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Obama to Expand Surveillance State Powers by Signing a 21 Page Memo

Obama to Expand Surveillance State Powers by Signing a 21 Page Memo

As the Apple vs. FBI battle rages in the court system and throughout the halls of Congress, Obama decides to do what he does best. Using “his pen” to make consequential decisions unilaterally.

Just another day in the American banana republic.

The New York Times reports:

WASHINGTON — The Obama administration is on the verge of permitting the National Security Agency to share more of the private communications it intercepts with other American intelligence agencies without first applying any privacy protections to them, according to officials familiar with the deliberations.

The change would relax longstanding restrictions on access to the contents of the phone calls and email the security agency vacuums up around the world, including bulk collection of satellite transmissions, communications between foreigners as they cross network switches in the United States, and messages acquired overseas or provided by allies.

The idea is to let more experts across American intelligence gain direct access to unprocessed information, increasing the chances that they will recognize any possible nuggets of value. That also means more officials will be looking at private messages — not only foreigners’ phone calls and emails that have not yet had irrelevant personal information screened out, but also communications to, from, or about Americans that the N.S.A.’s foreign intelligence programs swept in incidentally.

Robert S. Litt, the general counsel in the office of the Director of National Intelligence, said that the administration had developed and was fine-tuning what is now a 21-page draft set of procedures to permit the sharing.

Until now, National Security Agency analysts have filtered the surveillance information for the rest of the government. They search and evaluate the information and pass only the portions of phone calls or email that they decide is pertinent on to colleagues at the Central Intelligence Agency, the Federal Bureau of Investigation and other agencies. 

…click on the above link to read the rest of the article…

FBI vs. Apple Establishes a New Phase of the Crypto Wars

For over two decades, the battle between privacy-minded technologists and the U.S. government has primarily been over encryption. In the 1990s, in what became known as the Crypto Wars, the U.S. tried to limit powerful encryption — calling it as dangerous to export as sophisticated munitions — and eventually lost.

After the 2013 Snowden revelations, as mainstream technology companies started spreading encryption by putting it in popular consumer products, the wars erupted again. Law enforcement officials, led by FBI Director James Comey, loudly insisted that U.S. companies should build backdoors to break the encryption just for them.

That won’t happen because what these law enforcement officials are asking for isn’t possible (any backdoor can be used by hackers, too) and wouldn’t be effective (because encryption is widely available globally now). They’ve succeeded in slowing the spread of unbreakable encryption by intimidating tech companies that might otherwise be rolling it out faster, but not much else.

Indeed, as almost everyone else acknowledges, unbreakable encryption is here to stay.

Tech privacy advocates continue to remain vigilant about encryption, actively pointing out the inadequacies and impossibilities of the anti-encryption movement, and jumping on any sign of backsliding.

But even as they have stayed focused on defending encryption, the government has been shifting its focus to something else.

The ongoing, very public dispute between Apple and the FBI, in fact, marks a key inflection point — at least as far as the public’s understanding of the issue.

You might say we’re entering the Post-Crypto phase of the Crypto Wars.

Think about it: The more we learn about the FBI’s demand that Apple help it hack into a password-protected iPhone, the more it looks like part of a concerted, long-term effort by the government to find new ways around unbreakable encryption — rather than try to break it.

…click on the above link to read the rest of the article…

We Just Found out the Real Reason the FBI Wants a Backdoor into the iPhone

On its face, the case boils down to a single locked and encrypted iPhone 5S, used by radical jihadist Syed Rizwan Farook before he and his wide Tashfeen Malik killed 14 people in San Bernardino on December 2nd. The DOJ wants Apple to build a backdoor into the device so that it can bypass the company’s state of the art encryption apparatus and access information and evidence related to the case.

At least, that’s the premise presented to the public. As we are learning, the FBI and the federal government have a far more comprehensive end-game in mind than merely bolstering the prosecution of this one case.

