers sensitive personal and financial information
are secure at every point in the payment process. That is why they have introduced S. 961/H.R. 2205, the
Data Security Act of 2015 bills that provide a reasonable, flexible and scalable solution to better protect
consumers and their hard-earned money. These bills recognize todays savvy cyber criminals are seeking
out the weakest link in the payment system. Businesses of any shape and size are susceptible to breaches
that can result in drained accounts, racked up credit card bills, and stolen identities. Thats why these
measures are modeled after existing law that provides a successful framework used by the financial
sector, a diverse industry in which one-size-fits-all regulations rarely work. Rather, the standards can be
tailored to avoid unnecessary burdens on small businesses and take into consideration the size, scope, and
type of financial information businesses hold. When it comes to ensuring consumer expectations of data
security are met, bank-like should be the baseline standard by which other industries are measured.
Securing consumer information should be a priority for every industry. Blunt, Carper, Neugebauer and
Carney have adeptly crafted bills that would ensure all parties in the custody of sensitive consumer
information take reasonable precautions to protect this information before a breach occurs. Its time to do
whats best for consumers. We urge everyone involved in the payment system and entrusted with
consumers financial information to rally behind effective legislation to better protect consumers and
strongly support the Data Security Act of 2015.
ADV Backdoors
Uniqueness
Enter the cypherpunks: a ragtag, homebrew crew of anti-authoritarian hackers hell-bent on subverting
spooks and protecting privacy on the Net. These luminaries developed the tools and rhetoric to make bad
laws irrelevant by making them unenforceable. For example, Phil Zimmermans Pretty Good Privacy (PGP)
program, a mainstay of modern email delivery, which Zimmerman posted to Usenet in 1991. After a threeyear criminal investigation, the U.S. Attorney's Office decided not to prosecute Zimmerman for sharing the
encryption protocol. Throughout the '90s, federal officials continued to ease strict export restrictions, and
messaging service providers such as WhatsApp that allow users to communicate though end-to-end
encryption, which conceals data content even from the service provider itself, could be compelled to issue
a dummy key to users while sneaking a real key to the NSA for intercepting or changing the content.
Alternatively, the government could mandate a "key escrow" arrangement, creating a master key for
officials capable of unlocking any of the encrypted data. Functionally, compelling backdoors to be baked
into encryption standards that governments can use to access private data at any time is no different than
surreptitiously breaking encryption behind the scenes. If mandated through law, such schemes would
present blatant constitutional threats. For now, agency heads opt for a softer touch, ham-handedly sweettalking Silicon Valley into doing their dark bidding "voluntarily." We may be superficially saved from the
more dramatic end of this spectrum of measures by officials own technical illiteracy: computer science
experts doubt that such hijinx are even technically feasible to the seamless degree that officials imagine.
And even if these proposals do "work," they would be likely to introduce more unforeseen vulnerabilities
Links Backdoors
Decryption Backdoors
Backdoors that aim to subvert encryption systems are
easily exploitable by other actors this is empirically
proven. Legal restrictions are critical to restore strong
encryption systems (1ac)
Bruce Schneier 14 the Chief Technology Officer of Resilient Systems, a
fellow at Harvard's Berkman Center, and a board member of EFF. Stop the
Hysteria over Apple Encryption, 10/3/14
https://www.schneier.com/essays/archives/2014/10/stop_the_hysteria_ov.html
Last week Apple announced that it is closing a serious security vulnerability in the iPhone. It used to be
that the phone's encryption only protected a small amount of the data, and Apple had the ability to bypass
security on the rest of it. From now on, all the phone's data is protected. It can no longer be accessed by
criminals, governments, or rogue employees. Access to it can no longer be demanded by totalitarian
governments. A user's iPhone data is now more secure . To hear U.S. law enforcement respond, you'd think
Apple's move heralded an unstoppable crime wave. See, the FBI had been using that vulnerability to get
into peoples' iPhones. In the words of cyberlaw professor Orin Kerr, "How is the public interest served by a
policy that only thwarts lawful search warrants?" Ah, but that's the thing :
In 2013, encryption foiled the police nine times, up from four in 2012and
the investigations proceeded in some other way. This is why the FBI's scare stories tend to wither after
public scrutiny. A former FBI assistant director wrote about a kidnapped man who would never have been
found without the ability of the FBI to decrypt an iPhone, only to retract the point hours later because it
wasn't true. We've seen this game before. During the crypto wars of the 1990s, FBI Director Louis Freeh
and others would repeatedly use the example of mobster John Gotti to illustrate why the ability to tap
telephones was so vital. But the Gotti evidence was collected using a room bug, not a telephone tap. And
those same scary criminal tropes were trotted out then, too. Back then we called them the Four Horsemen
of the Infocalypse : pedophiles, kidnappers, drug dealers, and terrorists. Nothing has changed. Strong
encryption has been around for years. Both Apple's FileVault and Microsoft's BitLocker encrypt the data on
computer hard drives. PGP encrypts email. Off-the-Record encrypts chat sessions. HTTPS Everywhere
encrypts your browsing. Android phones already come with encryption built-in. There are literally
thousands of encryption products without back doors for sale, and some have been around for decades.
Even if the U.S. bans the stuff, foreign companies will corner the market because many of us have
legitimate needs for security. Law enforcement has been complaining about "going dark" for decades now.
In the 1990s, they convinced Congress to pass a law requiring phone companies to ensure that phone calls
would remain tappable even as they became digital. They tried and failed to ban strong encryption and
mandate back doors for their use. The FBI tried and failed again to ban strong encryption in 2010. Now, in
Strong encryption
protects us from a panoply of threats. It protects us from hackers
and criminals. It protects our businesses from competitors and
foreign spies. It protects people in totalitarian governments from
arrest and detention. This isn't just me talking: The FBI also recommends you encrypt your
data for security. As for law enforcement? The recent decades have given
them an unprecedented ability to put us under surveillance and
access our data. Our cell phones provide them with a detailed history of our movements. Our call
the post-Snowden era, they're about to try again. We need to fight this.
records, email history, buddy lists, and Facebook pages tell them who we associate with. The hundreds of
companies that track us on the Internet tell them what we're thinking about. Ubiquitous cameras capture
our faces everywhere. And most of us back up our iPhone data on iCloud, which the FBI can still get a
warrant for.
Orin Kerr rethought his position, looking at this in terms of a technological-legal trade-off. I think he's right.
conference last year showed off a way to backdoor a new PC so that even switching the hard drive wont
close the door (see A
technology defeated hardware attached to a server that attempted to copy data and send it out over the
Internet, and that these results have been validated by rigorous tests commissioned from an outside
security firm. However, the protection has its limits. The one component we trust is an Intel processor,
and every step in the process can be compromised. Chipmakers usually buy third-party IP blocks to
integrate into a final design. Slipping extra circuits into one of those outside designs would be the easiest
way to backdoor a chip, says Sethumadhavan, because tools dont exist to screen for them. Right now
theres relatively little security validation thats going on, he says. You
that almost never become active. Such circuits are suspected of being part of a backdoor, because chip
designers avoid wasting space or circuitry in designs since manufacturing chips is expensive. The tool
shows that even the trickiest of hardware backdoors can be hunted for, says Sethumadhavan; despite that,
organizations determined to spread backdoors continue to have many opportunities to do so. The most
advanced research on detecting backdoors is likely being conducted by the NSA itself, inasmuch as the
agency is also tasked with defending U.S. government systems. But nothing has been publicly said, or
leaked, about how much progress the NSA is making. A statement from defense research agency DARPA
late last year, in which it announced a new program to develop ways to detect backdoors, suggests
the problem remains hellish even for the Department of Defense. DoD relies on millions of devices to
bring network access and functionality to its users, said Tim Fraser, DARPA program manager. Rigorously
vetting software and firmware in each and every one of them is beyond our present capabilities, and the
perception that this problem is simply unapproachable is widespread.
writing about the impact of technology on people, business and culture for
more than a decade., The undercover war on your internet secrets: How
online surveillance cracked our trust in the web,
http://www.techrepublic.com/article/the-undercover-war-on-your-internetsecrets-how-online-surveillance-cracked-our-trust-in-the-web/
Of course, it's often argued that all of this activity is simply the NSA
and GCHQ doing their job: they break codes and have done so for decades, to make sure that
criminals, terrorists, and others cannot plot in secret. If this means exploiting
weaknesses in software in order to eavesdrop on those who are
plotting crime, then so be it. As GCHQ told a government enquiry set up after the Snowden
revelations: "Our goal is to be able to read or find the communications of intelligence targets." From that
perspective, they're doing nothing more than the code-breakers of Bletchley Park did back in WWII
cracking codes in secret to fight the country's enemies. But many argue that the analogy doesn't hold:
Bletchley worked on cracking codes used by, and only by, the Nazis. What the NSA and GCHQ have been
doing is breaking the codes used by everyone, good and bad, both outside of the US and inside it. By doing
so,
government should ever have such a capability to trawl through the lives of individuals. "It produces an
inescapable prison. We can't let this happen. We have to, as a matter of civic hygiene, prevent it from
happening," Phil Zimmermann, the creator of the PGP encryption algorithm, said recently. And if the
Snowden revelations themselves were an embarrassment for the intelligence agencies, the consequences
such as Yahoo and Google rapidly starting encrypting this traffic to shut out the watchers. As one
cryptography expert, Matthew Green from Johns Hopkins University, noted at the time: "Good job NSA. You
companies started reacting," said Gus Hosein, the executive director of campaigning group Privacy
International. Perhaps surprisingly, given the decade-long assault on encryption, it seems the
fundamentals of it remain strong, so long as it has been well implemented. As Snowden said: "Encryption
works. Properly implemented, strong crypto systems are one of the few things that you can rely on," before
adding the caveat: "Unfortunately, endpoint security is so terrifically weak that NSA can frequently find
ways around it." Encrypting data links between datacentres was only the beginning. As the revelations
continued to tumble out, more companies decided it was time to increase the privacy of their services,
which meant even more encryption.
and Researcher for The Intercept & Senior Researcher and Technical Advisor
at the Citizen Lab at the University of Torontos Munk School of Global Affairs,
POPULAR SECURITY SOFTWARE CAME UNDER RELENTLESS NSA AND GCHQ
ATTACKS, The Intercept, https://firstlook.org/theintercept/2015/06/22/nsagchq-targeted-kaspersky/, ST)
The National Security Agency and its British counterpart,
Government Communications Headquarters, have worked to subvert
anti-virus and other security software in order to track users and
infiltrate networks, according to documents from NSA whistleblower
Edward Snowden. The spy agencies have reverse engineered
software products, sometimes under questionable legal authority,
and monitored web and email traffic in order to discreetly thwart
anti-virus software and obtain intelligence from companies about
security software and users of such software. One security software
maker repeatedly singled out in the documents is Moscow-based
Kaspersky Lab, which has a holding registered in the U.K., claims
more than 270,000 corporate clients, and says it protects more than
400 million people with its products. British spies aimed to thwart
Kaspersky software in part through a technique known as software
reverse engineering, or SRE, according to a top-secret warrant
renewal request. The NSA has also studied Kaspersky Labs software
for weaknesses, obtaining sensitive customer information by
monitoring communications between the software and Kaspersky
servers, according to a draft top-secret report. The U.S. spy agency
also appears to have examined emails inbound to security software
companies flagging new viruses and vulnerabilities. The efforts to
compromise security software were of particular importance
because such software is relied upon to defend against an array of
digital threats and is typically more trusted by the operating system
than other applications, running with elevated privileges that allow
more vectors for surveillance and attack. Spy agencies seem to be
engaged in a digital game of cat and mouse with anti-virus software
companies; the U.S. and U.K. have aggressively probed for
weaknesses in software deployed by the companies, which have
themselves exposed sophisticated state-sponsored malware. Anti-virus
software is an ideal target for a would-be attacker, according to Joxean Koret, a researcher with Coseinc, a
Singapore-based information security consultancy .
If you write an exploit for an antivirus product youre likely going to get the highest privileges (root,
system or even kernel) with just one shot, Koret told The Intercept
in an email. Anti-virus products, with only a few exceptions, are
years behind security-conscious client-side applications like
browsers or document readers. It means that Acrobat Reader,
embedded in User-Agent strings included in the headers of Hypertext Transfer Protocol, or HTTP,
requests. Such headers are typically sent at the beginning of a web request to identify the type of software
and computer issuing the request.
http://securityaffairs.co/wordpress/17577/intelligence/nsa-bullrun-programfalse-perception-security.html // emb].
The most disturbing revelation involves the NSAs efforts to deliberately weaken
international encryption standards developers use to make their
encryption secure, according to a classified NSA memo obtained by NYT the fatal
weakness discovered by two Microsoft cryptographers in 2007 in a
2006 standard was intentionally engineered by the NSA. Basically,
the NSA asks companies to subtly change their products in
undetectable ways: making the random number generator less
random, leaking the key somehow, adding a common exponent to a
public-key exchange protocol, and so on,If the backdoor is discovered,
its explained away as a mistake. And as we now know, the NSA has
enjoyed enormous success from this program. said cryptographer Bruce
Schneier. Some of the methods involved the deployment of custombuilt, supercomputers to break codes in addition to collaborating
with technology companies at home and abroad to include
backdoors in their products. The Snowden documents dont identify the companies that
participated. The Bullrun program, according to the documents, actively engages
the U.S. and foreign IT industries to covertly influence and/or
overtly leverage their commercial products designs to make them
exploitable. By this year, the Times reports, the program had found ways
inside some of the encryption chips that scramble information for
businesses and governments, either by working with chipmakers to
insert back doors or by surreptitiously exploiting existing security
flaws. We are therefore assuming that the U.S. Government has deliberately
prompted to enter bugs in software solutions sold worldwide, the
knowledge of those flaws could then have been sold in the black
market of zero-day vulnerabilities about which so much has been
discussed. At that point, probably the same U.S. Intelligence would
offer big bucks to buy back the zero-day to cover traces of the
shocking activities.
director Jim Comey first started making the push last year, and it has been widely ridiculed by technical
experts, but the chorus inside government seems to have only gotten louder even as officials claim
cyberattacks are the number one threat the nation faces.
is
preposterous. As Johns Hopkins cryptography professor Matthew
Green tweeted, You could strangle the whole U.S. tech industry,
and ISIS would *still* be able to communicate with their followers
using encryption. There are plenty of open-source encryption programs that have been around
for 20 years and are too prevalent to rein in, plus the code itself is protected by the First Amendment.
Forcing big companies to backdoor their products will just hurt the
millions of ordinary people worldwide who depend on encryption for
protection from snoopers, criminals and foreign governments. That
leaves the sender until it reaches its recipient if the US bans companies from using it
includes tech companies Chinese users, who can use encryption to protect themselves from their own
authoritarian government. Just weeks after the FBI unveiled its anti-encryption plans last year, China
announced it too wants to pass a counter-terrorism law that would force companies like Apple and
Google to hand over encryption keys. Without a hint of irony, the Obama administration condemned the
move. Heres how Reuters reported it in March: In an interview with Reuters, Obama said he was
concerned about Beijings plans for a far-reaching counterterrorism law that would require technology firms
to hand over encryption keys, the passcodes that help protect data, and install security backdoors in
their systems to give Chinese authorities surveillance access. This is something that Ive raised directly
with President Xi, Obama said. We have made it very clear to them that this is something they are going
to have to change if they are to do business with the United States. Read that opening paragraph again
and try to explain how its any different than what the US is proposing. Yes, China will almost certainly use
its counter-terrorism powers for all sorts of things beyond terrorism. But wed be kidding ourselves if we
didnt think the US will use its own backdoor powers to do the exact same thing, as theyve done over
been speaking out in public on this issue, forcefully defending the use of encryption on iPhones as
creating a backdoor introduces the risk that other parties will find
the vulnerability, especially when capable adversaries, who are
actively seeking security vulnerabilities, know how to leverage such
weaknesses. History illustrates that secret backdoors do not remain
secret and that the more widespread a backdoor, the more
dangerous its existence. The 1988 Morris worm, the first widespread
Internet attack, used a number of backdoors to infect systems and
spread widely. The backdoors in that case were a set of secrets then
known only by a small, highly technical community . A single, putatively
innocent error resulted in a large-scale attack that disabled many systems. In recent years,
Barracuda had a completely undocumented backdoor that allowed
high levels of access from the Internet addresses assigned to
Barracuda. However, when it was publicized, as almost inevitably happens, it became extremely
unsafe, and Barracudas customers rejected it. One example of how attackers can
subvert backdoors placed into systems for benign reasons occurred
in the network of the largest commercial cellular operator in Greece.
Switches deployed in the system came equipped with built-in
wiretapping features, intended only for authorized law enforcement
agencies. Some unknown attacker was able to install software, and
made use of these embedded wiretapping features to surreptitiously
and illegally eavesdrop on calls from many cell phones including
phones belonging to the Prime Minister of Greece, a hundred high-ranking
Greek dignitaries, and an employee of the U.S. Embassy in Greece before the security breach finally was
Cyber Attacks
Bullrun makes the US vulnerable to cyberattacks builds
in backdoors that could be exploited by hackers
Harris & Gross 14
Shane Harris, winner of the 2010 Gerald R. Ford Prize for Distinguished Reporting on National Defense, and
Terry Gross, host and co-executive producer of NPRs Fresh Air, An In-Depth Look At The U.S. Cyber War,
The Military Alliance And Its Pitfalls, NPR, 11/17/14, http://www.npr.org/2014/11/17/364718523/an-indepth-look-at-the-u-s-cyber-war-the-military-alliance-and-its-pitfalls SJE
GROSS: So getting back to the military Internet complex, this seemingly cooperative relationship between
really gets to the heart of - there are two conflicting missions within the NSA. On the one hand, the NSA's
mission is to protect information and protect computer networks so that the data - and in many cases the
government secrets inside official networks - can't be stolen. On the other hand, the NSA is a spying
agency. Its job is to go out and try and break into computer systems in other countries and steal
telecommunications equipment that's sold in this country that's also used in foreign countries that we're
cybersecurity and defend information, on the other hand, trying to keep computer systems around the
world just weak enough, at least maybe in the places that they know about, so that they can manipulate
them and perhaps have, you know, exclusive or kind of privileged access to them when they want them.
Those two missions are very much at conflict with each other. GROSS: Yeah, and in addition to the NSA
preserving some of those vulnerabilities so it can get access to information,
catch on to that and see that the algorithm had a weakness and
also exploit that as well.
So
ostensibly to make sure that it had the ability to decipher messages of what it would say are the bad guys if it ever needed to do that because the bad guys could be using this encryption just the same way you
are used for the majority of e-commerce all over the world. You
cant go to your bank and trust that communication if those
standards have been weakened, if those standards are vulnerable.
And this is resulting in a paradigm where these agencies wield tremendous power over
the internet at the price of making the rest of their nation incredibly
vulnerable to the same kind of exploitative attacks , to the same
sort of mechanisms of cyber-attack.
when it comes to eavesdropping on the military in Syria or trade negotiations over the price of shrimp in Indonesiawhich
is an actually real anecdoteor even monitoring the climate change conference, it means it results. It means we end up
living in an America where
have a national surveillance agency . And until we reform our laws and
until we fix the excesses of these old policies that we inherited in
the post-9/11 era, were not going to be able to put the security
back in the NSA.
Bamford: Thats great. Just along those lines, from what you know about the project Bullrun
and so forth, how secure do you think things like AES, DES, those things are, the advanced encryption standard?
Snowden: I dont actually want to respond to that one on camera, and the answer is I actually dont know. But yeah, so
lets leave that one. Bamford: I mean, that would have been the idea to weaken it. Snowden: Right. The idea would be to
weaken it, but which standards? Like is it AES? Is it the other ones? DES was actually stronger than we thought it was at
the time because the NSA had secretly manipulated the standard to make it stronger back in the day, which was weird,
but that shows the difference in thinking between the 80s and the 90s. It was the S-boxes. Thats what it was called. The
S-boxes was the modification made. And today, where they go, oh, this is too strong, lets weaken it. The NSA was actually
we see that
their priority is weakening our security, just so they have a better
chance of keeping an eye on us.
concerned back in the time of the crypto-wars with improving American security. Nowadays,
reasonable garb of genuine law enforcement concerns. Proposed new encryption-weakening schemes tend
to take one of two major forms. First, messaging service providers such as WhatsApp that allow users to
communicate though end-to-end encryption, which conceals data content even from the service provider
itself, could be compelled to issue a dummy key to users while sneaking a real key to the NSA for
intercepting or changing the content. Alternatively, the government could mandate a "key escrow"
arrangement, creating a master key for officials capable of unlocking any of the encrypted data.
Functionally, compelling backdoors to be baked into encryption standards that governments can use to
access private data at any time is no different than surreptitiously breaking encryption behind the scenes.
If mandated through law, such schemes would present blatant constitutional threats. For now, agency
heads opt for a softer touch, ham-handedly sweet-talking Silicon Valley into doing their dark bidding
"voluntarily." We may be superficially saved from the more dramatic end of this spectrum of measures by
officials own technical illiteracy: computer science experts doubt that such hijinx are even technically
feasible to the seamless degree that officials imagine. And even if these proposals do "work," they would
be likely to introduce more unforeseen vulnerabilities into the fabric of the Internet. Besides, foreign
countries such as China and Russia are unlikely to simply comply with America's dramatic decryption
measures without pursuing these very same policies themselves (something Obama, of course, opposes).
As more of our lives come to rely on digitized data maintenance, encryption becomes all the more critical
Med Industry
Backdoors are responsible for hacks on the entire health
sector hardware and medical equipment are already
equipped with exploitable malware which means they can
be exploited from afar
Storm 6/9/15 [Darlene: @SecurityIsSexy Hi. I'm Darlene Storm. I blog
security for Computerworld's Security Is Sexy. MEDJACK: Hackers hijacking
medical devices to create backdoors in hospital networks June 9, 2015
http://www.channelworld.in/news/medjack%3A-hackers-hijacking-medicaldevices-to-create-backdoors-in-hospital-networks]
After the Office of Personnel Management breach, medical data was labeled as the
"holy grail" for cybercriminals intent on espionage. "Medical
information can be worth 10 times as much as a credit card number, "
reported Reuters. And now to steal such information, hospital networks are getting
pwned by malware-infected medical devices. TrapX, a deceptionbased cybersecurity firm, released a report about three real-world
targeted hospital attacks which exploited an attack vector the
researchers called MEDJACK for medical device hijack . "MEDJACK has
brought the perfect storm to major healthcare institutions globally ,"
they warned. "Medical devices complimented by the MEDJACK attack
vector may be the hospital's weakest link in the chain'." In three
separate hospitals, TrapX found "extensive compromise of a variety
of medical devices which included X-ray equipment, picture archive
and communications systems (PACS) and blood gas analyzers (BGA)." But
"there are many other devices that present targets for MEDJACK. This
includes diagnostic equipment (PET scanners, CT scanners, MRI machines, etc.), therapeutic equipment
(infusion pumps, medical lasers and LASIK surgical machines), and life support equipment (heart - lung
machines, medical ventilators, extracorporeal membrane oxygenation machines and dialysis machines)
and much more." Hospital lab blood gas analyzer attack Blood gas analyzers are often used in critical care
medical devices "are closed devices, running out-of-date, closed, often times modified and likely insecure
install medical devices behind a firewall and the internal network runs antivirus and other endpoint and
software in medical devices, so they depend on manufacturers to build and maintain security in those
devices. Yet manufacturers have not developed "the requisite software to detect most of the software
During a
different persistent attack at another hospital, the attacker moved
laterally through the networks looking for other targets. But the
"source of this lateral movement was the picture archive and
communications systems (PACS) that provided the radiology
department with the storage and access to images derived from
multiple sources. These image sources included CT scanners, MRI
scanners, portable x-ray machines (c-arms), X-ray and ultrasound
equipment." The PACS system also tried to act as a botnet and
connect to Command and Control. The lateral movement "appears to
have enabled the infection of a key nurse's workstation" and
confidential hospital data was being exfiltrated to Guiyang, China.
It's believed to have all started after an end-user in the hospital
surfed to a malicious website. Malware-infected X-Ray systems In the third realworld attack observed by TrapX, critical medical device components were
again infected with advanced malware. This time the attacker
installed a backdoor in one of the hospital X-ray systems . TrapX general
manager Carl Wright told SCMagazine: "Our scientists have observed that
you could manufacture an attack, designed specifically for several
models of a specific medical device, and then launch that attack.
That, combined with the difficulty in diagnosis and remediation, and
the very high value of healthcare data, create a near perfect target
for organized crime." Attacker could remotely hack hospital drug
pump, tweak amount to fatal dose We've heard about potentially
lethal attacks on medical devices like insulin pumps and
pacemakers, which got the feds pressed into protecting wireless
medical devices from hackers; a couple years later, DHS started
investigating 24 potentially deadly cyber flaws in medical devices .
Now there's more bad news on the medical device scene as
vulnerabilities in drug infusion pumps could be remotely exploited
by an attacker who could up the dose into a fatal dose. Security
researcher Billy Rios has discovered vulnerabilities in "at least five
models" of Hospira drug infusion pumps; he told Wired, "This is the
first time we know we can change the dosage." After testing the
infusion pumps, Rios discovered the following Hospira models are vulnerable:
the standard PCA LifeCare pumps, PCA3 LifeCare and PCA5 LifeCare pumps; the
payloads delivered by the MEDJACK attack." Hospital radiology aka the PAC pivot attack
Symbiq line of pumps and the Plum A+ model of pumps. Wired added that there are "at least 325,000"
Plum A+ drug infusion pumps currently installed in hospitals worldwide. Although Rios hasn't tested other
models for the vulnerabilities, "he suspects that the company's Plum A+3 and its Sapphire and
SapphirePlus models are equally vulnerable too
were spotted when TrapX installed its sensor-based technology in the hospitals, which TrapX declined to
identify by name. Ransomware, as well as Zeus, Citadel, and even Conficker, malware were discovered on
the devices. While none of these real-world hacks of the medical devices appeared to be used for sabotage
per se, TrapX says the malware on them indeed could be used for remote control of the devices. "We did
see multiple types of malware and ransomware resident on these [medical] devices," says Greg Enriquez,
managed by the manufacturer of the device, and the security team doesn't have access." Billy Rios, a
security researcher who has studied various types of consumer and medical system vulnerabilities, says
malware attacks on medical devices are "pretty common." Some of these devices are based on Windows,
for example, Rios says, so they are often susceptible to Windows exploits. "There have been previously
reported cases where these devices have become infected by run-of-the-mill malware. While this malware
isn't custom-made for medical devices, it shows that the devices are vulnerable to exploitation," says Rios,
based intrusion detection, endpoint security, and antivirus tools, as well as an experienced security team.
The hospital had no clue of the infections until TrapX installed its sensors, and noticed several alerts about
Zeus and Citadel Trojans were in place to grab passwords, and a worm was also found to spread and
propagate the malware. "The devices had an early version of Windows," Enriquez says, which made them
saw it going to China," Enriquez says. "Where it goes from there, how it gets routed that's unknown at
this point." The attack began with a user at the hospital visiting a malicious website that injected a Java
exploit into the user's browser and provided remote access to the attackers, and ultimately, the injection of
malware backdoor on the PACS, according to TrapX. In the third hospital, one of the x-ray systems was
credit card number, and the personal information they have may have value to a nation-state," Enriquez
says. TrapX's "Anatomy of an Attack Medical Device Hijack (MEDJACK)," will be released on June 15. The
company says hospitals should include language in their contracts with medical equipment makers that
covers malware infections. "They must include very specific language about the detection, remediation
and refurbishment of the medical devices sold to the hospitals which are infected by the malware. They
must have a documented test process to determine if they are infected, and a documented standard
process to remediate and rebuild them when malware and cyber attackers are using the devices," says
Mosh Ben Simon, co-founder and vice president of TrapX Security and general manager of TrapX Labs, in
the report.
Hardware
US hardware companies represent almost the entire harddrive market the NSA has secured backdoors in the
hard-drive firmware which allows the NSA access to any
and all data on the machine
Btarunr 2/16/15 [Editor & Senior Moderator for techpowerup.com NSA
Hides Spying Backdoors into Hard Drive Firmware
http://www.techpowerup.com/209925/nsa-hides-spying-backdoors-into-harddrive-firmware.html // mm]
and Seagate denied sharing the source-code of their HDD firmware with any government agency, and maintained that
it's clean, before it can buy PCs running their hard-drives. What is, however, surprising is how "tampered" HDD
firmware made it to mass-production. Seagate and WD have manufacturing facilities in countries like Thailand and China,
located in high-security zones to prevent intellectual property theft or sabotage. We can't imagine tampered firmware
making it to production drives without the companies' collaboration.
International Standards
The NSA has deliberately created vulnerabilities in
international encryption standards
Ranger 2/23/15 [Steve Ranger: UK editor of TechRepublic, and has been
writing about the impact of technology on people, business and culture for
more than a decade., The undercover war on your internet secrets: How
online surveillance cracked our trust in the web,
http://www.techrepublic.com/article/the-undercover-war-on-your-internetsecrets-how-online-surveillance-cracked-our-trust-in-the-web/
A 2013 NSA budget request revealed in another of the Snowden documents shows
that the NSA's plans included creating backdoors into commercial
encryption systems and influencing the standards and specifications
used as the foundations of privacy technologies with the intention of
making their access easier. The document states: "Resources in this
project are used to... insert vulnerabilities into commercial
encryption systems, IT systems, networks and endpoint communications devices used by
targets." The list goes on: another cryptography budget request published by The Intercept states: " This
project enables the defeat of strong commercial data security
systems; develops capabilities to exploit emerging information
systems and technologies that are employed or may be employed by
SIGINT targets; develops analytic algorithms, processes, and
procedures to exploit emerging information systems technologies;
and develops initial recognition, exploitation, and prototype
solutions against new technology targets." And last year the US
National Institute of Standards and Technology was forced to remove
a cryptographic algorithm from its list of random number generators
after allegations that the NSA had deliberately weakened it to make
it easier to crack.
the N.S.A.
has been deliberately weakening the international encryption
depend on there being a proven non-Sigint method of acquiring keys. Simultaneously,
Hackable by China
China able to hack into OPM through NSA installed
backdoors
Watson 6/17 [Patrick, strategic adviser for active investment managers,
Cold War veteran, U.S. Army intelligence officer, trained paratrooper and
expert in Soviet tactics, NSA Failures Expose Yet More Secrets, Endanger
Millions, Newsmax.com,
http://www.newsmax.com/Finance/PatrickWatson/china-hack-NSASecrets/2015/06/17/id/650980/#ixzz3e14LiEel //NA]
Not even halfway through the Year of the Hack, the U.S. government
looks every bit as vulnerable as the private sector it wants to help. The
latest news: As many as 14 million current and former government
employees had their private personnel files exposed to foreign
hackers, reportedly Chinese. Worse, the same hackers may have also
taken the extremely personal security clearance files of military and
intelligence personnel. The consequences of this loss are staggering.
Somebody out there now has all the information they need to expose
and/or blackmail top U.S. intelligence operatives. This is potentially
far worse than the data National Security Agency contractor Edward
Snowden released to journalists two years ago. I pointed out back then
that NSA director Keith Alexander was closing the barn door only after the
cows had escaped. Snowden could not have taken the data if Alexander had
enforced common-sense precautions inside the NSA. General Alexander is
retired now, making big bucks as a consultant to banks and big
corporations. Against all evidence, his clients apparently think Alexander is
some kind of cybersecurity pro. If the fact that Alexander gave Snowden the
keys to the kingdom isnt enough to disprove that claim, the latest
government hack ought to do it. NSA isnt just a spy agency. Its
statutory mission includes keeping all the governments electronic
information secure. We now know that it failed miserably under Keith
Alexanders watch, and again under his successor Admiral Mike Rogers. Of
course, the Office of Personnel Management (OPM), from which
someone stole millions of employee files, is not blameless. It
appears to have been remarkably careless by, for example, not
encrypting Social Security numbers. Thats exactly the kind of mistake
NSA is supposed to help other agencies avoid. Oops. Encrypting the
records might not have helped, given that NSA has intentionally
baked back door weaknesses into many security protocols. Any
number of Snowden-like individuals could have shared the keys with
China and not informed the media. Nevertheless, it would have been
better than nothing. So, to sum up: China (or somebody) has
confidential files on millions of government workers, retirees,
service members and intelligence agents, who are all subject to
identity theft and blackmail.
to Maloof, with VPN providers routing their communications via countries such as Mexico especially open to
being spied on. Any U.S. company that deals with a Mexican company or any foreign company in a country
where Huawei has installed network equipment is potentially entirely compromised, Maloof quoted a
threat research, said evidence pointed to a nation-state having carried out the attacks but declined to
among targeted countries and the hack of the International Olympic Committeee shortly before the 2008
games in Beijing. This isn't the first we've seen, Lewis told the Washington Post.
Prokupecz, Shimon, [CNN Law Enforcement reporter and producer], U.S. data
hack may be 4 times larger than the government originally said,
http://www.cnn.com/2015/06/22/politics/opm-hack-18-milliion/)
FBI Director James Comey gave the 18 million estimate in a closed-door briefing to Senators in recent
weeks, using the OPM's own internal data, according to U.S. officials briefed on the matter. Those affected
could include people who applied for government jobs, but never actually ended up working for the
government. Can Washington keep your data secure? The same hackers who accessed OPM's data are
believed to have last year breached an OPM contractor, KeyPoint Government Solutions, U.S. officials said.
When the OPM breach was discovered in April, investigators found that KeyPoint security credentials were
used to breach the OPM system. Some investigators believe that after that intrusion last year, OPM officials
should have blocked all access from KeyPoint, and that doing so could have prevented more serious
damage. But a person briefed on the investigation says OPM officials don't believe such a move would
have made a difference. That's because the OPM breach is believed to have pre-dated the KeyPoint breach.
Hackers are also believed to have built their own backdoor access to
the OPM system, armed with high-level system administrator access to the
system. One official called it the "keys to the kingdom." KeyPoint did not respond to CNN's request for
comment. U.S. investigators believe the Chinese government is behind
the cyber intrusion, which are considered the worst ever against the
U.S. government. Why would China hack the U.S. government? OPM has so far stuck by the 4.2
million estimate, which is the number of people so far notified that their information was compromised. An
agency spokesman said the investigation is ongoing and that it hasn't verified the larger number.
The Internet
NSA has hegemony on decryption, which undermines the
very fabric of the internet
Heyes 13 [J.D.: Ashford University Political Science, 2009 2012 with a
experts have pointed it out: The agencies are attacking the essence of the Internet itself, as well as the
network security and privacy," he said. "For the past decade, NSA has lead [sic] an aggressive, multipronged effort to break widely used internet encryption technologies," a 2010 GCHQ document stated.
"Vast amounts of encrypted internet data which have up till now been discarded are now exploitable." The
paper and others have also reported previously that Microsoft has cooperated with NSA to circumvent
encryption in its Outlook mail program, saying it was obliged to comply with "existing or future lawful
demands" when designing its products.
online," said Bruce Schneier, an encryption specialist and fellow at Harvard's Berkman Center for Internet
and Society. "By
deliberately undermining online security in a shortsighted effort to eavesdrop, the NSA is undermining the very fabric
of the internet." Classified briefings between the agencies celebrate their success at "defeating
network security and privacy".
Cyberwar 2025
A major cyber attack is coming before 2025 causes
nuclear-level death and crashes the economy deterrence
fails in cyberspace (1AC)
Tucker 14
Patrick, technology editor for Defense One, Major Cyber Attack Will Cause Significant Loss of Life By 2025,
Experts Predict, 10/29/14, http://www.defenseone.com/threats/2014/10/cyber-attack-will-causesignificant-loss-life-2025-experts-predict/97688/ SJE
A major cyber attack will happen between now and 2025 and it will
be large enough to cause significant loss of life or property
losses/damage/theft at the levels of tens of billions of dollars , according
to more than 60 percent of technology experts
and American Life Project. But other experts interviewed for the project Digital Life in 2015, released
Wednesday, said the current preoccupation with cyber conflict is product of software merchants looking to
hype public anxiety against an eternally unconquerable threat. Its the old phantom of the cyber Pearl
Harbor, a concept commonly credited to former Defense Secretary Leon Panetta but that is actually as old
as the world wide web. It dates back to security expert Winn Schwartaus testimony to Congress in 1991,
when he warned of an electronic Pearl Harbor and said it was waiting to occur. More than two decades
later, were still waiting. The Pew report offers, if nothing else, an opportunity to look at how the cyber
A key concern
for many of the experts Pew interviewed is infrastructure, where very real
landscape has changed and how it will continue to evolve between now and 2025.
cyber vulnerabilities do exist and are growing. Stewart Baker, former general
counsel for the National Security Agency and a partner at Washington, D.C.-based law firm Steptoe &
that came direct from the manufacturer. As writers Indu B. Singh and Joseph N. Pelton pointed out in The
were hopeful that the Obama administrations Cybersecurity Framework, released earlier this year, would force companies that preside over
infrastructure components to take these precautions, but many in the technology community were disappointed that the guidelines did not
include hard mandates for major operators to fix potential security flaws. But some political leaders say that the response from industry to
cyber threats has outpaced that of government. Just ask Rep. Mike Rogers, R-Mich., chairman of the House Intelligence Committee, who said
that private businesses were increasingly asking government to defend them from cyber attacks from other nation state actors, and even
launch first strikes against those nations. Most of the offensive talk is from the private sector, they say weve had enough, Rogers said at a
recent Washington Post cyber security summit. Its worth noting that the Pew survey was made public one day after the group FireEye released
a major report stating that a Russian-government affiliated group was responsible for hacking into the servers of a firm keeping classified U.S.
military data. In his remarks at the summit, Rogers singled out Russia as a prime target for future, U.S.-lead cyber operations. But
This will expand to include others such as self-driving cars, unmanned aerial vehicles,
and building infrastructure, said Mark Nall, a program manager for NASA.
