Tag Archives: NSA

August 28, 2013 · 00:09

I miss the cold war

It is a line from a movie, yet at times that is how I feel. Most of the elderly who served will likely feel the same. We had a common goal and a common enemy. We ‘feared’ the values that would be given to us by the Iron curtain. Then something happened, they seemingly went bankrupt. Not unlike India, Russia now has the fastest growing numbers of billionaires on the planet. Yet, the numbers do not add up. This relates to what happens today in Syria. No matter how the events in Syria began and I will admit, I know not when that premise there changed, but it had. The roughest of estimations would be that somewhere in September 2012 the game changed. I believe that it was before the UNHRC statements of September 28th (now exactly a year ago). Those against were China, Cuba and Russia. China seems to have been ‘sincere’ in their deliberations and Cuba did what Russia asked. Russia changed the game. In their minds this would be the beginning of a new cold war. There is one massive difference. This time we would likely lose!

The factors involved are a nothing less than an incompetent American administration. As the banking issues had hit them, their inability to solve or reacquire anything, with in addition two very expansive and expensive wars in Afghanistan and Iraq had depleted the American coffers to less than nothing. When two parties are not in agreement, then the winner hits when the other party is down for the count, words spoken before by several parties and ignored or silenced by greed driven parties. Edward Snowden was not part of this in any way. I think this is the one lucky break both Russia and China never expected to see. You see, there are ripples connected to that. If the NSA has breaches to this extent, there would be a chance or even nothing less than likely that GCHQ (UK) might have similar flaws. Unlike their building, the donut, which has a hole in the middle, they will have a hole somewhere. If it does exist, then it is in the technology and not likely in the people they have. I reckon that I count myself to that cause where we protect and preserve the monarchy, even if I am just an Australian. The fact is that if technology was unable to stop Snowden, then it is not unrealistic that GCHQ has similar flaws, especially as GCHQ is given a mere fraction of resources the NSA gets on an annual base.

There is supporting evidence to these thoughts. The ALLEGED hacking of the UN building might count. If the alphabet groups were aware that there are issues with any upcoming cold war, then knowing as much as possible is essential. This could have driven the events if the hacking of the UN was a fact. Why the video conferencing? It was not about getting the voice feed, which is not too hard; it is however to find and identify people through the video link(s). If there is a new cold war brewing, knowing where certain people are is an actual must. If we can believe ‘Der Spiegel’ then staff members from the NSA had been tracking their wives. Leave it to some idiotic American to use these resources to keep an eye on his wife instead of giving her the orgasms she was entitled to (at http://www.theguardian.com/world/2013/jun/30/nsa-spying-europe-claims-us-eu-trade)

Yet back to the Syrian chess pieces. Assad, or as he should be known now as ‘Pinocchio 2’ has been doing the things that Russia wanted them to do. Slowly moving him and whatever reasoning he has (whether valid or not), to instil the safety and security of his current position. Yet that part is actually slowly but surely being forfeit. Russia needs the UK, France and US to intervene. Consider that this intervention will drain troops and costs in excess of 200 billion Euros. After that Pinocchio’s strings can be cut, his role will have been played out. This will not be a quick step and a likely aftermath of no less than 2 additional years. That is all they need to stop economic restoration. It is all they need to ensure an upcoming advantage.

Russia has been handed a massive advantage by several parties involved.

Are we considering suspending humanitarian laws in the UK? In the UK it is Home secretary Theresa May who stated “Britain should consider leaving the European Convention on Human Rights because it interferes with the government’s ability to fight crime and control immigration, Home Secretary Theresa May said on Saturday (9 March)”. Leaving the European Convention on Human Rights does not mean that the UK is abolishing Human rights all together, yet, taking into account the dwindling support for legal aid is a clear second part of this. For Russia it will be the flag they raise to state that Western values are flawed, to be suspended when times get hard. They would be correct. Instead of stopping greed driving consumption and acquisition we enabled it for too long.

Back to Syria!

At present the game has changed. We see carefully phrased denials, the game to postpone. In addition we saw an interview with an Assad loyalist, claiming he was a victim of a chemical attack by the Syrian opposition. Did anyone notice that the video’s from the Syrian opposition were people hardly able to speak and hardly able to breath. The Syrian soldier was in a hospital looking no worse than someone going there for a broken toe. Interesting that this was not that illuminated by the journalist. The fact that one soldier seemed to be in the crossfire whilst dozens of dead civilians, children and Syrian opposing troops on the other side. Let’s call a spade a spade shall we?

The conference by Walid al-Muallim did not help the Syrian cause either. They went one step further by now implying that Israel is now a likely strike point. Now let’s disseminate their ‘statements’. From Fox news we see the statement by Mohammed Javad Zarif: “We are in close contact with the Syrian government and they have reassured us that they had never used such inhumane weapons and would have the fullest cooperation with the U.N. experts to visit the areas affected.” (At http://www.foxnews.com/politics/2013/08/25/us-naval-forces-move-closer-to-syria-hagel-suggests)

Really? Then why were these investigators stopped for a week? Their promises are hollow for the simple reason that whatever attack the opposition made would be a danger to any chance the opposition has, whatever attack Syria made on these investigators would condemn them. Not reporting anything is in Syria’s interest. The simple truth at present is that both Israel and Jordan prefer to stay out of the way as much as possible. Israel needs to wait whether Hamas or Hezbollah will start attacking Israel first. If Israel is part of the attack to Syria, then both Hamas and Hezbollah will launch strikes on Israel, this is why Walid al-Muallim adds Israel to the mix. In addition, Russians next puppet is about to enter the field. In an age where we thought that the tension between Iran and the west would lighten up, the Iranian news reported the following: “The Iranian ambassador to Russia says the Islamic Republic can play a ‘constructive role’ in the Geneva 2 conference which is expected to be held on the Syrian crisis.” Of course Russians motive is simple, whatever happens they win. If Iran fails, then the tension on Iran versus West lights up again, if they win America looks weak and in addition Russia makes another billion for loads of concrete for a ‘power plant’ (and then some more including a dozen 7 figure bonuses). In addition, these talks will show initial failings and weaknesses for the Americans as the west will not interfere with Syria and the ‘red line’ Syria crossed.

These are the facts behind certain strategies and in addition most of them are public. The parts that are not that visible were those that were brought to light by Wikileaks. We could argue that those illustrated involving Brown Lloyd James were to be investigated, yet, is that an actual truth? If we consider their mission statement which is “BLJ crafts high-impact communication strategies that move diplomacy forward.” then it might not be the pure smell of Lavender, yet, we should not forget that Assad is still the sovereign ruler of Syria, if BLJ keeps diplomatic channels open, then that is not a bad thing.

How are these events linked?