Whistleblower Edward Snowden tweeted last week that “crucial details [of the case] are being obscured by officials.” Specifically, he made the following trenchant points:


Journalists: Crucial details in the @FBI v.  case are being obscured by officials. Skepticism here is fair:

Upgrade Your iPhone Passcode to Defeat the FBI’s Backdoor Strategy

YESTERDAY, APPLE CEO TIM COOK published an open letter opposing a court order to build the FBI a “backdoor” for the iPhone.

Cook wrote that the backdoor, which removes limitations on how often an attacker can incorrectly guess an iPhone passcode, would set a dangerous precedent and “would have the potential to unlock any iPhone in someone’s physical possession,” even though in this instance, the FBI is seeking to unlock a single iPhone belonging to one of the killers in a 14-victim mass shooting spree in San Bernardino, California, in December.

It’s true that ordering Apple to develop the backdoor will fundamentally undermine iPhone security, as Cook and other digital security advocates have argued. But it’s possible for individual iPhone users to protect themselves from government snooping by setting strong passcodes on their phones — passcodes the FBI would not be able to unlock even if it gets its iPhone backdoor.

The technical details of how the iPhone encrypts data, and how the FBI might circumvent this protection, are complex and convoluted, and are being thoroughly explored elsewhere on the internet. What I’m going to focus on here is how ordinary iPhone users can protect themselves.

The short version: If you’re worried about governments trying to access your phone, set your iPhone up with a random, 11-digit numeric passcode. What follows is an explanation of why that will protect you and how to actually do it.

If it sounds outlandish to worry about government agents trying to crack into your phone, consider that when you travel internationally, agents at the airport or other border crossings can seize, search, and temporarily retain your digital devices — even without any grounds for suspicion. And while a local police officer can’t search your iPhone without a warrant, cops have used their own digital devices to get search warrants within 15 minutes, as a Supreme Court opinion recently noted.

…click on the above link to read the rest of the article…

Is It All Just A Publicity Stunt? Apple Unlocked iPhones For The Feds 70 Times Before

Is It All Just A Publicity Stunt? Apple Unlocked iPhones For The Feds 70 Times Before

The event that has gripped the tech and libertarian community over the past 48 hours has been Tim Cook’s stern refusal to comply with a subpoena demanding that Apple unlock the iPhone 5C belonging to one of the San Bernardino shooters for a full FBI inspection.

As reported previously, Judge Sheri Pym of U.S. District Court in Los Angeles said on Tuesday that Apple must provide “reasonable technical assistance” to investigators seeking to unlock data on – in other words hack – an iPhone 5C that had been owned by Syed Rizwan Farook, one of the San Bernardino shooters.

So far Tim Cook has refused to comply, saying said his company opposed the demand from the judge to help the FBI break into the iPhone. Cook said that the demand threatened the security of Apple’s customers and had “implications far beyond the legal case at hand.”

He added that “the government is asking Apple to hack our own users and undermine decades of security advancements that protect our customers — including tens of millions of American citizens — from sophisticated hackers and cybercriminals,” he said.   “We can find no precedent for an American company being forced to expose its customers to a greater risk of attack.”

Cook’s summary:

“The implications of the government’s demands are chilling. If the government can use the All Writs Act to make it easier to unlock your iPhone, it would have the power to reach into anyone’s device to capture their data. The government could extend this breach of privacy and demand that Apple build surveillance software to intercept your messages, access your health records or financial data, track your location, or even access your phone’s microphone or camera without your knowledge.”

…click on the above link to read the rest of the article…

Glistening Gold & The Rumble In The Ruble – America’s “Tribute Scam” Is Unraveling Fast

Glistening Gold & The Rumble In The Ruble – America’s “Tribute Scam” Is Unraveling Fast

Before we discuss The Empire of Chaos ongoing attacks on “The Assassin Putin” and The Master of the Universe attempts to topple any challenge to Washington’s global hegemony, we thought the following chart may give some much needed context for where the pain really is – the drop in the oil price in local currency terms has been the least of all major nations… for Russia

While a case can be made that for Moscow it would be a tremendous waste of hard-earned foreign exchange to try to counter a rig against their currency they simply cannot beat, as the entire fiat financial power of the US is against them.

