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Paul Merrell

Operation AURORAGOLD: How the NSA Hacks Cellphone Networks Worldwide - 0 views

  • In March 2011, two weeks before the Western intervention in Libya, a secret message was delivered to the National Security Agency. An intelligence unit within the U.S. military’s Africa Command needed help to hack into Libya’s cellphone networks and monitor text messages. For the NSA, the task was easy. The agency had already obtained technical information about the cellphone carriers’ internal systems by spying on documents sent among company employees, and these details would provide the perfect blueprint to help the military break into the networks. The NSA’s assistance in the Libya operation, however, was not an isolated case. It was part of a much larger surveillance program—global in its scope and ramifications—targeted not just at hostile countries.
  • According to documents contained in the archive of material provided to The Intercept by whistleblower Edward Snowden, the NSA has spied on hundreds of companies and organizations internationally, including in countries closely allied to the United States, in an effort to find security weaknesses in cellphone technology that it can exploit for surveillance. The documents also reveal how the NSA plans to secretly introduce new flaws into communication systems so that they can be tapped into—a controversial tactic that security experts say could be exposing the general population to criminal hackers. Codenamed AURORAGOLD, the covert operation has monitored the content of messages sent and received by more than 1,200 email accounts associated with major cellphone network operators, intercepting confidential company planning papers that help the NSA hack into phone networks.
  • Karsten Nohl, a leading cellphone security expert and cryptographer who was consulted by The Intercept about details contained in the AURORAGOLD documents, said that the broad scope of information swept up in the operation appears aimed at ensuring virtually every cellphone network in the world is NSA accessible.
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  • “Collecting an inventory [like this] on world networks has big ramifications,” Nohl said, because it allows the NSA to track and circumvent upgrades in encryption technology used by cellphone companies to shield calls and texts from eavesdropping. Evidence that the agency has deliberately plotted to weaken the security of communication infrastructure, he added, was particularly alarming. “Even if you love the NSA and you say you have nothing to hide, you should be against a policy that introduces security vulnerabilities,” Nohl said, “because once NSA introduces a weakness, a vulnerability, it’s not only the NSA that can exploit it.”
  • The AURORAGOLD operation is carried out by specialist NSA surveillance units whose existence has not been publicly disclosed: the Wireless Portfolio Management Office, which defines and carries out the NSA’s strategy for exploiting wireless communications, and the Target Technology Trends Center, which monitors the development of new communication technology to ensure that the NSA isn’t blindsided by innovations that could evade its surveillance reach. The center’s logo is a picture of the Earth overshadowed by a large telescope; its motto is “Predict – Plan – Prevent.”
  • The NSA documents reveal that, as of May 2012, the agency had collected technical information on about 70 percent of cellphone networks worldwide—701 of an estimated 985—and was maintaining a list of 1,201 email “selectors” used to intercept internal company details from employees. (“Selector” is an agency term for a unique identifier like an email address or phone number.) From November 2011 to April 2012, between 363 and 1,354 selectors were “tasked” by the NSA for surveillance each month as part of AURORAGOLD, according to the documents. The secret operation appears to have been active since at least 2010.
  • By covertly monitoring GSMA working groups in a bid to identify and exploit security vulnerabilities, the NSA has placed itself into direct conflict with the mission of the National Institute for Standards and Technology, or NIST, the U.S. government agency responsible for recommending cybersecurity standards in the United States. NIST recently handed out a grant of more than $800,000 to GSMA so that the organization could research ways to address “security and privacy challenges” faced by users of mobile devices. The revelation that the trade group has been targeted for surveillance may reignite deep-seated tensions between NIST and NSA that came to the fore following earlier Snowden disclosures. Last year, NIST was forced to urge people not to use an encryption standard it had previously approved after it emerged NSA had apparently covertly worked to deliberately weaken it.
  • The NSA focuses on intercepting obscure but important technical documents circulated among the GSMA’s members known as “IR.21s.” Most cellphone network operators share IR.21 documents among each other as part of agreements that allow their customers to connect to foreign networks when they are “roaming” overseas on a vacation or a business trip. An IR.21, according to the NSA documents, contains information “necessary for targeting and exploitation.” The details in the IR.21s serve as a “warning mechanism” that flag new technology used by network operators, the NSA’s documents state. This allows the agency to identify security vulnerabilities in the latest communication systems that can be exploited, and helps efforts to introduce new vulnerabilities “where they do not yet exist.” The IR.21s also contain details about the encryption used by cellphone companies to protect the privacy of their customers’ communications as they are transmitted across networks. These details are highly sought after by the NSA, as they can aid its efforts to crack the encryption and eavesdrop on conversations.
  • One of the prime targets monitored under the AURORAGOLD program is the London-headquartered trade group, the GSM Association, or the GSMA, which represents the interests of more than 800 major cellphone, software, and internet companies from 220 countries. The GSMA’s members include U.S.-based companies such as Verizon, AT&T, Sprint, Microsoft, Facebook, Intel, Cisco, and Oracle, as well as large international firms including Sony, Nokia, Samsung, Ericsson, and Vodafone. The trade organization brings together its members for regular meetings at which new technologies and policies are discussed among various “working groups.” The Snowden files reveal that the NSA specifically targeted the GSMA’s working groups for surveillance.
  • Last year, the Washington Post reported that the NSA had already managed to break the most commonly used cellphone encryption algorithm in the world, known as A5/1. But the information collected under AURORAGOLD allows the agency to focus on circumventing newer and stronger versions of A5 cellphone encryption, such as A5/3. The documents note that the agency intercepts information from cellphone operators about “the type of A5 cipher algorithm version” they use, and monitors the development of new algorithms in order to find ways to bypass the encryption. In 2009, the British surveillance agency Government Communications Headquarters conducted a similar effort to subvert phone encryption under a project called OPULENT PUP, using powerful computers to perform a “crypt attack” to penetrate the A5/3 algorithm, secret memos reveal. By 2011, GCHQ was collaborating with the NSA on another operation, called WOLFRAMITE, to attack A5/3 encryption. (GCHQ declined to comment for this story, other than to say that it operates within legal parameters.)
  • The extensive attempts to attack cellphone encryption have been replicated across the Five Eyes surveillance alliance. Australia’s top spy agency, for instance, infiltrated an Indonesian cellphone company and stole nearly 1.8 million encryption keys used to protect communications, the New York Times reported in February.
  • The NSA’s documents show that it focuses on collecting details about virtually all technical standards used by cellphone operators, and the agency’s efforts to stay ahead of the technology curve occasionally yield significant results. In early 2010, for instance, its operatives had already found ways to penetrate a variant of the newest “fourth generation” smartphone-era technology for surveillance, years before it became widely adopted by millions of people in dozens of countries. The NSA says that its efforts are targeted at terrorists, weapons proliferators, and other foreign targets, not “ordinary people.” But the methods used by the agency and its partners to gain access to cellphone communications risk significant blowback. According to Mikko Hypponen, a security expert at Finland-based F-Secure, criminal hackers and foreign government adversaries could be among the inadvertent beneficiaries of any security vulnerabilities or encryption weaknesses inserted by the NSA into communication systems using data collected by the AURORAGOLD project.
  • Vines, the NSA spokeswoman, told The Intercept that the agency was committed to ensuring an “open, interoperable, and secure global internet.” “NSA deeply values these principles and takes great care to honor them in the performance of its lawful foreign-intelligence mission,” Vines said.
  • Documents published with this article: AURORAGOLD – Project Overview AURORAGOLD Working Group IR.21 – A Technology Warning Mechanism AURORAGOLD – Target Technology Trends Center support to WPMO NSA First-Ever Collect of High-Interest 4G Cellular Signal AURORAGOLD Working Aid WOLFRAMITE Encryption Attack OPULENT PUP Encryption Attack NSA/GCHQ/CSEC Network Tradecraft Advancement Team
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    Notice that they've cracked even 4G.
Paul Merrell

M of A - Germany Getting Ready To Divorce U.S. Ally - 0 views

  • From recent talks and discussions in Germany I conclude that the U.S. is losing more and more support and sympathies. The admiration of earlier times has turned into disgust. While a lot of higher politicians and some journalists still cling to some (well paid) myth of U.S. friendship the party base in all political parties as well as the general public has changed its opinion. The NSA spying headlines are only one, though important issue. Consider how you would feel about such an intrusive "ally": German intelligence employee arrested on suspicion of spying for US on Bundestag NSA committee NSA whistleblowers testify in Bundestag inquiry, disclose ‘totalitarian’ surveillance Germany NSA's main target, claims ex-staffer Irked by N.S.A., Germany Cancels Deal With Verizon German parliament drops US telecom firm Verizon over links to NSA spying NSA Turned Germany Into Its Largest Listening Post in Europe Report: NSA targeted German privacy activist NSA targets Tor administrators and people searching for privacy tools, reports claim The German constitution, as interpreted by the constitutional court, defines privacy as a basic human right. That the U.S. is so casually violating the basic human rights of all German citizens is met with utter disgust. Even the paid and trained Atlantic Council (a U.S. lobby) trolls in German news-site comments have problem defending this issue.
  • From recent talks and discussions in Germany I conclude that the U.S. is losing more and more support and sympathies. The admiration of earlier times has turned into disgust. While a lot of higher politicians and some journalists still cling to some (well paid) myth of U.S. friendship the party base in all political parties as well as the general public has changed its opinion. The NSA spying headlines are only one, though important issue. Consider how you would feel about such an intrusive "ally": German intelligence employee arrested on suspicion of spying for US on Bundestag NSA committee NSA whistleblowers testify in Bundestag inquiry, disclose ‘totalitarian’ surveillance Germany NSA's main target, claims ex-staffer Irked by N.S.A., Germany Cancels Deal With Verizon German parliament drops US telecom firm Verizon over links to NSA spying NSA Turned Germany Into Its Largest Listening Post in Europe Report: NSA targeted German privacy activist NSA targets Tor administrators and people searching for privacy tools, reports claim The German constitution, as interpreted by the constitutional court, defines privacy as a basic human right. That the U.S. is so casually violating the basic human rights of all German citizens is met with utter disgust. Even the paid and trained Atlantic Council (a U.S. lobby) trolls in German news-site comments have problem defending this issue.
  • But the NSA spying is not the only problem. The economic breakdown after 2008 clearly had its roots in the United States and is, in Germany, blamed on lax U.S. regulations. And while Germany itself pressed for a change in government in Ukraine the outbreak of violence, the bloody coup and the fighting in the east is considered as "Fuck the EU" U.S. intervention in European affairs. It may still take a decade or more but my sense is that the U.S.-German alliance in on its way to an unfriendly divorce. Something that 15 years ago seemed unthinkable.
Paul Merrell

