Daily News

THE CONTINUING BLOWBACK: CHINA AND GERMANY IMPOSE ...

What goes up must inevitably come down(unless, of course, it's Malaysia Air Flight 370), and over the past week I've been continuing to blog about the increasingly bizarre space news that seems to have begun in April and continued throughout May and on into this month. And as usual, I've indulged in my trademark high octane speculation and, as evident yesterday, abandoned petrochemical speculation(with apologies to commodities traders) for some really bizarre dot-connecting concerning deflector shields, plasmas, ion drives, and ionospheric heaters, bypassing the subject of Nazi Bells and mad scientists completely.

But today we have to come back down to Earth and the muddle that modern geopolitics has become. Regular readers of this website know that I've also been watching the emergence of what I've been calling Cold War Act Two, for want of a better term, as the blowback and fallout of American unipolarism, most recently evident in the Ukraine and the revelations of vast NSA spying has gathered both in pace and intensity. For example, like former Assistant Secretary of Housing and Urban Development Catherine Austin Fitts, I tend to view the electronic surveillance capabilities of the USA not so much in terms of a national security measure and capability, which it certainly is, but also as "the ultimate insider trading mechanism," the ultimate ability to snoop on, model, and predict electronic financial clearing and hence to predict coming financial activity. Such a capability is a huge financial advantage, and as a result, I have also argued that systems of clearing such as SWIFT and CHIPS are vulnerable. In this respect, I have argued that the BRICS nations, or as I like to call them, the BRICSA nations, will inevitably, as a matter of their own financial and national security, to deploy their own systems of domestic and international clearing. The initial components of these steps, I have already argued, have been taken by Russia in the wake of the ongoing Ukrainian fiasco.

But there is another aspect of this story that goes back, somewhat, in the annals of alternative community "conspiracy theory," to the late 1980s and early 1990s, and that is the story of the so-called "clipper chip" that was rumored to be covertly installed on American made computers, from desktops to mainframes, in the wake of the notorious INSLAW scandal and the alleged theft of PROMIS database management software from the INSLAW company by the Reagan era Department of Justice. This device, it was alleged, was a secret hardware "backdoor" into every American made computer, vastly expanding the surveillance capabilties of the American national security apparatus. In my opinion, the current NSA surveillance scandal is intimately, deeply, and directly related to the INSLAW-PROMIS scandal of that era. I strongly suspect, for example, that whatever architecture made the PROMIS software so flexible and such a valuable prize to the Reagan administration is the same conceptual architecture - with appropriate updates - at work today. (For the story of the Clipper chip, see A basic history of the legislation surrounding the Clipper Chip. For the INSLAW-PROMIS story, the best source remains, in my opinion, Mr. Bill Hamilton, CEO of INSLAW, himself. But there is a decent review here from Wired magazine: The INSLAW Octopus. I have written about the matter here: A LITTLE UPDATE ON THE INSLAW MATTER, here: DAVE MARTIN AND THE MYSTERIOUS DEATH OF GUS WEISS and here[for starters]: SOME MORE THINGS TO MAKE YOU GO HMMM: INSLAW AND THE FAREWELL DOSSIER)

As I documented in the last of my own blogs linked above(SOME MORE THINGS TO MAKE YOU GO HMMM: INSLAW AND THE FAREWELL DOSSIER), there is a plausible case that some of the "accidents" befalling the Soviet Union were not accidents at all, but the result of corrupted software "smuggled" into that country from the USA. This historical perspective, in other words, is bound to have other nations reassessing their exposure to American electronic surveillance, and China, for one, appears to have sounded up the clarion call, effectively ordering its financial institutions and international businesses to cease buying and operating with American hardware and software, in this case, IBM and Microsoft products:

First Cisco And Microsoft, Now IBM: China Orders Banks To Remove High-End IBM Servers

Now as the Zero Hedge article makes clear, in a wry and apt bit of humor, none of this will be reflected in the actual "market" performance of IBM or MSFT:

"That's ok though: since news and fundamentals don't matter, we fully expect IBM stock to also be up several percent on what now appears to be the terminal loss of one of the company's largest export markets. And not only IBM: other stocks set to surge on this bad news are MSFT and, of course, Cisco, whose CEO was recently crying about Obama's NSA policies, and whose sales in China are once again assured to crater. But as they say in the movies: tis but a scratch - who needs top line growth when a company can issue debt to buy back its share and pretend all is well?" (My thanks to Mr. J.K. for bringing this article to my attention.)