Hacking Nukes
Hacking into Nuclear Technology can Lead To Nuclear War
AP 15 May 8, 2015 Komado Are American nukes wide open to hackers?
http://www.komando.com/happening-now/307576/are-american-nukes-wide-open-tohackers/all
Retired Gen. James Cartwright, who ran Strategic Command from 2004 to 2007 followed
by a stint as the vice chairman of the Joint Chiefs of Staff , is making the case that
we need to "de-alert" the U.S., and Russian, nuclear arsenal. In other
words, instead of being ready to launch in minutes, a launch would take 24 to 72 hours
to go through. This would give both sides more time to look at a
developing situation before responding. That's especially helpful because he
believes that the control systems around the nuclear arsenals are
vulnerable to hackers. To be clear, the actual nuclear launch system is fairly secure, since it
runs off very old technology, including floppy disks. However, hackers might trick the
systems that warn about incoming threats, or trick the nuclear
missile crews into thinking they were sent legitimate launch codes.
No one in the government is really forthcoming about how likely this is, and that's often a worry. Two
years ago, the Pentagon issued a report saying that most of the
systems hadn't been checked to see how they'd handle a
cyberattack. Even if hackers aren't involved, there's a worry that a
lot of the hardware, especially on the Russian side , is getting old and probably
unreliable. If it starts breaking down it, there is a chance that it could
trigger a false alert that leads to something terrible. This exact scenario almost
happened a few times during the Cold War, with one of the most
recent incidents happening on September 26, 1983. Lieutenant Colonel
Stanislav Petrov of the Soviet Air Defense Forces was monitoring the warning system when it said an
American ICBM was incoming. Instead of immediately launching a
retaliatory nuclear attack, Col. Petrov decided to investigate further
as the warning system was new and a bit buggy. Plus, he was sure that an
American first strike would involved a lot more missiles. It did turn out to be a computer
error, as was the warning later that same day about four incoming American missiles . If he had
reacted without hesitation, a nuclear holocaust could have resulted.
So, what do you think? Should the U.S and Russia "de-alert" their nuclear arsenals? Do you think it's even
possible?
Nukes
Cyberattack Causes Nuclear War
Gady 15 Franz-Stefan Gady May 04, 2015 The Diplomat Could Cyber Attacks Lead to
Nuclear War? http://thediplomat.com/2015/05/could-cyber-attacks-lead-to-nuclear-war/
cyberattack causing an
accidental nuclear war between the United States and Russia,
retired U.S. Gen. James Cartwright recently stated in an Associated Press interview.
Short fuses on U.S. and Russian strategic forces have particularly
increased the risk of accidental nuclear war, according to Cartwright ,
while the sophistication of the cyberthreat [to nuclear weapons] has increased
exponentially. One-half of their [U.S. and Russian] strategic arsenals are continuously maintained on high
De-alerting nuclear arsenals could help reduce the likelihood of a
alert. Hundreds of missiles carrying nearly 1,800 warheads are ready to fly at a moments notice, a policy report
contingency plan timetables from calling for missiles to be launched within 3 to 5 minutes to 24 to 72 hours.
Reducing the lead time to prepare nuclear missiles for launch would not
diminish the deterrent value of the weapons, Cartwright, who headed Strategic Command from 2004 to 2007 and was
vice chairman of the Joint Chiefs of Staff before retiring in 2011, emphasized. However, the Obama White House has so far
rejected the idea, particularly due to the recent deterioration of U.S.-Russia relations. Also, Robert Scher, Assistant
Secretary of Defense for Strategy, Plans, and Capabilities, testified in Congress this month arguing it did not make any
great sense to de-alert forces because nuclear missiles needed to be ready and effective and able to prosecute the
mission at any point in time
War Generic
Cyber war would be costly
Strickland 8 [Jonathan, senior writer for the electronics and computer
channels, Is cyberwar coming?, HowStuffWorks.com,
http://computer.howstuffworks.com/cyberwar.htm //NA]
Listen up, soldier! Not every battle takes place over rugged terrain, on the
open sea or even in the air. These days, you'll find some of the fiercest
fighting going on between computer networks. Rather than using bullets and
bombs, the warriors in these confrontations use bits and bytes. But don't think that digital weaponry
computer networks. Even if the network administrators segregate their computers from the rest of the
Internet, they could be vulnerable to a cyber attack. Cyber warfare is a serious concern.
Unlike traditional warfare, which requires massive amounts of resources such as personnel, weapons and
themselves eclipsed by their Internet-based substitute solutions. Even technologies historically unrelated
to networking (like medical instruments) are finding themselves part of the Internet, whether as a way to
simply update firmware, or using the network to keep track of telemetry and develop advanced analytics.
Cyber Terror
Terrorists are using viruses to open US installed back
doors and hack the systems. This allows them to be able
to attack the US power grid system
Kredo 6/24 [Adam, senior writer for the Washington Free Beacon. Formerly
an award-winning political reporter for the Washington Jewish, The
Washington Free Beacon, U.S. Power Grid Being Hit With Increasing Hacking
Attacks, Government Warns, http://freebeacon.com/national-security/u-spower-grid-being-hit-with-increasing-hacking-attacks-government-warns/ //NA
Major attacks on the U.S. power grid system are increasing, with
hackers stepping up efforts to penetrate critical systems and to
implant malicious software that could compromise the power grid
and result in a nationwide crisis, according to a government report.
While experts have long signaled that the U.S. power grid and
related systems are vulnerable to physical attacks by terrorists and
other individuals, the U.S. government is now warning that sensitive
computer systems that maintain the grid are increasingly being
attacked, according to a Congressional Research Service (CRS) report that was not made public until
the Federation of American Scientists (FAS) disclosed it this month. The report warns that hackers
potentially affiliated with terrorist groups or rogue nations have the
ability to insert harmful malware into the internal systems governing
the U.S. grid, which increasingly are being hooked into the Internet. These types of computer
viruses are able to comb internal systems for private information in a clandestine manner; they can also be
used to wrest control of certain computers away from their owners. In recent years, new threats have
materialized as new vulnerabilities have come to light, and a number of major concerns have emerged
about the resilience and security of the nations electric power system, the report says. In particular, the
cyber security of the electricity grid has been a focus of recent efforts to protect the integrity of the
electric power system. The threat is compounded by the revelation that many power companies
are only living up to the minimum standards set for cyber security by the U.S. government. Although
malware intrusions may not have resulted in a significant disruption of grid operations so far, they still
have been possible even with mandatory standards in place, the report states. Cyber attacks on the U.S.
grid and power companies are becoming more prevalent. Incidents of reported cyber
intrusions and attacks aimed at undermining the U.S. grid appear to be increasing, according to the
report. While parts of the electric power subsector have mandatory and enforceable cyber and physical
security standards, some have argued that minimum, consensus-based standards are not enough to
government authorities remain concerned about attacks on critical infrastructure. The increasing
frequency of cyber intrusions on industrial control systems of critical infrastructure is a trend of concern to
the electric utility industry, the report warns The National Security Agency reported that it has seen
intrusions into [industrial control] systems by entities with the apparent technical capability to take down
control systems that operate U.S. power grids, water systems and other critical infrastructure. The report
documents a number of recent attacks on U.S. power grid computer systems. In October 2014, for
instance, the Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) revealed that
several industrial control systems has been infected by a virus capable of gathering information about
can destroy hard disks, and believe that the attackers will activate
the module once they are discovered in order to hide their
presence. Another virus named HAVEX has been used to open socalled back doors into computer systems.
The Internet provides an easy, low-cost and low-risk means for nonstate
actors or terrorist groups to amplify the impact of any attack. But a large-scale
cyberattack on critical infrastructure could prove devastating. Whether
its called Cyber 9/11 or Cyber Pearl Harbor, senior U.S. officials, including the president, have warned
the transmission of 11 channels and took over the stations website and social-media accounts for 24
hours. A different type of cyberattack occurred in 2010, when Russian-affiliated hackers hit Estonia. The
attack consisted partly of ping attacks, which overwhelmed servers. There were botnet attacks, which
harnessed zombie computers from around the world to flood designated Internet addresses with useless,
network-clogging data as part of a distributed denial-of-service (DDoS) attack. Hackers also infiltrated
specific individual websites to delete content and post their own messages. Although relatively
Xtn
Cyber attacks lead to extinction
Wilson 13 Richard Wilson (presented to: Permanent Monitoring Panel on
Mitigation of Terrorist Actions at and Seminar on Planetary Emergencies of the World
Federation of Science) August 24, 2013. The Risks to Human Extinction
http://users.physics.harvard.edu/~wilson/publications/pp936.pdf
CYBERTERRORISM is in the news and has been discussed at Erice but never, to my
mind, with the openness and clarit y that the subject demands. Now we live in an interconnected
world and it is possib le to affect other computers. It seems that the only hope is to have a
computer system which NEVER connects with anyone else, and whose programs a re nev er updated
from outside. In addition, one must be sure that no seed was implanted when the equipment was
made which can be accessed from outside. This is a tall order. As we now stand, it seems that all
links to the outside world can be and, in most cases, are recorded, can be used for
sabotage, invasions of privacy and so on. To shut down a nations el ectricity grid seems trivial. My
preferred method of ten years ago was for each of a group of terrorists to take pot shots at the insulators
at isolated transmission line towers in the cross country transmission l ines at exactly the same time.
This is now out of date!
nations electricity!
cut off a
major disruption including major loss of life . The question remains Can it
destroy mankind and make it extinct? I cannot see a direct connection. Once electricity
networks fail, (and arguments between nations on who is responsible for the failures increase )
secondary effects leading to extinction by other means might well
increase (i.e., release of nuclear bombs or dangerous pathogens)
Econ
Cyberhacking destroys the economy
Dodrill 14 (Tara Dodrill, is the author of Power Grid Down: How To Prepare,
Survive & Thrive After The Lights Go Out, The Prepared Family website
creator, and a writer for Off The Grid News, Prepper and Shooter Magazine,
Survival Life, Survival Based, and the host of the Common Sense Prepping
radio show on the Prepper Broadcasting Network. Dodrill is also the Social
Media Manager for Prepper and Shooter Magazine and the Lights Out Saga
movie series. Cyber Hackers Could Cause An Economic Collapse, President
Obama Warnshttp://www.survivalbased.com/survival-blog/5918/cyberhackers-could-cause-an-economic-collapse-president-obama-warns/)
President Barack Obama issued a doomsday warning during a recent fundraising
stop in New York City. The president told a room full of wealthy celebrities and Wall Street types about
a looming disaster scenario which could drastically and negatively impact
America in the near future. During the New York City fundraising stop President Obama told wealthy
business leaders and celebrities that the White House is bracing for a possible doomsday scenario if
cyber hackers are able to gain access to business and government
computer systems. Cyber threats to the United States economy were
apparently in the forefront of the presidents mind during the upscale fundraising
shindig in NYC. A cyber-attack of untold proportion could cripple the economy and
alter life as we know if in America, according to attendees at President Obamas fundraising event.
The U.S. power grid has reportedly been under a constant state of attack by
English-speaking Chinese computer experts nestled in a rather unimposing building in Shanghai. The
alleged cyber-attacks by the computer hackers pose as significant a threat to America
as the two million soldiers in the Chinese army ever could, if the cyber warfare studies by the Mandiant
security firm are accurate. One of the top targets of the Peoples Liberation Army is allegedly Lockheed
Martin, the largest defense contractor in the United States. Government officials have acknowledged the
distinct similarities between the F-35 fighter jet and a version of the plane manufactured in China.
same time. The Peoples Liberation Army would not have to step foot on American soil or fire a single shot,
American infrastructure
was noted as some of the most troubling targets of Chinese hackers in an ABC
in order to win a virtual and silent war against the United States.
News report about Chinese cyber hackers. Twenty-something cyber theft experts are reportedly honing
their skills by hacking into business and governmental entities in order to steal either identities or funds.
The Chinese hackers are reportedly targeting the American water supply,
pipelines and the power grid. What purpose other than the wreaking havoc, would hackers
have for attempting to cripple our infrastructure? Analyst Richard Clarke noted during the ABC report that
the only reason someone would want to get into the control system for the power grid would be to cause
China, taking away the ability to generate funds defies common sense. But, punishing an entity that
appears to never be able to make good on a debt is a tried and true loan shark tactic. Chinese officials
likely discuss our struggling economy as much as we do ourselves. Former Department of Homeland
Security Secretary Janet Napolitano stated that a cyber-attack was a matter of when not if during a
press gathering shortly after leaving office. The power grid is our most antiquated and vulnerable piece of
infrastructure. The entire system is teetering on the brink of failure. The grid
is often called Americas glass jaw because of the nations reliability on it and also due to its many
weaknesses, such as its vulnerability to a domino effect because it is interconnected. There are about
5,800 power plants and 450,000 miles of high-voltage transmission lines in the US, many of them decades
old and a large portion of them connected to one another. Janet Napolitano also uttered this warning about
a major
cyber event that will have a serious effect on our lives, our economy and the
the threat cyber attacks pose to our aging power grid: Our country will, at some point, face
everyday functioning of our society. While we have built systems, protections and a framework to identify
attacks and intrusions, share information with the private sector and across government, and develop
plans and capabilities to mitigate the damage, more must be done, and quickly. After the storm passed
[Hurricane Sandy] FEMA sent teams into impacted areas to set up Disaster Registration Centers and
conduct damage assessments. For the first time, we activated the DHS Surge Capacity Force, an allvolunteer corps that we created in 2011 to leverage the shared talents and experience and capabilities of
employees from across the department. Cyber hacking could prove just as detrimental to the power grid
as the sniper attack in California and the havoc the Tennessee gunman likely intended to unleash during
separate attacks in 2013. On February 11, 2014, cyber hackers exploited the weaknesses of the Network
Time Protocol system crafted to sync computer and laptop clocks. The cyber terrorists were able to send a
massive amount of data to servers which could introduce malicious attack on online networks.
Cloudfare CEO Matthew Prince said on Twitter, Someones got a big, new cannon and the attack is the
start of ugly things to come. An unidentified attendee at the Democratic fundraiser said, The
president is worried that cyber criminals could literally wipe out the
identities of millions of people through some breach of government
systems and that could lead to massive chaos. He said 15 years ago, cyber
terrorism wasnt even on the radar screen, but that it will be one of the biggest concerns for whoever is
president after him. During a meeting while with New York City former Intrepid Museum President Bill
White, President Obama allegedly said that it would take Bonnie and Clyde a thousand years to do what
a trio of
hackers could steal $100 million in a fairly short time and could
possibly take down the banking system one day. The presidents comments
three people in a room with a server can now do. The president also allegedly said that such
during the NYC fundraiser nearly coincided with JPMorgan disclosing a significant cyber-attack had
occurred and the culprits were able to obtain the addresses and names of 76 million customer households.
Are you prepared for a power grid down scenario? Could a cyber attack cause an
economic collapse in America?
US Loses Cyberwar
America is set to lose cyberwar
Hoover 10 [J. Nicholas, Senior Editor, InformationWeek Government,
Former Intelligence Chief: U.S. Would Lose Cyberwar, InformationWeek,
http://www.darkreading.com/risk-management/former-intelligence-chief-us-would-lose-cyberwar/d/did/1087106?
//NA
The risk of a catastrophic cyberattack is approaching the gravity of
the nuclear risk, according to the Bush administration's top spy. "The cyber risk has become so
important that, in my view, it rivals nuclear weapons in terms of seriousness,"
Michael McConnell, former director of national intelligence, said
Tuesday at a hearing of the Senate committee on commerce, transportation, and technology.
McConnell warned in striking terms that the United States was not
prepared either for cyber warfare or cyber criminals. "If the nation
went to war today in a cyberwar, we would lose," he said. "We're the
most vulnerable, we're the most connected, and we have the most to
lose."
Foundation, The Daily Caller, The True Impact Of The Chinese OPM Hack Is
Only Just Now Being Realized, http://dailycaller.com/2015/06/11/the-trueimpact-of-the-chinese-opm-hack-is-only-just-now-beingrealized/#ixzz3duL9YjJR //NA]
The recent pillaging of the Office of Personnel Management by
Chinese hackers means that Beijing now likely has access to a long
list of ethnic Chinese with close ties to top-level government
officials. Intelligence officials have surmised that the Chinese are
trying to construct careful and detailed schematics of how the U.S.
government operates by drawing from the stolen records of 4 million
current and former federal employees, The New York Times reports. The
majority of the data was not encrypted, a fact which shocked
investigators. While China hasnt publicly been named as the culprit, classified hearings reveal that
the attribution is not controversial, despite China protesting that any allegations of involvement are
China can be traced back to ethnic Chinese. Beijing, unlike other intelligence agencies, relies almost
exclusively on its own people to conduct operations. Of the estimated 50 million Chinese living outside
China, 4 million reside in the United States. Aside from the risk stemming from ethnic Chinese, Schindler
are a Chinese person who didnt report your contacts or relationships with an American, you may have a
problem, James Lewis, a cyber-expert at the Center for Strategic and International Studies, told The New
York Times. The State Department is well aware of the dangers. In 2010, upon request from the State
Department, The New York Times redacted the names of any Chinese citizens mentioned in cables
released by WikiLeaks. The GOP has taken the breach as an opportunity to slam President Barack Obama
for his insufficient handling of the epidemic of Chinese espionage. In particular, Mike Huckabee argued
Monday that in response, the U.S. should hack the Chinese government, in order to humiliate Chinese
families for political corruption, or wipe-out a few critical Chinese computer systems. Sen. Lindsey
Graham also bemoaned the inability of the U.S. to mount proper defenses against foreign intrusion. I fear
the massive data breach at the Office of Personnel Management may turn out to be yet another example
of America being walked over by rivals and adversaries, Graham told Politico. Whats clear is that past
attempts to crack down on Chinese cyberespionage havent been successful.
McConnell also said that during the final years of the Bush
administration, the Chinese government employed a jaw-dropping
100,000 hackers dedicated solely to breaking into computers . By
speech,
comparison, he said the United States had that many spies -- total. McConnell listed what the Chinese are
stealing: "planning information for advanced concepts, windmills, automobiles, airplanes, space ships,
manufacturing design, software." "If they can take that, before we can take it to market - for free - and it's
unchecked for 15, 20 years, I would say
that these are not isolated incidents. "We see supporting evidence that these attacks are
related to the group that launched the attack on Anthem [the large health insurer breached
earlier this year]," said Tom Parker, chief technology officer of the information security
company FusionX. "And there was a breach at United Airlines that's potentially correlated as
well." When pulled together into an analytical database, the information could essentially become a
LinkedIn for spies, providing a foreign intelligence organization with a way to find individuals
with the right job titles, the right connections, and traits that might make them more
susceptible to recruitment or compromise . Preliminary evidence points to a group dubbed by Crowdstrike as "Deep
Panda," a Chinese cyber-espionage group. In the past, the group has used Windows PowerShell attacks to implant remote access tools (RATs)
on Windows desktops and servers. It is this malware that investigators are believed to have discovered on OPM's network and in the
Department of the Interior's data center.
is to migrate away from proprietary technologies and utilize open source options wherever possible, with
the highest priority being to migrate infrastructure services to open source equivalents. There are also
excellent open source alternatives for file services, DNS, DHCP, certificate management, Web services,
routing, IDS/IPS, and firewalls. Firewalls should probably be addressed first from this list as they perform
one of the most critical roles in the network. They are also invaluable for monitoring and identifying any
unusual network traffic that could be an indication of backdoors installed in other infrastructure.
their-techniques.html
FireEye detected
new variants of the malware during the investigation on a cyber
attack against an organization involved in shaping economic policy,
the hackers behind the attack against the NYT deployed updated
versions of the Backdoor.APT.Aumlib and Backdoor.APT.Ixeshe
malware families in May. Security researchers believe that Chinese
hackers are involved in a large-scale cyber espionage operation that
hit also US media, the malicious code used are newer versions of
Aumlib and Ixeshe malware. The technical threat intelligence team
discovered that the actual version of Aumlib encodes certain HTTP
communications, the malware is well known by security experts that
detected it in various targeted attacks in the past. Aumlib has been adopted in
details on the data breach suspended their activities early 2013. Security firm
targeted attacks for years, the previous variants of this malware family generated the following POST
request: POST /bbs/info.asp HTTP/1.1 Sending data via this POST request in clear text with the following
structure: <VICTIM BIOS NAME>|<CAMPAIGN ID>|<VICTIM EXTERNAL IP>|<VICTIM OS>| Recently FireEye
experts downloaded a new variant from the following URL: status[.]acmetoy[.]com/DD/myScript.js or
status[.]acmetoy[.]com/DD/css.css Chinese hackers Aumlib malware traffic From the above traffic is
possible to note the improvement operated by hackers: The POST URI is changed to /bbs/search.asp (as
mentioned, earlier Aumlib variants used a POST URI of /bbs/info.asp.) The POST body is now encoded.
Taiwan FireEye
team noted that the sample has totally different traffic pattern
sufficient to evade classic network traffic signature based defense
systems.. The Base64-encoded data still contains information
including the victims hostname and IP address but also a mark or
campaign tag/code that the threat actors use to keep track of
their various attacks. The mark for this particular attack was [ll65].
A curious particular related to both families of malware detected is
[EW]S[Numbers].jsp?[Base64] Analyzing a recent sample that targeted entities in
that they werent updated at least in last 12 months, Aumlib had not
changed since at least May 2011 meanwhile Ixeshe had not been
improved since at least December 2011. The discovery of FireEye
expert is considerable very important because it highlights a new
change in the techniques, tactics, or procedures (TTPs) of Chinese
hackers, this means the group is continuing the cyber espionage
campaign discovered months ago. The most successful threat
actors evolve slowly and deliberately. So when they do change, pay
close attention. Knowing how attackers strategy is shifting is crucial
to detecting and defending against todays advanced threats. But
knowing the why is equally important.
Impacts Grids
Generic
A cyberwar could wipe out the grid this would cause
chaos, billions in economic loss, and make way for a
terrorist attack
Pizzi 14 [Michael, Digital News Producer, Cyberwarfare greater threat to US
than terrorism, say security experts, Aljazeera America,
http://america.aljazeera.com/articles/2014/1/7/defense-leaderssaycyberwarfaregreatestthreattous.html //NA]
Cyberwarfare is the greatest threat facing the United States
outstripping even terrorism according to defense, military, and
national security leaders in a Defense News poll, a sign that hawkish warnings
about an imminent cyber Pearl Harbor have been absorbed in defense circles. That warning, issued by
then Secretary of Defense Leon Panetta in Oct. 2012, struck many as a fear-mongering plug for defense
and intelligence funding at a moment when many in the United States, including 32 percent of those polled
by the same Defense News Leadership Poll, believe the government spends too much on defense. But 45
2010, the Pentagon created the U.S. Cyber Command, under the helm of NSA director Gen. Keith
Alexander, to better prepare the U.S. for a potential attack on digital infrastructure. Later that year, U.S.
Deputy Secretary of Defense William Lynn said cyberspace had become just
as critical to
military operations as land, sea, air, and space. The nebulous term
"cyberwarfare" refers to full-on conflict between countries or terror
groups featuring digital attacks on computer systems. But its more
devastating, violent impacts are considered by many analysts to be largely theoretical at this point.
Looming fears of cyber attacks on pacemakers of world leaders, for instance, have inspired movie plots
and television shows but are not known to have occurred, noted Morgan Marquis-Boire, a security
researcher at the University of Toronto's Citizen Lab. At the moment, this is all set in the realm of science
fiction." Marquis-Boire said the most kinetic cyberattack to date was probably the Stuxnet worm that
attacked Irans Natanz nuclear enrichment facility in 2010, stoking fears of a cyber-triggered nuclear terror
North American Electric Reliability Corporation reported in 2009 that the U.S. grid remains susceptible to
infiltration despite substantial government investment in securing it. We
do have a security
problem whereby life is rushing towards the Internet faster than
were developing Internet security, said Marquis-Boire. Many of these
systems werent built in a cyberwarfare age. We werent worried
about cyberwarfare when we built the national power grid, and its
difficult to retrofit security. The impact of such an attack could be
devastating. Massive power outages could not only unleash chaos,
they could also distract from a simultaneous military or terrorist
attack. That latter concern that cyber war tactics might blur with
traditional terrorism were underlined in June 2012, when information security expert Eugene
Kaspersky announced his labs discovery of the Flame virus that targeted computers in Iran. Its not cyber
as we know it. A few months later, Panetta compounded fears when he warned of a new,
profound sense of vulnerability in the U.S. due to the prospect of cyberwarfare. But with the exception of
several high-profile hacking incidents of websites, the American public has yet to experience any sort of
large-scale attack on U.S. infrastructure, let alone American lives. Despite the improbability of a full-on
cyber conflict, analysts say they are not surprised the nebulous threat posed by cyberwarfare has struck
fear in American hearts. "The
Blackouts
Cyberattacks cause blackouts that shut down critical
infrastructure
Conte 15
Andrew, Pittsburgh Tribune-Review, Experts: Infrastructure Is a 'Legitimate Target' in Battle for Cyber
Supremacy, 2/17/15, http://www.govtech.com/security/GT-Experts-Infrastructure-Is-a-Legitimate-Target-inBattle-for-Cyber-Supremacy.html SJE
and its enemies work daily to build, arm and aim online computer attacks that can be initiated at the first
provocation of war. Until then, the militaries disrupt, spy, steal and cause havoc often with the intention
of sending a message. No one can say how many successful breaches go undetected, but attackers do not
States' offensive infrastructure declined to talk about it, but expert observers say the country leads the
world with capabilities such as the Stuxnet attack on Iran's uranium-enrichment facilities in 2010. As
Russia's military gathered along Ukraine's border last year, security company FireEye of Milpitas, Calif.,
detected bad software erupting from both countries. The data does not reveal specific intent but suggests
strongly that computer network operations are being used as one way to gain competitive advantage in
the conflict, said the company, which has investigated hacks at places such as Target, Sony and Anthem.
In July, when Israel initiated a military campaign in Gaza, malware traffic there jumped dramatically. Before
a country's leaders even consider going to war, they must lay the groundwork for a computer attack, said
Kenneth Geers, a former U.S. representative to NATO's cooperative cyber defense center in Estonia, who
conducted the FireEye research. Because
Infrastructure
NSA decryption threatens cybersecurity: exploits the
internet, threatens global infrastructure, and ensures
vulnerabilities in software.
Simonite 12 [Tom, MIT Technology Reviews San Francisco bureau chief, MIT
Technology News, Why the United States Is So Afraid of Huawei,
http://www.technologyreview.com/news/429542/why-the-united-states-is-soafraid-of-huawei/ //NA]
The threat may be theoreticalbut compromised telecom equipment
could quickly cripple a nations civilian and military infrastructure. By
Tom Simonite on October 9, 2012. A Congressional report yesterday warned that Chinese
telecommunications companies Huawei and ZTE pose a threat to
U.S. national security interests and could sell companies equipment
rigged to give the Chinese government control over American
communications networks. The report (PDF), issued by the House of Representatives
Intelligence Committee, cites no direct evidence that either Huawei or ZTE has acted to compromise the
security of any of its clients. However, experts say the possibility is real that surveillance technology could
be built into the routers and switches that underlie the Internet and wireless communications systems
something nefarious, says Schneider. A trigger could be built either into the software that
comes installed in switches and network hardware or into the hardware itself, in which case it would be
that buy the kind of equipment sold by Huawei lack the resources to exhaustively check every aspect of a
devices design or software for potential back doors. The use of strong end-to-end encryption could help
prevent eavesdropping, but nontechnical defensessuch as buying from trusted suppliers or sourcing
equipment from multiple vendors to reduce the consequences if one piece of equipment proves
thats working on ways for companies to protect against cyber attacks and identify the perpetrators.
However, Huaweis prices are so low that any company that wants to remain competitive has to bear its
products in mind. Huawei is pretty much on par with the western manufacturers from a feature-set
perspective, but much cheaper, Alperovitch says. This weeks report reiterates that trade-off, but it does
not lay down a hard and fast rule against U.S. companies doing business with Huawei. Alperovitch says
China is known to be interested in carrying out electronic espionage against other governments and
The
Chinese are the most pervasive actors in terms of cyber espionage ,
he says. This track record, together with the fact that Huawei has
refused to explain its relationship with the Chinese government or
the role of a Communist Party committee inside the company, means
that its fair to wonder if Huaweis products will remain safe , Alperovitch
says. The question is, if the Chinese government comes to Huawei and
says would you put this code in your router, would Huawei do it ? he
says. In a statement released yesterday, Huawei said the intelligence
committee report failed to provide clear information or evidence to
substantiate the legitimacy of the Committees concerns , and also said
companies, and is a major backer of espionage software spread by e-mail and the Web.
that committee members had been given access to the companys research and manufacturing facilities,
as well as extensive documentation. Company executives have previously said in testimony to the
committee that Huawei makes about 70 percent of its $32 billion in annual revenue outside China,
suggesting that it has little incentive to anger foreign governments. Both Schneider and Alperovitch note
that although this weeks report singles out Huawei, the globalization of supply chains raises wider security
concerns about products from many technology companies. Even if equipment is made in the U.S., for
example, it almost certainly contains components and chips made by other companies in other countries.
There is a broader concern about supply chain, says Alperovitch. Who knows whats being put into your
product at the factory?
China Scenario
Grid is vulnerable now attacks shut down critical
infrastructure outweighs terrorism
Lenzer 14 National Editor and Senior Editor at Forbes Magazine, New York Bureau Chief of The
Boston Globe and Wall Street correspondent of The Economist.
(Robert Lenzner, 11-28-2014, "Chinese Cyber Attack Could Shut Down U.S. Electric Power Grid,"
http://www.forbes.com/sites/robertlenzner/2014/11/28/chinese-cyber-attack-could-shut-down-u-s-electricpower-grid/2/, Date Accessed: 6-28-2015) //NM
Welcome to the increasingly dangerous world of cyber-warfare. The latest nightmare; a western
intelligence agency of unknown origin (according to the Financial Times of London) is infecting the
internet service providers and sovereign telecoms operations of Russia, Saudi Arabia, Iran, Mexico
and Ireland. To what end is not known, though the cyber security company Symantec calls the malware
extremely sophisticated. Then, there are the criminal elements, who have been hacking into the credit
card details of JP Morgan Chase (76 million customers names), and retailers like Home Depot, Target and
EBay. Or the attempts going on by neer-do-well nations to break down the control of energy plants and
factories, at times by criminal elements that act like stalking horses for sovereign nations up to no good. I
wrote about this phenomenon a decade ago for Forbes magazine (The Next Threat) and raised the
problem of private industry, especially public utilities, needing to invest major capital into establishing
cyber defenses against the very real possibility that our enemies could break into the internet
connections of urban public utilities and cause chaos and massive economic injury by closing
down the publics access to electricity. Threats existed as well against the operations of
infrastructure projects like dams, gas pipelines and transportation systems. A DOD research
facility in New Mexico plainly showed me how the nations public utility system could be penetrated
and closed down via their internet connection. Apparently, we have made little or no progress in the
past decade of defending our artificial light and energy. It appears that our enemies (read competitors)
have made exceedingly greater progress in their sophisticated cyber-warfare techniques than
we have achieved in defending ourselves. Now comes Admiral Michael Rogers, the head of the
National Security Agency and the U.S. Cyber Command, who warned last week that China and perhaps
two other unnamed nations had the ability to launch a cyber attack that could shut down the
entire U.S. power grid and other critical infrastructure. Such a dire possibility should well have
gotten a wider prominent play in the media. Yet Admiral Rogers underscored that software detected in
China could seriously damage our nations economic future by interfering with the electric
utility power companies that the citizens of New York, Dallas, Chicago, Detroit and other urban
centers require as the basic life blood of survival. This possibility is a great deal more dangerous
than stealing 76 million names from JP Morgan Chase. This not a Sci-Fi fantasy being perpetrated as a hoax
on the American public. The NSA head flatly predicted that it is only a matter of the when, not
the if, that we are going to see something traumatic. He admitted NSA was watching multiple
nations invest in this dangerous capability. He called the danger a coming trend, where our
vulnerability will be equivalent to a hole in our software systems that are unseen by the
multinational company, the public utility, the telecom giant, the defense manufacturer, the Department of
Defense. NATO took the threat seriously enough to organize mock cyber-wargame trials in Estonia several
days ago that indicated the western nations are aware of the need to fight on a new battlefield where the
enemy cannot be seen physically. It was the largest digital warfare exercise ever attempted, a
trial run to test dealing with a new non-military threat to global security. Consider the financial
damage to our nation from an attack that could shut down the power systems of major cities.
As Forbes pointed out a decade ago, there was a very great need to spend the money building firewalls
around our infrastructures internet communications network. We are in worse shape today, since NSA
chief Rogers plainly told the congressional intelligence committee last week the Chinese intelligence
services that conduct these attacks have little to fear because we have no practical deterrents
to that threat. The cyber threat is real. America had better wake up to the need to defend the
cogwheels of our economy from the electronic reconnaissance attacking our industrial control systems.
Public opinion needs to be aroused by the media and security officials into a threat that no one can see as
it is invisible. It is not Soviet missiles we fear, but inroads by nation states and criminal elements fronting
for them. Our cyber command capabilities are as crucial as our Special Forces in beating back
ISIS and other Islamic terrorists.
Military Scenario
Grid failure shuts down US military operations
Paul Stockton 11, assistant secretary of defense for Homeland Defense and Americas Security Affairs,
Ten Years After 9/11: Challenges for the Decade to Come, http://www.hsaj.org/?fullarticle=7.2.11
The cyber threat to the DIB is only part of a much larger challenge to
DoD. Potential adversaries are seeking asymmetric means to cripple
our force projection, warfighting, and sustainment capabilities, by
targeting the critical civilian and defense supporting assets (within
the United States and abroad) on which our forces depend. This challenge is
not limited to man-made threats; DoD must also execute its missionessential functions in the face of disruptions caused by naturally
occurring hazards.20 Threats and hazards to DoD mission execution
include incidents such as earthquakes, naturally occurring
pandemics, solar weather events, and industrial accidents, as well
as kinetic or virtual attacks by state or non-state actors. Threats can
also emanate from insiders with ties to foreign counterintelligence
organizations, homegrown terrorists, or individuals with a malicious
agenda. From a DoD perspective, this global convergence of unprecedented threats and hazards, and
vulnerabilities and consequences, is a particularly problematic reality of the post-Cold War world.
The
commercial power supply on which DoD depends exemplifies both the
novel challenges we face and the great progress we are making with other federal agencies and the
most critical issues faced by the department through the use of risk decision packages (RDP).22
private sector. Todays commercial electric power grid has a great deal of resilience against the sort of
situation, the Defense Science Board (DSB) Task Force recommended that DoD take a broad-based
approach, including a focused analysis of critical functions and supporting assets, a more realistic
assessment of electricity outage cause and duration, and an integrated approach to risk management that
includes greater efficiency, renewable resources, distributed generation, and increased reliability. DoD
Mission Assurance is designed to carry forward the DSB recommendations. Yet, for a variety of reasons
DHS is the lead agency for critical infrastructure protection by law and pursuant to Homeland Security
Presidential Directive 7. The Department of Energy (DOE) is the lead agency on energy matters. And within
DoD, energy and energy security roles and responsibilities are distributed and shared, with different
entities managing security against physical, nuclear, and cyber threats; cost and regulatory compliance;
Economy
Grid blackouts are tanking the economy
Clark 12 Staff writer International Business Times
(Meagan Clark, 10-30-2012, "Aging US Power Grid Blacks Out More Than Any Other Developed Nation,"
http://www.ibtimes.com/aging-us-power-grid-blacks-out-more-any-other-developed-nation-1631086, Date
Accessed: 6-28-2015) //NM
The United States endures more blackouts than any other developed nation as the number of
U.S. power outages lasting more than an hour have increased steadily for the past decade ,
according to federal databases at the Department of Energy (DOE) and the North American Electric Reliability Corp.
(NERC). According to federal data, the U.S. electric grid loses power 285 percent more often than in
1984, when the data collection effort on blackouts began. Thats costing American businesses
as much as $150 billion per year, the DOE reported, with weather-related disruptions costing the most per
event. Each one of these [blackouts] costs tens of hundreds of millions, up to billions, of dollars
in economic losses per event, said Massoud Amin, director of the Technological Leadership Institute at the
University of Minnesota, who has analyzed U.S. power grid data since it became available in the '80s. The root
causes" of the increasing number of blackouts are aging infrastructure and a lack of
investment and clear policy to modernize the grid. The situation is worsened by gaps in the policies of
federal and local commissioners. And now there are new risks to the grid from terrorism and climate
change's extreme impacts, Amin said. Also, demand for electricity has grown 10 percent over the
last decade, even though there are more energy-efficient products and buildings than ever . And
as Americans rely increasingly on digital devices, summers get hotter (particularly in the southern regions of the U.S.) and
seasonal demand for air conditioning grows, the problem is only getting worse. While customers in Japan lose
power for an average 4 minutes per year, customers in the American upper Midwest lose power for an average 92
minutes per year, and customers in the upper Northwest lose power for an average 214 minutes per year, according to
Amins analysis. Those estimates exclude extreme events like severe storms and fires, though those have been
increasing the past two decades. We used to have two to five major weather events per year [that
knocked out power], from the 50s to the 80s, Amin said. Between 2008 and 2012, major
outages caused by weather increased to 70 to 130 outages per year. Weather used to account
for about 17 to 21 percent of all root causes . Now, in the last five years, its accounting for 68 to 73
percent of all major outages. The power grid, which could be considered the largest machine on earth, was built
after World War II from designs dating back to Thomas Edison, using technology that primarily dates back to the '60s and
'70s. Its 7,000 power plants are connected by power lines that combined total more than 5 million miles, all managed by
3,300 utilities serving 150 million customers, according to industry group Edison Electric Institute. The whole system is
valued at $876 billion. The utility industry has talked for years about updating its infrastructure into a smart grid, a
makeover that could cost between $338 billion and $476 billion, according to the Electric Power Research Institute. A
smart grid would allow utilities to monitor customers use of electricity remotely, from a central location, rather than
requiring on-site monitoring from gauges at homes and businesses. In 2009, the American Recovery and Reinvestment
Act invested $4.5 billion for electricity delivery and energy reliability modernization effortsmatched by private funding to
reach a total of $8 billion in the electric sector to begin the large task of modernizing Americas aging energy
infrastructure to provide more reliable power. Amin estimates that a smarter grid could reduce costs of outages by about
$49 billion per year and reduce carbon emissions by 12 to 18 percent by 2030. As the electric sector continues deploying
smart grid technologies, resiliency and reliability will continue to improve, a U.S. Departement of Energy official told
IBTimes.
Terrorism
Infrastructure is Exposed To Cyber Threats
Burghardt 15
Tom Burghardt Global Research, May 19, 2015 Global Research The U.S.
