Tag Archives: Sun Tzu

Exposing lies?

We are confronted with lies all the time, the CIA (who is truly gifted in the act) uses it to spread all kinds of discourse, but that is their operandus mondi, so we are not surprised. Yet now we are confronted that these tactics have been embraced by both the FBI and the Pentagon. And it is not my source; it is an American source that gives us this part.

To get to the heart of the matter, we will have to borrow a TARDIS and do some time-travel (a valid Dr Who reference). During this trip we will not be looking at apples and oranges, but we will be investigating fruit, and this has all the bearings on the case.

Trip one

Let’s travel back to November 24th, 2014. It is a sunny day at Sony Square New York, 21 degrees, nice and relaxing weather. It had all the marks of it being a lovely day, were it not that someone decided to hack Sony and they did it, not only did they do it, they left all the markers blaming North Korea. The FBI send their cyber experts and behold, they too agreed that it was North Korea. Even as we were extremely aware that they had no way of doing it, the FBI stood firm on their findings.

Trip two

We are pushing the envelope and stopping at 2015, 2016, 2017 and 2018. We are given “North Korea’s offensive cyber capabilities” and we see Randall Schriver, a top Pentagon official and all the ‘so called’ expressionistic ideas on how North Korea is the big nasty, the large danger and the big hacker. In addition to this the Financial times gives us (at https://www.ft.com/content/cbb28ab8-8ce9-11e9-a24d-b42f641eca37) “Pyongyang controls an army of thousands of hackers who bring in hundreds of millions of dollars annually, according to experts’ estimates“, which was given to us in June 2019.

Into the Heart of Darkness

It was only hours ago that we were given the first light of truth by the Washington Post. To give you that we need to change the topic to fruit and not apples or oranges. You might realise that to get ahead, you need to be ahead. Unless you build a system yourself, you need access to a system of equal quality to hack into a place. Unless you have the passcodes (current password = Inc0rrect%) and inner workings, you cannot hack past the Pentagon Cray, it is close to impossible to do with even the most updated equipment and North Korea is well over a decade behind. It is defended by firewalls and other encrypted matters. Sony is not that advanced, yet still has a lovely set of firewalls and other means to limit access. Yet North Korea, with technology that was considered advanced in 1990, was nothing of the sort a decade before they hacked Sony. In addition, certain access methods or planting of other abilities would have required 4G mastery, a mastery that they do not have. The digital footprint does not match up and it is there that the Washington Post (at https://www.washingtonpost.com/world/national-security/leaked-documents-reveal-huaweis-secret-operations-to-build-north-koreas-wireless-network/2019/07/22/583430fe-8d12-11e9-adf3-f70f78c156e8_story.html) is giving us the goods.

So as we are given: “Before 2008, North Korea struggled to find multinational companies willing to build a 3G network in such a risky business environment. That ended with the creation of the wireless provider Koryolink, which emerged from a discreet visit in 2006 by Kim’s father, Kim Jong Il, to Huawei’s headquarters in Shenzhen, China” this is the first piece of evidence, 6 years before the hack North Korea did not have access to 3G, it was not there, as such the knowhow of hacking would have been severely limited. In addition to this we need to consider “Alexandre Mansourov, an adjunct professor at Georgetown University’s School of Foreign Service, who in 2011 wrote about North Korea’s digital transformation. “They decided to work with Huawei from that time on.”” gives us that in 3 years that stage was not surpassed, or even achieved. The paper by Mansourov also gives: “less than 3 percent of the population currently use modern telecommunication services, it has adequately trained human capital, a rather developed industrial and technological base, and sufficient financial resources to pursue the digital revolution to the benefit of the majority“, which now implies that the fall back is actually a lot larger. If they truly had a ‘rather developed industrial and technological base‘, then they would be the oranges that need not rely on Huawei, yet they are technologically speaking merely apples, they are both fruit, but on a different shelf, a lower shelf and that is where we see the technology fail (especially in North Korea). In his paper we also see: “Because the cell phones connect to Chinese cell phone towers it is difficult for the North Korean government to eavesdrop on the calls, but it does mean use is restricted to the border area“, this implies that the limitations in North Korea are actually larger and as such knowledge is more limited. that last part came from ““How Chinese Cell Phones Help Information Flow,” Martyn Williams, 1 April 2010” which was 4 years before the hack, there is no way for any nation to evolve their technology level in that amount of time without having billions, as well as all the technology available for installation and implementation. Which was never the case, North Korea is hardly on the 3G path keeping them a decade behind everyone else.