NSA oversight dismissed as 'illusory' as anger intensifies in Europe and beyond | World... - 0 views

  • The Obama administration's international surveillance crisis deepened on Monday as representatives from a Latin American human rights panel told US diplomats that oversight of the programs was "illusory".Members of the Inter-American Commission on Human Rights, an arm of the Organization of American States, expressed frustration and dissatisfaction with the National Security Agency's mass surveillance of foreign nationals – something the agency argues is both central to its existence and necessary to prevent terrorism. "With a program of this scope, it's obvious that any form of control becomes illusory when there's hundreds of millions of communications that become monitored and surveilled," said Felipe Gonzales, a commissioner and Chilean national."This is of concern to us because maybe the Inter-American Committee on Human Rights may become a target as well of surveillance," said Rodrigo Escobar Gil, a commissioner and Colombian citizen.
  • Frank La Rue, the United Nations special rapporteur on the right to freedom of opinion and expression, told the commission that the right to privacy was "inextricably linked" to free expression. "What is not permissible from a human rights point of view is that those that hold political power or those that are in security agencies or, even less, those in intelligence agencies decide by themselves, for themselves, what the scope of these surveillance activities are, or who will be targeted, or who will be blank surveilled," La Rue said.While the US sent four representatives to the hearing, they offered no defence, rebuttal or elaboration about bulk surveillance, saying the October government shutdown prevented them from adequate preparation. "We are here to listen," said deputy permanent representative Lawrence Gumbiner, who pledged to submit written responses within 30 days.All 35 North, Central and South American nations are members of the commission. La Rue, originally from Guatemala and an independent expert appointed by the Human Rights Council, travels the world reporting on human rights concerns – often in countries with poor democratic standards.
  • The Obama administration has been fielding a week's worth of European outrage following media reports that the NSA had collected a similarly large volume of phone calls from France – which director of national intelligence James Clapper, who recently apologised for misleading the Senate about domestic spying, called "false" – and spying on German chancellor Angela Merkel's own cellphone, which US officials have effectively confessed to. Brazil and Mexico are also demanding answers from US intelligence officials, following reports about intrusive acts of espionage in their territory revealed by documents provided to journalists by former NSA contractor Edward Snowden. The White House has said it will provide some answers after the completion of an external review of its surveillance programs, scheduled to be completed before the end of the year. The Guardian reported on Thursday that the NSA has intercepted the communications of 35 world leaders.
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  • Spying on foreigners is the core mission of the NSA, one that it vigorously defends as appropriate, legal and unexceptional given the nature of global threats and widespread spycraft. Monday's hearing suggested that there are diplomatic consequences to bulk surveillance even if there may not be legal redress for non-Americans. Brazil has already shown a willingness to challenge Washington over bulk surveillance. President Dilma Rousseff postponed a September meeting with President Obama in protest, and denounced the spying during the UN general assembly shortly thereafter. Brazil is also teaming up with Germany at the UN on a general assembly resolution demanding an end to the mass surveillance. The commission's examination of the NSA's bulk surveillance activities suggested a potential southern front could open in the spy crisis just as the administration is attempting to calm down Europe.
  • International discomfort with NSA bulk surveillance is not the only spy challenge the Obama administration now confronts. Congressman James Sensenbrenner, the Wisconsin Republican and key author of the 2001 Patriot Act, is poised to introduce a bill this week that would prevent the NSA from collecting phone records on American citizens in bulk and without an individual warrant. The National Journal reported that Sensenbrenner's bill, which has a companion in the Senate, has attracted eight co-sponsors who either voted against or abstained on a July amendment in the House that would have defunded the domestic phone records bulk collection, a legislative gambit that came within seven votes of passage.Sensenbrenner's bill, like its Senate counterpart sponsored by Vermont Democrat Patrick Leahy, would not substantially restrict the NSA's foreign-focused surveillance, which is a traditional NSA activity. There is practically no congressional appetite, and no viable legislation, to limit the NSA from intercepting the communications of foreigners. An early sign about the course of potential surveillance reforms in the House of Representatives may come as early as Tuesday. The House intelligence committee, a hotbed of support for the NSA, will hold its first public hearing of the fall legislative calendar on proposed surveillance legislation. Its chairman, Mike Rogers of Michigan, has proposed requiring greater transparency on the NSA and the surveillance court that oversees it, but would largely leave the actual surveillance activities of the NSA, inside and outside the United States, untouched.
  • Alex Abdo, a lawyer with the ACLU, which requested the hearing at the Inter-American Commission on Human Rights, warned the human rights panel that the NSA could "target the foreign members of this commission when they travel abroad", as well as foreign dissidents of US-aligned governments; foreign lawyers for Guantánamo detainees; and other foreigners."If every country were to engage in surveillance as pervasive as the NSA, we would soon live in a state … with no refuge for the world's dissidents, journalists and human rights defenders," Abdo said.
Paul Merrell

U.S. spy chiefs face Congress amid spying rift with Europe | Reuters - 0 views

  • When top U.S. intelligence officials testified at a congressional hearing weeks ago, the public uproar was over the National Security Agency collecting the phone and email records of Americans. But when the NSA director and other spy chiefs appear at a House Intelligence Committee hearing on Tuesday it will be against a backdrop of angry European allies accusing the United States of spying on their leaders and citizens.
  • The most prominent target appears to have been German Chancellor Angela Merkel, whose mobile phone was allegedly tapped by the NSA.More than any previous disclosures from material given to journalists by former NSA contractor Edward Snowden, the reports of spying on close U.S. allies have forced the White House to promise reforms and even acknowledge that America's electronic surveillance may have gone too far."We recognize there needs to be additional constraints on how we gather and use intelligence," White House spokesman Jay Carney said on Monday.U.S. Senator Dianne Feinstein, who chairs the Senate's intelligence committee, joined the ranks of critics on Monday, expressing outrage at U.S. intelligence collection on allies, and pique that her committee was not informed."With respect to NSA collection of intelligence on leaders of U.S. allies - including France, Spain, Mexico and Germany -let me state unequivocally: I am totally opposed," said Feinstein, who appeared to confirm U.S. spying on Merkel's communications since 2002.
  • NSA Director General Keith Alexander, NSA Deputy Director Chris Inglis, Director of National Intelligence James Clapper and Deputy Attorney General James Cole will testify at an open hearing of the House Intelligence Committee at 1:30 p.m. (1730 GMT) on Tuesday.Their testimony will cover NSA programs and potential changes to the Foreign Intelligence Surveillance Act, which regulates electronic eavesdropping.
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    Two major developments, likely not isolated from each other: [i] Sen. Feinstein says the Senate oversight committee was not informed of spying on world leaders and moves into the NSA reform camp; [ii] the WhiteHouse falls back to a position calling for additional restraints on NSA. These two events are likely akin to that of rats escaping a sinking ship. Meanwhile, both the head of the NSA and his top deputy are to resign in the next few months, supposedly voluntarily. http://www.upi.com/Top_News/US/2013/10/17/NSA-chief-Gen-Keith-Alexander-to-retire/UPI-91531381982460/ (The "voluntarily" part ignores that high officials who embarrass their superiors are often given their choice between resigning or being fired.) The retirement announcement (notably unattributed) followed only a week after a report in Foreign Affairs that the NSA leaders felt that they had been left hung out to dry by the Obama Administration. http://www.foreignpolicy.com/articles/2013/10/10/nsa_veterans_the_white_house_is_hanging_us_out_to_dry  So there is reason to suspect that the resignations were the direct result of their criticism of Obama, sourced only two four unidentified high NSA officials. The bottom line: we have finally passed the tipping point: NSA spying will be curbed. The only remaining issues: in what manner and to what extent?      
Paul Merrell

WA State Bill Proposes Criminalizing Help to NSA, Turning Off Resources to Yakima Facil... - 0 views

