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Hacking BIOS Chips isn’t just the NSA’s domain anymore

Monday, March 23rd, 2015

– I’m coming to believe that the only secrets left are the things in your head that you’ve never told another soul. And I’m increasingly fearful that those who want to dominate our societies in the name of ‘security’ are developing the tools to disarm any who might try to organize against them.

– In the coming years, when the various dominator powers war against each other for global domination, those of us who understand little of these cyber wars will be like rats beneath the wheels of the passing chariots.

– As I see it, the only saving grace is that the type of intelligence it takes to participate in these wars is in no way exclusive to those with the urge to dominate. But the Dominators do have the enviable advantage of money and organizational power.

– And note well, my friends, that nothing I’ve just said acknowledges in any way the other preeminent fact of our times – that our presence within, expansion into and carelessness with the natural environment around us is virtually certain to bring it down around our ears, unless we change our ways.

– Those going forward from here will increasingly live in ‘interesting times’. We are truly at a pivot-point in human history and most of us are deeply asleep with regard to how fragile the world around us is becoming.

– dennis

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THE ABILITY TO hack the BIOS chip at the heart of every computer is no longer reserved for the NSA and other three-letter agencies. Millions of machines contain basic BIOS vulnerabilities that let anyone with moderately sophisticated hacking skills compromise and control a system surreptitiously, according to two researchers.

The revelation comes two years after a catalogue of NSA spy tools leaked to journalists in Germany surprised everyone with its talk about the NSA’s efforts to infect BIOS firmware with malicious implants.

The BIOS boots a computer and helps load the operating system. By infecting this core software, which operates below antivirus and other security products and therefore is not usually scanned by them, spies can plant malware that remains live and undetected even if the computer’s operating system were wiped and re-installed.

BIOS-hacking until now has been largely the domain of advanced hackers like those of the NSA. But researchers Xeno Kovah and Corey Kallenberg presented a proof-of-concept attack today at the CanSecWest conference in Vancouver, showing how they could remotely infect the BIOS of multiple systems using a host of new vulnerabilities that took them just hours to uncover. They also found a way to gain high-level system privileges for their BIOS malware to undermine the security of specialized operating systems like Tails—used by journalists and activists for stealth communications and handling sensitive data.

Although most BIOS have protections to prevent unauthorized modifications, the researchers were able to bypass these to reflash the BIOS and implant their malicious code.

Kovah and Kallenberg recently left MITRE, a government contractor that conducts research for the Defense Department and other federal agencies, to launch LegbaCore, a firmware security consultancy. They note that the recent discovery of a firmware-hacking tool by Kaspersky Lab researchers makes it clear that firmware hacking like their BIOS demo is something the security community should be focusing on.

Because many BIOS share some of the same code, they were able to uncover vulnerabilities in 80 percent of the PCs they examined, including ones from Dell, Lenovo and HP. The vulnerabilities, which they’re calling incursion vulnerabilities, were so easy to find that they wrote a script to automate the process and eventually stopped counting the vulns it uncovered because there were too many.

“There’s one type of vulnerability, which there’s literally dozens of instances of it in every given BIOS,” says Kovah. They disclosed the vulnerabilities to the vendors and patches are in the works but have not yet been released. Kovah says, however, that even when vendors have produced BIOS patches in the past, few people have applied them.

“Because people haven’t been patching their BIOSes, all of the vulnerabilities that have been disclosed over the last couple of years are all open and available to an attacker,” he notes. “We spent the last couple of years at MITRE running around to companies trying to get them to do patches. They think BIOS is out of sight out of mind [because] they don’t hear a lot about it being attacked in the wild.”

An attacker could compromise the BIOS in two ways—through remote exploitation by delivering the attack code via a phishing email or some other method, or through physical interdiction of a system. In that case, the researchers found that if they had physical access to a system they could infect the BIOS on some machines in just two minutes. This highlights just how quickly and easy it would be, for example, for a government agent or law enforcement officer with a moment’s access to a system to compromise it.

Their malware, dubbed LightEater, uses the incursion vulnerabilities to break into and hijack the system management mode to gain escalated privileges on the system. System management mode, or SMM, is an operations mode in Intel processors that firmware uses to do certain functions with high-level system privileges that exceed even administrative and root-level privileges, Kovah notes. Using this mode, they can rewrite the contents of the BIOS chip to install an implant that gives them a persistent and stealth foothold. From there, they can install root kits and steal passwords and other data from the system.

