Best of the Week
Most Popular
1.Putin’s World: Why Russia’s Showdown with the West Will Worsen - John_Mauldin
2. Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - Nadeem_Walayat
3. Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - Austin_Galt
4.Gold Price Golden Bottom? - Toby_Connor
5.Gold Price and Miners Soar on Huge Volume - P_Radomski_CFA
6.Stock Market and the Jaws of Life or Death? - Rambus_Chartology
7.Gold Price 2015 - EWI
8.Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - Nadeem_Walayat
9.Gold, Silver, Crude and S&P Ending Wedge Patterns - DeviantInvestor
10.Is the Gold And Silver Golden Rule Broken? - Michael_Noonan
Last 5 days
A Short Tale About the Grand Manipulation of Crude Oil Prices - 26th Nov 14
China Secret Gold Buying ... How Could It Happen? - 26th Nov 14
Gold Price Spikes to $1,467.50/oz on Computer Glitch? - 26th Nov 14
Gold - So Bad It's Good: Surviving 2014 - 26th Nov 14
TrueShopping.co.uk Real Customer Experience Review - Online Shopping Lessons - 26th Nov 14
Is There A New Global Consensus About Cheating Investors To Reboot Employment? - 26th Nov 14
EUR/USD – Currency Bulls Don’t Give Up - 26th Nov 14
Swiss Gold Referendum A Golden Opportunity for Switzerland - 25th Nov 14
Silver: What COT Analysis Tells Us - 25th Nov 14
Stock Market Big, Bold and Ugly - 25th Nov 14
U.S. Dollar Near Top? Gold and Silver Trading, Platinum Breakout Invalidation - 25th Nov 14
Buy Fear - Easily Pick Up Profits on Stock Market Dips - 25th Nov 14
The Islamic State Reshapes the Middle East - 25th Nov 14
Gold Price Forecast 2015 - 25th Nov 14
The Swiss Referendum On Gold: What’s Missing From The Debate - 25th Nov 14
Clash of Generations - Why Millennials Still Live at Home; Not Jobs, Student Debt, or Housing - 25th Nov 14
Stock Market Reminiscent of Pompeii - 25th Nov 14
Once Upon A Time There Were Philosopher Kings - 24th Nov 14
The 2014 Crude Oil Price Crash Explained - 24th Nov 14
China Stock Investing - Follow the Money! - 24th Nov 14
122 Tonnes of Gold Secretly Repatriated to Netherlands - 24th Nov 14
What Causes the U.S. Dollar to Move? - 24th Nov 14
Stock Market Indexes New Highs - Will Uptrend Extend Even Further? - 24th Nov 14
All Hail the King U.S. Dollar - Trend Forecast - 24th Nov 14
Where Is China Economy On The Map Exactly? - 24th Nov 14
Most of The World Economies Panic - Is The US Next? - 24th Nov 14
Stock Market Exhaustion Gap? - 24th Nov 14
Gold Golden Gains Come After The Pain - 24th Nov 14
Crude Oil and Stock Market Setting The Stage For The Next Recession - 23rd Nov 14
This Publicly-Owned Bank Is Outperforming Wall Street - 23rd Nov 14
Who’s Ready For $30 Crude Oil Price? - 23rd Nov 14
Strategic, Methodological and Developmental Importance of Knowledge Consumption - 23rd Nov 14
Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - 23rd Nov 14
Gold Price 2015 - 22nd Nov 14
Stock Market Medium Term Top? - 22nd Nov 14
Is the Gold And Silver Golden Rule Broken? - 22nd Nov 14
Malaysia's Subsidy and Budget Deficit Conundrum - 22nd Nov 14
Investors Hated Gold at Precisely the Wrong Time: What About Now? - 22nd Nov 14
Gold and GLD ETF Selloff - 22nd Nov 14
Currency Wars, the Ruble and Keynes - 21st Nov 14
Stock Market Investor Sentiment in The Balance - 21st Nov 14
Two Biotech Stocks Set to Double on One Powerful Catalyst - 21st Nov 14
Swiss Gold Poll Likely Tighter Than Polls Suggest - 21st Nov 14
Gold's Volatility and Other Things to Watch - 21st Nov 14
Australia Stock Market and AUD Dollar Analysis (ASX200 and AUDUSD) - 21st Nov 14
New Algae Research May Have Uncovered an “Energy Forest” Under the Sea - 21st Nov 14
The Cultural and Political Consequences of Fiat Money - 20th Nov 14
United States Social Crisis - No One Told You When to Run, You Missed the Starting Gun! - 20th Nov 14
Euro-Zone Tooth Fairy Economics, Spain Needs to leave the Euro - 20th Nov 14
Ebola Threat Remains a Risk - New Deaths in Nebraska and New York - 20th Nov 14
Stock Market and the Jaws of Life or Death? - 20th Nov 14
Putin’s World: Why Russia’s Showdown with the West Will Worsen - 20th Nov 14
Making Money While The World Burns - 20th Nov 14
Why This "Quiet Zone" Is Now Tech Stocks Biggest Profit Sector - 20th Nov 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Gold Report 2015

China Cyber-Hacking of America

Companies / Cyber War Feb 19, 2013 - 01:24 PM GMT

By: Money_Morning

Companies

William Patalon writes: We've been warning for some time now that cybersecurity would emerge as one of the top issues to track.

