Category Archives: IT

Comprehension

Yesterday has been a weird day for France, unlike here in Sydney; they had their dealings with terrorists. You see, I remain in the mindset that what happened in martin Place last month was a crazy person with a gun, the fact that he was a Muslim makes little difference. He was a mental health case with deadly intent, it got him killed, but only after he killed some of his victims. France is an entirely different kettle of fish. Here is the YouTube link:  https://www.youtube.com/watch?v=LBGVwZyXYlQ (in French with English subtitles), I normally would not add something like this, but it is important to see the difference. This is not some hostage situation asking for a flag, this is almost military precision, it is direct, clean (pardon the expression), kill and get out! A policeman was on the scene and was executed without any consideration.

Here you see directly what Israel has faced on a daily basis; this is what the direct hatred of Jews looks like. Even though this is against a satirical cartoonist, the hatred of these extremists’ remains the same. The Guardian has an article by Jonathan Freedland that covers several parts of what bothers me. The article ‘Charlie Hebdo: first they came for the cartoonists, then they came for the Jews‘ (at http://www.theguardian.com/commentisfree/2015/jan/09/charlie-hebdo-cartoonists-paris-killers-fascist-death-cult) gives us a few views. The quote: “They hated the cartoons, we say. Free speech was the target, we declare. They wanted to silence satire and gag dissent“, this was not unlike my view. I find satire enjoyable, but when you touch religion (any religion), some people tend to get a little off the balanced sane side. Some get abusive, some get a little violent, yet as far as I know, none will act to this degree (although opposites in the India – Pakistan debates might not agree with me). No matter what I think or believe, Charlie Hebdo was in a place with free speech and he was entitled to it. The best comparison I heard was from an American Journalist describing Charlie Hebdo as the French version of ‘the Onion’.

When we see the following two quotes we get to the real stuff: “Then on Friday, a siege at a kosher supermarket, four hostages confirmed dead, the murderers apparently linked to those behind Wednesday’s carnage” and “Perhaps the murderers are bent on killing people not only for what they do, but for who they are“, this is at the centre of a lot of issues behind the objections against allowing Palestine into the UN and other places. I and many others have no hatred for Palestinians however, we will not accept Hamas to be allowed at any table for the terrorist organisation that they are. And so long as Palestine will not disavow Hamas and as long as Hamas calls the shots, there is no future for Palestine as I see it. This is at the heart of the matter, so when you think of these poor poor Palestinians, watch the uncensored shooting in Paris and now realise that this is what Israel faced for many years now, with added rockets and nail bombs!

The next part is actually at the centre to what we tend to feel and also how our civilised minds should be feeling. “For Muslims, that has meant spelling out that these killers speak only for themselves. Note the speed with which a delegation of 20 imams visited the Charlie Hebdo offices, branding the gunmen “criminals, barbarians, satans” and, crucially, “not Muslims”“, this makes sense in regards to the next part “Of course they should not have to do it. The finger-wagging demand that Muslims condemn acts of terror committed by jihadist cultists is odious: it tacitly assumes that Muslims support such horror unless they explicitly say otherwise“, this makes sense. Perhaps we all remember the atrocities of the Ku Klux Klan (KKK) and white power groups against African Americans. We distance ourselves as Christians, because their acts are not those of Christians at all. They are at the centre of some agenda of hate that the boggles the usual civilised mind. Some cannot grasp the small mindedness of it. Yes, we all hate at times and we hate enough to kill, maim or harm, but that comes in defence of a rational against us, or our family when it is harmed. To blatantly hate is not within our power (it should not be), I will go one further, children when they are born do not have the capacity to hate; it is the one dark side that gets taught to us, which makes it so inexplicable to some.

Now we get to the parts that I do not completely agree with (even though what is stated is not wrong) “Wednesday’s deaths brought a loud chorus insisting that Charlie Hebdo was vulnerable because it had been left out on a limb. That was down, they said, to the cowardice of the rest of the press, lacking the guts to do what the French magazine had done“. The press has been many things (cowardly to some extent as well), when the press (globally generically speaking) started to cater to advertisers and circulation, many papers started to cater to the emotional reader “Flight MH370 ‘suicide mission’” (The Daily Telegraph, March 2014) and “Death Cult CBD Attack” (The Daily Telegraph, December 2014). It is only one of several papers, the public gets misinformed too often, too much innuendo. “Andrew and the under-age ‘sex slave’” from The Daily Mail, implying the Duke of York is just the most recent of revenue claiming headlines. When you rely on income in this way, we see the newspapers as they no longer are, they are no longer informing the people, hopefully setting their minds to a more informed stable position, we are left with groups of people getting angry on implied innuendo. It makes for revenue (but becomes non-informative). So how about we make it a little more clear? How about tax offices change that glossy magazines are not tax deductible as they do not qualify as ‘researchable materials’? The ATO states “Newspapers and magazines, you can claim a deduction for that part of the cost of newspapers and magazines that relates to your using them in researching a topic as an employee journalist“. When we remove glossy magazines and add the Daily Telegraph and sort minded groups on that list, perhaps they will clean up their act?

So as non-violent Muslims fear repercussions for emotional responses, we in general have a duty to shield them, but in my mind we have an equal need to hunt down these extremists. We need to become a lot less tolerant of hate crimes like we are seeing in Paris this week, but they must be held against the real threat, not the threat that some papers perceive to instil. So this is where my view slightly differed from Jonathan Freedland. The French issue should wake us up in other ways too. Not only should we regard the hate attacks Israel has been under for a long time, we need to notice that walk softly and ‘try to reason’ will not work. The policeman had little option but to talk the man into not shooting him, it did not work! I feel for his family, and for the family of other victims, but you all need to wake up now, terrorists are real, they are not some deranged Sheik with delusions of grandeur wanting a ‘Shadada’ flag in a chocolate shop. They are people with guns, with a tactical mind that tells them to kill that what they hate without hesitation or remorse, so as you keep on crying on ‘your’ privacy, whilst posting your ‘nightly’ achievements on Facebook, remember that limiting those who hunt these extremists, might get you or someone you know killed at some point.

Yet Jonathan’s gem is at the very end “Theirs is a dirty little war, a handful of wicked fanatics against the rest of us. And they must lose“, I could not have said it better myself, but with that comprehension comes a change to all our minds, not to our hearts! Our hearts must never embrace the acts and the violence needed; our minds must however accept that some need to do what they do to stop these people, preferably before innocent lives are lost. It must happen everywhere and it needed to start yesterday. So, as you ponder these ‘lost souls’ as they go Jihad in Syria, then also quickly realise that these people come back with the skill, the intent and the reasoning of the extremists that you saw in the YouTube video, so if you are a parent and you wave your hand to your little boy or girl as they go to school, you should realise that they might leave the house the last time that day. What are you willing to do to keep them safe?

I am not trying to quell you into emotion like the press so often does; I need you to comprehend what must be done by professionals to keep you and your family safe. Think it through and cast your vote! You need not act, you are not trained and not qualified to suddenly emotionally react to these extremists. Only the calm mind will know what to do and they must be given the option to win and to make sure that extremists lose, or we lose it all!

Leave a comment

Filed under IT, Law, Military, Politics

Authentically Realistic

Whilst we see many sources talk about the need of blaming North Korea, we see an abundance of changes that are now not just changing the way we think, but these changes will also change the way we live and act. As we are soon to be lulled into more false sense of security, we must now content with the thought, what is real and what is not.

In IT these issues have existed on several layers for a long time, yet the overall lack of Common Cyber Sense has been absent for a massive amount of time. Bradley Edward Manning, now known as Chelsea Manning is only one of several parts of this puzzle. Wikileaks has added its own levels of damage and let us not forget the acts of Julian Assange and Edward Snowden. This is not on how things were done; it is about a lack of proper measures and controls. In the age of people screaming that they have a right to know, they will publish whatever they can for the need of ego and then scream on how the government is abusing their right to privacy.

These are all elements that link back to ‘Common Cyber Sense’.

CCS as I call it has in its foundations a few branches. The first is proper use and knowledge. Many still laugh and sneer at manuals and proper use of equipment, yet when other people started to ‘look’ through their webcams on laptops into their privacy, smiles disappeared quickly. We live in an age where everything is set around the fake image of comfort, it is fake because comfort at the expense of security is never comfort, it is just an added level of danger into your own life. At this point people forget that what is set into software, can usually be switched on and off at the leisure of a skilled ‘someone else’.

Buying what is cheap and what is right are worlds apart, that part is more and more a given fact. The bulk of people are lulled into ignoration when it comes to a simple easy tool that can be used everywhere, at which time they forget to ask ‘by everyone?’. Consider the HP laptop (one of many brands) has a build in webcam at the top of the screen, instead of relying on a software switch, these makers could have added a little slide that covers the lens, literally a low-tech solution making the lens see nothing, as far as I can tell, no one took that precaution for the safety and security of the consumer, is that not nice?

The second branch is access. If I got $.50 for every person that uses their name, ‘qwerty’ or ‘password’ or even ‘abc123’ for their login, I could buy a small Island like Hawaii or New Zealand, probably even both. Even though many websites and systems demand stronger passwords, there is always that bright person who uses the same password for every site. This is part of a larger problem, but let’s move on for now.

Third is the connection branch, places where we can ALWAYS connect! You think that not having passwords on your home Wi-Fi makes you safe? Wrong! You could add loads of problems on every device that connects to it by not properly setting things up. I wonder if those with an automotive router have considered the dangers of not setting it up properly and letting all the people they pass access to whatever is connected to it in the car.