  • The state level campaign to turn off power and electricity to the NSA got a big boost Wednesday. In a bipartisan effort, Washington became first state with a physical NSA location to consider the Fourth Amendment Protection Act, designed to make life extremely difficult for the massive spy agency. Rep. David Taylor (R-Moxee) and Rep Rep. Luis Moscoso (D- Mountlake Terrace) introduced HB2272 late Tuesday night. Based on model language drafted by the OffNow coalition, it would make it the policy of Washington “to refuse material support, participation, or assistance to any federal agency which claims the power, or with any federal law, rule, regulation, or order which purports to authorize, the collection of electronic data or metadata of any person pursuant to any action not based on a warrant.” Practically speaking, the bill prohibits state and local agencies from providing any material support to the NSA within their jurisdiction. This includes barring government-owned utilities from providing water and electricity. It makes information gathered without a warrant by the NSA and shared with law enforcement inadmissible in state court. It blocks public universities from serving as NSA research facilities or recruiting grounds. And it disincentivizes corporations attempting to fill needs not met in the absence of state cooperation.
  • The state level campaign to turn off power and electricity to the NSA got a big boost Wednesday. In a bipartisan effort, Washington became first state with a physical NSA location to consider the Fourth Amendment Protection Act, designed to make life extremely difficult for the massive spy agency. Rep. David Taylor (R-Moxee) and Rep Rep. Luis Moscoso (D- Mountlake Terrace) introduced HB2272 late Tuesday night. Based on model language drafted by the OffNow coalition, it would make it the policy of Washington “to refuse material support, participation, or assistance to any federal agency which claims the power, or with any federal law, rule, regulation, or order which purports to authorize, the collection of electronic data or metadata of any person pursuant to any action not based on a warrant.” Practically speaking, the bill prohibits state and local agencies from providing any material support to the NSA within their jurisdiction. This includes barring government-owned utilities from providing water and electricity. It makes information gathered without a warrant by the NSA and shared with law enforcement inadmissible in state court. It blocks public universities from serving as NSA research facilities or recruiting grounds. And it disincentivizes corporations attempting to fill needs not met in the absence of state cooperation.
  • Lawmakers in Oklahoma, California and Indiana have already introduced similar legislation, and a senator in Arizona has committed to running it there, but Washington counts as the first state with an actual NSA facility within its borders to consider the Fourth Amendment Protection Act. The NSA operates a listening center on the Army’s Yakima Training Center (YTC). The NSA facility is in Taylor’s district, and he said he cannot sit idly by while a secretive facility in his own backyard violate the rights of people everywhere. “We’re running the bill to provide protection against the ever increasing surveillance into the daily lives of our citizens,” he said. “Our Founding Fathers established a series of checks and balances in the Constitution. Given the federal government’s utter failure to address the people’s concerns, it’s up to the states to stand for our citizens’ constitutional rights.”
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  • According to documents made public by the US Military, as of 2008, a company called PacifiCorp serves as the primary supplier of electric power, and Cascade Natural Gas Corporation supplies natural gas to YTC. The Kittitas Public Utility District, a function of the state of Washington, provides electric power for the MPRC and the Doris site, but no documentation has yet proven that it also provides electricity used directly by the NSA facility on site. And while YTC does provide a bulk of its own water, documents also show that some of it gets there by first passing through upstream dams owned and operated by the State. The Army report states, “YTC lies within three WAUs whose boundaries coincide with WRIAs, as defined by the State of Washington natural resource agencies.” WAU’s are Washington State Water Administration Units. WRIAs are Washington State Water Resource Inventory Areas A Washington company also has a strong link to the NSA. Cray Inc. builds supercomputers for the agency.
  • If the bill passes, it would set in motion actions to stop any state support of the Yakima center as long as it remains in the state, and could make Cray ineligible for any contracts with the state or its political subdivisions. Three public universities in Washington join 166 schools nationwide partnering with the NSA. Taylor’s bill would address these schools’ status as NSA “Centers of Academic Excellence,” and would bar any new partnerships with other state colleges or universities. Tenth Amendment Center national communications director Mike Maharrey says the bills prohibition against using unconstitutionally gathered data in state court would probably have the most immediate impact. In fact, lawmakers in Kansas and Missouri will consider bills simply addressing this kind of data sharing.
  • “We know the NSA shares data with state and local law enforcement. We know from a Reuters report that most of this shared data has absolutely nothing to do with national security issues. This bill would make that information inadmissible in state court,” he said. “This data sharing shoves a dagger into the heart of the Fourth Amendment. This bill would stop that from happening. This is a no-brainer. Every state should do it.” Maharrey said he expects at least three more states to introduce the act within the next few weeks. “This idea is catching fire,” he said. “And why wouldn’t it? We have an out of control agency spying on virtually everybody in the world. We have a president and a Congress that appears poised to maybe put a band aid on it. Americans are realizing if we are going to slow down the NSA, we are going to have to take a different approach. This is it.”
Paul Merrell

NSA spied on Indian embassy and UN mission, Edward Snowden files reveal | World news | ... - 0 views

  • The US National Security Agency may have accessed computers within the Indian embassy in Washington and mission at the United Nations in New York as part of a huge clandestine effort to mine electronic data held by its south Asian ally.Documents released by the US whistleblower Edward Snowden also reveal the extent and aggressive nature of other NSA datamining exercises targeting India as recently as March of this year.The latest revelations – published in the Hindu newspaper – came as Manmohan Singh, the Indian prime minister, flew to Europe on his way to the US, where he will meet President Barack Obama.The NSA operation targeting India used two datamining tools, Boundless Informant and Prism, a system allowing the agency easy access to the personal information of non-US nationals from the databases of some of the world's biggest tech companies, including Apple, Google, Microsoft and Yahoo.
  • The largest amount of intelligence was gathered from Iran, with more than 14bn reports in that period, followed by 13.5bn from Pakistan. Jordan, one of America's closest Arab allies, came third with 12.7bn, Egypt fourth with 7.6bn and India fifth with 6.3bn.
  • According to one document obtained by the Hindu, the US agency used the Prism programme to gather information on India's domestic politics and the country's strategic and commercial interests, specifically categories designated as nuclear, space and politics.
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  • A further NSA document obtained by the Hindu suggests the agency selected the office of India's mission at the UN in New York and the country's Washington embassy as "location targets" where records of Internet traffic, emails, telephone and office conversations – and even official documents stored digitally – could potentially be accessed after programs had been clandestinely inserted into computers.In March 2013, the NSA collected 6.3bn pieces of information from internet networks in India and 6.2bn pieces of information from the country's telephone networks during the same period, the Hindu said.After the Guardian reported in June that Pm program allowed the NSA "to obtain targeted communications without having to request them from the service providers and without having to obtain individual court orders", both US and Indian officials claimed no content was being taken from the country's networks and that the programs were intended to aid "counter-terrorism".
  • A home ministry official told the newspaper the government had been "rattled" to discover the extent of the the programme's interest in India. "It's not just violation of our sovereignty, it's a complete intrusion into our decision-making process," the official said.
  • The Hindu argued that "the targeting of India's politics and space programme by the NSA busts the myth of close strategic partnership between India and US", pointing out that the other countries targeted in the same way as India "are generally seen as adversarial" by Washington.
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    An important bit of proof that NSA digital surveillance involves far more than counter-terrorism. 
Paul Merrell

NSA phone surveillance program likely unconstitutional, federal judge rules | World new... - 0 views