That is part of the issue. Even though the UK wants and could enter the field to intercept Syrian chemical war abilities, PM David Cameron will go via Parliament (even though not officially needed). When the vote is up, consider who will oppose this and how many of them have had dealings with BLJ. It might make for an interesting picture. The other part where BLJ becomes visible through one of its executives (Mike Holtzman) was an article that goes back to 2003. In that part it was the quote “A solid majority of Americans-over fifty percent-believe the U.S. should lift restrictions on Americans’ freedom to travel to Cuba, allow U.S.-produced food and medical products to be sold to Cuba unimpeded and take steps toward normalization with Cuba as a matter of America’s national interest.” At present the Cuban travel embargo still exists. There are more connections that Mike Holtzman had, and many of them in his work serving both Syria and Cuba, so where does he truly stand? Let me be clear! This man broke no laws, is doing his work and chose his customers as he is allowed to choose them (even though many would call the choice questionable). Yet, in the light of Russia-Cuba and the issues at play we must wonder whether a second cold war has started, or is about to start. That evidence can be seen in several places, many of them public newspapers. The issues that the US has in regards Edward Snowden as well as the issues many nations have with Russian’s anti-Gay approach do not help to diminish tensions (its not like the Russians actually cared about them tensions).

They (the Russians) do play this type of chess game well. As they stated “In connection with this, the Russian side calls for [Washington to] refrain from the threat of force on Damascus, to not fall for provocations and to try to help create normal conditions to give the UN chemical experts’ mission, which is already in the country, the possibility of conducting a thorough, objective and impartial investigation” the foreign ministry statement said (as published by the Guardian), we see that the delays from snipers and administration, the only outcome is that the UN inspectors will now be unlikely to uncover evidence to point to a clear transgressor. No matter who wins that part, no action will only show weakness on the American shores, which serves Moscow, Havana and Beijing just fine.

So is there an actual second cold war? I honestly do not know, but plenty of events are there to turn my ‘Do not know‘ into a very strong ‘likely‘.

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July 4, 2013 · 13:35

The Snowden principle

From my point of view we are dealing with the air that is getting slightly thick and foggy at the moment. The Edward Snowden issues are escalating and not in a good way.

This view became apparent as a flight carrying the Bolivian president was forced to land at the Vienna airport. This situation becomes even more ridiculous as “Bolivian officials claimed France, Italy, Spain and Portugal had refused to let the plane cross their airspace over ‘unfounded suspicions’ Snowden was on the jet.” Source: http://news.sky.com/story/1110864/snowden-not-on-bolivian-presidents-plane.

These nations not only knowingly hindered a presidential flight. The fact that this was all about ‘a rumour’ seems to be a clear case that the intelligence community is BLUNDERING on several national levels (including those of the commonwealth). So, basically as we read this we can conclude that as the flight time from Moscow to Vienna is a little over two hours, that including take off and all, for 3 hours no one had a clue where Snowden was. Do they know where he currently is, or are they only suspecting it? Why is all this getting bungled to the extent it currently is?

I would also like to add that it was a presidential flight; it was carrying the Bolivian president Evo Morales. The fact that this had been done, how long until US Air Force One will, on suspicions be forced down in the same way (just to check)? This is a step that should never have been allowed, whether Snowden was or was not on board.

The simple truth is that this plane had no way to make the flight in one go, so it would need to refuel in more than one place. If those countries had an extradition treaty, he could have been detained at that point, as this was a diplomatic flight, this level of breach of protocol will have far fetching consequences.

If this was about getting Snowden and if I had the call, I would have ‘accidently’ (really accidently mind you!) soured the ‘milk’ at the refuel post and offered a replacement plane (with the most humble of apologies of course). The fact that they would have to relocate to another plane gives an option that Snowden left the plane and then he could be arrested as diplomatic immunity could not have extended to him. Was that so hard a scenario to concoct?

Personally I am all for getting Snowden to the US within the boundaries of the law. This act was not one and there is every chance that heads will roll on several airports in response. The acts transgressed are clearly against the diplomatic convention.

That danger can be found in the ‘Vienna Convention on Diplomatic Relations 1961’, Article 22, s3. The premises of the mission, their furnishings and other property there on and the means of transport of the mission shall be immune from search, requisition, attachment or execution.

So in my mind I am wondering which brainless individual was responsible for that little caper. And I am actually pointing my finger at the US State Department at this point. France, Spain, Italy and Portugal made the error of barring a diplomatic flight from crossing their airspace and all at the same time? No, I do not think so. They were called, but called by whom?

In my mind, the Snowden principle is not just out of control, it is now leading us to questions we never expected to ask. The US intelligence budget has been in excess of 240 billion over the last 3 years. We have had 2 severe intrusions of data intelligence, the appearance that the NSA has a flawed HR system and now we have someone overruling diplomatic rules creating international scandals. It is likely that the last issue was driven by the US State department, yet, they should be aware of protocol, which takes us back to the intelligence community. Oh and lastly, for several hours the whereabouts of Snowden remained unknown, whilst that person was known to be in a specific building in the hours leading up to this.

Personally it seems to me that those on the hunt of the Wicked Warlock Snowden are just not thinking straight.

 

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July 2, 2013 · 15:38

Microsoft Mattrick was not alone

Anyone who has any view on the gaming world, then that person might have heard about the Xbox One and also heard the scary announcements that were made by Don Mattrick. Views that had to be altered only 2 days after the E3, the most important event in the Gaming industry. Do not think it is a small geeky thing. The E3 is massive. The gaming industry has grown in 15 years from ‘sizeable’ into a multi-billion dollar industry, so those who are there are there for plenty of reasons. The E3 is next to Comic-Con seen as the place to be to bump into Hollywood stars. Funny part is that they get to revere the geeky guys who come up with games like Mario, Metal Gear Solid as well as leagues of sport stars when they announce the EA sport line.

In this environment the Xbox One was launched, and the following revolt by gamers all over the planet gave Microsoft the scare of their lives. As a result Microsoft did a 180 degree on their policy, giving their new console the nickname Xbox 180. That was not the end. Even though things are announced to be back to what they were, their market share is not. It is not unlikely that Microsoft is now at risk of losing 30% of their market share and most of that to Sony. That, in a multi-billion dollar industry is a lot, it could be the biggest drop in market share a main player has ever experienced by its own plans.