The fourth branch is for the unknown. This might seem like a weird option, but consider how fast movable technology is growing, I am using ‘movable’ and not mobile, because this changing field includes phones, laptops, PDA’s, tablets and other not yet defined devices (like the apple watch, handheld game systems and consoles).

At the centre of all this is proper usage, but not just your hardware, it also includes your software, a fact many have remained oblivious to.

At this point, I will take a temporary sidestep and let you consider the following term ‘non-repudiation’.

Non-repudiation is about identity and authentication. Basically it states, ‘you and you alone‘ have sent this item (message, photo, financial transfer). In legal reasoning this will be the strong shift that will most likely hit many people in 2016 and onwards, it could hit you this year, but there are more than just a few issues with this situation for the immediate now. So when you lose your money and you state you were hacked, then you might soon have to prove it, which means that any evidence that you EVER gave your password or pin-code to a spouse, lover, boy/girl friend or sibling means that you nullified your rights. You get to pay for the consequences of THEIR acts at that point.

So when we see biometrics, we think fingerprint, we expect to be a lot safer. WRONG! Only last month did a group in Germany show how they recreated the finger print of the German Defence minister from simple digital photos, which means that this could have given them access to a whole collection of items, events and information they should not have gotten access to. So what to do? Well, that market is growing really fast. ‘Vein’ is the latest. It does not rely on fingerprint, but on the veins in a finger or hand, it is just as unique as a fingerprint, it is a 3d issue, making it even more secure and it requires an actual living hand. It also will lack the dangers of influence that a retinal scan has when a woman gets pregnant, or in case of a diabetes patient or alcohol levels. These all can shift retinal scans, with the added problem that this person stays outside the lock, becoming the valid person ‘no-more’. Yet, ‘Vein’ is still a new technology and not currently (or in the near future) available for movable devices, which gives us the issue on what devices are actually decently secure.

Let’s not forget, that even though this is not an immediate issue, the people will need to change their possible ‘lacking’ approach with more than just slow muffled interest, whilst they rely on the comfort of not having to comprehend the technology. That part is still not completely disregarded in several cases, the issue at Sony being likely the most visible one for some time to come. There is still a massive amount of actual intelligence missing. Most speculate, including me (yet I have been looking at these speculators and claimers of facts). Whilst Sony is visible, there are still unanswered issues regarding the NSA and how a place like that had the implied intrusion Edward Snowden claimed to have made.

Now let us take a step back to the four branches. I showed the webcam issue in the first branch, but the lack of consideration by the user is often a bigger problem. You see, many ‘lock’ their device, or just walk away and switch their screen off. Their computer remains connected and remains accessible to whoever is looking for a place to hack. I know that waiting 45 seconds is a bother at times, but learn to shut down your computer. A system that is switched off cannot get hacked, the same applies to your router (which actually has the added benefit of letting your adapter cool down, making the device last longer) and your overall electricity bill goes down too, all these benefits, all neglected for the fake comfort of accessing your social media the second you come home. Yet proper usage also includes software upgrades. Many do them, but more often than not, they tend to be made when the system reboots, when this is not done (or the software upgrades are not made) your system becomes increasingly at risk for intrusions of all kinds. Windows 7, which is a lot better than either Vista or Windows 8, still required 84 patches in 2014. With over half a dozen being either critical or important, you see why even in the best of times, under all conditions met, you still run some risk. And this is just Windows; in 2013 they had to fix 47 vulnerabilities regarding Outlook, explorer and the Windows kernel. There was a massive issue with remote execution, which means that your system was open to the outside without the need for a login (source: PCWorld). Now, to their defence, Windows and office are massive programs, but still, it seems that Microsoft (not just them) have taken a strong stride towards ‘comfort’ whilst ignoring ‘safety’ (to some extent).

Branch two is usually the biggest flaw. Even though many websites will require a decent level of strength (usage of small and capital letters, numbers and a special character), but that list is still way too small. The amount of people that I have met that use the lamest of simple words (like ‘abc123’) and these people cry the loudest when their money is gone. You see, it is easier to just hack your computer or device and use that system to order online via other means then it is to hack into your bank account. Yes, it is a bother (at times) to remember every password, yet in that regard you could be clever about it too. There is nothing stopping you from creating variations on a password whilst making sure it is a completely different one. I learned that someone had used her dictionary app to use a version of word of the day, she changed ‘adscititious’ into something like ‘Adsc1t!tious’. Good luck figuring that one out! (I had to look up the word in all honesty), the options become even more interesting if you speak additional languages. So, branch two is something that you the user largely control.

Branch three is actually the growing danger. It is not just when we connect, but when things connect automatically that becomes an issue (and where from). Insurance companies are more and more about your visibility, even though no official moves have been made, the day that junior uploads that catch of the day to his Facebook with dad in the background. That is the option for the members from the ‘institute of discrete entry and removal operations’ to help you with your old stuff (the missing items when you get home). The information you ‘give’ when you connect (especially on free Wi-Fi places), you see, when you connect to free Wi-Fi, more than one danger exists that others can connect to you, yes, you could learn that free Wi-Fi was the most expensive part of your vacation soon thereafter. It however moves more and more to your area of usage. As we get more connections and as we can connect from more places (like the automotive router), we will receive additional responsibilities in setting devices up properly for our safety and the safety of our children.

Now, to take a second sidestep. This is not about scaring you (a nice benefit for sure), some of these things can be prevented from point zero. Knowing what you switch off, switching off when not used are first easy and elemental steps. You see, a hacker looks for a place to get into, when your computer and router are switched off, the hacker will not spot these devices at all and move on. Hackers do not like to waste time, so when you use proper passwords, that same hacker will lose a lot of time getting access to your devices, time he could be having ‘fun’, so these two elements are already diminishing the chance of you getting transgressed upon. But in the end, there is another side. Makers of hardware and software need to become increasingly aware that their ‘toys’ have malicious usage. It was Geek.com that had the article ‘Yes, Xbox One Kinect can see you through your clothes‘ (at http://www.geek.com/games/yes-xbox-one-kinect-can-see-you-through-your-clothes-1576752/), which gives an interesting demo (without showing off anything indecent) how defined and articulate the scan system worked and it is a hackable solution, even there we see the mention that a lens cover would not have been a bad idea.

Yet we have digressed away from the heart of the matter. All these are linked, but the crown in the hardware is an increasing need for non-repudiation, showing that you and only you acted. A lack of this evidence could also go a long way in proving that you were innocent and that you were the victim. It is easy to claim that the makers are at fault and to some degree they are, but there is a growing need to have the right solution, and so far having any clean solution remains absent, whomever comes up with that could own the cornerstone of the global technology sector, an area that represents a massive amount of long term revenue.

 

Leave a comment

Filed under IT, Law

Slander versus Speculation

There is a lot wrong in this world, we cannot disagree with that. Soon we might see rental prices go down in London, because of Superman (the New Ecstasy), yay to those needing an apartment, being free of drugs was never so nicely rewarded! So is this speculation, or slander?

We could debate my sense in taste (many have for decades), yet in the firm juridical ground, when can speculation be regarded as slander?

That part is more and more a question when we consider the US sanctions against North Korea. Oh, and perhaps we forgot to mention that Sony Is a Japanese firm (even though the crime was on US soil), giving additional spotlights to the reasoning of certain actions. Consider the following sources. First let’s take the BBC (at http://www.bbc.com/news/world-us-canada-30661973). Here we see sanctions against organisations and individuals. First there is “Jang Song Chol: Named by the US Treasury as a Komid representative in Russia and a government official“, then there is “Kim Yong Chol: An official of the North Korean government, according to the US, and a Komid representative in Iran” and last there is “Ryu Jin and Kang Ryong: Komid officials and members of the North Korean government who are operating in Syria, according to the US“. Now the article ends with the most hilarious of all quotes “White House officials told reporters the move was in response to the Sony hack, but the targets of the sanctions were not directly involved“.

So the White House is within this part confessing to the breach where they are targeting innocent civilians (of that crime at least)? Can anyone explain to me how this is anything less than legalised slander? Consider that if (not when, but if) they ever figure out who exactly was responsible for the Sony hack (the actual individuals involved), how the US government could be held responsible in any court of law for this. Consider this part (source was the APA of all places, at http://www.apa.org/about/gr/issues/violence/hate-crimes-faq.pdf). “Current federal law defines hate crimes as any felony or crime of violence that manifests prejudice based on “race, colour, religion, or national origin” (18 U.S.C. §245). Hate crimes can be understood as criminal conduct motivated in whole or in part by a negative opinion or attitude toward a group of persons. Hate crimes involve a specific aspect of the victim’s identity (e.g., race)“. If we clinically look at the facts, then these acts are a hate crime against North Korea.

Now, let’s be fair as well. Most will not care, I reckon that the North Koreans might not even care, but this act does remain a legal transgression!

Let me show you why (because without reason, there is nothing), part one is found in yesterday’s news in the Guardian (at http://www.theguardian.com/technology/2015/jan/02/sony-hackers-may-still-access-computer-systems-the-interview).

Here we see the following parts:

  1. “Sony Entertainment is unable to confirm that hackers have been eradicated from its computer systems more than a month after the film studio was hit by a debilitating cyber-attack, a report says“

So not only has the hack occurred, it is very possible that the transgression and the damage is currently still ongoing, in addition, one of the most watched and scrutinised nations is still accessing Sony? Not one press agency is asking the questions that matter. For example, there was some visible Press Tour into North Korea (must have been around when Kim Jong-Un was elected big boss in 2011), when we saw some of the filmed events there, we saw North Korean officials in total disbelieve that a smartphone could take photographs and these people walked over Sony’s cyber security?

