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Tech
UQ Tech Companies
Tech Sector strong now- Apple and other tech companies
seeing strong growth
Richardson, Head of Investment at BlackRock, 15 (Heidi, February
27th, Market Realist, Strong Earnings Report Indicates US Tech Sectors
Strength, http://marketrealist.com/2015/02/strong-earnings-report-indicatesstrength-u-s-tech-sector/, 06/28/15, MM)
So where should investors look? We believe mature information technology
(or IT) companies are a potential bright spot. Unlike more defensive sectors
(such as utilities), price gains for mature tech stocks have largely
been led by earnings growth rather than by multiples expansion.
Were seeing the trend continue this earnings season. Apple was
the standout, of course. The company reported $18 billion in profit
and $74 billion in revenuethe most profitable quarter for any
company ever. Earnings per share (EPS) increased 48%, handily
beating expectations. (Source: Apple.) Microsoft (MSFT) and Google
(GOOG) have also reported earnings. Although both came in under
analysts estimates, Googles EPS and revenues are both up, and
Microsoft reported an uptick in sales of its mobile devices. Contrast
this with disappointing results for sectors such as financials, multinationals
and energy, and tech appears to be one of the few areas of the market
moving in the right direction. U.S. tech sector beating sales and EPS
expectations Enlarge Graph Market Realist A strong earnings report is a
tailwind for US tech stocks The US tech sector looks to be
fundamentally strong. The strong earnings report provided
momentum for the sector. The US tech sector (XLK) outperformed
the S&P 500 (SPY) (IVV) in terms of earnings growth. According to
FactSet, the earnings growth for tech companiesthat have
reported earnings so farhas been 9.6% for 4Q14. In contrast, for the
S&P 500 it has been 3.5%. Four out of the seven technology industries (QQQ)
experienced earnings growth. Three of the four industries exhibited doubledigit growth, according to FactSet. The strong earnings growth came despite
headwindsthe stronger US dollar hurting exporters and a weak global
economy. The previous graph shows the earnings per share, or EPS, and
sales beats by the tech sector and the S&P 500 ex-Tech. The tech sector
outperformed the broader market significantly. Apple EPS Apple reports
its best quarter ever Apple (AAPL) is the largest contributor to
earnings growth of both the tech sector and the S&P 500. Apple
reported an actual EPS of $3.06 for the last fiscal quarterup from $2.07
reported in 4Q13. According to FactSet, the exclusion of Apple would cause
the tech sectors earnings growth to fall to 1.9% from 9.6%. The earnings
growth rate for the S&P 500 would fall to 1.7% from 3.5%. The previous
graph shows Apples actual reported EPS over the last year. Apples iPhone
sales climbed to a whopping $74.5 million in the last quarter.
Qualcomm (QCOM) is Apples chip supplier. It stands to benefit from
the rise in sales too. Qualcomm enjoys 60% gross margins on
revenue. Revenue grew at a healthy five-year average rate of 28%. With
zero debt, robust cash reserves, and high dividend yields, the company looks
to be a good investment bet. In the next part of this series, well discuss how
cyclical trends will likely benefit the tech sector.
UQ Econ Strong
US Economy is strong now- economic growth and increased
consumer spending
Mutikani, Reuters Economic Correspondent, 15 (Lucia, June 25th,
Reuters, Robust U.S. consumer spending buoys economic growth outlook,
http://www.reuters.com/article/2015/06/25/us-usa-economyidUSKBN0P51J920150625?
feedType=RSS&feedName=everything&virtualBrandChannel=11563,
06/28/15, MM)
U.S. consumer spending recorded its largest increase in nearly six
years in May on strong demand for automobiles and other big-ticket
items, further evidence that economic growth was accelerating in
the second quarter. While other data on Thursday showed a modest increase in first-time applications
for unemployment benefits last week, the underlying trend in jobless claims continued to suggest the labor market
was tightening. The strengthening economy suggests the Federal Reserve could raise interest rates this year even
as inflation remains well below the U.S. central bank's 2 percent target. Many economists expect a rate hike in
rate in the first quarter, as the economy battled bad weather, port disruptions, a strong dollar and spending cuts in
the energy sector. From employment to the housing market, the economic data for May has been bullish. Even
manufacturing, which is struggling with the lingering effects of dollar strength and lower energy prices, is starting to
stabilize.
rate in the first quarter, as the economy battled bad weather, port disruptions, a strong dollar and spending cuts in
the energy sector. From employment to the housing market, the economic data for May has been bullish. Even
manufacturing, which is struggling with the lingering effects of dollar strength and lower energy prices, is starting to
stabilize.
http://www.nytimes.com/2015/06/26/business/economy/us-consumerspending-surges-brightening-economic-outlook.html?_r=0 //NK)
Consumer spending in the United States surged in May
with the biggest monthly increase in nearly six years a sign of
stronger economic growth ahead. The Commerce Department said on Thursday that
consumer spending rose 0.9 percent last month, up from a revised
0.1 percent increase in April. May spending registered the biggest gain since August 2009, an
indication that the positive impacts from the solid pace of hiring and
cheaper gasoline are starting to ripple through the economy. We are
WASHINGTON
finally seeing signs of consumers beginning to spend the gasoline savings they have been sitting on since the start
Personal income
also increased a healthy 0.5 percent. The savings rate for after-tax
income fell slightly to 5.1 percent from 5.4 percent. Until recently,
lower gas prices and an improved job market were not enough to
unlock greater consumer spending. Instead, Americans ramped up
their savings. This helped put their personal finances on a more
sustainable path, but it limited the ability of the overall economy,
which relies mostly on consumer activity, to grow at a faster pace
and potentially bolster their incomes. The consumer spending report confirms signs
elsewhere that people are loosening the grip on their wallets. Also Thursday, the Labor
Department said that the number of people seeking unemployment
aid rose slightly last week, but remained at a historically low level that signals
an improving job market. Applications rose 3,000 last week to a
seasonally adjusted 271,000, not far from the 15-year low reached
in April of 262,000. The four-week average, a less volatile measure, declined to 273,750.
Applications are a proxy for layoffs, so the low levels suggest that
businesses are confident enough in the economy to hold onto their
workers. The data also show that employers refrained from layoffs even as the economy contracted in the
of this year, said Paul Ashworth, chief United States economist at Capital Economics.
first three months of the year, a sign they saw the slowdown as temporary. Nearly 2.25 million people received
benefits, up 22,000 from the previous week. Still, the total number of beneficiaries has fallen 13 percent in the last
year.
aid. Some have exhausted all the aid available, which is capped at 26 weeks in most states. Others, like college
graduates looking for work, do not qualify for benefits.
downs, and the economy's poor performance early this year rekindled concerns that the expansion was in serious
jeopardy. Based on the economic data, we believe the expansion is midcycle. This is typically the longest phase of
the business cycle before moving into the late-cycle phase, characteristic of an overheated economy poised to slip
into recession. Read More: U.S. Economic Expansion Is Not in Jeopardy There are important questions. Is this
expansion getting old, and will it age similarly to prior ones? Long in the Tooth? While we're probably closer to the
expansion is 72 months old, but age is in the eye of the beholder. The three expansions prior to the Great Recession
lasted an average of 95 months. This is noticeably longer than the 58-month average for all expansions since 1945.
The average duration of an expansion between 1860 and 1945 was 26 months. While this expansion is already
Expansions normally
end when the economy overheats. For example, the past few
expansions have ended a few years after the economy reached full
employment, leading to an acceleration in wages and inflation and
tighter monetary policy. We don't expect the economy to reach full
employment until this time next year, implying the next recession
wouldn't be until sometime in 2019. Historical patterns are simply guideposts and should
longer than the average since World War II, expansions don't die of old age.
be interpreted carefully, particularly given that this expansion has been anything but normal. Focusing on when the
expansion will end can cause some to overlook how the economy changes as the expansion matures. Learning From
Historically, real
GDP growth has moderated as the expansion matures. This is unsurprising
History The unusual nature of this expansion suggests that it could age differently.
because as the expansion ages, the economy begins to run into capacity constraints and monetary and fiscal policy
transitions from being accommodative to restrictive. Because timing is important, we broke each post-World War II
expansion into thirds to gauge how parts of the economy have historically performed as each expansion matured. A
universal definition of economic expansion is lacking, but for this exercise, recovery and expansion are used
patterns. On average, corporate profit growth is noticeably stronger in the first third of an expansion than in the
second and third. Productivity demonstrates a similar pattern. On the other hand, wages and population growth are
stronger in the final third of an expansion. This all suggests that the best times for the current expansion have
passed. But history doesn't always repeat itself. Read More: Deep Dive Into U.S. Personal Income Why This Time Is
The demographic
composition of the U.S. will set the later portion of this expansion
apart from others. The share of those 65 and older is expected to
continue to climb because of the aging of the baby boomer
generation and increasing life expectancy. Over the next couple of
years this will weigh on consumer spending and the labor force
participation rate and potentially shorten the expansion by causing
the economy to achieve full employment faster. The potential offset
to this is the pent-up demand to form households. The prime
working-age group has started to expand again. Growth in the
prime working-age group will accelerate and be fairly strong just as
the economy enters the next recession. Read More: U.S. Economic Expansion Is Not in
as quickly, there may be less need to invest in equipment. Demographic Issues
Jeopardy
reports in recent
days show consumers spent more during the winterat retailers
and on health carethan previously thought. Because consumer
spending is such a big part of the U.S. economyrepresenting more
than two-thirds of outputmany private-sector economists are
revising their own estimates of first-quarter GDP. Forecasting firm
Macroeconomic Advisers now thinks the economy didnt contract at
all, and instead registered a flat 0.0% growth reading for the
quarter. Others such as JP Morgan Chase still think GDP fell, but at a milder 0.2% rate. The Commerce
the agency might have to essentially say, Nevermind. Thats largely because
Departments Bureau of Economic Analysis will give its own update on first-quarter GDP on June 24. As it does for
all economic reports, the government releases early estimates of measures like GDP, retail sales and employment
that are based on incomplete data. Once fresher data comes in, the government puts out revised figures. In the
case of GDP, the government releases an initial estimate, and then two revisions, for each quarter in the immediate
months after it ends. (It then revises them further the following year.) The initial reading of first-quarter GDP,
released in late April, showed 0.2% growth. The second reading, released last month, showed a 0.7% contraction
that was based largely on new data showing a surging trade deficit at the end of the quarter. So why is the first
GDP turned negative during a quarter. Even a reading of flat or meager growth would suggest a big slowdown in the
big picture remains little changed, with the economy still appearing overall to be growing at a sluggish 2% pace.
While
this expansion is already longer than the average since World War
II, expansions don't die of old age. Expansions normally end when
the economy overheats. For example, the past few expansions have ended a few years after the
economy reached full employment, leading to an acceleration in wages and inflation and tighter monetary policy.
of the past few expansions. Read More: Deep Dive Into U.S. GDP Rising interest rates will provide
an ironic boost to housing. In contrast to past recoveries, housing has contributed little to growth this expansion.
Higher interest rates could create an urgency for potential homebuyers to enter the market. Mortgage rates have
moved higher at times during the expansion with mixed implications for sales. However, as the Fed tightens it
past expansions. One reason is that pent-up demand may have been worked off over the past few years.
Businesses may also not need to invest as much in equipment because the economy's potential has declined.
Businesses are already spending more on equipment per worker than at any time in history. With the supply of labor
not increasing as quickly, there may be less need to invest in equipment.
alongside inadequate resolution of the banking mess: zero justice amid a bit of point-scoring against those with the
economic dialogue, some correspondents may reflect that the US government has perhaps overcompensated for its
laissez faire economics with a rather trenchant enthusiasm for intervention in other nations foreign affairs.
Nevertheless, calculating the bread and circuses indicator of human life ,
Its
shining bright over a U.S. tech market that in the past year has
experienced almost unprecedented growth largely thanks to
foreign sales. As to impending Armageddon for the tech sector, to
date no one has positively identified a single nickel of tech industry
revenue or profit lost due to foreign customers purported anger
over the NSA. On the contrary, the U.S. technology and aligned sectors in defense have enjoyed a banner
yet. A few points to consider: U.S. tech stocks are near an all-time high. The
Morgan Stanley High-Technology Index 35, which includes Amazon,
Apple, Google, Microsoft and Netflix among the most vociferous
Internet and cloud companies blaming NSA for lost profits today
stands 23.4% higher than its 52-week low one year ago when antisurveillance furor reached its peak. In recent weeks the index has stood as high as 25%
above the October 2013 low point. Not too shabby for a sector supposedly on the ropes. Foreign sales lead the
march to U.S. tech profits. According to an AP story posted after 2Q2014 earnings: Technology
trendsetters Apple Inc., Google Inc., Facebook Inc. and Netflix Inc.
all mined foreign countries to produce earnings or revenue that
exceeded analysts projections in their latest quarters. In the
second quarter, Google generated 58% of its revenue outside the
U.S. Facebook continued to draw 55% of revenue from overseas.
Netflix added 1.1 million new foreign subscribers double the number won in the
U.S. and Canada during the second quarter. Apple reported soaring sales of its iPhone
in China, Russia, India and Brazil, offsetting tepid growth in the U.S.
Net net, the industrys biggest gains came in the very markets that tech leaders last year cited as being at risk.
defense sales.
To be sure, the defense market is a tough one. However, when U.S.sales are lost its not
because a foreign buyer was angry over NSA and decided to buy weapons systems in-country. More often the
answer is far simpler: competition from a major non-U.S. player. Example: Turkeys decision to dis Raytheons bid
for a long range air defense system was a simple dollars and cents matter: China, not exactly a bastion of human
rights, won the contract. Russian and European companies were also among the losers. No one uttered a peep
peep about the NSA. Defense executives dont sit around fretting about foreign sales supposedly lost due to U.S.
spying. Their real worry is China, an increasingly aggressive player in the defense systems market.
Aspects
of the original article and the policy paper show how easily
speculation is presented as fact by sloppy authors eager to make a
point without bothering to check their facts: Nowhere in the
International Business Times story is any evidence produced
showing AWS, Dropbox or Azure losing business. Nor is any concrete number on
article quotes the companys CEO Mateo Meier claiming a 45% jump in revenue during that period.
losses presented. The closest the reporter can come is to aver: However now services like Dropbox, AWS and Azure
are seen as potentially insecure. . .. Seen by whom? The IBT doesnt say. The OTI policy paper cites the IBT article
as the source for an assertion that companies like Dropbox and Amazon were beginning to lose business to
overseas business. Remember: the IBT didnt cite any losses by these companies it merely said they were
seen [by unnamed sources] as potentially insecure. Its anybodys guess whether Artmotion is Switzerlands
biggest (or smallest) offshore hosting company. Artmotion is a privately held company. It does not provide any
public data on finances, numbers of employees or clients, or any other information that could be used to determine
handing over their data to third party cloud providers, are notoriously slow to embrace change. The likelihood of
FTSE1000 companies shifting cloud service providers in three weeks! is preposterous. Even Mom and Pop
cloud customers would scarcely be apt to change their minds and shift all their cloud-stored data that quickly. Even
assuming that the overnight 45% revenue boost claim is true, where is the proof tying this cash surge to non-U.S.
customers defecting from Amazon, Dropbox or Google to Artmotion? Answer: There is no proof. Its pure hearsay. If
were picking on Artmotion overmuch, its for good cause. This case study is the most substantial proof in the
entire OTI paper. From there it degenerates into even more dubious assessments by analysts and industry think
tanks. Of these, one of the better studies is by the International Technology and Innovation Foundation (ITIF),
generally hailed as a non-partisan group. Published in August 2013, the report honestly states that at that early
date, the data are still thin clearly this is a developing story and perceptions will likely evolve. But even ITIF
resorts to maybes versus facts. Example: a projection that U.S. cloud computing companies might lose US $21.5
billion by 2016, presuming that 10% of foreign customers flee, or up to US$ 35 billion assuming a 20% attrition rate.
