NZ Attorney General on GCSB Intercepts in Urewera 16 Case: “That Evidence Will Never See the Light of Day.”

November 8th, 2007

Not even in 200 years? * uncomfortable chuckle *

Why would the evidence—collected under interception warrants—“never see the light of day?” Well, it turns out that the government isn’t going to go with terrorism charges here after all. But… Revealing the “evidence” would reveal the methods by which it was collected, and, in all likelihood, shine an unwelcome light on the deeply disturbing covert relationship between the New Zealand and U.S. Governments in this area.

Of course, Cullen doesn’t mention ECHELON or the Government Communications Security Bureau.

This will be a bit arcane for most of you in North America and Europe, but Kiwis should do some reading along these lines: gcsb domestic.

Via: Stuff:

Dr Cullen said he had seen the evidence.

“Some of the evidence, which is relevant to what the Solicitor-General was considering, will, of course, come out in consideration of the charges under the Firearms Act,” he said.

“Some of the evidence will not come out under those considerations, that is evidence under interception warrants etc which, of course, is not relevant to the firearms charges.

“That evidence will never see the light of day.

“All I can say is, having read some of that evidence myself, I can also believe that what the Solicitor-General said is absolutely correct – the police had a reasonable basis on which to refer matters to the Solicitor-General.”

Research Credit: Alison


U.S. Military Veterans Constitute a Quarter of America’s Homeless

November 8th, 2007

Via: AP:

Veterans make up one in four homeless people in the United States, though they are only 11 percent of the general adult population, according to a report to be released Thursday.

And homelessness is not just a problem among middle-age and elderly veterans. Younger veterans from Iraq and Afghanistan are trickling into shelters and soup kitchens seeking services, treatment or help with finding a job.


Hushmail: Encrypted Email Provider Turns Over Clear Text Messages to Feds

November 8th, 2007

“I don’t believe in web based email solutions that purport to provide strong encryption and/or anonymity. Who knows what their applets and servers are doing? Not me.”

—The Ugly Truth About Online Anonymity

* sigh *

Via: Wired:

Hushmail, a longtime provider of encrypted web-based email, markets itself by saying that “not even a Hushmail employee with access to our servers can read your encrypted e-mail, since each message is uniquely encoded before it leaves your computer.”

But it turns out that statement seems not to apply to individuals targeted by government agencies that are able to convince a Canadian court to serve a court order on the company.

A September court document (.pdf) from a federal prosecution of alleged steroid dealers reveals the Canadian company turned over 12 CDs worth of e-mails from three Hushmail accounts, following a court order obtained through a mutual assistance treaty between the U.S. and Canada.


Mark Klein on AT&T/NSA Domestic Surveillance Program: “The NSA is Getting Everything.”

November 8th, 2007

Must see related stories:

NSA, AT&T and the NarusInsight Intercept Suite

Synthetic Environments for Analysis and Simulation

AT&T Invents Programming Language for Mass Surveillance

Via: Washington Post:

A Story of Surveillance
Former Technician ‘Turning In’ AT&T Over NSA Program

By Ellen Nakashima
Washington Post Staff Writer
Wednesday, November 7, 2007; D01

His first inkling that something was amiss came in summer 2002 when he opened the door to admit a visitor from the National Security Agency to an office of AT&T in San Francisco.

“What the heck is the NSA doing here?” Mark Klein, a former AT&T technician, said he asked himself.

A year or so later, he stumbled upon documents that, he said, nearly caused him to fall out of his chair. The documents, he said, show that the NSA gained access to massive amounts of e-mail and search and other Internet records of more than a dozen global and regional telecommunications providers. AT&T allowed the agency to hook into its network at a facility in San Francisco and, according to Klein, many of the other telecom companies probably knew nothing about it.

Klein is in Washington this week to share his story in the hope that it will persuade lawmakers not to grant legal immunity to telecommunications firms that helped the government in its anti-terrorism efforts.