Now we get to the Chief Executive of Sony himself, his quote gets us the following:

  1. ““It took me 24 or 36 hours to fully understand that this was not something we were going to be able to recover from in the next week or two,” Lynton told the Wall Street Journal“

So this was not a mere grab for data, this is a system paralyses of sizeable renown, the hack was so complete, high paid executives could not get their minds around the events. So, are we still looking at North Korea? Basically this requires an evolved form of ‘stuxnet’, the hack was seemingly more complete then the stuxnet virus could achieve. We now have only three players left. Russia, China and whatever hacking organisation walks around within the US and its allied nations. How is North Korea anything else but a mere puppet for slander? Whilst some people are possibly hiding their lack of skills, and likely other people linked to all this are trying to cover up issues that have been ignored ever since the first hack of 2011 (the Sony PSN hack). By the way, I am using stuxnet as a comparison, I have zero knowledge how the transgressions was done, but we can all agree it was way beyond a normal level of sophistication.

Yes there is another scenario and I will get to that soon, North Korea is not off the hook yet!

You see we have been looking at the event, but not at the capital involvement that is two tiered at present.

  1. “Sony’s network is expected to be fully operational within the next two months but hackers have so far released only a tiny fraction of the 100 terabytes of data they claim to have stolen“, so not only will it take months to repair security measures, the fact that the new fences are there are still no guarantee that the data remains safe.

When gets us to the first tier. Data! Someone streamed 100 Tb, which is more than just a number; it would require every PlayStation 3 on the planet to download up to 2Mb. The fact that this is not monitored, or that is got through to this extent, is a first view that this was no mere trifle event. And even though 100,000 Gigabytes seems small when compared to the PSN issues, it becomes interesting when we consider that the PSN had been hit more than once, but as those members did not all download, where did all this data get syphoned to?

Now we get to the one part that might be regarded as tier two. You see, it is not just the amount taken, which takes a good server park to store, it goes back to issues I discussed in regards to piracy and the parts I mentioned in my blog ‘For our spies only!‘ on September 26th 2014. There I stated “in the end this is NOT about copyright, this is about bandwidth“, the big players all knew it and they were all very concerned if such events would start to get measured and logged. Now someone casually walked away with 100,000 gigabytes of data?

Before I restate, it was not North Korea, let us take a look at another article by the Guardian in that regard. The title is ‘North Korea may have hired outside hackers for Sony attack, says US‘ (at http://www.theguardian.com/world/2014/dec/30/north-korea-hackers-sony-pictures-cyber-attack) and it was written on December 30th. Now we must consider the following: “US investigators believe that North Korea most likely hired hackers from outside the country to help with last month’s cyber-attack against Sony Pictures, an official close to the investigation has said“. The operative word is ‘believe‘, they just do not know. As a speculation that would be my guess as North Korea does not have the skill needed for this, not even close. By the way, those hackers might want to get paid, how will North Korea do that, or perhaps that is beyond US oversight too, because it would be a sizeable amount for something this complete.

The next part is the part that opens the discussion ““The FBI has concluded the government of North Korea is responsible for the theft and destruction of data on the network of Sony Pictures Entertainment,” it said in a statement“. The first question: What evidence?  As stated before, North Korea is lacking in many ways, the fact that they hacked past Sony to this extent, whilst at present no guarantee can be given that the systems are secure at all, whilst North Korea has been watched 24:7 for a long time now gives rise to the demand of evidence showing the guilt of North Korea. So, they are seemingly better than the cyber divisions of both Russia and China? I am not buying it, in addition, the fact that the article implies that outside help was engaged for a hack this thorough leaves us with two thoughts.

  1. If true, where is the real balance of power in cyberspace, because this now implies that North Korea is a real player, even though no one (including people a lot more intelligent than me) have concurred that North Korea does not count when it comes to the internet and cyberspace.
  2. If false, what incompetence is the US hiding from us all and is that not the true crime?

Consider this quote (from the Guardian article too): “Some private security experts have begun to question whether Pyongyang was behind the Sony cyber-attack at all. The consulting firm Taia Global said the results of a linguistic analysis of communications from the suspected hackers suggested they were more likely to come from Russia than North Korea. The cyber security firm Norse said it suspected a Sony insider might have helped launch the attack”

I cannot disagree with Taia Global, as this could be Russia hitting back at US sanctions, but that would be speculation on my side, I also very much agree with Norse. Consider that if someone walks into a bank vault and it is empty. There was no sign of break in, the doors were not forced. At this point the police and the FBI will initially look at ‘the insider’ plot. It makes perfect sense. To get past the Sony server parks to this degree someone was giving aid in some way. Initial passwords, the network structure, because if that was not the case there would be a lot more logging evidence to giver clear view whether North Korea was guilty (or not involved).

Mark Rasch hits the nail on the head with this quote ““I think the government acted prematurely in announcing unequivocally that it was North Korea before the investigation was complete,” said Mark Rasch, a former federal cybercrime prosecutor. “There are many theories about who did it and how they did it. The government has to be pursuing all of them.”” there is the crux, the mention of theries on who did it. Even if it is outside help, Russia would still make more sense, the Russian Mafia could be the front for cashing in on selling the data, they pay commission to the people ‘hurt’ through US sanctions, they are looking at the least likely suspect because of a comedy, one that I (and many others) had not even heard of before these events.

It is the last quote that is food for thought from Kevin Mandia of Mandiant “Mandia, who has supervised investigations into some of the world’s biggest cyber-attacks, said the Sony case was unprecedented. “Nobody expected when somebody breaks in to absolutely destroy all your data, or try to anyway, and that’s just something that no one else has seen,” he said”

That part is not entirely true, I remember the DBase virus of 1988, I remember some people who had fallen victim to them, a garble parser that does not show until the virus is removed, it leaves your data garbled from that point forward. There was also a data virus in the 80’s. I forgot the specifics, but whilst most viruses would attack ‘.com’ and ‘.exe’ files, this one would attack data files, until that day a truly scary moment. So, it is not entirely unprecedented. Consider, if you copy someone’s data, the best sale is to sell it to the competitors, yet, what happens if the owner no longer has that data, does that not drive up the price? Yet, it is bad tactics, to copy in secret and resell it all makes perfect sense, the fact that these events happened, whilst Sony IT, the Cyber divisions of the FBI and others are not able to track the events is something very novel. It is a first to this degree, do you now understand why it makes no sense to accuse the one nation where we see this as their highlight: “Aug 6, 2013 – North Koreans hungry for tech skills are buying up used desktops on the black market, these desktops smuggled in from China have become a much sought-after item in North Korea“, this is the nation that thwarted one of the biggest cyber power players?

People please wake up. The question becomes what was real? I call my version insightful speculation. I have been involved in IT since the 80’s, this level of hacking requires serious system skills with in depth knowledge of all layer one components (hardware layer), if we ignore the inside job part, this takes North Korea out of the loop, it also removes a massive amount of hackers of the table too. It requires the skills we would require to see from people at the NSA and other high tiered cyber firms. From these facts I come to three options:

  1. The hackers are a new level of hacker with the ability to get past the security of nearly any large firm and government data system.
  2. Sony has been criminally negligent and the US is willing to ‘aid’ this Japanese firm for a price.
  3. A simple inside job (possibly even a disgruntled employee) with links to organised crime.

Please feel free to give me a valid fourth alternative.

 

1 Comment

Filed under Finance, IT, Law, Media, Military, Politics

Last Clooney of the year

My idea of stopping my writing until the new year has truly been bombarded into a sense of that what is not meant to be, so back to the keyboard I go. One reason is the article ‘‘Nobody stood up’: George Clooney attacks media and Hollywood over Sony hack fallout’ (at http://www.theguardian.com/film/2014/dec/19/george-clooney-sony-pictures-hack-the-interview), which I missed until this morning. So has the actor from ER become this outspoken because of his marriage to Human rights lawyer Amal Alamuddin? Nah! That would be incorrect, he has been the champion of major causes for a long time, outspoken, thinking through and definitely a clever cookie with a passion for Nespresso!

The article kicks off with a massive strike towards to goal of any opponent “George Clooney has spoken of his frustrations with the press and his Hollywood peers at failing to contain the scandal around The Interview, which Sony has pulled from cinema release as well as home-video formats“. It goes a lot deeper then he spoke it does, perhaps he fathomed the same issues I have had for some time now, some mentioned in my previous blog ‘When movies fall short‘ (at https://lawlordtobe.com/2014/12/15/when-movies-fall-short/), two weeks ago.

I will take it one-step further, several players (not just Sony) have been skating at the edge of competence for some time now, as I see it, they preferred contribution (revenue minus costs) regarding issues of security. It remains debatable whether this was intentional or just plain short-sightedness, that call requires levels of evidence I have no access to.

By the way, Mr. Clooney, you do realise that this topic has the making of an excellent movie, not unlike the largely unnoticed gem ‘Margin Call‘ with Kevin Spacey, Paul Bettany and Zachary Quinto.