The basis for these assumptions: a survey by yet another think tank, The Cloud Security Alliance, which found 10%
of non-U.S. respondents saying they had cancelled a project with a U.S. cloud communications provider. And so it
early days, when emotions on the NSA ran high. If the current
numbers exist bearing out the case for NSA spying damaging U.S.
tech companies foreign sales, then why doesnt OTI quote them?
Instead, the farther one progresses into the OTI policy paper, the more infatuated its authors become with wildly
exaggerated projections of tech industry losses. Within a few paragraphs of ITIFs claims of cloud losses reaching
$US 35 billion, we find a truly astounding quote from Forrester Research. Not to be outdone by a mere think tank,
the famous industry analyst group forecasts U.S. cloud company losses of $US 180 billion by 2016. Thats a good
trick for an industry whose total growth was projected to reach just $US 210 billion also by the year 2016 and
also by Forrester, just a few months earlier. Great Oogly Moogly its Google! Again, one must ask: How could an
ostensibly reputable organization such as the Open Technology Institute churn out such rubbish and what was
the motive? One neednt look too far for the answer .
Likewise, last
month, six technology trade groups wrote to the White House to
urge reforms in the spy programs, citing what it called a "study"
predicting a $35 billion cumulative shortfall by 2016 in the vital
economic sector. That number, it turns out, was extrapolated from a
security trade group's survey of 207 non-U.S. members - and the
group, the Cloud Security Alliance, had explicitly cautioned that its
members weren't representative of the entire industry. "I know you
want sectors and numbers, but I don't have it," said Ed Black,
president of the Computer & Communications Industry Association,
one of the trade groups behind the letter. "Anybody who tells you
they do is making it up." The trade groups aren't the only ones issuing dismal, and headlinemitigated if it were allowed to comment with precision about its intelligence dealings.
grabbing, forecasts. Forrester Research analyst James Staten wrote of the $35 billion figure: "We think this estimate
is too low and could be as high as $180 billion, or a 25 percent hit to overall IT service provider revenues." Staten's
comments generated dozens of media stories, some of which neglected to mention that Staten said the worst
would come to pass only if businesses decided that spying was a bigger issue than the savings they gained from a
shift to cloud computing. In an interview with Reuters, Staten said he didn't believe that would be the case. "I don't
think there's going to be a significant pullback," he said, though the rate of growth could slow for a couple of years.
smartphone-carrying consumers will switch allegiances faster than you can say customer relationship
Oracle Industry Connect in Boston, where more than 1,500 business and technology executives from the
communications, financial services, health sciences, retail, and utilities industries, and those from project-intensive
industries such as construction and manufacturing, came together to delve deeply into whats happening in their
sectors. They also shared ideas and best practices where theres common ground. People want to learn, borrow,
and understand what other industries are doing to solve similar problems, said Bob Weiler, Executive Vice
President of Oracles Global Business Units. The customer experience is one such areaa challenge, opportunity,
The
customer is in the drivers seat. We need to get in front of what her
needs are, said Karen Katz, CEO and President of Neiman Marcus
Group , during the Oracle Industry Connect keynote for retailers.
Companies can best manage such challenges with industry-specific
capabilities that are designed for the business theyre in, Hurd said. Neiman
business goal, and IT undertaking all rolled into one here-and-now, make-or-break imperative.
Marcus, for example, is deploying Oracle Retail solutions to create a more seamless omni-channel experience
across its stores, call centers, and website, and to help with demand forecasting and other retail operations. What
more can companies do to regain their footing in this fast-changing environment where customers already have the
upper hand and are about to wield even more clout and influence? Here are 10 trends that jumped out during the
keynotes and sessions I attended at Oracle Industry Connect. Companies that recognize and respond to these
trends will be in a better position to attract, engage, and retain their most influentialand most finicky!
customers. Customers want to co-create their experience with your company. As businesses pursue customer
experience, or CX, strategies, they must remember that social-savvy customers, who are more empowered than
ever, expect to have a say in the ongoing relationship they have with the company. Mike Webster, Senior Vice
President and General Manager of Oracles Retail Global Business Unit, shared the results of a survey, titled The
New Retail Democracy, which shows that 73 percent of respondents favor the idea of individual retail.
industry-specific research and development, so companies can capitalize on that work without having to do the
heavy lifting themselves. Innovation has become a distributed dynamic. R&D, which used to happen behind closed
doors, is becoming a more open, iterative process. Because businesses are already behind the tech innovation
curve (see trend #2 above), they must find ways to tap into the innovation happening all around them. Were
moving to distributed innovation processes, said Professor James Cash of Harvard Business School. The
innovation going on in the rest of the world can probably overwhelm what companies can do internally. (For an
example of how one company is using external innovation to create new customer-facing services, see BTs New
Playing Field Combines Broadband, Innovation, and Global Sports.) Big data remains a huge opportunity.
Businesses recognize the potential of big data, but few have the pieces in place to convert that potential into a
business advantage. Sonny Singh, Senior Vice President and General Manager of Oracles Financial Services Global
Business Unit, said 63 percent of respondents to an Oracle survey gave their organizations a grade of C or lower
in preparedness for the data deluge. Here too, industry-specific solutions can help. Check out my blog post on the
trend among with a data model, middleware, and analytics suited to their needs. Companies are moving beyond
old-style business and IT alignment. There was a time when CEOs could take comfort in knowing that their business
The U.S.
economy expanded at a meager rate of just 0.2 percent in the first
three months of 2015, and that figure could be revised lower,
according to the Wall Street Journal. The poor performance can be
attributed, at least in part, to low oil prices. MORE: A potentially massive win for
fracking in Texas That is because the U.S. is not just a major oil importer,
but also a massive oil producer. The fall in oil prices has inflicted
widespread damage on oil-producing states like Texas, Alaska,
North Dakota, and Louisiana. If not for severe cutbacks in capital
investment on behalf of American oil companies and other related
sectors, U.S. GDP would have been 0.75 percentage points higher.
positive impact" on the American economy. But fresh economic data is confounding that projection.
Tech Bad
Tech innovation is bad
David Rotman 6/12/13 (MIT technology review board. As the editor of MIT Technology
Review, I spend much of my time thinking about the types of stories and journalism that will
be most valuable to our readers. What do curious, well-informed readers need to know about
emerging technologies? As a writer, I am particularly interested these days in the
intersection of chemistry, materials science, energy, manufacturing, and economics.)
Given his calm and reasoned academic demeanor, it is easy to miss just how provocative Erik Brynjolfssons
contention really is. Brynjolfsson, a professor at the MIT Sloan School of Management, and his collaborator and
impressive advances in
computer technologyfrom improved industrial robotics to
automated translation servicesare largely behind the sluggish
employment growth of the last 10 to 15 years. Even more ominous
for workers, the MIT academics foresee dismal prospects for many
types of jobs as these powerful new technologies are increasingly
adopted not only in manufacturing, clerical, and retail work but in
professions such as law, financial services, education, and medicine.
That robots, automation, and software can replace people might
seem obvious to anyone whos worked in automotive manufacturing or as a travel agent. But
Brynjolfsson and McAfees claim is more troubling and controversial. They
believe that rapid technological change has been destroying jobs
faster than it is creating them, contributing to the stagnation of
median income and the growth of inequality in the United States.
And, they suspect, something similar is happening in other
technologically advanced countries. Perhaps the most damning piece of evidence,
coauthor Andrew McAfee have been arguing for the last year and a half that
according to Brynjolfsson, is a chart that only an economist could love. In economics, productivitythe amount of
economic value created for a given unit of input, such as an hour of laboris a crucial indicator of growth and
wealth creation. It is a measure of progress. On the chart Brynjolfsson likes to show, separate lines represent
productivity and total employment in the United States. For years after World War II, the two lines closely tracked
each other, with increases in jobs corresponding to increases in productivity. The pattern is clear: as businesses
generated more value from their workers, the country as a whole became richer, which fueled more economic
activity and created even more jobs. Then, beginning in 2000, the lines diverge; productivity continues to rise
robustly, but employment suddenly wilts. By 2011, a significant gap appears between the two lines, showing
economic growth with no parallel increase in job creation. Brynjolfsson and McAfee call it the great decoupling.
And Brynjolfsson says he is confident that technology is behind both the healthy growth in productivity and the
Brynjolfsson can point to a second chart indicating that median income is failing to rise even as the gross domestic
are sometimes accused of being too optimistic about the extent and speed of recent digital advances. Brynjolfsson
says they began writing Race Against the Machine, the 2011 book in which they laid out much of their argument,
because they wanted to explain the economic benefits of these new technologies (Brynjolfsson spent much of the
1990s sniffing out evidence that information technology was boosting rates of productivity). But it became clear to
them that the same technologies making many jobs safer, easier, and more productive were also reducing the
demand for many types of human workers. Anecdotal evidence that digital technologies threaten jobs is, of course,
everywhere. Robots and advanced automation have been common in many types of manufacturing for decades. In
the United States and China, the worlds manufacturing powerhouses, fewer people work in manufacturing today
than in 1997, thanks at least in part to automation. Modern automotive plants, many of which were transformed by
industrial robotics in the 1980s, routinely use machines that autonomously weld and paint body partstasks that
were once handled by humans. Most recently, industrial robots like Rethink Robotics Baxter (see The Blue-Collar
Robot, May/June 2013), more flexible and far cheaper than their predecessors, have been introduced to perform
simple jobs for small manufacturers in a variety of sectors. The website of a Silicon Valley startup called Industrial
Perception features a video of the robot it has designed for use in warehouses picking up and throwing boxes like a
bored elephant. And such sensations as Googles driverless car suggest what automation might be able to
accomplish someday soon. A less dramatic change, but one with a potentially far larger impact on employment, is
taking place in clerical work and professional services. Technologies like the Web, artificial intelligence, big data,
and improved analyticsall made possible by the ever increasing availability of cheap computing power and
storage capacityare automating many routine tasks. Countless traditional white-collar jobs, such as many in the
post office and in customer service, have disappeared. W. Brian Arthur, a visiting researcher at the Xerox Palo Alto
Research Centers intelligence systems lab and a former economics professor at Stanford University, calls it the
autonomous economy. Its far more subtle than the idea of robots and automation doing human jobs, he says: it
involves digital processes talking to other digital processes and creating new processes, enabling us to do many
It is this onslaught of
digital processes, says Arthur, that primarily explains how
productivity has grown without a significant increase in human
labor. And, he says, digital versions of human intelligence are
increasingly replacing even those jobs once thought to require
people. It will change every profession in ways we have barely
seen yet, he warns. McAfee, associate director of the MIT Center for Digital Business at the Sloan
things with fewer people and making yet other human jobs obsolete.
School of Management, speaks rapidly and with a certain awe as he describes advances such as Googles driverless
wrong, he says, but when all these science-fiction technologies are deployed, what will we need all the people
for?
Cybersecurity
number one lesson is you will screw up if you use products which havent
been properly tested.
NSA decryption doesnt actually expose US to cyberattacksthere is alternative causes to encryption bypasses
Acohido 13 (Byron, Pulitzer-winning tech reporter, USA Today, The case
supporting the NSA's PRISM decrypting,
http://www.usatoday.com/story/cybertruth/2013/09/06/the-case-supportingthe-nsas-prism-decrypting/2776087/)
More reaction from the global technology community is surfacing this
morning about how the New York Times has spun the spying details
contained in 50,000 pages of PRISM documents outed by Edward Snowden.
A consensus is gelling that the NSA -- in using brute-force password
hacking techniques, cracking into Virtual Private Networks and
Secure Sockets Layer services and taking steps to weaken certain
inherently weak encryption protocols is simply doing what the NSA
has always done, and was, in fact, created to do: keep the U.S.
competitive in the spy-vs-spy world. Based on the information outed by
Snowden, the global tech community, and the cyberunderground, now has
more details about the narrow technical parameters the NSA has used for
doing this. Dave Jevans, chief technology officer of mobile security firm
Marble Security, says it's possible that with the NSA's multi-billion dollar
budget and tens of thousands of employees, the agency may have
discovered mathematical techniques to weaken certain cryptographic
systems. "However, such fundamental mathematical research doesn't
constitute back doors or other covert agendas," Jevans says.
"Perhaps the NSA has discovered ways to crack these systems that
have not been discovered by the smartest researchers in academia
and industry. But there's no law against clever mathematicians
creating new encryption schemes." Jevans says he disagrees with
the characterization that the NSA, through the use of billions of
dollars of research, has exposed the U.S. to cyberattacks. "It's just
ludicrous," Jevans says. "It's not like the NSA posted open source
tools to crack encryption." Dave Frymier, vice president and chief
information security officer of IT company Unisys, opines "the NSA is doing
what intelligence agencies are supposed to do gather
intelligence." The methods and techniques outlined in the Times' report
"have little to do with the underlying encryption technology and everything
to do with compromising one side of a two-way conversation or
compromising encryption keys," Frymier says. "There are many
implementations of encryption algorithms, any of which are subject
implementation bugs, same as any software." Jakob Ehrensvard, chief
technology officer at Yubico, an authentication security company, which also
manufacturers hardware security modules, points out that Secure Sockets
Layer and Transport Layer Security are the standard security technologies for
establishing an encrypted link between a web server and a browser. "There
are some by-design weaknesses with the concept of SSL/TLS, which could be
exploited by not only governments but also fraudulent users," Ehrensvard
observes. "They basically allow anyone to connect to anyone and establish
confidentiality." Dave Anderson, a senior director with Voltage Security,
emphasizes that encryption, in general, is robust technology. "It seems
likely that any possible way that the NSA might have bypassed
encryption was almost certainly due to a flaw in the key
management processes that support the use of encryption, rather
than through the cryptography itself," says Anderson. "So, is it
possible that the NSA can decrypt financial and shopping accounts?
Perhaps, but only if the cryptography that was used to protect the
sensitive transactions was improperly implemented."