Fruit, Apples and Oranges

So even if I am looking at fruit, looking at mobile technology versus hackers is like setting apples against oranges, yet the larger truth remains, a hacker cannot surpass certain levels of access if they lack access to the current generation of technology and that is where we see the flaw in all this. To have antiquated equipment access the Sony mainframe calls for all kind of issues as the access requires speed, and if you rely on old technology there is a limit to what you can get. For example getting a 4TB drive for a PlayStation 3 is bogus as it cannot address the complete drive, so when you look at it from that path, you lack the ability to store all that data and Sony was all about data. More important, if the skill to get behind a 4G system is not there, there was not even 3G, how can you get into the hack? Now we might rely on normal lines, but the flaw is already shown, you need a larger comprehension of technology and telecommunication to proceed and North Korea is stated that it could not get 3G without Huawei; at that point we should recognise that it could not get into Sony. If they actually had done that, then they would have been able to design and build their own 4G (which would still be half a decade too late), but that would be the premise. That absence gives us that the Washington Post, who also gives us: “According to a 2008 contract, Panda would transport Huawei equipment to Dandong, a town in northeastern China known for cross-border trade. From there, it would be taken by rail into Pyongyang“, as well as “In spring 2008, Orascom and Korea Post tasked Huawei with developing an encryption protocol for the network, noting that the government would create its own encryption algorithm, according to the documents” this much larger stage does not absolve Huawei (it is not about that), but the fact that encryption protocols were not in existence implies a delay of at least 2-3 years to get their 3G up and running, the entire matter would have given North Korea less than 2 years to get trained to the levels required to visit the Sony Server and become an actual cyber threat. There is no realistic chance that this would be the case and again, when we consider the press visit to North Korea (somewhere in 2012) where the Dutch press learned that their high ranking escorts had no idea of what a smartphone was, that alone gives a lot more insight in the technological limitations of North Korea and its army.

There is no doubt that North Korea would love to be an actual threat, but when it cannot comprehend 3G to the degree it needs and it has no 4G, how is North Korea an actual threat? I believe that Sony was hacked by someone else, there is also enough valid intelligence to see that those people would love to do business with North Korea, yet the entire matter connected to Huawei implies that North Korea is missing several links on the chain of telecom cleverness, the reigns of the horse of innovation and the armour of progress is all rusty, heavy and useless. In this stage the North Korean cavalry might be the most advanced they had but it still does not match up what other nations have had access to from the late 1800 onwards, when you realise the difference to that degree, do you still believe that North Korea could have been the hackers?

That is seen when we look at ‘The Hill’ in 2017. There we get North Korea and the quote: “Today, when warfare can include the operational use of nuclear weapons, the cumulative consequences of underestimating “friction” could be exponentially more serious. This conclusion is true by definition and thus, thoroughly incontestable” yet when we see in a 4G world that North Korea has not even mastered 3G to the degree it needs, we see a shift of needs, needs that are all about the consultants charging their overexposed ego’s by the hour, whilst we see a lack of evidence on the abilities towards the dangers that we are seemingly exposed to. In that regard the FBI and the pentagon has played into the hands towards consultants like Randall Schriver, yet the actual evidence (implied to be) as we now see in the Washington Post gives us another picture, one that bounces against earlier accusations and speculations. March 27th, 2019 C-Span gives us the premise that China and North Korea are set together as a threat, yet the overbearing accepted evidence shows that the division sets the stage where China is 99% the threat and North Korea a mere 1%, yet together is nice to bump the budget. So far no actual or factual evidence has been shown where North Korea is an actual cyber power. As I personally see it, even the NY Times is in on it.