So the following news I saw today that Don Mattrick is leaving Microsoft for Zynga (the people behind Farmville), as I read it, I saw many messages drop by. Some making fun of Don, some leaving a ‘happy you leaving’ message to Don. Gamers can be so emotional!

http://www.forbes.com/sites/tomiogeron/2013/07/01/report-microsofts-don-mattrick-to-leave-microsoft-considering-zynga-role/

The reality is that this is far from over. Do you think that this is over? Do you think one man like Don Mattrick actually sets the trend to a market THIS BIG and you think he is alone? No, he took one for ‘the team’, and it likely comes with one hell of a golden parachute. You see, the picture that seems to be intentionally missed is that data gathering is big business. I am not talking about what the NSA might be doing. This is about market research, customer metrics and product predictions. Gathering certain key factors makes all the difference. That is the multi-billion dollar industry that Gamers are not interested in, but one that Microsoft is adding and as such the Xbox One is not a gaming console, but a Home entertainment system. It will be offering TV, Movies and games. All that info will help them finding the holes in what we desire and cashing in on it. Information that is worth millions! Now this data would be grabbed on a scale of many million consumers and on a global scale. The value that it would represent is beyond what you can imagine.

http://www.nytimes.com/2012/10/20/technology/microsoft-expands-gathering-and-use-of-data-from-web-products.html

So, I was not the first to state it, and I will not be the last. It is important that you realise that these claims do not come from some conspiracy theorist wannabee, but from Journalists working in some of the most renowned newspapers in the world.

So Don ‘you have to go on-line daily’ Mattrick is not alone in this game. To start this all with the Xbox one would have been only the start in achieving gathering on a much larger scale. That is how I see it, and that is also why interactivity with other devices was so important. The more interaction there is, the more complete the picture becomes. Smartglass is only one part of interaction, the fact that they are letting you interact with your home system with iPhone and iPad means that they would be getting even more of your available data.

Do not think I am just making this up. The privacy issues, as reported initially, were reported by IT experts in privacy in Germany and several other nations too, amongst them Peter Schaar who is in charge of Data protection and freedom of information in Germany. In the German magazine ‘der Spiegel’ he mentioned the dangers on privacy that the Xbox One could be. http://www.spiegel.de/netzwelt/games/ueberwachung-datenschuetzer-peter-schaar-kritisiert-microsofts-xbox-one-a-901893.html

Do not think that you are suddenly getting downloaded. No, that would be illegal! This will be a smooth transition over the next 2-3 years. By interacting you will get many cool little extra’s you normally would never have. Like movies behind the screens on your iPad (as they showed on CNet). Soon it will interact getting your mobile to Skype directly to TV, to switch information through your pictures and events. Before you know it, you will move all data to the cloud for ‘free’ backup services; you will only need to agree with the terms of service. That is when it will happen. A new form of business and it is enterprising on a new level. Where business sits in the centre of the web and we are all like a fly, just going into their web. We do this because of the benefits we are offered, like an exponential multimedia interacting form of Facebook. We by ourselves have no value, but their return comes a million fold as we all accept their terms and conditions as we are offered free extras.

Why is this situation so dangerous?

You see, initially we think that there is no difference, but consider that these numbers are all used to find the points of profit. Where we are subjected to what 98% likes. By that reckoning cult series that grew over time will now get cut suddenly or after a few seasons, as the results are not up to marketing standards. Consider that series like Firefly, Pushing Daisies, Veronica Mars, Jericho, Dollhouse, Heroes. These series got all cancelled on ratings. In the new set-up they could get cancelled in half the time. An interesting part is that the writers of Veronica Mars set up a kick-start event, and the funds for a third season were achieved in 10 hours and will launch early next year. So one in several series gets another shot after the ratings. What series will you lose because 98% prefers sports or Glee? You see artistic creativity is not about numbers. Remember, that because of fans the original Star Trek series got another season, now that series and what came after is now the biggest milk cow in the history of Paramount. There is no way that this could have been predicted.

We will miss out on series after series, limiting views and artistic growth, because it does not confirm to what people expected initially. It is not initially an issue for most, but these events will add up and we diminish ourselves accordingly. It is a danger I do not want to see, because those who will be given the power to decide will always act on greed. We have decades of evidence in that regard.

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July 1, 2013 · 02:07

Classes of Classification

I was about to do that horizontal thing (sleeping, in case you wondered), where one is in a natural state and loudly snores like the local sawmill! I was actually looking forward to that event. It is almost 00:30, so I need to get up in about 5 hours. However, Sky News stopped that idea pretty quick.

The reason is that the news just showed me a part involving Edward Snowden and more information he ‘leaked’. In this case it was all about spying on the EU diplomatic mission and how that was ‘strictly confidential‘, roughly 0.0324 seconds later I was more than wide awake and started this blog.

So what are the issues? Well three come to mind, but the third one is for a little later down this story.

So the first issue is the classification. No matter, whether the documents were from the CIA, NSA or Alphabet Soup Incorporated. There are levels of classification. Confidential is a lower level. Apart from the issue that there is an issue that the diplomatic integrity of an ally was ‘transgressed’ upon, is there actually any reason why such information would not be Secret or higher? I would even think that this would be Top Secret level information and as such that information remains with a small (read extremely small) group.

Let’s take a look at this ‘Strictly confidential’. I do not have the rules that the NSA applies, but I was able to get the protocol from a World Bank document as to how this is treated. They might be kids play compared to the NSA, but you will get the idea (and I have to start somewhere).

Information and documents that are deemed to be of a highly sensitive nature or to be inadequately protected by the CONFIDENTIAL classification shall be classified as STRICTLY CONFIDENTIAL and access to them shall be restricted solely to persons with a specific need to know. The staffs of the Institutions shall establish a control and tracking system for documents classified as STRICTLY CONFIDENTIAL, including the maintenance of control logs. Documents classified as STRICTLY CONFIDENTIAL shall be:
(i) marked with such classification on each page;
(ii) kept under lock and key or given equivalent protection when not in use;
(iii) in the case of physical documents, transmitted by an inner sealed envelope indicating the classification marking and an outer envelope indicating no classification, or, in the case of documents in electronic form, transmitted by encrypted or password-secured files.

So if we consider the digital version, and consider that most intelligence organisations use Security Enhanced Unix servers, then just accessing these documents without others knowing this is pretty much a ‘no no’. EVEN if he had access, there would be a log, and as such there is also a mention if that document was copied in any way. It is not impossible to get a hold of this, but with each document, his chance of getting caught grows quicker and quicker. He did not get caught, not for many megabytes of duplication.

So, whether these events were true or not, there is now an issue. Not with external trust, but from my point of view with internal trust. If he remained undetected, then several alphabet groups have IT issues of an unprecedented level. Could this even be remotely true?

The second issue is that like any Intelligence organisation like the GCHQ for example, most people are assigned certain areas. The fact that Edward Snowden had such a wide access is more than questionable. The fact that the press seems to just take whatever he serves up with a certain air that whatever Edward Snowden claims is true should also be looked at. In my view it does not. Especially when we consider that he is stuck in some Russian airport terminal awaiting the option to ‘escape’ to Ecuador. You see, his access raises too many flags. It does not matter whether he is the IT guy. The NSA has dozens upon dozens of them, and as such, the fact that he was able to syphon off such a wide area of information (and get it out of the building) seems to be an issue that no one is too investigative about.