Bullrun K2 Cybersecurity
NIST increasingly key to cybersecurity
Chapman, 14 (Cate, Editor of Advisen Risk Network, NIST emerges as a
very important tool http://www.cyberrisknetwork.com/2014/10/30/nistemerges-important-tool/)//MEB
The NIST Cybersecurity Framework is already helping underwriters to
assess cyber risk and may provide a standard of care for
negligence-based cases going forward. That was the consensus of industry experts
discussing standards and guidelines for managing cyber risk at Advisens Cyber Risk Insights Conference in New
York this week. The voluntary guide for nationally critical industries on improving cyber security and resiliency was
NSA disclosures have the effect of improving internet securitymoney dedicated to improving security
Thomson, Technology Reporter for the Register, 14 (Iain, June
12th, The Register, Tech companies are raising their game (and pants) postSnowden,
http://www.theregister.co.uk/2014/06/12/safe_in_our_hands_security_industry
_takes_a_hit_from_snowdens_year/?page=1, 06/28/15, MM)
If theres a positive to the disclosures by ex-National Security
Contractor (NSA) contractor Edward Snowden, its that its been a
disaster for technology and internet firms. Yes, a positive. In the last year
weve learned the NSA has backdoors placed in the hardware that makes networks, the existence of massive
funnels placed in internet and phone companies data centers to suck up vast amounts of data, and the breaking of
generally assumed the government was carrying out some sorts of surveillance against key targets and that the
bright boys and girls at the National Security Agency (NSA) could subvert security systems if they really wanted to.
given pretty much a blank check and can spend whatever they want
to spend to protect the link between the user and the company."
However, Soghoian pointed out that this is only half of the solution. Google and others pay for "free" email systems by trawling
through the data consumers give them and selling advertising based around that. That business model isnt going to change any
: security
folks can, and are, making things better Snowden hasnt given
many interviews since going on the run, but one of the messages he
has consistently put out is that good encryption is still safe from the
prying eyes of the NSA. Yet even that isnt a perfect solution. In December 2013, a report from Reuters
time soon, he warned, but as long as it's in place the NSA will try to subvert it". Christopher Soghoian Soghoian
claimed that the NSA had deliberately weakened the Dual Elliptic Curve Deterministic Random Bit Generator (Dual EC DRBG) that
had been signed off by the National Institute of Standards and Technology, and had allegedly paid securo-firm RSA a $10m contract
to add the system into its security products. RSA has consistently denied that it accepted any money to include a weakened security
protocol, but that didnt stop some key members of the security community from boycotting the security company's annual show
this year and setting up a rival TrustyCon get-together. The row has led some to declare that common encryption standards are
likely to be subverted and that the peer-review systems used to check out technology are broken, but in fact the reverse is true,
they really care about you. The goal is to raise the cost so that bulk surveillance becomes impossible. If the NSA really cares about
you they will show up, break into your house and install malware on your laptop.
Turn-NSA revelations actually have a positive impact on techlittle consequences for major companies and more business for
encryption companies
Menn 13 (Joseph, technology projects reporter, Reuters 9-15, Analysis:
Despite fears, NSA revelations helping U.S. tech industry,
http://www.reuters.com/article/2013/09/15/us-usa-security-snowden-techanalysis-idUSBRE98E08S20130915)
Edward Snowden's unprecedented exposure of U.S. technology
companies' close collaboration with national intelligence agencies,
widely expected to damage the industry's financial performance
abroad, may actually end up helping. Despite emphatic predictions
of waning business prospects, some of the big Internet companies
that the former National Security Agency contractor showed to be
closely involved in gathering data on people overseas - such as
Google Inc. and Facebook Inc. - say privately that they have felt
little if any impact on their businesses. Insiders at companies that
offer remote computing services known as cloud computing,
including Amazon and Microsoft Corp, also say they are seeing no
fallout. Meanwhile, smaller U.S. companies offering encryption and
related security services are seeing a jump in business overseas,
along with an uptick in sales domestically as individuals and
companies work harder to protect secrets. "Our value proposition had
been that it's a wild world out there, while doing business internationally you
need to protect yourself," said Jon Callas, co-founder of phone and text
encryption provider Silent Circle, where revenue quadrupled from May to
June on a small base. "Now the message people are getting from the
newspapers every day is that it's a wild world even domestically."
PROPHESIES OF DOOM Shortly after Snowden's leaked documents
detailed collaboration giving the NSA access to the accounts of tens
of thousands of net companies' users, the big Internet companies
and their allies issued dire warnings, predicting that American
businesses would lose tens of billions of dollars in revenue abroad
as distrustful customers seek out local alternatives. In a federal
court filing last week, Google said that still-unfolding news coverage
was causing "substantial harm to Google's reputation and
business". The company said that could be mitigated if it were
allowed to comment with precision about its intelligence dealings.
Likewise, last month, six technology trade groups wrote to the
White House to urge reforms in the spy programs, citing what it
called a "study" predicting a $35 billion cumulative shortfall by 2016
in the vital economic sector. That number, it turns out, was
extrapolated from a security trade group's survey of 207 non-U.S.
members - and the group, the Cloud Security Alliance, had explicitly
cautioned that its members weren't representative of the entire
industry. "I know you want sectors and numbers, but I don't have
it," said Ed Black, president of the Computer & Communications
Industry Association, one of the trade groups behind the letter.
"Anybody who tells you they do is making it up." The trade groups
aren't the only ones issuing dismal, and headline-grabbing, forecasts.
Forrester Research analyst James Staten wrote of the $35 billion
figure: "We think this estimate is too low and could be as high as
$180 billion, or a 25 percent hit to overall IT service provider
revenues." Staten's comments generated dozens of media stories,
some of which neglected to mention that Staten said the worst
would come to pass only if businesses decided that spying was a
bigger issue than the savings they gained from a shift to cloud
senior Google engineer Bill Coughran, now a partner at Sequoia Capital, said
that even in the worst-case scenario, those companies would simply spend
extra to manage more Balkanized systems. Another possibility is that techbuying companies elsewhere believe that their own governments have
scanning procedures that are every bit as invasive as the American
programs. Some think it's just a matter of time, however, before U.S.
industry suffers significantly. "Industry is still in denial," said Caspar Bowden,
once the chief privacy officer at Microsoft and now an independent
researcher and privacy advocate in Europe. "It's like Wile E. Coyote running
over the cliff, his legs are still turning but he hasn't started falling yet." BOON
FOR ENCRYPTION SECTOR As for the upside, so far only a minority of
people and businesses are tackling encryption on their own or
moving to privacy-protecting Web browsers, but encryption is
expected to get easier with more new entrants. Snowden himself
said that strong encryption, applied correctly, was still reliable,
even though the NSA has cracked or circumvented most of the
ordinary, built-in security around Web email and financial
transactions. James Denaro, a patent attorney with security training in
Washington, was already using Pretty Good Privacy (PGP), a complicated
system for encrypting email, before the Snowden leaks. Afterward, he
adopted phone and text encryption as well to protect client information.
"One of the results we see from Snowden is an increased awareness
across the board about the incredible cyber insecurity," Denaro
said. Some early adopters of encryption have senior jobs inside
companies, and they could bring their habits to the office and
eventually change the technology habits of the whole workplace, in
the same way that executive fondness for iPhones and iPads
prompted more companies to allow them access to corporate
networks. "Clients are now inquiring how they can protect their data
overseas, what kinds of access the states might have and what controls or
constraints they could put in with residency or encryption," said Gartner
researcher Lawrence Pingree, formerly chief security architect at PeopleSoft,
later bought by Oracle. Richard Stiennon, a security industry analyst and
author, predicted that security spending will rise sharply. A week ago, Google
said it had intensified encryption of internal data flows after learning about
NSA practices from Snowden's files, and consultants are urging other big
businesses to do the same. Stiennon said that after more companies encrypt,
the NSA and other agencies will spend more to break through, accelerating a
lucrative cycle. "They will start focusing on the encrypted data, because
that's where all the good stuff is," Stiennon said. Already, in a fiscal 2013
federal budget request from the intelligence community published this
Impact D- No Retal
Cyber attacks dont have very significant effects-impacts have
been severely overestimated
Healey 13 (Jason, director of the Cyber Statecraft Initiative at the Atlantic
Council, US News 3-20, No, Cyberwarfare Isn't as Dangerous as Nuclear
War, http://www.usnews.com/opinion/blogs/world-report/2013/03/20/cyberattacks-not-yet-an-existential-threat-to-the-us)
America does not face an existential cyberthreat today, despite
recent warnings. Our cybervulnerabilities are undoubtedly grave and the
threats we face are severe but far from comparable to nuclear war. The
most recent alarms come in a Defense Science Board report on how
to make military cybersystems more resilient against advanced
threats (in short, Russia or China). It warned that the "cyber threat
is serious, with potential consequences similar in some ways to the
nuclear threat of the Cold War." Such fears were also expressed by
Adm. Mike Mullen, then chairman of the Joint Chiefs of Staff, in
2011. He called cyber "The single biggest existential threat that's
out there" because "cyber actually more than theoretically, can
attack our infrastructure, our financial systems." While it is true
that cyber attacks might do these things, it is also true they have
not only never happened but are far more difficult to accomplish
than mainstream thinking believes. The consequences from cyber
threats may be similar in some ways to nuclear, as the Science Board
concluded, but mostly, they are incredibly dissimilar. Eighty years ago, the
generals of the U.S. Army Air Corps were sure that their bombers
would easily topple other countries and cause their populations to
panic, claims which did not stand up to reality. A study of the 25year history of cyber conflict, by the Atlantic Council and Cyber
Conflict Studies Association, has shown a similar dynamic where the
impact of disruptive cyberattacks has been consistently
overestimated. Rather than theorizing about future cyberwars or
extrapolating from today's concerns, the history of cyberconflict
that have actually been fought, shows that cyber incidents have so
far tended to have effects that are either widespread but fleeting or
persistent but narrowly focused. No attacks, so far, have been both
widespread and persistent. There have been no authenticated cases
of anyone dying from a cyber attack. Any widespread disruptions,
even the 2007 disruption against Estonia, have been short-lived
causing no significant GDP loss. Moreover, as with conflict in other
domains, cyberattacks can take down many targets but keeping
them down over time in the face of determined defenses has so far
been out of the range of all but the most dangerous adversaries
such as Russia and China. Of course, if the United States is in a
conflict with those nations, cyber will be the least important of the
existential threats policymakers should be worrying about.
Plutonium trumps bytes in a shooting war. This is not all good news.
Policymakers have recognized the problems since at least 1998 with little
significant progress. Worse, the threats and vulnerabilities are getting
steadily more worrying. Still, experts have been warning of a cyber Pearl
Harbor for 20 of the 70 years since the actual Pearl Harbor. The transfer of
U.S. trade secrets through Chinese cyber espionage could someday
accumulate into an existential threat. But it doesn't seem so seem
just yet, with only handwaving estimates of annual losses of 0.1 to
0.5 percent to the total U.S. GDP of around $15 trillion. That's bad,
but it doesn't add up to an existential crisis or "economic cyberwar."
Instead, the true existential cyberdanger is likely to come after America
connects the electrical grid and other infrastructure to the Internet. An
interconnected Smart Grid connects things made not just of bytes and silicon
but of concrete and steel. It is all too likely that America will take its
overstretched and insecure electrical system and connect it to the Internet.
In this future our electric supply is no more or less reliable than the Internet
and the years when no one died because of cyberattacks will seem like the
quaint good ol' days. There are still practical solutions to avoid today's
serious threats become tomorrow's existential ones but these are often
overshadowed by the rhetoric of cyberwar, the push for ever better U.S.
cyberoffense, and other distractions. Focusing on actual fixes, like securing
the Smart Grid, will be the best ways to avoid future existential attacks.
such
terrorist-initiated Internet attacks should be no harder to protect
against than the financially-motivated and hacktivist attacks that
organisations defend themselves against every day. So, when a
journalist asks me if I think cyber terrorism is a big concern, I tend
to shrug and say Not that much and ask them to consider why Al
Qaeda, for instance, never bothered to launch a serious Internet
attack in the 13 years since September 11. After all, if it is
something for us all to fear why wouldnt they have done it
already? So, I was pleased to have my views supported last week from a perhaps surprising source. GCHQ,
government that should have been better protected or potentially disrupt economies. But still,
the UK intelligence agency which has become no stranger to controversy following the revelations of NSA
some ways to nuclear, as the Science Board concluded, but mostly, they are incredibly dissimilar. Eighty years ago,
the generals of the U.S. Army Air Corps were sure that their bombers would easily topple other countries and cause
their populations to panic, claims which did not stand up to reality. A study of the 25-year history of cyber conflict,
the
impact of disruptive cyberattacks has been consistently
overestimated. Rather than theorizing about future cyberwars or extrapolating from today's concerns,
by the Atlantic Council and Cyber Conflict Studies Association, has shown a similar dynamic where
the history of cyberconflict that have actually been fought, shows that cyber incidents have so far tended to have
2007 disruption against Estonia, have been short-lived causing no significant GDP loss. Moreover, as with conflict in
other domains, cyberattacks can take down many targets but keeping them down over time in the face of
determined defenses has so far been out of the range of all but the most dangerous adversaries such as Russia and
recognized the problems since at least 1998 with little significant progress. Worse, the threats and vulnerabilities
are getting steadily more worrying. Still, experts have been warning of a cyber Pearl Harbor for 20 of the 70 years
since the actual Pearl Harbor. The transfer of U.S. trade secrets through Chinese cyber espionage could someday
accumulate into an existential threat. But it doesn't seem so seem just yet, with only handwaving estimates of
annual losses of 0.1 to 0.5 percent to the total U.S. GDP of around $15 trillion. That's bad, but
it doesn't
Time for a reality check: Cyberwar is still more hype than hazard.
Consider the definition of an act of war: It has to be potentially violent, it has
to be purposeful, and it has to be political. The cyberattacks weve seen so
far, from Estonia to the Stuxnet virus, simply dont meet these criteria. Take
the dubious story of a Soviet pipeline explosion back in 1982, much
cited by cyberwars true believers as the most destructive
cyberattack ever. The account goes like this: In June 1982, a Siberian
pipeline that the CIA had virtually booby-trapped with a so-called logic
bomb exploded in a monumental fireball that could be seen from space. The
U.S. Air Force estimated the explosion at 3 kilotons, equivalent to a small
nuclear device. Targeting a Soviet pipeline linking gas fields in Siberia to
European markets, the operation sabotaged the pipelines control systems
with software from a Canadian firm that the CIA had doctored with malicious
code. No one died, according to Thomas Reed, a U.S. National Security
Council aide at the time who revealed the incident in his 2004 book, At the
Abyss; the only harm came to the Soviet economy. But did it really
happen? After Reeds account came out, Vasily Pchelintsev, a former KGB
head of the Tyumen region, where the alleged explosion supposedly took
place, denied the story. There are also no media reports from 1982 that
confirm such an explosion, though accidents and pipeline explosions in the
Soviet Union were regularly reported in the early 1980s. Something likely did
happen, but Reeds book is the only public mention of the incident and his
account relied on a single document. Even after the CIA declassified a
redacted version of Reeds source, a note on the so-called Farewell Dossier
that describes the effort to provide the Soviet Union with defective
technology, the agency did not confirm that such an explosion occurred. The
available evidence on the Siberian pipeline blast is so thin that it shouldnt
be counted as a proven case of a successful cyberattack. Most other
commonly cited cases of cyberwar are even less remarkable. Take
the attacks on Estonia in April 2007, which came in response to the
controversial relocation of a Soviet war memorial, the Bronze Soldier. The
well-wired country found itself at the receiving end of a massive
distributed denial-of-service attack that emanated from up to 85,000
hijacked computers and lasted three weeks. The attacks reached a peak on
May 9, when 58 Estonian websites were attacked at once and the online
services of Estonias largest bank were taken down. Whats the difference
between a blockade of harbors or airports of sovereign states and the
blockade of government institutions and newspaper websites? asked
Estonian Prime Minister Andrus Ansip. Despite his analogies, the attack
was no act of war. It was certainly a nuisance and an emotional
strike on the country, but the banks actual network was not even
penetrated; it went down for 90 minutes one day and two hours the
next. The attack was not violent, it wasnt purposefully aimed at changing
Estonias behavior, and no political entity took credit for it. The same is
true for the vast majority of cyberattacks on record. Indeed, there is
no known cyberattack that has caused the loss of human life. No
cyberoffense has ever injured a person or damaged a building. And if
an act is not at least potentially violent, its not an act of war. Separating war
from physical violence makes it a metaphorical notion; it would mean that
there is no way to distinguish between World War II, say, and the wars on
obesity and cancer. Yet those ailments, unlike past examples of cyber war,
actually do kill people.