The one quote I object to (to some extent) is “With just a little bit of work, you could have found out that it wasn’t just probably North Korea; it was North Korea … It’s a serious moment in time that needs to be addressed seriously, as opposed to frivolously”. You see, the inside job is a much more likely part. Yes, perhaps it was North Korea (requiring evidence), yet this would still not be the success they proclaim it to be without the inside information from disgruntled (or greedy) employees. In addition to the faltering security Sony has needed to ‘apologise’ for twice now (the Sony PSN hack of 2011), none of which was correctly covered by the press regarding this instance either. There was the press gap of November 2013, so we have at least two events where the press catered with silence, but at the price (read: reward) of….?

Yet the part: “He joins others who voiced their dismay at Sony’s decision, including Stephen King, Judd Apatow and Aaron Sorkin. Rob Lowe, who has a small role in The Interview, compared Sony to British prime minister Neville Chamberlain and his capitulation to Nazi Germany before the second world war“, is more than just a simple truth, it shows a fear of venue, cater to the profit. Chamberlain was from the old era and he failed to perceive the evil that Adolf Hitler always was. That view was partially shown by Maggie Smith in ‘Tea with Mussolini‘ too, yet the opposite was strongly shown in Remains of the Day, when Christopher Reeve as Jack Lewis states: “You are, all of you, amateurs. And international affairs should never be run by gentlemen amateurs. Do you have any idea of what sort of place the world is becoming all around you? The days when you could just act out of your noble instincts, are over. Europe has become the arena of realpolitik, the politics of reality. If you like: real politics. What you need is not gentlemen politicians, but real ones. You need professionals to run your affairs, or you’re headed for disaster!”

This hits the Sony issue straight on the head. Not that the Gigabytes of data are gone, but that they got access to this data at all. IT requires a new level of professionals and innovator, a lesson that is yet to be learned by those having collected Exabyte’s of data. It is a currency that is up for the taking with the current wave of executives that seem to lack comprehension of this currency. Almost like the 75-year-old banker who is introduced to a bitcoin, wondering where the gold equivalent is kept. The new order will be about IP, Data and keeping both safe. So, it is very much like the old Chamberlain and Hitler equation, we can see Chamberlain, but we cannot identify the new Hitler because he/she is a virtual presentation of an identity somewhere else. Likely, a person in multiple locations, a new concept not yet defined in Criminal Law either, so these people will get away with it for some time to come.

Yet the final part also has bearing “Clooney was one of the Hollywood stars embarrassed by emails being leaked as part of the hack. Conversations between him and Sony executives showed his anxiety over the middling reception for his film The Monuments Men, with Clooney writing: “I fear I’ve let you all down. Not my intention. I apologize. I’ve just lost touch … Who knew? Sorry. I won’t do it again.”“, personally he had no reason to be embarrassed, when your boss spills the beans (unable to prevent security), do you blame the man or the system that is this flawed?

Why has it bearing? Simple, he shows to be a man who fights and sometimes fails. He states to do better, just as any real sincere person would be, a real man! By the way, since 2011 Sony still has to show such levels of improvement. A lacking view from the people George Clooney served in a project, so we should not ignore the need to look at those behind the screens and the press should take a real hard look at what they report and on where their sources are, that same press that has not scrutinised its sources for some time. When was the last time we asked the press to vouch for ‘sources told us‘?

Consider the quote “We cannot be told we can’t see something by Kim Jong-un, of all fucking people … we have allowed North Korea to dictate content, and that is just insane“. As I mentioned in the previous blog, with the bulk of the intelligence community keeping their eyes on North Korea, why is there no clear evidence that North Korea did this? Not just the US both United Kingdom and France have access to an impressive digital arsenal, none have revealed any evidence. Consider that the École polytechnique under supervision of French defence is rumoured to be as savvy as GCHQ, can anyone explain how those three cannot see clearly how North Korea did this? So, either, North Korea is innocent and just surfing the waves of visibility, or the quote by George Clooney in the Guardian “the world just changed on your watch, and you weren’t even paying attention” would be incorrect. The quote would be “the world just changed on your watch, and those in charge do not comprehend the change“. In my view of Occam’s razor, the insider part is much more apt, the other option is just way to scary, especially as the IT field is one field where North Korea should be lacking on several fronts.

I will let you decide, have a wonderful New Year’s eve!

Leave a comment

Filed under Finance, IT, Law, Media, Military, Politics

When movies fall short

There is nothing as intensely satisfying as when we are confronted with a reality that is a lot more entertaining than a movie would be. Those are moments you live for, that is unless you are a part of Sony and it is your system getting hacked. Life tends to suck just a little at that point.

This is not the latest story to look at, but in light of the elements that have been visibly resolved, it is the best one around. Some will state that the Hostage story in Martin’s Place, Sydney is the big issue, but that is an event that is getting milked for every second possible by the media, I checked! The price of chocolate remains unaffected, so let’s move on to Sony!

The first part is seen in the article ‘Sony hack would have challenged government defences – FBI’ (at http://www.theguardian.com/technology/2014/dec/12/sony-hack-government-defences-fbi), those who think it is new news seem to have forgotten the issues people had in May 2011 (at http://uk.playstation.com/psn/news/articles/detail/item369506/PSN-Qriocity-Service-Update/). “As the result of a criminal cyber-attack on the company’s data centre located in San Diego, California, USA, SNEI shut down the PlayStation Network and Qriocity services on 20 April 2011, in order for the company to undergo an investigation and make enhancements to the overall security of the network infrastructure” 77 million accounts were compromised and the perpetrators got away with a truckload of data.

So when we see the quote “The cyber-attack that crippled Sony Pictures, led to theft of confidential data and leak of movies on the internet would have challenged almost any cyber security measures, the US Federal Bureau of Investigation (FBI) has said“, we should consider the expression once bitten twice shy and not, when bitten use antiseptic, go into denial and let it be done to your network again.

The fact that this revolves around another branch of Sony is just ludicrous, it’s like listening to a prostitute stating that the sick man used the other entrance this time, so we need not worry! If you think that this is an over the top graphical expression, consider that twice in a row that the personal details of millions in the form of data ‘leaked’ to somewhere.

The second quote will not make you feel any safer ““In speaking with Sony and separately, the Mandiant security provider, the malware that was used would have slipped or probably got past 90% of internet defences that are out there today in private industry and [would have] challenged even state government,” Joseph Demarest, assistant director of the FBI’s cyber division told a US Senate hearing“, as we know that governments tend to be sloppy with their technology as they do not have the budgets the bulk of commercial enterprises get, we can look at the quote and regard the statement to be a less serious expression of ‘do we care’, which is nothing compared to the ignored need to keep personal data safe.

You see, commercial enterprises have gotten sloppy. getting newly graduates to look into a system where you need seasoned veterans and you need a knowledge base and a good setup, all factors that seem to be in ‘denial’ with a truckload of companies the size of Sony, as they are all cutting corners so that they can project revenue and contributions in line with the ‘market expectations’.

The quote that becomes interesting is “A link between Gop and North Korea has been muted over Pyongyang’s reaction to the Sony Pictures film The Interview, which depicts an assassination attempt on Kim Jong-un“, so is this group calling itself Guardians of Peace (Gop), the ‘simpleton’ group they are trivialised to be, or is there more. You see, we see a growing abundance of data collections that seem to go nowhere, but is this truly the case? You see, data is money, it is a currency that can be re-used several times, the question becomes, finding someone willing to buy it. If we regard the 2 billion Microsoft paid for Minecraft to be more than just the IP of the sandbox game, then what is it? Which part of that 2 billion is seen as value for the 120 million registered users on PC? Do you now see the currency we are confronted with?

In my book the Sony exercise is a display of the expression ‘a fool and his money are soon parted‘. In light of the 2011 issue, the fact that security was increased to the extent that it could be done again makes for entertainment on a new level, in addition, like a bad infomercial it does not stop here, no! For $9.95 you get so much more then you see now. That we see in the article that was published two days before that (at http://www.theguardian.com/technology/2014/dec/10/fbi-doubts-north-korea-link-sony-pictures-hack). The part that should make you howl like a hyena is seen here “The security firm hired by Sony to investigate the attack, FireEye, described the attack as an “unparalleled and well-planned crime, carried out by an organised group, for which neither SPE nor other companies could have been fully prepared” in a leaked report“, So did you notice ‘unparalleled and well-planned crime‘ and ‘leaked report‘, oh sarcasm, thy name be Miss Snigger Cackle!

The leaked report, which was from the 7th of December (at http://recode.net/2014/12/07/sony-describes-hack-attack-as-unprecedented/) gives us “demanding that organizations which have obtained the leaked information avoid publishing any more material from the hackers, and destroy existing copies. Boies called it “stolen information.”“, you see, the issue here is that if we consider the quote “This attack is unprecedented in nature. The malware was undetectable by industry standard antivirus software and was damaging and unique enough to cause the FBI to release a flash alert to warn other organizations of this critical threat“, so even after the malware, info was still going past the firewall, or was this just ‘leaked’ by an internal source? It takes a little twist when we look at the quote in the December 10th article “The malware had been signed and authorised by Sony Pictures, allowing it to bypass certain security checks“, in my mind this reads as follows: ‘Some idiot gave a pass to malware to roam free on the system‘, so is it that, or was this an internal operation all along? If the second part is true, then who was the beneficiary of all that private data? Who is it means for? You see, many forget that our information is not always for stealing from our credit cards, sometimes it is used to profile us, as a customer, as marketing or as leverage. Why the word leverage? Consider healthcare, consider usage, what happens when an insurance company gets to profile 20 million couch potatoes, what if your healthcare premium suddenly goes up by 15%, do you have any idea how much money that is? So as insurance companies keep the leveraged margins of charge, whilst overcharging risks in addition, we see a growing margin of profit for these insurance companies, whilst getting them to pay for what you are insured for has not gotten any easier has it?