  • A federal judge in Washington ruled on Monday that the bulk collection of Americans’ telephone records by the National Security Agency is likely to violate the US constitution, in the most significant legal setback for the agency since the publication of the first surveillance disclosures by the whistleblower Edward Snowden. Judge Richard Leon declared that the mass collection of metadata probably violates the fourth amendment, which prohibits unreasonable searches and seizures, and was "almost Orwellian" in its scope. In a judgment replete with literary swipes against the NSA, he said James Madison, the architect of the US constitution, would be "aghast" at the scope of the agency’s collection of Americans' communications data. The ruling, by the US district court for the District of Columbia, is a blow to the Obama administration, and sets up a legal battle that will drag on for months, almost certainly destined to end up in the supreme court. It was welcomed by campaigners pressing to rein in the NSA, and by Snowden, who issued a rare public statement saying it had vindicated his disclosures. It is also likely to influence other legal challenges to the NSA, currently working their way through federal courts.
  • In Monday’s ruling, the judge concluded that the pair's constitutional challenge was likely to be successful. In what was the only comfort to the NSA in a stinging judgment, Leon put the ruling on hold, pending an appeal by the government. Leon expressed doubt about the central rationale for the program cited by the NSA: that it is necessary for preventing terrorist attacks. “The government does not cite a single case in which analysis of the NSA’s bulk metadata collection actually stopped an imminent terrorist attack,” he wrote.
  • Leon’s opinion contained stern and repeated warnings that he was inclined to rule that the metadata collection performed by the NSA – and defended vigorously by the NSA director Keith Alexander on CBS on Sunday night – was unconstitutional. “Plaintiffs have a substantial likelihood of showing that their privacy interests outweigh the government’s interest in collecting and analysing bulk telephony metadata and therefore the NSA’s bulk collection program is indeed an unreasonable search under the fourth amendment,” he wrote. Leon said that the mass collection of phone metadata, revealed by the Guardian in June, was "indiscriminatory" and "arbitrary" in its scope. "The almost-Orwellian technology that enables the government to store and analyze the phone metadata of every telephone user in the United States is unlike anything that could have been conceived in 1979," he wrote, referring to the year in which the US supreme court ruled on a fourth amendment case upon which the NSA now relies to justify the bulk records program.
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  • In a statement, Snowden said the ruling justified his disclosures. “I acted on my belief that the NSA's mass surveillance programs would not withstand a constitutional challenge, and that the American public deserved a chance to see these issues determined by open courts," he said in comments released through Glenn Greenwald, the former Guardian journalist who received leaked documents from Snowden. "Today, a secret program authorised by a secret court was, when exposed to the light of day, found to violate Americans’ rights. It is the first of many.”
  • In his ruling, Judge Leon expressly rejected the government’s claim that the 1979 supreme court case, Smith v Maryland, which the NSA and the Obama administration often cite to argue that there is no reasonable expectation of privacy over metadata, applies in the NSA’s bulk-metadata collection. The mass surveillance program differs so much from the one-time request dealt with by the 1979 case that it was of “little value” in assessing whether the metadata dragnet constitutes a fourth amendment search.
  • In a decision likely to influence other federal courts hearing similar arguments from the ACLU, Leon wrote that the Guardian’s disclosure of the NSA’s bulk telephone records collection means that citizens now have standing to challenge it in court, since they can demonstrate for the first time that the government is collecting their phone data.
  • Leon also struck a blow for judicial review of government surveillance practices even when Congress explicitly restricts the ability of citizens to sue for relief. “While Congress has great latitude to create statutory schemes like Fisa,” he wrote, referring to the seminal 1978 surveillance law, “it may not hang a cloak of secrecy over the constitution.”
  • In his ruling on Monday, Judge Leon predicted the process would take six months. He urged the government to take that time to prepare for an eventual defeat. “I fully expect that during the appellate process, which will consume at least the next six months, the government will take whatever steps necessary to prepare itself to comply with this order when, and if, it is upheld,” wrote Leon in his opinion. “Suffice it to say, requesting further time to comply with this order months from now will not be well received and could result in collateral sanctions.”
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    This is the case I thought was the weakest because of poor drafting in the complaint. The judge noted those issues in dismissing the plaintiffs' claims under the Administrative Procedures Act, but picked his way through what remained to find sufficient allegations to support the 4th Amendment challenge. Because he ruled for the plaintiffs on the 4th Amendment count, the judge did not reach the plaintiffs' arguments under the First and Fifth Amendments. This case is about cellphone call metadata, which the FISA Court has been ordering cell phone companies to provide every day, with the orders updated every 90 days. The judge's 68-page opinion is at https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2013cv0881-40 (cleaner copy than the Guardian's, which was apparently faxed). Notably, the judge, Richard Leon, is a Bush II appointee and one of the plaintiffs is a prominent conservative civil libertarian lawyer. The other plaintiff is the father of an NSA cryptologist who worked closely with SEAL Team 6 and was killed along with members of that team when their helicopter crashed in Afghanistan. I'll add some more in a comment. But digital privacy is not yet dead.
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    Unfortunately, DRM is not dead yet either and the court's PDF file is locked. No easy copying of its content. If you want to jump directly to the discussion of 4th Amendment issues, go to page 35. That way, you can skip past all the dreary discussion of the Administrative Procedures Act claim and you won't miss much that's memorable. In ruling on the plaintiffs' standing to raise the 4th Amendment claim, Judge Leon postulated two possible search issues: [i] the bulk daily collection of metadata and its retention in the database for five years; and [ii] the analysis of that data through the NSA's querying process. The judge had no difficulty with the first issue; it definitely qualifies as a search. But the judge rejected the plaintiffs' argument on the second type (which was lame), demonstrating that at least one federal judge understands how computers work. The government's filings indicated that a "seed" telephone number or other identifier is used as the query string. Judge Leon figured out for himself from this fact that the NSA of necessity had to compare that number or identifier to every number or identifier in its database looking for a match. The judge concluded that the plaintiffs' metadata --- indeed everyone's metadata --- had to be searched for comparison purposes *every* time the NSA analysts ran any query against the database. See his incisive discussion at pp. 39-41. So having established that two searches were involved, one every time the NSA queried the database, the judge moved on to the next question, whether "the plaintiffs had a reasonable expectation of privacy that is violated when the Government indiscriminately collects their telephony metadata along with the metadata of hundreds of millions of other citizens without any particularized suspicion of wrongdoing, retains that metadata for five years, and then queries, analyzes, and investigates that data without prior judicial approval of the investigative targets." pg. 43. More later
Paul Merrell

John Kerry admits: some US surveillance has gone too far | World news | theguardian.com - 0 views

  • John Kerry, the US secretary of state, conceded on Thursday that some of the country's surveillance activities had gone too far, saying that certain practices had occurred "on autopilot" without the knowledge of senior officials in the Obama administration.In the most stark comments yet by a senior administration official, Kerry promised that a previously announced review of surveillance practices would be thorough and that some activities would end altogether."The president and I have learned of some things that have been happening in many ways on an automatic pilot, because the technology is there and the ability is there," he told a conference in London via video link."In some cases, some of these actions have reached too far and we are going to try to make sure it doesn't happen in the future."
  • In recent days, the Obama administration has put some distance between it and the National Security Agency (NSA). Kerry's comments are a reflection in particular of a concern about the diplomatic fallout from the revelation that the US monitored the cellphone of the German chancellor, Angela Merkel.The tactic has irritated senior intelligence officials. On Thursday evening, the director of the NSA, General Keith Alexander, blamed US diplomats for requests to place foreign leaders under surveillance.During a pointed exchange with a former US ambassador to Romania, James Carew Rosapepe, Alexander said: "We, the intelligence agencies, don't come up with the requirements. The policy-makers come up with the requirements."He added: "One of those groups would have been, let me think, hold on, oh: ambassadors."
  • Alexander said that the NSA collected information when it was asked by policy officials to discover the "leadership intentions" of foreign countries. "If you want to know leadership intentions, these are the issues," he said at a discussion hosted by the Baltimore Council on Foreign Relations.Earlier in Washington, the debate continued about whether further legal constraints should be placed on the NSA. The Senate intelligence committee approved a bill that placed largely cosmetic restrictions on the National Security Agency's domestic surveillance programme.The bill, sponsored by committee chairwoman Dianne Feinstein, a California Democrat, allows the NSA continue to collect phone metadata of millions of Americans for renewable 90-day periods, but orders it to be more transparent about the practice.
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  • The bill, which is competing with more restrictive measures from other committees, now moves forward to a full Senate vote. The stage is now set for a showdown with the USA Freedom Act, a bipartisan bill that would prohibit bulk collection of Americans' telephone records.Senator Mark Udall, a Democratic member of the Senate intelligence committee and a supporter of NSA reform, said it did not go far enough."The NSA's invasive surveillance of Americans' private information does not respect our constitutional values and needs fundamental reform, not incidental changes," he said.
  • In a separate development on Thursday, a group of technology giants called for substantial reforms to the US government's surveillance programmes. The companies were furious about revelations this week – the latest to emerge from documents leaked by the former NSA contractor Edward Snowden – that the agency had intercepted the cables that link the worldwide data centres belonging to Google and Yahoo.It was also reported that Obama had ordered the NSA to stop eavesdropping on the headquarters of the International Monetary Fund (IMF) and World Bank. Reuters cited a US official as saying the president had ordered the halt in the past few weeks.The NSA's surveillance of the IMF and World Bank has not previously been disclosed.
  • In response to Reuters inquiries, a senior Obama administration official said, "The United States is not conducting electronic surveillance targeting the headquarters of the World Bank or IMF in Washington." The Obama administration official, who spoke on condition of anonymity, did not address whether the NSA had eavesdropped on the two entities in the past.Kerry, in his comments to a conference organised by the Open Government Partnership, acknowledged that trust needed to be restored. "There is an effort to try to gather information, yes, in same cases inappropriately, and the president is now doing a thorough review, in order that nobody will have a sense of abuse," he said.Despte the cracks between the administration and the spy community, Kerry was careful to defended the motives of US intelligence agencies, insisting no "innocent people" were being abused and saying surveillance by several countries had prevented many terrorist plots.
  • A German MP said he met Snowden in Moscow on Thursday, and said the NSA whistelblower was prepared in principle to help Germany investigate allegations of surveillance by US intelligence.Hans-Christian Stroebele, a lawmaker with Germany's opposition Greens and a prominent critic of the NSA's alleged actions, told ARD television that Snowden "made clear he knows a great deal."He said Snowden would be prepared to travel to Germany and testify, "but the circumstances would have to be cleared up".
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    Looks like maybe Snowden is now a hero in Germany and may be allowed to travel there. Meanwhile, the Obama Administration rats continue to desert the sinking NSA ship, but Diane Feinstein fights on to preserve mass surveillance. 
Paul Merrell

Fisa court documents reveal extent of NSA disregard for privacy restrictions | World ne... - 0 views