The plain-spoken, bespectacled Klein, 62, said he may be the only person in the country in a position to discuss firsthand knowledge of an important aspect of the Bush administration’s domestic surveillance program. He is retired, so he isn’t worried about losing his job. He did not have security clearance, and the documents in his possession were not classified, he said. He has no qualms about “turning in,” as he put it, the company where he worked for 22 years until he retired in 2004.

“If they’ve done something massively illegal and unconstitutional — well, they should suffer the consequences,” Klein said. “It’s not my place to feel bad for them. They made their bed, they have to lie in it. The ones who did [anything wrong], you can be sure, are high up in the company. Not the average Joes, who I enjoyed working with.”

In an interview yesterday, he alleged that the NSA set up a system that vacuumed up Internet and phone-call data from ordinary Americans with the cooperation of AT&T . Contrary to the government’s depiction of its surveillance program as aimed at overseas terrorists, Klein said, much of the data sent through AT&T to the NSA was purely domestic. Klein said he believes that the NSA was analyzing the records for usage patterns as well as for content.

He said the NSA built a special room to receive data streamed through an AT&T Internet room containing “peering links,” or major connections to other telecom providers. The largest of the links delivered 2.5 gigabits of data — the equivalent of one-quarter of the Encyclopedia Britannica’s text — per second, said Klein, whose documents and eyewitness account form the basis of one of the first lawsuits filed against the telecom giants after the government’s warrantless-surveillance program was reported in the New York Times in December 2005.

Claudia Jones, an AT&T spokeswoman, said she had no comment on Klein’s allegations. “AT&T is fully committed to protecting our customers’ privacy. We do not comment on matters of national security,” she said.

The NSA and the White House also declined comment on Klein’s allegations.

Klein is urging Congress not to block Hepting v. AT&T, a class-action suit pending in federal court in San Francisco, as well as 37 other lawsuits charging carriers with illegally collaborating with the NSA. He was accompanied yesterday by lawyers for the Electronic Frontier Foundation, which filed Hepting v. AT&T in 2006. Together, they are urging key U.S. senators to oppose a pending White House-endorsed immunity provision that would effectively wipe out the lawsuits. The Judiciary Committee is expected to take up the measure Thursday.

In summer 2002, Klein was working in an office responsible for Internet equipment when an NSA representative arrived to interview a management-level technician for a special job whose details were secret.

“That’s when my antennas started to go up,” he said. He knew that the NSA was supposed to work on overseas signals intelligence.

The job entailed building a “secret room” in an AT&T office 10 blocks away, he said. By coincidence, in October 2003, Klein was transferred to that office and assigned to the Internet room. He asked a technician there about the secret room on the 6th floor, and the technician told him it was connected to the Internet room a floor above. The technician, who was about to retire, handed him some wiring diagrams.

“That was my ‘aha!’ moment,” Klein said. “They’re sending the entire Internet to the secret room.”

The diagram showed splitters, glass prisms that split signals from each network into two identical copies. One fed into the secret room, the other proceeded to its destination, he said.

“This splitter was sweeping up everything, vacuum-cleaner-style,” he said. “The NSA is getting everything. These are major pipes that carry not just AT&T’s customers but everybody’s.”

One of Klein’s documents listed links to 16 entities, including Global Crossing, a large provider of voice and data services in the United States and abroad; UUNet, a large Internet provider in Northern Virginia now owned by Verizon; Level 3 Communications, which provides local, long-distance and data transmission in the United States and overseas; and more familiar names such as Sprint and Qwest. It also included data exchanges MAE-West and PAIX, or Palo Alto Internet Exchange, facilities where telecom carriers hand off Internet traffic to each other.

“I flipped out,” he said. “They’re copying the whole Internet. There’s no selection going on here. Maybe they select out later, but at the point of handoff to the government, they get everything.”