So is this simply a cinematography from Sony Pictures film, called The Interview, which depicts an assassination attempt on Kim Jong-un, or was that the smoke screen? The FBI seems to have ruled out North Korea, as far as I have been able to tell, the only fans of North Korea are the North Koreans and Dennis Rodman (who has no fame in any IT endeavour), so is there enough doubt regarding the reality of what happened and why it happened? Yes, as I see it there is, the question becomes, when there is this much smoke, where are we not looking? That part is to some extent seen in another Guardian Article (at http://www.theguardian.com/film/2014/dec/12/hackers-attack-film-studios-sony-pictures-leak-cybersecurity-warning). We see this quote “Sean Sullivan, senior adviser and researcher at the security company F-Secure, said that he believes the purpose of the Sony hack was extortion. “If it was just hacktivists, they’d have released everything all at once,” he said. “But these releases, it’s like they’re shooting hostages. One thing one day, another the next. This is a really different tactic from what we usually see.”“, this is certainly plausible, but is that it? Why ransom of data and sell it back with the FBI and others on your tail, when you can sell it in Hong Kong, Bangkok, Riyadh and a host of other locations. A simple transaction for an external encrypted drive, a deal you can offer to ALL parties for amount X, the more you offer, the higher X is.

Whilst our data is sold on and on, we run additional risks of getting invoiced for our lives choices and extorted by other financial firms because our privacy is no longer a given in the age of data and it is directly linked to corporations that cannot clean up their act. In the mean time we see leaked report on impossible hack successes, whilst it took only one executive to ‘accidently’ sign and authorise a mere trinket of malware.

So yes, the movies are falling short; reality can be scary and entertaining all at the same time. The question becomes, will there be a change to our invoice of life because of corporate considerations, or lack there off?

 

1 Comment

Filed under Finance, IT, Law, Media, Science

Where we disagree

There is another article in the Guardian; it was published almost 12 hours ago (at http://www.theguardian.com/business/2014/dec/14/deficit-problem-crisis-productivity-george-osborne). It is a good story, it gives a decent view, but I feel that I cannot agree. It must be said that this is all in the eyes of the beholder. The article is good and sound and many will adhere to this idea. Yet, I do not completely agree. Yes, all the facts are right, the view is not incorrect, but it feels incomplete. The first quote “The most important issue is the poor performance of the nation’s productivity, which, far from being improved, has almost certainly been exacerbated by the constant emphasis on the putative need for austerity”, now this is a decent view to have, it is an optional view, yet in my view the following com up:

  1. Productivity relies on orders; the UK is competing with its baby brother India where daily labour rates are decently below the hourly rate of a UK worker. That in itself is not enough, the EEC overall is pretty broke, no less than one in 10 has no job, it is driven up by Spain and Greece, yet after a long term most Europeans are very careful about where money is spend on. So which manufacturing industry is getting the few coins that do get spend?
  2. There is no reputed need to austerity; there is an overspending in excess of 1 trillion that needs to be addressed. We can bark high and low on the reasoning for it, but that water passed the bridge a long time ago, now the debt needs to be taken care of. The US, Japan and UK have a combined debt of 30 trillion of national debt, the UK is a little over 3% of all this, let’s make sure that when the two behemoths stumble into nothingness, the UK does not end up being the biggest debt of all (again just my view), yet I feel certain that the banks will be in charge of a nation with such debts.

Yes, productivity will take care of all it, but I believe that the debt needs more then productivity. It needs innovation and IP. They will drive true productivity. People forget about the innovators. Alan Turing is still regarded as the man behind the concept of Artificial intelligence. What was a fab in the 40’s became the driving power for the planet from the 90’s onward; let’s not forget the foundations for the computer. We seem to herald IBM and others, yet Professor Sir F.C. Williams was at the foundation of the driving force that became the behemoth for almost half a century and this wave is still going strong.

The new currency will be IP; innovation will drive the places of work, the places of sales and the filling of coffers (the empty bags currently in a corner of George Osborne’s office).

People keep on ignoring the need for innovation; I tried it twice in a previous job. The response remained almost the same ‘it works as it is, so leave it‘, that is the drive stopper that ends a future, although the early 1900’s did not have the need for IP, consider the history of the paperclip and Gem Manufacturing Ltd, a British company. They had the better design, but never registered the patent, which is why Johan Vaaler is often seen as the inventor. I am not debating the validity, yet he registered his patent. In those days the rights were approached a lot more liberal then now. Nowadays our lives are all about IP, patents and who it is registered to. Haven’t we learned anything in 115 years? No matter that we now enjoy an article that is not patented, in nice contrast to people who enjoy a life because the man behind finding a cure (read vaccine) for polio did intentionally decide not to patent it (Dr Jonas Salk, who deserves a sainthood for that act), our future for certain, our survival to some exaggerated extent is depending on IP. Need drives production, but who owns the article that is needed? That part I see ignored again and again.

William Keegan does not look at the IP side, because he focuses on the steps following it, yet those in this real rat race seems to silence the need to look at it as they talk about productivity and manufacturing, but the innovator behind it, the one designing the IP, that person is worth gold. Consider Microsoft paying 2 billion for a piece of IP called Minecraft. A simple game, looking the way Minecraft does, is worth the revenue the high end looking GTA-5 made. It is all about IP in gaming; it should be the same in nearly any industry, not just the one that got kicked off by Alan Turing and Professor Sir F.C. Williams. IP drives every computer industry, it became the centre piece in the jewel that is now called ‘Business Intelligence‘ and ‘Predictive Analytics‘, but we broke the system after that.

Why was the system broken?

It is a broken system that is now illuminated in its flaws by people like Sir Kenneth Robinson and Brian Blessed. We ignored for too long that IP and innovation requires creativity. As Universities have been pushing logic and business, they forgot that the future tends to be created in the arts. Creativity is the driving force for any future, whatever is produced after this required a need for IP. It is a chicken and the egg issue, will the thought create the idea or is the idea the drive for creation? As I see it, this drive needs an artistic side, a side I was never any good in, but the best futures will need an artistic hand. It is shown into the massive amounts of IP the gaming industry manages. People might wonder why I keep on coming back to the gaming industry.

The answer is simple Games have driven a trillion dollar industry (totalled). Commodore Business Machines (C-64, Amiga) Atari (2600,800, ST), Creative Labs (soundcard), The consoles that followed by Nintendo, Sony, SEGA and Microsoft and the list goes on and on, all from creativity. Even the military sees the essential need of creativity. Consider the text “Space-based Missile Defense: Advancing Creativity“, it is at the heart of everything, so many forgot about that, those in charge forgot about that part. It is why my vote for Cambridge chancellor would not have been for Lord Sainsbury of Turville, but for Brian Blessed. Lord Sainsbury is not a wrong person, or a bad choice. As I see it, all our futures require a much stronger drive towards the arts and creativity. In my crazy creative view photography was invented in 1642 by a Dutchman named Rembrandt van Rijn; his visionary view came 200 years before the chemicals were invented, if you want evidence? It is in the Rijksmuseum and they call it ‘the Nightwatch’.

 

Leave a comment

Filed under Finance, Gaming, IT, Science

Not just telling you so!

This article took a little time. There is so much not happening, it is almost scary. Yet, I found a few issues that gave way to the following topics from both the past and the upcoming present.

The Dutch Economy will recover slower according to the IMF (at http://nos.nl/artikel/2007483-imf-langzamer-herstel-economie-nederland.html). Here we see the following statement in regards to this: “Het IMF dacht in oktober nog dat de Nederlandse economie volgend jaar met 1,4 procent zou groeien, dat is nu iets naar beneden bijgesteld op 1,2 procent. Dit jaar wordt een groei verwacht van 0,8 procent. Dat is overigens iets meer dan de 0,6 procent die het IMF een jaar geleden verwachtte“. “Translated: The IMF expected the Dutch economy to grow next year with 1.4%, which is downgraded to 1.2%, this year the economy will grow with 0.8%, which is slightly better than the 0.6% expected a year ago“.

Yet, when we look at my blog dated May 15th 2013 ‘A noun of non-profit‘ (at https://lawlordtobe.com/2013/05/15/a-noun-of-non-profit/), we see the following: “The Dutch NOS reported the prediction that even though the Dutch economy will shrink another 0.5%, they do predict a growth of 1.1% next year, so basically, they expected the economy to grow 1.1%“, so that story about “this year the economy will grow with 0.8%, which is slightly better than the 0.6% expected a year ago“, seems to be retroactive rhetorical whimsy (a sort of economic BS using numbers, as I see it). When we see the predictions on how they were ‘so close’, it is in its most colourful form an example about a guy having unprotected sex and then cry out ‘but I almost did not get her pregnant!’, yes, pragmatically speaking he failed by a mere six inches (you the reader can connect the dots, can’t you?).

You see, this is not whether I am right or wrong (it is a nice side effect), I am postulating the issues of managing Bad News. We see this happen all over the world, even in the more respectable places like the Netherlands and the United Kingdom. There are cogs in the system, but between these cogs is one extra cog that is slightly variable in size. You see, if the cogs are consistent as a watch, then they are always at one speed. Yet economies do not run like that, so the spring that drives it is not consistent in strength and resilience, as such the cogs would be a little variable in displaying the economy, now here is the magic cog, it is placed between two cogs so that it can shrink or expand, so as the economy slows down, then so does that cog, which means it rotates faster and commercial times will move through with the same consistency, we do not get to notice the slowing. Yet, this approach is virtual, it is nice on paper, but in reality, the money is not coming in, so the people have to make due with less, but the economy shows growth, no matter how much we cannot afford food and the items for our creatures comfort.