As Pepe Escobar via DoomsteadDiner.net notes,  Russia’s Central Bank by now should be all-out selling rubles for gold, and building Russia’s gold reserves.

Well, it is happening, somewhat.

Last week, Russia’s Central Bank estimated gold reserves to have reached 1,415 metric tons in 2015 – over 17 percent more than 2014, valued at almost $48.6 billion. The share of monetary gold in Russia’s foreign currency reserves rose from 11.96 percent to 13.18 percent.

That’s still not good enough. Why? A harsh answer would be that the Russian Central Bank and the Ministry of Finance, as some analysts argue, are in effect run by saboteurs and vassals of the US financial elite, a.k.a. the Masters of the Universe.

Still, the Russian Central Bank did not intervene to prop up the ruble. And they should not. The best course of action would be to let the ruble go, ending almost all imports, thus forcing self-sufficiency. Or introduce capital controls, with only approved transactions involving foreign currencies. It did work for Malaysia, for instance, after the 1997 Asian financial crisis.

Forget about a China crash

…click on the above link to read the rest of the article…

How The Rothschilds Made America Into Their Private Tax Fraud Backyard

How The Rothschilds Made America Into Their Private Tax Fraud Backyard

Back in September 2012 we first presented “the world’s biggest hedge fund nobody had ever heard of”: a small, previously unknown company called Braeburn Capital which, however, managed more cash than even Ray Dalio’s Bridgewater, the world’s largest hedge fund.

How had the little firm operating out of a non-descript office building in Nevada achieved this claim to fame? By managing the cash hoard (now well over $200 billion) of the world’s biggest and most valuable company: Apple.

But what was perhaps more notable is where Braeburn was physically located: Reno, Nevada. 

We explained the company’s choice for location with one simple word: “taxes”, or rather the full, and very much legal, avoidance thereof.

Three and a half years later we encounter this quiet Nevada town once again, and once again it is Reno’s aura of tax evasion that brings is to the world’s attention courtesy of a Bloomberg report discussing “The World’s Favorite New Tax Haven.”

Only instead of Apple this time, the focus falls on a far more notorious company: the Rotschilds.

As Bloomberg writes, “last September, at a law firm overlooking San Francisco Bay, Andrew Penney, a managing director at Rothschild & Co., gave a talk on how the world’s wealthy elite can avoid paying taxes.  His message was clear: You can help your clients move their fortunes to the United States, free of taxes and hidden from their governments. Some are calling it the new Switzerland.”

Ah, the rich irony: years after Obama single-handedly destroyed the secrecy-based Swiss banking model, the U.S. itself has taken over the role of the world’s biggest, if no longer very secret, tax haven, and the epicenter is this modest Nevada city located next to lake Tahoe, which has become the favorite city, if only for tax purposes, for such names as Apple and the Rothschild family.

…click on the above link to read the rest of the article…

The Big Short is a Great Movie, But…

The Big Short is a Great Movie, But…

 

Paris — Michael Lewis is the chronicler of Wall Street.  He takes the complexity behind which the inhabitants of the financial world hide and weaves a tale that is both understandable and compelling.  Starting with the classic “Liars Poker” (1989), Lewis has produced a number of books about the financial markets including “Flash Boys: A Wall Street Revolt” (2014) and “The Big Short: Inside the Doomsday Machine” (2010).  Working with director Adam McKay and some great actors and screen writers, Lewis has managed to produce what is perhaps the most accessible and relevant treatment of the mortgage boom and financial bust of the 2000s, and the subsequent 2008 financial crisis.

The beauty of “The Big Short,” both as a movie and a book, is that it provides sufficient detail to inform the general audience about events and issues that are not part of everyday life.  Wall Street is a secretive place, but “The Big Short” manages to convey enough of the details to make the story credible as a journalistic effort, yet also enormously entertaining.  Lewis does this with two essential ingredients of any film: a simple story and compelling characters.