Secret State and the Internet: Dirty Secrets and Crypto Wars from Clipper Chip and
ECHELON to PRISM http://www.globalresearch.ca/the-u-s-secret-state-and-the-internet-dirtysecrets-and-crypto-wars-from-clipper-chip-to-prism/5357623
if we face this
cyberterrorism, it will be very unpredictable in a very unpredictable
place, but with very visible damage. Unfortunately, there are many
possible victims." In recent months, the business world and political establishment has seen an
IT security firm Kaspersky Labs, told CNBC. So I am afraid that
uptick in the use of debilitating digital attacks. As well as the Sony attacks, allegedly by North Korea, and
On Monday,
Malaysian Airlines refuted that its website had been hacked by a
the widespread hacking of international news agencies by the "Syrian Electronic Army,"
United States and its allies. Al Qaeda and other terrorist organizations are extremely active in cyberspace, using these
technologies to communicate among themselves and others, carry out logistics, recruit members, and wage information
warfare. For example, al Qaeda leaders used email to communicate with the 911 terrorists and the 911 terrorists used
the Internet to make travel plans and book flights. Osama bin Laden and other al Qaeda members routinely post videos
and other messages to online sites to communicate. Moreover, there is evidence of efforts that al Qaeda and other
terrorist organizations are actively developing cyberterrorism capabilities and seeking to carry out cyberterrorist attacks.
For example, the Washington Post has reported that U.S. investigators have found evidence in the logs that mark a
browser's path through the Internet that al Qaeda operators spent time on sites that offer software and programming
instructions for the digital switches that run power, water, transport and communications grids. In some interrogations . . .
al Qaeda prisoners have described intentions, in general terms, to use those tools.25 Similarly, a 2002 CIA report on the
cyberterror threat to a member of the Senate stated that al Qaeda and Hezbollah have become "more adept at using the
internet and computer technologies.26 The FBI has issued bulletins stating that, U. S. law enforcement and intelligence
agencies have received indications that Al Qaeda members have sought information on Supervisory Control And Data
Acquisition (SCADA) systems available on multiple SCADArelated web sites.27 In addition a number of jihadist websites,
such as 7hj.7hj.com, teach computer attack and hacking skills in the service of Islam.28 While al Qaeda may lack the
cyberattack capability of nations like Russia and China, there is every reason to believe its operatives, and those of its ilk,
are as capable as the cyber criminals and hackers who routinely effect great harm on the worlds digital infrastructure
generally and American assets specifically. In fact, perhaps, the most troubling indication of the level of the cyberterrorist
threat is the countless, serious nonterrorist cyberattacks routinely carried out by criminals, hackers, disgruntled insiders,
crime syndicates and the like. If runofthemill criminals and hackers can threaten powergrids, hack vital military
networks, steal vast sums of money, take down a citys of traffic lights, compromise the Federal Aviation Administrations
air traffic control systems, among other attacks, it is overwhelmingly likely that terrorists can carry out similar, if not more
around the worldsophisticated hackers with advanced training who would be willing to offer their services for the right
price. Finally, given the nature of our understanding of cyber threats, there is always the possibility that we have already
been the victim or a cyberterrorist attack, or such an attack has already been set but not yet effectuated, and we dont
a nations banking and finance system into chaos causing markets to crash, prompting runs on banks, degrading
confidence in markets, perhaps even putting the nations currency in play and making the government look helpless and
hapless. In todays difficult economy, imagine how Americans would react if vast sums of money were taken from their
accounts and their supporting financial records were destroyed. A truly nefarious cyberattacker could carry out an attack
in such a way (akin to Robin Hood) as to engender populist support and deepen rifts within our society, thereby making
attack on any of the 17 delineated critical infrastructure sectors could have a major impact on the United States. For
example, our healthcare system is already technologically driven and the Obama Administrations ehealth efforts will only
increase that dependency. A cyberattack on the U.S. ehealth infrastructure could send our healthcare system into chaos
and put countless of lives at risk. Imagine if emergency room physicians and surgeons were suddenly no longer able to
access vital patient information. A cyberattack on our nations water systems could likewise cause widespread disruption.
An attack on the control systems for one or more dams could put entire communities at risk of being inundated, and could
create ripple effects across the water, agriculture, and energy sectors. Similar water control system attacks could be used
to at least temporarily deny water to otherwise arid regions, impacting everything from the quality of life in these areas to
agriculture. In 2007, the U.S. Cyber Consequences Unit determined that the destruction from a single wave of
cyberattacks on critical infrastructures could exceed $700 billion, which would be the rough equivalent of 50 Katrina
esque hurricanes hitting the United States all at the same time.29 Similarly, one IT security source has estimated that the
impact of a single day cyberwar attack that focused on and disrupted U.S. credit and debit card transactions would be
approximately $35 billion.30 Another way to gauge the potential for harm is in comparison to other similar noncyberattack
infrastructure failures. For example, the August 2003 regional power grid blackout is estimated to have cost the U.S.
economy up to $10 billion, or roughly .1 percent of the nations GDP. 31 That said, a cyberattack of the exact same
magnitude would most certainly have a much larger impact. The origin of the 2003 blackout was almost immediately
disclosed as an atypical system failure having nothing to do with terrorism. This made the event both less threatening and
likely a single time occurrence. Had it been disclosed that the event was the result of an attack that could readily be
repeated the impacts would likely have grown substantially, if not exponentially. Additionally, a cyberattack could also be
used to disrupt our nations defenses or distract our national leaders in advance of a more traditional conventional or
governmentdirected/ coordinated assets, or allied cyber irregularsin advance of the invasion of Georgia. Widespread
distributed denial of service (DDOS) attacks were launched on the Georgian governments IT systems. Roughly a day later
Russian armor rolled into Georgian territory. The cyberattacks were used to prepare the battlefield; they denied the
Georgian government a critical communications tool isolating it from its citizens and degrading its command and control
capabilities precisely at the time of attack. In this way, these attacks were the functional equivalent of conventional air
and/or missile strikes on a nations communications infrastructure.32 One interesting element of the Georgian
cyberattacks has been generally overlooked: On July 20th, weeks before the August cyberattack, the website of Georgian
President Mikheil Saakashvili was overwhelmed by a more narrowly focused, but technologically similar DDOS attack.33
This should be particularly chilling to American national security experts as our systems undergo the same sorts of
focused, probing attacks on a constant basis. The ability of an enemy to use a cyberattack to counter our offensive
capabilities or soften our defenses for a wider offensive against the United States is much more than mere speculation. In
fact, in Iraq it is already happening. Iraq insurgents are now using offtheshelf software (costing just $26) to hack U.S.
drones (costing $4.5 million each), allowing them to intercept the video feed from these drones.34 By hacking these
drones the insurgents have succeeded in greatly reducing one of our most valuable sources of realtime intelligence and
situational awareness. If our enemies in Iraq are capable of such an effective cyberattack against one of our more
sophisticated systems, consider what a more technologically advanced enemy could do. At the strategic level, in 2008, as
the United States Central Command was leading wars in both Iraq and Afghanistan, a cyber intruder compromised the
security of the Command and sat within its IT systems, monitoring everything the Command was doing. 35 This time the
attacker simply gathered vast amounts of intelligence. However, it is clear that the attacker could have used this access
to wage cyberwaraltering information, disrupting the flow of information, destroying information, taking down systems
against the United States forces already at war. Similarly, during 2003 as the United States prepared for and began the
War in Iraq, the IT networks of the Department of Defense were hacked 294 times.36 By August of 2004, with America at
war, these ongoing attacks compelled thenDeputy Secretary of Defense Paul Wolfowitz to write in a memo that, "Recent
exploits have reduced operational capabilities on our networks."37 This wasnt the first time that our national security IT
infrastructure was penetrated immediately in advance of a U.S. military option.38 In February of 1998 the Solar Sunrise
attacks systematically compromised a series of Department of Defense networks. What is often overlooked is that these
attacks occurred during the ramp up period ahead of potential military action against Iraq. The attackers were able to
obtain vast amounts of sensitive informationinformation that would have certainly been of value to an enemys military
leaders. There is no way to prove that these actions were purposefully launched with the specific intent to distract
American military assets or degrade our capabilities. However, such ambiguitiesthe inability to specifically attribute
actions and motives to actorsare the very nature of cyberspace. Perhaps, these repeated patterns of behavior were
mere coincidence, or perhaps they werent. The potential that an enemy might use a cyberattack to soften physical
defenses, increase the gravity of harms from kinetic attacks, or both, significantly increases the potential harms from a
cyberattack. Consider the gravity of the threat and risk if an enemy, rightly or wrongly, believed that it could use a
cyberattack to degrade our strategic weapons capabilities. Such an enemy might be convinced that it could win a war
Nuke War
Grid attacks go nuclear
Andres and Breetz 11
Richard Andres, Professor of National Security Strategy at the National War College and a Senior Fellow and
Energy and Environmental Security and Policy Chair in the Center for Strategic Research, Institute for
National Strategic Studies, at the National Defense University, and Hanna Breetz, doctoral candidate in the
Department of Political Science at The Massachusetts Institute of Technology, Small Nuclear Reactorsfor
Military Installations:Capabilities, Costs, andTechnological Implications,
www.ndu.edu/press/lib/pdf/StrForum/SF-262.pdf
The DOD interest in small reactors derives largely from problems with base and logistics vulnerability. Over
the last few years, the Services have begun to reexamine virtually every aspect of how they generate and
use energy with an eye toward cutting costs, decreasing carbon emissions, and reducing energy-related
vulnerabilities. These actions have resulted in programs that have significantly reduced DOD energy
consumption and greenhouse gas emissions at domestic bases. Despite strong efforts, however, two
is
fragile, vulnerable, near its capacity limit, and outside of DOD
control. In most cases, neither the grid nor on-base backup power
provides sufficient reliability to ensure continuity of critical national
priority functions and oversight of strategic missions in the face of a
long term (several months) outage.7 The grids fragility was
demonstrated during the 2003 Northeast blackout in which 50 million people in
the United States and Canada lost power, some for up to a week, when one Ohio utility failed to properly
trim trees. The blackout created cascading disruptions in sewage systems, gas station pumping, cellular
communications, border check systems, and so forth, and demonstrated the interdependence of modern
infrastructural systems.8 More recently, awareness has been growing
military bases currently have backup power that allows them to function for a period of hours or, at most, a
few days on their own. If power were not restored after this amount of time, the results could be
Americas current
Unfortunately, these programs will not come close to reaching the goal of islanding the vast
the capacity cause widespread chaos, sow societal unrest, undermine national governments, spread
paralyzing fear and anxiety, and create a state of utter turmoil, all without taking a single life. A sophisticated
cyberattack could throw a nations banking and finance system into chaos causing markets to crash, prompting runs on
banks, degrading confidence in markets, perhaps even putting the nations currency in play and making the government
look helpless and hapless. In todays difficult economy, imagine how Americans would react if vast sums of money were
taken from their accounts and their supporting financial records were destroyed. A truly nefarious cyberattacker could
carry out an attack in such a way (akin to Robin Hood) as to engender populist support and deepen rifts within our society,
thereby making efforts to restore the system all the more difficult. A modestly advanced enemy could use a
cyberattack to shut down (if not physically damage) one or more regional power grids. An entire region could
be cast into total darkness, powerdependent systems could be shutdown. An attack on one or more regional power
grids could also cause cascading effects that could jeopardize our entire national grid. When
word leaks that the blackout was caused by a cyberattack, the specter of a foreign enemy
capable of sending the entire nation into darkness would only increase the fear, turmoil and unrest . While
the finance and energy sectors are considered prime targets for a cyberattack, an attack on any of the 17 delineated
critical infrastructure sectors could have a major impact on the United States. For example, our healthcare system is
already technologically driven and the Obama Administrations ehealth efforts will only increase that dependency. A
cyberattack on the U.S. ehealth infrastructure could send our healthcare system into chaos and put countless of lives at
risk. Imagine if emergency room physicians and surgeons were suddenly no longer able to access vital patient
information. A cyberattack on our nations water systems could likewise cause widespread disruption. An attack on the
control systems for one or more dams could put entire communities at risk of being inundated, and could create ripple
effects across the water, agriculture, and energy sectors. Similar water control system attacks could be used to at least
temporarily deny water to otherwise arid regions, impacting everything from the quality of life in these areas to
agriculture. In 2007, the U.S. Cyber Consequences Unit determined that the destruction from a single wave of
cyberattacks on critical infrastructures could exceed $700 billion, which would be the rough equivalent of 50 Katrina
esque hurricanes hitting the United States all at the same time.29 Similarly, one IT security source has estimated that the
impact of a single day cyberwar attack that focused on and disrupted U.S. credit and debit card transactions would be
approximately $35 billion.30 Another way to gauge the potential for harm is in comparison to other similar noncyberattack
infrastructure failures. For example, the August 2003 regional power grid blackout is estimated to have cost the U.S.
economy up to $10 billion, or roughly .1 percent of the nations GDP. 31 That said, a cyberattack of the exact same
magnitude would most certainly have a much larger impact. The origin of the 2003 blackout was almost immediately
disclosed as an atypical system failure having nothing to do with terrorism. This made the event both less threatening and
likely a single time occurrence. Had it been disclosed that the event was the result of an attack that could readily be
repeated the impacts would likely have grown substantially, if not exponentially. Additionally, a cyberattack could also be
used to disrupt our nations defenses or distract our national leaders in advance of a more traditional conventional or
strategic attack. Many military leaders actually believe that such a disruptive cyber preoffensive
is the most effective use of offensive cyber capabilities. This is, in fact, the way Russia utilized
cyberattackerswhether government assets, governmentdirected/ coordinated assets, or allied cyber irregularsin
advance of the invasion of Georgia. Widespread distributed denial of service (DDOS) attacks were launched on the
Georgian governments IT systems. Roughly a day later Russian armor rolled into Georgian territory. The cyberattacks were
used to prepare the battlefield; they denied the Georgian government a critical communications tool isolating it from its
citizens and degrading its command and control capabilities precisely at the time of attack. In this way, these attacks
were the functional equivalent of conventional air and/or missile strikes on a nations communications infrastructure.32
One interesting element of the Georgian cyberattacks has been generally overlooked: On July 20th, weeks before the
August cyberattack, the website of Georgian President Mikheil Saakashvili was overwhelmed by a more narrowly focused,
but technologically similar DDOS attack.33 This should be particularly chilling to American national security experts as our
systems undergo the same sorts of focused, probing attacks on a constant basis. The ability of an enemy to use a
cyberattack to counter our offensive capabilities or soften our defenses for a wider offensive against the United States is
much more than mere speculation. In fact, in Iraq it is already happening. Iraq insurgents are now using offtheshelf
software (costing just $26) to hack U.S. drones (costing $4.5 million each), allowing them to intercept the video feed from
these drones.34 By hacking these drones the insurgents have succeeded in greatly reducing one of our most valuable
sources of realtime intelligence and situational awareness. If our enemies in Iraq are capable of such an effective
cyberattack against one of our more sophisticated systems, consider what a more technologically advanced enemy could
do. At the strategic level, in 2008, as the United States Central Command was leading wars in both Iraq and Afghanistan, a
cyber intruder compromised the security of the Command and sat within its IT systems, monitoring everything the
Command was doing. 35 This time the attacker simply gathered vast amounts of intelligence. However, it is clear that the
attacker could have used this access to wage cyberwaraltering information, disrupting the flow of information,
destroying information, taking down systemsagainst the United States forces already at war. Similarly, during 2003 as
the United States prepared for and began the War in Iraq, the IT networks of the Department of Defense were hacked 294
times.36 By August of 2004, with America at war, these ongoing attacks compelled thenDeputy Secretary of Defense Paul
Wolfowitz to write in a memo that, "Recent exploits have reduced operational capabilities on our networks."37 This wasnt
the first time that our national security IT infrastructure was penetrated immediately in advance of a U.S. military
option.38 In February of 1998 the Solar Sunrise attacks systematically compromised a series of Department of Defense
networks. What is often overlooked is that these attacks occurred during the ramp up period ahead of potential military
action against Iraq. The attackers were able to obtain vast amounts of sensitive informationinformation that would have
certainly been of value to an enemys military leaders. There is no way to prove that these actions were purposefully
launched with the specific intent to distract American military assets or degrade our capabilities. However, such
ambiguitiesthe inability to specifically attribute actions and motives to actorsare the very nature of cyberspace.
Perhaps, these repeated patterns of behavior were mere coincidence, or perhaps they werent. The potential that an
enemy might use a cyberattack to soften physical defenses, increase the gravity of harms from kinetic attacks, or both,
significantly increases the potential harms from a cyberattack. Consider the gravity of the threat and risk if an enemy,
rightly or wrongly, believed that it could use a cyberattack to degrade our strategic weapons capabilities. Such an enemy
might be convinced that it could win a warconventional or even nuclearagainst the United States. The effect of
us
ADV Hegemony
Uniqueness
If Barack Obama was already showing signs of weakness in 2013, then 2014 would be the year he fell into utter vulnerability. In todays international community, powerful
position that the United States is currently facing through foreign competition. The complexity of foreign competition faced by the U.S. is demonstrated mainly by four
by himself or by domestic politics, but was also deeply tied to international politics. Although the next U.S. president may have a more decisive personality than Obama,
In the second half of the 20th century, the recovery time for each of the two U.S. economic recessions was fairly quick, and the economic aggregate was restored to
approximately a third of the worlds value. The recovery this time has been quite long, with its economic aggregate accounting for only about 20 percent of the total.
Second, from an international perspective, the strength and position of the U.S. in the 1990s was drastically elevated when the economic bubbles burst in Russia and
Japan. Today, the coincidental economic situations in Russia and Japan which greatly benefited American strategy and its economy are unlikely to occur again. Third, due to
the economic rise of emerging economies, the U.S. is currently losing its position as an economic superpower. Against this background, both the U.S. and the world must
accept the new role the U.S. has in international affairs. Although the U.S. remains a political and military superpower, Washingtons global approach will begin to change.
The U.S. will concentrate its diplomatic and military intervention overseas on areas of importance or significant interest and will use its military force more cautiously.
Toward global affairs, it will take on a role of mobilization and organization, when, for example, it will mobilize and organize other nations to implement an international
agenda that the U.S supports, rather than lead the fight or fight head-to-head, to further pursue its interests instead of power. U.S. allies and security partners will be
asked to take on more responsibility for security issues, thus developing a more intimate collaboration with the United States.
Emerging
It is often said Congress hates to cut or cancel weapons systems, usually for reasons relating to jobs and
US Heg is in decline
Ward 14 [Alex: writes for the National Interest on President Obama's
second and final National Security Strategy, Only US Can Prevent Great
Power War August 22, 2014, http://thediplomat.com/2014/08/only-us-canprevent-great-power-war/]
Since the dawn of Pax Americana after World War II, belief in the
United States as the undisputed global hegemon remained fairly
stable. Until now. According to a recent Pew poll, Americans views of
the United States as a global power have reached a 40-year low .
Indeed, only 17 percent believe that America plays a more
important and powerful role than ten years ago. Rightly or wrongly,
this perception exists. Even though most people still find the United
States preferable to China, regional powers can use the widespread
belief that America is declining to make their cases for running the
system. In fact they are already doing so to a degree. For example,
Chinas Global Times reports that 47 percent of people believe
China has achieved major power status. Should both perceptions
keep trending in the same direction the United States is declining
while China rises then the feeling of an historic shift is almost
inevitable.
Links
Whatever you think about Edward Snowden, the National Security Agency (NSA) data collection he
unveiled is more than a privacy issue. Investors should pay attention , too. The company
whose shares you own may be lying to you while Uncle Sam looks the other way. Let's step through
names.
competitors tell potential customers that American phone and Internet companies may be forced to turn
contract with Verizon Communications because of the NSA's bulk collection of millions of phone records.
The mass surveillance, which is still going on, came to light last year when former NSA contractor Edward
Snowden leaked the information. "There are serious concerns about the implications for the whole U.S.
technology sector," said Wyden, who also serves on the Senate Select Committee on Intelligence. "You've
got consumers all over the world raising questions about the security of products that are made in the
United States."
technology has
always been the handmaiden of national security. Nations always
look for innovations that can offer them competitive advantages
over their adversaries. Innovation will always be a national security
"wild card." New technologies may unleash or accelerate social and
cultural changes that affect how nations protect themselves on
battlefields and behind the scenes. Over the course of the 20th
century, America's genius was its capacity to ride above the wave of
technological change. That may not be the case in the future.
economic, and political factors and strategic choices. On the other hand,
Congress
should: * Establish a legislative framework that encourages the
development of emerging technologies; the promotion of research,
innovation, and investment; and the protection of U.S. citizens.
technological development. Among the key recommendations of this report are that
Congress should address litigation and civil liberties protection and environmental and public health
standards. It should, for example, consider expanding the scope of the SAFETY Act, which provides liability
protection for the development and deployment of homeland security and counterterrorism equipment and
services, to cover innovations that support other national security missions. Congress should also prompt
the Administration to work with other countries to adopt similar legislation that will facilitate deploying
technologies developed in the U.S. to support national security missions overseas. * Implement visa
issuance and management reforms to ensure that the best and the brightest continue to study and work
within the competitive technology fields in the United States. Congress should, for example, significantly
expand the H1B visa program, end the requirement for 100 percent interviews for visa applications, and
reform and expand the Visa Waiver Program. * Ensure that federal agencies efficiently and effectively
fund research and development on the emerging technologies with significant national security
implications, particularly those that are not being developed aggressively by the private sector, including
nanotechnology and directed energy. * Encourage more interdisciplinary approaches to research that
combine disparate scientific disciplines in both the basic and applied sciences, some creating new methods
of investigation, such as "network" science, which combines studying physical, biological, and social
science and technology. The nation's scientists, bolstered by colleagues that had fled from war-torn
Europe, provided an unparalleled pool of knowledge with access to vast government resources. As a result,
the nation's leaders could rely on the best and brightest for innovation and creativity to maintain the
United States' technological edge. At the same time, government-sponsored research fueled by a decadeslong competition with the Soviet Union funded many of the premier technological innovations of the age.
The 21st century is very different.
States seeing its scientific lead shrink, but it is also experiencing difficulty in attracting and retaining the
talent necessary to produce next-generation technologies. Another major change is that the federal
government is no longer the principal player in the research and development that shapes the character of
t modern era. Private-sector innovations in biotechnology and information systems dwarf government
research. These emerging industries are creating products that science-fiction writers never even
imagined, with dual-use capabilities that could potentially transform the fields of homeland security and
defense. In many cases,
age weapons with ancient tactics like kidnapping, guerilla warfare, and suicide bombers. The technological
advantages of the Cold War era have proven ill-suited to these challenges. Emerging technologies will
have a dramatic impact on the future of our security. In the short term, these technologies will provide
capabilities that include protection and possible immunity against biological agents, better screening at
airports and ports, more efficient information-gathering and information-sharing techniques, and better
armor for our troops. In the long term, the sky is the limit. These fields will be at the center of scientific
advances for years to come and perhaps will redefine not only our national security capabilities, but also
how we conduct our daily lives.
security can no longer be viewed in purely military terms; economic security is also a vital consideration.
military
and commercial technologies, so is it difficult to determine how to manage
international relationships, since important political allies in military technology are often
Moreover, just as it is increasingly difficult to make a meaningful policy distinction between
hard-nosed economic competitors in commercial technology. As a result of these trends a new U.S. public
policy framework is emerging that focuses on industrial competitiveness and technology. This focus raises
some important issues about the evolving roles of business and government in the economy, and forces
new thinking about how U.S. foreign policy can accommodate strategic economic concerns. II Recent
the proper role of government in the economy. Should the government intervene to assist certain sectors?
If so, what form should government intervention take? Which sectors should receive public assistance?
How should government policies and institutions be structured to facilitate commercial technology? Recent
technological developments have highlighted questions such as these and generated a lively policy
debate, pitting traditional notions about the proper role of government against the need for prompt,
have complained that Washington suffers from a "technology of the week" syndrome, in which such
diverse technologies as cold fusion, supercomputers and biotechnology emerge unexpectedly as burning
issues and stir tremendous policy debates, only to be forgotten in a few weeks. Five technological debates
profile the changing public policy dialogue: consumer electronics, semiconductors, superconductors, the
FSX fighter airplane and high-definition television (HDTV). These debates do not include all of the
technologies that have engaged the federal government in recent years, but they are indicative of the
The decline of
the American consumer electronics industry was one of the early
signals that the United States was facing a challenge to its technological
leadership. For most of the past century American industry enjoyed a
strong position in consumer electronics. During the past fifteen years, however, U.S.
kinds of issues that are driving public policy deliberations. Consumer Electronics
companies have ceded that market to foreign competitors. The American era of consumer electronics
manufacturing began in 1887 with Thomas Edison's invention of the phonograph. That breakthrough was
followed by a string of other U.S. inventions, including the cathode ray tube (1897), wireless transmission
of speech (1900), radio broadcasting (1920), television receivers (1923), magnetic wire recorders (1946),
the transistor (1947), color televisions (1954), portable radios (1954) and home videocassette recorders
(1963).
intensive economies. So suggest trends released in a new report by the National Science Board (NSB), the
policymaking body for the National Science Foundation (NSF), on the overall status of the science,
engineering and technology workforce, education efforts and economic activity in the United States and
abroad. "This
seeing are now very well established." In 2009, President Obama released A Strategy for American
Innovation, which recognized the importance of science and engineering as drivers of innovation and
identified a strong fundamental research base as critical to innovation, economic growth and
competitiveness. "Maintaining
discovery
ISIS Scenario
Heg K2 S ISIS
Hegemony key to solve ISIS creates coalitions
Davis 14 (Chris Davis, The Strategy to Defeat ISIS: Mississippi Senator
Asks For More Details From Pres. Obama, 9/16/14,
http://www.newsms.fm/strategy-defeat-isis-mississippi-senator-asks-detailspres-obama/)/
WASHINGTON, D.C.A well-funded, well-equipped, and sophisticated army is
how Sen. Roger Wicker described ISIS, the Islamic state, to the Senate Monday, asking the
president to provide more information on his plan to defeat the group before it grows bigger and threatens
more Americans. Wicker said he believes Congress should support the Commander-in-Chief, but before
they can, they need to know how an airstrike campaign, without soldiers actually on the ground, will be
effective in putting down such a large movement. Wicker is a senior member of the Senate Armed Forces
Committee. His comments addressed the skepticism that some DC lawmakers feel after Pres. Obamas
speech last week. That skepticism is also being reflected in polls, some of which indicate that a majority of
the American people are not sure about how effective the presidents plan may be. Congress and the
American people are now seeking specifics about the new strategy. I am hopeful that the new plan is
want to help the President in his request for authorization to train and equip these forces. This coalition
needs to include Muslim-majority nations who are all-in with a demonstrated resolve to defeat the Islamic
terrorists in their own neighborhood. I believe Congress should support our commander-in-chief in the
and General Martin Dempsey testify before the Armed Services Committee tomorrow. There are still
questions to be answered. For example: If public opinion turns, will the Administration lose its resolve? How
long will it take to win, how long will it take to crush ISIS? What is the definition of success? What is the
definition of victory in this case? If we accomplish our objectives, will we once again abandon our gains as
we did after the surge in Iraq? What is the plan to eliminate the terrorist groups financial network? And are
the President and congressional leaders willing to find a solution to defense sequestration in order to fulfill
the mission, if more resources are required? And, more resources will be required, Mr. President.
Addressing these questions is important to understanding the specific goals and aims of the Presidents
strategy, which are yet to be fleshed out. Americans and Congress deserve this clarity. Wicker also
addressed what he believes is the need for the Senate to pass the National Defense Authorization Act
(NDAA) in order to provide the nations armed forces with the resources they require to fulfill their
missions. Congress has the responsibility to provide the resources that our U.S. military needs for its
missions. We do this through our appropriations, through the power of the purse, and the National
Defense Authorization Act, which has garnered bipartisan support for the past 52 years. An annual
blueprint of the military priorities is vital to making sure that our troops have what they need to protect our
national security interests at home and abroad. This years bill, for example, includes a provision to stave
off drastic cuts to the U.S. Army, which would put troop strength at levels not seen since before World War
II. Well-trained units like the 155thHeavy Brigade Combat Team in my home state of Mississippi should not
be jeopardized by shortsighted and ill-considered proposals by the Obama Administration. Instead, under
the committee bill an independent commission would have the opportunity to make recommendations on
force structure and size before the National Guard personnel could be cut or the Apache attack helicopters
could be transferred. In conclusion, Mr. President, we have work to do. The Senate Armed Services
Committee and the House of Representatives have passed the defense authorization bill. It is time for the
Senate to follow suit. America has the most formidable fighting force in the world, and this presence must
remain resilient as dangerous groups like ISIS put our interests at risk. The rapid rise of these barbaric
terrorists is a wake-up call for U.S. leadership. Now that the President has declared his intention to
degrade and destroy ISIS militants, we must ensure that the mission is fulfilled.
ISIS Bioterror
ISIS can weaponize bubonic plague
Doornbos, Moussa 14
(Found: The Islamic States Terror Laptop of Doom
http://foreignpolicy.com/2014/08/28/found-the-islamic-states-terror-laptop-ofdoom/)
ANTAKYA, Turkey Abu Ali, a commander of a moderate Syrian rebel group
in northern Syria, proudly shows a black laptop partly covered in dust. We
took it this year from an ISIS hideout, he says. Abu Ali says the fighters from the Islamic
State of Iraq and al-Sham (ISIS), which have since rebranded themselves as the Islamic State, all fled
before he and his men attacked the building. The attack occurred in January in a village in the Syrian
province of Idlib, close to the border with Turkey, as part of a larger anti-ISIS offensive occurring at the
time. We found the laptop and the power cord in a room, he continued, I took it with me. But I have no
clue if it still works or if it contains anything interesting. As we switched on the Dell laptop, it indeed still
worked. Nor was it password-protected. But then came a huge disappointment: After we clicked on My
Computer, all the drives appeared empty. Appearances, however, can be deceiving. Upon closer
"They are incapable to detect it." Over the past several months, the
world has watched as threats from extremist group ISIS have come
true, from the beheadings of captured prisoners of war to the mass murder
of children's schools. And with the possibility of a global pandemic looming
over our heads, many are demanding action be taken to isolate the potential
vectors as a worst case scenario. Yet, as conflicting reports abound,
international health organizations and the WHO are unable to assess the
health concern on site, and treat the patients as their own. WHO director
Christy Feig told reporters early this weekend that " We [the WHO] have no
official notification from the Iraqi government that it is Ebola." While that
may be true, the possibility that the militants may have contracted the virus
causes a problematic situation for the WHO, in that ISIS does not believe
in modern medicine and an outbreak in an ISIS-controlled area like
Mosul could be a breeding ground for the ever-mutating virus. But
worst of all, aside from the possibility of possible infection of Iraq,
should ISIS isolate the virus for themselves, the entire western
world may find soon enough that the Ebola virus could be the worst
weapon known to [hu]man .
Bioterror Extinction
Bioterror attack coming, probable and causes extinction
Doornbos 14
HARALD DOORNBOS IS A JOURNALIST BASED IN ISLAMABAD, PAKISTAN. and,
JENAN MOUSSA AUGUST 28, 2014. EXCLUSIVE Found: The Islamic State's
Terror Laptop of
Doom,http://www.foreignpolicy.com/articles/2014/08/28/found_the_islamic_sta
te_terror_laptop_of_doom_bubonic_plague_weapons_of_mass_destruction_exc
lusive
A laptop reportedly recovered from an Islamic State jihadist
contained a hidden trove of secret plans, including weaponizing the
bubonic plague, and lessons on disguise, bomb-making and stealing
cars. A man identified by ForeignPolicy.com as Abu Ali, a commander of a
moderate Syrian rebel group in northern Syria, told the publication the black
laptop was seized earlier this year in a raid on an ISIS hideout in the
Syrian province of Idlib, close to the border with Turkey, and belonged to a
Tunisian jihadist. "We found the laptop and the power cord in a room," Ali
told ForeignPolicy.com. "I took it with me." Initially, it appeared the computer
had been scrubbed, but on closer inspection, thousands of secret files
were discovered on the hard drive, which was not password protected,
Ali said. ForeignPolicy.com was permitted to copy of thousands of files,
which were in French, English, and Arabic. The information included videos of
Usama bin Laden, ideological justifications for jihad and tutorials on how to
carry out the Islamic State's deadly campaigns. But most chilling were files
that indicated the computer's owner, identified as a Tunisian national
named Muhammed S. who joined ISIS in Syria after studying chemistry
and physics at two universities in Tunisia, was teaching himself how
to manufacture biological weapons, in preparation for a potential
attack that could have been catastrophic on a global scale. A 19page document in Arabic included instructions on how to develop
biological weapons and how to weaponize the bubonic plague from
infected animals. "The advantage of biological weapons is that
they do not cost a lot of money, while the human casualties can be
huge," the document states. The document includes instructions for
testing the weaponized plague before using it to attack. "When the
microbe is injected in small mice, the symptoms of the disease should start to
appear within 24 hours," the document says. While some Islamic scholars
have said the use of weapons of mass destruction is prohibited, the material
on the seized computer included a fatwa, or Islamic ruling, permitting it. "If
Muslims [ISIS] cannot defeat the kafir [unbelievers] in a different way,
it is permissible to use weapons of mass destruction," states the fatwa
by Saudi jihadi cleric Nasir al-Fahd, who is currently imprisoned in Saudi
Arabia. "Even if it kills all of them and wipes them and their descendants
off the face of the Earth."
Generic Impacts
S Terrorism
Heg solves terrorGives the US a way to incentivize
cooperation
Brooks and Wohlforth 8Prof of Govt @ Dartmouth
which eco- nomic globalization gives U.S. policymakers potential leverage for fur- thering its
concerning the effort to harness economic globalization's full potential for developing capabilities to
count~ract WMDll3and also with respect to the use of globalization- related leverage for influencing the
Washington does
have sig-nificant potential to make use of economic globalization to
further its counterterrorism strategy. This, in combination with the
fact that rising economic interdependence does not appear to be a
significant motiva-tor for terrorist activity, means that globalization
is, if anything, a net benefit to the United States in the war on
terror.
antiterrorism policies of other states.!" The larger point, however, is that
S Conflict
Hegemony decreases conflict empirics prove
Drezner 5[Daniel W. Drezner: professor of international politics at the Fletcher School of Law and
Diplomacy at Tufts University, a nonresident senior fellow at the Brookings Institution, and a contributor to
the Washington Post) http://www.danieldrezner.com/archives/002087.html]
Via
Oxblog's Patrick Belton, I see that Gregg Easterbrook has a cover story in The New Republic entitled "The
decade or more, become the lowest in human history. Is Easterbrook right? He has a few more paragraphs
There were 26 armed conflicts in 2000 and 25 in 2002, even after the Al Qaeda attack on the United States
and the U.S. counterattack against Afghanistan. By 2004, Marshall and Gurr's latest study shows, the
All told,
there were less than half as many wars in 2004 as there were in
1991. Marshall and Gurr also have a second ranking, gauging the magnitude of fighting. This section of
number of armed conflicts in the world had declined to 20, even after the invasion of Iraq.
the report is more subjective. Everyone agrees that the worst moment for human conflict was World War II;
but how to rank, say, the current separatist fighting in Indonesia versus, say, the Algerian war of
independence is more speculative. Nevertheless, the Peace and Conflict studies name 1991 as the peak
post-World War II year for totality of global fighting, giving that year a ranking of 179 on a scale that rates
the extent and destructiveness of combat. By 2000, in spite of war in the Balkans and genocide in Rwanda,
the
extent and intensity of global combat is now less than half what it
was 15 years ago. Easterbrook spends the rest of the essay postulating
the causes of this -- the decline in great power war, the spread of
democracies, the growth of economic interdependence, and even the
peacekeeping capabilities of the United Nations. Easterbrook makes a lot of good points -the number had fallen to 97; by 2002 to 81; and, at the end of 2004, it stood at 65. This suggests
most people are genuinely shocked when they are told that even in a post-9/11 climate, there has been a
steady and persistent decline in wars and deaths from wars. That said, what bothers me in the piece is
cold war" but he doesn't understand why it's the most powerful factor. Elsewhere in the piece he talks
the
reason the "great powers" get along is that the United States is much,
much more powerful than anyone else. If you quantify power only by relative military
about the growing comity among the great powers, without discussing the elephant in the room:
capabilities, the U.S. is a great power, there are maybe ten or so middle powers, and then there are a lot of
mosquitoes. [If the U.S. is so powerful, why can't it subdue the Iraqi insurgency?--ed. Power is a relative
measure -- the U.S. might be having difficulties, but no other country in the world would have fewer
problems.] Joshua Goldstein, who knows a thing or two about this phenomenon, made this clear in a
Christian Science Monitor op-ed three years ago: We probably owe this lull to the end of the cold war, and
to a unipolar world order with a single superpower to impose its will in places like Kuwait, Serbia, and
Afghanistan. The emerging world order is not exactly benign Sept. 11 comes to mind and Pax
a unipolar world
is inherently more peaceful than the bipolar one where two
Americana delivers neither justice nor harmony to the corners of the earth. But
superpowers fueled rival armies around the world. The long-delayed "peace
dividend" has arrived, like a tax refund check long lost in the mail. The difference in language between
Goldstein and Easterbrook highlights my second problem with "The End of War?" Goldstein rightly refers to
especially with the rise (or re-rise) of China, Russia, India and Brazil, which have been developing into
major powers n recent years. Indeed, there seems to be plenty of people out there, especially abroadand
perhaps a few at home, sadlywho would welcome the absolute decline of American strength and
influence across the globe. To those who naively feel this way, another old adage applies: Be careful what
wants to know is what Washington thinksand what is it willing to do. While it has never been our
problems and places that many Americans have never even heard of, much less been to. Fact is
ourselves-get-the-job-done-and-get-home type of mobility and sustainability that is the envy of all other
armed forces. But its not just U.S. military muscle that makes us unique. We also have strong diplomatic
forces in embassies, consulates and international institutions that span the globe, giving us sway and a say
on important issues.
and arguably most innovative economy, based on the free market. In fact, its a
major source of our strength, bolstering our efforts around the
globe. Were the hardest workers, too. We spend more time in the office, the factory and in the farm
field than just about anyone else. Even the U.N. has said the United States, leads the world in
productivity. Fortunately, we also have the worlds finest intelligence services, from the Central
Intelligence Agency to the Defense Intelligence Agency. They dont always get it right, but intelligence is a
tough business and they get it right a lot more than they get it wrongby a long stretch. The fact is that
you dont pull off first-rate diplomacy or military operations without top-notch intelligence, collected from
the ground by daring spies, in the air by manned and unmanned aircraft or from space by advanced eye
in the sky satellites. For instance, without great, painstaking intelligence work, there would have been no
special forces raid on Osama bin Ladens compound in Pakistan in May. Period. Our diplomatic, military and
intelligence professionals do it so well so often, people just take it for granted theyll get it right. Its on
those rare times where they get it wrong that you hear about it from Capitol Hill or read about it in the
newspapers. And while enemiesand sometimes friends and alliescriticize Lady Liberty for being big,
powerful and out and about, the truth is this country of ours has provided, and continues to provide, a
world of good. Regional Role While few take the time to realize all America does, much less acknowledge
our often-selfless contributions, the fact is were making a difference in so many places
around the world. Lets start with the Korean Peninsula. Ever since the cease-fire between North Korean
and Chinese forces and the United Nations, led by the Americans, was concluded in 1953, weve been a
stabilizing force reducing the risk of another conflict on the divided Korean peninsula. Even today, 25,000
U.S. troops (far from home) help keep the peace across the misnamed demilitarized zone (DMZ)
against a North Korean regime, which still harbors dreams of unitingmilitarily, if necessarythe North
and South under its despotic rule. Without the presence of American forces, a second Korean war has been
and still isa distinct possibility. It's easy to assume that another war would be even more horrific than
the last, especially considering North Korea now has nuclear weapons. And what about Japan, where
Japanese
security since the end of World War II. This has not only allowed Japan to prosper economically and
45,000 U.S. troops are stationed? The U.S. military has also played a huge role in
politicallylike South Koreabut it helped stabilize Asia in the aftermath of war, too. The presence of U.S.
forces and the extension of our strategic nuclear deterrent has also kept both Japan and South Korea from
developing a nuclear option that many believe they might have taken in light of North Korean atomic
questions about its intentions in the region. Perhaps most troubling is Beijings unprecedented military
buildup, supported by the worlds second largest defense budget. Its military spending has been growing
at a double-digit rate, meaning 10 percent or more, for the last two decades, raising eyebrows across the
region. Despite the absence of a threat to China, Beijing is developing a highly potent military, capable of
projecting power in the air and on the seas well into the Pacific, dwarfing other regional militaries,
Europe to Indonesia in Asia, using terrorism as a key tool. And what about the Middle East? Of course, in
the mother of all terror battles, our brave young men and women put the hurt on al Qaeda in Iraq,
stemming the momentum of the extremist group that had only been gaining steam since 9/11. Next door,
the United States has been the bulwark against Irans rise in the region since
the fall of the Shah in 1979. Today, it serves as the driving force to counter its nuclear program. Without
U.S. leadership, wed already be dealing with atomic ayatollahs. Plus, for years, weve been the country
that has guaranteed the free flow of oil shipped through the Persian Gulfs Strait of Hormuz, where as
much as 40 percent of the worlds black gold flows to markets across the globe, courtesy of the U.S. Navy.