What is this all about? That is the question we should be asking. All these events do not add up. This is not some FBI leak (no attack on the FBI). This is a group that was referred to for a long time as ‘No Such Agency‘. The fact that he passed all kinds of interviews befroe the job (on psychological probing levels far above most can imagine), a man who ‘just’ walked away with the kitchen sink and a USB drive loaded with tagged documents. It does not add up in my book.

Now we get to the third issue.

If some amount of this data would be rock solid, then the US has an intelligence community that is leaky as a sieve.

1. A disillusioned intelligence operator gets a job at a department even more hush hush then the CIA and the psychological interview does not raise flags considering the conditions he left the CIA?
2. That person gets access to information on several levels and from several branches and no one is the wiser. More important no flags on these secure servers are tripped?
3. This person gets the goods into Hong Kong, then casually flies into Russia and now is waiting for his flight to Ecuador, whilst at the same time US extradition groups (according to Hong Kong media) drop the ball in getting a hold of Edward Snowden?

Is no one suspicious on what is going on? I for one see reason to distrust several sources at present.

Looking back, Julian Assange got access to his documents though military channels. There have been less than positive issues with the lack of Common Cyber Sense in several military areas. The fact that those events happened outside of the US and under military field conditions where certain security measures are hard to uphold is understandable. That does not make it right, but the circumstances were pretty unique. The fact that someone walks out of places like the NSA or GCHQ with a USB filled with all levels of information is an entirely different matter.

If we accept this article by Sky News as true http://news.sky.com/story/1109739/snowden-spying-claims-us-bugged-eu-offices, then we could be in for a rough ride.

In the end, reality is that spying goes on at all times on many levels (as stated by Mr Reardon on Sky News UK). Mi-5 tries to keep an eye on what the CIA does in the UK, the FBI keeps tabs on MI-6 in the US and none of them care what happens in Australia. Works for me!

So the fact that the CIA is keeping tabs on the EU makes perfect sense, especially with all those new states getting added. However, bugging the hell out of all these buildings is not that productive overall (as there are other sources to these kinds of information). So is the reality that there were just 2-3 bugs (the German Spiegel was aware of one of them) and some document Edward Snowden had just adds loads more?
What Intel does he have that is actually reliable? Are we being run by some wannabe laying it on thick hoping for a nice fat pay check? I wonder what happens now that Russia and China both lack interest (and Ecuador is not that appealing if one lives there without money). So what of Edward Snowden? Sky had another article on that. http://news.sky.com/story/1109235/whistleblower-snowden-may-return-to-the-us. In this article the father is afraid his son is being manipulated by different parties. Even by WikiLeaks. He might return to US if certain conditions are met.

Conditions? For a traitor? And next they claim that all politicians are straight shooters too!
Well, for those who believe that, I have a bridge to sell you, GREAT view on the Tower of London!

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June 23, 2013 · 19:55

Who are the real watchers?

It is 02:00, SpyHardwareI slowly move into the building that is owned through puppet corporations. The true owner is no one less then Vladimir Kumarin, the most powerful man in St. Petersburg. Entering the building is relatively simple. I avoid the guards, one almost saw me. It is tempting to use sentry killing, but the body will be found. There can be no trace. I install the small remote webcam. Hacking into his wireless router is relatively simple. It is military grade, but my link to the Cray Titan in Langley soon has that fixed. The router got hit by 400,000 requests a second. It cries for its mamma in less than 7 seconds, a new record. I am in and ghost accounts are set up less than 15 seconds later. The scripts run without a hitch. a low tech wireless microphone is set up 3 minutes later. That is the one they will have issues finding, but it will be found, so the rest remains invisible. I leave silent as the night, no trace left and less than 2 hours later I look like a drunk American exchange student studying in Sweden, on a train to Helsinki.

Yes, it reads like such a nice story, but none of it is true! Thinking of Splinter Cell’s Sam Fisher, I am not even that good a spy writer, so I will leave that skill to Mr Clancy. The closest I get to action is the Xbox360 edition. Suits me just fine!

If we look at today, then all we need is a little box that fits into the palm of our hand. We sit in a coffee shop where the ‘privileged young executives’ tend to show off their expensive mobile, laptop, slightly overcharged suits and they look for that young lady dressed to… ‘Impress’. He then logs in does some basic wizardry stuff and considers himself in the running for a possible afternoon of great sex. That was his plan, will she bite? Nearby is a guy who no one notices. He wears a polo-shirt, likely cargo pants too, has a crossover bag and is typing on his laptop. He looks like many Uni students that get casually ignored. He was waiting for the guy (or anyone like him) to show off. He did just that, and less than 3 seconds after the information is typed in, he has link and login details. He now knows what network he can invade. Perhaps the young executive is lucky and he is of no value. If not, his account is broken down and thousands of dollars on internal communications, price agreements, customer’s details and many more details are now duplicated. It would be worth quite a few coins for the right competitor. As such the quiet student will have all his Uni debts paid off long before he gets his degree. So, what is this about?

You see, the Guardian today is having another go at the intelligence industry. I am referring to http://www.guardian.co.uk/uk/2013/jun/21/gchq-cables-secret-world-communications-nsa. Here they discuss several acts that GCHQ has allegedly involved in. My issue is with this part of the sentence “process vast quantities of communications between entirely innocent people“. Is that any different from what Social media and market research is doing? Let us not forget it is all about the latter part of that same sentence “as well as targeted suspects“.
If there was a way to just focus on that 0.0003% of that population, then it would be easy. But life is not that easy as we learn ourselves on a very daily basis. The only issue I truly have with that article is “Snowden told the Guardian. ‘They [GCHQ] are worse than the US’”. Really Mr Snowden? Let us go over those facts again. First he betrays his country. He is not some guy who got into the thick of it. He first does not make it past basic training. He then gets a chance to serve in the CIA (whomever gave him that brake is truly regretting that act I reckon). He then walks away and joins the NSA. Is there anyone not having any questions at present? So, he knows what is required and then he walks away and not just to anybody. He runs off to Hong Kong. In my mind, he must have thought that the Chinese cyber division would want to offer him a cushy job. But these boys would see through him in no time. Those savants know every in and out of every bit a Cisco system routes, how it does that, why it does that, and where the threats are. Snowden does not instil that level of ingenuity to me. So again, he did not go to some non-extradition country out of conviction (like Ecuador), no he went straight for the ‘enemy’ and is now allegedly enjoying Borsjt and Blackbread in Russian company.