Qwest has not been sued because of media reports last year that said the company declined to participate in an NSA program to build a database of domestic phone-call records out of concern about its legality. What the documents show, Klein contends, is that the NSA apparently was collecting several carriers’ communications, probably without their consent.

Another document showed that the NSA installed in the room a semantic traffic analyzer made by Narus, which Klein said indicated that the NSA was doing content analysis.

Steve Bannerman, Narus’s marketing vice president, said in an interview that the NarusInsight system is “the world’s most powerful Internet traffic processing engine.” He said it is used to detect worms, as well as to capture information to help authorities stop criminal activity. He said it can track a communication’s origin and destination, as well as its content. He declined to comment on AT&T’s use of the system.

Klein said he decided to go public after President Bush defended the NSA’s surveillance program as limited to collecting phone calls between suspected terrorists overseas and people in the United States. Klein said the documents show that the scope was much broader.

Klein was last in Washington in 1969, to take part in an antiwar protest. Now, he said with a chuckle, he’s here in a gray suit as a lobbyist.


Cryptogon Readers Send Contributions

November 8th, 2007

There has been so much breaking news lately that I have been slow to acknowledge the outpouring of support in early November:

IL $140
MW $20
DT $25
MW2 $20

Thank you all very much.


October Earnings

November 8th, 2007

In October, total earnings from Cryptogon and Farmlet came to an incredible $1482.54, or roughly three times the minimum monthly goal.

As usual, direct contributions represented the largest component of earnings, but readers are making heavy use of Cryptogon’s partner companies. The commissions that resulted from affiliate relationships exceeded the minimum monthly goal for the first time. That is a major milestone.

Cryptogon readers moved hundreds of thousands of dollars into physical gold using BullionVault. The October commissions were three times the previous record.

Amazon sales were very strong as well. Someone bought a Babycomp! Congratulations to that reader. You have made a VERY worthwhile purchase. (I’ve written about the Ladycomp here and here.)

We also had our first Amazon.co.uk purchase. Thanks to Becky’s sister. 😉

Here are the Amazon sites with Cryptogon affiliate goodness built in:

amazon.com – amazon.ca – amazon.co.uk – amazon.de – amazon.fr

A couple of readers signed up for webhosting with BlueHost. Thanks go out to Megahaters and Anonymous. (Note: If you sign up for hosting with BlueHost and DO NOT want me to acknowledge your site, please let me know. Generally, people like to see traffic showing up to their new site from Cryptogon, but sometimes they don’t. If you don’t want your site mentioned, just send me an email from the domain that you signed up with on BlueHost and it won’t be mentioned.)

Finally, Financial Web continued their long running sponsorship of Cryptogon.

Well, there’s grist piling up in the mill. I better get to it.

Thanks to all of you for making October such an excellent month for earnings.


Merrill Lynch Economist on Dollar Collapse: Not “Armageddon,” but Part of a “Global Rebalancing Process”

November 7th, 2007

Well, I’m glad we’ve got that cleared up.

I’m also glad that I “rebalanced” my assets out of the U.S. a long time ago.

Via: Bloomberg:

The falling dollar is part of a “global rebalancing process” and isn’t cause for alarm, according to David Rosenberg, chief North American economist at Merrill Lynch & Co.

The dollar, which has dropped 30 percent against the euro in the past five years, reflects a correction of the U.S. currency’s overvaluation from 1997 to 2002, Rosenberg said in a research note dated Nov. 2. The dollar, measured by the Federal Reserve’s trade-weighted index, is little changed compared with its value a decade ago, he said.

“The dollar is no lower today than it was in 1997 — we don’t remember that being a particular Armageddon-type time period,” Rosenberg said. “Far from being a disturbing development, the dollar’s decline is part and parcel of the global rebalancing process.”


U.S. GMO Rice Caused $1.2 Billion in Damages

November 7th, 2007

Madness x Greed = U.S. Agribusiness

Via: Reuters:

Trace amounts of genetically modified varieties of rice that were found commingled in the U.S. rice supply in 2006 caused more than $1.2 billion in damages and additional costs, the environmental group Greenpeace International said on Monday.