When we are given: Their track record is mixed, but North Korea’s army of more than 6,000 hackers is undeniably persistent, and undeniably improving, according to American and British security officials who have traced these attacks and others back to the North“, as well as “North Korean hackers tried to steal $1 billion from the New York Federal Reserve last year, only a spelling error stopped them“, and “only sheer luck enabled a 22-year-old British hacker to defuse the biggest North Korean cyber-attack to date“. when we are confronted with ‘spelling error‘ and ‘sheer luck‘ we are sold a bag of goods, the fact that North Korea is at the most about 3G, we see the lack of certain abilities. If these hackers were that good, than their abilities would have been to acquire all the technology that we have full access to and that has seemingly not happened. In any war we acquire the weapons to be an equal footing, or more advanced footing, von Clausewitz and Sun Tzu taught us that. You do not rely on the flintlock when the opposition is walking with a 7.62mm MAG. The accusation (also from the NY Times) “the country is suspected of having thousands of hackers capable of carrying out global cyber-attacks, like the recent ransomware attack in more than 150 countries” gives us that they are a large threat and this is only possible with a large established infrastructure. That is seemingly not the case so as we ponder ‘suspected‘ we see the speculated inflated danger that North Korea is, and until today, until the Washington Post gave us the article, that part was too eagerly accepted.

There is no doubt that there are hackers in North Korea, but as the technology shows, they are fighting with one hand on the back wearing a blindfold. It does not make them less dangerous, but it also implies that the events that have taken place were done by others and as such the cyber operatives trying to stop it are not merely failing, they are at present completely unaware who they are actually up against and that is the sad part of this story. after all the billions they got they are still clueless in the dark, a sad story that only came to light as the Washington Post gave us: ‘Leaked documents reveal Huawei’s secret operations to build North Korea’s wireless network‘, seemingly a 3G network no less. And even there we have no evidence at present. That part is given through: “Since then, any company to provide Panda with telecom items intended for North Korea and containing at least 10 percent U.S.-origin content without a license would be in violation of the export ban”, so not only is there a question on one side, the lack of evidence at present gives rise to a lot more issues and that makes for such a sad situation at present.

 

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Where are my lenses?

For a moment I was contemplating the Guardian article ‘National borders are becoming irrelevant, says John McDonnell‘, which could be seen as a load of labour by the Bollocks party, or is that a load of bollocks by the Labour party? Anyway, the article was so shaky that it did not deserve the paper to explain the load of bollocks in there. What is however an interesting article, is the article in the National Security section of the Washington Post. The article “‘Eyewash’: How the CIA deceives its own workforce about operations” is worthy of digging into for a few reasons (at https://www.washingtonpost.com/world/national-security/eyewash-how-the-cia-deceives-its-own-workforce-about-operations/2016/01/31/c00f5a78-c53d-11e5-9693-933a4d31bcc8_story.html).

Initially, the very first thought I had was regarding Lao Tsu, who gave us the quote: ‘Those who know do not speak. Those who speak do not know‘, which is a truth in all this.

Apart from the title, the first quote to look at is: “Senior CIA officials have for years intentionally deceived parts of the agency workforce by transmitting internal memos that contain false information about operations and sources overseas“, there are a number of issues here, but let’s focus on one thread for now.

You see the second quote “Agency veterans described the tactic as an infrequent but important security measure, a means of protecting vital secrets by inserting fake communications into routine cable traffic while using separate channels to convey accurate information to cleared recipients” is at the very core of this.