Let us get back to the issues that really matter. This is not about those who claim to be ‘entirely innocent’. This is not even about your average criminals that much. GCHQ is one part to keep England safe. As described earlier, security is no longer done through a backpack full of tricks. The bulk of today’s danger comes to individuals we know not where, and it arrives to them in the simple form of a message. It could be an e-mail, an SMS or even a chat message left on a gaming site. To find them GCHQ needs to get to them all. Do you think they read these messages? That is not humanly possible, every second internet information is created that would take one person a lifetime just to get through. So it becomes about flagging. We can look at two flags. 1 flag is green and is zero threat. That is well over 95% of all communications. This also includes all the dicey and spicy spam messages we get. In effect, they know where it came from, where it is going to. The people they seek are of a different variety. They are all about not being able to detect, or to detect the origin. That is already less than 0.3% of all these messages. Then we go on and on. 1% out of that 0.3% is now a possible threat. Is it? They do not know yet, but the amount is now so small, they can actually start taking a look at the facts. Even then it could be harmless, yet many millions were crunched into less than 1000. That group might be part of the second flag. Even that number is still too high. As time progresses more is crunched and then those people at GCHQ will really go to town and pass on what might be a threat. So, was there an issue? You might think that it is, but if you are entirely innocent then the chance that they saw your data is actually so small that winning the lottery has a much better chance. Do I worry? Hell no. My usage is even less than that. Many download movies, some download pirated games. None of that interests the Intelligence community. They want to learn one thing. Where is the threat to us coming from?

The bulk of us will not even register on their radar. If we rely on the numbers in the article “By May last year 300 analysts from GCHQ, and 250 from the NSA, had been assigned to sift through the flood of data.” that is 550 people to sift through amounts of data that is so much that 1 minute of generated internet traffic will require them all to work their entire careers to sift through that much. Reading our emails? We are just not that important and we likely never will be.

If you are worried, then worry about real threats. The real non-terrorist threat out there today, are the many normal people, not using Common Cyber Sense as they use free internet to do what they need to do from the comfort of their non-desk. Those are the people endangering YOUR data, because they are out to get some personal gain.

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June 14, 2013 · 16:42

How the mighty fall

For some the E3 is still in the front of their minds. For some it is the confirmation of things to come and of things about to happen. For some it is also the start of a nightmare.

When it comes to gamers, we often see the start of name calling. We might hear words like Nerds, Geeks and a few others. It makes the people who do not understand gamers happy and comfortable. There is however the group that thinks of them as exploitable. That group is about to see the light in ways thy have never experienced it before. In this I am talking about Microsoft.

You see Microsoft had a good name, for some this good name remains. The Xbox and the Xbox 360 are good consoles. I have a 360 and I have enjoyed gaming. I will enjoy gaming a while longer, but no matter how good it could be, the X-Box One (XB1) is currently not on that list. You see, Microsoft wanted too much, too quickly and now they are at risk to pay dearly. There were these large thoughts of charging pre-owned games for usage, to be online at least once every 24 hours. This has nothing to do with gaming. This is all about keeping tabs. I wonder if the scare the NSA PRISM issue gave many has anything to do with it.

The truth is that the gamer group wants to play games pure and simple. I belong in this group. I can afford a new game with some regularity and I have been part of Gaming and the Gaming Industry since 1986.

I know plenty of people, many mothers who want to give their kid a nice game, but $109 is just not in their budget. Even for some it is over the top for a birthday present, which is very understandable in this economy. These people RELY on pre-owned games, and in this economy that group will grow exponentially for a little while longer. So when Microsoft enabled the chance to go after gamers, I revolted! The reason is simple, if we gamers do not unite, we get taken for a data-collection and money grabbing ride.

Some will not care about not being online, about privacy and they just buy games and play. That is fair enough. Buy your XB1 and game. Many of those will keep on gaming happily and all. I feel for those unable to buy new games, and even though they would face a season-pass fee to play multiplayer online (which in my mind is fair enough). they end up paying a lot less than the $100+,  to play.

So as gamers feel betrayed by the issues raised by Microsoft (or M$ as some now call them), they will move away and run towards the PlayStation 4. So Sony is more than the big winner, they are likely to leave Microsoft with their XB1 (or X-Bone as some call it now) far behind them and no longer see Microsoft as a contender in the gaming industry.

This also opened a door for others. Even though this market has had a long time 3 player supremacy, Microsoft has opened the door for Google to enter in the low class with their OUYA and open up for a new form of gaming. Even in old Roman days (not the one shown by the new game RYSE), we know that the people want bread and games. Even if everything goes down, political and industrial power remains where the people have bread and games. So as OUYA enters the field, as Sony strengthens its pure gaming power core, Microsoft is about to lose a serious amount of market share.

They will deny this and over time they are likely to show on how the ‘home-entertainment’ market is so up in revering the XB1, the gamers will see a shift in the balance of power. Nintendo has always been a gaming world and as such it has a unique family based following. Yet, the others will feel their markets. Sony will be up and Microsoft will go down.

I thought about this, and should I win the $25M jackpot (extreme wishful thinking), then I know exactly where to go. You see, Microsoft is about to leave a quarter of a billion dollars up for grabs for those who know how and where to take charge. It is very certain that Sony will grab part of that, yet they remain high end. Especially if we look at countries like Spain, Italy, Greece, the Netherlands, France, US and the UK. These nations are saturated with people who just cannot afford the high end gaming market and a $99 Google AUYO with a Google play approach of less than $10 games might sound small, but when you consider a market of 30-50 million gamers that is now up for grabs, that market will amount to serious coin.

Will Microsoft fade? No, they are too big to fade and when the Microsoft Lawnmower man comes in to trim the size of MS management and reshape their entertainment side. When they see the nightmare they themselves created, they will refurbish their share and they might even regain some of their lost market share. However they are unlikely to regain it all until the economy gets a whole lot better. This is not likely to happen before 2015. Until then Google gets a chance to get into a market they did not expect to have. A multi-Billion dollar market the got opened to too many factors of greed and they tried that in a place where greed gets stopped real fast.

Consider a count of games that consoles offer at launch date. In fairness all systems have start-up issues sith games. It comes with the territory. The Google OUYA at prelaunch (today) has registered 146 games for purchase. That is the biggest start EVER (ps1 games on ps2 launch date do not qualify, neither do NGC games on Wii). If this ends up about timing, then Google’s timing was perfect.

More info at http://www.ouya.tv/

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June 11, 2013 · 15:44

The Hunchback of the NSA

We have been hearing information in this regard for some time now. I added my thoughts in my last blog, and as this is such a growing story, let me see if I can add some details to this by looking at a few issues from another side. (Source: www.NOS.nl , www.Guardian.co.uk , et al).

Edward Snowden, His view is that it is up to the people to decide what is to be done. Is it?

2003: Edward joins the Army to deploy to Iraq. He suffers injuries during (basic) training and cannot continue the training.

200?: Edward has been selected into the sanctum and becomes an IT specialist with the CIA, placed in Geneva. Well, that is a nice handle up from basic training isn’t it. Some people dream of opportunities like that all their life.

