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Paul Merrell

What are rare earth metals & why they are China's 'nuclear option' in trade war with US... - 0 views

  • The escalating US-China trade conflict has raised concerns about the measures each side could use in their fight, including Beijing’s option to restrict exports of rare earth metals. The economic measure is dubbed as one of Beijing’s nuclear options in its battle with Washington due to the fact that China is the top producer of rare earth metals and holds the largest reserves.
  • The United States relies on China, the leading global supplier, for about 80 percent of its rare earths.
  • China controls around 85-95 percent of all the rare earths’ production and supply. Last year, the country produced about 78 percent of the global volume of rare earths.
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  • The metals and alloys that contain them are used in many devices that people use every day such as computer memory, DVDs, rechargeable batteries, cell phones, catalytic converters, magnets, fluorescent lighting and so on.During the past 20 years, there has been an explosion in demand for many items that require rare earth metals. There were very few cell phones in use then but the number has risen to over seven billion in use today. Rare earths’ use in computers has grown almost as fast as the number of cell phones.Many rechargeable batteries are made with rare earth compounds. Demand for the batteries is being driven by demand for portable electronic devices such as cell phones, readers, portable computers, and cameras.Rare earths are also used as catalysts, phosphors, and polishing compounds for air pollution control, illuminated screens on electronic devices, and much more. All of those products are expected to experience rising demand.
  • He explained that China could cripple global industry, especially emerging technologies, if it were to ban exports of rare earth materials. There are very few options in sourcing those essential technology metals from anywhere else, the analyst said. “Of course, China does not necessarily want to do this, because, it plays a long game – and it does not want the West to develop alternatives.”
Paul Merrell

Commentary: Don't be so sure Russia hacked the Clinton emails | Reuters - 0 views