No matter how you slice and dice it, the CIA has had a number of issues since 2002. The first is that after two planes got the wrong end of a vertical runway, the game changed, suddenly there was a massive overhaul and suddenly it had to deal with the United States Department of Homeland Security. In 2002 the DHS combined 22 different federal departments and agencies into a unified, integrated cabinet agency. More important, the DHS was working within and outside of American borders.

Now, the blissfully ignorant (including a host of politicians) seemed to live with the notion that under one flag and united, these people would start playing nice. Now, apart from that being a shaped a joke of titanic proportions, hilarious and all, the reality is far from that. You see, both the FBI and the CIA (not to mention the NSA) suddenly had to worry about 240,000 people, 240,000 security screenings. What do you think was going to happen? The issue of ‘false information about operations and sources overseas‘ is not an issue until you try to exploit that information, which means that you are doing something ILLEGAL (to the extent of being worthy of a shot through the back of the head). ‘Eyewash’ is only one cog in a vast machine of smokescreens that counterintelligence has to see how certain tracks of misinformation makes it outside the walls of intelligent wailing. You must have heard the story of the Senator/Governor who has a ‘friend’ in the CIA, not all those ‘friends’ are working valid paths. The intelligence community is a closed one for a reason. There is a clear chain of command, which means that the CIA has a chain of command and if a Senator or a Governor wants information, there is a clear path that he/she walks, from that point a politician gets informed if that person is allowed or has a valid reason for knowing. If anyone needs to move outside that path, you better believe that it is for political or personal reasons!

Now we get the quote that matters “officials said there is no clear mechanism for labelling eyewash cables or distinguishing them from legitimate records being examined by the CIA’s inspector general, turned over to Congress or declassified for historians“, I am not sure that this is correct. The question becomes what paths and what changes were pushed through in the last 2 administrations? I am willing to contemplate that errors have popped up since the Bush Government, yet in all this the parties seem to forget that the DHS was a political solution pushed through by politicians within a year. I know at least three companies that seriously screwed up a reorganisation of no more than 1,500 people over the period of 2 years, so what did you think would happen when 240,000 people get pushed all over the place? In addition, when a massive chunk of the intelligence section went private to get an income that was 400% better than there previous income (same place, same job), additional issues became their own level of a problem within the DHS, CIA, FBI (and again the non-mentioned NSA).

There were all levels of iterative issues in DATAINT, SIGINT, IT and Tradecraft. Names like Bradley/Chelsea Manning and Edward Snowden might be the most visible ones, but I feel 99.99993422% certain (roughly), that there were more. Eyewash is one of the methods essential to keep others off balance and in the dark what actually was going on, because it was not their business or place to know this. This gets us to the following quotes “But a second set of instructions sent to a smaller circle of recipients told them to disregard the other message and that the mission could proceed” and ““The people in the outer levels who didn’t have insider access were being lied to,” said a U.S. official familiar with the report. “They were being intentionally deceived.”“, now consider this quote from another source “Having DOOMED SPIES, doing certain things openly for purposes of deception, and allowing our spies to know of them and report them to the enemy“, which comes from chapter 13 of Sun Tzu’s ‘The Art of War‘, a book that is almost 2,500 years old, and the tactic remains a valid one. Should you consider that to be hollow, than consider the little hiccup that the British Empire faced (I just love the old titles). Perhaps you remember the names:  Kim Philby, Donald Duart Maclean, Guy Burgess and Anthony Blunt. They made a massive mess of British Intelligence, it took them years to clean up the mess those four had left behind, now consider adding 245,000 names, for the most none of them had passed CIA and/or FBI clearances. So what options did the CIA have? In addition, as we saw more and more evidence of the events linking to Edward Snowden, additional questions on the clearing process should be asked in equal measure, which leads to: ‘What options did the CIA have?’