We'll get back to that market performance stuff, and its evident disconnect from news that, under normal circumstances, should affect it, in a moment. Presently, however, consider the following news from Germany, one of China's biggest trading partners:

Germany Will Ban Tech Companies That Play Ball With NSA

One can speculate here that perhaps there were discrete talks between Chancellorin Merkel's government and Beijing over this step, with both countries expressing concerns over their international trade and NSA snooping upon it. Given that Frankfurt has also recently become a bond market for Chinese bonds denominated in reminbi, the concern of the two countries is understandable. Here one may make some predictions: if the trend continues, then the European basis of the concern will spread from Germany to other countries, and the target of the concern will also reach out to embrace the British Commonwealth nations, including Australia, Canada, and the UK itself, which have electronic surveillance swap agreements with the USA, And eventually, we can expect to see Germany taking similar steps with regard to its computer hardware, by promoting regulations favorable to non-American computer building companies.

What I suspect all this heralds as a long term game which has only just begun, is that the BRICSA nations will make the type of action signaled by China a part of their agenda in coming years, and that agenda will include an inevitable insistence, in my opinion, that sensitive trade between that bloc and any non-member nation such as Germany, be conducted by "secure servers". And that will mean, no clearing through SWIFT, CHIPS, and no clearing on American-made computers. Of course, Germany, Russia, India, China and so on, are just as  capable of their own electronic mischief, but so long as the heavy hand of Washington's drone-imposed will continues to be exercised in the fashion it has, the blowback will continue.

See you on the flip side.

 

15 thoughts on “ THE CONTINUING BLOWBACK: CHINA AND GERMANY IMPOSE ...”

  1. I seem to be virtually alone in accepting that once mankind bit into the “fruit of knowledge” there was no point in NOT eating the whole lovely thing. We are not returning to the bliss of Eden.

    In other words, if indeed our government’s primary mission is to perpetuate our survival, then it would be quite justified in learning whatever it could — about ANYTHING it could — particularly if it used non-violent, albeit sneaky-as-hell, methodologies to do so.

    Could there really be some arbitrary threshold beyond which it must turn a blind eye to potential dangers and simply trust that this would never be exploited by others? Should it at some point allow the private sector or foreign nations to leave it far behind in the development of cutting-edge technologies? (Surely some of your Chinese or German-made smart devices are “listening” to us as well?)

    “But they will use this secret information to impose Orwellian controls upon our lives!” Well, what are they waiting for? I see Nancy Pelosi trying to do this — and she ain’t elite. (Believe it or not, she’s elected.) So if that were in fact “their” final goal, and they have the technology to reach it, why would we continue with this charade a day longer?

    It does not follow that, because they’d like to know everything there is to know, they aim ultimately to control everything there is to control. First and foremost they’d like to control their own fates, no doubt. But at least for now, it would seem, and at least as long as we do not threaten their respective fates, they want most of us to survive along with them.

    Sure, they would sacrifice, and surely have sacrificed, large numbers in order to protect much larger numbers — all while jockeying for supremacy among one another. But there exists far more circumstantial evidence that no unity exists among the PTB, and that they are in some way constrained from dominating us — whether checked by one another or by UPTBs (Unidentified Powers That Be), than that they are in a happy collusion with one another and merely taking their sweet time setting up the final dominoes.

    And if instead the “government” were simply to ask all of us for donations toward our collective survival, rather than using the financial system to force the same from us — if they informed us of threats and potential threats, terrestrial and otherwise, before they fully understood them themselves — would this not bring all other normal societal activities to an abrupt halt? Might this in fact bring about a much faster restructuring of society into an even more fascist Orwellian direction than exists today — once these real, not sci-fi, threats were known?

    Food for thought.

    1. Why would we believe claims of threats to our survival? Particularly ones we can’t check with independent resources?

      I can confirm that many fewer Monarch butterflies are making it to Mexico, and I can confirm that things like lead pollution have decreased in US cities, but I can’t confirm if there’s a base on Mars lining up an attack force. (Note how the 2003 invasion of Iraq was sold with government and private lies.)

      Parties other that governments misrepresent things all the time to gain some advantage: Google and Amazon sprint to immediate mind. Or investment banks.

      1. If the government/PTB wished to convince us that there were in fact aliens and potential threats, many people would likely be convinced when reverse-engineered, government UFOs began to hover over our cities as proof of this new, formerly-sci-fi reality — crafts as real as any Monarch butterfly.(No need to believe Gen. Colin Powell or Mark Zuckerberg.) [And no doubt they could distribute some pretty terrific “home movies” as well, many of them on film dating back before CGI.]