He gets a dose of disillusionment. (Not my words, just quoting here). The CIA methodology does not sit well with him. As a data analyst with a few decades of experience, including some not to mention data depositories, I can tell him now, that there is method to their madness. I know where he is at this point, because when it is all about data cleaning, integrity checks and verification, whatever you do feels like carrying a bucket of water towards the ocean, but hey, that is what it is. He then decides to quit. That is fair enough! Not all are meant for that lifestyle (including unappreciative bosses that we see by the container load in the commercial world), and as such we should recognise that some of these jobs have a decidedly larger chance of burning out.

2009: He joins the NSA. Really? After he left the CIA? That is an interesting step. Especially knowing that one worries you, the other would not?

Well Edward, this is what you signed up for! But fair enough, you wanted to give it a go. He then becomes NSA’s own Arnold Benedict. Oh joy! (I say in a slightly sarcastic voice) and he ends up feeding the information to the PRESS. I will add that this is slightly better than dumping all this on Wiki-leaks. I will also applaud him for going to the Guardian as I personally see these people as slightly more devoted to Ethics then anything Rupert Murdoch has at present in my humble opinion. Still, Arnold, oops, I meant Edward goes out into the limelight. Consider that his job was to make sure that the American people remained safe. Did he? Many people including terrorists knew this was likely to happen. Now they have confirmation and they might employ new methods, making it harder for the NSA to find them. So who did Edward Snowden actually service? From my point of view it was not the American people. Oh, and Hong Kong of all places? It seems to me that he preferred to be bankable to several potential donators. (But that is just my view).

The NSA has an uncomfortable job that must be done. The terrorist (or perhaps better stated the extremist) threat is real, and as such organisations like NSA, GCHQ and DSD need to look at information as it flows to keep its citizens safe. There is an ugly looking sterile approach to information. It has no emotion; it is simple collection of data. Yes, if anyone gets the wrong phone call we could be checked. Yet, the data is up to a point so complete that these organisations can easily see whether this is a fluke, or if there is more. Is that not the best solution? Most people have this illusion that we have some kind of privacy. The reality is that our information had been collected and data mined by large corporations well over a decade before governments started to collect data.

Do you think that I am kidding?

Take a day in your life. You fill up the tank at a gas station. You use your tank pass to get the 3% extra discount. You pay with either ‘their’ card, or your card. Nowadays it is rare that people pay cash. You go to work. Lunch means that you get lunch at some place. You get a snack and you get 1-2 extra items. Anything at these points that have a pass, or card is in 70% of the cases collected data. Now you go home, get dinner, use your customer loyalty card and you go home. Whenever you did not use cash (and in some cases even if you did) your details were recorded. EVERY day of your life! Whenever you use your mobile, your mobile carrier knows roughly where you are (with some smart-phones they know exactly where you are). All that data has been collected in one way or another.

Yes, even beyond what Orwell contemplated, you are a data collection point, you are marketable!

This is the ugly reality that has been happening since even before 2001. The big problem for you is that many of these companies need to survive, they need revenue, so to survive and you are for sale. Whatever you did is for sale. No matter the amount of cleaning you think they do. It takes but one linkable fact to your raw data details to know exactly who you are, where you are and where you are likely to go. People like the NSA only want to know whether you are a danger to the nation and the people around you. Are you? The others want to make money off you? Only you know how ‘dangerous’ you are, the others want you to spend cash where they like it. It is a never-ending story of greed. So who do you really need to worry about?

So when we see the news on how politicians are all about worries, all about what was done, then ask yourself, what questions have they been asking, investigating and contemplating when it came to the data handed by all to commercial facilities.

Getting back to Edward, whatever his views are. If he was TRULY for the people, and TRULY doing something to make the world better, then he would have done something about the real issues and all those e-mails from bankers and so on. That did not happen, did it? Didn’t Julian Assange ‘vanish’ to Ecuador before he could make good on that promise? So when people are driven by who hold the usage of their credit card, what do we call them then? As for bankable matters, seems that his move to Hong Kong could be all about bankability, but who is banking who?

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June 8, 2013 · 14:01

Privacy and (fake) fears

It has been all over the news. The US government has access to your email and your details. It was quite the show to read this all yesterday and the issues this morning was set in a nothing less than A-level theatre play. A play that would make Robert Ludlum envious I might add.

The issue is that the US Government (NSA in this case) is reading your e-mails. They have been doing that for some time. Basically, it was the Patriot act that opened the (back) doors for them to get access to all this information. As they were dealing with data on a lower level in those days, their task was simple. Find Terrorists! Find those who attack America and deal with them. So readers, here is your fake fear! This is one moment where I agree with President Obama 100%. You cannot have 100% security and 100% privacy. Anyone claiming different is lying to you.

The NSA is not interested in you soliciting erotic acts from a recipient on the other side of the e-mail track. They are not interested in the deals you make offering a quick buck! So those in fear (roughly 99.8932353%) you have nothing to fear but fear itself. The part you are not afraid of is the part that SHOULD scare you. You see all that data that you ‘surrender’ to Facebook, Google, MySpace, and Friendster and so on. All THAT data you gave can be crunched, marketed and sold to companies, corporations and all who would buy them. THAT is an interesting part. That is the fear people need to have when they looked at the dangers that Dutch Equens represent (as reported in the earlier blog: ‘You might soon be sold by the banks!‘).

It is not just that part, it is the possibility that data miners offer as they combine data files in one coherent file that could be a personal ‘danger’ to you.

The NSA issues are not that. They need these abilities to fight the existing and growing threat called ‘the lone wolf terrorist’. These people are guided by sources like ‘Inspire’ magazine, which is created by AQAP (al-Qaeda in the Arabian Peninsula). It is however not that simple. The real lone wolves get their ‘guidance’ remotely from sources most do not know and all that under the eyes of the Intelligence Community. To have a grip on stopping these people, monitoring the internet is essential to keeping us the common people safe. If you think that reading mails was enough, then you are wrong. The further going plans by some to monitor the internet is going to be an essential part. Do not think that this is a fun exercise for those involved. It is pricey, it drains resources and it is never ending. As people move to the cloud the need to monitor upcoming dangers will only increase.

Most readers will have heard of the soldier killed in Woolwich UK. Home Secretary Theresa May was quoted when the mention came that this attack was not from a ‘Lone Wolf’ terrorist. I am not opposing this thought. Yet, it cannot be denied that magazines like Inspire might be central to these events. As such it is no wonder that GCHQ wants to peek over the shoulders of the NSA to see if dangers are hitting their small island (I meant the UK, for those who wonder).

There were additional issues that are growing on several grounds, which give weight to the need of monitoring and in all of these cases people like you and me are not an issue.