Impact D No Risk
Cyber terror is a very small risk it is vandalism not war
Libicki, senior management scientist at the nonprofit,
nonpartisan RAND Corporation, 2/8 (Martin C. Libicki, 2-8-2015,
"Cyberattacks Are a Nuisance, Not Terrorism," Newsweek,
http://www.newsweek.com/cyber-attacks-are-nuisance-not-terrorism305062 //NK)
The debate over whether cyberattacks should be treated as national
security or public safety concerns was shoved forward with the Sony
hack. President Obama declared it was an act of vandalism, not war.
Others, such as Newt Gingrich and Senate Armed Services Committee Chairman John McCain, would treat it as war.
rough order of magnitude guess, it costs $1 million to support one warfighter in Iraq and Afghanistan, making the
hacktivism, WikiLeaks and credit card fraud. As one congressional staffer put it, the way we use a term like cyber
using cyber means simply outstrips the intellectual, organizational and personnel capacities of even the most wellfunded and well-organized terrorist organization, as well as those of even the most sophisticated international
be crystal clear: This is not to say that terrorist groups are uninterested in using the technology of cyberspace to
carry out acts of violence. In 2001, al-Qaida computers seized in Afghanistan were found to contain models of a
dam, plus engineering software that simulated the catastrophic failure of controls. Five years later, jihadist websites
were urging cyber attacks on the U.S. financial industry to retaliate for abuses at Guantanamo Bay. Nor does it
mean that cyber terrorism, particularly attacks on critical infrastructure, is of no concern. In 2007, Idaho National
Lab researchers experimented with cyber attacks on their own facility; they learned that remotely changing the
operating cycle of a power generator could make it catch fire. Four years later, the Los Angeles Times reported that
white-hat hackers hired by a water provider in California broke into the system in less than a week. Policymakers
must worry that real-world versions of such attacks might have a ripple effect that could, for example, knock out
al-Qaida attempt at a cyber attack wouldnt have even met the FBI
definition. Under questioning at Guantanamo Bay, Mohmedou Ould Slahi confessed to trying to knock offline
the Israeli prime ministers public website. The same goes for the September denial-of-service attacks on five U.S.
banking firms, for which the Islamist group Izz ad-Din al-Qassam Cyber Fighters claimed responsibility. (Some
experts believe the group was merely stealing credit for someone elses work.) The attacks, which prevented
customers from accessing the sites for a few hours, were the equivalent of a crowd standing in your lobby blocking
access or a gang of neighborhood kids constantly doing ring and runs at your front doorbell. Its annoying, to be
sure, but nothing that would make the terrorism threat matrix if you removed the word cyber. And while it may
Even the
2007 cyber attacks on Estonia, the most-discussed incident of its
kind, had little impact on the daily life of the average Estonian and
certainly no long-term effect. Allegedly assisted by the Russian government, and hence well
beyond the capacity of most terror organizations, the attacks merely disrupted publicfacing government websites for a few days. Compare that with the impact of planes
make for good headlines, it is certainly not in the vein of a cyber 9/11 or digital Pearl Harbor.
crashing into the center of the U.S. financial system, the London subway attacks or the thousands of homemade
just one nuclear bomb, even a jury-rigged radiological dirty bomb, could irradiate an American city for centuries.
Similarly, while a computer virus could wreak havoc in the economy, a biological attack could change our very
patterns of life forever. As one cyber expert said, There
the "cyber-
warfare" business may be overblown? Its clear the U.S. national security establishment is
paying a lot more attention to the issue, and colleagues of mine including some pretty serious and level-headed
people are increasingly worried by the danger of some sort of "cyber-Katrina." I dont dismiss it entirely, but
this sure looks to me like a classic opportunity for threat-inflation. Mind you, Im not
saying that there arent a lot of shenanigans going on in cyber-space, or that various forms of cyber-warfare dont
have military potential. So Im not arguing for complete head-in-the-sand complacency. But heres what makes me
worry that the threat is being overstated. First, the whole issue is highly esoteric you really need to know a great
deal about computer networks, software, encryption, etc., to know how serious the danger might be. Unfortunately,
details about a number of the alleged incidents that are being invoked to
demonstrate the risk of a "cyber-Katrina," or a cyber-9/11, remain classified, which makes
it hard for us lay-persons to gauge just how serious the problem really was or is. Moreover, even when we hear
about computers being penetrated by hackers, or parts of the internet crashing, etc., its hard to know how much
some pork for their states. Second, there are lots of different problems being lumped under a single banner,
whether the label is "cyber-terror" or "cyber-war." One issue is the use of various computer tools to degrade an
enemys military capabilities (e.g., by disrupting communications nets, spoofing sensors, etc.). A second issue is the
alleged threat that bad guys would penetrate computer networks and shut down power grids, air traffic control,
traffic lights, and other important elements of infrastructure, the way that internet terrorists (led by a disgruntled
computer expert) did in the movie Live Free and Die Hard. A third problem is web-based criminal activity, including
identity theft or simple fraud (e.g., those emails we all get from someone in Nigeria announcing that they have
millions to give us once we send them some account information). A fourth potential threat is cyber-espionage;
i.e., clever foreign hackers penetrate Pentagon or defense contractors computers and download valuable classified
information. And then there are annoying activities like viruses, denial-of-service attacks, and other things that
affect the stability of web-based activities and disrupt commerce (and my ability to send posts into FP). This sounds
like a rich menu of potential trouble, and putting the phrase "cyber" in front of almost any noun makes it sound
trendy and a bit more frightening. But notice too that these are all somewhat different problems of quite different
importance, and the appropriate response to each is likely to be different too. Some issues such as the danger of
cyber-espionage may not require elaborate technical fixes but simply more rigorous security procedures to
isolate classified material from the web. Other problems may not require big federal programs to address, in part
because both individuals and the private sector have incentives to protect themselves (e.g., via firewalls or by
backing up critical data). And as Greenwald warns, there may be real costs to civil liberties if concerns about vague
cyber dangers lead us to grant the NSA or some other government agency greater control over the Internet. Third,
this is another issue that cries out for some comparative cost-benefit analysis. Is the danger that some malign
hacker crashes a power grid greater than the likelihood that a blizzard would do the same thing? Is the risk of cyberespionage greater than the potential danger from more traditional forms of spying? Without a comparative
assessment of different risks and the costs of mitigating each one, we will allocate resources on the basis of hype
rather than analysis. In short, my fear is not that we wont take reasonable precautions against a potential set of
there is violence, yet many discussions sweep all sorts of nonviolent online mischief into the terror bin. Various
reports lump together everything from Defense Secretary Leon Panettas recent statements that a terror group
might launch a digital Pearl Harbor to Stuxnet-like sabotage (ahem, committed by state forces) to hacktivism,
WikiLeaks and credit card fraud. As one congressional staffer put it, the way we use a term like cyber terrorism has
as much clarity as cybersecurity that is, none at all.Another part of the problem is that we often mix up our
fears with the actual state of affairs. Last year, Deputy Defense Secretary William Lynn, the Pentagons lead official
for cybersecurity, spoke to the top experts in the field at the RSA Conference in San Francisco. It is possible for a
terrorist group to develop cyber-attack tools on their own or to buy them on the black market, Lynn warned. A
couple dozen talented programmers wearing flip-flops and drinking Red Bull can do a lot of damage.The deputy
defense secretary was conflating fear and reality, not just about what stimulant-drinking programmers are actually
hired to do, but also what is needed to pull off an attack that causes meaningful violence. The requirements go well
beyond finding top cyber experts. Taking down hydroelectric generators, or designing malware like Stuxnet that
causes nuclear centrifuges to spin out of sequence doesnt just require the skills and means to get into a computer
system. Its also knowing what to do once you are in. To cause true damage requires an understanding of the
devices themselves and how they run, the engineering and physics behind the target.The Stuxnet case, for
example, involved not just cyber experts well beyond a few wearing flip-flops, but also experts in areas that ranged
from intelligence and surveillance to nuclear physics to the engineering of a specific kind of Siemens-brand
industrial equipment. It also required expensive tests, not only of the software, but on working versions of the
target hardware as well. As George R. Lucas Jr., a professor at the U.S. Naval Academy, put it, conducting a truly
mass-scale action using cyber means simply outstrips the intellectual, organizational and personnel capacities of
even the most well-funded and well-organized terrorist organization, as well as those of even the most
nor the two- or three-person al-Qaida cell holed up in some apartment in Hamburg are going to bring down the Glen
Canyon and Hoover dams, he said. We should be crystal clear: This is not to say that terrorist groups are
uninterested in using the technology of cyberspace to carry out acts of violence. In 2001, al-Qaida computers
seized in Afghanistan were found to contain models of a dam, plus engineering software that simulated the
catastrophic failure of controls. Five years later, jihadist websites were urging cyber attacks on the U.S. financial
industry to retaliate for abuses at Guantanamo Bay. Nor does it mean that cyber terrorism, particularly attacks on
critical infrastructure, is of no concern. In 2007, Idaho National Lab researchers experimented with cyber attacks on
their own facility; they learned that remotely changing the operating cycle of a power generator could make it catch
fire. Four years later, the Los Angeles Times reported that white-hat hackers hired by a water provider in California
broke into the system in less than a week. Policymakers must worry that real-world versions of such attacks might
have a ripple effect that could, for example, knock out parts of the national power grid or shut down a municipal or
had acquired them 10 years later, every military will eventually acquire some
level of cyber-attack capability. Cyber attacks will likely be used only in
combination with other military actions, but they will be part of any
future conflict. We can regard them as another weapons system with both
tactical and strategic uses, similar to missiles or aircraft that can be launched
from a distance and strike rapidly at a target. Stuxnet, for example, was a
military grade cyber exploit and a precisely targeted alternative to
an airstrike on Iranian nuclear facilities. It did less damage than an
air attack but avoided distressing photos of burning buildings and
claims of civilian casualties. The political effect on the Iranian
people was negligible, while an airstrike would have prompted an
emotional reaction. Military planners now have an additional system to
consider in their portfolio of weapons and attacks, which offers a new and
attractive combination of effect and risk. The Aurora test at the Idaho
National Labs and the Stuxnet worm show that cyber attacks are capable of
doing physical damage. Leading cyber powers have carried out network
reconnaissance against critical infrastructure in preparation for such attacks.
But these infrastructure are the most dangerous form of attack, and
therefore hold the most risk for the attacker. At the onset of conflict, attacks
that seek to disrupt and confuse are more likely than infrastructure attacks.
Cyber warfare will begin with the disruption of crucial networks and data and
seek to create uncertainty and doubt among opposing commanders. The
goal will be to increase the Clausewitzian fog of war. This informational
aspect of cyber war, where an opponent might scramble or erase data or
insert false information to mislead an opponent, is a new and powerful
military tool. The Battle of Britain is a historical example of this kind of
warfare. If the Germans had first destroyed the relatively simple network of
sensors, control facilities, and communications systems used by Royal Air
Force Fighter Command to maneuver defending aircraft, it would have
seriously degraded British air capabilities and made ultimate success much
more likely. They did not because they did not fully realize how warfare had
changed to emphasize the importance of these intangible assets. Exploiting
signals, data, and communications had become essential for military
superiority. Future warfare between advanced opponents will begin with
efforts to degrade command and control, manipulate opponent data, and
misinform and confuse commanders (accompanied by electronic warfare
actions, along with kinetic strikes on communications networks and perhaps
satellites). Cyber exploits will be the opening salvo and a short-notice
warning of impending kinetic attack. Strikes on critical infrastructure carry a
higher degree of risk for the attacker if they are used against targets outside
the theater of military operations or in the opponents homeland. An attack
on the networks of a deployed military force is to be expected. Attacks on
civilian targets in the opponents homeland are another matter and may
escalate any conflict. Military planning will need to consider when it is
beneficial to launch cyber attacks that damage critical infrastructure in order
to strain and distract the opposing political leadership, and when it is better
to limit any cyber strikes to military targets in theater. This is one area where
cyber attack, because of its global reach, may resemble nuclear war. Just as
the U.S. Single Integrated Operations Plan and other documents listed and
prioritized targets for nuclear weapons, based on satellite and other forms of
reconnaissance, an astute cyber planner will identify and prioritize targets for
cyber strikes under different conflict scenarios. A full-blown, no-holdsbarred cyber attack against critical infrastructure and networks
might be able to reproduce the damage wrought by Hurricane
Katrina, with crucial services knocked out and regional economic
activity severely curtailed. While Katrina brought immense suffering
and hardship, it did not degrade U.S. military capabilities and would
not have led to a U.S. defeat. Multiple, simultaneous Katrinas would still
not guarantee victory and could risk being seen as an existential threat that
would justify a harsh kinetic response. There are many examples of militaries
attacking targets that were irrelevant to success and only inflamed the
opponent, so we cannot rule out such attacks (which could be very appealing
to terrorist groups, should they ever acquire the ability to launch them), but
no one should believe that this is a decisive new weapon. The only decisive
weapons ever developed were nuclear weapons, and even then, many would
have been needed to overcome an opponent. Pure cyber warkeyboard
versus keyboard or geek versus geekis unlikely. Cyber attacks
are fast, cheap, and moderately destructive, but no one would plan
to fight using only cyber weapons. They are not destructive enough
to damage an opponents will and capacity to resist. Cyber attacks
will not be decisive, particularly against a large and powerful
opponent. The threat of retaliation that is limited to a cyber
response may also not be very compelling. Cyber attack is not much
of a deterrent.