I think that the IMF is aware of this to some extent. Euro nations have been optimising their presentations in a few ways. Mind you, then are not cooking the books, but at times as the situation is generic, there are all kinds of posts that could be included or excluded, the difference is billions allowing for an upgrade or downgrade by one or two tenths of a percentage point. That is at the heart of it, now we see this for almost a dozen nations and the colourful loom that is called the EEC economy is now a lot less white and its product shows a fabric in all the colours of the rainbow, which is what we face now. We get incorrect presentation which will require a lot more adjusting. Doubt me? Then consider the two quotes that I showed earlier from the IMF. In an economy of 770 billion (previous Dutch GDP), the offset comes down to 3.85 billion, that covers a lot of bills. Now that you see this, consider how inaccurate some need to be to base a budget on something that is off by almost 4 billion, which is 50% of the entire budget for defence. How can this not have been ‘predicted’ better? Well, here is the crux, prediction are never accurate (and 4 billion out of 770 billion is a mere drop), yet in the end, governments all over the world will always portray them to be in a better position, then downgrade that view, yet with billions at risk, that approach seems short-sighted to me. It is almost a forced attempt to spend where there is no money, which is how we all got to be in this predicament to begin with.

To illustrate it, I will grasp to the article and link of a story done by Greg Jericho, who does an excellent job of it. It is called ‘Why isn’t the government being held to account on the China free trade deal?‘ (at http://www.theguardian.com/business/grogonomics/2014/nov/20/why-isnt-the-government-being-held-to-account-on-the-china-free-trade-deal). I do not completely agree with his assessments, but overall the picture that is painted here is quite clear and not incorrect. The first quote in this regard it “The modelling, which was used in the feasibility study, estimates that had a free-trade agreement been signed in 2005 by 2015, our GDP would have been about $3bn more than it would have otherwise been. Is that much? Well it’s about 0.37% bigger. So no, it’s not much at all“. Yes, I have warned in previous articles how dangerous it is to compare statistics, what I had not mentioned at that time, which was not in play, is that changing the base of measurement is also a good way to ‘lie with statistics’, as the article points out. I had done an example in a class I have years ago on founding a hypothesis. In there I used a Dutch municipality data set. When I compared the two in one graph, it showed how the states that were adjacent to the river ‘the Maas’ had decreased in average population, in those years that river caused damage due to flooding in several towns. Yet, the municipalities are all over that state, so does it apply? How to prove it? That is an entirely different question.

Now, I have nothing against free trade, but when we consider the large corporations not paying tax at all due to artistic accounting, adding fuel to the fire to give these large firms even more options to avoid taxation is not a good thing. So that net revenue, how is that taxed, what is more important, once this agreement is in place, how long until Google, Apple and Amazon will change their parameters to include that setup to avoid paying more taxation. How does that help Australia or Australians in any way, shape or measure? When that graph changes, export slows down and imports of all measure go up, how will free trade benefit then? I am not stating that this will happen, I am just wondering what happens if it does.

The one statement by Greg I disagree with is the one at the end “A free-trade agreement is no more a guarantee of economic growth than not having one is“; I would state “A free-trade agreement gives a lot more danger to tax avoidance on several levels than not having one“. Google, Apple and several others proved that point for the last 4 years, at present there is little chance of seeing them pay any taxation for at least another three years, then there is the solar panel debacle, but the least said the better. The fact that there is a decent issue with well over 50% of the panels (out of 600-1000 manufacturers) should give an indication that this free trade agreement, does not necessarily mean that quality will improve, with free-trade in play, that list consisting of dozens upon dozens of articles will sharply rise. How to guarantee that quality? The article does not reflect on that (was not meant to do so), but that issue will be (better stated should be) on our minds too. There is however one side that we should consider. We forget how rich the Chinese culture is. I believe that China could become a serious player on the video games market. Some of these stories would translate into different genres of games on every console. I am not talking about South South East China (most people call it Taiwan), I am referring to Guangzhou, Shanghai and Beijing. One of the strongest cultures has not presented itself digitally in any strong way, which is a shame, because in the end, gamers care for good games, not where it was made.

Why the jump to games and gaming? Well, it is one of the markets I know a lot of. We might be on par with IT, engineering and other options, but gaming in China, original gaming in China is a relative unknown. We tend to look at Japan for that. Well, guess what, Nintendo has been rereleasing games for some time now (good games mind you), but they are slowly becoming an iteration of what was an original concept. It is not about the games (well, it is only to some extent), I believe that new innovation, new IP and new, truly mindboggling advances come from interaction. We need IP, advances and new opportunities, these come from fields we have not seen yet. If you doubt it, consider 1993, when a game named Doom entered into our lives. Most will not remember it, but it changed gaming in a massive way. I still believe that this game became the spark that would be the conception of what would become in 1998 the Unreal engine. That would change gaming forever, even today, 16 years later, many games are relying on the unreal engine, and some of the artwork created today through the Unreal engine is so amazingly sharp that it makes the result almost undistinguishable from reality. That is the foundation I believe we can see, another jolt in the advance of gaming. That is a development which will not just remain in gaming, as unreal developed, it developed a commercial need for 3D technologies and it even has military applications in more than one nation today. I believe that the multi-billion dollar games industry has the potential to drive a trillion dollar commercial need for innovation; we only need to find the right combination to make it work.

That’s just the opinion of one blogger, but I feel fairly certain it is a shared opinion.

Leave a comment

Filed under Finance, IT, Media, Military, Politics

Show me the money!

That is what I wanted to shout out loud today, not because of a scene between Tom Cruise and Cuba Gooding Jr, but because of the story written by Larry Elliot (the Guardian economics editor). He is not wrong, probably with his insights and degrees he is more right than anyone else so why am I all up in arms about it? You see, if he is right then there is something extremely wrong with this world. Here is the crux, either he is wrong, or the bulk of the planet has become demented. What will it be?

Why do I consider this to be my view?

The view evolves when we consider the following aspects of the British economy. First there is “The budget deficit will be almost £100bn this year and is rising. It was supposed to be below £40bn. If the current Treasury chief secretary, Danny Alexander, is foolish enough to leave a little note for his successor, he will only need to insert one word into the one penned by Byrne: still” and “Britain currently enjoys the sort of growth rate that Germany, France and Italy can only dream about. The economy should expand by 3% this year, making the UK the fastest growing G7 nation. Jobs are being created at a record rate, a development that explains why Britain is proving a magnet for migrants from the rest of the EU“, we have seen this. Yet, as immigration is not capped to the extent it should be, jobs go to the cheap Polish workers, whilst we see a massive +50 workforce unable to get jobs, which we get from the Guardian (at http://www.theguardian.com/society/2013/nov/13/unemployment-fall-masks-jobless-over-50s). “Bennett is one of more than 400,000 people over 50 in the UK who is registered as unemployed, according to the latest official jobs data released yesterday“, you see, the mature experienced workforce is deemed useless in many areas and as such, the economy will take two hits. The first one is that these people in the end still cost money, in the second that as companies rely on cheap labour; we see that they go three steps forward, two steps back; it is getting them nowhere fast and at great expense too. So as those people have an income, the companies are just scraping by, having therefor the dubious benefit of living at tax level zero. That keeps the Osborne coffers (also known as the UK treasury) pretty empty.

Let’s take a look at some events linked here “Former BBC director general Mark Thompson has said sorry for the £100m failure of the BBC’s Digital Media Initiative (DMI)“, “Siren police IT project’s £15m failure a ‘debacle’” and not to forget “Abandoned NHS IT system has cost £10bn so far“. There is a level of sheer incompetence that is beyond measure. Yet, I think it goes further than that, I think that as areas have cut back and scrapped from the bottom of the barrel, we see cogs of non-comprehension that just twirl having no connection to any other cogs. Companies, which are no longer structured in the old ways, but still presented as such, they are niches into rooms, where only the manager has access. Like the American cubicles, that only one person oversees, absent of checks and balances, whilst the people no longer talk to each other, no clear communication. That represents the new era of work. The 50+ population have seen why there are issues with the cubicle approach and the manager who needs to get the task short-sightedly done is barring 50+ from being hired, this results in a sliding slope of minimised success.

What do they have to do with one another?

Let’s get back to the writing of Larry Elliot at this point “It took until 2013, however, for the level of output to get back to its pre-recession level, the slowest recovery of the post-second world war era. Osborne thought the economy would cope with austerity better than it did. He underestimated the impact of higher VAT and cuts in spending on growth. The chancellor thought his tough deficit reduction plan would boost growth by generating more confidence in the private sector that the books were being balanced. He was wrong. The upshot was weaker growth, lower than expected tax revenues and higher than expected borrowing. Half way through the coalition’s term in office, Osborne abandoned the idea of sorting the deficit in one parliament, and reverted to a more modest plan akin to that drawn up by his predecessor, Alistair Darling”

The crux is “The upshot was weaker growth, lower than expected tax revenues and higher than expected borrowing“. I think that it is not entirely correct! Yes, Elliot writes the truth, but behind the curtains we see projects failing due to bad decision making (like the headlines mentioned earlier), in addition we see mergers of an unparalleled size “The chemist chain Boots is being sold to the American retail company Walgreens in a £10bn deal that is delivering a huge pay-day for its private equity owners“, which sounds nice, but how does that fill taxation coffers? It does not!