For most of you feeling fear of this, your fear is unwarranted. Your fear should be how Microsoft and Sony are very interested on squeezing your details out of you as they are preparing and implementing their Next Gen consoles. That will affect you a lot sooner than the security services ever will. (Blog: ‘Government ministers, be warned!‘)

It looks almost sanctimonious that people are so shouting at these government actions and after that spread their visions with pictures and reveal all they can (and sometimes with way too much info) using Shutterfly/Instagram and Facebook. When their identities are stolen they will whine that it is ALL the fault of the government on how their identity was not safe.

Seems almost laughable doesn’t it.

When we sit on the fence we do see that there is a responsibility to hold parties to account for what they do. In case of the NSA this is Judge Roger Vinson. So, yes, someone does take a look at what is done. When did you last hear a loud scream on what Facebook is doing with your details? How about never? Only when Facebook had certain plans involving Instagram did the inner demon of personal greed scream out stating that the pictures were not to be open for business. Again we see a show of double standards. Judge Roger Vinson, born in the state where the delicious Forest Reserve Bourbon is from (Kentucky). He is the Federal Judge for the state famous for Pina Colada and cool Mojito’s (Florida). He approved the data request that the NSA made. So, yes there is oversight on this. It is however not needed for foreign requests. Is that bad? We give it freely to Facebook, so why are they stopped from sharing that with the government. Are you having that drink yet?

The NSA, GCHQ, DSD, CSE and a few others need these data streams. They would like to prevent people who are eager to get other people blown up. For you and me to stand on ‘principle’ on one side and then we give away our identity to be marketed and spammed to commercial content is just way too weird.

The world is now visibly changing. It is in my mind a little frightful as we are soon to become part of something different. As the finance markets were not contained, and soon no longer can be contained ever, we see a move away from nations and nationalities. We are about to be reduced to a metadata tag. With an added weighting that is soon to be set to ‘useful’ or ‘waste’. This was not instigated by governments and not even by the intelligence community. It was instigated by corporations behind Social media; and as we openly surrendered our details we are now placed in boxes where we can be approached. When we have moved through all the boxes and we are no longer an asset in any box we will be given the ‘waste’ tag. Then what?

These are my words, but funnily enough I was not the first one to mention this. In the Netherlands there was a New-Age entrepreneur called Luc Sala. Even from the late 80’s he evangelized the dangers of the groups “have” and “have not” and how we were allowing ourselves to be placed in these boxes. I wonder if he ever realised that not only was he correct, but that it could even fade national borders? Consider what you heard over the last months, what we will see in the next 13 months. Prime Minister David Cameron was strong about keeping the UK identity safe, to protect it. He was not willing to step out of the EU for this. That step is now being sought after by UKIP and their leader Nigel Farage.

How are these related? This is a valid question that is forming in your mind. And I have been fighting with these thoughts and especially evidence around this. Without evidence all this is nothing more than a bad level of Conspiracy Theory. You see, all these messages we read in the last few days and the next week are in my mind a smokescreen to some level. We are all so shouting about privacy. Yet, who was up in arms when MySpace started to sell their data in 2010. (Source: http://www.pcworld.com/article/191716/myspace_selling_user_data.html).

Did you stop to think about your data on Facebook? Did you think ‘whatever’? So what other ‘evidence’ is there? In that case I point to several blogs I wrote, but more important you should look at more reputable sources like the Guardian and the Wall Street Times, where we faced stories in regards to the pay outs by all towards Greece, Cyprus and other nations to keep the economy ‘alive’. Whilst now we read how the IMF made errors. How a train line sucks up over 7 billion and is presently still not operational in the way it should be. This is a time and place where other nations are now giving aid as budgets are not met in various degrees by nearly all EU nations. So is it such a far stretch to see National borders fade as these issues are ‘resolved’ (read: ‘put on hold’) by group driven options. All this happens whilst we hear ‘voices’ that seem less and less aware of consequences or claim ignorance and error afterwards.

For this train of thought we need to see three parts

In the first part there is last year when this was quoted “The slight uptick is largely due to Europe, which is expected to return to very slow growth of 0.3 percent after the -0.2 percent contraction in 2012” (Source: http://www.conference-board.org/data/globaloutlook.cfm). Yet the guardian in two articles where the 2012 version stated in: http://www.guardian.co.uk/world/2012/nov/07/eurozone-growth-next-year-ec the following “with the 17-nation Eurozone eking out expansion of just 0.1% in 2013”. However 6 months later we read in: http://www.guardian.co.uk/business/2013/jun/06/ecb-eurozone-recession-deepen, where it states “European Central Bank says the Eurozone economy will shrink by 0.6% in 2013 as it considers unconventional policies to kick-start growth”. Numbers change and get adjusted, but the game can only be one of profit by those who have the right numbers (read the better data source). This game is played and replayed, again and again. This has bearing on all the privacy issue in the form of the collected data these predictors require. If the power of voicing the future is based upon data then your privacy is a thorn in the eyes of commerce as they do react to data, but whose data and created how? So as companies are making less, as economic values go down, other paths to revenue must be found and this does have bearing on your privacy, as you are data. This means you are commercial currency, not government currency as such.

This is the other side of data. Many corporations decided to ‘store’ their backup data in some High-Tech solution off-site facility, not unlike the hosting solution Peer1. Peer1 is a Canadian corporation with hosting locations in for example San Antonio (when they acquired ServerBeach). That is corporate data and as such there is an issue in this place. There had been soft voices of concern in those early days on who gets to access these data servers. American linked companies implementing off-site storage options in America from all over their European locations. Was local management realising that they gave their customer base and (financial) details to US insight?

There is NO; I say again NO evidence that these data files were ever ‘violated’ for commercial gain. If we consider the dangers of greed and in the light of what we read earlier, can we be certain that this did not happen, or even whether this is not likely to happen in the near future?

It had been clear that parties like the NSA had access. There is however a side we do need to take proper heed of. If they have access, then who else has access? From corporate documents from these hosts, corporations would have likely read how impossible access was, and how they never give out access. If that part was shown to be ‘violated’, then what other dangers lurk that these companies did not expect? (In this concept violated does not mean a legal violation as the data storage company would have been adhering to their government rules, yet the fact that corporations might not know this is a question for many and as such legal questions should be asked).

So think again, as social media is in their right to sell the data they have in some shape and that it is the price you paid for all these ‘free’ abilities that these places give you. Most do not worry, but then worry about information the government has/looks in to.

For private individuals all this is simply a fake fear.