Internet Freedom
UQ Global Internet
US set to relinquish control of the Internet-gradual shift to a
truly global Internet
Hyman 15 (Leonard, former Google Public Policy Analyst, Hyman 2/19/15
(Leonard, "US to Scale Back Its Role In Internet Governance")
Even though the Internet has long been an international community,
the United States has always been at its center. However, that all
may be about to change as the U.S. Department of Commerce scales
back its role in Internet governance. The transition is a gradual one,
but by the end of the year, the DOC is expected to give up its
oversight of the Internet Corporation for Assigned Names and
Numbers (ICANN) to the international community. The concept of
Internet governance may seem like a bizarre one since it often seems like
the Wild West out there. The most tangible example of ICANNs impact on
Internet governance is management of the Internet Assigned Numbers
Authority (IANA) functions: When you type a domain name in your browser
(e.g. TechCrunch.com), it connects you with the long, multi-digit IP address
that would otherwise be impossible to remember. On its face, it may not
seem like a big deal who manages this process. As long as TechCrunch.com
actually gets you to TechCrunch.com, does it really matter if its the U.S.,
ICANN, or some random guy whos behind it? But that question assumes that
your URL actually gets you to your destination. If a foreign government
doesnt want you accessing a certain URL, why not redirect you into a dead
end? After all, naysayers argue, some countries already have robust firewalls,
so why give them more control? The Department of Commerce claims
that by scaling back its role, it will be promoting innovation and
inclusion. After all, if the Internet supposedly belongs to the world,
shouldnt it actually belong to the world? Further, they maintain that it
wont relinquish control until safeguards are in place to prevent that from
happening. (Will it live up to that promise? Well see!) At the same time,
U.S. leadership in this area was called into question perhaps
justifiably after Snowdens NSA surveillance leaks. This is one of
the factors that has nudged the U.S. toward giving up its contract.
Maybe the international community would do a better job than we
have. As unfortunate as censorship would be for foreign countries, the
bigger challenge for the average American may be managing the domains
themselves. Over 1,000 generic Top Level Domains (e.g. dot-search, dot-eco,
dot-docs, etc.) are slated to go live in the coming months. It could easily be a
headache for corporations to buy the thousands of domains related to their
brand. (Imagine if amazon.buy took you to the wrong site.) Of course, it
could be an even bigger hassle for the budding startup, not to mention
ICANN itself overseeing this entire process without the support of the U.S.
government. The Department of Commerces process of fully handing over
the reins wont be complete until later this year; its contract with ICANN
expires in September. In the meantime, ICANN is slated to begin its next
round of sessions in Buenos Aires in June. And because its a multistakeholder process, public participation is welcomed. If youre concerned
about the impact ICANNs increasing independence could have on a free and
open Internet and you fancy a trip to South America I hear Argentina is
lovely that time of year.
But there is more to Obamas silence than just his reasonable attempt to present himself as antiBush. Most likely his silence is a sign of an extremely troubling bipartisan malaise: the growing
Western fatigue with the project of promoting democracy. The project suffers not just from bad
publicity but also from a deeply rooted intellectual crisis. The resilience of authoritarianism in
places like Belarus, China, and Iran is not for lack of trying by their Western partners to
stir things up with an expectation of a democratic revolution. Alas, most such Western
initiatives flop, boosting the appeal of many existing dictators, who excel at playing up the
threat of foreign mingling in their own affairs. To say that there is no good blueprint for
dealing with modern authoritarianism would be a severe understatement. Lost in their own
strategizing, Western leaders are pining for something that has guaranteed effectiveness. Many of
them look back to the most impressive and most unambiguous triumph of democracy in the last
few decades: the peaceful dissolution of the Soviet Union. Not surprisinglyand who can blame
them for seeking to bolster their own self-confidence?they tend to exaggerate their own role in
precipitating its demise. As a result, many of the Western strategies tried back then, like
smuggling in photocopiers and fax machines, facilitating the flow of samizdat, and
supporting radio broadcasts by Radio Free Europe and the Voice of America, are given
much more credit than they deserve. Such belated Cold War triumphalism results in an
egregious logical fallacy. Since the Morozov, Evgeny (2012-02-28). The Net Delusion: The
Dark Side of Internet Freedom . PublicAffairs. Kindle Edition.
Privacy
No Violation
Surveillance necessary, in no way violates fourth amendment
Walpin, journalist, 13
(Gerald, August 16, National Review, We need NSA surveillance,
http://www.nationalreview.com/article/355959/we-need-nsa-surveillancegerald-walpin, June 28, 2015, GG)
After repeatedly, and correctly, proclaiming that phone and e-mail
surveillance by the NSA is both necessary and constitutional, the
president has succumbed to left and libertarian pressure: He has proposed
installation in NSA of a full-time civil-liberties and privacy officer and other
mechanisms in the transparency community. A transparency community
within an intelligence community is an unworkable oxymoron. Any civilliberties and privacy officer installed in NSA would, to show that he is
performing, have to impede intelligence activities a burden we do
not need in our already difficult war on terrorism. Our Constitutions
authors and proponents warned against bowing to the sort of demagoguery
that lies behind attacks on the NSA program as an unconstitutional
invasion of our rights. The Federalist Papers the bible of the
Constitutions meaning warn at the outset (No. 1) of those who
invoke supposed rights of the people to oppose the governments
efforts to defeat an enemy seeking to destroy us: A dangerous
ambition more often lurks behind the specious mask of zeal for the rights of
the people, than under the forbidding appearance of zeal for the firmness
and efficiency of government. Continuing, Publius (probably Alexander
Hamilton) explains why: History will teach us that the former has been
found a much more certain road to the introduction of despotism than the
latter, and that of those men who have overturned the liberties of republics,
the greatest number have begun their career by paying an obsequious court
to the people, commencing Demagogues and ending Tyrants. This warning
is repeated: The Governments powers for the common defense . .
. ought to exist without limitation: because it is impossible to
foresee or define the extent and variety of national exigencies, or
the correspondent extent and variety of the means which may be necessary
to satisfy them (No. 23). Again, our Founding Fathers opposed every
project that is calculated to disarm the government of a single
weapon, which in any possible contingency might be usefully
employed for the general defense and security (No. 36). Abraham
Lincoln reiterated that view when attacked for violating constitutional rights
by suspending habeas corpus: Would not the official oath be broken, if the
government should be overthrown, when it was believed that disregarding
the single law would tend to preserve it? Our Founders and Lincolns
Solvency
Circumvention
The NSA wont accept reforms
Bradley, Forbes Contributor, 2014 (January 17, Tony, Forbes, NSA
Reform: What President Obama Said, What He Didnt,
http://www.forbes.com/sites/tonybradley/2014/01/17/nsa-reform-whatpresident-obama-said-and-what-he-didnt/, accessed 6-29-2015, CM)
Part of the problem in trying to rein in the activities of the NSA is
that there was already a Constitution in place, and there was
already some manner of congressional oversight. The NSA seems to
have decided that its mission and the interests of national security
trumped the rules, and operated with impunity despite those
restrictions. There are no guarantees that these reforms will affect
any real change, and its virtually impossible to monitor the
activities of an agency that exists in the shadows of national
security.
The 30-day
Topicality
International Organization
Bullrun is an international decryption program takes away all
international ground for neg
Larson, 13 (Jeff, Revealed: the NSAs Secret Campaign to Crack,
Undermine Internet Security
Many users assume or have been assured by Internet companies that
their data is safe from prying eyes, including those of the government, and
the N.S.A. wants to keep it that way. The agency treats its recent successes
in deciphering protected information as among its most closely guarded
secrets, restricted to those cleared for a highly classified program codenamed Bullrun, according to the documents, provided by Edward J.
Snowden, the former N.S.A. contractor. Beginning in 2000, as encryption tools were gradually
blanketing the Web, the N.S.A. invested billions of dollars in a clandestine campaign to preserve its ability to
eavesdrop. Having lost a public battle in the 1990s to insert its own back door in all encryption, it set out to
***Disads***
Terror DA
Links
NSA surveillance sovles terror-lack of foreign attacks on US
since 9/11 proves
Francis, journalist, 13
(David, June 11, Business Insider, 5 Reasons Why The NSA's Massive
Surveillance Program Is No Big Deal (And 2 Reasons It Is),
http://www.businessinsider.com/nsa-surveillance-prism-phone-nsa-big-deal2013-6, June 28, 2015, GG)
Civil libertarians have cried foul, saying the data mining violated personal
privacy and the 4th Amendments protection against unlawful search.
Lawmakers on both sides of the isle fired back, claiming that the
surveillance programs were necessary to prevent terrorism and that
revealing information about them gives an advantage to U.S.
enemies. Right now, we know that there are active threats against
the United States," Rep. Eric Cantor (R-Va.) said Sunday morning. "We
have terrorist threats that continue. There are possible security
incidences that continue. And that's just the world that we live in.
Cantor said the House of Representatives would investigate Snowdens
actions. White House spokesperson Tim Carney declined to comment on
Snowden Monday. He said President Obama "would welcome" a conversation
about surveillance but not about the leaks that caused it. There are still
lingering questions about whether these revelations actually give terrorists
and other countries a leg up against the United States. Here are five reasons
that PRISM is no big deal, as well as two reasons why Americans need to be
worried about what the government and its 5 million security-cleared
workers could do. 1. Online surveillance has been effective and is an
important tool in the fight against terrorism. Lawmakers have said
that data mining stopped attacks in the United States and overseas.
The programs also provide U.S. authorities with leads on potential
and existing terrorists. One NSA official told the Washington Post that
PRISM provided a field of dots which allowed authorities to connect the
relevant ones. But the best justification for the program has been
what has not occurred. Since 9/11, there has only been one major
terror attack on U.S. soil. 2. Weve been under surveillance for more than
a decade. The government has been monitoring online and telephone
activity for more than a decade. During the Bush years, NSA was able to
monitor phone calls without a warrant. President Obama said he has put
strict protocols in place that require judicial review and a warrant
for all PRISM targets. He and other officials also said the government is
not listening to your conversations or reading your email. Its simply
identifying phone numbers that could be connected to terrorists.
Apple
has created a phone that is dark, that cannot be accessed by law
enforcement even when a court has authorized us to look at its
contents, Vance said. In response, Vance wants police departments around the country to register their opposition with politicians and for hearings
is also incorporating encryption into its mobile devices. The two tech giants smartphones comprise 96 percent of the global market, the New York Post mentions.
on the issue to take place. On its website, Apple says that encryption is enabled end-to-end on its devices and that it has no way to decrypt iMessage and FaceTime data when its in
transit between devices. Additionally, the company states, We wouldnt be able to comply with a wiretap order even if we wanted to. Other features such as iCloud and Mail also offer
some encryption protections. Vance isnt the only law enforcement official to come out against widespread encryption. In October, New York Police Department Commissioner Bill Bratton
bureaus position on the issue, which has seen a surge in support since former government contractor Edward Snowden revealed a massive domestic and international surveillance
operation. She said law enforcement officials will need some degree of access to encrypted messages in order to stop criminal and violent plots in the future. No one in this country
http://www.dailydot.com/politics/cyrus-vance-jr-apple-google-terroristsencryption/)//GLee
A Manhattan district attorney came awfully close to accusing Google and Apple of supporting terrorism during a
three case examplesgang members discussing a shooting on video, a man taking pictures up womens skirts on
the subway, and an identity thiefwhich he argued could not have been prosecuted as effectively if the
These
opinions closely mirrored that of FBI Director James Comey, who in
October during a speech at the Brookings Institute said, "encryption
threatens to lead us all to a very, very dark place." Comey further
suggested that cellphone encryption is a sign that the "postSnowden pendulum has swung too far." During Comeys speech, the FBIs official
perpetrators had smartphone software incorporating Apple and Googles privacy guarantees.
website advised users that cellphone encryption can be used to protect the users personal data in case of loss or
theft. The advice was subsequently deleted. Likewise, visitors are no longer advised to passcode protect your
mobile device. Its nearly impossible, however, to erase something once its been online. The FBIs Web page,
complete with advice to encrypt, can still be viewed via the Wayback Machine. Vance went on to say that the
debate over cellphone encryption has nothing to do with domestic spying or the controversies surrounding the
National Security Agency (NSA). The issue with Apple and Google changing their operating systems is not that
issue. ... This is not an issue of the NSA. Privacy advocates argue the exact opposite, noting that the only reason
the NSA is unable to intercept the iMessages and FaceTime calls of Americans is the default end-to-end encryption
used by those services. FaceTime calls are not stored on any of Apples servers, and users have the option of
disabling the iCloud-backup feature to prevent iMessage and SMS message from being stored. For years, the FBI
has repeatedly and publicly expressed its desire to wiretap online communications, such as FaceTime and Google
Chat, in real-time.
Link Booster
NSA has prevented 54 terrorist attacks internationally and is
key to continuing to prevent them
Kelly, 13 (Heather, NSA Chief: Snooping is crucial to fighting terrorism
http://www.cnn.com/2013/07/31/tech/web/nsa-alexander-black-hat/)//MEB
The National Security Agency's controversial intelligence-gathering
programs have prevented 54 terrorist attacks around the world,
including 13 in the United States, according to Gen. Keith Alexander,
NSA director. Speaking before a capacity crowd of hackers and security
experts Wednesday at the Black Hat computer-security conference,
Alexander defended the NSA's embattled programs, which collect
phone metadata and online communications in an effort to root out
potential terrorists. The secret programs have come under fire since their
existence was revealed in June by former CIA contractor Edward Snowden,
who leaked details about them to several newspapers. "I promise you the
truth -- what we know, what we're doing, and what I cannot tell you because
we don't want to jeopardize our future defense," Alexander told the
audience, which included a few hecklers who shouted profanities and
accused him of lying.
the future. No one in this country should be beyond the law, she wrote.
The notion that electronic devices and communications could never be
unlocked or unencrypted even when a judge has decided that the public
interest requires accessing this data to find evidence is troubling. It may
be time to ask: Is that a cost we, as a society, are prepared to pay?
reassure the public that you're not abusing your powers, and that you're breaking basic encryption used widely
across the internet for their own good by narrowly targeting whom it's used against, maybe (just maybe) don't
include a hedge word that includes every human being on earth. As Ken White noted, we are all "others" here.
We've already noted that previous leaks, concerning "minimization" have shown that the NSA people believe that if
your data is encrypted then they can keep it, because you might be evil, and that comes through here as well.
yet again only breeds further reasons to trust the NSA even less. As
White notes, this whole situation is particularly disturbing because so much can be classified under "others" that
should be seen as reasonable and normal activity of a person who questions whether the government is really
acting as a representative of the people. I am the other because I do not trust my government in general, or the
people working for its security apparatus in particular. I am the other because I believe the Security State and its
representatives habitually lie, both directly and by misleading language, about the scope of their spying on us. I
believe they feel entitled to do so. I am the other because I believe the Security State and its representatives
habitually violate such modest restrictions as a complacent and compliant legislature puts on their spying again,
because they feel entitled to do so. I am the other because I don't believe the Security State and its representatives
The world learned that the USA and other Western nations are
amassing data about the minutiae of our daily lives on an
unprecedented scale, when the former intelligence worker Edward
Snowden began an ongoing series of revelations in June 2013. The
data includes all forms of electronic communications between
people, as well as web accesses, and financial and transport data,
and the physical movements of people collected through mobile
phone location tracking. Much outrage has justifiably been expressed by academics [6], [8], [9], [1], politicians
[2], journalists [11], and, somewhat hypocritically, by the very companies that enabled it to happen [10].