Images of greed and stupidity are presented like Italian frescos in “The Big Short,” pictures that are memorable and thought provoking.  Indeed, what many people know and remember years from now about the 2008 financial crisis will be shaped by creative efforts such as “The Big Short” for the simple reason that Lewis has simplified the description into a manageable portion.  Unlike hedge fund manager Michael Burry (played by Christian Bale), most people lack the patience and expertise to sift through and understand reams of financial data.

…click on the above link to read the rest of the article…

CISA Is Now The Law: How Congress Quietly Passed The Second Patriot Act

CISA Is Now The Law: How Congress Quietly Passed The Second Patriot Act

Back in 2014, civil liberties and privacy advocates were up in arms when the government tried to quietly push through the Cybersecurity Information Sharing Act, or CISA, a law which would allow federal agencies – including the NSA – to share cybersecurity, and really any information with private corporations “notwithstanding any other provision of law.” The most vocal complaint involved CISA’s information-sharing channel, which was ostensibly created for responding quickly to hacks and breaches, and which provided a loophole in privacy laws that enabled intelligence and law enforcement surveillance without a warrant.

Ironically, in its earlier version, CISA had drawn the opposition of tech firms including Apple, Twitter, Reddit, as well as the Business Software Alliance, the Computer and Communications Industry Association and many others including countless politicians and, most amusingly, the White House itself.

In April, a coalition of 55 civil liberties groups and security experts signed onto an open letter opposing it. In July, the Department of Homeland Security itself warned that the bill could overwhelm the agency with data of “dubious value” at the same time as it “sweep[s] away privacy protections.” Most notably, the biggest aggregator of online private content, Facebook, vehemently opposed the legislation however a month ago it was “surprisingly” revealed that Zuckerberg had been quietly on the side of the NSA all along as we reported in “Facebook Caught Secretly Lobbying For Privacy-Destroying “Cyber-Security” Bill.”  

Even Snowden chimed in:


Shameful: @Facebook secretly backing Senate’s zombie surveillance bill while publicly pretending to oppose it. https://boingboing.net/2015/10/24/petition-facebook-betrayed-us.html 

The Unhackable iPhone Has Been Compromised: ‘Intelligence Agencies Can Intercept Calls, Messages, and Access Data’

The Unhackable iPhone Has Been Compromised: ‘Intelligence Agencies Can Intercept Calls, Messages, and Access Data’

unhackable-iphone

Iphone maker Apple, Inc. claimed last month that their latest iteration of the wildly popular handheld device was unhackable. According to HackRead, the company is so convinced of its security successes that they issued a statement saying that data stored on a phone secured with a front screen passcode was impossible to access – even by highly talented intelligence agencies:

The CIA and the FBI are always looking for backdoors in Apple devices, in fact, the agency spent years trying to hack iPhone and iPads according to documents released by NSA’s Edward Snowden.

Now, with the new upgraded operating systems, Apple has termed it “impossible” to access any data from Apple devices. Though, the company can still access data from older phones.

According to the Apple’s response to the court, 90 percent of the devices has ios 8 installed and with the type of encryption already there in the phone, it’s nearly impossible to access the data without the passcode, which is only known to the original owner. Even Apple itself cannot find the code.

But as we already know from recent hacks of Department of Defense computers, essential domestic grid infrastructure computers, and even NASA’s in-orbit spacecraft, in the digital age nothing is ever really secure.

Within hours of Apple releasing their latest iOS 9 update a cyber security firm known as Zerodium issued a challenge to the hacker community and offered up a $1 million bounty for any team that could bypass Apple’s latest security features. For weeks it appeared that Apple was right. Scores of hackers around the world burned the midnight oil trying to hack the iphone before Zerodium’s bounty expired.

But just few hours before the challenge came to end, one team submitted their exploits and vulnerabilities and Zerodium has confirmed that the Apple’s iOS 9 has been compromised.

…click on the above link to read the rest of the article…

What’s The Worst That Could Happen?

What’s The Worst That Could Happen?