Corporate choices are made to avoid taxation like “U.S. Treasury Seen Loser in Tax-Avoiding Pfizer Move to U.K.” is at the heart of the second tier of failures. Not a failure by George Osborne, but a failure by their corporations that bleed nations dry, whilst not being held accountable, there the nations have failed themselves by not alter the proper legislations to avoid these acts of non-taxability. Whatever happens next will happen too late, the coffers are empty and those who walked away will do so in non-taxable luxury for the rest of their lives and the lives of the next 3 generations of their family to come.

The next part has a few issues (none of them are Larry Elliot) “The foundation notes that two-thirds of people who have moved from unemployment into work in the last year are paid below the living wage, the average self-employed person earns 13% less than they did five years ago and there are around 1.4m contracts not guaranteeing a minimum hours. Over half of them are in the lower-paying food, accommodation, retail and administrative sectors” Many of these lower paid jobs are all about areas where we see high rent, a massive drive to turn around orders and well above counted hours are needed. Life in London (as well as in Sydney) has become a life not unlike hyenas. These bosses are trying to stay afloat, which they do by hiring the weak, the cheap and the manipulative. One waitress mentioned this in a forum “Now I understand I am competing with people on the dole who can be near enough forced to work for free but it still sounds a bit shady“, the mention has bearing, as people are pushed more into unpaid extra hours, less rights, less options and less energy, we see a community that has devolved from symbiotic into parasitic, with only one winner in the end, the landlord!

Both the UK and Australia have been unwilling to deal with this entity, leaving the people at large to fend for themselves without any support.

The next part is a statement of fact, there is nothing against it in any way “If it is taking longer than expected to knock the budget deficit back into shape, the same can be said of Osborne’s other objective – to boost exports from a re-invigorated manufacturing sector so that Britain once again pays its way in the world”

How to go about it is at the heart of it and several options are open as they always are, but consider that out of a dozen avenues, one is a solution, three are deadly and the rest tend to have a costly non solving effect. Several parties in play, not Just George Osborne, but in that same view, Alistair Darling and Gordon Brown all had the same flaw (as I personally see it). Instead of finding a solution that is a mere band aid, they all failed to seek the solution which had the visionary idea to include the next generation. I had that idea on two instances; the one that matters here is the article ‘What’s in a health system?‘ on June 29th 2014, where I state “When people ask which company will do this, the answer should be ‘None!’. The UK is filled with universities, some of them regarded as the most prestigious and brightest on the planet. Consider that most IT people, might claim experience, yet their drama skills are the only ones that improved for the most, is it not up to the Universities, those who are introduced to the newest ideas, design a solution that would make the work of the doctors and nurses at the NHS better, slightly more efficient and a truckload of less hassle! Is that such a tall order?”

Like a regional solution for a independent Scottish IT environment, the visionary approach is to bring this to the universities, to develop a new system, not just a mere frame that goes on top of something else, but an actual new system, LINUX based option, a security enhanced LINUX for healthcare, one that is designed, not for 2016, or 2017, but for the next generation. Why not give the universities access to design their new future, not leave it to these current so called executives that waste up to 20 billion not delivering anything. That visionary approach is missing and it could be the death of us all (UK and Australia alike), we have so many similar issues, why not tackle them together, open up avenues that have never been considered. If you want visionary, then look at the Netherlands, they decided to change the bicycle lanes into solar panels, do you have ANY idea how many bicycle lanes the Netherlands has? It is actually a visible percentage of that nation’s surface. Now, they decided to give it a second function, which means generating electricity, without needing any space at all, illuminating the bicycle road through fluoresces, making it safer at night. They decided to attack road safety and energy issues all at the same time. That is the level of innovation we need to see, preferably without spending another 20 billion pounds. So how about changing, or better stated evolving universities and giving them a real hand in innovation and solving future problems we have ignored and left dead for granted (like the NHS).

The last part is seen here “Ed Balls, the shadow chancellor, said: “I am not that bothered about being behind on economic competence. In opposition, we are always behind on economic competence. Brown and Blair were at this point before the 1997 election. “I would rather we were further ahead in the polls but the Tories are leaving it a bit late for a feel-good surge. That’s why Cameron is talking about red lights flashing on the dashboard. Maybe he thinks he can scare people into voting Tory.””

I disagree, Ed Balls needs to get scared shitless real fast! George Osborne needs to do something similar! Economic competence is not something that is behind, the indicators are that they are close to non-existent. As numbers are hidden behind the statistics of ‘% of GDP‘ we are diluting ourselves that we have a handle on things, once the message is that the total debt has decreased below 750 billion, we have an actual message, but for now, that 25% decrease is nowhere in sight. Life in the UK is all about meeting the payment of the interest debt, whilst none are tackling any solution regarding the total debt for the future. That danger has been voiced by several players all over the field. The message now is that ‘Investors Underpricing Risk May Threaten Growth, IMF Says‘ (at http://www.bloomberg.com/news/2014-09-17/investors-underpricing-risk-may-threaten-growth-imf-says.html) as well as ‘Flug Flags Underpriced Risk as Investors Drop Corporates‘ (at http://www.bloomberg.com/news/2014-09-30/flug-flags-underpriced-risk-as-investors-drop-corporates.html), which gets a punch from today’s news ‘New York Hops on $15 Billion Israeli Corporate Bond Boom‘ (at http://www.bloomberg.com/news/2014-11-30/new-york-hops-on-15-billion-israeli-corporate-bond-boom.html). Like the housing in Hackney through Westbrook Partners and Round Hill Capital in the Netherlands, we see again a change in markets (like they always will), but this is different. Like Greece (again) last week with “A Greek official says the country is under pressure from rescue creditors to impose new austerity measures to resolve an ongoing budget disagreement worth a reported 2 billion euros ($2.5 billion)” (at http://www.cnbc.com/id/102222375), we see a market that keeps on getting pushed whilst there is no money left. By the way, those two players (Westbrook Partners and Round Hill Capital), did you consider combining these facts?

Have you considered when Westbrook goes market value and they merge with 2-3 other players (perhaps Round Hill Capital as one of them), when they merge, how much taxation will be missed out then, also, what danger will these tenants be placed in at that point?

So back to Greece and their dwellings, Greece should both be dissolved and offered to Turkey (just to make it sting a little more) or they need to clean up their act, including dealing with these massive strikes. Let’s not forget that Greeks themselves did this to Greece (partially through Goldman Sachs). We see cogs of greed interacting, finding new connections not to be held accountable, whilst its population gets the bill, blaming Germany for all of this. In that same light we see how we are now confronted with underpriced risks. So, not unlike the 2008 crash with all these “sub-prime” borrowers and bailing on 8 trillion, we now see governments trying to intervene by ‘forcing’ banks to make low cost loans to the underprivileged “sub-prime” borrowers, trying to create a fake boom, whilst at the same time, they have created a more likely than not risk that it will only explode in their faces, whilst imploding their economy (this is as I personally see it). Here in the end, we see that the bank wins no matter what, either the government pays them, or they just own it all. Like the landlords of London, it will destroy the quality of life for more and more people, whilst not showing any resolution in solving the actual problems.

This all comes together when we consider the IMF part on underpricing risk (mentioned earlier), there we see the part that is truly linked to all our woes: “Policy makers from the Group of 20 nations meet this week in Cairns, Australia, to discuss ways of boosting global demand. The Fed today maintained a commitment to keep interest rates near zero for a “considerable time.” At the same time, Fed officials raised their median estimate for their policy interest rate at the end of 2015 to 1.375 percent, compared with the 1.125 percent estimate made in June“. The crux: “ways of boosting global demand” it is at the heart of the failures we see. It is worse than bad marketing. The last thing we need to do is boost demand. We need to resolve debts. Yes, the US wants to see demands boosted, as it was one step away from bankruptcy 5 steps ago. They are trying to bluff into a new era of not being dead, whilst they have been unsuccessful in dealing with their debts, having no solution and even less options. We must find another way. If the Netherlands, one of the smallest nations in the world can turn around an age of innovation to their advantage in a novel way never seen before, then so can we! If you wonder how this linked, then consider how their solution can become a new era of energy independence all over South America, parts of America and all over Europe and Africa. Solar panelled roads, a patented solution that can change the face of the earth in one mere step. Once the high pressure solution is done for cars, we will see a new era of energy. Not bad for a place that is famous for wooden shoes and a leaky dike! So where are we in the Commonwealth? Where is our innovation?

In the end Larry Elliott spoke the facts, the truth and wrote an excellent article, I just disagree with the views they link to, in the end, it might be me who was wrong and it is all in the eye of the beholder!

In this age of debt, innovation and Intellectual Property are soon to become the only currency that will have any true value! The Commonwealth needs its own share of those, less it becomes as desperate as America currently is.

 

Leave a comment

Filed under Finance, IT, Law, Media, Politics, Science

Perception from the outside

It is hard to write about this. Not because of the topic, but because of the implications that derive from the thoughts I have. You see, I have thus far always had faith in the intelligence branch. When we look beyond the implied Hollywood drama of all matters, the intelligence branch is a dedicated underpaid group trying to keep its nation and its citizens safe. Yet, what lies beneath the veneer when we look deeper into certain matters. Are they for real or are we all played by the press to some extent?

This is at the foundation, as we cannot rely on any first-hand information, especially when the press is part of it, we are left with a question mark. One that might not need answering, but one that should not be ignored, this is at the core of me, for better or worse, I seek answers.

