Best of the Week
Most Popular
1.Dow Stock Market Trend Forecast 2015 by Nadeem Walayat - Nadeem_Walayat
2.Gold And Silver – Forget The News. Silver $12 – 14? Gold $1,000 – 1,100? 5 - Michael_Noonan
3.A TOP Formation In Apple Inc. - Crash Condition Signal Recorded - David Harris
4.Gold Gets Safe Haven Bids But COMEX Has Stopping Power - GoldSilverWorlds
5.The Swiss 10-Year Bond Illustrates Central Banks` Flawed Monetary Policy - EconMatters
6.Exponential Explosions in Debt, the S&P, Crude Oil, Silver and Consumer Prices - DeviantInvestor
7.“Forgive Us Our Debts” – Only Way To Prevent Economic Meltdown - GoldCore
8.Is Russia Planning a Gold-Based Currency? - Marcia Christoff-Kurapovna
9.Stock Market Trend Forecast 2015 Video - Nadeem_Walayat
10.Gold GDX ETF Technical Analysis - Austin_Galt
Last 5 days
Subprime Rising - U.S. Debt Breaking Bad Part 2 - 1st Mar 15
Gold CoT Improving, But ... - 1st Mar 15
UK General Election 2015 Seats Forecast - Who Will Win? - 28th Feb 15
UK General Election 2015 - Forecasting Seats for SNP, LIb-Dems, UKIP and Others - 28th Feb 15
Stocks Bull Market Continues - 28th Feb 15
U.S. Debt Breaking Bad - 28th Feb 15
NATO Frankenstein - When Centralization Scales Beyond Our Control - 28th Feb 15
Gold And Silver Insanity Prevails; Precious Metals Without Direction - 28th Feb 15
Fed Raising U.S. Interest Rates - Shovelin’ Schmitt Against the Tide - 28th Feb 15
Don't Let This Stock Market Myth Cost You Your Gains - 28th Feb 15
Recession is On The Way; Beat The Stock Market Crowd, Panic Now! - 28th Feb 15
Stock Market Indexes Creeping Towards the Edge - 28th Feb 15
GGD Going for Mexican Gold - 27th Feb 15
Foreign Real Estate Is the New Swiss Bank Account - 27th Feb 15
10 Reasons Washington Has War Fever - 27th Feb 15
Gold and the Euro Tragedy, Iraq 3.0, Ukraine Conflict Three Ring Circus - 27th Feb 15
Deepak Chopra - New Age Genius or Bullshit Expert? - Video - 27th Feb 15 - Videos
New Greece Drachma Revealed Amid Bank Runs - Greeks Buy Gold Sovereigns - 27th Feb 15
Will Month Long Stocks Rally Continue? - 27th Feb 15
The Only Public Hedge Fund You Should Own - 27th Feb 15
UK House Prices Trend 2015 and the May General Election - 27th Feb 15
Why America is Ungovernable - The Republicans’ Civil War - 27th Feb 15
Gold vs Gold Stocks: Bullish Anomaly Developing? - 27th Feb 15
I Heart Capitalism, Nasdaq Stocks, Then And Now - 27th Feb 15
The Fed’s History of Assassination - 27th Feb 15 i
Gold Bull Market Forecast - Money Will Rotate Into These Dead Investments - 27th Feb 15
"Audit the Fed"? We've Already Done That (Well, Kind of) - 26th Feb 15
Forget Peak Oil; Worry About Peak Demand - 26th Feb 15
Currency Wars, Again - 26th Feb 15
The Fed Waited Too Long: Here Comes Inflation - 26th Feb 15
Investing Inertia Won’t Keep Your Cash Safe - 26th Feb 15
The Net Neutrality Scam - 26th Feb 15
Will Conservatives Out of Control Immigration Crisis Boost UKIP Election 2015 Prospects? - 26th Feb 15
EU Warns Ireland and Euro Zone of Debt Dangers - 26th Feb 15
Commodity Prices Set To Plunge Below 2008 Lows - 26th Feb 15
Ukraine Hyperinflation as Currency Plunges 44% in One Week! - 26th Feb 15
The State of the Global Markets 2015 - 53 Page Report - 26th Feb 15
NASDAQ New 15 Year High - Stock Market Death By Overdose - 25th Feb 15
12 Reasons Why Barry Ritholtz and Many UK Experts Are Mistaken On Gold - 25th Feb 15
Sugar Commodity Price To Sweeten Up - 25th Feb 15
Investor Profits from China 2,000-Year Unstoppable Trends - 25th Feb 15
How to Borrow Cheaply from a Government-Owned Bank - 25th Feb 15
Debt Be Not Proud - 25th Feb 15
Liberal Democrat Election Blood Bath - Could Nick Clegg Lose Sheffield Hallam? - 25th Feb 15
Wheat Commodity Price Technical Trend Forecast - 24th Feb 15
Bitcoin Price Might Stay below $250 - 24th Feb 15
Another Important Stock Market Inflection Point Approaching - 24th Feb 15
Gold: The Good, Bad, and Truly Ugly - 24th Feb 15
Eurozone Gold Holdings Increase to 10,792 Tonnes As “Reserve of Safety” Amidst Crisis - 24th Feb 15
Bird Doo; Yellen Goes to Congress - 24th Feb 15
Is Gold Investing Risk Free? - 24th Feb 15
The Bull Case For Gold Price 2015, and the Bear - 24th Feb 15
Europe - The Intersection of Three Crises - 24th Feb 15
Gold Price Just Needs More Time - 24th Feb 15
Gold Price Downtrend Looks Set to Continue - 23rd Feb
Silver Price Depressing Downtrend Will Eventually End - 23rd Feb 15
5 Reasons Why You Should Sell Amazon Stock - 23rd Feb 15
Global System Catastrophe Is Key Threat To Human Civilisation - 23rd Feb 15
Greece Crisis Yields Ideal Market Opportunities - 23rd Feb 15
Gold and Silver Stocks or General Stock Market Indices? - 23rd Feb 15
Swimming With Sharks: Goldman Sachs, Schools and Capital Appreciation Bonds - 23rd Feb 15
Stock Market - The Fed Still Has Your Back - 23rd Feb 15
Soybean Commodity Price Technical Outlook - 23rd Feb 15
Gold Weekly COTs and More - 23rd Feb 15
Stock Market New Highs With Weak Breadth - 23rd Feb 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The State of the Global Markets 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

© 2005-2015 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