But more significantly, SMM gives their malware the ability to read all data and code that appears in a machine’s memory. This would allow their malware, Kovah points out, to subvert any computer using the Tails operating system—the security and privacy-oriented operating system Edward Snowden and journalist Glenn Greenwald used to handle NSA documents Snowden leaked. By reading data in memory, they could steal the encryption key of a Tails user to unlock encrypted data or swipe files and other content as it appears in memory. Tails is meant to be run from a secure USB flash drive or other removable media—so that conceivably it won’t be affected by viruses or other malware that may have infected the computer. It operates in the computer’s memory and once the operating system is shut down, Tails scrubs the RAM to erase any traces of its activity. But because the LightEater malware uses the system management mode to read the contents of memory, it can grab the data while in memory before it gets scrubbed and store it in a safe place from which it can later be exfiltrated. And it can do this while all the while remaining stealth.

“Our SMM attacker lives in a place nobody checks today to see if there’s an attacker,” Kovah says. “System management mode can read everyone’s RAM, but nobody can read System Management Mode’s RAM.”

Such an attack shows, he says, that the operating system Snowden chose to protect himself can’t actually protect him from the NSA or anyone else who can design an attack like LightEater.

– To the original article: ➡

– research thanks to: K. M.

Posted in CrashBlogging, CyberChaos, Human Rights, Social Breakdown, Technical, The Perfect Storm | No Comments »

What ISIS Really Wants

Monday, February 23rd, 2015

– I just read this long piece in the Atlantic Magazine and it is the clearest (and the most frightening) thing I’ve read on ISIS, who they are, why they are and what they want.

– It is a long but, I think, essential read to understand what ISIS is about.

– dennis

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The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.

What is the Islamic State?

Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.

The group seized Mosul, Iraq, last June, and already rules an area larger than the United Kingdom. Abu Bakr al-Baghdadi has been its leader since May 2010, but until last summer, his most recent known appearance on film was a grainy mug shot from a stay in U.S. captivity at Camp Bucca during the occupation of Iraq. Then, on July 5 of last year, he stepped into the pulpit of the Great Mosque of al-Nuri in Mosul, to deliver a Ramadan sermon as the first caliph in generations—upgrading his resolution from grainy to high-definition, and his position from hunted guerrilla to commander of all Muslims. The inflow of jihadists that followed, from around the world, was unprecedented in its pace and volume, and is continuing.

Our ignorance of the Islamic State is in some ways understandable: It is a hermit kingdom; few have gone there and returned. Baghdadi has spoken on camera only once. But his address, and the Islamic State’s countless other propaganda videos and encyclicals, are online, and the caliphate’s supporters have toiled mightily to make their project knowable. We can gather that their state rejects peace as a matter of principle; that it hungers for genocide; that its religious views make it constitutionally incapable of certain types of change, even if that change might ensure its survival; and that it considers itself a harbinger of—and headline player in—the imminent end of the world.

The Islamic State, also known as the Islamic State of Iraq and al-Sham (ISIS), follows a distinctive variety of Islam whose beliefs about the path to the Day of Judgment matter to its strategy, and can help the West know its enemy and predict its behavior. Its rise to power is less like the triumph of the Muslim Brotherhood in Egypt (a group whose leaders the Islamic State considers apostates) than like the realization of a dystopian alternate reality in which David Koresh or Jim Jones survived to wield absolute power over not just a few hundred people, but some 8 million.

We have misunderstood the nature of the Islamic State in at least two ways. First, we tend to see jihadism as monolithic, and to apply the logic of al?Qaeda to an organization that has decisively eclipsed it. The Islamic State supporters I spoke with still refer to Osama bin Laden as “Sheikh Osama,” a title of honor. But jihadism has evolved since al-Qaeda’s heyday, from about 1998 to 2003, and many jihadists disdain the group’s priorities and current leadership.

Bin Laden viewed his terrorism as a prologue to a caliphate he did not expect to see in his lifetime. His organization was flexible, operating as a geographically diffuse network of autonomous cells. The Islamic State, by contrast, requires territory to remain legitimate, and a top-down structure to rule it. (Its bureaucracy is divided into civil and military arms, and its territory into provinces.)

We are misled in a second way, by a well-intentioned but dishonest campaign to deny the Islamic State’s medieval religious nature. Peter Bergen, who produced the first interview with bin Laden in 1997, titled his first book Holy War, Inc. in part to acknowledge bin Laden as a creature of the modern secular world. Bin Laden corporatized terror and franchised it out. He requested specific political concessions, such as the withdrawal of U.S. forces from Saudi Arabia. His foot soldiers navigated the modern world confidently. On Mohammad Atta’s last full day of life, he shopped at Walmart and ate dinner at Pizza Hut.

There is a temptation to rehearse this observation—that jihadists are modern secular people, with modern political concerns, wearing medieval religious disguise—and make it fit the Islamic State. In fact, much of what the group does looks nonsensical except in light of a sincere, carefully considered commitment to returning civilization to a seventh-century legal environment, and ultimately to bringing about the apocalypse.