Today, the likelihood of a major war in Europe is thankfully just about nil, but considering weak European
ambitions of being a major power broker internationally, is already breathing down the neck of its "near
abroad" neighbors, especially in its old Soviet Union-era stompin grounds like Georgia and Ukraine. It
doesnt end there. Transnational Trouble If it werent for our spooks and special operations forces, Osama
bin Laden would still be stalking the Earth, calling the shots for al Qaeda and its affiliates around the world
against a slew of countries that have suffered at his hands and those of his terror cohorts. While killing bin
Laden may not be the knockout punch to al Qaeda that we all hope it is, it was certainly a major body
blow, and the group will likely be shaking it off on the canvas for a bit. American drone strikes in the
Pakistani tribal areas on the Taliban and in Yemen on al Qaeda factions make sure the terrorists know that
theyre never completely out of reach of the long arm of Lady Liberty. Weapons of mass destruction (WMD)
would be more common than they are today without U.S. efforts like the Bush-era Proliferation Security
Initiative, which joins states together to fight the spread of these deadly technologies and weapons. For
instance, American efforts in recent years led directly to Libya surrendering its nuclear program, and
without our uncovering the network of Pakistan's prodigious proliferator, A.Q. Khan, hed still be going door
to door, hawking his nuclear wares to who-knows-who. Not surprisingly, our cutting-edge engineers and
scientists are developing the worlds most prodigious ballistic missile defense system to protect the
American homeland, our deployed troops, allies and friends that face the growing WMD and missile threat.
Why be held hostage to North Korea, which can likely hit the West Coast of the United States with a
nuclear missile, or Iran, which will have an intercontinental ballistic missile (ICBM) that can reach out an
touch us as soon as 2015? Moreover, our Navy patrols the worlds oceans, providing freedom of the seas
free of charge. It also protects international shipping against sea banditry and modern-day piracy, a
growing problem especially in Southeast Asia and off the Horn of Africa. But thats not all. Uncle Sugar In
addition, U.S. intelligence assets, especially satellites, provide critical information to the international
community, including early warning of crises and ongoing support during hostilities or humanitarian
performing numerous humanitarian missions around the world every year, bringing much-needed help to
those without access to basic medical care. Of course, there are other generous gifts from Uncle Sam,
starting with the lions share of the United Nations budget. We also fund half the operations of the World
Food Program, feeding more than 100 million people in nearly 80 countries. Moreover, we also contribute
to U.N. programs which fight HIV/AIDS; vaccinates, educates and protects children across the globe; battles
human trafficking; combats child labor; and supports international peacekeeping. Were also the worlds
trainer, providing military, counterterror and counternarcotics education, and equipment to some 130
countries around the world, especially in places like Latin America and the Middle East, where the need
runs high. Colombia, which came close to falling to the narcoterrorist group, the FARC, turned into the
counterterror and counterinsurgency success story it is today because of American assistance and training.
Colombia isnow helping Mexico with its drug cartel problem. The United States even created African
Command [AFRICOM]which supports and trains armed forces in African states so that they can
appropriately respond to possible crises or disasters on that continent. The U.S. government has also
funded new technologies, often through military research and development, that have primed the pumps
of the private sector, stirred further innovations and made life better for so many, from the Internet to the
microwave oven to GPS. But what about a world without todays America? Absent America Singapores
former prime minister, Lee Kwan Yew, had it right when he told the Wall Street Journal recently, The
that stability is rocked, we are going to have a different situation. By different, its unlikely Lee believes
there
is nobody else to relieve the United States of this duty at least for the
moment. Nor are any of the prospective candidates looking good . While
some would like to see the United Nations in this role, it has been nothing short of a
disappointment. While some at the U.N. mean well, it is hamstrung by its own diversity of values
things will be better. Unfortunately, in the role of providing for global stability and public goods,
and interests, leaving it often quite feckless in dealing with the matters that everyone agrees requires
States must be prepared to adapt and adjust its military engagement with these countries as new
governments emerge, based on assessments of both the nature and the actions of those governments, the
degree to which U.S. interests and strategies in the region overlap with theirs, and their willingness to
partner with the United States.
US Heg Is Benign
US hegemony is on balance benignother countries are
comparatively worse
Keck 14 (Zachary, Deputy Editor of e-International Relations and has
interned at the Center for a New American Security and in the U.S. Congress,
where he worked on defense issues, 1-24-14, Americas Relative Decline:
Should We Panic?, The Diplomat, http://thediplomat.com/2014/01/americasrelative-decline-should-we-panic/)
Over at the Washington Post, Charles Kenny has a provocative op-ed arguing that Chinas GDP will almost
certainly soon surpass Americas in absolute terms, and this is to the United States benefit (the op-ed is
based on Kennys new book, which can be purchased here). Kennys first argument in support of this claim
is that Americans quality of life will still be better than their Chinese counterparts, and that in fact losing
the title of largest economy doesnt really matter much to Americans quality of life. Fine. Kenny next
concedes that there may be some negative effects, but nonetheless argues that these are limited. For
example, he notes that the dollar may no longer be the worlds reserve currency, but businesses in the
rest of the world still manage to export, even though they must go through the trouble of exchanging
currencies. Similarly, while having the largest GDP has allowed America to maintain the largest and most
powerful military, how much [has] the three-quarters increase in defense spending between 2000 and
2011 enhanced Americas well-being? Thus, lower defense spending could be a net positive. Kenny goes
on to list a number of benefits America will receive from its relative economic decline. For example, this
relative decline is mainly a result of the developing economies becoming larger, healthier, more
educated, more free and less violent. And there is little doubt the United States benefits from that, such
as through increased exports and being able to import the amazing new innovations these newly
empowered countries will no doubt invent. Moreover, economic growth in the developing world also
means that there are more places for Americans to travel in security and comfort. Theres no doubt some
truth to at least some of this. Most notably, China having a larger GDP will not equate to a better quality of
life for Chinese people, and, I suppose, having more vacation spots to choose from also could bring some
amount of joy to the top 1% of Americans who get bored of laying out on the same hundreds of beaches
they currently feel safe to vacation in. Still, Chinas relative rise and the United States relative decline
carries significant risks, for the rest of the world probably more so than for Americans. Odds are, the world
will be worse off if China and especially others reach parity with the U.S. in the coming years. This isnt to
say America is necessarily as benign a hegemon as some in the U.S. claim it to be. In the post-Cold War
era, the U.S. has undoubtedly at times disregarded international laws or international opinions it disagreed
with. It has also used military force with a frequency that would have been unthinkable during the Cold
War or a multipolar era. Often this has been for humanitarian reasons, but even in some of these instances
military action didnt help. Most egregiously, the U.S. overrode the rest of the worlds veto in invading Iraq,
only for its prewar claims to be proven false. Compounding the matter, it showed complete and utter
Still, on
balance, the U.S. has been a positive force in the world, especially
for a unipolar power. Certainly, its hard to imagine many other
countries acting as benignly if they possessed the amount of relative
power America had at the end of the Cold War. Indeed, the British
were not nearly as powerful as the U.S. in the 19th Century and they
incorporated most of the globe in their colonial empire. Even when it
had to contend with another superpower, Russia occupied half a
continent by brutally suppressing its populace. Had the U.S.
collapsed and the Soviet Union emerged as the Cold War victor,
Western Europe would likely be speaking Russian by now. Its
difficult to imagine China defending a rule-based, open international
order if it were a unipolar power, much less making an effort to
uphold a minimum level of human rights in the world. Regardless of
your opinion on U.S. global leadership over the last two decades,
however, there is good reason to fear its relative decline compared
with China and other emerging nations. To begin with, hegemonic
transition periods have historically been the most destabilizing eras
negligence in planning for Iraqs future, which allowed chaos to engulf the nation.
Heg Toolbox
Sustainable
The pursuit of hegemony is inevitable, sustainable, and
prevents great power war US decline causes conflict
escalation and global lashout
Ikenberry, Brooks, and Wohlforth 13 Associate Professor of
Government at Dartmouth College and the Albert G. Milbank Professor of
Politics and International Affairs at Princeton University and Global Eminence
Scholar at Kyung Hee University in Seoul and the Daniel Webster Professor of
Government at Dartmouth College, 13 (John Ikenberry, Stephen G. Brooks,
William C. Wohlforth, January/February 2013, Foreign Affairs, Lean Forward:
In Defense of American Engagement
http://www.foreignaffairs.com/articles/138468/stephen-g-brooks-g-johnikenberry-and-william-c-wohlforth/lean-forward)
Of course, even if it is true that the costs of deep engagement fall far below what advocates of
retrenchment claim, they would not be worth bearing unless they yielded greater benefits. In fact, they do.
would end up threatening other states. Skeptics discount this benefit by arguing that U.S. security
guarantees aren't necessary to prevent dangerous rivalries from erupting. They maintain that the high
costs of territorial conquest and the many tools countries can use to signal their benign intentions are
enough to prevent conflict. In other words, major powers could peacefully manage regional multipolarity
without the American pacifier. But that outlook is too sanguine. If Washington got out of East Asia, Japan
and South Korea would likely expand their military capabilities and go nuclear, which could provoke a
destabilizing reaction from China. It's worth noting that during the Cold War, both South Korea and Taiwan
tried to obtain nuclear weapons; the only thing that stopped them was the United States, which used its
Although it's hard to imagine the return of great-power military competition in a post-American Europe, it's
not difficult to foresee governments there refusing to pay the budgetary costs of higher military outlays
and the political costs of increasing EU defense cooperation. The result might be a continent incapable of
securing itself from threats on its periphery, unable to join foreign interventions on which U.S. leaders
might want European help, and vulnerable to the influence of outside rising powers. Given how easily a
U.S. withdrawal from key regions could lead to dangerous competition, advocates of retrenchment tend to
put forth another argument: that such rivalries wouldn't actually hurt the United States. To be sure, few
doubt that the United States could survive the return of conflict among powers in Asia or the Middle East--
states in one or both of these regions to start competing against one another,
would likely boost their military budgets, arm client states, and perhaps even
start regional proxy wars, all of which should concern the United States, in part because its
but at what cost? Were
they
lead in military capabilities would narrow. Greater regional insecurity could also produce cascades of
nuclear proliferation as powers such as Egypt, Saudi Arabia, Japan, South Korea, and Taiwan built nuclear
forces of their own. Those countries' regional competitors might then also seek nuclear arsenals. Although
nuclear deterrence can promote stability between two states with the kinds of nuclear forces that the
Soviet Union and the United States possessed, things get shakier when there are multiple nuclear rivals
probability of illicit
transfers, irrational decisions, accidents, and unforeseen crises goes up. The case
with less robust arsenals. As the number of nuclear powers increases, the
for abandoning the United States' global role misses the underlying security logic of the current approach.
Washington dampens
competition in the world s key areas, thereby preventing the emergence of a
hothouse in which countries would grow new military capabilities. For proof that this strategy is
By reassuring allies and actively managing regional relations,
working, one need look no further than the defense budgets of the current great powers: on average, since
1991 they have kept their military expenditures as A percentage of GDP to historic lows, and they have not
attempted to match the United States' top-end military capabilities. Moreover, all of the world's most
modern militaries are U.S. allies, and the United States' military lead over its potential rivals .is by many
U.S. military should keep its forces over the horizon and pass the buck to local powers to do the dangerous
work of counterbalancing rising regional powers. Washington, they contend, should deploy forces abroad
only when a truly credible contender for regional hegemony arises, as in the cases of Germany and Japan
during World War II and the Soviet Union during the Cold War. Yet there is already a potential contender for
regional hegemony--China--and to balance it, the United States will need to maintain its key alliances in
Asia and the military capacity to intervene there. The implication is that the United States should get out of
Afghanistan and Iraq, reduce its military presence in Europe, and pivot to Asia. Yet that is exactly what the
Obama administration is doing. MILITARY DOMINANCE, ECONOMIC PREEMINENCE Preoccupied with security
issues, critics of the current grand strategy miss one of its most important benefits: sustaining an open
global economy and a favorable place for the United States within it. To be sure, the sheer size of its output
would guarantee the United States a major role in the global economy whatever grand strategy it adopted.
Yet the country's military dominance undergirds its economic leadership. In addition to protecting the
world economy from instability, its military commitments and naval superiority help secure the sea-lanes
and other shipping corridors that allow trade to flow freely and cheaply. Were the United States to pull back
from the world, the task of securing the global commons would get much harder. Washington would have
less leverage with which it could convince countries to cooperate on economic matters and less access to
the military bases throughout the world needed to keep the seas open. A global role also lets the United
States structure the world economy in ways that serve its particular economic interests. During the Cold
War, Washington used its overseas security commitments to get allies to embrace the economic policies it
preferred--convincing West Germany in the 1960s, for example, to take costly steps to support the U.S.
dollar as a reserve currency. U.S. defense agreements work the same way today. For example, when
negotiating the 2011 free-trade agreement with South Korea, U.S. officials took advantage of Seoul's desire
to use the agreement as a means of tightening its security relations with Washington. As one diplomat
explained to us privately, "We asked for changes in labor and environment clauses, in auto clauses, and
the Koreans took it all." Why? Because they feared a failed agreement would be "a setback to the political
and security relationship." More broadly, the United States wields its security leverage to shape the overall
Partnership, the Obama administration's most important free-trade initiative in the region, less because its
economic interests compel it to do so than because Prime Minister Yoshihiko Noda believes that his support
will strengthen Japan's security ties with the United States. The United States' geopolitical dominance also
helps keep the U.S. dollar in place as the world's reserve currency, which confers enormous benefits on the
country, such as a greater ability to borrow money. This is perhaps clearest with Europe: the EU'S
dependence on the United States for its security precludes the EU from having the kind of political
leverage to support the euro that the United States has with the dollar. As with other aspects of the global
economy, the United States does not provide its leadership for free: it extracts disproportionate gains.
Shirking that responsibility would place those benefits at risk. CREATING COOPERATION What goes for the
global economy goes for other forms of international cooperation. Here, too, American leadership benefits
many countries but disproportionately helps the United States. In order to counter transnational threats,
such as terrorism, piracy, organized crime, climate change, and pandemics, states have to work together
and take collective action. But cooperation does not come about effortlessly, especially when national
interests diverge. The
leadership make it easier for Washington to launch joint initiatives and shape them in
ways that reflect U.S. interests. After all, cooperation is hard to come by in regions where chaos reigns, and
it flourishes where leaders can anticipate lasting stability. U.S.
they also provide the political framework and channels of communication for cooperation
on nonmilitary issues. NATO, for example, has spawned new institutions, such as the Atlantic Council, a
think tank, that make it easier for Americans and Europeans to talk to one another and do business.
Likewise, consultations with allies in East Asia spill over into other policy issues; for example, when
American diplomats travel to Seoul to manage the military alliance, they also end up discussing the TransPacific Partnership. Thanks to conduits such as this, the United States can use bargaining chips in one
that require new forms of cooperation, such as terrorism and pandemics. With its alliance system in place,
the United States is in a stronger position than it would otherwise be to advance cooperation and share
burdens. For example, the intelligence-sharing network within NATO, which was originally designed to
gather information on the Soviet Union, has been adapted to deal with terrorism. Similarly, after a tsunami
in the Indian Ocean devastated surrounding countries in 2004, Washington had a much easier time
orchestrating a fast humanitarian response with Australia, India, and Japan, since their militaries were
already comfortable working with one another. The operation did wonders for the United States' image in
the region. The United States' global role also has the more direct effect of facilitating the bargains among
governments that get cooperation going in the first place. As the scholar Joseph Nye has written, "The
American military role in deterring threats to allies, or of assuring access to a crucial resource such as oil in
the Persian Gulf, means that the provision of protective force can be used in bargaining situations.
Sometimes the linkage may be direct; more often it is a factor not mentioned openly but present in the
back of statesmen's minds." THE DEVIL WE KNOW Should America come home? For many prominent
scholars of international relations, the answer is yes--a view that seems even wiser in the wake of the
There is little
evidence that the United States would save much money switching to a
smaller global posture. Nor is the current strategy self-defeating: it
has not provoked the formation of counterbalancing coalitions or caused the
country to spend itself into economic decline. Nor will it condemn the U nited
States to foolhardy wars in the future. What the strategy does do is help
prevent the outbreak of conflict in the world's most important regions, keep the
global economy humming, and make international cooperation easier.
Charting a different course would threaten all these benefits. This is not to say
disaster in Iraq and the Great Recession. Yet their arguments simply don't hold up.
that the United States' current foreign policy can't be adapted to new circumstances and challenges.
Washington does not need to retain every commitment at all costs, and there is nothing wrong with
rejiggering its strategy in response to new opportunities or setbacks. That is what the Nixon administration
did by winding down the Vietnam War and increasing the United States' reliance on regional partners to
contain Soviet power, and it is what the Obama administration has been doing after the Iraq war by
pivoting to Asia. These episodes of rebalancing belie the argument that a powerful and internationally
engaged America cannot tailor its policies to a changing world. A grand strategy of actively managing
global security and promoting the liberal economic order has served the United States exceptionally well
for the past six decades, and there is no reason to give it up now. The country's globe-spanning posture is
Were
American leaders to choose retrenchment, they would in essence be
running a massive experiment to test how the world would work without an engaged and
liberal leading power. The results could well be disastrous.
the devil we know, and a world with a disengaged America is the devil we don't know.
Harvard Kennedy Schools Belfer Center for Science and International Affairs
Michael, Chinas Century? Why Americas Edge Will Endure International
Security, Vol. 36, No. 3 (Winter 2011/12), pp. 4178 //mtc
Hegemony is indeed expensive and provocative, but these declinist
arguments tell only part of the story. The United States is both systemmaker and privilege-takerit pays a large share of systemmaintenance costs but takes a disproportionate share of the
benefits.36 The basic claim of the alternative perspective is that these benefits outweigh
the costs. Most obvious, the United States, as hegemon, possesses an array
of tools with which to reward and punish. It can provide, restrict, or
deny access to the U.S. market, technology, foreign aid, support for
membership in international organizations, bribes, and White House
visits. These tit-for-tat bargains with individual states, however, are not as consequential as the United
States power over aspects of the international system itself. In the alternative perspective,
It is, at
less visible and more profound than brute force. Seen in this light, the
United States is neither benevolent nor feeble, but coercive and
capable, and the goods it produces are less collective goods than
private ones, accruing primarily to the hegemon and thus helping
maintain its hegemony.38 Military superiority, for example, allows the
United States to employ force without war, pressuring other countries
into making concessions by shifting military units around or putting
them on alert.39 It also allows the United States to run a protection
racket, garnering influence through the provision of security. As Joseph
Nye explains, Even if the direct use of force were banned among a group of
countries, military force would still play an important political role. For
example, the American military role in deterring threats to allies, or of
assuring access to a crucial resource such as oil in the Persian Gulf,
means that the provision of protective force can be used in
bargaining situations. Sometimes the linkage may be direct; more often it is a factor not
mentioned openly but present in the back of statesmens minds.40 To be sure, the costs of
maintaining U.S. military superiority are substantial. By historical
standards, however, they are exceptionally small.41 Past hegemons
succumbed to imperial overstretch after fighting multifront wars
against major powers and spending more than 10 percent (and often
100 or 200 percent) of their GDPs on defense.42 The United States, by
contrast, spends 4 percent of its GDP on defense and concentrates
its enmity on rogue nations and failed states. Past bids for global mastery were
strangled before hegemony could be fully consolidated. The United States, on the other hand, has
the advantage of being an extant hegemonit did not overturn an
existing international order; rather, the existing order collapsed
around it. As a result, its dominant position is entrenched to the point
that any effort to compete directly with the United States is futile, so
no one tries.43 The dollars global role may handicap American exports, but it also comes with
once,
perks including seigniorage,44 reduced exchange rate risks for U.S. firms involved in international
commerce, competitive advantages for American banks in dollarized financial markets, and the ability to
foreign
governments that hold dollar reserves depend on U.S. prosperity for
their continued economic growth and are thus entrapped, unable
to disentangle their interests from those of the United States.46 Rather
than seeking to undermine the American economy, they invest in its
continued expansion.47 Finally, given its position at the top of the world
trade regime, the United States can distort international markets in its
favor.48 Declinists expect the hegemon to use its power magnanimously. According to the alternative
delay and defect current account adjustments onto other countries.45 More important,
perspective, however, American foreign economic policy involves the routine use of diplomatic leverage at
the highest levels to create opportunities for U.S. firms.49 U.S. trade officials, acting as self-appointed
enforcers of the free trade regime, asserted the right with their own national law to single out and punish
process that diffuses wealth evenly throughout the international system, but
The
unipole cannot dictate, but it can set at least some of the rules and
can enforce agreements among others (although it itself cannot be bound). If it
by ir scholars since they represent the antithesis of what makes international politics distinct.10
chooses to do so, it can then provide a significant degree of security for others while also limiting their
autonomy. Although unipolarity does not constitute the end of international history, it may represent a
bigger break from other systems than was the emergence of bipolarity, which left security fears and
anarchy intact. A unipole that exerts itself in this way will produce a system that is stripped of many of the
unique characteristics associated with international politics. This raises the question of how many of our
traditional ideas can be carried over into the new world.
Multipolarity Fails
Multipolarity leads to conflict
Lundestad and Jakobsen 13 - Associate Professor of Philosophy at
Norges Arktiske Universitet (UiT), **Ph.D., Statistics (Eirik and Tor, 2-5-13, A
Unipolar World: Systems and Wars in Three Different Military Eras, Popular
Social Science, http://www.popularsocialscience.com/2013/02/05/a-unipolarworld-systems-and-wars-in-three-different-military-eras/)
A system of multipolarity increases rivalry in world politics , the reason being that
many states of similar strength compete for power and influence.
These states are often uncertain of other states intentions, which
increases the probability of military action. Also, the power balance in
this type of system is changing constantly, as a result of changing
alliances. Multipolarity denotes the fundamental power structure in an
international system dominated by several large powers, and is
characterized by antagonism between these. What we know as the
classical era of power balance came as a result of planned big power
politics. The Napoleonic Wars had led the great powers desiring to
prevent similar events taking place in the future . After the defeat of
France, the Congress of Vienna determined that five states should
dominate world politics together, namely Great Britain, Russia, Prussia, France, and AustriaHungary. This power-sharing functioned well for 40 years, until other powers
came into play and try to dominate politics. The instability of this
system became manifest during the Crimean War (185356) when Russia
invaded the Ottoman Empire and Britain and France joined forces to
counter the Russians. Yet, the hardest blow to peace came with German
power ambitions which ended in the First World War. This marked the end of Austria-Hungary.
Finally, the Second World War can be described as the coup de grce
for the multipolar system. This became the end of the European golden age. The
end of multipolarity meant that a new challenger was to enter world power politics. Together
with the Soviet Union, the United States was to dominate the global arena for the next half century
Norges Arktiske Universitet (UiT), **Ph.D., Statistics (Eirik and Tor, 2-5-13, A
Unipolar World: Systems and Wars in Three Different Military Eras, Popular
Social Science, http://www.popularsocialscience.com/2013/02/05/a-unipolarworld-systems-and-wars-in-three-different-military-eras/)
A system of multipolarity increases rivalry in world politics, the
reason being that many states of similar strength compete for power
and influence. These states are often uncertain of other states
intentions, which increases the probability of military action. Also,
the power balance in this type of system is changing constantly, as a
result of changing alliances. Multipolarity denotes the fundamental
power structure in an international system dominated by several
large powers, and is characterized by antagonism between these.
What we know as the classical era of power balance came as a result of planned big power politics. The
Napoleonic Wars had led the great powers desiring to prevent
similar events taking place in the future. After the defeat of France,
the Congress of Vienna determined that five states should dominate
world politics together, namely Great Britain, Russia, Prussia, France, and Austria-Hungary.
This power-sharing functioned well for 40 years, until other powers
came into play and try to dominate politics. The instability of this
system became manifest during the Crimean War (185356) when
Russia invaded the Ottoman Empire and Britain and France joined
forces to counter the Russians. Yet, the hardest blow to peace came with German power
ambitions which ended in the First World War. This marked the end of Austria-Hungary. Finally, the
Second World War can be described as the coup de grce for the
multipolar system. This became the end of the European golden age. The end of multipolarity
meant that a new challenger was to enter world power politics. Together with the Soviet Union, the United
States was to dominate the global arena for the next half century.
India has
rise
could undermine Asian stability and, for example, worsen Indian relations
with its neighbor Pakistan. Moreover, the scarcity of natural resources in a world that is
been portrayed as the third pole of the multi-polar world in 2050 (Virmani; Gupta). Yet its constant
consuming and demanding a high quantity of them could have several implications on global security and
since 2008, including a 9.3 per cent increase in 2011 (Background Paper on Military Expenditures 5).
Before 2008, it had increased its military expenditure by 160 per cent in a decade, (SIPRI, SIPRI Yearbook
2008 199), accounting for 86 per cent of the total increase of 162 per cent in military expenditure of
Eastern Europe, the region of the world with the highest increment in military expenditure from 1998 to
2007 (SIPRI, SIPRI Yearbook 2008 177). Moreover, the control of the gas prices in Europe and the
enlargement of the North Atlantic Treaty Organization in Central and Western Europe have already been
causes of tension between Russia and the West. The possibility to exploit and supply a large amount of
natural resources, the growth of its military power and divergences with the US in some foreign policy
issues, such as the Iranian nuclear program or the status of Kosovo, indicate that the stability of the future
multi-polar world could be seriously undermined by a resurgent Russia (Arbatov; Goldman; Trenin;
possible instability for the future multi-polar world. The current distribution of power allows not only great
powers but also middle, small powers and non-state actors to have military capabilities that could threaten
are not great powers armed with nuclear capabilities could represent a cause of concern for global security.
A nuclear Iran could for example attack or be attacked by Israel and easily involve in this war the rest of
the world (Sultan; Huntley). A war between Pakistan and India, both nuclear states, could result in an
Armageddon for the whole Asia. An attack from the Democratic Peoples Republic of Korea (DPRK) on Japan
or South Korea will trigger an immediate reaction from the US and a nuclear proliferation domino effect
in East Asia (Huntley, 725). Terrorists armed with nuclear weapons could wreak havoc and target the
depend not only on the unpredictable effects of the rivalry among great powers, but also on the dangerous
potential of middle and small powers and non-state actors armed with nuclear weapons. Conclusion On
the morning of the 5th April 2009 the DPRK sent a communication satellite into space using a Taepodong-2
ballistic missile. Suspicious neighbouring countries and the US considered the rocket launch as a cover for
testing ballistic long-range missile technology and a threat for their national security: South Korea and
Japan feared that their unpredictable neighbour could target their population, the US was afraid that DPRK
missiles could in the future reach its western shores. The result of the launch is debated: while Pyongyang
asserted that the satellite reached the orbit, US experts considered it as a failure and remarked that the
missile travelled 3,200 km before landing in the Pacific Ocean (Broad). Surely DPRK actions achieved the
goal to deeply divide the international community: the UN Secretary General regretted the launch and
urged Security Council Resolutions (Statement SG/SM/12171), the then Chinese Ambassador to the UN
Yesui Zhang stressed cautious and proportionate (Richter and Baum) responses to avoid increased
tensions (Richter and Baum), the then Japanese Prime Minister Taro Aso considered it an extremely
provocative act (Ricther and Baum), while US President Obama declared that, North Koreas
development and proliferation of ballistic missile technology pose a threat to the northeast Asian region
and to international peace and security (Obama, Statement from Prague). This essay has explained why
a clumsy launch of a communication satellite, or a military exercitation of the nation with the 197th Gross
Domestic Product pro capita of the world (Central Intelligence Agency) can become a threat to
international peace and security (Obama, Statement from Prague) and could represent a serious source of
instability for the world in the near future. It has been argued that the current decline of the hegemon of
the international system, together with a rise of new actors could create the conditions for a shifting to
multi-polarity and great powers rivalry. The future multi-polar order will not be different from the other
multi-polar moments history has witnessed and will result in more instability and unpredictability than in
culminating in World War I, the most destructive and deadly war mankind had known up to that point. The
Unipolarity Good
Unipolarity is good
reasons is that the USA is in a geographically advantageous situation compared to other countries.
Relevant challengers like China, Japan, India, and Russia hold less favorable strategic positions as they are
amidst more multipolar regions.
Yet, we also agree with Waltz that the USA will become weakened over time due to its over-commitment.
But since the system is built around the power of the United States, it will continue to be in existence as
whole range of conflicts erupted in the years following the end of the Cold War. Even so, in sum there has
been a strong decline in the number of armed conflicts since 1992. The problem of terrorism has not been
easy to solve for the USA. Serious terror attacks are the only form of armed conflicts that have increased in
numbers. It is difficult to draw any real conclusions as to whether or not the world has become more stable
after 1989.The multipolar system was less stable than the bipolar, and resulted in two
world wars. The bipolar era meant more stable international politics due to the dominance of the USA and
could again become militarily multipolar, with China and Russia as possible challengers to U.S. hegemonic
dominance.
A2: Retrenchment
Hegemony is the meta-impact
U.S. power
dampens the
retrenchment advocates, the bulk of whom are realists, discount this benefit? Their arguments are
complicated, but two capture most of the variation: (1) U.S. security guarantees are not necessary to
prevent dangerous rivalries and conflict in Eurasia; or (2) prevention of rivalry and conflict in Eurasia is not
a U.S. interest. Each response is connected to a different theory or set of theories, which makes sense
given that the whole debate hinges on a complex future counterfactual (what would happen to Eurasias
security setting if the United States truly disengaged?). Although a certain answer is impossible, each of
these responses is nonetheless a weaker argument for retrenchment than advocates acknowledge. The
first response flows from defensive realism as well as other international relations theories that discount
the conflict-generating potential of anarchy under contemporary conditions. 73 Defensive realists maintain
that the high expected costs of territorial conquest, defense dominance, and an array of policies and
practices that can be used credibly to signal benign intent, mean that Eurasias major states could manage
regional multipolarity peacefully without the American pacifier. Retrenchment would be a bet on this
scholarship, particularly in regions where the kinds of stabilizers that nonrealist theories point tosuch as
democratic governance or dense institutional linkagesare either absent or weakly present. There are
three other major bodies of scholarship, however, that might give decisionmakers pause before making
this bet. First is regional expertise. Needless to say, there is no consensus on the net security effects of
U.S. withdrawal. Regarding each region, there are optimists and pessimists. Few experts expect a return of
intense great power competition in a post-American Europe, but many doubt European governments will
pay the political costs of increased EU defense cooperation and the budgetary costs of increasing military
outlays. 74 The result might be a Europe that is incapable of securing itself from various threats that could
be destabilizing within the region and beyond (e.g., a regional conflict akin to the 1990s Balkan wars),
lacks capacity for global security missions in which U.S. leaders might want European participation, and is
vulnerable to the influence of outside rising powers. What about the other parts of Eurasia where the
United States has a substantial military presence? Regarding the Middle East, the balance begins to swing
toward pessimists concerned that states currently backed by Washington notably Israel, Egypt, and
Saudi Arabiamight take actions upon U.S. retrenchment that would intensify security dilemmas. And
concerning East Asia, pessimism regarding the regions prospects without the American pacifier is
pronounced. Arguably the principal concern expressed by area experts is that Japan and South Korea are
likely to obtain a nuclear capacity and increase their military commitments, which could stoke a
destabilizing reaction from China. It is notable that during the Cold War, both South Korea and Taiwan
moved to obtain a nuclear weapons capacity and were only constrained from doing so by a still-engaged
United States. 75 The second body of scholarship casting doubt on the bet on defensive realisms sanguine
portrayal is all of the research that undermines its conception of state preferences. Defensive realisms
optimism about what would happen if the United States retrenched is very much dependent on its
particularand highly restrictiveassumption about state preferences; once we relax this assumption,
then much of its basis for optimism vanishes. Specifically, the prediction of post-American tranquility
throughout Eurasia rests on the assumption that security is the only relevant state preference, with
security defined narrowly in terms of protection from violent external attacks on the homeland. Under that
assumption, the security problem is largely solved as soon as offense and defense are clearly
distinguishable, and offense is extremely expensive relative to defense.
Burgeoning research
across the social and other sciences, however, undermines that core
assumption: states have preferences not only for security but also for prestige,
status, and other aims, and they engage in trade-offs among the various objectives. 76 In
addition, they define security not just in terms of territorial protection but in view of many and varied
milieu goals. It follows that even states that are relatively secure may nevertheless engage in highly
competitive behavior. Empirical studies show that this is indeed sometimes the case. 77 In sum, a bet on a
benign postretrenchment Eurasia is a bet that leaders of major countries will never allow these nonsecurity
preferences to influence their strategic choices. To the degree that these bodies of scholarly knowledge
have predictive leverage, U.S. retrenchment would result in a significant deterioration in the security
environment in at least some of the worlds key regions. We have already mentioned the third, even more
like, or bids for regional hegemony, which may be beyond the capacity of local great powers to contain
great
power war). Hence it is unsurprising that retrenchment advocates are prone to focus on the second
(and which in any case would generate intensely competitive behavior, possibly including regional
argument noted above: that avoiding wars and security dilemmas in the worlds core regions is not a U.S.
national interest. Few doubt that the United States could survive the return of insecurity and conflict
among Eurasian powers, but at what cost? Much of the work in this area has focused on the economic
externalities of a renewed threat of insecurity and war, which we discuss below. Focusing on the pure
security ramifications, there are two main reasons why decisionmakers may be rationally reluctant to run
the retrenchment experiment. First, overall higher levels of conflict make the world a more dangerous
place. Were Eurasia to return to higher levels of interstate military competition, one would see
overall higher levels of military spending and innovation and a higher likelihood of competitive regional
proxy wars and arming of client statesall of which would be concerning, in part
because it would promote a faster diffusion of military power away from the United States. Greater
regional insecurity could well feed proliferation cascades, as states such as Egypt, Japan, South Korea,
Taiwan, and Saudi Arabia all might choose to create nuclear forces. 78 It is unlikely that proliferation
decisions by any of these actors would be the end of the game: they would likely generate pressure locally
for more proliferation. Following Kenneth Waltz, many retrenchment advocates are proliferation optimists,
assuming that nuclear deterrence solves the security problem. 79 Usually carried out in dyadic terms, the
debate over the stability of proliferation changes as the numbers go up. Proliferation optimism rests on
assumptions of rationality and narrow security preferences. In social science, however, such assumptions
are inevitably probabilistic. Optimists assume that most states are led by rational leaders, most will
overcome organizational problems and resist the temptation to preempt before feared neighbors
nuclearize, and most pursue only security and are risk averse. Confidence in such probabilistic
assumptions declines if the world were to move from nine to twenty, thirty, or forty nuclear states. In
addition, many of the other dangers noted by analysts who are concerned about the destabilizing effects of
nuclear proliferationincluding the risk of accidents and the prospects that some new nuclear powers will
not have truly survivable forcesseem prone to go up as the number of nuclear powers grows. 80
Moreover, the risk of unforeseen crisis dynamics that could spin out of control is
also higher as the number of nuclear powers increases. Finally, add to these concerns the enhanced
danger of nuclear leakage, and a world with overall higher levels of security competition becomes yet
more worrisome. The argument that maintaining Eurasian peace is not a U.S. interest faces a second
problem. On widely accepted realist assumptions, acknowledging that U.S. engagement preserves peace
dramatically narrows the difference between retrenchment and deep engagement. For many supporters of
retrenchment, the optimal strategy for a power such as the United States, which has attained regional
hegemony and is separated from other great powers by oceans, is offshore balancing: stay over the
horizon and pass the buck to local powers to do the dangerous work of counterbalancing any local rising
power. The United States should commit to onshore balancing only when local balancing is likely to fail and
a great power appears to be a credible contender for regional hegemony, as in the cases of Germany,
Japan, and the Soviet Union in the midtwentieth century. The problem is that Chinas rise puts the
possibility of its attaining regional hegemony on the table, at least in the medium to long term. As
Mearsheimer notes, The United States will have to play a key role in countering China, because its Asian
neighbors are not strong enough to do it by themselves. 81 Therefore, unless Chinas rise stalls, the
United States is likely to act toward China similar to the way it behaved toward the Soviet Union during the
Cold War. 82 It follows that the United States should take no action that would compromise its capacity to
move to onshore balancing in the future. It will need to maintain key alliance relationships in Asia as well
as the formidably expensive military capacity to intervene there. The implication is to get out of Iraq and
Afghanistan, reduce the presence in Europe, and pivot to Asia just what the United States is doing. 83 In
sum,
onshore balancing capacity that dramatically reduces the savings retrenchment might bring. Moreover,
switching between offshore and onshore balancing could well be difcult. Bringing together the thrust of
the
dissuade partners from ramping up and also provide leverage to prevent military transfers to potential
rivals. On top of all this, the United States formidable military machine may deter entry by potential rivals.