In that light, the quote “Federal law makes it a criminal offense when a government employee “conceals, covers up, falsifies or makes a false entry” in an official record. Legal experts said they knew of no special exemption for the CIA, nor any attempt to prosecute agency officials for alleged violations” becomes little more than a joke, for the mere reason that not making the intelligence community exempt from this would be a very dangerous issue indeed. You see, today the CIA has a larger issue than just small players like North Korea, it has to deal with business conglomerates all over the world and they have become close to sovereign financial entities in their own right. What happens when a Senator chooses to take a book filled with intelligence anecdotes, just because it is an American Corporation? What happens when he gets the multi-billion dollar deal and he only has to ‘sweeten’ the deal a little? This is entering a grey area that most regard to be a grey area no one wants to touch, but what if it is not a high ranking official? What if it is just a mid-level controller, or a mere IT member looking for a retirement fund? Suddenly, this scenario became a whole lot more realistic, didn’t it?

Eyewash is just one cog in a machine of cogs, it drives a certain amount of cogs of the machine and as certain levels of Intel makes it outside of the walls, counterintelligence has a path to trot on, the article only lightly (too lightly) treads on those elements (yet they are mentioned), but the overall issue of internal dangers that the CIA (et al) faces are almost trivialised, in addition, the entire issue of the DHS and the linked dangers of intelligence access remains untouched. That is perhaps the only issue the article has. Well, from my point it has a few more, like under valuating the need for counter intelligence and the fact that this tactic had been around for around 2,500 years, but let’s not squabble on minor details.

The only additional minor detail I would like to add is that in all this is the missing component of the chain of command towards the Director of National Intelligence (which at present is James Clapper), in opposition, there is no denying that there is an issue that the internal mechanisms for managing eyewash cables were largely informal, which is an issue, even if there would be a clear document, likely higher than Top Secret within the CIA on how to identify and/or classify eyewash cables. Which now only leaves us with the Eyewash cables by No Such Agency like the CIA, but that is something for another day.

 

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Changing the rules of Democracy

An interesting thought isn’t it? It was CNN that gave me the idea in the first place. It all started with the article on the upcoming Argentinian default (at http://money.cnn.com/2014/07/25/investing/argentina-default/index.html). I have skin in the game here. Part of my family comes from there, which is why it caught my eyes in the first place. This is not the first time that Argentina has been in such a problematic state. The last time was in the late 90’s when it faced the great depression.

So, why is this event such a big deal?

Let us not forget that apart from soccer, many regard Argentina, no matter how beautiful it is, as a third world nation. So why is it allowed on the International Capital markets in the first place?
That was not an offensive question, but I need to ask it so that I can answer the questions many of us have in the first place. Argentina is in second place when it comes down to South American GDP, after Brazil (who is in first place by a massive margin), it is followed by Colombia and Argentina has a GDP that is 50% better than the nation holding position three, Colombia. So, within the ‘third world’ Argentina is pretty high up there. The second fact is that Argentina has the 21st position in regards to GDP, so this gives a massive view to how big its economy is. So why is it about to default on a 1.5 billion bond?

Well, Argentina is playing hard ball, a statement that seemed weird, because in the light of Argentina it seemed like worrying about a shave on route to the guillotine (a fake fear many former French Aristocats had, pun intended).

My first thought was the ‘worry’ why the IMF was not speaking out on all this. It seems so outspoken on a little place like Cyprus (no insult intended), yet is remains silent on an economy a hundred times larger?
What gives?

Well, my faithful old Yahoo had a nice part on this (at https://au.finance.yahoo.com/news/impact-argentine-default-100849473.html).
I particularly liked the following quotes: “The IMF proposed an international debt restructuring mechanism in 2003 but the plan was abandoned under pressure from the United States, the institution’s largest stakeholder, and the major emerging-market economies“, so the USA needed to keep Argentina as a cash cow or what?

The second one was “Under a US court order, Argentina has until Wednesday to either pay hedge funds demanding full payment on of its bad debts — or face a default that could have serious economic consequences“. So is this another USA hedge fund game?