The most-articulate spokesmen for that position are the Islamic State’s officials and supporters themselves. They refer derisively to “moderns.” In conversation, they insist that they will not—cannot—waver from governing precepts that were embedded in Islam by the Prophet Muhammad and his earliest followers. They often speak in codes and allusions that sound odd or old-fashioned to non-Muslims, but refer to specific traditions and texts of early Islam.

To take one example: In September, Sheikh Abu Muhammad al-Adnani, the Islamic State’s chief spokesman, called on Muslims in Western countries such as France and Canada to find an infidel and “smash his head with a rock,” poison him, run him over with a car, or “destroy his crops.” To Western ears, the biblical-sounding punishments—the stoning and crop destruction—juxtaposed strangely with his more modern-sounding call to vehicular homicide. (As if to show that he could terrorize by imagery alone, Adnani also referred to Secretary of State John Kerry as an “uncircumcised geezer.”)

But Adnani was not merely talking trash. His speech was laced with theological and legal discussion, and his exhortation to attack crops directly echoed orders from Muhammad to leave well water and crops alone—unless the armies of Islam were in a defensive position, in which case Muslims in the lands of kuffar, or infidels, should be unmerciful, and poison away.

The reality is that the Islamic State is Islamic. Very Islamic. Yes, it has attracted psychopaths and adventure seekers, drawn largely from the disaffected populations of the Middle East and Europe. But the religion preached by its most ardent followers derives from coherent and even learned interpretations of Islam.

Virtually every major decision and law promulgated by the Islamic State adheres to what it calls, in its press and pronouncements, and on its billboards, license plates, stationery, and coins, “the Prophetic methodology,” which means following the prophecy and example of Muhammad, in punctilious detail. Muslims can reject the Islamic State; nearly all do. But pretending that it isn’t actually a religious, millenarian group, with theology that must be understood to be combatted, has already led the United States to underestimate it and back foolish schemes to counter it. We’ll need to get acquainted with the Islamic State’s intellectual genealogy if we are to react in a way that will not strengthen it, but instead help it self-immolate in its own excessive zeal.

– More: ➡

Posted in CrashBlogging, Culture - How not to do it, Fundamentalism, Human Rights, Religion - The Wrong Way, Social Breakdown, Terrorism, The Perfect Storm, Women's Rights | No Comments »

How Trade Deals Boost the Top 1% and Bust the Rest

Saturday, February 21st, 2015

by Robert Reich – Chancellor’s Professor of Public Policy, University of California at Berkeley

Suppose that by enacting a particular law we’d increase the U.S. Gross Domestic Product. But almost all that growth would go to the richest 1 percent.

The rest of us could buy some products cheaper than before. But those gains would be offset by losses of jobs and wages.

This is pretty much what “free trade” has brought us over the last two decades.

I used to believe in trade agreements. That was before the wages of most Americans stagnated and a relative few at the top captured just about all the economic gains.

Recent trade agreements have been wins for big corporations and Wall Street, along with their executives and major shareholders. They get better access to foreign markets and billions of consumers.

They also get better protection for their intellectual property — patents, trademarks, and copyrights. And for their overseas factories, equipment, and financial assets.

But those deals haven’t been wins for most Americans.

The fact is, trade agreements are no longer really about trade. Worldwide tariffs are already low. Big American corporations no longer make many products in the United States for export abroad.

The biggest things big American corporations sell overseas are ideas, designs, franchises, brands, engineering solutions, instructions, and software.

Google, Apple, Uber, Facebook, Walmart, McDonalds, Microsoft, and Pfizer, for example, are making huge profits all over the world.

But those profits don’t depend on American labor — apart from a tiny group of managers, designers, and researchers in the U.S.

To the extent big American-based corporations any longer make stuff for export, they make most of it abroad and then export it from there, for sale all over the world — including for sale back here in the United States.

The Apple iPhone is assembled in China from components made in Japan, Singapore and a half-dozen other locales. The only things coming from the U.S. are designs and instructions from a handful of engineers and managers in California.

Apple even stows most of its profits outside the U.S. so it doesn’t have to pay American taxes on them.

This is why big American companies are less interested than they once were in opening other countries to goods exported from the United States and made by American workers.

They’re more interested in making sure other countries don’t run off with their patented designs and trademarks. Or restrict where they can put and shift their profits.

In fact, today’s “trade agreements” should really be called “global corporate agreements” because they’re mostly about protecting the assets and profits of these global corporations rather than increasing American jobs and wages. The deals don’t even guard against currency manipulation by other nations.

According to Economic Policy Institute, the North American Free Trade Act cost U.S. workers almost 700,000 jobs, thereby pushing down American wages.

Since the passage of the Korea-U.S. Free Trade Agreement, America’s trade deficit with Korea has grown more than 80 percent, equivalent to a loss of more than 70,000 additional U.S. jobs.