Current great power military expenditures as a percentage of GDP are at historical lows, and thus far other
major powers have shied away from seeking to match top-end U.S. military capabilities. In addition, they
have so far been careful to avoid attracting the focused enmity of the United States. 84 All of the worlds
most modern militaries are U.S. allies (Americas alliance system of more than sixty countries now
accounts for some 80 percent of global military spending), and the gap between the U.S. military capability
and that of potential rivals is by many measures growing rather than shrinking. 85
associated with the interventions in Iraq and Afghanistan, and the rise of China
to the argument championed by most international relations scholars who write on U.S. grand
strategy: that America should pursue retrenchment by curtailing or eliminating its
overseas military presence and eliminating or dramatically reducing its global security commitments. A
comprehensive assessment of the strategy's costs and benefits
reveals that these scholars are wrong: America's choice to retain a
grand strategy of deep engagement after the Cold War is just what the
preponderance of international relations scholarship would expect a
rational, self-interested, leading power in the United States' position
to do. THE AFFORDABILITY OF DEEP ENGAGEMENT PostSeptember 11 levels of defense spending are
unnecessary to maintain the deep engagement strategy. After the September 11 terrorist attacks, defense
spending increased dramatically, owing in large part to the wars in Iraq and Afghanistan as well as to an
augmented effort to wield and to use military tools in the wider war on terrorism. Both of these drivers of
increased spending during the past decade have already begun to be reversed as the United States winds
down the two costly wars and begins to trim nonwar "base" spending. The United States currently spends
4.5 percent of its gross domestic product (GDP) on defense, but this figure is slated to drop by 50 percent
within a few years: based on current Defense Department planning, defense cuts are expected to bring
defense expenditures as a share of GDP just below 3 percent by 2017, even though spending in real terms
will be roughly $100 billion higher than it was in the late 1990s. Importantly, this does not represent the
floor for spending to sustain the strategy over the long term: the Pentagon could save more with no ill
effects by reforming its procurement practices and compensation policies. It is therefore clear that the
United States can sustain the budgetary cost of deep engagement. Spending roughly 3 percent of GDP on
defense is less than half the Cold War average (from 1950 to 1990, that figure averaged 7.6 percent). In
the contemporary era, this represents a spending level comparable both to the world average of 2.5
percent and to that of U.S. allies such as Britain (2.5 percent) and South Korea (2.7 percent), while only
marginally above China (2.0 percent). A meta-analysis of economic studies of the relationship between
military spending and economic performance confirms that there is no reason to expect adverse effects on
Revoking
security guarantees would make the world and the United States less
secure. In Asia, Japan and South Korea would likely expand their military
capabilities if the United States were to leave, which could provoke a dangerous
reaction from China. Security dilemmas in the Middle East would likely
become more intense absent a U.S. presence. In addition, there are dangers even
U.S. growth from this spending. There is thus no economic-growth rational for retrenchment.
in Europe, which may become more unstable if current U.S. allies do not
develop the capabilities to deal with security problems on their
periphery following a U.S. withdrawal. A U.S. withdrawal , moreover,
could spark a cascade of nuclear proliferation if states such as Egypt,
Japan, South Korea, Taiwan, and Saudi Arabia were to build nuclear
forces. This could prompt other states in each region to seek nuclear arsenals as well. A dramatic
increase in the number of nuclear powers would be a great concern,
because most of these states would not have the kinds of nuclear forces
that are needed to generate stable nuclear deterrence such as existed
between the United States and the Soviet Union during the Cold War. And the more nuclear
powers there are, the higher the probability of "leakage" to nonstate
actors. Retrenchment would vitiate the leverage that Washington
now uses to restrain its partners from acting provocatively and from
transferring weapons to potential adversaries, which in turn helps to deter other
states in each region from undertaking destabilizing actions. Ultimately, by decreasing global security,
A2: Entanglement
Entrapment theory wronglongitudinal studies, zero
historical basis, and hegemonic states protect
themselves,
Brooks, Ikenberry and Wohlforth 13
Stephen G., G. John, William C., Don't Come Home, America: The Case against Retrenchment
International Security
Volume 37, Number 3, Winter 2012/2013 //mtc
At first glance, entrapment would seem to defy realist expectations. After all, the scenario it posits of a weaker ally pulling
the stronger patron into a war not in its interest turns Thucydides on his head, saying, in effect, that "the weak do what
they can and the strong suffer what they must." Scholarship that has appeared in the three decades since
the initial work on entrapment has in significant part rescued realism from this potential anomaly .
Rational states might be expected to anticipate the danger of entrapment and seek to protect
themselves from it. As it turns out, this is exactly what they do . TongFi Kim, for example, shows that
most alliance agreements are written to protect the allies from entrapmenta problem that is
greater for the smaller partner, whose bargaining leverage, as realism would expect, is generally dwarfed by that of the
great power patron. This helps to explain why it is nearly impossible to find a clear case of entrapment
actually occurring.58 Cases of the related phenomenon of "chain ganging," in which alliance ties expand wars
beyond the real interest of some or all alliance members, are also now far more contested than they were two
decades ago. According to new research by a growing cadre of historians and political scientists ,
even the canonical case of World War I does not qualify.59 More recent scholarship has also ratified Paul
Schroeder's discussion of alliances as not just power-aggregating mechanisms but also tools for controlling risks and
exerting influence.60 In a study spanning nearly two centuries , Jesse Johnson and Brett Leeds found
"support for the hypothesis that defensive alliances [End Page 29] deter the initiation of disputes but no evidence in
support of the claims that states with defensive allies are more likely to initiate disputes in
the international system." They conclude that "defensive alliances lower the probability of
international conflict and are thus a good policy option for states seeking to maintain peace in the
world."61 Much about the United States' experience contains evidence to support this view. Victor Cha
shows how each post-World War II U.S.-East Asian alliance was a "powerplay . . . designed to exert maximum control over
the smaller ally's actions," where one key aim was "to constrain anticommunist allies in the region that might engage in
aggressive behavior against adversaries that could entrap the United States in an unwanted larger war."62 Recent
developments in the United States-Taiwan relationshiparguably the most salient entrapment concern for
advocates of retrenchmentalso constitute a case in point. After repeated cross-strait tensions in the 1990s and
early 2000s, U.S. officials became concerned that the policy of strategic ambiguity regarding support for Taiwan was
leaving them exposed to the risk of entrapment. The George W. Bush administration adjusted the policy to
clarify dual deterrence: deterring China from an unprovoked attack, but also deterring Taiwan from provocative
moves toward independence that might give Beijing cause to resort to force.63 Although it is impossible to rule out
speculation that the United States might get "dragged in" no matter what, all the observable evidence is
consistent with the view that major power patrons can ward against moral hazard and use
their alliances to control risks. [End Page 30]
was to not only deter China from an unprovoked attack bu t also deter Taiwan from unilateral moves
toward independence.
Any
country wanting to mount a sustained attack against shipping would
use land-based air assets supported by a secure supply chain before
it would use sea-based assets, such as submarines, or an air strip in
mid-ocean built on a submerged coral reef remote from any secure
supply chain.Second,
before they used these remote and tiny islands as the foundation for an anti-shipping campaign.
Russian President Vladimir Putin has made it clear that they have no
plans to attack NATO and is only responding to threats by the US and NATO military expansion
on its borders. Speaking to Italian newspaper, Il Corriere della Sera, he said that they are not
building up its offensive military capabilities overseas. Speaking to the
paper on the eve of his visit to Italy, Putin stressed that peopleshould not take
the ongoing Russian aggression scaremongering in the West
seriously, as a global military conflict is absolutely unthinkable in
the modern world. I think that only an insane person and only in a
dream can imagine that Russia would suddenly attack NATO. I think
some countries are simply taking advantage of peoples fears with
regard to Russia. They just want to play the role of front-line countries that should receive some
supplementary military, economic, financial or some other aid, Putin said. He also so that there were
specific countries were deliberately nurturing such fears, he added, saying that hypothetically the US could
need an external threat to maintain its leadership in the Atlantic community. Iran is clearly not very scary
or big enough for this, Putin noted with irony. Russias President also pointed out to the journalists to
compare the global military presence of Russia and the US/NATO, as well as their military spending levels.
He also urged them to look at the steps each side has taken in connection with the Anti-Ballistic Missile
Treaty since the collapse of the Soviet Union.
armed forces in Tajikistan on the border with Afghanistan, mainly due to the high terrorist threat in the
area. There is an airbase in Kyrgyzstan, which was opened at request of the Kyrgyz authorities to deal with
a terrorist threat there. Russia also has a military unit in Armenia. Putin also highlighted that the fact
Russia has been working towards downsizing its global military presence while on the contrary the US has
been doing the exact opposite. We have dismantled our bases in various regions of the world, including
Cuba, Vietnam, and so on, the president stressed. I invite you to publish a world map in your newspaper
and to mark all the US military bases on it. You will see the difference.
ADV Economy
Uniqueness
growth down to 0.2 percent in the first quarter, and the Atlanta Fed's GDPNow model only thinks it's up to
0.9 percent now. That's even worse than last year, when another polar vortex-induced slump at least gave
way to a strong bounce back thereafter. Why is this time different? After all, interest rates are still zero,
austerity is still over, and unemployment is still falling. Well, the problem, as Greg Ip points out, is that just
talking about tightening is tightening, because people will react as if you already did. So when the Federal
Reserve said that it'd like to start raising rates in June, even if weak data is ultimately going to make it wait
everything you need for a slowdown. More than that, actually. It's not inconceivable that the economy
shrank to start the year. Now that we know how much bigger the trade deficit got in March, it will probably
turn out that first quarter growth will get revised down into negative territory. And while it's far from likely,
there's still a chance, as economist Scott Sumner points out, that second quarter growth won't be any
better. But if that happened, it'd be a funny kind of "recession." The economy has added 591,000 jobs so
far this yeardespite what was, in all likelihood, lower GDPand even if that pace peters out, it's hard to
imagine it would turn into job losses. Unemployment, in other words, probably wouldn't go up. That's the
same thing, Sumner says, that happened to Japan last year. A big tax hike made its economy contract for
two quarters in a row, but throughout this supposed recession, its unemployment rate actually fell from 3.6
to 3.5 percent. That's because, as Japan's workforce has shrunk, its economy has grow so little in the good
times that it doesn't take much to make it look like a bad time. The U.S. doesn't face such a dramatic
demographic decline, but productivity growth has been so feeble the past few years that, taken together
with the Boomers hitting retirement age, our trend growth is probably a lot lower than it used to be, too.
Still, it's never good when you can't tell if your recovery is actually a recession.
in the real gross domestic product is attributed to an unusually harsh winter; but a vibrant economy
doesn't sustain that kind of hit from a tough winter alone. As Mesirow Financial's Chief Economist Diane
Swonk put it in a recent report to clients: "The economy came to a virtual standstill in the first quarter [of
2014], adding insult to injury to an economy still struggling to recover." She added that it was "reflective of
a fundamental weakening in a recovery that was already compromised."
a very fragile economy. The monthly survey of top economists conducted by Blue Chip
Economic Indicators projects that the economy, as measured by change in real GDP, will likely grow at a
rate of 3.4 percent for the ongoing second quarter of this year, then 3.0 and 3.1 percent for the third and
fourth quarters, respectively. And
percent level. Obviously, this is far better growth than we have had during recessions; looking back
over the last three-quarters of a century, mid-to-high single digits is more the norm, so the economy will
likely be growingbut compared with the pain we have gone through, not at nearly the rate we need and
would like to have. With projections calling for growthbut nothing like the impressive growth we have
seen in previous erasbusinesses are slow to risk huge investments in new plants and equipment. To
paraphrase economist Michael Drury of McVean Trading and Investments, without a surge in capital
spendingwhich is not happeningthis economic cycle will remain lackluster, but last longer.
I expect revisions to
the downside once all the final data is in. Economic Data Remain
Bleak The real problem with economic growth in this country is the
weak consumption. Americans are struggling and many still cant
afford basic necessities like food. As of January of 2015, over 46
million Americans were still using food stamps in the U.S. This
represents 14.5% of the entire U.S. population. (Source: U.S. Department of
(BEA). There are two more revisions to the first-quarter GDP numbers.
Agriculture, April 10, 2105.) A closer look at the GDP numbers reveals something worse than meager
Since the so-called recovery began for the U.S. economy, the
biggest influx in job creation has been in retail jobs and part-time
jobs. The individuals with these jobs are not making enough money
to make a positive impact on personal consumption. Outlook for 2015:
growth.
Lackluster To me, first-quarter GDP numbers are confirmation of the growth (or lack thereof) in the U.S.
economy. What the mainstream media and politicians have been telling us is happening just isnt true.
There is no real growth in the U.S. economy. Is it just me or does it seem that since the Federal Reserve
stopped printing paper money, the U.S. economy has stalled? After all, corporate earnings growth and
revenue growth both turned negative in the first quarter of 2015. The Federal Reserve is stuck between a
Starting last year, the Fed told the world that the U.S.
economy is doing better and that it would start to raise interest
rates. But now, in 2015, the economy has stalled. Does the Fed face
the embarrassment of being totally wrong on growth and cancel its
plan to raise rates or does it raise rates to save face? When it comes to
rock and hard place.
interest rates, I believe four things: 1) The Federal Reserve will raise rates to save face and show the world
that the U.S. economy is growing and that an interest rate hike is needed to cool that growth. 2) The Fed
will look at the growth in U.S. jobs as its key gauge of growth. The closer we get to a five-percent
unemployment rate, the quicker that rate increase will come. 3) The markets have already priced in a
quarter-point increase in rates. 4) A quarter-point increase in rates will have very little impact on the U.S.
economy. Its the increases after the first rate hike, if there are more, which will cause problems.
Given that the unemployment rate stands at 5.4 per cent at the
moment (the lowest level since May 2008) and may fall to 5 per cent
by the end of this year, weekly applications for unemployment
benefits are at nearly 15-year low and there are signs of stronger
wage growth, it is likely that consumers would feel more confident
to spend more aggressively in the next quarters of the year. Plunging
investment by companies, particularly in the energy sector as lower crude prices prompted oil producers to
pull back on new projects, weighed on the economy in the first quarter.
Business investment
fell at a 2.8 per cent annualised pace (a 4.7 per cent increase in the last quarter of
2014, for comparison). Spending on nonresidential structures, including office buildings and factories,
decreased 20.8 per cent, less than a 23.1 per cent annualised drop that was initially reported. Exports of
goods and services decreased 7.6 per cent, compared with an increase of 4.5 per cent in the last three
months of 2014. The drop was the result of a stronger dollar, which makes US goods more expensive for
overseas buyers, uneven overseas growth as well as a labour dispute at west coast ports, which slowed
activity there. Imports of goods and services, on the other hand, increased 5.6 per cent, compared with a
10.4 per cent increase in the October-December period. A weak trade showing knocked 1.9 percentage
points off the overall growth figure in the three months through March. The increase in private business
inventories added 0.33 percentage point to the first-quarter change in gross domestic product.
Exports
were hammered by a sharp rise in the dollars value, which makes
US goods more expensive overseas. The dollar has increased 15% in
the past year compared with a basket of overseas currencies.
Links
Generic
Bullrun hampers the entirety of the economic sector it
demolishes trust in financial markets (1AC)
WashingtonsBlog 13, 7-31-2013, "NSA Spying Directly Harms Internet
Companies, Silicon Valley, California ... And the Entire U.S. Economy,"
Washington's Blog, http://www.washingtonsblog.com/2013/07/nsa-spyingdirectly-harms-internet-companies-silicon-valley-california-and-the-entirenational-economy.html
Mass surveillance by the NSA may directly harm the bottom of line
of Internet companies, Silicon Valley, California and the entire
national economy . Money News points out: The company whose shares you
own may be lying to you while Uncle Sam looks the other way.
Lets step through this. I think you will see the problem. Fact 1: U.S.
financial markets are the envy of the world because we have fair
disclosure requirements, accounting standards and impartial courts.
This is the foundation of shareholder value. The company may lose money, but they
at least told you the truth. Fact 2: We now know multiple public
companies, including Microsoft (MSFT), Google (GOOG), Facebook
(FB) and other, gave their user information to NSA. Forget the
privacy implications for a minute. Assume for the sake of argument
that everything complies with U.S. law. Even if true, the businesses
may still be at risk. Fact 3: All these companies operate globally.
They get revenue from China, Japan, Russia, Germany, France and
everywhere else. Did those governments consent to have their
citizens monitored by the NSA? I think we can safely say no.
Politicians in Europe are especially outraged. Citizens are angry with the
United States and losing faith in American brand names. Foreign
companies are already using their non-American status as a
competitive advantage. Some plan to redesign networks specifically to bypass U.S.
companies. By yielding to the NSA, U.S. companies likely broke laws
elsewhere. They could face penalties and lose significant revenue .
Right or wrong, their decisions could well have damaged the business.
Securities lawyers call this materially adverse information and companies are required to disclose it. But
they are not. Only chief executives and a handful of technical people know when companies cooperate
with the NSA. If the CEO cant even tell his own board members he has placed the company at risk, you
can bet it wont be in the annual report. The government also gives some executives immunity documents,
according to Bloomberg. Immunity is unnecessary unless someone thinks they are breaking the law. So
apparently, the regulators who ostensibly protect the public are actively helping the violators. This is a new
and different investment landscape. Public companies are hiding important facts that place their investors
at risk. If you somehow find out, you will have no recourse because regulators gave the offender a get out
of jail free card. The regulatory structure that theoretically protects you knowingly facilitates deception
that may hurt you, and then silences any witnesses. This strikes to the very heart of the U.S. financial
system. Our markets have lost any legitimate claim to full and fair disclosure. Every prospectus,
quarterly report and news release now includes an unwritten NSA asterisk. Whenever a CEO speaks, we
must assume his fingers are crossed. Every individual investor or money manager now has a new risk
factor to consider. Every disclosure by every company is in doubt. The rule of law that gave us the mosttrusted markets in the world may be just an illusion. In a subsequent article, Money News wrote:
Executives at publicly traded companies are lying to shareholders and probably their own boards of
directors. They are exposing your investments to real, material, hard-dollar losses and not telling you. The
government that allegedly protects you, Mr. Small Investor, knows all this and actually encourages more of
it. Who lies? Ah, theres the problem. We dont know. Some people high in the government know. The CEOs
themselves and a few of their tech people know. You and I dont get to know. We just provide the money.
Since we dont know which CEOs are government-approved liars, the prudent course is to assume all CEOs
are government-approved liars. We can no longer give anyone the benefit of the doubt. If you are a money
manager with a fiduciary responsibility to your investors, you are hereby on notice. A CEO may sign those
Securities and Exchange Commission filings where you get corporate information with his fingers crossed.
Your clients pay you to know the facts and make good decisions. Youre losing that ability. For example,
consider a certain U.S. telecommunications giant with worldwide operations. It connects American
businesses with customers everywhere. Fast-growing emerging markets like Brazil are very important to its
future growth. Thanks to data-sharing agreements with various phone providers in Brazil, this company
has deep access to local phone calls. One day someone from NSA calls up the CEO and asks to tap into
that stream. He says OK, tells his engineers to do it and moves on. A few years later, Edward Snowden
informs Brazilian media that U.S. intelligence is capturing these data. They tell the Brazilian public. It is not
happy. Nor are its politicians, who are already on edge for entirely unrelated reasons What would you say
are this companys prospects for future business in Brazil? Your choices are slim and none. They wont
be the only ones hurt. If the U.S. government wont identify which American company cheated its Brazilian
partners, Brazil will just blame all of them. The company can kiss those growth plans good-bye. This isnt a
If U.S. disclosure standards are no better than those in the third world, then every domestic
stock is overvalued. Our rule of law premium is gone. This means a change for stock valuations and it
wont be bullish.
restore trust. Indeed, as we have repeatedly noted, loss of trust is arguably the main reason we are stuck
in an economic crisis notwithstanding unprecedented action by central banks worldwide. Economist
Daniel Hameresh writes: A number of economists have shown recently that income levels and real growth
depend upon trusttrust greases the wheels of exchange. In 1998, Paul Zak (Professor of Economics and
Department Chair, as well as the founding Director of the Center for Neuroeconomics Studies at Claremont
graduate University, Professor of Neurology at Loma Linda University Medical Center, and a senior
researcher at UCLA) and Stephen Knack (a Lead Economist in the World Banks Research Department and
Public Sector Governance Department) wrote a paper called Trust and Growth, arguing: Adam Smith
observed notable differences across nations in the probity and punctuality of their populations. For
example, the Dutch are the most faithful to their word. John Stuart Mill wrote: There are countries in
Europe . . . where the most serious impediment to conducting business concerns on a large scale, is the
rarity of persons who are supposed fit to be trusted with the receipt and expenditure of large sums of
money (Mill, 1848, p. 132). Enormous differences across countries in the propensity to trust others survive
Tech Cooperation
NSA decryption destroys tech cooperation with firms
abroad which results in billions lost
Jon Swartz, 14, 2-28-2014, "NSA surveillance hurting tech firms'
US tech competitiveness
Bullrun has sacrificed US tech competitiveness. Foreign
customers are shunning US companies and governmental
failure to curtail the policy has resulted in massive
competitiveness gaps (1AC)
Daniel Castro and Alan McQuinn June 2015, [Beyond the USA
Freedom Act: How U.S. Surveillance Still Subverts U.S. Competitiveness
http://www2.itif.org/2015-beyond-usa-freedom-act.pdf?
_ga=1.114044933.369159037.1433787396 -kw]
Almost two years ago, ITIF described how revelations about pervasive digital surveillance by the U.S.
intelligence community could severely harm the competitiveness of the United States if foreign customers
turned away from U.S.-made technology and services.1 Since then,
In security, the worst casethe thing you most want to avoidis thinking you are secure when youre not.
And thats exactly what the NSA seems to be trying to perpetuate. Suppose youre driving a car that has
no brakes. If you know you have no brakes, then you can drive very slowly, or just get out and walk. What
is deadly is thinking you have the ability to stop, until you stomp on the brake pedal and nothing happens.
Its the same way with security: if you know your communications arent secure, you can be careful about
So the
problem is not (only) that were unsafe. Its that the N.S.A. wants
to keep it that way. The NSA wants to make sure we remain
vulnerable. Of course, we have been assured by Internet
companies that we are safe. Its always wise to be wary of vendors
security assurancestheres a lot of snake oil out therebut this
news calls for a different variety of skepticism that doubts the
assurances of even the most earnest and competent companies. This
is going to put U.S. companies at a competitive disadvantage,
because people will believe that U.S. companies lack the ability to
protect their customersand people will suspect that U.S.
companies may feel compelled to lie to their customers about
security.
what you say; but if you think mistakenly that youre safe, youre sure to get in trouble.
Silicon Valley
Bullrun severely hampers US competitiveness particular,
European countries have massive consequences for
Silicon Valley
Chang 14 [Andrew: graduated from the Medill School of Journalism at
Northwestern University and has written for the St. Petersburg Times, the
Oregonian and the San Jose Mercury News, Tech leaders lash out at
government's electronic spying, Oct 8, 2014
http://www.latimes.com/business/la-fi-silicon-valley-nsa-20141009story.html // mm]
Tech leaders said they feared being shut out of the Internet economy
if foreign countries, suspicious of the U.S. government's actions, opt
for "data localization," meaning they would mandate that their
citizens' data be stored within their own countries. Such a move
would cripple [hurt] U.S. tech firms used to operating on a global
scale. A shutout by European countries in particular would have
enormous consequences for Silicon Valley , they said. Colin Stretch,
Facebook's general counsel, said data localization is "fundamentally
at odds with the way the Internet is architected" and would mean
slower and less efficient servers because companies wouldn't be
able to take advantage of cloud-based storage systems. "More access
points around the world make it harder for your network to be secure, so it makes us more vulnerable, not
less," Stretch said. "Data localization takes us exactly in the wrong direction." During the hourlong
discussion, the tech companies stressed that they had been willing to comply with the government when it
was making legal requests and going through traditional judicial channels to access their data. But the
revelations of widespread spying angered them and was an overreach of authority, they said, and now the
They'd also
like to see the government get more involved in rebuilding trust with
Americans and foreign countries. Ramsey Homsany, general counsel
of Dropbox, said the government needs to show that the U.S. is a
country that respects privacy, especially because people share
personal information photos, life plans, medical records online.
"We have built this incredible economic engine in this region of the
countryand [mistrust] is the one thing that starts to rot it from the
inside out," he said. "Not to use dramatic language, but I think it is
that serious, and I think we really need to see the government also
doing its part to help lead on that issue." The issue of government
surveillance has been a hot topic in Silicon Valley, and companies
have aggressively pushed for better safeguards of their users'
private information and for more transparency about data requests.
companies are working to encrypt their data to prevent future abuses from occurring.
A day before the roundtable discussion, Twitter Inc. filed suit against the Department of Justice and the FBI,
saying it was being unconstitutionally prohibited from revealing the scope of government surveillance of its
users.
http://www.economist.com/news/leaders/21586345-covertly-weakeningsecurity-entire-internet-make-snooping-easier-bad // emb].
PROPERLY implemented strong crypto systems are one of the few things that you can rely on, declared
Edward Snowden, the former computer technician at Americas National Security Agency (NSA) responsible
for leaking a trove of documents about his erstwhile employers activities, in an online question-andanswer session in June. The latest revelations, published on September 5th by the Guardian, the New York
Times and ProPublica, explain his careful choice of words .
dealers, tax evaders and foreign firms, none of which pose a threat to national security. NSA employees
have used its systems to spy on their former lovers. Mr Snowdens ability to walk off with a stash of NSA
documents is grave evidence of a woeful lack of internal controls. He has gone public, but could just as
easily have put his stolen documents to criminal useas others in his position may already have done.
Barack Obama says he welcomes debate about the activities of Americas spooks. There are indeed
But any
deliberate subversion of cryptographic systems by the NSA is simply
a bad idea, and should stop. That would make life harder for the spooks, true, but there are plenty of
arguments to be had about the appropriate levels of snooping and degrees of oversight.
other more targeted techniques they can use that do not reduce the security of the internet for all of its
users, damage the reputation of Americas technology industry and leave its government looking
untrustworthy and hypocritical.
Consumer Trust
Bullrun has severely compromised consumer trust of US
companies
Paganini 13 [Pierluigi: Chief Information Security Officer at Bit4Id, firm
The
Intelligence Agency has inducted vendors and manufactures to
include backdoors in their products or to disclose related encryption
keys to allow the access data, this is the core of the Bullrun program .
Snowden revelations are causing the collapse of many certainties, last in order of time is the integrity of
encryption standards, according the popular newspapers NSA has worked to undermine the security of
those standards.
Impacts
California Scenario
NSA surveillance hurts Californias economy
Mathews 13 Joe Mathews. July 13, 2013. The San Diego Union-Tribune. Could
NSA spying hurt California economy?
http://www.utsandiego.com/news/2013/jul/13/could-nsa-spying-hurt-californiaeconomy/all/?print
California and its businesses have a problem. Its called the National
Security Agency. That may sound provincial. The debate over the massive NSA
surveillance programs disclosed by Edward Snowden is a national
and global matter, not just a California concern. But the disclosures and the U.S.
governments reaction to them hit at the heart of Californias economic life .
Whether you believe the massive collection of phone and electronic
records is a scary invasion of privacy or a necessary defense against
terrorism, you should worry about our states exposure to the
fallout. The problem for California is not that the feds are collecting all of our communications. It is
that the feds are (totally unapologetically) doing the same to foreigners, especially
in communications with the U.S. California depends for its livelihood
on people overseas as customers, trade partners, as sources of
talent. Our leading industries shipping, tourism, technology, and entertainment could not survive,
much less prosper, without the trust and goodwill of foreigners. We are home to two of the worlds busiest
container ports, and we are a leading exporter of engineering, architectural, design, financial, insurance,
legal, and educational services. All of our signature companies Apple, Google, Facebook, Oracle, Intel,
Hewlett-Packard, Chevron, Disney rely on sales and growth overseas. And our families and workplaces
are full of foreigners; more than one in four of us were born abroad, and more than 50 countries have
diaspora populations in California of more than 10,000. Hollywood and Silicon Valley are as important as
Washingtons politicians and foreign policy wonks, if not more so, in shaping the image of the United States
program, which taps into online communications, could not be used to intentionally target any U.S.
citizen. Such statements should be chilling to Californians. Will tourists balk at visiting us because they
Facebook, Google, Skype, and Apple among them that have been accomplices (they say unwillingly)
when our own U.S. Sen. Dianne Feinstein is backing the surveillance without acknowledgment of the huge
potential costs to her state. Its time for her and House Minority Leader Nancy Pelosi, who has been nearly
reminders should take the force not merely of public statements but of law. California has a robust history
of going its own way on vehicle standards, energy efficiency, immigration, marijuana. Now is the time
for another departure this one on the privacy of communications. Im not a big fan of ballot measures,
since they often only add more complexity to Californias complicated system. But on this issue, we need
California anchors U.S. economy This is not an article about California. It is about you, in
whatever state you live. Californias economy is so large and impacts so many
other businesses that its potential collapse due to a water crisis will impact the
pocketbooks of most Americans. California has a $2.2 trillion annual
economy. That makes California the seventh largest economy in the
world. For all the greatness of Texas, the California economy is
approximately twice the size. Californias companies are the worlds
technology leaders. Google, Apple, Facebook, Twitter, Cisco, Disney,
Hewlett Packard, Tesla and Solar City all have their corporate
headquarters in California. Little know Atomic General located in San
Diego is a world leader in military drones. San Francisco and San
Diego rank No. 1 and No. 3 among the top 10 biopharma clusters in
the U.S. California is also a global breadbasket: It is the worlds fifth
largest supplier of food. The California agriculture industry is highly efficient, and the state is the largest
food producer in the U.S., with only four percent of U.S. farms. Californias crop diversity is world class, with the state
growing over 450 different crops. Crops exclusively grown by California in the U.S. include almonds, artichokes, dates,
olives, raisins, pistachios and clover. The state also produces more than 86 percent of all lemons and 94 percent of all
processed tomatoes in the U.S. You might want to drink to Californias agricultural success by having a glass of California
California is the largest federal tax payer among U.S. states. The
state also pays more in federal taxes than it receives in federal
spending.
27.1
million U.S. workers owe their jobs to economic activity supported
by advanced industries. Directly and indirectly, then, the sector supports almost 39 million
jobsnearly one-fourth of all U.S. employment. In terms of the sectors growth and
change, the total number of jobs in the sector has remained mostly flat since 1980 but its output
has soared. From 1980 to 2013 advanced industries expanded at a rate of 5.4 percent annually30
This means that in addition to the 12.3 million workers employed by advanced industries, another
percent faster than the economy as a whole. Since the Great Recession, moreover, both employment and
the rest of the economy. Advanced services led this post-recession surge, and created 65 percent of the
new jobs. Computer systems design alone generated 250,000 new jobs. Certain advanced manufacturing
industriesespecially those involved in transportation equipmenthave also added thousands of jobs
after decades of losses.
Banks K2 US Econ
Banks are key to the United States econ sector
Keating 13 [Frank Keating, President and CEO of the American bankers association, Banks of all
sizes play key role in our economy, 4/19/13, http://thehill.com/blogs/congress-blog/economy-abudget/292627-banks-of-all-sizes-play-key-role-in-our-economy
US K2 World Econ
U.S. key to world economy
Lagrade 13 September 13, 2013. International Monetary Fund. Strong U.S. Economy,
Strong Global EconomyTwo Sides of Same Coin
http://www.imf.org/external/pubs/ft/survey/so/2013/new091913a.htm
Signs of global economic recovery, but growth remains subdued U.S. recovery taking hold, private sector
leading the way Job creation key ingredient of domestic and global economic recovery In a world of
increasing economic interconnections,
recovery is greater than ever , IMF Managing Director Christine Lagarde said in a speech
What happens
elsewhere in the worldbe it the success of recovery in Europe or the continued smooth
functioning of supply chains in Asiamatters increasingly for the United States,
Lagarde said. The converse is also true. What happens here matters
to business leaders at the U.S. Chamber of Commerce in Washington, D.C.
increasingly for the global economy. Her remarks, which focused on the
interplay between the global economy and the U.S. economy, also
highlighted the need to find joint solutions to secure a lasting,
balanced and widely shared global recovery. Job creation is a
critical ingredient of any economic recovery, domestic or global, she
emphasized. Businesses have a key role to play, Lagarde said, but at the same
time, policymakers have an important responsibility to help shape
the environment in which businesses and citizens can thriveand
jobs can be created. Lagarde said that global growth remains subdued, while acknowledging
that the global economic environment is changing. She emphasized that economies are moving at
different speeds and that the fruits of growth are not evenly shared, both in the United States and other
countries. The U.S. economy is growing and, after a long time, so is the Euro Area. In Japan, aggressive
policy support and the ongoing reform process is helping to spur growth. The emerging market economies,
on the other hand, are slowing. For some, this may be a shift toward more balanced and sustainable
growth, Lagarde told the audience. For others, it reflects the need to address imbalances that have made
them more vulnerable to the recent market turbulence. Reinforcing the point about global
interconnections, Lagarde cited the IMFs recent spillover analysis, which suggests that if the worlds five
major economies were to work together to adopt a more rigorous, comprehensive, and compatible set of
policies, it could boost global GDP by about 3 percent over the longer run. U.S. recovery gaining strength
is still modestwell under 2 percentit should accelerate by a full percentage point next year, Lagarde
mixed picture, with employment remaining well below pre-crisis levels. The issue of jobs remains
paramount, said Lagarde, noting that jobs and growth is an increasingly important component of the IMFs
policy advice. Lagarde highlighted three key recommendations for U.S. policymakers, drawn from the
IMFs most recent assessment of the U.S. economy. Fix public finances. Fiscal consolidation could be
slower in the short run, but more action is needed to reduce long-run pressures on the budget. Lagarde
also warned that political uncertainty over the budget and debt ceiling were not helpful to the recovery. It
is essential to resolve this, and the earlier the better, she said, for confidence, for markets, and for the
real economy. Appropriately calibrate monetary policy. When the time comes, exit from unconventional
monetary policy should be gradual, tied to progress in economic recovery and unemployment, and should
be clearly communicated and in a dialogue. Complete financial sector reform. While there has been
progress on this front, attention needs to focus on the outstanding danger zones, such as derivatives and
the
U.S. in the global economy, noting that the economy accounts for 11 percent of
global trade and 20 percent of global manufacturing. The countrys
global financial ties run deep too, she said. Foreign banks hold about
$5.5 trillion of U.S. assets, and U.S. banks hold $3 trillion of foreign
shadow banking. Global interconnections and role of IMF Lagarde underscored the unique role of
assets. While these interconnections have great benefits for the United States, they are not
without risks, Lagarde cautioned, referring to the collapse of Lehman Brothers five years ago that ushered
is
important for the global membership. Our policy advice, for exampleincluding in
in a harsh new reality across sectors, countries, and the world. That is why an effective IMF
core areas like exchange rates or external imbalanceshas helped to prevent or to ease the hardship of
crises around the world, said Lagarde. That, in turn, has helped reduce the possible negative fallout for
the U.S. and for all countries.
the periphery, but the rest of Europe will perform considerably below trend. France and Italy, which account for a third of
than they were in May 2013, when the then Federal Reserve chairman Ben Bernanke seemed to indicate that the US was
ready to raise interest rates. All in all, Latin America is ready, said Luis Alberto Moreno, President, Inter-American
China, the
worlds second largest economy, is slowing, but new engines of growth and structural
Development Bank, Washington DC; World Economic Forum Foundation Board Member. GDP growth in
reforms promise to put the economy on a more sustainable path, said Li Daokui, Dean, The Schwarzman Scholars
Program, Tsinghua University, People's Republic of China. The slowdown is temporary. If the restructuring is successful,
elimination or easing of regulatory barriers and changes in labour policies, including encouraging women to rejoin and
realize their full potential in the workforce.
said Amari.
only picked up sharply in the past few quarters, both based on GDP
improvement and employment gains. The jobless rate in the United
States, at 6.7%, is still well above the average when the economy is
in strong recovery. American consumer activity is still about two-thirds of GDP, and the
foundations of that activity are still modest. The World Bank reports in its new Global Economic Prospects
analysis that: Growth prospects for 2014 are, however, sensitive to the tapering of monetary stimulus in
the United States, which began earlier this month, and to the structural shifts taking place in Chinas
economy. China likely will continue to step into the limelight as its cements it position as the worlds
second largest nation as measured by GDP, and one that is growing much faster than the United States.
necessary to help the world average. Kaushik Basu, the senior vice president and chief economist at the
World Bank, said: Global economic indicators show improvement. But one does not have to be especially
astute to see there are dangers that lurk beneath the surface. The Euro Area is out of recession but per
capita incomes are still declining in several countries. We expect developing country growth to rise above
5 percent in 2014, with some countries doing considerably better, with Angola at 8 percent, China 7.7
percent, and India at 6.2 percent. But it is important to avoid policy stasis so that the green shoots dont
turn into brown stubble. Europe was so badly bloodied that some of its nations may not recover for years,
if at all. Monetary policy has been among the most important triggers of U.S. economic improvement. And
the World Bank has decided to emphasize that as the recoverys largest single risk.
system and enact reforms after the worst recession in decades. He implored the G-20 leaders to seize the
opportunity to ensure a strong and durable recovery. The summit gets under way on Thursday. When all
nations do their part emerging no less than advanced, surplus no less than deficit we all benefit from
higher growth, the president said in the letter. The divisions between the economic powers was evident
when Chinas leading credit rating agency lowered its view of the United States, a response to the Federal
Reserves decision to buy more Treasury bonds. Major exporting countries such as China and Germany are
complaining that the Federal Reserves action drives down the dollars value and gives U.S. goods an edge
in world markets.
bellwether for the global economy. The 2000-02 and 2008-09 global
recessions both had their genesis in the U.S., with the bursting of
the technology bubble and housing collapse respectively. But Wall
Street can also be the catalyst for a global expansion, as is evident
from two examples in the current millennium. The 2003-07 global
economic expansion commenced with a huge rally on Wall Street in
March 2003. Six years later, amid the biggest recession since the
1930s depression, the climb back from the economic abyss started
with a massive Wall Street rally in March 2009. Why Wall Street
reacts to economic indicators Prices of stocks and other financial
assets are based on current information, which is used to make
certain assumptions about the future that in turn form the basis for
estimating an assets fair value. When an economic indicator is released, it would
usually have little impact on Wall Street if it comes in as per expectations (or whats called the consensus
forecast or analysts average estimate). But if it comes in much better than expected, it could have a
positive impact on Wall Street; conversely, if it is worse than expectations, it would have a negative impact
on Wall Street. This positive or negative impact can be measured by changes in equity indices like the Dow
Jones Industrial Average or S&P 500, for instance.