  • Newly declassified court documents indicate that the National Security Agency shared its trove of American bulk email and internet data with other government agencies in violation of specific court-ordered procedures to protect Americans’ privacy. The dissemination of the sensitive data transgressed both the NSA’s affirmations to the secret surveillance court about the extent of the access it provided, and prompted incensed Fisa court judges to question both the NSA’s truthfulness and the value of the now-cancelled program to counter-terrorism. While the NSA over the past several months has portrayed its previous violations of Fisa court orders as “technical” violations or inadvertent errors, the oversharing of internet data is described in the documents as apparent widespread and unexplained procedural violations. “NSA’s record of compliance with these rules has been poor,” wrote judge John Bates in an opinion released on Monday night in which the date is redacted.
  • “Most notably, NSA generally disregarded the special rules for disseminating United States person information outside of NSA until it was ordered to report such disseminations and to certify to the [Fisa court] that the required approval had been obtained.” In addition to improperly permitting access to the email and internet data – intended to include information such as the “to” “from” and “BCC” lines of an email – Bates found that the NSA engaged in “systemic overcollection”, suggesting that content of Americans’ communications was collected as well.
  • The court had required the NSA to comply with a longstanding internal procedure for protecting Americans’ sensitive information prior to sharing the data internally within NSA, known as United States Signals Intelligence Directive 18 (USSID 18) and also declassified on Monday night; and additionally required a senior NSA official to determine that any material shared outside the powerful surveillance agency was related to counter-terrorism. Yet in a separate Fisa court document, the current presiding judge, Reggie Walton, blasted the government’s secret declaration that it followed USSID 18 “rather than specifically requiring that the narrower dissemination provision set forth in the Court’s orders in this matter be strictly adhered to”. Walton wrote: “The court understands this to mean that the NSA likely has disseminated US person information derived from the [email and internet bulk] metadata outside NSA without a prior determination from the NSA official designated in the court’s orders that the information is related to counter-terrorism information and is necessary to understand the counter-terrorism information or assess its importance.”
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  • In an opinion apparently written in June 2009, Walton said the court was “gravely concerned” that “NSA analysts, cleared and otherwise, have generally not adhered to the dissemination restrictions proposed by the government, repeatedly relied on by the court in authorizing the [email and internet bulk] metadata, and incorporated into the court’s orders in this matter [redacted] as binding on NSA.” Walton said the NSA’s legal team had failed to satisfy the training requirements that NSA frequently points to in congressional testimony as demonstrating its scrupulousness. Walton added that he was “seriously concerned” by the placement of Americans’ email and internet metadata into “databases accessible by outside agencies, which, as the government has acknowledged, violates not only the court’s orders, but also NSA’s minimization and dissemination procedures as set forth in USSID 18.”
  • In 2011, Bates wrote that the “volume and nature” of the NSA’s bulk collection on foreign internet content was “fundamentally different from what the court had been led to believe”. Yet the documents disclosed Monday night, thanks to a transparency lawsuit, show that Bates and Walton permitted the surveillance of Americans’ bulk email and internet metadata to continue under additional restrictions, out of concern for the ongoing terrorism threat.
  • Elizabeth Goitien of the Brennan Center for Justice at New York University said that the declassified opinions raise disturbing questions about the NSA’s truthfulness. “Either the NSA is really trying to comply with the court’s orders and is absolutely incapable of doing so, in which case it’s terrifying that they’re performing this surveillance, or they’re not really trying to comply,” Goitien said. “Neither of those explanations is particularly comforting.”
Paul Merrell

First Unitarian Church of Los Angeles v. NSA | Electronic Frontier Foundation - 0 views

  • Twenty-two organizations including Unitarian church groups, gun ownership advocates, and a broad coalition of membership and political advocacy organizations filed suit against the National Security Agency for violating their First Amendment right of association by illegally collecting their call records. The coalition is represented by EFF. At the heart of First Unitarian Church of Los Angeles v. NSA is the bulk telephone records collection program that was confirmed by the publication of an order from the Foreign Intelligence Surveillance Court (FISC) in June of 2013. The Director of National Intelligence (DNI) further confirmed that this formerly secret document was authentic, and part of a broader program to collect all major telecommunications customers’ call history. The order demands wholesale collection of every call made, the location of the phone, the time of the call, the duration of the call, and other “identifying information” for every phone and call for all customers of Verizon for a period of three months. Government officials further confirmed that this was just one of series of orders issued on a rolling basis since at least 2006. First Unitarian v. NSA argues that this spying violates the First Amendment, which protects the freedom to associate and express political views as a group.
  • Twenty-two organizations including Unitarian church groups, gun ownership advocates, and a broad coalition of membership and political advocacy organizations filed suit against the National Security Agency for violating their First Amendment right of association by illegally collecting their call records. The coalition is represented by EFF. At the heart of First Unitarian Church of Los Angeles v. NSA is the bulk telephone records collection program that was confirmed by the publication of an order from the Foreign Intelligence Surveillance Court (FISC) in June of 2013. The Director of National Intelligence (DNI) further confirmed that this formerly secret document was authentic, and part of a broader program to collect all major telecommunications customers’ call history. The order demands wholesale collection of every call made, the location of the phone, the time of the call, the duration of the call, and other “identifying information” for every phone and call for all customers of Verizon for a period of three months. Government officials further confirmed that this was just one of series of orders issued on a rolling basis since at least 2006. First Unitarian v. NSA argues that this spying violates the First Amendment, which protects the freedom to associate and express political views as a group.
  • The case challenges the mass telephone records collection that was confirmed by the FISA Order that was published on June 5, 2013 and confirmed by the Director of National Intelligence (DNI) on June 6, 2013. The DNI confirmed that the collection was “broad in scope” and conducted under the “business records” provision of the Foreign Intelligence Surveillance Act, also known as section 215 of the Patriot Act and 50 U.S.C. section 1861. The facts have long been part of EFF’s Jewel v. NSA case. The case does not include section 702 programs, which includes the recently made public and called the PRISM program or the fiber optic splitter program that is included (along with the telephone records program) in the Jewel v. NSA case. 
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  • Our goal is to highlight one of the most important ways that the government collection of telephone records is unconstitutional: it violates the First Amendment right of association. When the government gets access to the phone records of political and activist organizations and their members, it knows who is talking to whom, when, and for how long. This so-called “metadata,” especially when collected in bulk and aggregated, tracks the associations of these organizations. After all, if the government knows that you call the Unitarian Church or Calguns or People for the American Way or Students for Sensible Drug Policy regularly, it has a very good indication that you are a member and it certainly knows that you associate regularly. The law has long recognized that government access to associations can create a chilling effect—people are less likely to associate with organizations when they know the government is watching and when the government can track their associations. 
  • Twenty-two organizations including Unitarian church groups, gun ownership advocates, and a broad coalition of membership and political advocacy organizations filed suit against the National Security Agency for violating their First Amendment right of association by illegally collecting their call records. The coalition is represented by EFF. At the heart of First Unitarian Church of Los Angeles v. NSA is the bulk telephone records collection program that was confirmed by the publication of an order from the Foreign Intelligence Surveillance Court (FISC) in June of 2013. The Director of National Intelligence (DNI) further confirmed that this formerly secret document was authentic, and part of a broader program to collect all major telecommunications customers’ call history. The order demands wholesale collection of every call made, the location of the phone, the time of the call, the duration of the call, and other “identifying information” for every phone and call for all customers of Verizon for a period of three months. Government officials further confirmed that this was just one of series of orders issued on a rolling basis since at least 2006. First Unitarian v. NSA argues that this spying violates the First Amendment, which protects the freedom to associate and express political views as a group.
  • The First Amendment right of association is a well established doctrine that prevents the government “interfering with the right to peaceably assemble or prohibit the petition for a governmental redress of grievances.” The most famous case embracing it is a 1958 Supreme Court Case from the Civil Rights era called  NAACP v. Alabama. In that case the Supreme Court held that it would violate the First Amendment for the NAACP to have to turn over its membership lists in litigation. The right stems from the simple fact that the First Amendment protects the freedom to associate and express political views as a group. This constitutional protection is critical because, as the court noted “[e]ffective advocacy of both public and private points of view, particularly controversial ones, is undeniably enhanced by group association[.]” NAACP v. Alabama, 357 U.S. at 460. As another court noted: the Constitution protects freedom of association to encourage the “advancing ideas and airing grievances” Bates v. City of Little Rock, 361 U.S. 516, 522-23 (1960).
  • The collection and analysis of telephone records give the government a broad window into our associations. The First Amendment protects against this because, as the Supreme Court has recognized, “it may induce members to withdraw from the association and dissuade others from joining it because of fear of exposure of their beliefs shown through their associations and of the consequences of their exposure.” NAACP v. Alabama, 357 U.S. at 462-63. See also Bates, 361 U.S. at 523; Gibson v. Florida Legislative Investigation Comm., 372 U.S. 539 (1963).  Privacy in one’s associational ties is also closely linked to freedom of association: “Inviolability of privacy in group association may in many circumstances be indispensable to preservation of freedom of association, particularly where a group espouses dissident beliefs.” NAACP v. Alabama, 357 U.S. at 462. 
  • The Supreme Court has made clear that infringements on freedom of association may survive constitutional scrutiny only when they “serve compelling state interests, unrelated to the suppression of ideas, that cannot be achieved through means significantly less restrictive of associational freedoms.” Roberts v. United States Jaycees, 468 U.S. 609, 623 (1984); see also NAACP v. Button, 371 U.S. at 341; Knox v. SEIU, Local 1000, 132 S. Ct. 2277, 2291 (2012)  Here, the wholesale collection of telephone records of millions of innocent Americans’ communications records, and thereby collection of their associations, is massively overbroad, regardless of the government’s interest. Thus, the NSA spying program fails under the basic First Amendment tests that have been in place for over fifty years.
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    This case is related to EFF's earlier pending case, Jewel v. NSA and has been assigned to Judge Whyte, the same judge who ruled earlier in Jewel that the State Secrets Privilege does not apply to NSA's call metadata "haystack." The plaintiffs are 22 different groups who would make strange bedfellows indeed, except in opposition to government surveillance and repression. 
Paul Merrell

US websites should inform EU citizens about NSA surveillance, says report - 0 views

