Best of the Week
Most Popular
1.Election Forecast 2015 - Opinion Polls Trending Towards Conservative Outright Win - Nadeem_Walayat
2.UK Solar Eclipse - End Time Sign, Judgement Day, Doomsday! - Nadeem_Walayat
3.Gold And Silver - When Will Precious Metals Rally? Not In 2015 - Michael_Noonan
4.Preparing for the Next Stocks Bear Market - Forecast 2015-2016 - Gary_Savage
5.Is a Stock Market Crash Imminent? - David Eifrig
6.Gold Price Slumps as US Dollar Soars, What's Next? - Nadeem_Walayat
7.US Dollar Forex Pairs and Gold Chartology - Rambus_Chartology
8.Election Forecast 2015: The Day Labour Lost the General Election - Nadeem_Walayat
9.The ECB Should End QE Next Month - EconMatters
10.Silver Price Poised to Surge - Zeal_LLC
Last 5 days
Deflation Watch: Key U.S. Economic Measures Turn South - 27th Mar 15
The Hard-Earned Truth About Recreational Real Estate - 27th Mar 15
Bitcoin Price Still in Important Territory - 27th Mar 15
Stocks Bear Market Conditions - Index Market Range Warning - 27th Mar 15
BEA Leaves Q4 2014 U.S. GDP Growth Essentially Unchanged at 2.22% - 27th Mar 15
Brazil Economy Victim of Vulgar Keynesianism - 27th Mar 15
Gold to Fuel Silver Price Upleg - 27th Mar 15
Gold and Silver Stocks Will Rise Again! - 27th Mar 15
Risk of ‘World War’ between NATO and Russia on Ukraine as Yemen Bombed - 27th Mar 15
FOMC Minutes Turned The Gold Tide - 27th Mar 15
Sheffield Hallam Election Battle 2015 - Lib Dems Go to War Whilst Labour Sleeps - 27th Mar 15
Gold Effect On Mining & Shale Wasteland - 27th Mar 15
How Stock Investors Should Play the 2016 Presidential Race - 26th Mar 15
MidEast Energy Alert: Why the Crisis in Yemen Could Get Ugly Very Fast - 26th Mar 15
Stock Market Downward Spiral of Dumbness - 26th Mar 15
The Monetary Approach Reigns Supreme - 26th Mar 15
Stock Market Large Gap Down, Despite the Algos' Push Back - 26th Mar 15
Crude Oil Surges, Gold price Spikes as Middle East Tensions Escalate - 26th Mar 15
The U.S. Housing Market Recovery Is Fabricated Optimism - 26th Mar 15
Why Yemen Is The Next Saudi-Iranian Battleground - 26th Mar 15
The Crude Oil Price Crash and China Economic Slow Down - 26th Mar 15
Global Financial Markets Are More Distorted Than Ever Before - 26th Mar 15
One More Stock Market Rally and Then a Huge Drop Expected - 26th Mar 15
Danger Will Robinson - Stock Market Crash Warning - 25th Mar 15
Learn the Basics of Corrective Elliott Waves - 25th Mar 15
Why CNBC Is Hazardous to Your Financial Health! - 25th Mar 15
Will Your Retirement Accounts Survive The Coming Tax Code "Revolution"? - 25th Mar 15
US Dollar - Americas Phoenix - 25th Mar 15
California’s Epic Drought: Only One Year of Water Left! - 25th Mar 15
What’s Wrong With Silver? - 25th Mar 15
SPX Futures Appear Weak. WTIC and Gold May Be at Max Retracement - 25th Mar 15
We’re at the Dawn of a “New Energy Age” - 25th Mar 15
A Very Weak U.S. Economic Recovery - 25th Mar 15
Zero UK CPI Inflation Rate Prompts Deflation Danger Propaganda For Fresh Money Printing - 25th Mar 15
Stock Market NYSE Hi-Lo Index Aggressive Sell Signal - 24th Mar 15
Palladium Commodity Price Forecast - 24th Mar 15
Bitcoin Price Gearing Up for a Fall - 24th Mar 15
Safety Deposit Boxes In UK Being Closed By ‏HSBC – Not Closing Gold Vaults - 24th Mar 15
Japan Short Term Gains And Long Term Disaster - 24th Mar 15
China's Fragile Evolution - 24th Mar 15
David Cameron Announces Resignation Even Before Being Re-elected, Handing Labour 6 Seats - 24th Mar 15
City of London's Ownership of American Colonies - 24th Mar 15
Stock Market Reversal May Have Begun - 24th Mar 15
Casey Gathers Top Gold Experts to Share Secrets for Making Money in Any Market - 24th Mar 15
Thoughts on The Current Crude Oil Market - 24th Mar 15
U.S. Economy Still on Life Support - What Your Governments Hiding From You... - 24th Mar 15
UK Election Forecast 2015 - Budget Bribes Fail, SNP Insurgency Catastrophe - Video - 24th Mar 15
Is Stock Market Minor Top Taking Hold? - 23rd Mar 15
Greece and EU Running Out of Time as Bank Runs Intensify - 23rd Mar 15
Stock Market Slightly Negative Expectations Following Last Week's Rally - 23rd Mar 15
This Rising Interest Rates Play Could Make You a Quick 55% - 23rd Mar 15
Platinum Commodity Price False Break Low - 23rd Mar 15
The Real Reason The American Dream is Unraveling - 23rd Mar 15
Election Forecast 2015 - Budget Bribes Fail to Impress Voters, Tory's Lose Seats in Opinion Polls - 23rd Mar 15
Silver Price Reliance During U.S. Dollar Rally - 23rd Mar 15
Gold Price Outlook Dramatic Improvement Following US Dollar Topping Action - 23rd Mar 15
Wall Street Doesn't Want You to Do This - 22nd Mar 15
The "Natural Interest Rate" Is Always Positive and Cannot Be Negative - 22nd Mar 15
Exploring The Gold Market: The Fed, The Charts. The COTS and GLD - 22nd Mar 15
Stocks Bull Market Continues - 22nd Mar 15
Gold And Silver - China's AIIB Spells U.s. Dollar Demise, Not Clear For Precious Metals - 22nd Mar 15
Cocoa Commodity Price Technical Outlook - 21st Mar 15
Yield Curve, Futures, Suggest No U.S. Interest Rate Hike Until December - 21st Mar 15
Three Iconic Stocks Are Poised for a Dive - 21st Mar 15
We're All Hedge Funds Now! - 21st Mar 15
Why Stock Market Seasonality May Be Critical in 2015 - 20th Mar 15
Yellen's Tiger Riding Dilemma Keeps Interest Rates Near Zero - 20th Mar 15
FOMC is boxed in, Gold and Silver - 20th Mar 15
Silver Price Poised to Surge - 20th Mar 15
Why Aren’t These Investors Worried About The Gold Price? - 20th Mar 15
Gold Price Downside $850/oz; Upside Jump to $2,000/oz on ‘Grexit’ - 20th Mar 15
Cheap Paper Money - Precious Metals Technical Outlook - 20th Mar 15
Best Cash ISA vs Budget 2015 Scrapping Tax on Savings Interest on First £1,000 - 20th Mar 15
GDXJ / Gold Ratio - 20th Mar 15
What the “Yellen Effect” Ultimately Means for Crude Oil - 20th Mar 15
Sharp Fall In USD Index And Its Implications - 20th Mar 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Economy Still on Life Support

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

© 2005-2015 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