Wall Street
derivatives are WMDs Warren Buffett warned in 2002 that the
derivatives developed by Wall Street were financial weapons of mass
destruction, and this proved to be the case during the U.S. housing
believed to have contributed to the meltdown in mortgage-backed securities in 2008-09.
! WW3
Economic collapse leads to a WW3
Kreitner 11 Ricky Kreitner (Business Insider Politics) August 8, 2011. Business
Insider. Serious People Are Starting To Realize That We May Be Looking At World War
III http://www.businessinsider.com/serious-people-are-starting-to-realize-that-wemay-be-looking-at-world-war-iii-2011-8
The statement released Friday by Standard & Poor's explaining its downgrade of the United States' credit
rating expressed greater concern about the inability of the American political system to handle
troublesome economic realities than it did about those economic realities themselves. It read: "The
downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking
and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree
more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011." Thus,
what directly prompted the historic decision to downgrade the U.S. credit rating was worsening political
dysfunction, not the "economic challenges" which Standard & Poor's described as "ongoing." The political,
even geopolitical, repercussions of those challenges can only be expected to grow. Noting liberal despair
over
conservative skepticism that traditional tools will be effective, John Judis of The New Republic argues that a
global depression far longer and more severe than anyone expected now seems nearly impossible to
avoid. Judis believes that the coming "depression"
upheaval and institutional collapse. "As the experience of the 1930s testified , a
prolonged global downturn can have profound political and
geopolitical repercussions . In the U.S. and Europe, the downturn has already inspired
unsavory, right-wing populist movements. It could also
chain reaction of a default has been avoided by bailouts. Countries are not closing down their borders or
But the
fundamental problem the spiral downwards caused by confidence
crises and ever rising interest rates is exactly the same now as it
was in 1931. And as Italy and Spain come under attack, we are reaching the limit of how much that
sticking plaster can heal. Tensions between European countries unseen in
decades are emerging." Knowles wrote that post three days ago. Since then it has become
arming their soldiers they can agree on some solution, if not a good solution.
abundantly obvious that Europe will soon become unwilling or unable to continue bailing out every country
with a debt problem. Meanwhile, the U.S. economy continues to chug along, to the extent it is chugging at
all, on the false security offered by a collective distaste for one ratings agency and its poor mathematics.
That can't continue forever. The next few months will show S&P's downgrade to have been too little and
The American
political crisis will only worsen; the "super-committee" will utterly
fail, true to design. Soon enough, we may all wake up to a "reckoning"
truly deserving of the name.
too late, rather than too drastic and too soon. The Eurozone will fall apart.
Foreign Investment
UQ Silicon Valley
Silicon Valley is booming now but investment is slowing
internet companies are key
Avalos 15
George, reporter for San Jose Mercury News, Silicon Valley powers to record job boom, but surge produces
income and gender gap, 2/3/15, http://www.mercurynews.com/business/ci_27449198/report-record-jobboom-silicon-valley-but-surge SJE
The Silicon Valley economy is red hot and the growth is intensifying,
according to the latest Joint Venture Silicon Valley Index released Tuesday, but the
surge has been accompanied by a yawning income and gender gap. "The hot economy is
getting hotter," said Russell Hancock, president of Joint Venture Silicon Valley. "It is really
extraordinary. We are blowing through every economic record." Silicon
Valley, defined as Santa Clara County, San Mateo County and Fremont, added about 58,000
jobs in 2014, a 4.1 percent annual jump measured over a 12-month period that ended in June. The
job gains last year were greater than in 2013, when Silicon Valley added 44,000 jobs, according to the
index, the primary annual study of the region.
napkin, you would get financing," Hancock said. "Back then, the venture capitalists were tripping over
themselves to finance startups." This time around, Hancock said, the job gains, particularly in
technology, are sustained; established firms such as Google and Apple have shown consistent growth; and
standard supported by the International Organisation for Standardisation and used in computer system worldwide.
As the encryption key used random numbers, it is impossible to form a dictionary of possible key values, forcing the
hacker to go through all possible key values. In 2007, Bruce Schneier, a cryptographer, picked up on Shumow and
Fergusons research and suggested that it is most likely that the NSA would use a scheme similar to this proposal, as it
would be significantly faster to implement. In his Wired article, Schneier argued: There are a bunch of constants fixed
numbers in the standard used to define the algorithms elliptic curve What Shumow and Ferguson showed is that
these numbers have a relationship with a second, secret set of numbers that can act as a kind of skeleton key. If you know
the secret numbers, you can predict the output of the random-number generator after collecting just 32 bytes of its
output. To put that in real terms, you only need to monitor one TLS internet encryption connection in order to crack the
security of that protocol. If you know the secret numbers, you can completely break any instantiation of Dual_EC_DRBG.
It has recently been alleged that the NSA has done exactly this to get past the Internets encryption system. A forced hand
Microsoft, as reported by Greenwald, Ball and Borger, for example, knowingly installed means for the NSA to defeat the
companys own security measures including pre-encryption access to cloud-hosted email, access to Outlook.coms web
chats, access to its cloud storage service SkyDrive and access to Skypes call feeds (Skype is a fully-owned subsidiary of
Microsoft). Skype, prior to its 2011 purchase by Microsoft, ran Project Chess which made its transmission feeds easier
legally and technically to be eavesdropped on by law enforcement and security agencies. The program was actively
denied by Skype and Microsoft officials until the the New York Times published revelations on the program in June. For the
describing a briefing about the NSAs accomplishments for employees of its British counterpart, the Government
Vast amounts of
encrypted Internet data which have up till now been discarded are
now exploitable. We are investing in groundbreaking cryptanalytic capabilities to defeat adversarial
Communications Headquarters (GCHQ). Cryptanalytic capabilities are now coming online.
cryptography and exploit Internet traffic, the director of national intelligence, James Clapper, wrote in his budget request
for the current year. In response to the Guardians coverage, Microsoft asserted in a statement: We have clear principles
which guide the response across our entire company to government demands for customer information for both law
enforcement and national security issues. First, we take our commitments to our customers and to compliance with
applicable law very seriously, so we provide customer data only in response to legal processes. Second, our compliance
team examines all demands very closely, and we reject them if we believe they arent valid. Third, we only ever comply
with orders about specific accounts or identifiers, and we would not respond to the kind of blanket orders discussed in the
press over the past few weeks, as the volumes documented in our most recent disclosure clearly illustrate. Finally when
we upgrade or update products legal obligations may in some circumstances require that we maintain the ability to
provide information in response to a law enforcement or national security request. There are aspects of this debate that
we wish we were able to discuss more freely. Thats why weve argued for additional transparency that would help
everyone understand and debate these important issues. It has been alleged that GCHQ has also sought infiltration into
Google, Yahoo and Facebook. Google vehemently denies that it granted governmental access to its networks or systems
the NSA
has access to every Internet-connected device from commerce and
banking services to virtual private networks to foreign computer
networks to iPhones, Android-enabled phones and BlackBerry phones. This effectively kills the
expectation of communication privacy. If back doors are built into systems by the N.S.A.,
and says there is no evidence suggesting a system breach.The weight of all of this is shocking. Effectively,
who is to say that other countries spy agencies or hackers, pirates and terrorists wont discover and exploit them?,
reported the New York Times on the issue. The risk is that when you build a back door into systems, youre not the only
one to exploit it, said Matthew D. Green, a cryptography researcher at Johns Hopkins University. Those back doors could
work against U.S. communications, too. This seemingly continuous drama about the NSAs overreaches comes into play
due to conflicting obligations under a single organization. While the National Institute of Standards and Technology the
federal agency charged with the standardization of official measures in the United States officially institutes the
nations encryption standards, the NSA, which is charged with ensuring the safety of the nations communications,
unofficially consults the NIST on its official standards. As the NSA also carries the Reagan-era mandate of monitoring
electronic communications, this creates a blatant conflict of interest.
problem. First, if Internet traffic cannot be ruled safe even if the transmission is secure, trust of the Internet
suffers and Internet commerce may take a hit. Cryptography forms the basis for trust
online, said Bruce Schneier, an encryption specialist and fellow at Harvards Berkman Center for Internet and
Society. By deliberately undermining online security in a short-sighted effort to eavesdrop, the NSA is undermining the
very fabric of the internet. Classified briefings between the agencies celebrate their success at defeating network
security and privacy. Loss
expose all users of a backdoored system, not just intelligence agency targets, to
heightened risk of data compromise. This is because the insertion of backdoors in a software
product, particularly those that can be used to obtain unencrypted user communications or data, significantly increases
the difficulty of designing a secure product. Snowden, however, feels confidence in the security of encryption to continue
to vouch for it, as he did in a June live Q&A session for the Guardian. Encryption works. Properly implemented strong
crypto systems are one of the few things that you can rely on, Snowden pointed out, before stating that the problem is
not the technology, but the NSAs attempts to game the system by compromising security on either end of the
communique. Unfortunately, this is a problem that cant solve itself. The NSA is legally obligated to continue its programs
as defined, politicians have little incentive to push for reform despite public outcry and the mentality of a world of
potential enemies will continue to fuel the suspicion that such espionage efforts as the NSAs are needed for national
judicial precedent, wrote Ladar Levison, founder of Lavabit, after the closure of his service after refusal to co-operate with
the NSA, I
Bullrun
raises the bar higher over our heads again. For further information, please check
transmission of sensitive data. Just like the enormous wave of cyberattacks from China,
out Bruce Schneier's "NSA surveillance: A guide to staying secure." Social and Economic Impact
Assessment Security pros shouldnt be surprised about the NSAs mission or capabilities. However, the
extent of PRISM's electronic surveillance conducted in apparent
Constitution and the sensibilities of our foreign friends and customers is shocking
to me. Although some spin doctors argue that the latest PRISM disclosures shouldn't worry consumers,
articles. But I wrote my posts on Liberty and/or Security and A Letter to Congress as patriotic advocacy for
With
Bullrun, the reported attacks on the private property of IT vendors
to weaken their cryptographic modules or place backdoors are also
surprising. We know that intelligence agencies sometimes get into gray areas, but this
apparent no-holds-barred cyber-arms race is even worse than we
thought. I find the possible disregard for the rule of law disturbing,
and believe that the loss of trust in U.S. vendors will wreak havoc
the U.S. to change the dangerous course it is on, as it has done after other crises in its past.
with services being such a big part of the U.S. economy, the
impact of PRISM disclosures on U.S. exports could be large. Service
providers in other countries can differentiate themselves as not being
located in the U.S. and not being subject to U.S. data seizures under
writes that
Patriot Act or FISA legislation. From hundreds of conversations with European, Canadian and other non-U.S.
customers I can personally attest that this is a very real issue .
killer, something that politicians would rail against if more broadly recognized. I've written in Liberty
and/or Security and The Constitution and the Cloud that the U.S. needs to start using search warrants in
the electronic era; modern technology could enable this to be done in a practical manner for efficient law
enforcement; and the result would preserve both citizen rights and government accountability. In this post,
its paper "APT1: Exposing One of Chinas Cyber Espionage Units." The costs of Chinese cyber-attacks to
the U.S. have indeed been large. Decades of competitive advantages in defense, manufacturing and other
industrial sectors have been reduced to years or eroded entirely. China has arisen as an economic
powerhouse and some say this will be the Chinese century. But Security Curve's post also quotes from
Forbes: " Trust
almost impossible to regain ." To that point, both the U.S. and China have
lost trust of potential customers for their industries , and this will lead to job
losses. In China's case, the relentless cyber-attacks and product cloning practices by unscrupulous
companies have cost it whatever trust many businesses that locate offshore manufacturing there had in
the country. I can't tell you how many companies have asked me how to protect against "advanced
commodity products with no trade secrets to lose, and pretty much nobody takes anything more than a throwaway laptop
there. Industrial espionage has certainly benefited China, but the costs to China may be rising. Loss of trust could be one
the reasons the country's amazing growth rate is slowing. And with more information on the scale of cyber-attacks coming
out every day as Western industries and countries redouble their efforts on community-based defense, perhaps it will
increasingly become possible to attribute with some degree of confidence at least some attacks to specific individuals or
companies that have taken or used stolen electronic data. This could enable injured parties to levy sanctions or lawsuits
against those Chinese companies with interests located in Western countries. To wit, security data on cyber-attacks is
increasingly being shared across Western enterprises, vendors, service providers and entire industry sectors or countries
because the U.S. has enjoyed tremendous goodwill across the world as the birthplace of modern
I often pushed back that we were being singled out unfairly because other democracies have their Patriot Act equivalent
enabling legislation as well and would certainly use it if they were attacked and plotted against to the scale that we have
been and still probably are. But PRISM confirms at least some of my foreign colleagues' worst fears on U.S. surveillance;
specifically, it's been disclosed that the metadata (who, when and where) of their electronic communications have been
secretly vacuumed up on a large scale. Loss of trust may be a progressive process that reaches a tipping point where the
U.S. starts to lose increasing numbers of exports, and therefore, jobs. For example, Sweden recently forbade its
government agencies from hosting data with Google. Similarly, some Canadian legislation prohibits provincial
Usually,
foreign leaders steer clear of the differences they have with the
technology companies theyre courting. No need to inflame tensions ,
after all, over issues like privacy , human rights, and regulations. Hollandes government is
the way we consume, we produce the way we deal with health or technology in order to make the world a better place.
probing whether technology companies like Google, Facebook, and LinkedIn LNKD -0.40% illegally dodged
investigations. Facebook would only give a vague statement along the lines of, Lets all work together. We welcomed the opportunity to
meet with President Hollande and some members of his government for an open discussion about France and its role in fostering innovation
and attracting foreign investment, Facebook said. The phenomenon of foreign leaders flocking to Silicon Valley isnt entirely new. Franois
Mitterand, another French president, toured Silicon Valley in 1984, during which his wife Danielle, peppered Steve Jobs with uncomfortable
questions about worker welfare like overtime pay and vacations rather than gushing about the technology, according to Walter Isaacsons
2011 biography of Jobs. Before Silicon Valleys rise, foreign leaders visited factories in the Rust Belt. Now, its the same idea, just a different
growth industry. Silicon Valley leaders reciprocate some of the attention they receive. When they go abroad, they often find a warm reception.
Mark Zuckerberg, Facebooks chief executive, met with Prime Minister Shinzo Abe during a trip to Japan in 2012. And last year, both he and
Sheryl Sandberg, Facebooks chief operating officer, met with South Koreas President Park Geun-hye. Meetings arent always courtesy calls. In
some cases, some real business-diplomacy is done. Last year, in a joint meeting in Paris with Hollande, Googles Schmidt signed an agreement
in which the company pledged to pay $80 million to help French media companies build their presence online. The deal settled a dispute in
which French news outlets accused Google of stealing their content by showing snippets of their work in search results. What do
Silicon
Valley leaders get in return? Plenty. Friends in high places can only help
when it comes time for their governments to draft regulations about
intellectual property, immigration, and permitting , for example. Actual
business deals are few and far between, at least in the short term. But the meetings can sometimes get
the ball rolling.
FDI K2 Growth
Foreign Investment is key to Growth and Development
Global Agenda Council on Global Trade and FDI 15 Global Agenda Council on Global Trade and FDI
Foreign Direct Investment as a Key Driver for Trade, Growth and Prosperity: Weforum The Case for a
Multilateral Agreement on Investment http://www.weforum.org/reports/foreign-direct-investment-keydriver-trade-growth-and-prosperity-case-multilateral-agreement
FDI K2 Econ
FDI Key to productivity, manufacturing, global
engagement, productivity growth and jobs
Saha Fikri 14 (Saha, Devvashree, [Senior Policy Analyst and Associate
Fellow, Metropolitan Policy Program at Brookings Institution], Fikri, Kenan,
[Senior Policy Analyst at the Metropolitan Policy Program, Brookings Institute,
World Bank Group], FDI Matters . . . For Reasons Beyond Capitol and Jobs,
7/7/14, http://www.brookings.edu/blogs/the-avenue/posts/2014/07/07-fdimatters-capital-jobs-fikri-saha)
We recently released a new paper on foreign direct investment (FDI) in U.S. metro areas that
reported that foreign-owned companies employ 5.6 million workers across the United States. We wouldnt
fault even our most worldly followers for asking So what? though. What makes this subset of companies
active in the U.S. market special? The answer is that these companies make inordinate contributions to
national and regional economic development. In todays rapidly globalizing economy, their importance is
base. Over 18 percent of all U.S. manufacturing workersthats nearly one in fivenow work for a foreign
company, up from 12.5 percent in the 1990s. R&D .
Foreign-owned companies
contribute 18.9 percent of all corporate dollars spent on R&D in the
United Statesover three times their share of value added. This $45
billion dollars annually adds fuel to the entire countrys innovation enterprise.
Exports. In 2011 foreign firms exported nearly $304 billion worth of
goods from the United States, accounting for one-fifth of all U.S. goods exports. What is
more, FDI indirectly boosts exports by influencing the export decisions of
local firms, suppliers, and competitors. Productivity spillovers. When foreign
companies enter a market, they bring with them new production
technologies, knowledge, and management practices. These
generate what economists call spillovers as they spread through supply
chains, labor markets, product markets, and to competitors.
Economists estimate that such spillovers from FDI alone accounted
for 12 percent of U.S. productivity growth between 1987 and 2007. FDI via
mergers and acquisitions offers a distinct set of micro-level benefits too. Such
transactions can provide needed capital for expansion and
technology development. Productivity, job quality, and management
practices all improve. Exports often increase with access to the parent companys
international distribution network, and local outlooks become global. Finally , FDI matters for
important but less tangible reasons of global engagement. In a world where competition is
increasingly global and innovation can happen anywhere regions need to engage
actively and directly with the global economy not only to get ahead, but also to prevent falling behind. FDI
with 85 percent of
global growth through 2019 projected to occur outside the United
States, global engagement means big opportunity.
plays no small part in integrating U.S. regions into global networks. And
on investments and
trade that is a major part of any vision for trade expansion and
much better job opportunities for our youth. Mr. Greenidge is on the spot when he
made this announcement because , check the history, from Rome to the USA, foreign
investment and trade were the driving forces of development and those
see that Mr.Greenidge stated that foreign embassies will concentrate
periods where these factors lagged and retarded were periods of declining standards of living. Anywhere
on this planet, trade and investment are the factors which open new avenues to the creation of wealth and
with Guyanas huge reserves of commodities, from food production and mineral extraction to water
resources and everything in between,using foreign and local new technologies, we can become selfsufficient- the very essence of being a nation .
form of a greenfield establishment that creates something from scratch or a merger or acquisition
it ultimately
translates into output, jobs, exports, and R&D on American soil data
on which are captured in the Bureau of Economic Analysis operations
statistics on majority-owned U.S. affiliates of foreign firms . The vast
(M&A) of a sufficiently large stake in an existing enterprise. Whatever the form,
majority of U.S. affiliates of foreign firms involve at least a 50 percent foreign ownership stake, and BEA
publishes its most detailed operational data on these majority owned firms, which will be referred to as
U.S. affiliates of multinational companies or affiliates from here on. 16 Between 2010 and 2011, the
value-added production of affiliates rose 11.4 percent to $736 billion. This output accounted for 4.7
percent of total U.S. private output. These firms employed 5.6 million people in the United States, or 4.1
percent of private sector employment. Consistent with estimates of the investment position by industry,
about one-third of jobs at U.S. affiliates are in the manufacturing sector.17 Manufacturing employment at
U.S. affiliates was 2.1 million in 2011, or 17.8 percent of all U.S. manufacturing employment. Next to
manufacturing, the largest industry sectors for employment by U.S. affiliates are wholesale trade, which
employed 546,600 workers in 2011; retail trade with 488,500; and administration, support, and waste
management, with 482,200. Manufacturing 45% Wholesale trade 11% Mining 11% Banking 6% Finance 8%
Other 19% Figure 4: Foreign Direct Investment into the U.S. by Industry Percent of Total, 2010-2012
Source: Department of Commerce, Bureau of Economic Analysis 8 In the 2009-09 recession and
subsequent recovery, employment at U.S. affiliates proved more stable than overall private-sector
employment. Total affiliate employment increased by 0.9 percent between 2007 and 2011, while total U.S.
private employment fell 5.3 percent. Likewise, employment at manufacturing affiliates edged down just 1.5
percent from 2007 to 2011, compared to a 15.4-percent drop in overall U.S. manufacturing employment.
As a result, U.S. affiliates share of total U.S. manufacturing employment rose from 14.8 percent in 2007 to
17.8 percent in 2011.
FDI has varied from a low of 15 percent in 2004 to a high of 81 percent in 1998, averaging 39 percent.
Other sectors that have received significant FDI over time include
the wholesale and retail sector (21 percent in 2010) and financial - related
industries (14 percent in 2010). 5 Since 1997, about two -thirds of the remaining investment has
been in information, mining, utilities, and non-bank holding companies.6 Very little FDI goes to
construction, transportation services and other service industries.
A2
recovery has been disappointing, Evans said in remarks prepared for delivery to a breakfast event in Ann
Arbor, Michigan. And given the recession in Europe and slower growth in previous economic bright spots
such as China, theres
Federal Reserves policymaking Federal Open Market Committee announced last week that in addition to
its maturity extension program, it will buy $40 billion in mortgage-backed securities a month until it sees a
significant improvement in the labor market. It also pushed out its forward guidance how long its
expects interest rates to remain close to zero to mid-2015 from late-2014. Evans, who will not be a voter
on the FOMC until next year, has been one of the loudest proponents of additional action by the Fed in the
weeks leading up to last weeks meeting. This was the time to act, he said. With the problems we face
and the potential dangers lying ahead, it is essential to do as much as we can now to bolster the resiliency
and vibrancy of the economy. I believe the combination of new asset purchases and enhanced forward
guidance about future policy should provide an important added stimulus to economic activity and hiring,
he declared, adding, It is very hard to believe that millions of people who were working productively just a
few years ago have suddenly become unemployable. Not only were last weeks additional monetary
policy actions in response to the disappointing pace of the recovery, Evans said they were also intended to
increase the resiliency of the economy in the face of the increasing headwinds and greater downside
risks posed by the slowdown in global economic growth, the economic turmoil in Europe and the looming
U.S. fiscal cliff. More monetary accommodation by the Fed and greater confidence in the future would
mean a stronger U.S. economy, Evans said, one that would be more resilient to a large-scale decline in
global growth or a sharp fiscal retrenchment. On Europe, Evans noted that while the current expectation
is that a combination of liquidity support for banks and sovereigns will reduce financial restraint allowing
individual countries time to make structural adjustments the periphery countries will almost certainly
experience a great deal of pain. Closer to home, Evans warned that a fiscal contraction on the scale of the
fiscal cliff would be a serious threat to the fragile recovery, and added that unfortunately, a political
stalemate that triggers slated spending cuts an extreme outcome cannot be ruled out. The Feds
shift away from conducting asset purchases of a fixed size and timespan towards a more open-ended
approach conditions its actions to the economys performance, Evans said. And stating that we expect to
keep a highly accommodative stance for policy for a considerable time after the recovery strengthens is an
important reassurance to households and businesses that Fed policy will not tighten prematurely, he
added. While declaring his wholehearted support for the Feds actions, Evans nevertheless said he believes
there are additional steps the Fed can take to further strengthen its positive effects on the economy. He
spoke of the risks of being timid and unduly passive, warning that sticking to just modest, cautious, safe
policy actions risks inflicting a lost decade on the U.S. economy similar to that which Japan experienced in
the 1990s. Underestimating
after recessions like a car returning to its cruising speed after a roadblock. Even after the prolonged Great
Misc
Having backdoor encryption will cause lac of wanted
investment into U.S. companies and hurt small businesses
most.
No Author 14, 11-10-2014, "Issue Brief: A Backdoor to Encryption for
investigations.1 Given heightened concern about the NSAs ability to access data stored by U.S.
companies, American companies that offer cloud computing and webhosting services are experiencing the
ADV - EU Relations
Links
opposition party, the Social Democrats, is gauging whether or not the European Union should approve a
free-trade deal with the US CNN recently reported, "Negotiations on the Transatlantic Trade and Investment
Partnership were already in a fragile state and will not be helped by claims that large French corporations
efforts to curb Iran's nuclear program and contain the Syrian civil war. But the documents leaked by former
spying scandal, but they are wary of the growing political fallout amid warnings that trust has been broken.
"For ambitious and complex negotiations to succeed, there needs to be trust among the negotiating
partners," Viviane Reding, the European Union justice commissioner, said in a speech Wednesday at Yale
University. In the latest disclosure, the Washington Post reported Wednesday that the NSA has secretly
tapped the fiber-optic cables that connect Google and Yahoo data centers overseas and that the agency
stores the emails and other digital data at its headquarters at Ft. Meade, Md. The report prompted Sen.
Patrick J. Leahy (D-Vt.), who chairs the Senate Judiciary Committee, to demand a briefing from the
administration. "If the reports are true, this infiltration could be sweeping in the communications of millions
of Americans who use the services of these two U.S. companies every day," he said in a statement.
According to documents provided by Snowden, in the 30 days prior to Jan. 9, the NSA collected and
processed more than 181 million electronic records email addresses and text, audio and video files
siphoned from the Google and Yahoo networks. It's unclear how many belong to Americans. The paper said
the NSA conducts the electronic espionage program, code-named Muscular, with its British counterpart,
the GCHQ. The two spy services use undisclosed interception points to secretly copy data flowing through
fiber-optic cables that girdle the globe. Vanee' Vines, an NSA spokeswoman, did not deny the existence of
the operation but said the "assertion that we collect vast quantities of U.S. persons' data from this type of
collection is not true." Noting that the NSA is chartered as a foreign intelligence agency, she said that
"we're focused on discovering and developing intelligence about valid foreign intelligence targets
Impacts
EU-US Trade
US data surveillance threatens a new EU-US trade deal
the EU will suspend it
European Parliament News 14 [Europal: US NSA: stop mass
parliamentary and judicial oversight and that they comply with fundamental rights obligations. Background The Civil
Liberties Committee inquiry into mass surveillance of EU citizens began in September 2013. A total of 16 hearings have
been held since then.
http://www.euintheus.org/what-we-do/policy-areas/trade-investment-andbusiness/eu-us-relations-trade-and-investment/]
We are each others main trading partners and goods and services,
and together we have the largest bilateral trade relationship in the
world. In 2012, bilateral trade in goods alone was worth $650 billion.
Our two economies also provide each other with our most important
sources of foreign direct investment. Close to a quarter of all EU-US
trade consists of transactions within firms based on their
investments on either side of theAtlantic. In fact, U.S. investment in
Europe is more than three times more than in all of Asia combined.
The overall transatlantic workforce is estimated at 15 million
workersabout half in the US and half in the EUwho owe their jobs
directly or indirectly to companies from the other side of the
Atlantic. Despite the impact of the worldwide financial crisis and
recession, the EU-US economic relationship remains on solid ground
and is more important than ever. The Transatlantic Trade and
Investment Partnership Launched in 2013, the current Transatlantic
Trade and Investment Partnership (TTIP) negotiations between the
EU and the United States are designed to increase trade and
investment across the Atlantic by reducing and, where possible,
eliminating remaining barriers to transatlantic trade and
investment, whether they are tariffs on farm or manufactured
products, restrictions on foreign service suppliers, or limitations on
investment possibilities. A successful agreement will generate new
job opportunities for and growth through increased market access
and greater regulatory compatibility, while facilitating the
development of international standards. By liberalizing most sectors
of the transatlantic economyincluding manufactured goods,
agricultural products, services, and investmenta TTIP agreement
will not only remove the main trading obstacles of the past, but also
look toward the future: preventing new regulatory barriers;
establishing mechanisms that enable a further deepening of
economic integration over time; and enhancing cooperation for the
development of rules and principles on global issues of common
concern. The Transatlantic Economic Council Established in 2007, the Transatlantic Economic Council
(TEC) advances EU-U.S. economic integration by bringing together governments, the business community,
and consumers to work on key areas where greater regulatory convergence and understanding can reap
rewards on both sides of the Atlantic. Chaired by the EU Trade Commissioner and the U.S. Deputy National
Security Adviser for International Economic Affairs, the TEC offers a high-level forum to address complex
areas like investment, the financial markets, mutual recognition of accounting standards, and secure trade.
It provides the opportunity to defuse transatlantic trade disputes as standards are being developed, rather
than after the fact.-
ISIS
U.S. - EU relations key to stopping ISIS
Katulis, Lang, Singh 14 By Brian Katulis, Hardin Lang, Vikram Singh
(Brian Katulis and Hardin Lang are Senior Fellows with the National Security
and International Policy team at the Center for American Progress. Vikram
Singh is the Vice President for National Security and International Policy)
Wednesday, September 10, 2014. Center for American Progress. Defeating
ISIS: An Integrated Strategy to Advance Middle East Stability
https://www.americanprogress.org/issues/security/report/2014/09/10/96739/d
efeating-isis-an-integrated-strategy-to-advance-middle-east-stability/ S.H
U.S. airstrikes in Iraq against the Islamic State of Iraq and al-Sham, or ISIS, have been an important step to
contain the rise of the extremist group, respond to immediate threats to U.S. citizens in Iraq, and prevent
possible acts of genocide. These airstrikes enabled Iraqis to resist ISIS and bought time for the Iraqi
government to begin building a more inclusive administration under a new prime minister, Haider alAbadi.* But as the Center for American Progress noted in a June report, U.S. military action needs to be just
one part of a long-term multinational political and security strategy in the region. The new strategy should
aim to contain and degrade ISIS and enable regional partners to continue to build the tools needed to
defeat ISISs movement with international support. This report outlines actions to advance three core
strategic goals: Contain and degrade the threat ISIS poses to the Middle East region and global security
Alleviate the humanitarian crisis affecting millions of Syrians and Iraqis Restore the territorial integrity of
Iraq and Syria The ISIS threat is eroding the borders of both Iraq and Syria, and it represents an
environment of chaos and great suffering has allowed ISIS to emerge. The conflict in Syria alone has
created the largest humanitarian crisis the world has faced in decades. Some 9 million Syrians have fled
their homes, and 3 million Syrians are now refugees, making them the worlds largest refugee population
As
with efforts to counter extremism elsewhere, defeating ISIS will
require a concentrated effort over time. Any successful U.S. strategy
must be built on a foundation of regional cooperation that requires
coordinated action from U.S. partnersa central concept of the Counterterrorism
Partnership Fund that President Barack Obama proposed earlier this year. The strategy will be
multifaceted, involving intelligence cooperation, security support,
vigorous regional and international diplomacy, strategic
communications and public diplomacy, and political engagement.
While military action alone will be insufficient to defeat ISIS, the United States and other
nations may need to undertake airstrikes and provide military
assistance to disrupt and degrade ISIS in Syria. These strikes should
be conducted in concert with regional and international partners.
Ideally, such airstrikes would receive the support from the United Nations or
and placing a tremendous burden on neighboring countries, such as Jordan, Lebanon, and Turkey.
absent action to authorize the use of force by the U.N. Security Councilfrom a coalition of Americas Gulf
partners and North Atlantic Treaty Organization, or NATO, allies. As always, the United States should
reserve the right to undertake unilateral military action to defend the homeland or protect U.S. personnel
from imminent harm. Whether unilaterally or with partners, U.S. military strikes should be limited in terms
of scope and duration and under clear oversight of Congress. As CAP said in June when it advocated for
action against ISIS in Iraq, The United States should not undertake military action lightly and should be
wary of unintended consequences. But not all military action is the same. Ground troops or invasions to
control a country are very different from limited air strikes or targeted assistance to help push back
terrorist extremists. Focusing too much on direct U.S. military action in the fight against ISIS ignores the
equally important diplomatic and economic steps that will be required to defeat this extremist group. U.S.
military strikes or even boots on the ground cannot defeat ISIS alone and could become a rallying cry and
recruitment tool for extremists, repeating one of the most costly strategic errors of the 2003 Iraq War. At
the same time, building a unified, committed coalition to effectively degrade ISIS will require intense
diplomatic and military leadership from the United States to mobilize and coordinate partners. The United
States must leverage its unique capabilities in the military, security assistance, and intelligence arenas.
With 10 nations
agreeing to work together against ISIS during the NATO summit in Wales and the
$500 million of additional assistance that President Obama proposed in June.
Arab League announcing a joint commitment to fight ISIS, the foundation for such international
cooperation is taking shape. These countries including
regional coalition against ISIS should look more like the 1991 Gulf War or the post-9/11 coalition against Al
Qaeda and the Taliban and less like the 2003 Iraq War coalition. Secretary of State John Kerrys and U.S.
Defense Secretary Chuck Hagels visits to the region to press for coordinated action are a good start. To
follow up, the United States should designate a specific U.S. government lead or a small interagency team
to manage the building and sustaining of an anti-ISIS coalition. There is no playbook for this sort of effort,
and the United States should operate on three levels: with actors in the region, with transatlantic partners
and other core allies, and through the United Nations. Regional cooperation The United States should
propose that states in the region commit to common principles and specific, coordinated actions to help
isolate and counter ISIS and better respond to the humanitarian catastrophe. This will not be easy as the
Sunni-Shia sectarian divide in the region is now accompanied by growing tensions between leading Sunnimajority states. In addition, key countries in the region lack some basic capacities needed for operational
impact, as demonstrated by the failure of regional efforts to support elements of the anti-Assad opposition
in Syria. While the United States and other countries may need to fill such capability gaps, regional
partners should contribute financial and other resources to support a multinational effort. With partners in
the region, the United States can take the following steps: Create an ISIS-focused intelligence fusion cell
in the region. The United States has a wide range of networked relationships with key Middle East
intelligence services. Jordan is a close partner in counterterrorism efforts throughout the Middle East and
outside the region in places such as Afghanistan. Saudi intelligence services have been battling certain
Islamist extremist groups, such as ISIS and al-Nusra Frontthe Al Qaeda affiliate now dominating parts of
the battlefield. The Turkish National Intelligence Organization also has extensive intelligence contacts and
The United
States would need to provide the backbone for any regional
intelligence fusion effort. Establish a multi-agency and multinational ISIS threat finance cell
specialized knowledge of the various extremist groups operating in northern Syria.
to target the economic base of ISIS. ISIS funds its activities from areas under its control through taxation,
illicit economies such as oil smuggling and extortion, and external support, mainly from individuals in Gulf
states. Some estimates project ISIS will raise between $100 million and $200 million over the next year. To
disrupt ISISs finances, the United States should work with regional partners to target the criminal networks
that ISIS uses to sell goods or otherwise generate revenue; disrupt ISIS oil extraction, transport, and
refining operations and prevent exchanges with buyers in foreign markets such as Iran, Turkey, and the
Kurdistan Regional Government, or KRG; and disrupt online and regional fundraising efforts. The United
States should create an interagency threat finance cell headed by either the U.S. Treasury Department or
State Department with military and intelligence personnel, and it should be based in the region to help
coordinate the collection and analysis of financial and economic intelligence. Coordinate security
assistance to national and subnational actors fighting ISIS and al-Nusra Front on the ground in Syria and
Iraq. The United States has already stepped up its direct military assistance to Iraqi Kurdish forces and has
proposed an additional $500 million to support select members of the Syrian opposition. These efforts
should be incorporated into a regional plan. In many instances, the most capable security partners will
likely be found at the subnational level, including tribes, and U.S partners in the region will have deeper
ties and greater ability to provide support to such forces fighting ISIS. A joint State Department and
Defense Department team should coordinate these efforts. Airstrikes and surveillance in support of
regional forces and local ground forces fighting ISIS and al-Nusra Front. In targeted instances, the United
Statesand if possible, a broader coalition of alliesshould conduct direct military airstrikes against ISIS
and other radical groups operating in Syria and Iraq. These strikes should be conducted as part of a
regional or international coalition under a multilateral framework with congressional authorization and
oversight. A transatlantic and allied response to ISIS The September 2014 NATO summit took several
steps to energize the transatlantic community to confront ISIS. Nine countries pledged to join U.S. efforts
to counter ISIS, but no specific commitments were made. And as evidenced over the past few years in
Afghanistan and Libya, follow through on commitments is essential. Further, the United States and its
Western partners need to proactively manage the dangers posed by European and American citizens now
fighting alongside ISIS. The United States should work with its transatlantic partners and traditional allies
to: Enable reliable and capable partners in the region to take the fight directly to ISIS. The United States is
providing the greatest support to forces fighting ISIS. NATO and other U.S. allies should together develop a
strategy to help the region counter ISIS with technical support and military assistance. This should include
specific commitments to provide support to the Iraqi government, Kurdish forces, and third-way opposition
Organization, or INTERPOL. More than 12,000 foreign fighters are estimated to have flocked to Iraq and
Syria. According to intelligence agencies and outside experts, one-quarter of these fighters come from
Western countries. With an estimated 3,000 individuals, including perhaps 500 each from Britain and
France, the dangers of extremists coming home to continue the fight with acts of terrorism cannot be
ignored. Western countries should partner with allies in the Middle East and local communities on counterradicalization efforts.