  • By James Bamford Last summer, cyber investigators plowing through the thousands of leaked emails from the Democratic National Committee uncovered a clue.A user named “Феликс Эдмундович” modified one of the documents using settings in the Russian language. Translated, his name was Felix Edmundovich, a pseudonym referring to Felix Edmundovich Dzerzhinsky, the chief of the Soviet Union’s first secret-police organization, the Cheka.It was one more link in the chain of evidence pointing to Russian President Vladimir Putin as the man ultimately behind the operation.During the Cold War, when Soviet intelligence was headquartered in Dzerzhinsky Square in Moscow, Putin was a KGB officer assigned to the First Chief Directorate. Its responsibilities included “active measures,” a form of political warfare that included media manipulation, propaganda and disinformation. Soviet active measures, retired KGB Major General Oleg Kalugin told Army historian Thomas Boghart, aimed to discredit the United States and “conquer world public opinion.”As the Cold War has turned into the code war, Putin recently unveiled his new, greatly enlarged spy organization: the Ministry of State Security, taking the name from Joseph Stalin’s secret service. Putin also resurrected, according to James Clapper, the U.S. director of national intelligence, some of the KGB’s old active- measures tactics. On October 7, Clapper issued a statement: “The U.S. Intelligence community is confident that the Russian government directed the recent compromises of emails from U.S. persons and institutions, including from U.S. political organizations.” Notably, however, the FBI declined to join the chorus, according to reports by the New York Times and CNBC.A week later, Vice President Joe Biden said on NBC’s Meet the Press that "we're sending a message" to Putin and "it will be at the time of our choosing, and under the circumstances that will have the greatest impact." When asked if the American public would know a message was sent, Biden replied, "Hope not." Meanwhile, the CIA was asked, according to an NBC report on October 14, “to deliver options to the White House for a wide-ranging ‘clandestine’ cyber operation designed to harass and ‘embarrass’ the Kremlin leadership.”But as both sides begin arming their cyberweapons, it is critical for the public to be confident that the evidence is really there, and to understand the potential consequences of a tit-for-tat cyberwar escalating into a real war. 
  • This is a prospect that has long worried Richard Clarke, the former White House cyber czar under President George W. Bush. “It’s highly likely that any war that began as a cyberwar,” Clarke told me last year, “would ultimately end up being a conventional war, where the United States was engaged with bombers and missiles.”The problem with attempting to draw a straight line from the Kremlin to the Clinton campaign is the number of variables that get in the way. For one, there is little doubt about Russian cyber fingerprints in various U.S. campaign activities. Moscow, like Washington, has long spied on such matters. The United States, for example, inserted malware in the recent Mexican election campaign. The question isn’t whether Russia spied on the U.S. presidential election, it’s whether it released the election emails.Then there’s the role of Guccifer 2.0, the person or persons supplying WikiLeaks and other organizations with many of the pilfered emails. Is this a Russian agent? A free agent? A cybercriminal? A combination, or some other entity? No one knows.There is also the problem of groupthink that led to the war in Iraq. For example, just as the National Security Agency, the Central Intelligence Agency and the rest of the intelligence establishment are convinced Putin is behind the attacks, they also believed it was a slam-dunk that Saddam Hussein had a trove of weapons of mass destruction. Consider as well the speed of the political-hacking investigation, followed by a lack of skepticism, culminating in a rush to judgment. After the Democratic committee discovered the potential hack last spring, it called in the cybersecurity firm CrowdStrike in May to analyze the problem.
  • CrowdStrike took just a month or so before it conclusively determined that Russia’s FSB, the successor to the KGB, and the Russian military intelligence organization, GRU, were behind it. Most of the other major cybersecurity firms quickly fell in line and agreed. By October, the intelligence community made it unanimous. That speed and certainty contrasts sharply with a previous suspected Russian hack in 2010, when the target was the Nasdaq stock market. According to an extensive investigation by Bloomberg Businessweek in 2014, the NSA and FBI made numerous mistakes over many months that stretched to nearly a year. “After months of work,” the article said, “there were still basic disagreements in different parts of government over who was behind the incident and why.”  There was no consensus­, with just a 70 percent certainty that the hack was a cybercrime. Months later, this determination was revised again: It was just a Russian attempt to spy on the exchange in order to design its own. The federal agents also considered the possibility that the Nasdaq snooping was not connected to the Kremlin. Instead, “someone in the FSB could have been running a for-profit operation on the side, or perhaps sold the malware to a criminal hacking group.” Again, that’s why it’s necessary to better understand the role of Guccifer 2.0 in releasing the Democratic National Committee and Clinton campaign emails before launching any cyberweapons.
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  • t is strange that clues in the Nasdaq hack were very difficult to find ― as one would expect from a professional, state-sponsored cyber operation. Conversely, the sloppy, Inspector Clouseau-like nature of the Guccifer 2.0 operation, with someone hiding behind a silly Bolshevik cover name, and Russian language clues in the metadata, smacked more of either an amateur operation or a deliberate deception.Then there’s the Shadow Brokers, that mysterious person or group that surfaced in August with its farcical “auction” to profit from a stolen batch of extremely secret NSA hacking tools, in essence, cyberweapons. Where do they fit into the picture? They have a small armory of NSA cyberweapons, and they appeared just three weeks after the first DNC emails were leaked. On Monday, the Shadow Brokers released more information, including what they claimed is a list of hundreds of organizations that the NSA has targeted over more than a decade, complete with technical details. This offers further evidence that their information comes from a leaker inside the NSA rather than the Kremlin. The Shadow Brokers also discussed Obama’s threat of cyber retaliation against Russia. Yet they seemed most concerned that the CIA, rather than the NSA or Cyber Command, was given the assignment. This may be a possible indication of a connection to NSA’s elite group, Tailored Access Operations, considered by many the A-Team of hackers.“Why is DirtyGrandpa threating CIA cyberwar with Russia?” they wrote. “Why not threating with NSA or Cyber Command? CIA is cyber B-Team, yes? Where is cyber A-Team?” Because of legal and other factors, the NSA conducts cyber espionage, Cyber Command conducts cyberattacks in wartime, and the CIA conducts covert cyberattacks. 
  • The Shadow Brokers connection is important because Julian Assange, the founder of WikiLeaks, claimed to have received identical copies of the Shadow Brokers cyberweapons even before they announced their “auction.” Did he get them from the Shadow Brokers, from Guccifer, from Russia or from an inside leaker at the NSA?Despite the rushed, incomplete investigation and unanswered questions, the Obama administration has announced its decision to retaliate against Russia.  But a public warning about a secret attack makes little sense. If a major cyber crisis happens in Russia sometime in the future, such as a deadly power outage in frigid winter, the United States could be blamed even if it had nothing to do with it. That could then trigger a major retaliatory cyberattack against the U.S. cyber infrastructure, which would call for another reprisal attack ― potentially leading to Clarke’s fear of a cyberwar triggering a conventional war. President Barack Obama has also not taken a nuclear strike off the table as an appropriate response to a devastating cyberattack.
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    Article by James Bamford, the first NSA whistleblower and author of three books on the NSA.
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