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March 11, 2013 · 13:23

Start making sense

I have been tossing and turning for most of the night. Something has been bothering me all day, and as it seems most of the night. You see, the Dutch NOS reported on Saturday 9th of March an interesting footnote in their newscast. They suddenly had this short part on the news on how this is possible. (Source: NOS http://nos.nl/artikel/482586-record-op-record-voor-dow-jones.html)

This is interesting, as I asked pretty much the same questions in an earlier blog called “It hurts every time, but we love it”, which I published on Feb 6th, so slightly more than a month earlier. The Dow index is currently at 14,397 (which was a 2007 record). The issue is that we had the crash of 2008; one in six in the US lost their house. So, the economy is not in a good place. There was also the mention in their radio cast (English and Dutch). They seemed to focus on two parts. First was the fact that Economic recovery is gotten through revenue recovery without staffing (so 5 do the work of 10, and they are happy to have a job). Second is that the Dow is based on only 30 companies. Yet, when we look at the number I wonder what game is being played as I look at a 2 year index graph. This graph is Stellar. My issue is twofold. One I am NOT an economist, but a data miner. Second is that the given ‘excuse’ feels wrong. Especially given that the news had this production line backdrop of cars, and none of the 30 seems to be in the car industry. So why not present this with a pharmaceutical backdrop?

So let us take a look at some of these Dow Jones Index companies.

1. Bank of America. A bank, and after 2008, we could wonder in what state it is in. This quote comes from Forbes and was written by Halah Touryalai, one of the Forbes Writers “No bank knows that better than Bank of America which has agreed to pay a jaw-dropping $42 billion, settling credit and mortgage-related legal battles in just the last three years“.

OK, if we take that into consideration, then seems a little weird that their stock graph has the same shape as that of the DOW. (As one of the 30, it would make sense that the graphs are shaped similar, however, such confidence after such a legal fee settlement bill?)

2. JP Morgan Chase. Another Bank! It had two more dips then BofA, yet overall it is in an upwards movement as well. It was also mentioned in the same Forbes article as before on settlement fees, but those fees were a lot lower. The Bank of America had to chew on 66% of the total settlement fees by itself, so for the other 5 big banks, the damage was relatively small in that regard. However, In April and May 2012 they had lost more than six billion dollars on derivative trades that had gone bad. There was a report of 9 billion in total, which also involved Bruno Iksil for part of the mentioned amount, he is also known as ‘the London Whale’. The numbers and the names vary when we look at UK and US papers, but overall they pretty much tell the same story. It is interesting that JP seemed to bounce back within 6 months to stock values higher than before the June 4th 2012 dip. Last on my list is Boeing. It is a giant, but we have all heard of the 787 issues and it’s now named ‘Nightmare liner’. The issue is all about batteries, yet the news from January as reported by Reuters : The new production forecast raised some eyebrows. Russell Solomon at Moody’s Investors Service was forecasting 100 787 deliveries and said Boeing’s forecast of more than 60 was “significantly weaker than we had expected.” Interesting that what analysts expect and what the vibe says Boeing will be delivering is off by almost 40%. Suddenly NOT meeting expectations has almost no impact? 40% less on a firm the size of Boeing should have a very visible effect (imho).

Now the DJI is about 27 other companies and there are only two banks in it. It is also a fact that these banks work with securities and values in the hundreds of billions, so are my concerns just a storm in a teacup?

It is a valid question, and I also ask myself this question. Let us take a look at the two following thoughts.

1. US debt. It is set at 16.6 TRILLION dollars. The total US debt is a lot higher. That one is $59.1 TRILLION.
Can anyone even imagine those numbers? Now consider that someone has that kind of money. To be honest is that really true? Is there a group of nations with that level of wealth? the only nation capable of owning that much is one with an abundance of oil, so basically the United Arab Emirates (UAE) is the only one that wealthy. Either the US is labelled UAE-west, or my thoughts are not that correct in this instance. So perhaps I am wrong (I will be the first one to admit that).
We know that most value trades are now done digital. It is the only way for the market to move such amounts of wealth. However, who checks this?

I have seen my share of digital forms of miscommunication by loads of people in several fields. Often they seem connected to the corporate headquarters of Bloated, Botched, Bungled and Baboon. An always newly formed enterprise, coming to a local public stock market near you. Consider that this is done on the electronic super highway. Now consider that Hackers come at a dozen a dime and greed is eternal, these last two are given facts. Also realise that ANY system can be gotten at. DARPA and the NSA proved that more than once.

The valid question loudly remains: “Who truly checks the validity of trade and the numbers they are traded at?”

2. LIBOR scandal. I wrote about it, the news has talked about it in abundance. Last week in an article by Mark Scott in the NY Times on March 5th the following was stated “The review published by the Financial Services Authority, the country’s regulator, said there had not been a major failure of oversight by local authorities, but it added that officials had become too focused on containing the financial crisis to analyse information connected with the potential rate-rigging”

This is a fair enough statement (it did seem shallow in relation to the handed fines), and them be hefty fines, so why are these two events related? Well, in my mind there are two parts of the LIBOR that were in play. From my point of view there are two variables that might be played with. The first one we know. It is the interest rate; the second one is the bigger issue. You see, those percentages are linked to a total sum of $350 trillion in UK registered derivatives. That is 20 times the US national debt. If people play with one, there is every reason to suspect that they might have played with the other. So again, who controls those totals that are being traded in? If derivatives include hedge funds, swaps and forward rate agreements then we should be worried. Consider as well that the US Bank for International Settlements holds almost twice the value the UK seems to be registering.

So, we are now confronted with just in excess of 1000 TRILLION dollars. How can this even be monitored? Now let us add one more part. The US LIBOR rate is set by 18 banks. The two banks in the DJI are members. Are we all on the same page now? The third bank (Citi) is to be given a fine in regards to percentage ‘tweaking’. According to Reuters, later this year, a new set of settlements will be ‘delivered’. In their publication of March 8th by Kirstin Ridley and Philipp Halstrick it states that: “Deutsche, Citi and JPM are the banks named in regulatory circles as those candidates near the next settlements,” said the second source. So now we have both a DJI member and libor member in this illustrious ‘donation’ scheme. What else is at play?

What if the total value is not correct? What if they did not just play with the percentages, but the total package of the trade able amount? Let’s just take a fictive 5%. Mainly because I feel not so comfortable with the value they say they have and in part because I cannot even comprehend that much, as we get above the $200 trillion range. So, if 5% is taken off the total amount of over $1000 Trillion, would mean that we might all be devaluated by a total of 50 trillion dollars. That comes down to $8400 for every citizen on the planet. Did we sign up for that invoice?

It might be just be me (and I can happily live with that notion), but can bankers and financial corporations be allowed to continue on this track? We have seen clear evidence that those places cannot be trusted with even a small speckle of such amounts. Even though they NEVER broke any laws initially, LIBOR shows that some are very willing to do that. With the US on the edge of bankruptcy (or on the wrong side of a fiscal abyss), with the financial industry in such disarray, what can be done?

So when this all falls over (not if it falls over), what will we be left with?

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