This all started yesterday when I got wind of a Guardian article at the earliest of dawn, as a final paper was due, I just left it to look at later (that later is now). The article is ‘Lee Rigby murder: internet firm could have picked up killer’s message – report‘ (at http://www.theguardian.com/uk-news/2014/nov/25/lee-rigby-murder-internet-firm-could-have-picked-up-killers-message-report-says).

Now, this should be a shock, especially to the family members of Lee Rigby, so why is this even a story? It starts with the first paragraph “Internet companies face intense demands to monitor messages on behalf of the state for signs of terrorist intent after an official report into the death of Fusilier Lee Rigby said one of his killers wrote on a website – later named as Facebook – of his desire to slaughter a soldier, without the security services knowing“, was this written by someone who had a clue? If we consider CNet (at http://www.cnet.com/news/facebook-processes-more-than-500-tb-of-data-daily/), we see that Facebook processes 500 Tb a day, now this is all manner of data, yet consider another indirect connection when we see ‘Tesco director facing questions about lobbying government over dirty chicken report‘ (at http://www.theguardian.com/world/2014/nov/25/-sp-tesco-director-facing-questions-lobbying-government-dirty-chicken-report), the first paragraphs says it all (as far as information goes) “Former FSA chief Tim Smith understood to have warned Department of Health that revealing food poisoning contamination rates could provoke a food scare and damage the industry“, so when we add the text “Tim Smith is understood to have warned the Department of Health in June that FSA proposals for publishing results, which included naming and shaming individual supermarkets, could provoke a food scare and damage the industry“, so when was all this released to the media? how much delay was there? Consider the implication of the statement in there that “it kills around 100 people and makes an estimated 280,000 sick each year“, now we get back to the implied message that might have saved Lee Rigby, if we take that a message in total is no more than 60Kb (it is a lot smaller, but could include graphics), we are looking at 8 billion messages each day (those we make, we forward or share, those we get offered as advertisement). Now, there is more, Facebook has applications with within that application message options. Not one or two, but a few dozen, which means additional messages, like simple online messengers, all that data, now also consider the implied message that the Guardian mentioned. “The report said the authorities were never told that one of the killers, Michael Adebowale, wrote of his murderous intent six months before he and his accomplice, Michael Adebolajo, brutally attacked Rigby in May 2013 in a street near his military barracks and attempted to behead him“, so finding the message, investigating it and acting on it. In well over 2.5 billion optional threats, the National lottery in the UK has better odds of winning a big price in it, so how did all this come about?

Here we get to the issue “The ISC chair, Sir Malcolm Rifkind, accused internet companies of providing a “safe haven” to terrorists but said a despite a string of failings by the security services, which had repeatedly monitored both men before the attack, there was nothing they could have done to prevent the murder of Rigby“, here I start having an issue, particularly with Sir Malcolm. Consider one sincere threat in a place where there are millions of threats, boasts and pranks, all claiming something pretentiously grandiose. It is my believe that Sir Malcolm is all about trying something different and he going about it the wrong way, he is trying to get to Damascus, via Washington and Los Angeles. Not the brightest route to take. Apart from the approach he is implying to take, he is also forgetting about a series of events that he needs to take, which will fail and in the process will enable commercial companies to actually hammer down on consumers in the wrong way. Does Sir Malcolm realise that, or did he intentionally forget about that part?

What did I mean by that? You see, the intelligence branch has access to enhanced statistical algorithms; they match it via other created profiles. Now, normally such a profile is only created when a person has too many flags in his/her name. For example members of an extreme faction, people with links to organised crime and those with additional political agendas. There is a bunch of reasons which will result on the eye of the intelligence community on you. For the most they are checked every now and then and if nothing happens, nothing happens, it is that simple, which an accumulative approach to sifting data tends to be. This is all good and proper; it is a way to protect national interests. For the most they end up verifying that you are not a threat, or not a concern to them, it comes with their territory.

The intelligence branch has resources, they are there, but they are finite. Sir Malcolm seems to be pushing for a change that is extremely dangerous, you see, at some point, Facebook, Google and others will all be shanghaied into becoming ‘volunteers’ in data oversight. They will get all kinds of tax breaks, so there will be interesting benefits for these data farms, but now we get to the real dangers. At one point, they want more and push for a change that will allow these farms access to those advanced algorithms, now we get a new problem, now we see a change where those farms will get to analyse US ALL! they will have the algorithms and the linked data no commercial enterprise should ever be allowed to have, now we will all be set into those who get access (viable as retail commodity) and those who do not matter, we will get marketed into oblivion, but now directly into the realms we use to love, it will be a push to sway us into a direction we never wanted to go, our freedom becomes a point of pressure. Consider, you might love ‘the Office’, once social media digs deep, how much will you enjoy getting 10-20 sales pitches a day on your personal interests? How long until you stop sharing interests?

Now consider the following:

The ISC said in its report: “Whilst we note that progress has started to be made on this issue, with the Data Retention and Investigatory Powers Act 2014 (Drip) and the appointment of the special envoy on intelligence and law-enforcement data-sharing, the problem is acute. The prime minister, with the National Security Council, should prioritise this issue”.

The part not mentioned or looked at is data retention. I wrote about it on October 2nd 2014 in ‘Advice from the press?‘ there I wrote “I am still convinced that if data retention becomes a larger issue, the intelligence community will be lacking in hardware, knowledge and staff to deal with these massive amounts of data, which leaves us open to other issues, yet this is just my view!“, now we see a push that social media will do more scanning.

The next two paragraphs illustrate certain dangers down the track: “Adebolajo, the more dominant of the two, had featured in five MI5 investigations and Adebowale in two, but none found evidence of an attack. The ISC said MI5 made errors and was plagued by delays, but even if corrected none of this would have helped the security service to spot the level of danger posed by the attackers before they struck“, so how could we have kept Lee Rigby alive? The information to the better extent is stating that this would not have been the case and I am not the only one thinking this.

When we consider “The Guardian understands senior figures in MI6 expressed anger at the criticisms in the report. One source familiar with the committee’s work said: “It is fair to say that the chaps across the river are not happy at all.”“, we see another part. This is not just within the UK, the UK needs to protect itself, especially with the ISIS acceleration we see all over North Africa and in the Middle-East; this all requires a new strategy. Data is at the centre of it, that part is correctly seen by Sir Malcolm Rifkind, chairman of the ISC. Yet, my issue is the view the man seems to have in regards to integrity. Commercial enterprises have no integrity and to a larger extent, neither do internet providers. So we have an upcoming issue. The next part you the reader might observe is the part that was not clearly seen in the article and it has been part of the events that miss one item as we see these discussions.

What time is it?

Yes, the timeline! That is part of all this. No matter how lovely that ‘donut’ looks in London, the people there have been delaying with an increased amount of data. I personally would consider it to be in excess of 30% in growth per year, which means that the data collectors and analytical group grows over 100% in size in a little over 3 years, the accumulated requirement for the UK, and beyond that the Commonwealth requires growth beyond that. In my view, letting places like Facebook crunch that data and giving them access to some of these algorithms is clearly a bad idea. In addition, consider that these firms could harbour ‘sympathisers’ to chaos. Once these algorithms gets into other hands, how long until those supporting ISIS and like-minded extremists will get a handle on lowering their profile even further, making this entire approach pointless?

That danger is twofold, storage, which is the non-essential part. As storage seems to become cheaper and cheaper, that part will be decently manageable overall, the other part is the issue, processing power. We can want for all the processors we can, but the power processors of tomorrow are less and less equipped to deal with such a growing load of data. Now consider that this is just Facebook, how much additional data will we need to see mail providers, twitter, Instagram and loads of other multi Gigabyte collecting options. There is no denying that data needs to be looked at, yet direct data crunching is less and less an option. The question becomes how to tackle it, can or even the question should it be tackled like this at all?

That is the dangerous side, isn’t it? When we are confronted with such an abundance of data, why seek the pressured solution? Let’s not forget that the example taken here, namely Lee Rigby, would not have been saved. So why try to seek a solution in such a pressured environment? Consider the lottery example; if 1,000 out of the 5 billion are death threats, we get a number one in 5 million, now we need to tackle these 1000 messages, which ones are genuine? Consider that some are below the radar, which means that some could be WRONGLY disregarded. Add to that the danger of a prank jest where a group and all THEIR friends send one threat regarding a VIP, politician or regent. It would drown out intelligence resources in mere minutes.

So yes, no one denies that something must be done, yet giving social media these responsibilities is not the best idea, giving them access in some way to other algorithms is less a solution, we are in a shift of dimensions, an interaction of data dimensions and profiling intelligence. Consider the NSA data center in Utah, costing over 5 billion in total, in addition, the cost of electricity, manpower and other costs, taking it to an additional 50 million a year (for just one location). Now consider that this centre will need to grow processing power in excess of 50% within two years, how much additional costs will it require? Add to this the energy needs, well over 60 Megawatts, yet within 2 years, that could be closer to 80 megawatts. That means in excess of 10 wind turbines, just for one location, the equivalent of 15,000 households of energy. I think that certain parties are not thinking in the right location, if we disregard the lack of expertise and an offer (in abundance) of revenue based (read commission seeking) expertise, it seems to me that even though data should never be ignored, certain approaches will require a different hand.

Perhaps it is not a new solution they need, but to reinstate a very old one.

Leave a comment

Filed under IT, Law, Media, Military, Politics, Science