        My point was that full disclosure would likely lead many people to abandon their daily pursuits in favor of accelerating our progress into space — and improving our defenses against any space threats. And post-disclosure, each PTB, unable to milk the global financial system any longer, would have to sprint forward down the home stretch with whatever resources were already available to it.

        For the people, this would mean pressure coming not only now from their governments, but equally or more so from the hundreds of millions of regular citizens, some scared and some aggressively impatient, to accelerate the race into space by abandoning all pretensions toward a materialistic, nine-to-five, picket-fence lifestyle in favor of a single-minded progress off planet. Enter the Orwellian transformation.

        1. But it wouldn’t be full disclosure, what you’re describing.

          In fact, it’s very much a limited fear based reaction.

          Whereas unless some alien force really does want to kill off mankind, most people exposed to such an event would say:

          “Why can’t we have craft that hover without obvious pollution, and why can’t we travel to other planets with such craft, and would this technology allow for clearing up various messes on earth?”

          We’ve already seen real events faked to be caused by other means used to pass things like the Patriot Act in the US and to legitimize the vast collection of things like emails.

          1. You seem to take it for granted that there could be no real threat from above. I would assume then that you also dismiss the literature on ancient archaeology — and its citing of repeated indications of the existence of past extra-planetary conflicts, i.e. apocalyptic aggression between well-armed good guys and bad guys, both alien?

            I understand what you mean though. When I say full disclosure, I mean disclosure using irrefutable evidence by at least ONE of our governments/PTBs — disclosure that might also include detailed information about historic alien wars and today’s dangerous survivors thereof. You seem to believe that a disclosure would necessarily involve all PTBs at once, because all have been united in secrecy. But sharing in secrecy does not mean sharing in intentions.

            And if I am right, and they are by no means united, then the disclosure of one PTB would not only NOT spare them from the aggression of the other PTBs — nor spare us, the former’s newly-informed citizenry — it would likely intensify existing hostilities as a scramble for legitimacy and existing resources ensued. And we, the people, now a PART of our disclosed PTB, would be far more threatened and so far less safe than we are now under their secrecy.

            The “hovering” version of disclosure stated above then would not be an attempt by them to fool us, as you imagine, with a display of UFOs, in order to further take away our rights. But quick proof, and also an inevitable instigation of sorts, of anti-gravity, off-world capabilities — and thus the beginning of a whole new, and potentially very short, phase of human societal history. (And let us not forget all the New Age reports that aliens are only holding back until such disclosure occurs. Let us hope then that the “hundredth monkey” either doesn’t see, hear or speak.)

            Could it be instead that disclosure would bring free energy and off-world personal vehicles to everyone on Earth? Perhaps. But this would still be quite a societal transformation. And this transformation would have to begin now at the top.

  2. There have been so many IBM share buybacks going on for a long time, with a big one back in 1995 (any connection with the “PROMIS” controversy?). Anyway, as long as QE lasts – and the oligarchs stick together – there will be even bigger market manipulation opportunities. Or until somebody out-manoeuvres the “backdoor” players – which may come about sooner that the other two conditions.

    1. But what evidence do you have that IBM is issuing extra debt to buy back stocks?

      Or what evidence do you have for the Federal Reserve (or the European Central Bank or the Bank of England) running a hidden credits market and how would that be tied to IBM’s stock purchases?

  3. marcos toledo

    And as we sit here arguing about blowback from CIA-NSA clown show. Our masters the NAZI International plot the throwing under the train their Anglo-American zombies laughing all the way the bank suckers.

  4. And then what happens when there is blowback against the blowback? You know it’s coming.

  5. This bit of “back door technology” renders BitCoin and all crypto currencies dead in the water as well as any other hopes (*) of privacy. Like the Maginot line, encryption only works on one side of the computer. And on a Windows PC / device your done. You might have more of a chance on a Linux or Apple device. But, depending on what level the chip resides, there is no defense against it. You might not be able to detect it w/o serious ATE (Automated Test Equipment). Therefore, put nuthin on a computer you don’t want the world to see.. A SBC (Single Board Computer) may be the way to go.. They are easier to QA the hardware and software..

    (*) Hope is not a strategy..

    1. RIBCASA? It’s starting to sound less like a global power alliance and more like a chain of TexMex restaurants.

    2. Hi Robert;
      Argentina has been invited to the next BRICSA meeting in Brazil next month, the letters are getting longer all the time, and they may have to get another name for this organization, I like FTWALTE, as in F**K THE WEST AND ALL THE ELITES.

  6. What is Zero Hedge’s evidence for ” who needs top line growth when a company can issue debt to buy back its share and pretend all is well?” regarding IBM?

Comments are closed.