  • All existing data sharing agreements between Europe and the US should be revoked, and US web site providers should prominently inform European citizens that their data may be subject to government surveillance, according to the recommendations of a briefing report for the European Parliament. The report was produced in response to revelations about the US National Security Agency (NSA) snooping on internet traffic, and aims to highlight the subsequent effect on European Union (EU) citizens' rights.
  • The report warns that EU data protection authorities have failed to understand the “structural shift of data sovereignty implied by cloud computing”, and the associated risks to the rights of EU citizens. It suggests “a full industrial policy for development of an autonomous European cloud computing capacity” should be set up to reduce exposure of EU data to NSA surveillance that is undertaken by the use of US legislation that forces US-based cloud providers to provide access to data they hold.
  • To put pressure on the US government, the report recommends that US websites should ask EU citizens for their consent before gathering data that could be used by the NSA. “Prominent notices should be displayed by every US web site offering services in the EU to inform consent to collect data from EU citizens. The users should be made aware that the data may be subject to surveillance by the US government for any purpose which furthers US foreign policy,” it said. “A consent requirement will raise EU citizen awareness and favour growth of services solely within EU jurisdiction. This will thus have economic impact on US business and increase pressure on the US government to reach a settlement.”
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  • Other recommendations include the EU offering protection and rewards for whistleblowers, including “strong guarantees of immunity and asylum”. Such a move would be seen as a direct response to the plight of Edward Snowden, the former NSA analyst who leaked documents that revealed the extent of the NSA’s global internet surveillance programmes. The report also says that, “Encryption is futile to defend against NSA accessing data processed by US clouds,” and that there is “no technical solution to the problem”. It calls for the EU to press for changes to US law.
  • “It seems that the only solution which can be trusted to resolve the Prism affair must involve changes to the law of the US, and this should be the strategic objective of the EU,” it said. The report was produced for the European Parliament committee on civil liberties, justice and home affairs, and comes before the latest hearing of an inquiry into electronic mass surveillance of EU citizens, due to take place in Brussels on 24 September.
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    Yee-haw! E.U. sanctuary and rewards for NSA whistle-blowers. Mandatory warnings for customers of U.S. cloud services that their data may be turned over to the NSA. Pouring more gasoline on the NSA diplomatic fire. 
Paul Merrell

NSA Insiders Reveal What Went Wrong | Consortiumnews - 0 views

  • In a memo to President Obama, former National Security Agency insiders explain how NSA leaders botched intelligence collection and analysis before 9/11, covered up the mistakes, and violated the constitutional rights of the American people, all while wasting billions of dollars and misleading the public. January 7, 2014 MEMORANDUM FOR: The President FROM: Former NSA Senior Executives/Veteran Intelligence Professionals for Sanity (VIPS) SUBJECT: Input for Your Decisions on NSA
  • Signed/ William Binney, former Technical Director, World Geopolitical & Military Analysis; Co-founder of the SIGINT Automation Research Center. Thomas Drake, former Defense Intelligence Senior Executive Service, NSA Edward Loomis, former Chief, SIGINT Automation Research Center, NSA J. Kirk Wiebe, former Senior Analyst, SIGINT Automation Research Center, NSA PREPARED UNDER AUSPICES OF AD HOC STEERING GROUP, VETERAN INTELLIGENCE PROFESSIONALS FOR SANITY
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    Former NSA officials publish an open memorandum to Obama, seeking a meeting with him to explain how the NSA is drowning in data that it cannot effectively process, how more than $1 billion was wasted on a never-completed system to process it, and how a $3 million system that could and did process it effectively was shot down by former NSA Director Michael Hayden so he could award the contract for the much more expensive version to his buddies. And much, much more
Paul Merrell

Cut Off the NSA's Juice | Global Research - 0 views

  • The National Security Agency depends on huge computers that guzzle electricity in the service of the surveillance state. For the NSA’s top executives, maintaining a vast flow of juice to keep Big Brother nourished is essential — and any interference with that flow is unthinkable. But interference isn’t unthinkable. And in fact, it may be doable. Grassroots activists have begun to realize the potential to put the NSA on the defensive in nearly a dozen states where the agency is known to be running surveillance facilities, integral to its worldwide snoop operations. Organizers have begun to push for action by state legislatures to impede the electric, water and other services that sustain the NSA’s secretive outposts.
  • Those efforts are farthest along in the state of Washington, where a new bill in the legislature — the Fourth Amendment Protection Act — is a statutory nightmare for the NSA. The agency has a listening post in Yakima, in the south-central part of the state. The bill throws down a challenge to the NSA, seeking to block all state support for NSA activities violating the Fourth Amendment. For instance, that could mean a cutoff of electricity or water or other state-government services to the NSA site. And the measure also provides for withholding other forms of support, such as research and partnerships with state universities. Here’s the crux of the bill: “It is the policy of this state to refuse material support, participation, or assistance to any federal agency which claims the power, or with any federal law, rule, regulation, or order which purports to authorize, the collection of electronic data or metadata of any person pursuant to any action not based on a warrant that particularly describes the person, place, and thing to be searched or seized.” If the windup of that long sentence has a familiar ring, it should. The final dozen words are almost identical to key phrases in the Fourth Amendment of the U.S. Constitution.
  • In recent days, more than 15,000 people have signed a petition expressing support for the legislation. Launched by RootsAction.org, the petition is addressed to the bill’s two sponsors in the Washington legislature — Republican Rep. David Taylor, whose district includes the NSA facility in Yakima, and Democrat Luis Moscoso from the Seattle area. Meanwhile, a similar bill with the same title has just been introduced in the Tennessee legislature — taking aim at the NSA’s center based in Oak Ridge, Tenn. That NSA facility is a doozy: with several hundred scientists and computer specialists working to push supercomputers into new realms of mega-surveillance capacities. A new coalition, OffNow, is sharing information about model legislation. The group also points to known NSA locations in other states including Utah (in Bluffdale), Texas (San Antonio), Georgia (Augusta), Colorado (Aurora), Hawaii (Oahu) and West Virginia (Sugar Grove), along with the NSA’s massive headquarters at Fort Meade in Maryland. Grassroots action and legislative measures are also stirring in several of those states.
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  • “By working together to tackle the erosion of the Fourth Amendment presented by bulk data collection,” Kellegrew said, “people from across partisan divides are resurrecting the lost art of collaboration and in the process, rehabilitating the possibility of a functional American political dialogue denied to the people by dysfunction majority partisan hackery.” From another vantage point, this is an emerging faceoff between reliance on cynical violence and engagement in civic nonviolence.
  • Serving the warfare state and overall agendas for U.S. global dominance to the benefit of corporate elites, the NSA persists in doing violence to the Constitution’s civil-liberties amendments — chilling the First, smashing the Fourth and end-running the Fifth. Meanwhile, a nascent constellation of movements is striving to thwart the surveillance state, the shadowy companion of perpetual war. This is a struggle for power over what kind of future can be created for humanity. It’s time to stop giving juice to Big Brother.
Paul Merrell

Cover Story: How NSA Spied on Merkel Cell Phone from Berlin Embassy - SPIEGEL ONLINE - 0 views

  • According to SPIEGEL research, United States intelligence agencies have not only targeted Chancellor Angela Merkel's cellphone, but they have also used the American Embassy in Berlin as a listening station. The revelations now pose a serious threat to German-American relations.
  • Research by SPIEGEL reporters in Berlin and Washington, talks with intelligence officials and the evaluation of internal documents of the US' National Security Agency and other information, most of which comes from the archive of former NSA contractor Edward Snowden, lead to the conclusion that the US diplomatic mission in the German capital has not merely been promoting German-American friendship. On the contrary, it is a nest of espionage. From the roof of the embassy, a special unit of the CIA and NSA can apparently monitor a large part of cellphone communication in the government quarter. And there is evidence that agents based at Pariser Platz recently targeted the cellphone that Merkel uses the most. The NSA spying scandal has thus reached a new level, becoming a serious threat to the trans-Atlantic partnership. The mere suspicion that one of Merkel's cellphones was being monitored by the NSA has led in the past week to serious tensions between Berlin and Washington.
  • A "top secret" classified NSA document from the year 2010 shows that a unit known as the "Special Collection Service" (SCS) is operational in Berlin, among other locations. It is an elite corps run in concert by the US intelligence agencies NSA and CIA. The secret list reveals that its agents are active worldwide in around 80 locations, 19 of which are in Europe -- cities such as Paris, Madrid, Rome, Prague and Geneva. The SCS maintains two bases in Germany, one in Berlin and another in Frankfurt. That alone is unusual. But in addition, both German bases are equipped at the highest level and staffed with active personnel. The SCS teams predominantly work undercover in shielded areas of the American Embassy and Consulate, where they are officially accredited as diplomats and as such enjoy special privileges. Under diplomatic protection, they are able to look and listen unhindered. They just can't get caught.
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  • This would correspond to internal NSA documents seen by SPIEGEL. They show, for example, an SCS office in another US embassy -- a small windowless room full of cables with a work station of "signal processing racks" containing dozens of plug-in units for "signal analysis." On Friday, author and NSA expert James Bamford also visited SPIEGEL's Berlin bureau, which is located on Pariser Platz diagonally opposite the US Embassy. "To me, it looks like NSA eavesdropping equipment is hidden behind there," he said. "The covering seems to be made of the same material that the agency uses to shield larger systems." The Berlin-based security expert Andy Müller Maguhn was also consulted. "The location is ideal for intercepting mobile communications in Berlin's government district," he says, "be it technical surveillance of communication between cellphones and wireless cell towers or radio links that connect radio towers to the network."
  • Campbell refers to window-like indentations on the roof of the US Embassy. They are not glazed but rather veneered with "dielectric" material and are painted to blend into the surrounding masonry. This material is permeable even by weak radio signals. The interception technology is located behind these radio-transparent screens, says Campbell. The offices of SCS agents would most likely be located in the same windowless attic.
  • Wiretapping from an embassy is illegal in nearly every country. But that is precisely the task of the SCS, as is evidenced by another secret document. According to the document, the SCS operates its own sophisticated listening devices with which they can intercept virtually every popular method of communication: cellular signals, wireless networks and satellite communication. The necessary equipment is usually installed on the upper floors of the embassy buildings or on rooftops where the technology is covered with screens or Potemkin-like structures that protect it from prying eyes. That is apparently the case in Berlin, as well. SPIEGEL asked British investigative journalist Duncan Campbell to appraise the setup at the embassy. In 1976, Campbell uncovered the existence of the British intelligence service GCHQ. In his so-called "Echelon Report" in 1999, he described for the European Parliament the existence of the global surveillance network of the same name.
  • Apparently, SCS agents use the same technology all over the world. They can intercept cellphone signals while simultaneously locating people of interest. One antenna system used by the SCS is known by the affable code name "Einstein." When contacted by SPIEGEL, the NSA declined to comment on the matter. The SCS are careful to hide their technology, especially the large antennas on the roofs of embassies and consulates. If the equipment is discovered, explains a "top secret" set of classified internal guidelines, it "would cause serious harm to relations between the United States and a foreign government." According to the documents, SCS units can also intercept microwave and millimeter-wave signals. Some programs, such as one entitled "Birdwatcher," deal primarily with encrypted communications in foreign countries and the search for potential access points. Birdwatcher is controlled directly from SCS headquarters in Maryland.
  • With the growing importance of the Internet, the work of the SCS has changed. Some 80 branches offer "thousands of opportunities on the net" for web-based operations, according to an internal presentation. The organization is now able not only to intercept cellphone calls and satellite communication, but also to proceed against criminals or hackers. From some embassies, the Americans have planted sensors in communications equipment of the respective host countries that are triggered by selected terms.
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    A must-read article offering an in-depth, 3-page view of how badly the Snowden disclosures have poisoned trust between the U.S. and its NATO allies that are not favored members of the Five Eyes club. Details of NSA's surveillance operations in Germany and strong circumstantial evidence that Obama knew -- as recently as June 2013 -- of spy operations being conducted against hundreds of world leaders but denied it.  
Paul Merrell