Nevertheless,
O/W Privacy
Society has exaggerated the value of privacy in order for
people to improve their own image-a decrease in privacy is
necessary to deter terrorists and protect national security
Posner 13 (Richard, judge on the United States Court of Appeals, Daily
News 4-28, Privacy is overrated,
http://www.nydailynews.com/opinion/privacy-overrated-article-1.1328656?
print)
This past Monday, Mayor Bloomberg said that in the wake of the
Boston Marathon bombings, the countrys interpretation of the
Constitution will have to change in order to enable more effective
prevention of and response to terrorist attacks and other violence,
such as attacks on schoolchildren. In particular, he wants a more
welcoming attitude toward surveillance cameras, which played a
crucial role in the apprehension of the Boston Marathon bombers and
would have been crucial had Tamerlan and Dzhokhar Tsarnaev come to New
York to detonate a bomb in Times Square, as they apparently planned to.
(Bloomberg has also announced a Domain Awareness System that will
consolidate and distribute information received by the cameras and other
tracking devices.) All of which is to say that he wants concerns with
privacy to take second place to concerns with security. I strongly
agree, though Im not sure that the Constitution will have to be
reinterpreted in order to enable the shift of emphasis that he (and I) favor.
Neither the word privacy nor even the concept appears anywhere in the
Constitution, and the current Supreme Court is highly sensitive, as it should
be, to security needs. The Court can and doubtless will adjust the
balance between privacy and security to reflect the increase in longrun threats to the lives of Americans. There is a tendency to
exaggerate the social value of privacy. I value my privacy as much
as the next person, but there is a difference between what is
valuable to an individual and what is valuable to society. Thirty-five
years ago, when I was a law professor rather than a judge, I published an
article called The Right of Privacy, in which I pointed out that privacy is
really just a euphemism for concealment, for hiding specific things
about ourselves from others. We conceal aspects of our person, our
conduct and our history that, if known, would make it more difficult for us to
achieve our personal goals. We dont want our arrest record to be made
public; our medical history to be made public; our peccadilloes to be made
public; and so on. We want to present sanitized versions of ourselves
to the world. We market ourselves the way sellers of consumer
products market their wares highlighting the good, hiding the
bad. I do not argue that all concealment is bad. There is nothing wrong with
concealing wealth in order to avoid being targeted by thieves or concealing
embarrassing personal facts, such as a deformity or being related to a
notorious criminal, that would not cause a rational person to shun us but
might complicate our social and business relations. There may even be
justification for allowing the concealment of facts that might, but should not,
cause a person to be shunned. Laws that place a persons arrest (as distinct
from conviction) record behind a veil of secrecy are based on a belief that
prospective employers would exaggerate the significance of such a record,
not realizing, for example, that arrests are often based on mistakes by
witnesses or police officers, or are for trivial infractions. Privacy-protecting
laws are paternalistic; they are based on a skepticism regarding whether
people can make sensible evaluations of an arrest record or other private
facts that enter the public domain. Still, a good deal of privacy just
facilitates the personal counterpart of the false advertising of goods
and services, and by doing so, reduces the well-being of society as a
whole. I am not suggesting that privacy laws be repealed. I dont think that
they do much harm, and they do some good, as just indicated. But I dont
think they serve the public interest as well as civil libertarians
contend, and so I dont think that such laws confer social benefits
comparable to those of methods of surveillance that are effective
against criminal and especially terrorist assaults. More than effective:
indispensable. How much more havoc might the two Boston Marathon
bombers have wreaked had they remained unidentified for weeks? The
critics of surveillance cameras invoke the specter of the telescreen, a twoway television that thus operates as a surveillance camera, which figures in
George Orwells great novel Nineteen Eighty-Four. But the critics miss two
important distinctions. The first is that the telescreen is inside peoples
homes in every room, and monitored by state security personnel (Big
Brother is watching you). The second distinction is that the nation in
Orwells novel Airstrip One (actually England) is a Soviet-style
totalitarian dictatorship. (Coincidentally, England today apparently has more
surveillance cameras than any other nation, some 4 million.) Our
government is not totalitarian, and surveillance cameras, when
indoors (in retail stores for example), are generally invited and
controlled by the owner of the premises. The surveillance cameras
installed by the government are, by and large, in public areas,
mainly streets, where privacy is anyway limited by the fact that one
is visible and audible to other people. True, the cameras create a
record, as ordinary eavesdropping does not, but is this enough of a
difference to offset the security benefits of surveillance? I think not.
I live in a city Chicago that is said to have more than 10,000 public and
Politics
Obama fought for NSA reform- pushed Senate for USA Freedom
Act
Fabian, political editor for NBC News-Univision, 5/29/15
(Jordan, The Hill, Obama pleads that Senate act on NSA reform,
http://thehill.com/policy/national-security/243503-obama-pleads-that-senateact-on-nsa-reform, June 25, 2015, GG)
Weve only got a few days, Obama said. Authorities expire Sunday at
midnight and I dont want us to be in a situation where for a certain period of
time those authorities go away. ... Ive indicated to Leader McConnell and
other senators, I expect them to take action and take action swiftly.It
appears increasingly likely those authorities, which the White House has
deemed crucial to national security, will be allowed to lapse. The White
House says the only way to avoid that would be to pass the USA
Freedom Act, the measure cleared by the House. It would revamp the NSAs
phone records program, while renewing other authorities, such as roving
wiretaps for terror suspects. But McConnell has refused to support the
measure, saying it would deprive counterterrorism officials of key powers.
McConnell is backed by other GOP hawks, including Sen. Richard Burr (RN.C.), the chairman of the Senate Intelligence Committee. Sen. Rand Paul (RKy.) is taking the opposite position. He argues the House bill does not go far
enough in reforming the program, and argues the Patriot Act should be
allowed to expire. There are no signs of a resolution, and its not clear what
bills the senators will consider on Sunday. Obama said the only thing
thats standing in the way of the USA Freedom Act is a handful of
senators who are resistant to these reforms." This is not an issue
where we have to choose between security and civil liberties, this is
an issue in which we in fact have struck the right balance and
shaped a piece of legislation that everybody can support, he said.
So lets go out and get it done.
Repubs Link
Broad NSA reform very unlikely- most Republicans resisting
further change
Gross, Telecom Policy for the IDG New Service, 15)
(Grant, June 5, Computer World, Don't expect Congress to make major
changes to NSA surveillance,
http://www.computerworld.com/article/2931445/technology-lawregulation/dont-expect-congress-to-make-major-changes-to-nsasurveillance.html, June 25, 2015, GG)
After the U.S. Congress approved what critics have called modest
limits on the National Security Agency's collection of domestic
telephone records, many lawmakers may be reluctant to further
change the government's surveillance programs. The Senate this week
passed the USA Freedom Act, which aims to end the NSA's mass
collection of domestic phone records, and President Barack Obama signed
the bill hours later. After that action, expect Republican leaders in
both the Senate and the House of Representatives to resist further calls
for surveillance reform. That resistance is at odds with many rank-and-file
lawmakers, including many House Republicans, who want to further limit
NSA programs brought to light by former agency contractor Edward
Snowden. Civil liberties groups and privacy advocates also promise to push
for more changes. It may be difficult to get "broad, sweeping reform"
through Congress, but many lawmakers seem ready to push for more
changes, said Adam Eisgrau, managing director of the office of government
relations for the American Library Association. The ALA has charged the NSA
surveillance programs violate the Fourth Amendment of the U.S.
Constitution, which prohibits unreasonable searches and seizures. "Congress
is not allowed to be tired of surveillance reform unless it's prepared to say
it's tired of the Fourth Amendment," Eisgrau said. "The American public will
not accept that." Other activists are less optimistic about more
congressional action. "It will a long slog getting more restraints," J.
Kirk Wiebe, a former NSA analyst and whistleblower said by email. "The
length of that journey will depend on public outcry -- that is the one thing
that is hard to gauge." With the USA Freedom Act, "elected officials have
opted to reach for low-hanging fruit," said Bill Blunden, a cybersecurity
researcher and surveillance critic. "The theater we've just witnessed allows
decision makers to boast to their constituents about reforming mass
surveillance while spies understand that what's actually transpired
is hardly major change.
***Counterplans***
XO CP
Solvency
XO order
Obama is the only one with the power to enact effective NSA
reform- XO 12333 proves
EEF, no date
(Electronic Frontier Foundation, Tell Obama: Stop Mass Surveillance Under
Executive Order 12333, https://act.eff.org/action/tell-obama-stop-masssurveillance-under-executive-order-12333, June 29, 2015, GG)
The NSA relies on Executive Order 12333 to engage in mass
surveillance of people around the world. But most people have never
even heard of this presidential order. Its time to respect the privacy rights of
innocent people, regardless of their nationality. Tell Obama: amend Executive
Order 12333 to prohibit mass surveillance. Executive orders are legally
binding orders given by the President of the United States which
direct how government agencies should operate. Executive Order
12333 covers "most of what the NSA does" and is "the primary
authority under which the countrys intelligence agencies conduct
the majority of their operations."1 So while the U.S. Congress is
considering bills to curtail mass telephone surveillance, the NSAs primary
surveillance authority will be left unchallenged. Its time to change
that. Last July, former State Department chief John Napier Tye came forward
with a damning account of Executive Order 12333, which he published in The
Washington Post2. Thanks to his account and the reports of others who have
spoken out candidly against surveillance under E.O. 12333, we know:
Executive Order 12333 is used to collect the content of your
communications including Internet communications like emails and text
messages. Executive Order 12333s has no protections for non-U.S.
persons, a fact that has been used to justify some of the NSA's most
extreme violations of privacy, including the recording of an entire country's
telephone conversations. Executive Order 12333 is used to collect
information on U.S. persons who are not suspected of a crime. As Tye
wrote, "It does not require that the affected U.S. persons be suspected of
wrongdoing and places no limits on the volume of communications by U.S.
persons that may be collected and retained." No US court has seriously
considered the legality and constitutionality of surveillance
conducted under Executive Order 12333. This executive order was signed
by President Ronald Reagan in 1981, many years before the Internet was
widely adopted as a tool for mass communication. A stroke of the U.S.
President's pen over thirty years ago created the conditions that led
to our global surveillance system. The present President could fix it
just as easily.
(Ellen, July 23, The Washington Post, Privacy watchdogs next target: the
least-known but biggest aspect of NSA surveillance,
https://www.washingtonpost.com/blogs/the-switch/wp/2014/07/23/privacywatchdogs-next-target-the-least-known-but-biggest-aspect-of-nsasurveillance/, June 29, 2015, GG)
That highly technical name masks a constellation of complex
surveillance activities carried out for foreign intelligence purposes
by the National Security Agency under executive authority. But unlike
two other major NSA collection programs that have been in the news lately,
EO 12333 surveillance is conducted without court oversight and with
comparatively little Congressional review. The Privacy and Civil Liberties Oversight
Board, an independent executive branch agency, over the last year has taken in-depth looks at the other two NSA
programs. It concluded the bulk collection of Americans phone call metadata under Section 215 of the Patriot Act
was illegal and raised constitutional concerns. By contrast, it found the gathering of call and email content under
Section 702 of the Foreign Intelligence Surveillance Act to be lawful, though certain elements pushed close to the
world that hold customers data. That means Americans data are often
stored both in the United States and abroad simultaneously, subject
to two different legal and oversight regimes. Surveillance on U.S. soil
requires court permission and an individual warrant for each target.
Surveillance abroad requires a warrant for U.S. persons, but if
collection is coming from a data center overseas, large volumes of
Americans communications may be picked up as incidental to
collection on a foreign target. So a lot of ordinary data crosses
borders, including domestic communications between Americans, said
Edward W. Felten, a computer science professor at Princeton University. Or as
former NSA Deputy Director John C. Inglis has said of the falling away of
borders in cyberspace: There is not an away game. There is not a home
game. There is only one game. With the merging of the home and away
games, the question arises as to whether a legal regime that bases privacy
protections and oversight largely on geography is sufficient, analysts say.
The Post reported last fall, for example, that NSA was collecting 500,000
e-mail account address books a day outside the United States
from companies such as Yahoo and Google. According to documents
obtained from Snowden, the agency was collecting the data through secret
arrangements with foreign telecommunications companies or allied
intelligence services in control of facilities that direct traffic along the
Internets main data routes. Although the collection takes place overseas,
two senior U.S. intelligence officials acknowledged that it
incidentally sweeps in the contacts of many Americans, the article
said. The Post also reported that the agency in conjunction with Britains
GCHQ, was collecting data traveling between Google and Yahoo data centers
overseas. In Googles case, that was up to 6 million records a day, according
to a slide obtained from Snowden. The firms have since said they are
encrypting the data moving between their data centers. EO 12333
collection is not available everywhere in the world, former U.S. officials
said. It is not as precise as collection from a U.S. carrier in the United States,
which can filter out unwanted communications. Under 12333, the agency is
collector and processor, said one former U.S. official, who spoke on
condition of anonymity to discuss a sensitive topic. Things go by and you
now have to figure out which things are of interest to you. And those things
are incredibly fractured and packetized. Tye said before he left the State
Department, he filed a complaint with its inspector general, as well as the
NSA inspector general, alleging that 12333 collection through its
incidental collection of Americans data, violated the Fourth
Amendments bar on unreasonable searches and seizures. Basically
12333 is a legal loophole, said Tye, who is now legal director at Avaaz, a
civil society group working on regional and national issues ranging from
corruption and poverty to conflict and climate change. It allows the NSA
to collect all kinds of communications by Americans that the NSA
would not be able to collect inside the borders without a warrant.
Advantage CPs
International Effort CP
CP: NATO should
- Creates an international intelligence pool
- Hire Cyber defense experts
- international counter cyber attack exercises
- After-reaction analysis to respond to an attack
Solves cybersecurity
Aslan et al, Freelance Lawyer, 11 (Adil, Murat Dogrul, Eyyup Celik,
2011, Turkey Air War College, Developing an International Cooperation on
Cyber Defense and Deterrence against Cyber Terrorism,
https://ccdcoe.org/ICCC/materials/proceedings/dogrul_aslan_celik.pdf,
6/29/15, SV)
For all the reasons discussed above, it is an obligation to develop an
international game plan in order to fight against cyber terrorism. Therefore,
an 8-step global counter cyber-terrorism game plan is offered: Step 1.