Warming
US-EU cooperation key to fighting against Global Warming
European Commission Press Release 14
European Commission Press Release, The database contains all the Press Releases of the Commission. It
also contains press releases of some of the other European institutions including the Council of the
European Union, run by the Communication department of the European Commission, Joint Statement EUUS Energy Council, http://europa.eu/rapid/press-release_IP-14-2341_en.htm //NA
Coordinated action by the EU, the United States and all major and emerging economies will be
essential to tackling the threat of global climate change, which remains the defining challenge
of our generation. The Council reaffirmed the strong determination of the United States and the EU to
work towards the adoption at the United Nations Climate Conference in Paris in 2015 of an ambitious
protocol, legal instrument or agreed outcome with legal force, under the Convention and applicable to all
parties, which would strengthen the multilateral, rules-based regime. This agreement must be sufficiently
ambitious, robust and dynamic in light of the goal to limit global temperature increase to below 2C. The
latest findings of the Intergovernmental Panel on Climate Change serve to emphasize the
importance of urgent and effective action. The EU and the United States are committed to
taking the lead in the fight against climate change and note the increasing evidence that action on
climate change can be combined with improved economic performance and have positive co-benefits in
areas such as health and energy security. The EU and the United States also intend to continue their strong
efforts to reduce emissions of short-lived climate pollutants.
Terrorism
U.S. and EU cooperation key to counter-terrorism efforts
Archick 14 Kristin Archick (Specialist in European Affairs) December 1,
Promoting law
enforcement and intelligence cooperation with the United States has
been another top EU priority since 2001. Washington has largely
welcomed enhanced counterterrorism cooperation with the EU,
which has led to a new dynamic in U.S.-EU relations by fostering
dialogue on law enforcement and homeland security issues
previously reserved for bilateral discussions. Contacts between U.S.
and EU officials on police, judicial, and border control policy matters have increased substantially and a
number of new U.S.-EU agreements have also been reached; these include information-sharing
possible threats posed by European fighters returning from the conflicts in Syria and Iraq.
arrangements between the United States and EU police and judicial bodies, two U.S.-EU treaties on extradition and
the United
States and the EU have been working together to curb terrorist
financing and to strengthen transport security. Nevertheless, some challenges
mutual legal assistance, and accords on container security and airline passenger data. In addition,
persist in fostering closer U.S.-EU cooperation in these fields. Among the most prominent and long-standing are data
The negotiation of several U.S.-EU informationsharing agreements, from those related to tracking terrorist
financial data to sharing airline passenger information, has been complicated
privacy and data protection issues.
by EU concerns about whether the United States could guarantee a sufficient level of protection for European citizens
personal data. EU worries about U.S. data protection safeguards and practices have been further heightened by the
unauthorized disclosures since June 2013 of U.S. National Security Agency (NSA) surveillance programs and subsequent
allegations of U.S. collection activities in Europe (including reports that U.S. intelligence agencies have monitored EU
diplomatic offices and German Chancellor Angela Merkels mobile phone). Other issues that have led to periodic
tensions include detainee policies, differences in the U.S. and EU terrorist designation lists, and balancing measures to
improve border controls and border security with the need to facilitate legitimate transatlantic travel and commerce.
Congressional decisions related to intelligence-gathering reforms, data privacy, border controls, and transport security
may affect how future U.S.-EU counterterrorism cooperation evolves. In addition, given the European Parliaments
growing influence in many of these policy areas, Members of Congress may be able to help shape the Parliaments views
and responses through ongoing contacts and the existing Transatlantic Legislators Dialogue (TLD). This report
examines the evolution of U.S.-EU counterterrorism cooperation and the ongoing challenges that may be of interest in
the 113 th Congress.
the White
House noted that U.S. officials from the Department of Justice and
the Department of Homeland Security are working closely with EU
counterparts to address a wide range of measures focused on
enhancing counter-radicalization, border security, aviation security,
and information sharing to address potential threats posed by
foreign fighters. 14 Nevertheless, some challenges remain in the evolving U.S.-EU
any of our countries is a problem for all of our countries. 13 In
September 2014,
counterterrorism relationship. Among the most prominent are long-standing data privacy and data
protection concerns, which have long complicated a range of U.S.-EU information-sharing agreements
and have received renewed attention in the wake of the unauthorized disclosures since June 2013 of U.S.
National Security Agency (NSA) surveillance activities. Other issues that have led to periodic tensions
include detainee policies, differences in the U.S. and EU terrorist designation lists, and balancing
measures to improve border controls and border se curity with the need to facilitate legitimate
counterfeiting issues. In 2006, a U.S. liaison position was established at Eurojust headquarters in The
Hague as part of a wider U.S.-Eurojust agreement to facilitate cooperation between European and U.S.
prosecutors on terrorism and other cross-border criminal cases.
The United States and the EU are among the most active members of the Global
Counterterrorism Forum (GCTF), a multilateral counterterrorism body with 30 worldwide
members, designed to address counterterrorism threats and build international capacity. The
United States and the EU jointly support work in all areas of the two working groups focused on Africa:
Horn of Africa Region Capacity-Building Working Group: focuses on law enforcement, criminal justice and
the rule of law, border management, countering violent extremism, and countering terrorist financing.
Sahel Region Capacity-Building Working Group: focuses on police cooperation, building legal and judicial
cooperation, border security, community engagement to counter extremism, and countering terrorism
financing. The United States and the EU also continue to collaborate on three GCTF-inspired
institutions, and will serve on the governing boards of and provide financial support to all
three institutions: Hedayah: Hedayah is the first and only international center of excellence
on countering violent extremism (CVE). We will jointly support Hedayahs efforts, and the United
States is funding curriculum development and CVE training. Global Community Engagement and
Resilience Fund: This fund, a public-private global venture, will support grassroots efforts to
counter violent extremism. The United States and EU have committed to supporting this funds
development and operations. International Institute for Justice and the Rule of Law:
Headquartered in Malta, this institute will train criminal justice officials in North, West, and East
Africa, with a particular focus on countries in transition, to counter terrorism and handle
transnational security challenges while respecting human rights. The United States and the EU
have agreed to provide resources and technical support. Cooperation on Countering Violent Extremism and
Foreign Fighters. We share a common understanding of how terrorists exploit underlying
conditions to recruit others to their cause. The United States and EU have increased
transatlantic cooperation on both stemming the flow of foreign fighters and reintegrating
them when they return. We aim to counter violent extremism by providing positive
alternatives to communities most at risk of recruitment and radicalization to violence; counter
terrorist narratives; and build the capacity of government and civil society to counter violent
extremism. Balkans: The United States and the EU are committed to building the capacity of Balkan
governments and civil society to counter violent extremism from counter-messaging/counter-recruitment
to the reintegration of returning fighters. Dutch-Moroccan-led Foreign Fighter Project: We jointly support
a year-long GCTF initiative, launched February 19, led jointly by Morocco and the Netherlands, to address
the phenomenon of foreign fighters. U.S. Regional Strategic Initiative Foreign Fighter Project: The United
States, with EU support, will complement the Dutch-Moroccan initiative by focusing on implementation of
the Rabat Good Practices to address the criminal justice aspects of prevention, disruption, and prosecution
of foreign fighters, mainly focused on the Balkans, Maghreb, and Sahel countries. Coordination on
Combating Terrorist Organizations. We are committed to preventing and countering efforts by
terrorists and their networks to travel freely in our territories and finance their illicit activities.
We are continuing this work with the European Union and will rely on a number of critical
agreements to accomplish this.
EU-US relations key to effectively fight against terrorismempirically proven-failure to restrict the NSA threaten
these relations
Archick 14
Kristin, Specialist in European Affairs, U.S.-EU Cooperation Against Terrorism, PDF,
https://www.fas.org/sgp/.../RS22030.pd.. //NA
As part of the EUs efforts to combat terrorism since September 11, 2001, the EU made
improving law enforcement and intelligence cooperation with the United States a top priority.
The previous George W. Bush Administration and many Members of Congress largely welcomed this
EU initiative in the hopes that it would help root out terrorist cells in Europe and beyond that
could be planning other attacks against the United States or its interests. Such growing U.S.EU cooperation was in line with the 9/11 Commissions recommendations that the United
States should develop a comprehensive coalition strategy against Islamist terrorism,
exchange terrorist information with trusted allies, and improve border security through
better international cooperation. Some measures in the resulting Intelligence Reform and Terrorism
Prevention Act of 2004 (P.L. 108-458) and in the Implementing Recommendations of the 9/11 Commission
Act of 2007 (P.L. 110-53) mirrored these sentiments and were consistent with U.S.-EU counterterrorism
efforts, especially those aimed at improving border controls and transport security. U.S.-EU cooperation
against terrorism has led to a new dynamic in U.S.-EU relations by fostering dialogue on law
enforcement and homeland security issues previously reserved for bilateral discussions with
individual EU member states. Despite some frictions, most U.S. policy makers and analysts
view the developing partnership with the EU in these areas as positive. Like its predecessor, the
Obama Administration has supported U.S. cooperation with the EU in the fields of counterterrorism, border
controls, and transport security. At the November 2009 U.S.-EU Summit in Washington, DC, the
two sides reaffirmed their commitment to work together to combat terrorism and enhance
cooperation in the broader JHA field. In June 2010, the United States and the EU adopted a
Declaration on Counterterrorism aimed at deepening the already close U.S.-EU relationship
and highlighting the commitment of both sides to combat terrorism within the rule of law. In
June 2011, President Obamas National Strategy for Counterterrorism asserted that in addition to working
with European allies bilaterally, the United States will continue to partner with the European
Parliament and European Union to maintain and advance CT efforts that provide mutual
security and protection to citizens of all nations while also upholding individual rights. The EU has
also been a key U.S. partner in the 30-member Global Counterterrorism Forum, founded in
September 2011 as a multilateral body aimed at mobilizing resources and expertise to counter violent
extremism, strengthen criminal justice and rule of law capacities, and enhance international
counterterrorism cooperation.12 Recently, U.S. and EU officials have been discussing ways to combat the
foreign fighter phenomenon given increasing concerns that both European and American Muslims are
being recruited to fight with Islamist groups in Syria and Iraq. U.S. policy makers, including some Members
of Congress, have expressed worries in particular about such foreign fighters in light of short-term visa-free
travel arrangements between the United States and most EU countries. In early July 2014, U.S. Attorney
General Eric Holder asserted, We have a mutual and compelling interest in developing shared strategies
for confronting the influx of U.S. and European-born violent extremists in Syria. And because our citizens
can freely travel, visa-free ... the problem of fighters in Syria returning to any of our countries is a problem
for all of our countries.13 In September 2014, the White House noted that U.S. officials from the
Department of Justice and the Department of Homeland Security are working closely with EU
counterparts to address a wide range of measures focused on enhancing counter-radicalization, border
security, aviation security, and information sharing to address potential threats posed by foreign
fighters.14 Nevertheless, some challenges remain in the evolving U.S.-EU counterterrorism
relationship. Among the most prominent are long-standing data privacy and data protection
concerns, which have long complicated a range of U.S.-EU information-sharing agreements and have
received renewed attention in the wake of the unauthorized disclosures since June 2013 of U.S. National
Security Agency (NSA) surveillance activities. Other issues that have led to periodic tensions include
detainee policies, differences in the U.S. and EU terrorist designation lists, and balancing measures to
improve border controls and border security with the need to facilitate legitimate transatlantic travel and
commerce.
Misc
EU Wants US Action
EU demands US action on mass surveillance otherwise
theyll freeze their data sharing relationship entirely
Traynor 13 [Ian: EU Editor for Guardian The Guardian: NSA surveillance:
the EU has reviewed existing datasharing agreements with the Americans concerning commercial
swaps between US and European companies, information traded
aimed at suppressing international terrorist funding, and the supply
of information on transatlantic air passengers. It is also rethinking
ongoing negotiations over exchanging data with the Americans on
judicial and police co-operation. And it is drafting new Europe-wide
data protection rules requiring US internet companies operating in
the EU to obtain permission to transfer data to the US and to restrict
US intelligence access to it. Pressing the Americans in negotiations
in Washington last week, Reding was unable to obtain US figures on
the scale of the US surveillance of Europeans. The commercial data
exchange, known as "Safe Harbor", was found to be flawed. "The
Luxembourg. As a result of the Snowden disclosures,
commission will underline that things have gone very badly indeed. Our analysis is Safe Harbor seems not
to be safe. We're asking the US not just to speak, but to act," Reding said.
"There is always a possibility to scrap Safe Harbor It's important that these recommendations are acted
on by the US side by summer 2014. Next summer is a Damocles sword. It's a real to-do list. Enforcement is
absolutely critical. Safe Harbor cannot be only an empty shell." The commission is to come forward on
Wednesday with a set of recommendations addressing the risks exposed by Snowden. The package was
agreed in Brussels on Monday, said senior officials, but is opposed by Britain's representative in the
it is critical to
discuss the supposedly new nature of our societies. The impact of
technological transformations in democratic societies, how to use
these technologies as resources for both information exchange and
competition over information (a key element of a globalized world), what are the
rights of the different governments in processing them: these are
the core questions. As stated by Allen Dulles above, justifications given by intelligence services
the antiterrorism agencies in the US, in the UK, in France, and at the EU level,
work in favour of a police state and against the very nature of an open society living in democratic
regimes. Proponents of an open society insist that, against the previous trend, technologies ought not to
drive human actions; they have to be used in reasonable ways and under the Rule of Law. The mass
scaling has to be contained. Constitutional provisions have to be applied, and the presumption of
innocence is applicable for all human beings (not only citizens). If suspicions exist, they have to be related
to certain forms of crime, and not marginal behaviours or life styles. Hence, what is at stake here is not
the mechanisms by which antiterrorism laws and activities have to be regulated at the transatlantic level,
even if it is a subset of the question. It is not even the que stion of espionage activities between
and Constitutional Affairs i.e, a life which is not fully under the surveillance of any state apparatus. The
investigative eyes of any government have to be strongly reminded of distinctions between private and
public activities, between what is a crime and what is simply a different life - style. By gathering
massive data on life - styles in order to elaborate patterns and profiles concerning political attitudes and
economic choices, PRISM seems to have allowed an unprecedented scale and depth in intelligence
gathering, which goes beyond counter - terrorism and beyond espionage activities carried out by liberal
regimes in the past. This may lead towards an illegal form of Total Information Awareness where data of
millions of people are subject to collection and manipulation by the NSA. This note wants to assess this
question of the craft of intelligence and its necessary limits in democracy and between them. As we will
uncategorized
TTIP stands to open free trade to china as well
Reuters 6/23/15
(Economic Times: US and EU face 'heavy lift' to get trade deal: EU
ambassador ) BB
http://economictimes.indiatimes.com/news/international/business/us-and-euface-heavy-lift-to-get-trade-deal-eu-ambassador/articleshow/47778607.cms
LONDON: The United States and the European Union face a major challenge to achieve a free trade deal
before President Barack Obama's term of office ends in January 2017, the EU's ambassador to the United
States said on Monday.
US aiding EU in defense
AP 6/23/15
Estonia Defense Minister Sven Mikser said the Baltic leaders aren't trying to
restart the Cold War arms race or match Russian President Vladimir Putin
"tank for tank," but the additional military presences will be a deterrent to
Russia and could change the calculous. "In global terms Russia is no match
conventionally to U.S. or to NATO, but here in our corner of the world, Putin
believes that he enjoys regional superiority," Mikser said, adding that Estonia
is eager and ready to accept the equipment immediately. Each set of
equipment would be enough to outfit a military company or battalion, and
would go on at least a temporary basis to Bulgaria, Estonia, Latvia, Lithuania,
Poland, and Romania. Carter said the equipment could be moved around the
region for training and military exercises, and would include Bradley fighting
vehicles and self-propelled howitzer artillery guns. Germany will be
participating in the expanded military effort, but already has U.S. equipment.
"We intend to move those equipment sets around as exercises move around,"
Carter told a news conference. "They're not static. Their purpose is to
enable richer training and more mobility to forces in Europe." He
said the U.S. presence will be "persistent" but "agile," and he said
the troops will be able to stay at a higher state of readiness. But
while the stated goal of the move is that American forces moving in
and out of Europe will be better able to do training, it also would
allow NATO nations to more quickly respond to any military crisis in
the region. Later in the day, Russia was also on the minds of U.S.
sailors and Marines aboard the USS San Antonio, which just finished
up a major annual international military exercise on the Baltic Sea
called BALTOPS. The exercise, which involved some 60 ships from 17
NATO nations, is part of the stepped-up campaign to increase
military training and activities in the region as a deterrent to Russia.
Troops quizzed Carter on U.S. relations with Russia and questioned whether
the U.S. might put a greater maritime presence in the region. The U.S.
military "is highly, highly visible here in Europe, it's reassuring for them to
see you," he said, "because of what you stand for."-
charter, Maes noted. Sweden, which is not on the UNSC, added through its foreign minister, Carl Bildt, on
Twitter: If illegal armed groups took over police stations and local government offices in Sweden we would
use all our instruments to restore order. The statements came hours before the expiry on Monday
morning of an ultimatum issued by Ukraines caretaker government for armed pro-Russian separatists to
cede control of government buildings in several cities in the eastern regions of Donetsk, Kharkiv, and
Luhansk. Ukraine said three people were already killed in clashes in the small hours of Monday on the
outskirts of Slaviansk and in Slaviansk city centre. The UNSC meeting was called by Russia, which,
according to the US and the UK, has 40,000 elite troops massed on the Ukrainian-Russian border. The
Russian UN envoy, Vitaly Churkin, urged Wesern powers to stop Kiev from taking action. Lets concentrate
attention on what we can do in this case I'm directing my eyesight at my Western colleagues in order to
prevent the Kiev authorities reckless actions, which at this moment are embodied in the criminal order of
[acting Ukrainian president] Mr. Turchynov, and to prevent the realisation of this order, which will have the
most severe implications primarily for the people of Ukraine, he said. He described the Kiev authorities as
national radicals and chauvinists, Russophobic, anti-Semitic forces and threatened to call off a meeting
between the EU, Russia, Ukraine and the US in Geneva on Thursday. Churkin got limited support from
UNSC member Rwanda, whose envoy, Eugene-Richard Gasana, said: Rwanda remains of the view that
military action will only worsen the already tense situation. But Australia, France, the UK and the US
joined the smaller EU states in condemning Russias actions. Commenting on the escalation in eastern
Ukraine since 6 April, the US Samantha Power said: We know who is behind this. Indeed, the only entity
in the area capable of these co-ordinated, professional military actions is Russia. Britains Mark Lyall Grant
noted: The international community is not fooled by the Kremlins use of propaganda and misinformation .
[EU] member states agree to ask [the EU foreign service] to prepare an additional list of restrictive
measures, a senior EU official told the news agency.
ADV Privacy
Links
build a back door into systems, youre not the only one to exploit
it, said Matthew D. Green, a cryptography researcher at Johns Hopkins University. Those back
doors could work against U.S. communications, too. Paul Kocher, a leading
cryptographer who helped design the SSL protocol, recalled how the N.S.A. lost the heated national debate
in the 1990s about inserting into all encryption a government back door called the Clipper Chip. And
they went and did it anyway, without telling anyone, Mr. Kocher said. He
said he understood the agencys mission but was concerned about the danger of allowing it unbridled
age of spying.
In 2006, a federal agency, the National Institute of Standards and Technology, helped build an international
encryption system to help countries and industries fend off computer hacking and theft. Unbeknown to the
many users of the system, a different government arm,
secretly inserted a back door into the system that allowed federal
spies to crack open any data that was encoded using its technology .
Documents leaked by Edward Snowden, the former N.S.A. contractor, make clear that the agency
has never met an encryption system that it has not tried to
penetrate. And it frequently tries to take the easy way out. Because modern
cryptography can be so hard to break, even using the brute force of the agencys
powerful supercomputers, the agency prefers to collaborate with big software
companies and cipher authors, getting hidden access built right into
their systems. The New York Times, The Guardian and ProPublica recently reported that the
agency now has access to the codes that protect commerce and
banking systems, trade secrets and medical records, and everyones
e-mail and Internet chat messages, including virtual private
networks. In some cases, the agency pressured companies to give it
access; as The Guardian reported earlier this year, Microsoft provided access to Hotmail, Outlook.com,
SkyDrive and Skype. According to some of the Snowden documents given to Der Spiegel, the N.S.A. also
These
back doors and special access routes are a terrible idea, another example of the
has access to the encryption protecting data on iPhones, Android and BlackBerry phones.
intelligence communitys overreach. Companies and individuals are increasingly putting their most
confidential data on cloud storage services, and need to rely on assurances their data will be secure.
The government can get a warrant and break into the communications or data of any individual or
company suspected of breaking the law. But crippling everyones ability to use encryption is going too far,
Representative Rush Holt, Democrat of New Jersey, has introduced a bill that would, among other
provisions, bar the government from requiring software makers to insert built-in ways to bypass
encryption. It deserves full Congressional support. In the meantime, several Internet companies, including
Google and Facebook, are building encryption systems that will be much more difficult for the N.S.A. to
penetrate, forced to assure their customers that they are not a secret partner with the dark side of their
own government.
Modeling
Want to know why forcing tech companies to build backdoors into encryption is a terrible idea ? Look
no further than President Obamasstark criticism of Chinas plan to do exactly that on Tuesday. If only he would tell the FBI
and NSA the same thing. In a stunningly short-sighted move, the FBI - and more recently the NSA - have
been pushing for a new US law that would force tech companies like Apple and Google to hand
over the encryption keys or build backdoors into their products and tools so the government
would always have access to our communications . It was only a matter of time before other
governments jumped on the bandwagon, and China wasted no time in demanding the same
from tech companies a few weeks ago. As President Obama himself described to Reuters, China has
proposed an expansive new anti-terrorism bill that would essentially force all foreign
companies, including US companies, to turn over to the Chinese government mechanisms
where they can snoop and keep track of all the users of those services. Obama continued: Those
kinds of restrictive practices I think would ironically hurt the Chinese economy over the long
term because I dont think there is [not] any US or European firm , any international firm, that
could credibly get away with that wholesale turning over of data, personal data, over to a
government. Bravo! Of course these are the exact arguments for why it would be a disaster for US government to
force tech companies to do the same. (Somehow Obama left that part out.) As Yahoos top security executive Alex Stamos
told NSA director Mike Rogers in a public confrontation last week, building backdoors into encryption is like drilling a hole
into a windshield. Even if its technically possible to produce the flaw - and we, for some reason, trust the US government
never to abuse it - other countries will inevitably demand access for themselves . Companies will no
longer be in a position to say no, and even if they did, intelligence services would find the
backdoor unilaterally - or just steal the keys outright. For an example on how this works, look no further
than last weeks Snowden revelation that the UKs intelligence service and the NSA stole the encryption keys
for millions of Sim cards used by many of the worlds most popular cell phone providers . Its
happened many times before too. Security expert Bruce Schneier has documented with numerous examples, Backdoor access built for the good guys is routinely used by the bad guys . Stamos repeatedly (and
commendably) pushed the NSA director for an answer on what happens when China or Russia also demand
backdoors from tech companies, but Rogers didnt have an answer prepared at all. He just kept repeating I think
we can work through this. As Stamos insinuated, maybe Rogers should ask his own staff why we actually cant work
through this, because virtually every technologist agrees backdoors just cannot be secure in practice .
(If you want to further understand the details behind the encryption vs. backdoor debate and how what the NSA director is
asking for is quite literally impossible, read this excellent piece by surveillance expert Julian Sanchez.) Its downright
bizarre that the US government has been warning of the grave cybersecurity risks the country
faces while, at the very same time, arguing that we should pass a law that would weaken
cybersecurity and put every single citizen at more risk of having their private information
stolen by criminals, foreign governments, and our own . Forcing backdoors will also be
disastrous for the US economy as it would be for Chinas. US tech companies - which already
have suffered billions of dollars of losses overseas because of consumer distrust over their
relationships with the NSA - would lose all credibility with users around the world if the FBI
and NSA succeed with their plan. The White House is supposedly coming out with an official policy on encryption
sometime this month, according to the New York Times but the President can save himself a lot of time and just apply his
comments about China to the US government. If he knows backdoors in encryption are bad for
cybersecurity, privacy, and the economy, why is there even a debate?
IL Democracy Modeling
NSA backdoors set a dangerous precedent for democracy
and human rights abroad
Peterson 15 [Andrea: covers technology policy for The Washington Post,
tech
companies have scrambled to encrypt more of their products. Now,
some U.S. law enforcement officials are pushing to have tech
companies build ways for the government to access secure content
passing through their products -- so-called "backdoors." FBI Director James
Edward Snowden's revelations about National Security Agency surveillance programs,
Comey and NSA chief Adm. Michael Rogers have said that the growth in encryption use could make it
harder to track criminals -- and argued that the government should require companies to build ways for
law enforcement to access encrypted content. Earlier this year, Rogers floated the idea of a having
companies split up the digital "key" used to decode encrypted content into multiple parts so that no one
inconsistent with human rights law, others around the world who
aren't necessarily in the democratic camp take that as an example of
something that's permitted," said Kaye.
democracy and frequent mismatches between deeds and words have clouded appreciation of this truth.
Democracies often have conflicting priorities, and democracy promotion is not a panacea. Yet one of the
built on consensus and peaceful competition, which more often than not promotes similar international
for Development Conference in Monterey, Mexico, embraced good governance as the enabler of
development. These elements have unleashed new emerging powers such as India and Brazil and raised
the quality of life for impoverished peoples. Those who argue that economic development will eventually
yield political freedoms may be reversing the order of influencesor at least discounting the reciprocal
opportunities and outlets for grievances has contributed significantly to the ongoing upheaval in the Middle
"the peculiar virtue of democracy."23 A democratic political process based on electoral competition
depends on freedom of expression of political views and freedom to make electoral choices. Moreover,
governments that are accountable to the public are less likely to deprive their citizens of human rights. The
global spread of democracy is likely to bring greater individual liberty to more and more people. Even
imperfect and illiberal democracies tend to offer more liberty than autocracies, and liberal democracies are
very likely to promote liberty. Freedom House's 1997 survey of "Freedom in the World" found that 79 out of
118 democracies could be classified as "free" and 39 were "partly free" and, of those, 29 qualified as "high
partly free." In contrast, only 20 of the world's 73 nondemocracies were "partly free" and 53 were "not
free."24 The case for the maximum possible amount of individual freedom can be made on the basis of
for liberty, on the other hand, does not focus on the consequences of increased liberty, but instead argues
that all men and women, by virtue of their common humanity, have a right to freedom. This argument is
most memorably expressed in the American Declaration of Independence: "We hold these Truths to be selfevident, that all Men are created equal, that they are endowed by their creator with certain unalienable
Rights, that among these are Life, Liberty, and the Pursuit of Happiness ..." The virtues of greater
individual liberty are not self-evident. Various political ideologies argue against making liberty the
paramount goal of any political system. Some do not deny that individual liberty is an important goal, but
call for limiting it so that other goals may be achieved. Others place greater emphasis on obligations to the
community. The British Fabian Socialist Sidney Webb, for example, articulated this view clearly: "The
perfect and fitting development of each individual is not necessarily the utmost and highest cultivation of
his own personality, but the filling, in the best possible way, of his humble function in the great social
machine."25 To debate these issues thoroughly would require a paper far longer than this one.26 The short
response to most critiques of liberty is that there appears to be a universal demand for liberty among
human beings. Particularly as socioeconomic development elevates societies above subsistence levels,
individuals desire more choice and autonomy in their lives. More important, most political systems that
have been founded on principles explicitly opposed to liberty have tended to devolve into tyrannies or to
suffer economic, political, or social collapse. 2. Liberal Democracies are Less Likely to Use Violence Against
corresponding figure for authoritarian regimes was 0.59% and for totalitarian regimes 1.48%.28 Rummel
also finds that citizens of liberal democracies are far less likely to die at the hands of their governments.
Totalitarian and authoritarian regimes have been responsible for the overwhelming majority of genocides
and mass murders of civilians in the twentieth century. The states that have killed millions of their citizens
all have been authoritarian or totalitarian: the Soviet Union, the People's Republic of China, Nazi Germany,
Nationalist China, Imperial Japan, and Cambodia under the Khmer Rouge. Democracies have virtually
never massacred their own citizens on a large scale, although they have killed foreign civilians during
wartime. The American and British bombing campaigns against Germany and Japan, U.S. atrocities in
Vietnam, massacres of Filipinos during the guerrilla war that followed U.S. colonization of the Philippines
after 1898, and French killings of Algerians during the Algerian War are some prominent examples.29
Democratic
political systems-especially those of liberal democracies constrain
the power of governments, reducing their ability to commit mass
murders of their own populations. As Rummel concludes, "Power kills, absolute power
There are two reasons for the relative absence of civil violence in democracies: (1)
kills absolutely ... The more freely a political elite can control the power of the state apparatus, the more
Democracy does not necessarily usher in prosperity, although some observers claim that "a close
correlation with prosperity" is one of the "overwhelming advantages" of democracy.32 Some democracies,
including India and the Philippines, have languished economically, at least until the last few years. Others
are among the most prosperous societies on earth. Nevertheless, over the long haul democracies generally
prosper. As Mancur Olson points out: "It
impressive short-run economic records. For several decades, the Soviet Union's annual growth in gross
national product (GNP) exceeded that of the United States, leading Soviet Premier Nikita Khrushchev to
pronounce "we will bury you." China has posted double-digit annual GNP increases in recent years. But
autocratic countries rarely can sustain these rates of growth for long. As Mancur Olson notes, "experience
shows that relatively poor countries can grow extraordinarily rapidly when they have a strong dictator who
happens to have unusually good economic policies, such growth lasts only for the ruling span of one or two
dictators."34 The Soviet Union was unable to sustain its rapid growth; its economic failings ultimately
caused the country to disintegrate in the throes of political and economic turmoil. Most experts doubt that
China will continue its rapid economic expansion. Economist Jagdish Bhagwati argues that "no one can
maintain these growth rates in the long term. Sooner or later China will have to rejoin the human race."35
Some observers predict that the stresses of high rates of economic growth will cause political
fragmentation in China.36 Why do democracies perform better than autocracies over the long run? Two
reasons are particularly persuasive explanations. First, democracies-especially liberal democracies-are
more likely to have market economies, and market economies tend to produce economic growth over the
long run. Most of the world's leading economies thus tend to be market economies, including the United
States, Japan, the "tiger" economies of Southeast Asia, and the members of the Organization for Economic
Cooperation and Development. Two recent studies suggest that there is a direct connection between
economic liberalization and economic performance. Freedom House conducted a World Survey of Economic
Freedom for 1995-96, which evaluated 80 countries that account for 90% of the world's population and
99% of the world's wealth on the basis of criteria such as the right to own property, operate a business, or
belong to a trade union. It found that the countries rated "free" generated 81% of the world's output even
though they had only 17% of the world's population.37 A second recent study confirms the connection
between economic freedom and economic growth. The Heritage Foundation has constructed an Index of
Economic Freedom that looks at 10 key areas: trade policy, taxation, government intervention, monetary
policy, capital flows and foreign investment, banking policy, wage and price controls, property rights,
regulation, and black market activity. It has found that countries classified as "free" had annual 1980-1993
real per capita Gross Domestic Product (GDP) (expressed in terms of purchasing power parities) growth
rates of 2.88%. In "mostly free" countries the rate was 0.97%, in "mostly not free" ones -0.32%, and in
"repressed" countries -1.44%.38 Of course, some democracies do not adopt market economies and some
autocracies do, but liberal democracies generally are more likely to pursue liberal economic policies.
Democracy S War
The spread of democracy reduces the chances of war
Lynn-Jones, 1998
Sean M. Lynn-Jones, Editor, International Security; Series Editor, Belfer Center
Studies in International Security, March 1998, "Why the United States Should
Spread Democracy",
http://belfercenter.ksg.harvard.edu/publication/2830/why_the_united_states_s
hould_spread_democracy.html
In addition to improving the lives of individual citizens in new
democracies, the spread of democracy will benefit the international
system by reducing the likelihood of war. Democracies do not wage
war on other democracies. This absence-or near absence, depending
on the definitions of "war" and "democracy" used-has been called
"one of the strongest nontrivial and nontautological generalizations
that can be made about international relations."51 One scholar argues that
"the absence of war between democracies comes as close as
anything we have to an empirical law in international relations."52 If
the number of democracies in the international system continues to
grow, the number of potential conflicts that might escalate to war
will diminish. Although wars between democracies and
nondemocracies would persist in the short run, in the long run an
international system composed of democracies would be a peaceful
world. At the very least, adding to the number of democracies would
gradually enlarge the democratic "zone of peace."
published in 1983, Michael Doyle compares all international wars between 1816 and 1980 and a list of
liberal states.53 Doyle concludes that "constitutionally secure liberal states have yet to engage in war with
one another."54 Subsequent statistical studies have found that this absence of war between democracies
is statistically significant and is not the result of random chance.55 Other analyses have concluded that
the influence of other variables, including geographical proximity and wealth, do not detract from the
significance of the finding that democracies rarely, if ever, go to war with one another.56 Most studies of
the democratic-peace proposition have argued that democracies only enjoy a state of peace with other
democracies; they are just as likely as other states to go to war with nondemocracies.57 There are,
however, so it would be premature to claim that spreading democracy will do more than to enlarge the
democratic zone of peace. 2. Why there is a Democratic Peace: The Causal Logic Two types of explanations
shared
norms prevent democracies from fighting one another. The second claims
that institutional (or structural) constraints make it difficult or
impossible for a democracy to wage war on another democracy.
have been offered for the absence of wars between democracies. The first argues that
Dem S Terrorism
Democratization solves terrorism
Windsor 3
Jennifer L. Windsor, executive director of Freedom House, Summer 2003, The Washington Quarterly
Can promoting democracy prevent renewed terrorist attacks against the United States? Although
cynics may scoff, democratization has gained credence as a counterterrorism strategy in the aftermath of
the September 11, 2001, attacks. The underlying logic is that democratic institutions and
procedures, by enabling the peaceful reconciliation of grievances and providing channels for
participation in policymaking, can help to address those underlying conditions that have fueled
the recent rise of Islamist extremism. The source of much of the current wave of terrorist
activity -- the Middle East -- is not coincidentally also overwhelmingly undemocratic, and most
regimes in the region lack the legitimacy and capacity to respond to the social and economic challenges
that face them. Although not without risks, and only if pursued as part of a broader strategy,
democratization can help reshape the climates in which terrorism thrives . More specifically,
promoting democratization in the closed societies of the Middle East can provide a set of values and ideas
that offer a powerful alternative to the appeal of the kind of extremism that today has found expression in
terrorist activity, often against U.S. interests.
The term privacy is used frequently in ordinary language as well as in philosophical, political and legal
discussions, yet there is no single definition or analysis or meaning of the term. The concept of privacy has
broad historical roots in sociological and anthropological discussions about how extensively it is valued and
preserved in various cultures. Moreover, the concept has historical origins in well known philosophical
discussions, most notably Aristotle's distinction between the public sphere of political activity and the
private sphere associated with family and domestic life. Yet historical use of the term is not uniform, and
there remains confusion over the meaning, value and scope of the concept of privacy. Early treatises on
protected as private, from normative accounts of privacy defending its value and the extent to which it
another's privacy interests without violating any right to privacy, if there is one.
the United States its lead. The clean-energy field is evolving rapidly.
In just the past few years, there has been a global boom in the wind
and solar industries, with wind powers generating capacity expanding dramatically and
companies competing to offer free solar panels to households. The United States has
played an enormous role in the expansion of these segments and is
the worlds largest generator of renewable energy outside of
conventional hydropower. Thats been due to the countrys unique
combination of a large energy market, advanced research
universities, innovative private-sector laboratories, an abundance of
entrepreneurs, large pools of risk capital, and a historically
supportive policy environment that has created incentives for
innovation in and deployment of clean-energy sources and
technologies. The U.S. has underwritten much of the technological innovation behind clean
energys progress. The pace of innovation is one reason prices have dropped dramatically: Putting solar
panels on American roofs costs, on average, less than half of what it did just two years ago, in part
because a Moores Law-like innovation cycle is unfolding in photovoltaic technology. The price collapse is
great for consumers and utility companies, and it raises the prospect that American energy costs might
someday reverse course, a turn of events that would do wonders for the nations productivity.
American
dominance is threatened on a number of fronts, most notably in the
areas of clean coal, solar power, and the lack of carbon constraints
in our energy policy: Clean coal: Although critics may label it as an oxymoron, clean coal, in
technologies, the U.S. could lose its edge quickly, both in innovation and deployment.
which carbon dioxide and other pollutants from coal power plants are captured and sequestered in
underground formations or used to grow biofuels, is not only a possibility but a necessity for meeting the
worlds growing energy demands in an environmentally and economically sustainable manner. Global coal
resources are enormous and conveniently located in the heart of high-energy-consuming areas such as
energy resources without widespread negative environmental consequences. But as James Fallows
eloquently pointed out in The Atlantic, the U.S. is quickly losing any limited advantages it may have had in
this sector because it has failed to provide the right market signals to encourage deployment of clean-coal
technology. China may soon be positioned to get ahead of the United States and control the patents in
clean coal witness Duke Energys recent signing of an agreement to study possible use of Chinese
carbon-capture-and-storage technology on a coal plant in Indiana. Solar panels: The crash in prices for
photovoltaic solar panels has been accelerated by state-supported Chinese manufacturers practice of
dumping cheap panels on the market a shock for U.S. manufacturers, whose business models have been
based on high margins. American companies have had to slash their margins to compete, and their share
prices have been hammered as a consequence. That dynamic was behind the demise of California-based
solar-panel maker Solyndra, which filed for bankruptcy barely a year after receiving nearly half a billion
dollars in federal loan guarantees. Now that Taiwanese semiconductor giant Foxconn has announced plans
to make solar panels, the carnage could continue. To restore their competitive advantages, American
manufacturers will be forced to create panels that are much more efficient or to move upstream into the
higher-volume business of developing large-scale solar power plants. Carbon constraints and energy policy:
The United States has failed to create effective incentives for reducing the climate impact of its energy
infrastructure and lessening its costly dependence on foreign energy. Europe, Australia, Japan, and now
even China and India are way ahead of the U.S. in establishing policies that impose a cost on greenhousegas emissions. Such policies put a price on carbon emissions and provide an impetus for growth in the
clean-energy industry as well as for more-efficient use of energy resources. American policy makers have
been justly criticized for failing to adopt an attitude of urgency on climate change, but equally important is
American companies
competitive advantages in this field are still substantial, but given
the intensity of global competition, they could disappear in a puff of
smoke.
fostering a sense of urgency on clean-tech innovation and deployment.
