Tag Archives: Sun Tzu

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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