Via ConvergEx’s Nicholas Colas,

The 30 stocks of the Dow Jones Industrial Average currently trade for an average of 14.8x next year’s consensus earnings.  But… Everyone knows Wall Street analysts are always too optimistic, so what if we just look at the lowest estimate for each company?  That “Worst Case scenario” P/E is 16.7x – not “Cheap”, but not crazy expensive either – and incorporates a decline in earnings from 2015 of 1.5%.

As tempting as it is to say “Buy stocks” with this math, the truth is hazier. In reality, markets currently discount this “Worst case” as the “Base case”.  With the 10 year Treasury yielding 2.1%, that 16.7x multiple is where stocks should actually trade.

The driver of this market pessimism sits at the top of the income statement – the Street’s worst case revenue estimates call for a decline of 1.7% in 2016.  Now, Q3 earnings season is unlikely to provide much comfort here; why should corporate managements go out on a guidance limb when their stocks are down on the year?  All this points to further volatility in October, and with a bias to the downside.

Of all the words of tongue or pen, the dumbest are these: “What’s the worst that could happen?”  I imagine every stupid stunt ever uploaded to Youtube started life with that question.  Skateboard off the roof of your parent’s house into the pool…  Taunt the chimps at the zoo…   Jump a bike over 17 of your friends…  That phrase is cursed.  Even a movie of the same name, starring Martin Lawrence and Danny DeVito, only has a 10% approval rating on Rotten Tomatoes.

In financial markets, however, this is one of the most important questions you can ask.  A few examples:

Every hedge fund uses some form of risk management to understand the worst case scenario for their portfolio. In general, the larger the firm and more complex the strategy, the more elaborate the analysis.

…click on the above link to read the rest of the article…

 

Tech Company Censorship – Apple Bans App Cataloguing Every U.S. Drone Strike; Facebook Blocks Ad for “Negativity”

Tech Company Censorship – Apple Bans App Cataloguing Every U.S. Drone Strike; Facebook Blocks Ad for “Negativity”

One thing I’ve learned from my three and a half years of writing publicly on the internet, is you never know which posts are going to go viral. Nothing proves this point more than last week’s post, The UN Releases Plan to Push for Worldwide Internet Censorship. Although I certainly thought it was an important story, I never expected it to become the beast it did.

The paragraph that really caught people’s eye was the following:

Under U.S. law — the law that, not coincidentally, governs most of the world’s largest online platforms — intermediaries such as Twitter and Facebook generally can’t be held responsible for what people do on them. But the United Nations proposes both that social networks proactively police every profile and post, and that government agencies only “license” those who agree to do so.

Interestingly, it appears Apple wants to get ahead of the curve and begin censoring news the U.S. government might find embarrassing right away.

As reported by Mic:

Freelance journalist and data artist Josh Begley has been methodically recording U.S. military drone activity for years. Every week or so — whenever the strikes occur — Begley will post a news story from the @dronestreamTwitter account, identifying when and where drone strikes have occurred before feeding the results into an app called Metadata+.

Longtime Liberty Blitzkrieg readers will be familiar with “Dronestream,” as I highlighted it all the way back in 2012 in the post: The Kid Who Tweets Every Drone Strike.

Now back to Mic.

But on Sunday, Dronestream tweeted that Metadata+, which sends out push notifications every time there is a U.S. drone strike, had been removed from the App Store after seven months of being openly available.

Apple still aspires to be a hub for serious news. It’s building tools like Apple News to help journalists and publishers reach new audiences. But Apple’s opaque filtering process shows that it may not be ready to decide for the public what kind of content we should or shouldn’t be exposed to.

The Pentagon Creates Partnership with Apple to Develop Wearable Tech

The Pentagon Creates Partnership with Apple to Develop Wearable Tech

Screen Shot 2015-08-28 at 10.49.50 AM

Last week, in the post JP Morgan Hires Recently Retired U.S. General, Raymond T. Odierno, I made the following observation:

How can you ensure that the interests of TBTF Wall Street mega banks and the military-intelligence-industrial complex remain aligned? Create a revolving door of course.

Of course it’s much, much bigger than this. The genius of the current status quo system is that it has created a complicated and opaque interlocking system of crony partnerships and interdependencies between the government, mega corporations and academia so massive, wealthy and powerful it has become exceedingly difficult to challenge. This is precisely because almost everyone now depends on it for their paychecks.