Since China’s admission to the World Trade Organization, the U.S. goods trade deficit with China increased $23.9 billion (7.5 percent) to $342.6 billion. Again, the ultimate result has been to keep U.S. wages down.

The old-style trade agreements of the 1960s and 1970s increased worldwide demand for products made by American workers, and thereby helped push up American wages.

The new-style global corporate agreements mainly enhance corporate and financial profits, and push down wages.

That’s why big corporations and Wall Street are so enthusiastic about the upcoming Trans Pacific Partnership — the giant deal among countries responsible for 40 percent of the global economy.

That deal would give giant corporations even more patent protection overseas. It would also guard their overseas profits.

And it would allow them to challenge any nation’s health, safety and environmental laws that stand in the way of their profits — including our own.

The Administration calls the Trans Pacific Partnership a key part of its “strategy to make U.S. engagement in the Asia-Pacific region a top priority.”

Translated: The White House thinks it will help the U.S. contain China’s power and influence.

But it will make giant U.S. global corporations even more powerful and influential.

White House strategists seem to think such corporations are accountable to the U.S. government. Wrong. At most, they’re answerable to their shareholders, who demand high share prices whatever that requires.

I’ve seen first-hand how effective Wall Street and big corporations are at wielding influence — using lobbyists, campaign donations, and subtle promises of future jobs to get the global deals they want.

Global deals like the Trans Pacific Partnership will boost the profits of Wall Street and big corporations, and make the richest 1 percent even richer.

But they’ll bust the rest of America.

– To the Original: ➡

Posted in Capitalism & Corporations, Corporate takeover of Government, Corruption, CrashBlogging, Financial melt-down, Human Rights, Politics - The Wrong Way, Social Breakdown, The Perfect Storm | No Comments »

NSA hiding Equation spy program on hard drives

Wednesday, February 18th, 2015

– In 1999, Motorola, at my request, sent me to Silicon Valley for a week-long course in advanced Windows Win32 programming.

– During this course, I remember talking with another participant; a young computer whiz who was from the NSA.

– He talked about how they (the NSA computer guys) conducted red-team green-team battles to see who could infiltrate the other’s team’s computer systems.

– But the thing he talked about, that caught my interest the most, was when he said the hot new frontier was getting into firmware as a way of exerting control over computers remotely. It was a new idea that immediately fascinated me but once he saw my interest, I think he realized that he might be talking too much and clammed up. He avoided me for the rest of the week.

– The story, below, says that the technique of firmware infiltration may have been around since 2001. I’m sure I heard the sound of the other shoe dropping when I read that.

– The article says:

It is not clear how the NSA may have obtained the hard drives’ source code. Western Digital spokesman Steve Shattuck said the company “has not provided its source code to government agencies.” The other hard drive makers would not say if they had shared their source code with the NSA.

– I don’t find it all that mysterous. How hard would it be for the NSA to field computer-savvy agents directed to seek employment in these companies? Or, as the article says, to require the companies to provide their source code to the NSA for security reviews before the U.S. Government will allow it to be used in U.S. facilities?

– Once the NSA has the firmware’s source code, they can modify it and then intercept the firm’s drives in shipment and refresh the firmware on the intercepted drives with the NSA’s new stuff … that does everything the old firmware does … and a bit more.

– The interception-during-shipment technique was outed over a year ago as being one of their favorite techniques though in that case it had to do with routers.

– dennis

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The US National Security Agency has figured out how to hide spying software deep within hard drives made by Western Digital, Seagate, Toshiba and other top manufacturers, giving the agency the means to eavesdrop on the majority of the world’s computers, according to cyber researchers and former operatives.

That long-sought and closely guarded ability was part of a cluster of spying programs discovered by Kaspersky Lab, the Moscow-based security software maker that has exposed a series of Western cyberespionage operations.

Kaspersky said it found personal computers in 30 countries infected with one or more of the spying programs, with the most infections seen in Iran, followed by Russia, Pakistan, Afghanistan, China, Mali, Syria, Yemen and Algeria. The targets included government and military institutions, telecommunication companies, banks, energy companies, nuclear researchers, media, and Islamic activists, Kaspersky said.

The firm declined to publicly name the country behind the spying campaign, but said it was closely linked to Stuxnet, the NSA-led cyberweapon that was used to attack Iran’s uranium enrichment facility. The NSA is the agency responsible for gathering electronic intelligence on behalf of the United States.

A former NSA employee told Reuters that Kaspersky’s analysis was correct, and that people still in the intelligence agency valued these spying programs as highly as Stuxnet. Another former intelligence operative confirmed that the NSA had developed the prized technique of concealing spyware in hard drives, but said he did not know which spy efforts relied on it.

NSA spokeswoman Vanee Vines declined to comment.

