Best of the Week
Most Popular
1.China Crash, Greece Collapse, Harbingers of Stock Market Apocalypse Forecast 2015? - Nadeem_Walayat
2.Gold Price Awaiting Outcome of Greece Crisis - Clive_Maund
3.Gold Price Peculiar 6 Month Cycles - Rambus_Chartology
4.Gold Price Just a Little Bit More - Bob_Loukas
5.8 Unprecedented Extremes Indicate a Stock Market Bubble in Trouble - EWI
6.Gold And Silver – Without Either, You Will Be Greeced - Michael_Noonan
7.Lies, Damned Lies and Statistics - James_Quinn
8.China Crash, Greece Crisis Harbingers of Stocks Bear Market? Video - Nadeem_Walayat
9.Gold and Silver Record Shorting - Zeal_LLC
10.Markets Big Deflationary Downwave Quick Reference Guide... - Clive_Maund
Last 5 days
Ibuprofen Warning - The Pain Killer that can Kill You! - 29th July 15
More Ritholtz on Gold, and Another Response - 29th July 15
Crude Oil Price Is Lower – and You’re Richer - 29th July 15
U.S. Home Sales Market Is Dead – This Chart Proves It - 29th July 15
Greece- What Happens When Economists Talk Politics - 29th July 15
The Gold - U.S. House Prices Ratio As A Valuation Indicator - 29th July 15
Will Crude Oil Price Decline Continue? -Video - 28th July 15
Gold & Silver Money Has Devolved Into Debt and Plastic - 28th July 15
Buy and "Own Gold Krugerrands" Says Money Expert Jim Grant, Very Bullish on Gold - 28th July 15
How to Protect Yourself from China's Crashing Stock Market - 28th July 15
Quantum Geopolitics - 28th July 15
Gold Mining Stocks to Weather the Storm - 28th July 15
Stock Market Bulls Beware! - 28th July 15
Will Chinese Stock Market Crash Affect the US? - 27th July 15
Crude Oil Price Under $48! - 27th July 15
Are We Seeing a Trend Reversal with U.S. Interest Rates? - 27th July 15
How to Know When the Gold Bear Market is Over - 27th July 15
Gold Bear Market Phase III - 27th July 15
Silver Bull Hammer Buy Signal - 27th July 15
Gold Cracks Support and Plunges to New Lows - How Low Will Price Go? - 27th July 15
Commodity Markets Breakdown Of 2015 Is Now A Fact - 26th July 15
Gold Price at a Five-Year Low: Here’s What to Do - 26th July 15
Stock Market Primary III Inflection Point - 26th July 15
Central Banks and Our Dysfunctional Gold Markets - 25th July 15
Gold And Silver - The US Dollar Does Not Exist, Part II - 25th July 15
How Wall Street Put Apple Stock in Animal House - 25th July 15
How to Trade Markets Using the Stochastic Oscillator - Video - 24th July 15
A Bond Market Crisis Is Coming... Here's What to Do - 24th July 15
Why There's Resistance to the Iran Nuclear Deal - 24th July 15
Absurd Gold Stock Levels - 24th July 15
Gold Mining Stocks Nearing Rebound - 24th July 15
Misperceptions Create Significant Bond Market Value - 24th July 15
Commodities Distressed Investing - 24th July 15
OPEC Shorts Are Driving Down the Crude Oil Price - 24th July 15
USD Index Rebounds - 24th July 15
If You’re Worried About a Tech Bubble, You’re Focusing on the Wrong Thing - 24th July 15
Gold Stocks Bear Market Bottom Buying Opportunity? - Video
The Stealth War on the United States - 23rd July 15
Commodity Prices, Gold and Silver Stocks Next Leg Down - 23rd July 15
The ‘Real’ Reason the Fed Wants to Raise Interest Rates - 23rd July 15
Crude Oil Price Slump is a Once in a Decade Opportunity to Make Money, Guaranteed - 23rd July 15
Gold Price Hits a 5-Year Low: How to Time the Next MAJOR Bottom - 22nd July 15
Silver and the Deflation Thesis - 22nd July 15
Gold Price Crash - Trend Forecast 2015, Gold Stocks Buying Opportunity? - 22nd July 15
The Three Reasons Behind Iran’s Resistance to the Nuclear Deal - 22nd July 15
Winning the Hunger Games - How to Choose Successful Agriculture Investments - 22nd July 15
Are Free Markets The Solution? - 22nd July 15
Gold Hammered “Unprecedented Attack” - 21st July 15
The Turkish Enigma - 21st July 15
Gold and Silver: The Final Capitulation Commences - 21st July 15
Greater Israel Setback from Iranian Nuclear Agreement - 21st July 15
U.S. Housing Market: Is the Roof About to Cave In (Again)? - 21st July 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stock Market Bubble in Trouble

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

Biggest Debt Bomb in History