Brazilian president Rousseff: US surveillance a 'breach of international law' | World n... - 0 views

  • Brazil's president, Dilma Rousseff, has launched a blistering attack on US espionage at the UN general assembly, accusing the NSA of violating international law by its indiscriminate collection of personal information of Brazilian citizens and economic espionage targeted on the country's strategic industries.Rousseff's angry speech was a direct challenge to President Barack Obama, who was waiting in the wings to deliver his own address to the UN general assembly, and represented the most serious diplomatic fallout to date from the revelations by former NSA contractor Edward Snowden.
  • Washington's efforts to smooth over Brazilian outrage over NSA espionage have so far been rebuffed by Rousseff, who has proposed that Brazil build its own internet infrastructure."Friendly governments and societies that seek to build a true strategic partnership, as in our case, cannot allow recurring illegal actions to take place as if they were normal. They are unacceptable," she said."The arguments that the illegal interception of information and data aims at protecting nations against terrorism cannot be sustained. Brazil, Mr President, knows how to protect itself. We reject, fight and do not harbour terrorist groups," Rousseff said."As many other Latin Americans, I fought against authoritarianism and censorship and I cannot but defend, in an uncompromising fashion, the right to privacy of individuals and the sovereignty of my country," the Brazilian president said. She was imprisoned and tortured for her role in a guerilla movement opposed to Brazil's military dictatorship in the 1970s."In the absence of the right to privacy, there can be no true freedom of expression and opinion, and therefore no effective democracy. In the absence of the respect for sovereignty, there is no basis for the relationship among nations."
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    We should never lose sight of the fact that every time the NSA intercepts a message from a foreign nation, it violates the civil and criminal laws of that nation. The NSA and its staff are serial criminals, not patriots. The Balkanization of the Internet into a non-net of local area networks to protect nations' citizen rights from NSA voyeurs is all too predictable. This will be their legacy unless we can stop them.
Paul Merrell

Dr. Joseph Bonneau Wins NSA Award, Criticizes NSA | Electronic Frontier Foundation - 0 views

  • "Like many in the community of cryptographers and security engineers, I’m sad that we haven’t better informed the public about the inherent dangers and questionable utility of mass surveillance. And like many American citizens I’m ashamed we’ve let our politicians sneak the country down this path." -- Bonneau On July 18th, Dr. Joseph Bonneau, a software engineer at Google, received the National Security Agency’s award for the best scientific cybersecurity paper.  According to its stated mission, the competition was created to help broaden the scientific foundations of cybersecurity needed in the development of systems that are resilient to cyber attacks. But Bonneau was deeply conflicted about receiving the award, noting on his blog that even though he was flattered to receive the award he didn’t condone the mass surveillance programs run by the NSA:  “Simply put, I don’t think a free society is compatible with an organisation like the NSA in its current form." Bonneau elaborated on his feelings in a Twitter discussion as well as in an interview with Animal during which he said: "I’d rather have it [the NSA] abolished than persist in its current form. I think there’s a question about whether it’s possible to reform the NSA into something that’s more reasonable."
  • Engineers and researchers like Bonneau have a unique and important role to play in fighting back against NSA oversteps. As Michael Hirsh noted in the Atlantic last month, "The government's massive data collection and surveillance system was largely built not by professional spies or Washington bureaucrats but by Silicon Valley and private defense contractors."  As Hirsh explained, tech companies have contributed enormously to wiring up Big Brother -- companies like Palantir Technologies, Eagle Alliance (of Computer Sciences Corp. and Northrup Grumman) and Booz Allen Hamilton. The only way the government gets to spy on everyone is when people who are intelligent and innovative enough to build scalable surveillance technologies decide to help them.
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    A courageous stand.
Paul Merrell

NSA program stopped no terror attacks, says White House panel member - Investigations - 0 views

  • A member of the White House review panel on NSA surveillance said he was “absolutely” surprised when he discovered the agency’s lack of evidence that the bulk collection of telephone call records had thwarted any terrorist attacks.
  • “It was, ‘Huh, hello? What are we doing here?’” said Geoffrey Stone, a University of Chicago law professor, in an interview with NBC News. “The results were very thin.”While Stone said the mass collection of telephone call records was a “logical program” from the NSA’s perspective, one question the White House panel was seeking to answer was whether it had actually stopped “any [terror attacks] that might have been really big.” Advertise | AdChoices “We found none,” said Stone. Under the NSA program, first revealed by ex-contractor Edward Snowden, the agency collects in bulk the records of the time and duration of phone calls made by persons inside the United States.Stone was one of five members of the White House review panel – and the only one without any intelligence community experience – that this week produced a sweeping report recommending that the NSA’s collection of phone call records be terminated to protect Americans’ privacy rights.The panel made that recommendation after concluding that the program was “not essential in preventing attacks.”“That was stunning. That was the ballgame,” said one congressional intelligence official, who asked not to be publicly identified. “It flies in the face of everything that they have tossed at us.”
  • The conclusions of the panel’s reports were at direct odds with public statements by President Barack Obama and U.S. intelligence officials. “Lives have been saved,” Obama told reporters last June, referring to the bulk collection program and another program that intercepts communications overseas. “We know of at least 50 threats that have been averted because of this information.”
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  • But in one little-noticed footnote in its report, the White House panel said the telephone records collection program – known as Section 215, based on the provision of the U.S. Patriot Act that provided the legal basis for it – had made “only a modest contribution to the nation’s security.” The report said that “there has been no instance in which NSA could say with confidence that the outcome [of a terror investigation] would have been any different” without the program. Advertise | AdChoices The panel’s findings echoed that of U.S. Judge Richard Leon, who in a ruling this week found the bulk collection program to be unconstitutional. Leon said that government officials were unable to cite “a single instance in which analysis of the NSA’s bulk collection metadata collection actually stopped an imminent attack, or otherwise aided the Government in achieving any objective that was time-sensitive in nature.” 
  • Stone declined to comment on the accuracy of public statements by U.S. intelligence officials about the telephone collection program, but said that when they referred to successes they seemed to be mixing the results of domestic metadata collection with the intelligence derived from the separate, and less controversial, NSA program, known as 702, to intercept communications overseas.The comparison between 702 overseas interceptions and 215 bulk metadata collection was “night and day,” said Stone. “With 702, the record is very impressive. It’s no doubt the nation is safer and spared potential attacks because of 702. There was nothing like that for 215. We asked the question and they [the NSA] gave us the data. They were very straight about it.”He also said one reason the telephone records program is not effective is because, contrary to the claims of critics, it actually does not collect a record of every American’s phone call. Although the NSA does collect metadata from major telecommunications carriers such as Verizon and AT&T, there are many smaller carriers from which it collects nothing. Asked if the NSA was collecting the records of 75 percent of phone calls, an estimate that has been used in briefings to Congress , Stone said the real number was classified but “not anything close to that” and far lower.
  • When panel members asked NSA officials why they didn’t expand the program to include smaller carriers, the answer they gave was “money,” Stone said. “They were setting financial priorities,” said Stone, and that was “really revealing” about how useful the bulk collection of telephone calls really was.An NSA spokeswoman declined to comment on any aspect of the panel’s report, saying the agency was deferring to the White House. Asked Wednesday about the surveillance panel’s conclusions about telephone record collection, White House press secretary Jay Carney said that “the president does still believe and knows that this program is an important piece of the overall efforts that we engage in to combat threats against the lives of American citizens and threats to our overall national security.”
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    Obama still believes "this program is an important piece of the overall efforts?" Whew! 
Paul Merrell

Testosterone Pit - Home - NSA Revelations Kill IBM Hardware Sales in China - 0 views