Kaspersky published the technical details of its research on Monday, which should help infected institutions detect the spying programs, some of which trace back as far as 2001.

The disclosure could further hurt the NSA’s surveillance abilities, already damaged by massive leaks by former contractor Edward Snowden. Snowden’s revelations have hurt the United States’ relations with some allies and slowed the sales of US technology products abroad.

The exposure of these new spying tools could lead to greater backlash against Western technology, particularly in countries such as China, which is already drafting regulations that would require most bank technology suppliers to proffer copies of their software code for inspection.

TECHNOLOGICAL BREAKTHROUGH

According to Kaspersky, the spies made a technological breakthrough by figuring out how to lodge malicious software in the obscure code called firmware that launches every time a computer is turned on.

Disk drive firmware is viewed by spies and cybersecurity experts as the second-most valuable real estate on a PC for a hacker, second only to the BIOS code invoked automatically as a computer boots up.

“The hardware will be able to infect the computer over and over,” lead Kaspersky researcher Costin Raiu said in an interview.

Though the leaders of the still-active espionage campaign could have taken control of thousands of PCs, giving them the ability to steal files or eavesdrop on anything they wanted, the spies were selective and only established full remote control over machines belonging to the most desirable foreign targets, according to Raiu. He said Kaspersky found only a few especially high-value computers with the hard-drive infections.

Kaspersky’s reconstructions of the spying programs show that they could work in disk drives sold by more than a dozen companies, comprising essentially the entire market. They include Western Digital, Seagate, Toshiba, IBM, Micron Technology and Samsung.

Western Digital, Seagate and Micron said they had no knowledge of these spying programs. Toshiba and Samsung declined to comment. IBM did not respond to requests for comment.

GETTING THE SOURCE CODE

Raiu said the authors of the spying programs must have had access to the proprietary source code that directs the actions of the hard drives. That code can serve as a roadmap to vulnerabilities, allowing those who study it to launch attacks much more easily.

“There is zero chance that someone could rewrite the [hard drive] operating system using public information,” Raiu said.

Concerns about access to source code flared after a series of high-profile cyberattacks on Google Inc and other US companies in 2009 that were blamed on China. Investigators have said they found evidence that the hackers gained access to source code from several big US tech and defense companies.

Seagate spokesman Clive Over said it has “secure measures to prevent tampering or reverse engineering of its firmware and other technologies.” Micron spokesman Daniel Francisco said the company took the security of its products seriously and “we are not aware of any instances of foreign code.”

According to former intelligence operatives, the NSA has multiple ways of obtaining source code from tech companies, including asking directly and posing as a software developer. If a company wants to sell products to the Pentagon or another sensitive US agency, the government can request a security audit to make sure the source code is safe.

“They don’t admit it, but they do say, ‘We’re going to do an evaluation, we need the source code,'” said Vincent Liu, a partner at security consulting firm Bishop Fox and former NSA analyst. “It’s usually the NSA doing the evaluation, and it’s a pretty small leap to say they’re going to keep that source code.”

Kaspersky called the authors of the spying program “the Equation group,” named after their embrace of complex encryption formulas.

The group used a variety of means to spread other spying programs, such as by compromising jihadist websites, infecting USB sticks and CDs, and developing a self-spreading computer worm called Fanny, Kasperky said.

Fanny was like Stuxnet in that it exploited two of the same undisclosed software flaws, known as “zero days,” which strongly suggested collaboration by the authors, Raiu said. He added that it was “quite possible” that the Equation group used Fanny to scout out targets for Stuxnet in Iran and spread the virus.

– To the Original: ➡

Posted in CrashBlogging, CyberChaos, Human Rights, Technical, The Perfect Storm | No Comments »

UN says global violence against schoolgirls rising

Saturday, February 14th, 2015

Girls in at least 70 countries facing higher number of threats and targeted killings for going to school, report says.

Girls in at least 70 countries are facing increasing threats, targeted killings and violence for trying to go to school, the UN human rights office, has said.

“Attacks against girls accessing education persist and, alarmingly, appear in some countries to be occurring with increasing regularity,” the OHCHR said in a paper looking at attacks on girls seeking to access education, published on Tuesday.

“According to UN sources, more than 3,600 separate attacks against educational institutions, teachers and students were recorded in 2012 alone.”

The report went on to remark that the exclusion or marginalisation of girls within the educational, political and economic realm means they are often unable to demand equal access to particular human rights.

The result, it argues, becomes a cycle of impunity reinforcing a subordinate social status for girls.

The right to education plays a “catalytic role in promoting substantive equality between men and women” in regards to economic, political, cultural and health development outcomes, the report said.

Underlying discrimination

Recent attacks targeting girls include the abduction of 300 schoolgirls in Nigeria by the armed group Boko Haram and the shooting of education activist Malala Yousafzai by members of the Taliban in Pakistan.