If we consider the generic statement “Hedge funds are made available only to certain sophisticated or accredited investors and cannot be offered or sold to the general public. As such, they generally avoid direct regulatory oversight, bypass licensing requirements applicable to investment companies, and operate with greater flexibility than mutual funds and other investment funds“, we see the fear that governments are financially no longer run by governments but by those holding the credit bill behind the scenes.

This gives us a lot more fear then we should have to deal with and as such, it seems that democracy is no longer in the hands of the people, but in the hands of those managing the hedge funds. As such, did US District Judge Thomas Griesa buckle under internal pressures or is there something else in play? We should ask this question as we see that the response we see (at http://www.irishtimes.com/business/economy/us-judge-orders-argentina-and-bondholders-to-agree-deal-1.1875547), which is quotes as “Jonathan Blackman, a lawyer for Argentina said even with around-the-clock talks ‘it would be unlikely, if not impossible, to result in settlement. It simply can’t be done by the end of the month’ he said

This feels like a game played with millions of households on the butcher’s counter, with the meat cleaver already raised up high. There is not enough information in these sources to clearly state how the game was played up to now, or the involved players behaved and how the international justice courts (not just the US) as such have been behaving on the given facts. The fact that the IMF has warned that an Argentine economic default could not only hurt the country’s economy, but also the global financial system is another fact in the entire game as this is currently playing out. What is FACT, is that we have seen hedge funds cash in at the expense of close to a billion people, they played a game that made them wealthy and left the rest in destitution, yet now we see more and more that these players are implied not to be held to rules of oversight and it can bypass licensing in apparently too many flexible ways. Yet, it must also be clear that Argentina is not blameless in this game either.

Not unlike the USA, when we compare debt to GDP (governments seem to love that comparison) USA is currently set to 101.45%, whilst Argentina is only at 45.6%, which implies that Argentina has an economy twice as solid as the US has (a false statistic, I know!). So when we play the numbers game, this default, or even to allow for this event to occur seems massively stupid in my books. The question becomes why Argentina is continuing to play such a level of hardball, the debts will not go away, Argentina would lose its place as a G20 member and beyond that the foundations of the Argentinian economy will be shaking for a long time to come, opening additional doors for investors to bail out of Argentina, take the first row boat across the Rio de La Plata and set up shop there. This in the end will be a massively good thing to Uruguay and the economy of Montevideo for the next 10 years.

So, how is this all affecting democracy?

In my view if we want to remain true democracies, then it is time to regulate Hedge Funds and their managers. It will require a level of oversight that is beyond reasonable, as the economic fall of the USA in 2008 has proven to require. In that regards the term ‘Vulture funds‘ seem very appropriate. The US and in particular its FBI are all about hunting down Loan Sharks, whilst at the same time they ignore a 2.4 trillion dollar market right under their noses.

Yet, in all this Argentina is not without blame either. Someone approved these debts. If we accept, no matter how repulsive that these funds, referred to the behaviour of vulture birds “preying” on debtors in financial distress by purchasing the now-cheap credit on a secondary market to make a large monetary gain, is as such opening a market, which is high risk and also at time high yielding, then we must accept that Argentina stepped, willingly or not, into a field with their eyes wide open, as such they largely have themselves to blame.

If these are matters of fact then we see the acts on both sides of the isle to allow and even mandatory pursue the need for a change to the democratic standards we see in monarchies and republics. If you wonder why I made the reference to the Guillotine, than consider the History of France, its bankers and the change as it brought order through Napoleon Bonaparte. The statement ‘War never changes‘ seems highly appropriate here, it is a quote from a Videogame, yet the truth behind it is as solid as the writings of ‘von Clausewitz’ and ‘Sun Tzu’. The question remains in these economic wars, who are the warring parties and who are the people behind the screens. You can be certain that those names are not the names of any elected official. Does that not change the premise of both economic war and democracy?

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