Indeed, in column we published on February 1st , we even predicted that the cyber-hacking of America - especially from China, Russia and Iran - would turn into one of the top stories of 2013.


And that's precisely how it's turning out.
Just last week, The Washington Post reported that a brand new National Intelligence Estimate (NIE) has concluded that the United States "is the target of a massive, sustained cyber-espionage campaign that is threatening the country's economic competitiveness."

Not surprisingly, given recent news events, the chief culprit has been identified as China.

NIE reports are classified documents that are prepared for U.S. policymakers and represent a consensus view of the U.S. intelligence community. The fact that an NIE was prepared on this particular topic underscores just how seriously the global cyber-hacking issue is being taken in Washington.

The Post story relied on unnamed sources that reporter Ellen Nakashima said were familiar with the contents of this particular report.

According to Nakashima, the NIE report "describes a wide range of sectors that have been the focus of hacking over the past five years, including energy, finance, information technology, aerospace and automotives ... the assessment does not quantify the financial impact of the espionage, but outside experts have estimated it in the tens of billions of dollars."

The NIE report is just the latest in a fusillade of headlines that have riddled the news since we last talked to you about this. For instance:

■Earlier this month, Iran broadcast clips of what it claimed was encrypted video footage extracted from the surveillance cameras of the state-of-the-art Lockheed Martin RQ-170 Sentinel unmanned aerial vehicle (UAV) it says it seized back in December 2011. The Iranian military claims its "cyber-corps" actually "spoofed" the unmanned airplane's avionics, and induced the ship to land 140 miles inside its own territory. (The U.S. military disputed the claim and said the UAV crashed because of a malfunction.) The aircraft - which aviation buffs dubbed "The Beast of Kandahar" because of its aggressive, futuristic look - represents front-line technology. Now Iran claims it is reverse-engineering the airplane and stealing its secrets.
■Last week, the ultra-secret U.S. Federal Reserve was forced to admit it had been the victim of a "hack attack" after the group Anonymous claimed responsibility via a Super Bowl Sunday Tweet. Anonymous claimed it had compromised 4,000 bankers' credentials on a private computer system the Fed uses to communicate with bankers in emergencies. It also grabbed secret forecasts the Fed uses in policymaking decisions.

The NIE report names three other countries - Russia, Israel and France - that it alleges have hacked America in pursuit of economic booty.

But the report makes clear that the cyber-spying efforts of this trio are dwarfed by the moves allegedly made by China.

(Beijing vehemently denies the allegation, and says it neither engages in, nor condones, illegal computer hacking.)

Why should we - as individual investors - care about this? I mean, isn't this just something that the folks down at the Pentagon need to sort out?

The fact is, you should care a great deal about this, and not just for military or patriotic reasons.

The cyber-hacking of America affects each and every one of us.

Nakashima, the reporter for The Post, actually summarized it quite eloquently when she wrote that "cyber-espionage ... once viewed as a concern mainly by U.S. intelligence and the military, is increasingly seen as a direct threat to the nation's economic interests."

In other words, the innovations, trade secrets and competitive advantages we lose through an unchecked reign of cyber-espionage will grind away at Corporate America's market share and profits - which, in turn, will savage U.S. stock prices.

Initially, we'll all feel the pinch when we see how that share-price erosion has savaged our retirement holdings - and even our life savings.

And we all know what happens when Corporate America sees its profits, market share and stock prices hit the skids - it fires people ... en masse.

(As a former journalist, I don't go for all those euphemisms companies try to employ to divert attention from the human toll that results from mass job cuts. These aren't "layoffs," because the companies have no intention of "calling the workers back," like in the old days. Nor will I use the terms "downsizing," "reduction-in-force" (RIFs), or "right-sizing." When these folks get cut, they're fired - and the jobs won't come back.)

Washington is responding. But you have to wonder just how effective those responses will be.

The options open to the Obama administration include formal protests, the expulsion of diplomatic personnel, the imposition of travel and visa restrictions, and complaints to the World Trade Organization (WTO).

Not exactly awe-inspiring stuff.

In late January, Pentagon officials said they were working on a big expansion of their cybersecurity forces. The plan there is twofold: First, counter the incursions that could cripple our infrastructure, economy and national security; and, second, take the battle back to America's cyber-enemies.

That strategy would require a 444% increase in the U.S. Department of Defense's Cyber Command - boosting its ranks from 900 now to an estimated 4,900 when the expansion is completed, The Washington Post reported back then.

But that plan, too, is somewhat suspect.

Although defense officials said the Pentagon is "constantly looking to recruit, train and retain world class cyber-personnel," they also conceded that finding, training and keeping such a big group of hyper-qualified specialists would be a huge challenge - if not an outright impossibility.

Nevertheless, "the threat is real and we need to react to it," William J. Lynn III, a former deputy defense secretary who worked on the Pentagon's cybersecurity strategy, told The New York Times.

Let's hope we can.

This is another one of those seminal issues - like the ongoing affair in the South China Sea - that we'll keep watching for you.

That way you'll stay ahead of the curve ...

And if you would like to join the thousands of investors Private Briefing has already helped to make big money in the markets. You can do it for just 26 cents a day.

I'm proud to say that in a little over a year, we've had more than four dozen winners, including four that have doubled and two that ended up as takeover targets.

To learn more click here.

Source :http://moneymorning.com/2013/02/19/the-cyber-hacking-of-america-is-going-to-cost-us-big-time/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014