Many girls are the target of sexual violence, abduction, intimidation and harassment during war and peacetime resulting in lower attendance rates at schools, the report said.

In Pakistan’s Swat, the Taliban’s attacks and violent threats against girls, their families and teachers resulted in 120,000 female students and 8,000 female teachers ceasing to attend schools in 2009.

However, there have been other instances in which girls were targeted for their higher level of education.

The Lords’ Resistance Army in Uganda targeted secondary school girls because of their superior literacy which made them valuable recruits for military communications work.

The motivations for the attacks, in particular the underlying discrimination and gender stereotyping has aided in preventing girls from accessing education opportunities, the OHCR said.

The report concluded that violence against schoolgirls cannot be preventing without addressing broader patterns discrimination against women and girls.

– To the Original: ➡

Posted in Culture - How not to do it, Fundamentalism, Human Rights, Social Breakdown, Women's Rights | No Comments »

The Davos oligarchs are right to fear the world they’ve made

Tuesday, January 27th, 2015

Escalating inequality is the work of a global elite that will resist every challenge to its vested interests

The billionaires and corporate oligarchs meeting in Davos this week are getting worried about inequality. It might be hard to stomach that the overlords of a system that has delivered the widest global economic gulf in human history should be handwringing about the consequences of their own actions.

But even the architects of the crisis-ridden international economic order are starting to see the dangers. It’s not just the maverick hedge-funder George Soros, who likes to describe himself as a class traitor. Paul Polman, Unilever chief executive, frets about the “capitalist threat to capitalism”. Christine Lagarde, the IMF managing director, fears capitalism might indeed carry Marx’s “seeds of its own destruction” and warns that something needs to be done.

The scale of the crisis has been laid out for them by the charity Oxfam. Just 80 individuals now have the same net wealth as 3.5 billion people – half the entire global population. Last year, the best-off 1% owned 48% of the world’s wealth, up from 44% five years ago. On current trends, the richest 1% will have pocketed more than the other 99% put together next year. The 0.1% have been doing even better, quadrupling their share of US income since the 1980s.

This is a wealth grab on a grotesque scale. For 30 years, under the rule of what Mark Carney, the Bank of England governor, calls “market fundamentalism”, inequality in income and wealth has ballooned, both between and within the large majority of countries. In Africa, the absolute number living on less than $2 a day has doubled since 1981 as the rollcall of billionaires has swelled.

In most of the world, labour’s share of national income has fallen continuously and wages have stagnated under this regime of privatisation, deregulation and low taxes on the rich. At the same time finance has sucked wealth from the public realm into the hands of a small minority, even as it has laid waste the rest of the economy. Now the evidence has piled up that not only is such appropriation of wealth a moral and social outrage, but it is fuelling social and climate conflict, wars, mass migration and political corruption, stunting health and life chances, increasing poverty, and widening gender and ethnic divides.

Escalating inequality has also been a crucial factor in the economic crisis of the past seven years, squeezing demand and fuelling the credit boom. We don’t just know that from the research of the French economist Thomas Piketty or the British authors of the social study The Spirit Level. After years of promoting Washington orthodoxy, even the western-dominated OECD and IMF argue that the widening income and wealth gap has been key to the slow growth of the past two neoliberal decades. The British economy would have been almost 10% larger if inequality hadn’t mushroomed. Now the richest are using austerity to help themselves to an even larger share of the cake.

The big exception to the tide of inequality in recent years has been Latin America. Progressive governments across the region turned their back on a disastrous economic model, took back resources from corporate control and slashed inequality. The numbers living on less than $2 a day have fallen from 108 million to 53 million in little over a decade. China, which also rejected much of the neoliberal catechism, has seen sharply rising inequality at home but also lifted more people out of poverty than the rest of the world combined, offsetting the growing global income gap.

These two cases underline that increasing inequality and poverty are very far from inevitable. They’re the result of political and economic decisions. The thinking person’s Davos oligarch realises that allowing things to carry on as they are is dangerous. So some want a more “inclusive capitalism” – including more progressive taxes – to save the system from itself.

But it certainly won’t come about as a result of Swiss mountain musings or anxious Guildhall lunches. Whatever the feelings of some corporate barons, vested corporate and elite interests – including the organisations they run and the political structures they have colonised – have shown they will fight even modest reforms tooth and nail. To get the idea, you only have to listen to the squeals of protest, including from some in his own party, at Ed Miliband’s plans to tax homes worth over £2m to fund the health service, or the demand from the one-time reformist Fabian Society that the Labour leader be more pro-business (for which read pro-corporate), or the wall of congressional resistance to Barack Obama’s mild redistributive taxation proposals.