  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
  • The explanation is more obvious. In mid-August, an anonymous source told the Shanghai Securities News, a branch of the state-owned Xinhua News Agency, which reports directly to the Propaganda and Public Information Departments of the Communist Party, that IBM, along with Oracle and EMC, have become targets of the Ministry of Public Security and the cabinet-level Development Research Centre due to the Snowden revelations. “At present, thanks to their technological superiority, many of our core information technology systems are basically dominated by foreign hardware and software firms, but the Prism scandal implies security problems,” the source said, according to Reuters. So the government would launch an investigation into these security problems, the source said. Absolute stonewalling ensued. IBM told Reuters that it was unable to comment. Oracle and EMC weren’t available for comment. The Ministry of Public Security refused to comment. The Development Research Centre knew nothing of any such investigation. The Ministry of Industry and Information Technology “could not confirm anything because of the matter’s sensitivity.”
  • I’d warned about its impact at the time [read.... US Tech Companies Raked Over The Coals In China]. Snowden’s revelations started hitting in May. Not much later, the Chinese security apparatus must have alerted IT buyers in government agencies, state-owned enterprises, and major independent corporations to turn off the order pipeline for sensitive products until this is sorted out. As Mr. Loughridge’s efforts have shown, it’s hard to explain any other way that hardware sales suddenly collapsed by “40%, 50%” in China, where they’d boomed until then. This is the first quantitative indication of the price Corporate America has to pay for gorging at the big trough of the US Intelligence Community, and particularly the NSA with its endlessly ballooning budget. For once, there is a price to be paid, if only temporarily, for helping build a perfect, seamless, borderless surveillance society. The companies will deny it. At the same time, they’ll be looking for solutions. China, Russia, and Brazil are too important to just get kicked out of – and other countries might follow suit. In September, IBM announced that it would throw another billion at Linux, the open-source operating system, to run its Power System servers – the same that China had stopped buying. It seems IBM was trying to make hay of the NSA revelations that had tangled up American operating system makers. Linux, free of NSA influence, would be a huge competitive advantage for IBM. Or so it would seem. Read.... The Other Reason Why IBM Throws A Billion At Linux (With NSA- Designed Backdoor)
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  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
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    It's starting to look as though the price of NSA collaboration is bankruptcy. Look for Big Blue to attempt to recover the loss from the U.S. government via some juicy deal.
Paul Merrell

Officials' defenses of NSA phone program may be unraveling - The Washington Post - 0 views

  • From the moment the government’s massive database of citizens’ call records was exposed this year, U.S. officials have clung to two main lines of defense: The secret surveillance program was constitutional and critical to keeping the nation safe. But six months into the controversy triggered by former NSA contractor Edward Snowden, the viability of those claims is no longer clear.
  • From the moment the government’s massive database of citizens’ call records was exposed this year, U.S. officials have clung to two main lines of defense: The secret surveillance program was constitutional and critical to keeping the nation safe. But six months into the controversy triggered by former NSA contractor Edward Snowden, the viability of those claims is no longer clear.
  • In a three-day span, those rationales were upended by a federal judge who declared that the program was probably unconstitutional and the release of a report by a White House panel utterly unconvinced that stockpiling such data had played any meaningful role in preventing terrorist attacks.Either of those developments would have been enough to ratchet up the pressure on President Obama, who must decide whether to stand behind the sweeping collection or dismantle it and risk blame if there is a terrorist attack.Beyond that dilemma for the president, the decision by U.S. District Judge Richard J. Leon and the recommendations from the review panel shifted the footing of almost every major player in the surveillance debate.NSA officials, who rarely miss a chance to cite Snowden’s status as a fugitive from the law, now stand accused of presiding over a program whose capabilities were deemed by the judge to be “Orwellian" and likely illegal. Snowden’s defenders, on the other hand, have new ammunition to argue that he is more whistleblower than traitor.
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  • Similarly, U.S. officials who have dismissed NSA critics as naive about the true nature of the terrorist threat now face the findings of a panel handpicked by Obama and with access to classified files. Among its members were former deputy CIA director Michael J. Morrell and former White House counterterrorism adviser Richard A. Clarke, both of whom spent years immersed in intelligence reports on al-Qaeda.A day after the panel’s report was made public, U.S. officials said its findings had stunned senior officials at the White House as well as at U.S. intelligence services, prompting a scramble to assess the potential effect of its proposals as well as to calculate its political fallout.The president is “faced with a program that has intelligence value but also has political liabilities,” said Mark M. Lowenthal, a former senior CIA official. “Now that he has a set of recommendations from a panel he appointed, if he doesn’t follow them people are going to say, ‘are they just for show?’ Or if he does follow them, he scales back a program that he supported.”Members of the panel met with Obama on Wednesday and said he was receptive to the group’s findings.
  • “Obama didn’t say, we accept this on the spot,” Clarke said in an interview. “But we didn’t get a lot of negative feedback. They’re going to talk to the agencies and see what the agencies’ objections are and then make their decisions.”White House officials declined to comment on specific recommendations Thursday, but press secretary Jay Carney signaled that the administration remains reluctant to dismantle the data-collection program. “The program is an important tool in our efforts to combat threats against the United States and the American people,” Carney said.Several current and former U.S. officials sought to downplay the impact of the court case and the review panel, saying that their influence is likely to be offset by the work of an internal White House group made up of national security officials who are regular consumers of NSA intercepts and may be more cautious about curtailing the agency’s capabilities.
  • However, the developments this week were a reminder that the outcome may be beyond Obama’s control. Leon’s ruling set in motion a legal battle that may culminate in a ruling by the Supreme Court. The panel’s findings gave new momentum to lawmakers who have introduced legislation that would bring an end to the NSA’s bulk collection of phone records.
  • As part of their initial research, members of the review panel spent a day at NSA headquarters in Fort Meade, Md. But officials said that neither the NSA chief, Gen. Keith B. Alexander, nor Director of National Intelligence James R. Clapper was given a copy of the report in advance or a chance to comment on its findings.A DNI spokesman declined to comment, but officials said U.S. intelligence officials would evaluate the panel’s proposals and prepare material for the White House on the potential effects of implementing its recommendations.
Paul Merrell

Testosterone Pit - Home - NSA Spying Crushes US Tech Companies in Emerging Ma... - 0 views

  • Cisco CEO John Chambers had a euphemism for it during the first quarter earnings call: the “challenging political dynamics in that country,” that country being China. But then there was India and others, including Russia where NSA leaker Edward Snowden is holed up, and where sales crashed much worse than in China. It led Cisco to chop its guidance. Overall revenues, instead of rising, would drop 8% to 10%. Or, as Tal Liani, an analyst from Bank of America, pointed out during the call, by “11% sequentially,” the worst since January 2009 when “the world was about to collapse.” It was in between the lines everywhere, but never once did Chambers, or anyone else on his team, mouth the acronym NSA. It was off limits. And that’s exactly how another tech giant, IBM, had dealt with its own China revenue fiasco.
  • How fast has the collapse happened? Cisco had already been struggling in China a year ago, when business was “flat.” Chambers had explained at the time that China was “very important” to Cisco. “We have invested a lot of resources in innovation in China for the last 20 years, and our commitment to China has not changed in any way,” he’d said. But China is home to some of Cisco’s largest competitors, Huawei and ZTE – whose forays into the US have been blocked by Congress for security reasons. Cisco was feeling the heat from that imbroglio – but it thought that problem would go away in a couple of quarters. In Q4, ending July 31, after the Snowden revelations had been ricocheting around for months, the China business fell 6%. “China is a little bit unique to Cisco because of some of the issues going on, which you all are aware of,” he’d said during the earnings call on August 14, once again refusing the utter NSA. Three months later, due to “the challenging political dynamics in that country?” An 18% plunge. Business in India, the “highlight in Asia-Pacific,” as Chambers had called it three months ago, had been up a dizzying 19% during Q4. Three months later, a stunning reversal: down 18%.
  • A year ago, Brazil was a star: orders had jumped 24%! By Q4 this year, orders were flat. Then revelations pushed Brazil center-stage in the spying scandal, and it had an allergic reaction. The government is even trying to force Google and others to keep Brazilian data in local data centers, not spread around the world. It would require the reengineering of the internet. During that quarter, orders plunged 25%! And Russia, where Snowden is trying to find new footing? Already damaged from the revelations, business in Q4 had been “approximately flat.” But now it plummeted 30%, the worst of any major market in Cisco’s book.
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  • “I’ve never seen that fast a move in emerging markets,” Chambers said. His industry peers were seeing the same thing. “Most of my CEO counterparts can almost finish my sentences in terms of what’s occurring,” he said. He even mentioned IBM. It’s “an industry phenomenon.” The collapse in the emerging markets – “We believe that more than half the world’s GDP occurs there,” he said – was “very consistent across the board.” And that consistency is what he was fretting about. “We usually, unfortunately, see things a couple of quarters ahead of our peers. This time we were a little bit surprised.” In the top five emerging markets, the “softening” started in Q4, “when we said they went from 13% growth the quarter before to flat in Q4. The other 15 countries continued to grow in the low teens. This time, all of them came down, and so out of our top 10, it was pretty brutal on that.” The NSA’s reckless all-encompassing spying, and its hand-in-glove multi-billion-dollar collusion with US tech companies to accomplish it, is now wreaking havoc on these same tech companies. Revenues are getting crushed overseas. Emerging market governments and companies are looking at other options. Trust that has taken decades to build has evaporated. A study in early August estimated that the spying scandal would cost US tech companies $35 billion. Which might not even be enough for a down-payment: alone that 11% drop in Cisco’s stock today cost shareholders $16 billion. 
  • It’s not a temporary issue. New revelations bubble to the surface all the time to complete the picture of a seamless, borderless, nearly perfect surveillance society. One dimension: the NSA and British GCHQ secretly break into the “clouds” of US companies to syphon off user data on a large scale. Illegal in the US. But the cloud is worldwide. Read..... NSA Secretly Breaks Into The Cloud Of US Tech Companies, Siphons Off Data, Fouls Up Revenues Overseas And here is my whole series on the spreading NSA spying scandal and its implications.
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