Reaching to a common definition of terrorism and cyber terrorism is the
starting point. Which activities on the internet (e.g. hacking, propaganda,
attacking to infrastructures etc.) should be counted as cyber terrorism must
be defined exactly. Speaking the same language or creating a common
technical language could be a commencing point. Step 2. Essential national
and international legal measures have to be taken. International legal
arrangements should be realized. Then national legislation has to be
harmonized with the international legislation. Step 3. Both bilateral and
multilateral agreements on cyber security cooperation should be signed
among nations. Step 4. An intelligence pool should be created in order
to collect and share the intelligence simultaneously among the
nations. Collecting intelligence should include not only monitoring
terrorist websites but also collecting electronic evidence for the
potential incoming cyber attacks. Step 5. Cyber defense expert
teams should be created and charged internationally whenever a
country encounters with a cyber attack. The number of quick
response teams that countries own could be raised by the help of
NATOs Computer Incident Response Capability and Cooperative
Cyber Defense Centre of Excellence. An international counter cyber
attack response training programme should be established. Step 6.
International counter-cyber attack exercises should be planned and
executed in order to help the nations share their proficiency and
experience. Step 7. A well-organized international decision-making
process that spans from detection to destruction (or disruption) of
Congressional Funding
CP: Congress should prioritize federal research funding for ICT
and cybersecurity research and development
Telecommunications Industry Association, leading trade
association representing the global information and
communications technology, 11 (TIA, 3/16/11, Telecommunications
Industry Association, Securing the Network: Cybersecurity
Recommendations for Critical Infrastructure and the Global Supply Chain
http://www.tiaonline.org//policy/securing-network-cybersecurityrecommendations-critical-infrastructure-and-global-supply, 6/29/15, SV)
Recommendation 4: Congress should prioritize federal research
funding for ICT and specifically cybersecurity research and
development.
While the U.S. still boasts the strongest research ecosystem in the
world, there are signs of erosion in the ICT sector as competing
nations take strong steps to attract investment in ICT research to
build innovation-based economies.[7] The consequences for the
U.S. ICT sector of a less competitive ICT research ecosystem are
very real. As the National Academy of Sciences observed, [t]he
nation risks ceding IT leadership to other generations within a
generation unless the United States recommits itself to providing
the resources needed to fuel U.S. IT innovation.[8] Yet the U.S.
government has not made a strong enough commitment to prevent
this forecast from becoming a reality federal investment in ICT
research remains relatively low compared to other scientific fields.
Beyond the economic costs of other nations surpassing the U.S. in
ICT research, the most alarming costs are in the implications for
national security. Congress should prioritize federal funding for
cybersecurity research and development, and should coordinate
research activities between different participating agencies with
industry input. Congress should also facilitate greater private
investment in research more generally through the enactment of a
permanent, simplified, R&D tax credit.
CIR CP
CP: Enact the Comprehensive Immigration Reform Solves the
economy and boosts the tech sector
Hinojosa-Ojeda, Ph.D. in Political Science, 12 (Raul, Winter 2012,
Cato Institute, The Economic Benefits of Comprehensive Immigration
Reform, http://object.cato.org/sites/cato.org/files/serials/files/catojournal/2012/1/cj32n1-12.pdf, 6/29/15, SV)
The results of our modeling suggest that comprehensive immigration
reform would increase U.S. GDP by at least 0.84 percent per year.
Using 10-year GDP projections prepared by the Congressional Budget Office,
this translates into a steadily increasing amount of added annual GDP over
the coming decade. The 10-year total is at least $1.5 trillion in added
GDP, which includes roughly $1.2 trillion in additional consumption and $256
billion in additional investment. Comprehensive immigration reform
brings substantial economic gains even in the short runduring the
first three years following legalization. The real wages of newly legalized
workers increase by roughly $4,400 per year among those in lessskilled jobs during the first three years of implementation, and
$6,185 per year for those in higher-skilled jobs. The higher earning
power of newly legalized workers translates into an increase in net
personal income of $30 billion to $36 billion, which would generate
$4.5 to $5.4 billion in additional net tax revenue nationally, enough
to support 750,000 to 900,000 new jobs. Ultimately, only the federal
government can resolve the status of the undocumented. But for the
purposes of our analysis, we examine what would happen on a state and
county level if local workforces were fully legalized through comprehensive
immigration reform. In California, which faces a $25.4 billion budget
shortfall in 201112, this scenario would lead to a $27 billion
increase in labor income (pre-tax salary and wage earnings) that
would generate a $5.3 billion boost in tax revenue for the state and
add 633,000 desperately needed jobs to the economy. In Los Angeles
County, labor income would increase $10 billion through legalization,
leading to $1.9 billion in additional net tax revenue and 211,000 new jobs. In
Arizona, the same legalization scheme would generate $5.6 billion more in
labor income, leading to $1.68 billion in tax revenue and an additional
261,000 jobs. The wages of native-born workers also increase under
the comprehensive immigration reform scenario because the wage
floor rises for all workersparticularly in industries where large
numbers of easily exploited, low-wage, unauthorized immigrants
currently work. Wages for native-born U.S. workers increase by roughly
$162 per year for the less-skilled and $74 per year for the higher-skilled.
Under the temporary worker program scenario, wages fall for both lessskilled and higher-skilled native-born U.S. workers. And under the mass
deportation scenario, wages for less-skilled native-born workers actually rise,
but only at the cost of significantly fewer jobs as the economy contracts and
investment declines. The cost of this scheme to local economies, however, is
staggering. If Californias workforce were depleted by mass deportation, the
resulting contraction of the economy would mean a loss of $176 billion in
labor income and a reduction in gross product of $300 billion, or 17 percent
of the state economy. As a result, 3.6 million jobs would be lost. Los Angeles
County would be even harder hit, with the $60.1 billion loss in labor income
causing a 22 percent reduction in the local economy and the loss of 1.2
million jobs. Arizonas case is almost as severe, with the $29.5 billion the
state would lose in labor income as a result of mass deportation and the
$48.8 billion reduction in gross product representing a 20 percent depletion
of the economy and the loss of 581,000 jobs. The benefits of additional
U.S. GDP growth under the comprehensive immigration reform
scenario are spread very broadly throughout the U.S. economy, with
virtually every sector expanding. Particularly large increases occur in
immigrant-heavy industries such as textiles, ferrous metals, transportation
equipment, electronic equipment, motor vehicles and parts, nonelectric
machinery and equipment, capital goods, mineral products, and
construction. In comparison, every sector experiences significantly smaller
gains under the temporary worker scenario, while every sector contracts
under the mass deportation scenario.
FCC CP
Solvency
Current executive and legislative are inadequate
Healey, George Washington University Law School, magna cum
laude, 14
Audra, 12/14, Federal Communications Law Journal, A
However, despite
the appearance of effective controls, these oversight mechanisms have
failed to prevent the current public crisis in confidence that the NSA is
fulfilling its mission with the least possible adverse impact on the
privacy of U.S. citizens. The authority of the NSA, subject to the above controls,
is very limited on paper. Every intelligence activity that the NSA
undertakes is purportedly constrained to the purposes of foreign
intelligence and counterintelligence.45 For instance, Executive Order 12,333 provides the
Office of Compliance operates to ensure that the NSA follows relevant standards.44
authority for the NSA to engage in the collection of communications by foreign persons that occur wholly outside
the United States.46 Additionally, FISA authorizes the NSA to compel U.S. telecommunications companies to assist
the agency in targeting persons who are not U.S. citizens and are reasonably believed to be located outside the
map of a given persons life based on those persons with whom they are in contact.49 For instance, metadata can
be used to piece together substantial information about relationships; this information includes who introduced two
people, when they met, and their 100 FEDERAL COMMUNICATIONS LAW JOURNAL Vol. 67 general communication
this information from access points all over the world.53 This method
means that the NSA is not required to restrict itself to collecting
contact lists belonging to specified intelligence targets.54 The collection
mechanism ostensibly operates under the assumption that the bulk of the data collected through the overseas
access points is not data from American citizens.55 However, this is not necessarily true due to the globalized
nature of the Internet as a communications infrastructure, as data crosses boundaries even when its American
talk encompasses the subject of how metadata can be used to determine the nature, extent, and timeline of a given
relationship between two people based on the metadata in their emails. It is important to note, however, that Issue
that the agency, even as it has been collecting data from American citizens, has been required to answer to its
various oversight mechanisms in an effective manner. In response, President Obama directed the Privacy and Civil
Liberties Oversight Board (PCLOB) to conduct two reports about NSA intelligence gathering methods.60 The
PCLOB is an independent, bipartisan agency within the executive branch tasked with reviewing and analyzing
executive branch actions taken in the name of national security to determine whether appropriate consideration
has been afforded to civil liberties in the development and implementation of national anti-terrorism policy.61
information.65 The first PCLOB report indicates that the NSA metadata collection program does not pass any
semblance of relevancy standards to target the data to a specific question of national security; this is because the
NSA does not have reason to suspect the owners of the metadata, unlike in other cases where the collection was
lawful.66 Thus, the current oversight system suffers from some serious failings. First, it does not allow for a focused
inquiry by the congressional committees. Additionally, the NSA can get around requirements imposed on it by FISA
by conducting Internet surveillance abroad that nonetheless captures U.S. data flows, many of which traverse
foreign networks. Moreover, the NSA has over-collected data with little value to the agencys national security
mission, and therefore must sift through masses of data involving regular American citizens while fighting a public
battle about how much information the agency collects.67 This all suggests deficiencies in the NSAs oversight
structure, as all preventive executive, legislative, and internal controls have not been effective. B. Stronger
oversight is also needed because the courts are ill-equipped to adequately review and oversee the NSA. Further
surveillance. In 2009, the Department of Justice (DOJ) discovered that the NSA had been operating an automated
searching system contrary to FISA Court orders.68 The NSA acknowledged that the Courts orders did not provide
the agency with authority to employ the list of phone records in the manner in which it did.69 Separately, it was
also disclosed to the FISA Court that the NSA had violated the courts orders when thirty-one NSA analysts queried
the telephone records database. 70 Moreover, traditional courts without security clearance have limited authority
The regular
avenue of redress through trial and appellate courts does not
provide an adequate avenue of appeal for citizens challenging NSA
data collection. One primary drawback of the ordinary appellate process is its lack of uniformity. For
over the NSA.71 1. Traditional courts do not provide an adequate avenue of appeal.
instance, the U.S. District Court for the District of Columbia and the U.S. District Court for the Southern District of
New York have reached wildly different conclusions while dealing with the same basic issue.72 In particular, the
United States District Court for the District of Columbia granted injunctive relief for citizens challenging NSA data
collection policies, holding that the public interest weighed in favor of relief on constitutional grounds.73 However,
the District Court for the Southern 104 FEDERAL COMMUNICATIONS LAW JOURNAL Vol. 67 District of New York found
that, while the right to be free from searches and seizures is fundamental, it is not absolute, and thus held that NSA
data collection practices were lawful.74 Moreover, while courts recently have not shied away from analyzing the
constitutional issues involved,75 these same opinions have indicated a healthy reluctance to overstep into issues
where jurisdiction is more questionable due to national security concerns.76 The regular appeals process generally
cannot, or at least is often unable to, consider national security information.77 Both this limitation and the lack of
uniformity show that the courts are not a guaranteed avenue for citizens to seek redress from NSA data collection
practices, nor do they provide one national voice to speak on such important topics that necessitate uniform and
effective review.78 2. The FISA Court is not providing an adequate level of publicly available oversight. Moreover,
the FISA Court, a specialized judicial entity which is intended to provide direct oversight over data
collection, is not providing an adequate level of publicly accountable
oversight. Unlike regular courts, the FISA Court does not provide a
mechanism for non-governmental parties to provide insight into the
particulars of any given case via amicus briefs.79 This characteristic of FISA Court
proceedings means that the Court does not take adequate account of positions other than the governments, which
in turn undermines the credibility and usefulness of the Court in cases involving 74. Clapper, 959 F. Supp. 2d at
75657. 75. See, e.g., Klayman, 957 F. Supp. 2d at 19 (finding that the court had the authority to review the
constitutional claim raised); Clapper, 959 F. Supp. 2d at 742 (finding that the court had authority to review the
constitutional claims raised). 76. See, e.g., Klayman, 957 F. Supp. 2d at 19 (holding that the court was barred from
reviewing the statutory claims based in the Administrative Procedure Act); Clapper, 959 F. Supp. 2d at 742 (noting
that the claims based on statutory grounds were precluded and would likely fail even if they were not). 77.
Klayman, 957 F. Supp. 2d at 19; Clapper, 959 F. Supp. 2d at 742. Indeed, the Klayman Court expressly noted that
the government regused to avail itself of in camera review that would allow the Court to view sensitive information.
Klayman, 957 F. Supp. 2d at 41 n.65. 78. For example, in debating the ultimate creation of the Court of Appeals for
the Federal Circuit, the Senate acknowledged that the structure of the federal courts does not facilitate uniformity
in circumstances of where a promt, definitive answer to legal questions of nationwide significance is required. S.
Rep. 97-275 at 14 (noting that the creation of the Court of Appeals for the Federal Circuit provides such a forum for
appeals from throughout the country in areas of the law where Congress determines that there is special need for
national uniformity. (emphasis added)).
argues that the FCCs background in these areas prepares the agency to step into a new role overseeing the NSA
collection of data. Finally, this section discusses the benefits of tasking the FCC with this important oversight role.
87. See generally FISC Memorandum Opinion, supra note 23. 88. See PCLOB REPORT II, supra note 52, at 13. 89.
See, e.g., Klayman v. Obama, 957 F. Supp. 2d. 1 (D.D.C. 2013); ACLU v. Clapper, 959 F. Supp. 2d 724 (S.D.N.Y.
2013). 90. Compare Klayman, 957 F. Supp. 2d. 1, with Clapper, 959 F. Supp. 2d 724. As discussed above, these
recent judicial decisions regarding NSA data collection do not set a coherent precedent, and are in clear tension
with one another. 91. See, e.g., Commn Policies and Procedures Under Section 301(b)(4) of the Commcns Act,
Foreign Investment in Broadcast Licenses, Declaratory Ruling, FCC 13150, 28 FCC Rcd. 16244, 1624748, paras. 6
8 (2013) (discussing globalization, growth, and innovation). Issue 1 A TALE OF TWO AGENCIES 107 1. The FCC has
strong a background and significant expertise that will allow the agency to provide oversight of the NSA.
Since
the agency
has long supported protecting the privacy of broadband users.97 The
FCC further ensures that consumers have control over how their
access than when they rely on [telephone] services, has played a large part in FCC policy, as
specially providing the FISA Court with useful and insightful amicus curiae briefs.102 There are significant benefits
to the FCC being the agency to provide insight into the NSAs monitoring activities. The NSA gets the information it
collects from major Internet switches and depending on the type of surveillance, does not have to notify the
companies from which it collects data.103 However, the FCC could, with additional congressional authority, provide
insight into basic statistics about the information collected by the NSA: for instance, volume, requiring the NSA to at
least show patterns (i.e., the relationship mapping aspects).104 This could be beneficial to the national security
mission: by providing a volumetric, technical analysis, based on practices that can be described, the FCC could help
focus the NSAs data collection, and thereby contribute to the effort to reduce overcollection, as well as provide a
grounds for congressional monitoring and more effective court cases.105 Moreover, the FCC routinely deals with
sensitive information and collecting public comments.106 For instance, the FCC often makes certain pieces of
information confidential in its proceedings. Recently, the agency issued protective orders in its comment-seeking
proceeding regarding the Technological Transition of the Nations Communications Infrastructure.107 This
experience would facilitate the FCC acting as a bridge between the NSA and its oversight mechanisms. Additionally
the PCLOB report calls for a similar oversight scheme.108 The PCLOB, in its first report, calls for the government to
It is important
to note that this would not be the same as the FCC pursuing
litigation on its own, rather than being overseen by the DOJ . See 28 U.S.C.