Perhaps a section of the worried elite might be prepared to pay a bit more tax. What they won’t accept is any change in the balance of social power – which is why, in one country after another, they resist any attempt to strengthen trade unions, even though weaker unions have been a crucial factor in the rise of inequality in the industrialised world.

It’s only through a challenge to the entrenched interests that have dined off a dysfunctional economic order that the tide of inequality will be reversed. The anti-austerity Syriza party, favourite to win the Greek elections this weekend, is attempting to do just that – as the Latin American left has succeeded in doing over the past decade and a half. Even to get to that point demands stronger social and political movements to break down or bypass the blockage in a colonised political mainstream. Crocodile tears about inequality are a symptom of a fearful elite. But change will only come from unrelenting social pressure and political challenge.

– To the original: ➡

Posted in Conflict, Corporate takeover of Government, Corruption, CrashBlogging, Financial melt-down, Human Rights, Social Breakdown, Terrorism, The Perfect Storm, Wealth Disparity | No Comments »

As inequality soars, the nervous super rich are already planning their escapes

Monday, January 26th, 2015

Hedge fund managers are preparing getaways by buying airstrips and farms in remote areas, former hedge fund partner tells Davos during session on inequality

With growing inequality and the civil unrest from Ferguson and the Occupy protests fresh in people’s mind, the world’s super rich are already preparing for the consequences. At a packed session in Davos, former hedge fund director Robert Johnson revealed that worried hedge fund managers were already planning their escapes. “I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway,” he said.

Johnson, who heads the Institute of New Economic Thinking and was previously managing director at Soros, said societies can tolerate income inequality if the income floor is high enough. But with an existing system encouraging chief executives to take decisions solely on their profitability, even in the richest countries inequality is increasing.

Johnson added: “People need to know there are possibilities for their children – that they will have the same opportunity as anyone else. There is a wicked feedback loop. Politicians who get more money tend to use it to get more even money.”

Global warming and social media are among the trends the 600 super-smart World Economic Forum staffers told its members to watch out for long before they became ubiquitous. This year, income inequality is fast moving up the Davos agenda – a sure sign of it is poised to burst into the public consciousness.

Jim Wallis, founder of Sojourners and a Davos star attraction after giving the closing address in 2014, said he had spent a lot of time learning from the leaders behind recent social unrest in Ferguson. He believes that will prove “a catalytic event” which has already changed the conversation in the US, bringing a message from those who previously “didn’t matter”.

So what is the solution to having the new voices being sufficiently recognised to actually change the status quo into one where those with power realise they do matter?

Clarke said: “Solutions are there. What’s been lacking is political will. Politicians do not respond to those who don’t have a voice In the end this is all about redistributing income and power.”

She added: “Seventy five percent of people in developing countries live in places that are less equal than they were in 1990.”

The panellists were scathing about politicians, Wallis describing them as people who held up wet fingers “to see which way the money is blowing in from.”

Author, philosopher and former academic Rebecca Newberger-Goldstein saw the glass half full, drawing on history to prove society does eventually change for the better. She said Martin Luther King was correct in his view that the arch of history might be long, but it bends towards justice.

In ancient Greece, she noted, even the greatest moralists like Plato and Aristotle never criticised slavery. Newberger-Goldstein said: “We’ve come a long way as a species. The truth is now dawning that everybody matters because the concept of mattering is at the core of every human being.” Knowing you matter, she added, is often as simple as having others “acknowledge the pathos and reality of your stories. To listen.”

Mexican micro-lending entrepreneur Carlos Danel expanded on the theme. His business, Gentera, has thrived by working out that “those excluded are not the problem but realising there’s an opportunity to serve them.”

He added: “Technology provides advantages that can lower costs and enable us to provide products and services that matter to the people who don’t seem to matter to society. And that’s beyond financial services – into education and elsewhere.”

Which, Danel believes, is why business was created in the first place – to serve. A message that seemed to get lost somewhere in the worship of profit.

– To the original: ➡

– Research thanks to Kierin M.

Posted in Climate Change, Conflict, Corporate takeover of Government, Corruption, CrashBlogging, CyberChaos, Financial melt-down, Food Shortages, Human Rights, Social Breakdown, The Perfect Storm, Wealth Disparity, Weather deterioration | No Comments »

Exposed: NSA program for hacking any cell phone network, no matter where it is

Monday, December 8th, 2014

– Worth noting how high the percentage is for New Zealand in the chart which you can find in the original article.

– dennis

= = = = = = = = = = = = = = = = = = = =

The National Security Agency has spied on hundreds of companies and groups around the world, including in countries allied with the US government, as part of an effort designed to allow agents to hack into any cellular network, no matter where it’s located, according to a report published Thursday.