U.S. rice exports fell sharply after Bayer CropScience, a division of Bayer, reported in 2006 that trace amounts of its biotech LibertyLink rice variety LLRICE601 were found in a widely grown variety of U.S. rice called Cheniere. Later, a second variety called Clearfield 131 was found to be contaminated with LLRICE604.

“Until we’ve seen the report, we really can’t comment,” said Bayer spokesman Greg Coffey.

The discovery of GMO-tainted rice triggered the largest financial and marketing disaster in the history of the U.S. rice industry, according to Greenpeace. At least 30 countries were affected by the contamination and many closed their markets to U.S. rice, including major importers such as the European Union and the Philippines.

The overall cost to the industry, estimated at $1.2 billion, included losses of up to $253 million from food-product recalls in Europe, U.S. export losses of $254 million in the 2006/07 crop year and future export losses of $445 million, Greenpeace said.

“It’s impossible to know what the cost is,” said David Coia of trade group USA Rice Federation. “It’s certainly the most significant event in the history of the U.S. rice industry. The current rice crop is in pretty good shape. We’ve been able to eliminate most of the genetically engineered material.”

Hundreds of U.S. farmers and European businesses have filed lawsuits against Bayer in attempts to recoup their losses, said the environmental group.

Greenpeace is urging India not to go ahead with field trials of GMO varieties because it could risk suffering a similar contamination and loss of exports.


Dollar: Top China Official Suggests Currency Shift

November 7th, 2007

Via: MarketWatch:

The U.S. dollar stumbled to new lows on Wednesday after a top Chinese official called for the country to shift more of its huge foreign exchange stockpiles out of the beleaguered greenback.
Cheng Siwei, vice chairman of the Standing Committee of the National People’s Congress, was quoted by wire services as saying China should shift more of its $1.43 trillion of currency reserves into “stronger currencies,” such as the euro, to offset “weak” currencies like the dollar.

He also said a rapid appreciation of the yuan is not necessarily the right move — as Washington and increasingly Europe are requesting — though Cheng insisted the country wasn’t actively seeking a major trade surplus.

The reports sent the beleaguered dollar to new lows against the euro, with the shared currency surging as high as $1.4703 from $1.4559 late Tuesday.

The Japanese yen also rallied, with the dollar falling to 113.52 yen from 114.71 yen. The British pound surged to $2.1025 — the first time sterling has broken $2.10 since May 1981 — from $2.0866.

Gold futures, which traditionally move in the opposite direction to the dollar because of their role as an inflation hedge, jumped $23.40 to $846.80 an ounce, and rose as high as $848 an ounce during the European morning. Oil futures rose above $98 a barrel in electronic trading.

“As if ballooning U.S. credit/ housing crunch data, back-to-back Fed cuts and soaring oil prices weren’t enough to stun the U.S. dollar, now we have the specter of central bank reserve asset diversification out of U.S. dollars to contend with,” said Vincent Chaigneau, the head of fixed income and foreign currency strategy at Societe Generale, in a note to clients.


GM Quarterly Loss One of the Biggest in Corporate History

November 7th, 2007

Via: Yahoo / AP:

General Motors Corp. posted a company record $39 billion loss in the third quarter, as a charge involving unused tax credits brought an abrupt end to string of three profitable quarters for the nation’s largest automaker.

The loss reported Wednesday was one of the biggest quarterly corporate deficits ever and it sent GM’s shares down more than 8 percent in premarket trading.

The loss was attributed to a $38.6 billion noncash charge largely related to establishing a valuation allowance against accumulated deferred tax credits in the U.S., Canada and Germany, as well as mortgage losses at GM’s former financial arm, GMAC Financial Services.

But accounting rules require that companies expecting to keep losing money cannot keep carrying deferred tax credits indefinitely and must write down the value of such credits.


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