516. The FCC would not be pursuing litigation on its own, but rather
acting as an independent viewpoint to add context to the NSAs representations to the FISA
work with Internet service providers and other companies that regularly receive FISA 102.
Court.. The PCLOB notes that for the executive branch . . . disclosures about key national security programs that
involve the collection, storage, dissemination of personal information . . . show that it is possible to describe
practices and policies publicly, even those that have not otherwise been leaked, without damage to national
security or operational effectiveness.. The agency noted that we expect to examine information provided by
service providers, and others, that may be highly confidential. We anticipate that such information will be necessary
to develop a more complete record on which to base the Commissions evaluation of the real-world applications of
planned changes in technology that are likely to have tangible effects on consumers. Id. 108. PCLOB REPORT I,
supra note 60, at 19. 110 FEDERAL COMMUNICATIONS LAW JOURNAL Vol. 67 production orders to develop rules
permitting the companies to voluntarily disclose certain statistical information. 109 Additionally, the PCLOB
recommends that the government publicly disclose detailed statistics to provide a more complete picture of
government surveillance operations.110 The PCLOB also recommends that independent experts as well as
telecommunications service providers help assess at least one data collection technique.111 The FCC regularly
interacts with these companies in its own rulemaking proceedings, and would therefore be in a position to facilitate
independent expertise being utilized in assessing the efficacy of the collection.112 This is not only because the
agency works with the companies and the infrastructure involved already, 113 but also because the FCCs general
technical expertise places the agency in a position to consider what types of statistics would be helpful to the
public. The need for expertise in determining the technical aspects of whether the data being collected is
authorized is not limited to DOJ and NSA efforts, but extends to the FISA Court. In its first report, the PCLOB calls for
Congress to enact legislation enabling the FISA Court to hear independent views.114 While a federal agency rather
than an independent entity, the FCC would be particularly well-suited to bolster the outside input and provide the
FISA Court with information regarding the impact on telecommunications, particularly the Internet, of NSA
surveillance of the American public. The FCC would be a particularly helpful independent view to involve in the FISA
Court proceedings because of its technical expertise. Furthermore, the FCC has significant experience dealing with
sensitive information, such as trade secrets.115 Both these traits make the agency particularly well-suited to
provide helpful insights to the FISA Court. 109. Id. Indeed, telecommunications and tech companies are actively
***Kritiks***
forces outside their own control. This message is one that Americans wish to
transmit to their children: 60 percent say that children should be taught the
value of hard work, but only one-third of the British and Italians and one-fifth
of the Germans agree. Over half of all Americans think that economic
competition is good because it stimulates people to work hard and develop
new ideas; only one-third of French and Spanish people agree. Americans
would like their views to spread throughout the world: over three-fourths said
this was a good idea, compared to only one-fourth of the people in France,
Germany, and Italy and one-third of those in Great Britain. In 1835 Alexis de
Tocqueville discussed American exceptionalism in Democracy in America,
and he is still correct. There was then and there continues now to be in this
country a remarkable commitment to liberty, egalitarianism, individualism,
and laissez-faire values. He gave three explanations for this state of affairs:
we came to occupy a vast, largely empty, and isolated continent; we have
benefited from a legal system that involves federalism and an independent
judiciary; and we have embraced certain "habits of the heart" that were
profoundly shaped by our religious tradition.
Link Neoliberalism
Internet freedom promotes American companies and Western values
Powers & Jablonski, 2015, Shawn Powers, former debater, is an Assistant Professor of
Communication at Georgia State Universit, Michael Jablonski, is an attorney and presidential
fellow in communication at Georgia State University, The Real Cyber War: The Political
Economy of Internet Freedom, p. Kindle (location at end of card)
Geopolitics often comes veiled in ideological language, at least initially. The State
Departments evolving doctrine of internet freedom, most clearly articulated by Secretary
Clinton, is the realization of a broader strategy promoting a particular conception of
networked communication that depends on American companies (for example, Amazon,
AT& T, Facebook, Google, and Level 3), supports Western norms (such as copyright,
advertising-based consumerism, and the like), and promotes Western products . There is
certainly humanitarian value to these initiatives, as many in the mainstream media and
government have suggested. But the underlying economic and political motivations driving these
efforts deserve greater critical inquiry. Powers, Shawn M.; Jablonski, Michael (2015-03-20).
The Real Cyber War: The Political Economy of Internet Freedom (The History of
Communication) (Kindle Locations 282-287). University of Illinois Press. Kindle Edition.
In addition to this political narrative, the remarks also focused on the economic logic of allowing
for greater transnational flows of information. Drawing from classic neoliberal economic
theory, Clinton said, The internet can serve as a great equalizer. By providing people
with access to knowledge and potential markets, she added, networks can create
opportunities where none exist. Clinton characterized government censorship as being
antiquated, akin to trade barriers: From an economic standpoint, there is no distinction
between censoring political speech and commercial speech. If businesses in your nations are
denied access to either type of information, it will inevitably impact on growth. Noting the
importance of innovation in the modern global economy, Clinton went further: Barring criticism
of officials makes governments more susceptible to corruption, which create[ s] economic
distortions with long-term effects. Freedom of thought and the level playing field made possible
by the rule of law are part of what fuels innovation economies. Combined, these political and
economic narratives reflect what sociologist Vincent Mosco describes as the
neodevelopmentalist perspective of international communication, which grew out of
modernization theory, an area of research that was highly influential in policy circles during the
second half of the twentieth century. Pioneered by Daniel Lerner, William Schramm, Everett
Rogers, and Ithiel de Sola Pool, modernization theory posits that the dissemination of media
content and adoption of media systems and technologies are a crucial means to establishing
robust, fast-growing, free-market economies in underdeveloped societies. The neodevelopmentalist perspective suggests that the dissemination and adoption of advanced
communication technologies and skills, preferably through the private sector, is central to the
integration of the global South into the modern, information-driven economy. It pairs this
economic argument with the broader political narrative of the importance of freedom of
expression and the free flow of information in a modern, democratic society. This
combination of economic and political logic is compelling to many, as it reflects a coherent
belief in individual freedom of choice and enterprise. It is also the underlying theory that has
guided much of American information policy since World War II. Yet it is also implicitly
geopolitical. According to communications scholars Kaarle Nordenstreng and Herbert Schiller,
Since World War II, the rhetoric of freedom has been the preferred usage of American
corporate monopolies, press and other, to describe the mechanisms of the system that favors
their operation. According to this perspective, Clintons articulation of the benefits of free and
open communication on international peace, espousing the democratizing power of the internet
and the economic benefits of being online A connection to global information networks is
like an on-ramp to modernity obfuscates geopolitical motivations driving trends toward
global connectivity. Powers, Shawn M.; Jablonski, Michael (2015-03-20). The Real Cyber War:
The Political Economy of Internet Freedom (The History of Communication) (Kindle Locations
341-351). University of Illinois Press. Kindle Edition.
Powers & Jablonski, 2015, Shawn Powers, former debater, is an Assistant Professor of
Communication at Georgia State Universit, Michael Jablonski, is an attorney and presidential
fellow in communication at Georgia State University, The Real Cyber War: The Political
Economy of Internet Freedom, p. Kindle (location at end of card)
Rather than rehashing debates about the democratic value of new and emerging media
technologies, we focus on the political, economic, and geopolitical factors driving internetfreedom policies, with particular emphasis on the U.S. policy and the State Departments
freedom-to-connect doctrine. The book takes a systematic approach, arguing that efforts to
create a singular, universal internet built upon Western legal, political, and social
preferences alongside the freedom to connect is driven primarily by economic and
geopolitical motivations rather than the humanitarian and democratic ideals that typically
accompany related policy discourse. This freedom-to-connect movement, led by the U.S.
government with the support of many powerful private-sector actors, has rich historical
roots and is deeply intertwined with broader efforts to structure global society in ways that
favor American and Western cultures, economies, and governments. Powers, Shawn M.;
Jablonski, Michael (2015-03-20). The Real Cyber War: The Political Economy of Internet
Freedom (The History of Communication) (Kindle Locations 200-206). University of Illinois
Press. Kindle Edition.
proxy to ensure private-sector voices and interests dominate international fora. This section
concludes with a discussion of economic externalities, the basis for a network effect theory,
suggesting an alternative framing to the neoliberal, modernization, and information
sovereignty discourses that often dominate debates surrounding internet governance. Powers,
Shawn M.; Jablonski, Michael (2015-03-20). The Real Cyber War: The Political Economy of
Internet Freedom (The History of Communication) (Kindle Locations 2353-2358). University of
Illinois Press. Kindle Edition.
The advent of liberalism would change this conception and postulate a game
where sum is different from zero. That is to say that liberalism conceived
the improvement of one state (the state-centered objective of the reason
of state remained the same) as linked to the improvement of the
others. Neoliberalism, for its part, adds to this the necessity of
intervention. Kants Perpetual Peace fit in this context. Following the
German author, perpetual peace would be guaranteed by the
globalization of commerce. During the decade Transcience (2011) Vol. 2,
Issue 2 ISSN 2191-1150 Cuadro: Liberal democracy, American
Exceptionalism and Racism. 34 of 1990s a similar thesis took force: The socalled Democratic Peace Theory postulated that perpetual peace
could be achieved via the globalization of democracy. George W.
Bush administration would take this thesis as its own and argue
that imposing democracy (on Iraq) would make the world safer and
more peaceful, implicitly arguing that US democracy is the best
socio-political model. Finally, such voices would also be specially heard
during the first weeks of the still ongoing Arab uprising. Homologated with
freedom, liberal democracy appears (mainly in liberal powers
discourses, but not just there) as a universal claim of people all over
the world, thereby becoming a necessity of history (claimed once by
Fukuyama), and justifying, once more, interventionist policies in its
name. Democracy, Human Rights and Freedom, as we will see, have been
homologated. Clearly different and Western notions have been thus mixed,
confused and universalized. Freedom, as a governmental technique, is at the
center of the liberal practice. Indeed, liberalism -understood not as an
ideology, but rather as a technology of power- is characterized as a
freedom-consuming practice. That is to say that it can only function if
some liberties exist7. In consequence, if liberalism has a need of freedom,
then, it is obliged to produce it, but, at the same time, to organize it. In other
words, it is not only a producer of freedom, but also an organizer of it: its
administrator. This administration of freedom leads to the necessity
of securing those natural phenomena (i.e.: population) and, with that
objective, to interventionist practices. The fact that the police device be
dismantled, Foucault asserts, does not mean that governmental
intervention ceases to exist. On the contrary, this is an essential
feature of liberal government.
Innocence does not just imply not recognizing historical and political
responsibilities, but it also has another effect: prevent critique of
the self. Indeed, innocence can be defined as a constant need to put ones
own problems out. This mechanism generates the closure of the
totality, the homogenization of the We, through the establishment
of a difference. It is in this sense that David Campbell argues that United
States foreign policy [is] understood as a political practice central to the
constitution, production, and maintenance of American political identity
(Campbell, 1998: 8) But the most important line uniting liberals and
conservatives is the assumption of American exceptionalism5, which -in
order to put the US in the field of history- can be understood as a fervent
nationalism. This assumption, which emerges at specific moments,
has very deep roots, going back to 1630 and arrival of Puritans in North
America. Nevertheless, the way in which they understand this constructed
assumption that reified takes the form of a fact- indicates which political
impulse prevails: internationalism or isolationism. Indeed, exceptionalism
can be read in two different ways. On the one hand, it can be
understood in terms of uniqueness (this reading comes from
Tocquevilles Democracy in America), in which case America6 is
considered a model to be emulated -the city upon the hill-. On the
other hand, exceptional can be understood in the sense of being
the best socio-economic model. From our point of view, both readings
permit imperialist policies based on the idea of superiority that
underlies American exceptionalism. Indeed, the belief in being the
chosen people that accompanied the Puritans formed the basis of their
right to kill the natives inhabiting the conquered territory. In the
same sense, this led to the 19th centurys idea of the manifest
destiny to expand democracy from coast to coast in North America,
adiscourse which had the effect of conquering Mexican territory, for
example. 4THE WHITE HOUSE (2001), President Launches Education
Partnership with Muslim Nations (10/25/2001). (Online), retrieved on
February 2009. www.whitehouse.gov. 5Scowcroft: (. . . ) in the world as it is
now, only the United States can exercise enlightened leadership. Not direct
people what to do. But say, Gather round. This is the way the world
community needs to go. Brzezinski: Amen. Scowcroft: Were the only ones
who can be the guiding light. (Brzezinski; Scowcroft, 2008: 35). We have
brought this quote to illustrate the accord that exists between Democrats
and Republicans with respect to American exceptionalism. 6From a LatinAmerican point of view, that the US calls itself America gives a sense of
imperial desire over a shared continent. That explains the quotation marks.
Transcience (2011) Vol. 2, Issue 2 ISSN 2191-1150 Cuadro: Liberal
democracy, American Exceptionalism and Racism. 33 The meeting of
exceptionalism, liberalism and the colossal US military machine is
explosive. Because the idea of exceptionalism (reified as it is, not being
criticized) expresses some sort of superiority that not only gives the
US the right of lecturing other people on how to organize their
societies, but also establishes a sort of hierarchy of life value, at the
top of which rest American lives. If we add to this the disproportionate
military apparatus and a liberal discourse affirming US action is carried out in
the name of Humanity and not because of self-interest, the real possibility
to carry out extermination policies towards those who do not agree
with the way of life that is being imposed on them emerges. This is
one way to understand a fundamental US paradox: While it has had the
leading role in constructing the most complex international legal
order to maintain peace, it has, at the same time, constructed a
colossal military machine -without a peer competitor- that cannot be
understood solely in terms of defense (of Humanity). What we are trying
to emphasize is the intrinsic linkage between US democracy and
violence and the danger that accompanies it when used in the name
of universality, because it can lead to an exterminating violence. As
Benjamin once said, this violence is not just a conservative one, but can
act as a founder one (1995). And this is important too: No democracy
works without violence and -we do not have to forget- violence is in
the origins of US democracy. Indeed, it was built on the genocide of
natives and slavery. Furthermore, must consider this an open chapter in
history: in Libya, in Afghanistan, in Iraq (just for citing some examples) US is
currently exercising founder violence. Whether the exceptionalism is
understood as an example or as a right and a duty to impose particular
values on other people, both meanings shed light on the sense of superiority
that permeates US identity. We can affirm thus that American
exceptionalism is no more than a form of racism. This assertion
deserves further development.
Link - Psychoanalysis
Surveillance happens because we only see what we wish to