Armed with technical details of a specific provider’s current or planned networks, agents secretly attempt to identify or introduce flaws that will make it possible for communications to be covertly tapped, according to an article published by The Intercept. Security experts warned that programs that introduce security flaws or suppress fixes for existing vulnerabilities could cause widespread harm, since the bugs can also be exploited by criminal hackers or governments of nations around the world.

“Even if you love the NSA and you say you have nothing to hide, you should be against a policy that introduces security vulnerabilities,” Karsten Nohl, a cryptographer and smartphone security expert, told The Intercept. “Because once NSA introduces a weakness, a vulnerability, it’s not only the NSA that can exploit it.”

t’s not the first time the US agency has been reported to introduce backdoors into widely used technologies. Last year documents provided by former NSA subcontractor Edward Snowden—the same source for documents supporting Thursday’s story by The Intercept—showed that the NSA worked with standards bodies to adopt encryption technologies with known vulnerabilities in them. Two weeks later, the RSA division of EMC warned customers to stop using the default configuration of its BSAFE BSAFE toolkit and Data Protection Manager because it contained code reported to contain an NSA-engineered vulnerability.

The program reported Thursday, codenamed AURORAGOLD, has monitored messages sent and received by more than 1,200 email accounts associated with large cell phone operators around the world. One surveillance target is the GSM Association (GSMA), a UK-based group that works with Microsoft, Facebook, AT&T, Cisco Systems, and many other companies to ensure their hardware and software related to cellular technology is compatible. At the same time the NSA has been monitoring the group, other arms of the US government has funded GSMA programs designed to boost privacy on mobile networks. According to The Intercept:

The NSA focuses on intercepting obscure but important technical documents circulated among the GSMA’s members known as “IR.21s.”

Most cellphone network operators share IR.21 documents among each other as part of agreements that allow their customers to connect to foreign networks when they are “roaming” overseas on a vacation or a business trip. An IR.21, according to the NSA documents, contains information “necessary for targeting and exploitation.”

The details in the IR.21s serve as a “warning mechanism” that flag new technology used by network operators, the NSA’s documents state. This allows the agency to identify security vulnerabilities in the latest communication systems that can be exploited, and helps efforts to introduce new vulnerabilities “where they do not yet exist.”

The IR.21s also contain details about the encryption used by cellphone companies to protect the privacy of their customers’ communications as they are transmitted across networks. These details are highly sought after by the NSA, as they can aid its efforts to crack the encryption and eavesdrop on conversations.

Last year, The Washington Post reported that the NSA had already managed to break the most commonly used cellphone encryption algorithm in the world, known as A5/1. But the information collected under AURORAGOLD allows the agency to focus on circumventing newer and stronger versions of A5 cellphone encryption, such as A5/3.

The documents note that the agency intercepts information from cellphone operators about “the type of A5 cipher algorithm version” they use, and monitors the development of new algorithms in order to find ways to bypass the encryption.

NSA documents show that AURORAGOLD focuses on collecting details about virtually all technical standards used by cell phone operators.

– to the original article: ➡

Posted in Corruption, CrashBlogging, CyberChaos, Human Rights, Social Breakdown, The Perfect Storm | No Comments »

Crypto phones and dubious cell phone towers

Thursday, September 4th, 2014

Mysterious Phony Cell Towers Could Be Intercepting Your Calls

Every smart phone has a secondary OS, which can be hijacked by high-tech hackers

Like many of the ultra-secure phones that have come to market in the wake of Edward Snowden’s leaks, the CryptoPhone 500, which is marketed in the U.S. by ESD America and built on top of an unassuming Samsung Galaxy SIII body, features high-powered encryption. Les Goldsmith, the CEO of ESD America, says the phone also runs a customized or “hardened” version of Android that removes 468 vulnerabilities that his engineering team team found in the stock installation of the OS.

His mobile security team also found that the version of the Android OS that comes standard on the Samsung Galaxy SIII leaks data to parts unknown 80-90 times every hour. That doesn’t necessarily mean that the phone has been hacked, Goldmsith says, but the user can’t know whether the data is beaming out from a particular app, the OS, or an illicit piece of spyware. His clients want real security and control over their device, and have the money to pay for it.

To show what the CryptoPhone can do that less expensive competitors cannot, he points me to a map that he and his customers have created, indicating 17 different phony cell towers known as “interceptors,” detected by the CryptoPhone 500 around the United States during the month of July alone. Once the phone connects with the interceptor, a variety of “over-the-air” attacks become possible, from eavesdropping on calls and texts to pushing spyware to the device.

“Interceptor use in the U.S. is much higher than people had anticipated,” Goldsmith says. “One of our customers took a road trip from Florida to North Carolina and he found 8 different interceptors on that trip. We even found one at South Point Casino in Las Vegas.”

– More… ➡

– 16Sep14 – More on this story… ➡

Posted in CyberChaos, Human Rights, Technical, The Perfect Storm | No Comments »

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