Countries like China and Germany are going all in in the race for
clean energy. I believe Americans build things better than anybody
else. I want America to win that race, but we cant win it if were not
in it. President Barack Obama Georgetown University June 25, 2013
The United States has long been a top destination for clean energy
investment, which has helped it to capture many of the near-term
economic, energy security, and environmental benefits that stem from
expanded domestic clean energy generation. Since 2004, in fact, clean
energy investment in the United States increased nearly 250 percent and
reached $36.7 billion in 2013. However, America will need to do more to
continue to compete successfully in the burgeoning clean energy economy.
After leading the global clean energy investment race until 2008, the United
States has fallen behind China in four of the past five years. The countries that
lead in clean energy investment can increase clean energy
manufacturing capacity; secure greater global market share for their
clean energy products; create jobs at home; and help build strong
economies fueled by energy and technologies that hedge against
energy price volatility and future carbon pricing. To maintain its
competitiveness, the United States will need to take bold new steps that
build on what has been accomplished over the past five years and fill the
voids left by the winding down of many of the important clean energy and
energy-efficiency programs and investments made through the
American Recovery and Reinvestment Act of 2009, or ARRA. Filling those
voids, however, will be challenging. The ARRA enabled investors to finance clean
energy projects during a time of capital scarcity and to keep our clean energy
sector competitive during a global recession. It did this by providing more than
$90 billion in clean energy investments through loans and loan guarantees to capitalintensive projects, tax credits to lower project costs for companies, upfront grants to help businesses that
Solvency
A BILL
To prohibit Federal agencies from mandating the deployment of
vulnerabilities in data security technologies.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the Secure Data Act of 2015.
SEC. 2. PROHIBITION ON DATA SECURITY VULNERABILITY
MANDATES.
(a) IN GENERAL.Except as provided in subsection (b), no agency
may mandate that a manufacturer, developer, or seller of covered
products design or alter the security functions in its product or service
to allow the surveillance of any user of such product or service, or to
allow the physical search of such product, by any agency.
the proposed
Secure Data Act, developers cannot be forced to insert security
holes into devices and code. An ACLU lawyer quoted in the story said that the previous
bills success might indicate that at least in the House they know how important it is to secure encryption
efforts. Massie, Lofgren, and Sensenbrenner tried to pass a similar version of the Secure Data Act near
the end of the 113th Congress. The legislation passed with broad support, 293-123, but was not included
in the omnibus bill that passed at the end of the session. A Senate version of the Secure Data Act was
introduced by Oregon U.S. Sen. Ron Wyden (D) in January. His bill is still waiting to move through the
Senate Committee on Commerce, Science and Transportation. Regaining the peoples trust may be one of
Polls have
consistently shown that Americans do not approve of the current
methods of surveillance and data collection. Previous bills have
passed Congress seeking to limit the power and authority of
agencies like the National Security Agency. However, the final
products were severely watered down versions of the initial
legislation. Even extensively supported bills such as the previous
Secure Data Act failed to get anywhere in both chambers of
Congress.
the harder obstacles when it comes to regulations on spying and surveillance.
While the FBI thinks that all communication tools in the US should have backdoors for law enforcement, a
new Senate bill has proposed the exact opposite.
the Secure Data Act would specifically bar US agencies from forcing
private companies to "design or alter their commercial information
technology products for the purpose of facilitating government
surveillance." Wyden's bill cites some familiar problems with backdoors that emerged with the
mass of documents revealed by Edward Snowden. The main point is that such measures have the effect of
weakening security overall. For instance, it cites a backdoor placed by law enforcement in Greece to
monitor cellphone calls, that was later exploited by third parties to listen in on government officials. It also
contends that such security exploits hurt innovation, since companies have no incentive to create new
security tech if they're forced to deliberately open holes. Finally, it cited the loss of trust by the public, both
stateside and abroad, in US products and services.
comments by U.S. officials, most notably the Federal Bureau of Investigation (FBI) Director James Comey, chastising Apple
and Google for creating encrypted devices to which law enforcement cannot gain access. Comey and others have argued
that U.S. tech companies should design a way for law enforcement officials to access consumer data stored on those
devices. In this environment,
the FBI is working against its own goal of preventing cybercrime as well as broader government efforts to improve
cybersecurity. Just a few years ago, the Bureau was counseling people to better encrypt their data to safeguard it from
in the system and work to prevent any new ones. Rather than
decreasing security to suit its appetite for surveillance , the FBI should
recognize that better security is needed to bolster U.S. defenses against
online threats. The Secure Data Act is an important step in that
direction because it will stop U.S. law enforcement agencies from
requiring companies to introduce vulnerabilities in their products. If
this bill is enacted, law enforcement will be forced to use other means to solve crimes, such as by using metadata from
Cybersecurity Unita unit designed solely to deter, investigate, and prosecute cyber criminals, should work in
cooperation with the private sector to create a safer environment online.
legislation and considers amendments, it should restrict not just government access to devices, but also government
control of those devices. These efforts will move the efforts of our law enforcement agencies away from creating cyber
vulnerabilities and allow electronics manufacturers to produce the most secure devices imaginable.
Since Mr. Snowdens disclosures ignited criticism of overreach and privacy infringements by the N.S.A.,
there are strong hints that many such services have been compromised.
According to the Times, by 2012, the GCHQ the British equivalent of the
NSA had developed new access opportunities into Google's
systems. The Guardian has also reported that Microsoft has worked with
the NSA to get pre-encryption stage access to email on outlook.com,
including Hotmail. Given the magnitude of spying that could occur with
private key access to major service providers, this is a critical
question and Internet users deserve an answer to be able to choose
what communication platforms to use. What methods does the NSA use
to obtain private encryption keys? The Times says that how keys are acquired
is shrouded in secrecy, but speculates that many are likely collected by
hacking into companies' servers. Having concrete evidence of these attacks
would have important legal and technical ramifications, and we hope that this
information comes to light, both so that companies have the opportunity to
improve the security of their servers and so the American public can take
part in a transparent debate about what targets and methods are appropriate
for the NSA to pursue. What hardware has the NSA backdoored? The New
York Times reports that, in addition to partnering with
telecommunications providers and other companies, including
Microsoft, the NSA had found ways inside some of the encryption
chips, either by working with chipmakers to insert back doors or by
surreptitiously exploiting existing security flaws. This means that there is
probably a lot of hardware floating around that the NSA knows to be
insecure, leaving many individuals and companies likely vulnerable
to a host of attackers. As we've explained before, back doors
fundamentally undermine everybody's security, not just that of bad
guys. We need to know what hardware is affected so that these
vulnerabilities can be fixed. This is especially critical now that these leaks
have come out, since malicious attackers now have been tipped off
that back doors exist, and so it is even more likely that exploitable
vulnerabilities will be discovered by parties other than the NSA, if
they have not been already. What power does the NSA have over companies
to get them to cooperate? How often do companies cooperate, and what
happens when they say no? We need to know if and how the NSA uses the
legal system to compel company cooperation with requests for back doors.
While FISA may allow the government to seek technical assistance from
telecoms, there is nothing in the law to require the addition of backdoors to
secure communications products, either in software or in hardware. Indeed,
when the government attempted to legally require encryption
backdoors with the Clipper Chip, EFF and others fought back and defeated
the proposal. If the NSA thinks it has this authority, it has to come forward
and explain the basis. We also need to know how often this cooperation
occurs and on what scale. For example, the New York Times reports that in
one case, after the government learned that a foreign intelligence target had
ordered new computer hardware, the American manufacturer agreed to insert
a back door into the product before it was shipped. Are these sorts of
agreements common? Are the companies pressured, enticed, or is the
cooperation voluntary? Conclusion The NSA needs to come clean about the
scope of its capabilities and relationships with companies. President Obama
has said that new public disclosures about the NSA constitute only bits and
pieces of a larger story, and that to have an open and democratic debate we
should "put the whole elephant out there." Unfortunately, this purported
concession of more transparency has not been borne out, as we have seen
continued unwillingness on the part of the Intelligence Community or the
President to reveal or confirm enough information to have a truly informed
debate. The lack of openess around these clandestine programs has
become a liability for America . The Director of National Intelligence
James Clapper claimed last week that these leaks have harmed America's
efforts to thwart terrorists by revealing "specific techniques we are
using to try to intercept their communications." This is the tired and
empty rhetoric of fear that we've seen again and again. Nobody is suggesting
that particular investigations or individual spying efforts must be revealed.
But while any terrorist with half a brain has already stopped using Facebook,
millions of people may stop using American-based social networks,
email providers, or hardware if they believe them to be insecure.
That's why we need more details, not fewer, to better understand the
scope and contours of these spying programs, and to have an open
democratic debate about what methods the NSA should use to accomplish its
mission
A2:
Case
countless private and public organizations and hundreds of millions of individuals use to secure
communications online. As reported in the pages of The New York Times, The Guardian and ProPublica,
NSA being the NSA. Bullrun is different, revealing an almost Machiavellian determination by the
NSA to have access to every byte and bit of information coursing through the global Internet, regardless of
The National Institute of Standards and Technology (or NIST). That esteemed Institute, which was founded
more than a century ago to be the keeper of standard weights and measures for the U.S. government has
played a key role in the development and promotion of cyber security standards within the Government
and (by extension) the broader economy. According to reports by The Guardian, the Times and ProPublica,
NIST allowed the National Security Agency (NSA) to manipulate a key standard
for what are known as random bit generators. Specifically, the NSA used its influence within the
NIST board overseeing the NIST standard known as SP (or Special Publication) 800-90 to insert a
pseudorandom number generator called Dual EC DRBG into the NIST standard. Dual EC DRBG, it turns out,
contained a backdoor that allows the NSA to covertly decrypt material that was encrypted with the aid of
that pseudorandom number generator. The NSA pushed for the use of the SP 800-90 standard and
eventually became the sole editor of it unbeknownst to the outside world. NIST has since re-opened
800-90 for comment and says its committed to vetting other standards where there are questions about
Green, a cryptographer and research professor at The Johns Hopkins University said that the revelations
about Dual EC DRBG are the first concrete proof that the NSA was using its influence at NIST for evil (i.e.
offensive operations) as well as good (to make NIST standards more secure. That b reach
of trust
throws every other standard that NIST has created in cooperation
with the NSA into doubt technologies ranging from pseudo-random number generators to
hash functions and ciphers, all the way to the specific elliptic curves we use in SSL/TLS, Green notes.
recently commented that the inability to access encrypted information poses public safety challenges. In
other words, the inability to access data could prevent defense agencies from actually defending the
time for Obama to put an end to these dangerous suggestions that we should deliberately weaken the
cybersecurity of Americans products and services. Its time for America to lead the world toward a more
secure future rather than a digital ecosystem riddled with vulnerabilities of our own making, Bankston
added
Ministers have denied that GCHQ does the NSA's "dirty work", but in the documents
leaked by the American whistleblower Edward Snowden, the former NSA contractor who has railed at the
reach of the US and UK intelligence agencies.
The details of the NSA payments, and the influence the US has over Britain, are set out in GCHQ's annual
"investment portfolios". The papers show that the NSA gave GCHQ 22.9m in 2009. The following year the
NSA's contribution increased to 39.9m, which included 4m to support GCHQ's work for Nato forces in
Afghanistan, The NSA also paid 15.5m towards redevelopments at GCHQ's sister site in Bude, north
Cornwall, which intercepts communications from the transatlantic cables that carry internet traffic.
In
2011/12 the NSA paid another 34.7m to GCHQ. The papers show the NSA
pays half the costs of one of the UK's main eavesdropping
capabilities in Cyprus. In turn, GCHQ has to take the American view
into account when deciding what to prioritise. A document setting out GCHQ's
"Securing external NSA funding for Bude has protected (GCHQ's core) budget," the paper said.
spending plans for 2010/11 stated: "The portfolio will spend money supplied by the NSA and UK
government departments against agreed requirements." Other documents say the agency must ensure
there has been "an appropriate level of contribution from the NSA perspective". The leaked papers
that it had supplied "unique contributions" to the NSA during its investigation of the American citizen
responsible for an attempted car bomb attack in Times Square, New York City, in 2010. No other detail is
provided but it
on an American living in the US. The NSA is prohibited from doing this by US law. Asked
about the payments, a Cabinet Office spokesman said: "In a 60-year alliance it is entirely unsurprising that
there are joint projects in which resources and expertise are pooled, but the benefits flow in both
directions." A senior security source in Whitehall added: "The fact is there is a close intelligence
relationship between the UK and US and a number of other countries including Australia and Canada.
There's no automaticity, not everything is shared. A sentient human being takes decisions." Although the
sums represent only a small percentage of the agencies' budgets, the money has been an important
source of income for GCHQ. The cash came during a period of cost-cutting at the agency that led to staff
Cyprus bemoaned the lack of staff devoted to one eavesdropping programme, saying: "This is not
sustainable if numbers reduce further and reflects badly on our commitments to the NSA." The overriding
necessity to keep on the right side of the US was revealed in a UK government paper that set out the views
of GCHQ in the wake of the 2010 strategic defence and security review. The document was called: "GCHQ's
international alliances and partnerships: helping to maintain Britain's standing and influence in the world."
It said: "Our key partnership is with the US. We need to keep this relationship healthy. The relationship
remains strong but is not sentimental. GCHQ must pull its weight and be seen to pull its weight."
Astonishingly, the document admitted that 60% of the UK's high-value intelligence "is based on either NSA
end-product or derived from NSA collection". End product means official reports that are distillations of the
explicit two years ago when GCHQ set out its priorities for the coming years. "We both accept and
accommodate NSA's different way of working," the document said. "We are less constrained by NSA's
concerns about compliance." GCHQ said that by 2013 it hoped to have "exploited to the full our unique
selling points of geography, partnerships [and] the UK's legal regime". However, there are indications
from within GCHQ that senior staff are not at ease with the rate and pace of change. The head of one of its
programmes warned the agency was now receiving so much new intelligence that its "mission
management is no longer fit for purpose". In June, the government announced that the "single
intelligence account" fund that pays for GCHQ, MI5 and MI6 would be increased by 3.4% in 2015/16. This
comes after three years in which the SIA has been cut from 1.92bn to 1.88bn. The agencies have also
been told to make 220m savings on existing programmes. The parliamentary intelligence and security
committee (ISC) has questioned whether the agencies were making the claimed savings and said their
budgets should be more rigorously scrutinised to ensure efficiencies were "independently verifiable and/or
sustainable". The Snowden documents show GCHQ has become increasingly reliant on money from
"external" sources. In 2006 it received the vast majority of its funding directly from Whitehall, with only
14m from "external" funding. In 2010 that rose to 118m and by 2011/12 it had reached 151m. Most of
this comes from the Home Office.
A2 Off-Case
A2: T Surveillance
Surveillance requires dissemination NOT just collection
LSHTM 09
The London School of Hygenie and Tropical Medicine, The use of epidemiological tools in conflict-affected
populations: open-access educational resources for policy-makers, 2009,
http://conflict.lshtm.ac.uk/page_68.htm SJE
surveillance.
http://www.economist.com/news/science-and-technology/21639988-why-dopeople-cherish-privacy-yet-cheerfully-surrender-it-right-be-left-alone, ST)
Some years ago, The Economist organised an online debate on the topic. The outcome, after weeks of
commentary with much virtual ink being spilled, was that readers voted by a handsome margin for the
defence of privacy. The majority viewed privacy as sacrosanct. Nothing in their concern over terrorism
justified sacrificing privacy on the alter of pragmatism. Other media surveys since have broadly agreed,
"I certainly have great respect for those that would argue that the most important thing is to ensure the
privacy of our citizens and we shouldnt allow any means for the government to access information, NSA
Director Adm. Michael Rogers said during a speech in Estonia on Wednesday, according to reports. I
data, though. Companies such as Apple and Google have encryption in place that they say locks even
them out. The White House is expected to release a report soon detailing several options for law
enforcement to bypass encryption and access data during investigations.
Theodore Kaczynski, the lone wolf is organized and meticulous in the planning and preparation of his
crimes and often provides a written rational or manifesto for committing his crimes. In spite of Kaczynski
being a paranoid schizophrenic, he was able to remain undetected for 17 years until he wanted his
manifesto published. Being an organized offender, the classic lone wolf often prepares escape and
contingency plans. In the case of Eric Rudolph, a radical right-wing bomber in the 1990s, the lone wolf was
able to commit multiple crimes and live for years as a fugitive in the mountains of North Carolina. Most
importantly, the lone wolf offender, just like the serial killer he is or aspire to be, is successful. The true
lone wolf hides in plain sight, never drawing attention until something prompts him to act on his fantasy.
None of the above traits and characteristics fit Zehaf-Bibeaus profile. His life was a train wreck of drugs
and mental illness with little or no evidence of organization. While all current evidence points to the fact
that Zehaf-Bibeau was most-likely acting alone and without direction, he does not appear to be a classic
organized lone wolf. Rather he more closely resembles a spree killer who acts spontaneously, without a
plan, attempting to kill as many people as possible in as short a time as possible. Zehaf-Bibeau was on a
suicide mission with no expectation of survival, therefore no plan for escape. And as far as we know, he left
no manifesto or explanation of his actions. In short, Zehaf-Bibeau was a disorganized murderer, acting out
his fantasies. The dilemma for law enforcement in a constitutional or parliamentary democracy centers
around how to identify the Zehaf-Bibeaus of the world and prevent criminal acts when they represent such
a small minority among a terrorism demographic that, by definition, is willing to act without the direction
or support of any main terror organization. The media has been quick to label this case an intelligence
failure without considering the limitations on when an intelligence or criminal case can be initiated and
pursued by CSIS or the RCMP. According to Canadian media reports, Zehaf-Bibeau was neither a "high
priority" for CSIS nor on the RCMPs list of "90 or so individuals under criminal investigation as potential
threats," unlike the previous weeks lone wolf, Martin Couture-Rouleau "who waited in a parking lot for at
least two hours before driving his car into two Canadian soldiers." No one familiar with law enforcement
procedures will be surprised to learn that Zehaf-Bibeau wasnt on the radar of the RCMP or CSIS. Until he
began his shooting spree, Zehaf-Bibeau had committed no recent crime nor telegraphed any specific intent
to do so. Yet the Globe and Mail reported later that Zehaf-Bibeau "tried and failed to use prayer as a shield
against the drug addiction and mental instability stalking him through adulthood." And the New York Times
reported "despite a criminal record, an embrace of extremist ideas and an intent to travel to Syria" ZehafBibeau "was not identified as a threat." Even if Zehaf-Bibeau had somehow signaled his growing
radicalization, the RCMP would still have been constrained in its ability to investigate him. In the United
States the standard is for "reasonable suspicion." In Canada it is the same. Prior to the shooting there was
no evidence that the shooter presented a specific or articulable threat. The public dilemma for the
RCMP, and also the FBI in the U.S., is how to identify the less than one percent of offenders who
will evolve and mature into violent, psychopathic, spree-killing terrorists and, possibly, selforganized lone wolf offenders without violating their civil rights and everyone elses.
Absent specific intelligence to direct law enforcement to the most dangerous terrorist threats and develop
reasonable suspicion to open a case, the FBI or RCMP will be forced to conduct assessments on
every wanna-be jihadist, angsty teenager with a grudge, psychopath looking for an excuse to
kill, and generally disorganized murderous wing-nut seeking revenge whether religious or
otherwise in order to find that one percent reflecting a potential "lone wolf" terrorist.
Needless to say, thats a tremendous waste of officers time and taxpayers resources. Finding
a true lone wolf offender is like trying to find the proverbial needle in a haystack. Michael ZehafBibeau is gone. Canada and the world may never determine exactly what drove him murder to Nathan
Cirillo and attempt to murder numerous others. But so far, Canada is responding responsibly to the
tragedy, not allowing temporary anger to distract them from the real threat: al Qaeda, the Islamic State,
and the other transnational terror groups around the world, organizing and planning the next big terrorist
attack on the West.
that it's far safer than making the same trip by car; or every time that I jump into the Pacific Ocean,
knowing that, as terrifying as sharks are, it's unlikely I'll be killed by one. As individuals, Americans are
generally good at denying al-Qaeda the pleasure of terrorizing us into submission. Our cities are bustling;
our subways are packed every rush hour; there doesn't seem to be an empty seat on any flight I'm ever
on. But as a collective, irrational cowardice is getting the better of our polity. Terrorism isn't something
we're ceding liberty to fight because the threat is especially dire compared to other dangers of the
modern world. All sorts of things kill us in far greater numbers. Rather, like airplane crashes
and shark attacks, acts of terror are scarier than most causes of death. The seeming
contradictions in how we treat different threats suggest that we aren't trading civil liberties for security,
but a sense of security. We aren't empowering the national-security state so that we're safer, but so we
feel safer. Of course we should dedicate significant resources and effort to stopping terrorism. But consider
some hard facts. In 2001, the year when America suffered an unprecedented terrorist attack -by far the biggest in its history -- roughly 3,000 people died from terrorism in the U.S. Let's
put that in context. That same year in the United States: 71,372 died of diabetes. 29,573
were killed by guns. 13,290 were killed in drunk driving accidents. That's what things looked
like at the all-time peak for deaths by terrorism. Now let's take a longer view. We'll choose an
interval that still includes the biggest terrorist attack in American history: 1999 to 2010. Again, terrorists
killed roughly 3,000 people in the United States. And in that interval, roughly 360,000 were killed by guns
(actually, the figure the CDC gives is 364,483 -- in other words, by rounding, I just elided more gun deaths
than there were total terrorism deaths). roughly 150,000 were killed in drunk-driving accidents. Measured
in lives lost, during an interval that includes the biggest terrorist attack in American history, guns posed a
threat to American lives that was more than 100 times greater than the threat of terrorism. Over the same
interval, drunk driving threatened our safety 50 times more than terrorism. Those aren't the only
threats many times more deadly than terrorism, either. The CDC estimates that food poisoning
kills roughly 3,000 Americans every year. Every year, food-borne illness takes as many lives in the
U.S. as were lost during the high outlier of terrorism deaths. It's a killer more deadly than terrorism.
Should we cede a significant amount of liberty to fight it? Government officials, much of the media, and
most American citizens talk about terrorism as if they're totally oblivious to this context -- as if it is
different than all other threats we face, in both kind and degree. Since The Guardian and other news
outlets started revealing the scope of the surveillance state last week, numerous commentators and
government officials, including President Obama himself, have talked about the need to properly "balance"
liberty and security. The U.S. should certainly try to prevent terrorist attacks, and there is a lot that
government can and has done since 9/11 to improve security in ways that are totally unobjectionable. But
it is not rational to give up massive amounts of privacy and liberty to stay marginally safer
from a threat that, however scary, endangers the average American far less than his or her
daily commute. In 2011*, 32,367 Americans died in traffic fatalities. Terrorism killed 17 U.S.
civilians that year. How many Americans feared dying in their vehicles more than dying in a
terrorist attack?
A2: PRISM CP
Ending PRISM doesnt do anything its a part of the
misinformation campaign constructed to distract the
public from programs like Bullrun
Paganini 13 [Pierluigi: Chief Information Security Officer at Bit4Id, firm
leader in identity management, member of the ENISA (European Union
Agency for Network and Information Security), cyber security expert with
over 20 years experience in the field, he is Certified Ethical Hacker at EC
Council in London, NSA Bullrun program, encryption and false perception of
security, Security Affairs, September 7, 2013,
http://securityaffairs.co/wordpress/17577/intelligence/nsa-bullrun-programfalse-perception-security.html // emb].
NSA and other agencies siphoned data from land and undersea
cables, just after the revelations on PRISM program intelligence has
started a misinformation campaign sustaining that US authorities
was working to find the way to crack encrypted traffic, in reality the
agency has no reason to do it and the Bullrun program is the proof .
Misinformation as a pure diversion to influence the global sentiment
and keep the lights of the media far from the dirty collusions of
governments and private companies. None of methods used to
access to encryption keys involve in cracking the algorithms and the
math underlying the encryption, but rely upon circumventing and
otherwise undermining encryption.
A2: Courts CP
Courts cant solve the NSA is shielded
regarding the scope of a major collection program, Judge Bates wrote. One of
the examples was redacted in the ruling. Another involved a separate N.S.A. program that keeps logs of all
domestic phone calls, which the court approved in 2006 and which came to light in June as a result of leaks
by Mr. Snowden. In March 2009, a footnote said, the surveillance court learned that N.S.A. analysts were
using the phone log database in ways that went beyond what the judges believed to be the practice
because of a repeated inaccurate statements in government filings to the court. Contrary to the
governments repeated assurances, N.S.A. had been routinely running queries of the metadata using
group, sued to obtain the ruling after Senator Ron Wyden, an Oregon Democrat who sits on the Senate
Intelligence Committee, fought last summer to declassify the basic fact that the surveillance court had
Mr. Wyden an
outspoken critic of N.S.A. surveillance said declassification of the
ruling was long overdue. He argued that while the N.S.A. had
increased privacy protections for purely domestic and unrelated
communications that were swept up in the surveillance, the
collection itself was a serious violation of the Fourth Amendment.
ruled that the N.S.A. had violated the Fourth Amendment. In a statement,
Mark Rumold of the Electronic Frontier Foundation praised the administration for releasing the document
But he
also said the ruling showed the surveillance court was not equipped
to perform adequate oversight of the N.S.A. This opinion illustrates
that the way the court is structured now it cannot serve as an
effective check on the N.S.A. because its wholly dependent on the
representations that the N.S.A. makes to it, Mr. Rumold said. It has
no ability to investigate. And its clear that the N.S.A.
representations have not been entirely candid to the court. A
senior intelligence official, speaking to reporters in a conference
call, portrayed the ruling as showing that N.S.A. oversight was
robust and serious. He said that some 300 N.S.A. employees were
assigned to seek out even inadvertent violations of the rules and
that the court conducted vigorous oversight. The ruling focused on a program
under which the N.S.A. has been searching domestic Internet links for
communications where at least one side is overseas in which
there are strong selectors indicating insider knowledge of
someone who has been targeted for foreign-intelligence collection.
One example would be mentioning a persons private e-mail address in the body of an e-mail. Most of
the time, the system brings up single communications, like an e-mail
or text message. But sometimes many messages are packaged and
travel in a bundle that the N.S.A. calls multi-communication
transactions. A senior intelligence official gave one example: a Web
page for a private e-mail in-box that displays subject lines for dozens
of different messages each of which is considered a separate
communication, and only one of which may discuss the person who
has been targeted for intelligence collection. While Judge Bates ruled that it was
acceptable for the N.S.A. to collect and store such bundled communications, he said the agency
was not doing enough to minimize the purely domestic and
unrelated messages to protect Americans privacy. In response, the N.S.A.
with relatively few redactions, although he criticized the time and the difficulty in obtaining it.
agreed to filter out such communications and store them apart, with greater protections, and to delete
them after two years instead of the usual five. A Justice Department white paper released with the ruling
shed new light on N.S.A. surveillance of communications streaming across domestic telecommunications
networks. Such upstream collection, which still must be targeted at or be about noncitizens abroad,
A2: XO CP Perm
Executive Orders dont solve cybersecurity, Congress +
Executive key to solve
Blackburn and Scalise 12
Marsha, Steve, Members of Congress, Other signatures of the letter: 44 other
members of congress, Republicans Demand White House Not Issue
Cybersecurity Executive Order,
http://blackburn.house.gov/news/documentsingle.aspx?
DocumentID=315922 //NA
Dear President Obama: We write to express our grave concern
regarding the Administrations non-transparent pursuit of an
Executive Order related to cybersecurity. Now is not the time to put heave-handed
regulations on industries that need incentives to improve their cyber defenses and share cyber threat
information. Instead of preempting Congress will and pushing a top-down regulatory framework, your
administration should engage Congress in an open and constructive manner to help address the serious
cybersecurity challenges facing our country. This Congress the House passed bipartisan cybersecurity
the House supported legislation that provides liability-sharing with strong privacy safeguards. This
framework will work better than attempts to place the government in charge of overseeing minimum
standards for industries seeking to invest in new and innovative security solutions. Incentive-based
security is necessary because rapid changes in technology guarantee the failure of static, regulatory
approaches. We believe stakeholders in the cyber ecosystem should be encouraged to develop and deploy
Misc
Cooperation Key
The NSA relies upon the cooperation of tech and internet
companies either its voluntary or coerced via fines and
jail time
Larson 13 [Jeff: Data Editor at ProPublica. Won the Livingston Award,
Revealed: The NSAs Secret Campaign to Crack, Undermine Internet
Security, ProPublica, September 5, 2013
http://www.propublica.org/article/the-nsas-secret-campaign-to-crackundermine-internet-encryption // emb].
When the N.S.A. was founded, encryption was an obscure technology used mainly by diplomats and
military officers. Over the last 20 years, with the rise of the Internet, it has become ubiquitous. Even
novices can tell that their exchanges are being automatically encrypted when a tiny padlock appears next
to the Web address on their computer screen.
SIGINT
The Importance of SIGINT
NSA, 2015
John Casaretto, Staff Writer at Silicon Angle, September 6th 2013, Bullrun:
The NSA Backdoor or Anti-Encryption Bug Program that Breaks Most
Encryption on the Internet http://siliconangle.com/blog/2013/09/06/bullrunthe-nsa-backdoor-anti-encryption-bug-program-that-breaks-most-encryptionon-the-internet/
According to an intelligence budget document leaked by Mr. Snowden, the
N.S.A. spends more than $250 million a year on its Sigint Enabling
Project, which actively engages the U.S. and foreign IT industries to
New York Times, September 5th 2013, Secret Documents Reveal N.S.A.
Campaign Against Encryption,
http://www.nytimes.com/interactive/2013/09/05/us/documents-reveal-nsacampaign-against-encryption.html
The SIGNT Enabling Project actively engages the US and foreign IT
industries to covertly influence and/or overtly leverage their commercial
products' designs. These design changes make the systems in
question exploitable through SIGINT collection (e.g., Endpoint,
Midpoint, ect.) with foreknowledge of the modification. To the
consumer and other adversaries, however, the systems' security
remains intact. In this way, the SIGINT Enabling approach uses
commercial technology and insight to manage the increasing cost
and technical challenges of discovering and successfully exploiting
systems of interest within the ever-more integrated and securityfocused global communications environment.
James Ball, Julian Borger and Glenn Greenwald, Staff Writers at the Guardian,
September 6th 2013, Revealed: how US and UK spy agencies defeat internet
privacy and security, http://www.theguardian.com/world/2013/sep/05/nsagchq-encryption-codes-security
The key component of the NSA's battle against encryption, its
collaboration with technology companies, is detailed in the US intelligence
community's top-secret 2013 budget request under the heading "Sigint
[signals intelligence] enabling". Funding for the program $254.9m
for this year dwarfs that of the Prism program, which operates at a
cost of $20m a year, according to previous NSA documents. Since
2011, the total spending on Sigint enabling has topped $800m. The
program "actively engages US and foreign IT industries to covertly influence
and/or overtly leverage their commercial products' designs", the document
states. None of the companies involved in such partnerships are named;
these details are guarded by still higher levels of classification. Among other
things, the program is designed to "insert vulnerabilities into commercial
encryption systems". These would be known to the NSA, but to no one else,
SIGINTs Purpose
Richelson, 2015
Agency operatives were also able to tap into radio-telephone communications of Communist leaders as
they rode in limousines around Moscow, to track Soviet missile launches from two secret stations inside
the Shah's Iran, and to intercept Warsaw Pact communications from a tunnel dug under East Berlin. These
achievements were not without bureaucratic costs. The RHYOLITE program raised hackles at both the
National Reconnaissance Office (NRO), which oversaw much of U.S. satellite intelligence activity, and the
NSA, whose personnel initially found themselves cut out of the program. Overseas, the Soviet limo bugging
ended after a news report disclosed it and may also have led to the execution of the Soviet agent who
installed the listening devices. After the Shah fled Iran during the 1979 revolution, the founders of the
Islamic Republic quickly seized the two sensitive US monitoring sites, handing a major loss to American
Not Cards
NSA has forced other companies in the past and still could
Peterson and Nakashima 14 [Ellen Nakashima is a national security
reporter for The Washington Post. She focuses on issues relating to
intelligence, technology and civil liberties., Andrea Peterson covers
technology policy for The Washington Post, with an emphasis on
cybersecurity, consumer privacy, transparency, surveillance and open
government, House votes to rein in NSA back door surveillance powers,
June 20, 2014
http://www.washingtonpost.com/blogs/the-switch/wp/2014/06/20/housevotes-to-rein-in-nsa-back-door-surveillance-powers/ // mm].
If passed as-is by the Senate, the bill would block the government from
doing two things: search government databases for information on a
U.S. citizen without a warrant, and force an organization to build
into its product any technical "back door" that would assist the CIA
or NSA with electronic surveillance. Under a 2008 law known as the
FISA Amendments Act, the NSA may acquire communications
without an individualized warrant if one of the parties is reasonably
believed to be a foreigner located outside the country and if the
information is for a valid foreign intelligence purpose. The amendment
would bar the use of funds for searching an American's communications under this authority without a
warrant. Government officials contend that they are not required to obtain a warrant to search on data
acquired lawfully. To do so would be a burden that would impair intelligence investigations, they say. The
Foreign Intelligence Surveillance Court in 2011 reversed a previous ban on such warrantless searches.
The amendment would also block the NSA and the CIA from asking or
requiring a person to "alter its product or service to permit the
electronic surveillance" of users -- essentially a ban on back doors in
software and hardware.
providers to the National Security Agencys vast surveillance program. Even as Washington grapples with
the diplomatic and political fallout of Mr. Snowdens leaks, the more urgent issue, companies and analysts
Author Unknown
How does the US Economy Affect the Global Economy,
http://www.worldfinancialwatch.com/us-economy/how-does-the-us-economyaffect-the-world-economy/
The US dollar is used in most international transactions, so it stands
to reason that anything that happens with the US economy will
affect international finances in a substantial way. As the United
States Federal Reserve raises interest rates, the foreign exchange
value of the dollar usually goes up as well. One of the biggest ways
the US affects the worlds economy, though, is its buying power. With
gas prices going up and the dollar not worth as much as it used to be,
Americans are buying less. Many countries that export goods to the US will
have a reduction in demand for their products. Nations with less than stable
economies could suffer dramatically from this downturn in spending, which
would cause them to be less capable of buying American exports, furthering
the downward spiral. The US government has tried to combat this vicious
cycle by promoting free trade with foreign countries and a new economic
stimulus package. The stimulus package gives free money to American
citizens in hopes that they will spend the money on products instead of bills
or investments, thereby stimulating the economy. Some countries stand to
lose a lot if the United States were to fall into recession; there are
many people watching to see if the recent proposals of the US government
will turn the financial situation around.
Orlov, 2015
Dmitry Orlov, A Russian-American engineer and a writer on subjects related
to "potential economic, ecological and political decline and collapse in the
United States, March 3rd 2015, Financial Collapse Leads to War,
http://www.theburningplatform.com/2015/03/03/financial-collapse-leads-towar/
The US has surrendered its sovereignty to a clique of financial
oligarchs. Having nobody at all to answer to, this American (and to some
extent international) oligarchy has been ruining the financial condition of
the country, running up staggering levels of debt, destroying
savings and retirements, debasing the currency and so on. The
inevitable end-game is that the Federal Reserve (along with the
central banks of other developed economies) will end up buying
up all the sovereign debt issuance with money they print for that
purpose, and in the end this inevitably leads to hyperinflation and
national bankruptcy. A very special set of conditions has prevented these two events from
taking place thus far, but that doesnt mean that they wont, because thats what always happens, sooner
or later. Now, lets suppose a financial oligarchy has seized control of the country, and, since it cant
control its own appetites, is running it into the ground. Then it would make sense for it to have some sort
of back-up plan for when the whole financial house of cards falls apart. Ideally, this plan would effectively
put down any chance of revolt of the downtrodden masses, and allow the oligarchy to maintain security
Bad Russia, or hallucinated space aliens. Military success is unimportant, because failure is even better
than success for maintaining order because it makes it possible to force through various emergency
security measures. Various training runs, such as the military occupation of Boston following the staged
The surveillance
infrastructure and the partially privatized prison-industrial complex
are already in place for locking up the undesirables . A really huge
failure would provide the best rationale for putting the economy on
a war footing, imposing martial law, suppressing dissent, outlawing
extremist political activity and so on. And so perhaps that is what we should
expect. Financial collapse is already baked in, and its only a matter of
time before it happens, and precipitates commercial collapse when
global supply chains stop functioning. Political collapse will be
resisted, and the way it will be resisted is by starting as many wars
as possible, to produce a vast backdrop of failure to serve as a
rationale for all sorts of emergency measures, all of which will
have just one aim: to suppress rebellion and to keep the oligarchy in
power. Outside the US, it will look like Americans blowing things up:
countries, things, innocent bystanders, even themselves (because, you
know, apparently that works too). From the outside looking into Americas hall of
one-way mirrors, it will look like a country gone mad ; but then it already looks
bombings at the Boston Marathon, have already taken place.
that way. And inside the hall of one-way mirrors it will look like valiant defenders of liberty battling
implacable foes around the world. Most people will remain docile and just wave their little flags. But I
at some point failure will translate into metafailure: America will fail even at failing. I hope that there is something we can do to help this metawould venture to guess that