Creating such corrupt networks often happens in the shadows, and in recent years has taken the form of “public-private partnerships” and secret trade deals such as the TTP, TTIP and TISA. This is how modern America operates in a nutshell, and it’s continued metastasis is rapidly destroying what’s left of freedom, common sense and free markets in this nation.

Moving along to today’s post, how free does it make you feel that the Department of Defense is partnering with 162 companies, universities and other groups to develop wearable technology? How independent can these companies and universities actually be when they are engaged in such schemes with the U.S. government. The answer is obvious: Not independent at all.

From NBC News:

The Pentagon is teaming up with Apple, Boeing, Harvard and others to develop high-tech sensory gear flexible enough to be worn by people or molded onto the outside of a jet. 

The rapid development of new technologies is forcing the Pentagon to seek partnerships with the private sector rather than developing its technology itself, defense officials say. 

“I’ve been pushing the Pentagon to think outside our five-sided box and invest in innovation here in Silicon Valley and in tech communities across the country,” Defense Secretary Ash Carter said in prepared remarks on Friday. 

…click on the above link to read the rest of the article…

 

 

 

The Swiss National Bank Bought Another 500,000 AAPL Shares Just Before 10% Correction

The Swiss National Bank Bought Another 500,000 AAPL Shares Just Before 10% Correction

Three months ago we were stunned to learn, and report, that the Swiss National Bank – a central bank – had been one of the biggest buyers of AAPL stock in the first quarter, when it added 3.3 million shares to its existing position, or 60%, bringing the total to 9 million shares, for a grand total of $1.1 billion. Moments ago, the SNB which unlike the Fed and the other “serious” central banks releases a 10-Q divulging its equity holdings, updated on its latest stock portfolio.

We were amused to learn that in the quarter in which AAPL stock almost hit a new all time high, the Swiss money printing authority which reported a record $20 billion loss in the second quarter, and a record $52 billion in the first half, added another 500,000 AAPL shares, bringing its new grand total to a whopping 9.4 million shares, equivalent to $1.2 billion as of June 30 (well below that now following the recent 10% correction).

At $1.2 billion, AAPL remains the top holding of the SNB, almost double the second largest position, which as of June 30 was Exxon stock valued at $637 million (and is worth much less now, and has most likely been surpassed in notional terms by #3 MSFT).

So what are the the Swiss hedge fund with nearly $94 billion in equity holdings? Here is the full breakdown.

Now if only the Fed would be this transparent about its own equity holdings…

 

Crashing: Apple, Twitter, Oil, Commodities, Greek Stocks, Chinese Stocks

Crashing: Apple, Twitter, Oil, Commodities, Greek Stocks, Chinese Stocks

Crash - Public DomainThe month of August sure has started off with a bang.  Tech stocks are crashing, oil is crashing, industrial commodities are crashing, Greek stocks crashed the moment that the Greek stock market reopened for trading, and Chinese stocks continue to crash.  At this point we have not seen a broad crash of U.S. stocks yet, but it is important to note that the Dow is already down more than 700 points from the peak in May.  If it continues to slide like it has in recent days, it won’t be too long before we will officially reach “correction” territory.  Just a few days ago, I described August as a “pivotal month“, and so far that is indeed turning out to be the case.

A full-blown financial crisis has not erupted yet, but we are well on the way.  In this article, I want to look at a few of the “crashes” that are already happening…

Apple

This is more of a “correction” than a “crash”, but it is very noteworthy because it is happening to one of the most important U.S. stocks of all.  The price of Apple stock has already broken through the 200 day moving average, and at this point it is down nearly 11 percent from the peak

Shares of Apple are down 10.9% from their highest point in a year — which places the stock squarely in what’s considered to be a correction. The unofficial definition of a correction is a 10% or greater drop from a recent high. Shares of Apple hit a 52-week (and all-time) high on $134.54 on April 28.

 

…click on the above link to read the rest of the article…

 

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