Tag Archives: economics

Grasping around for a new enemy: Pentagon redefines hacking as act of warfare

So, with OBL offed and Al Qaida effectively beheaded (as if it hadn’t already been waning considerably in its ability to achieve anything of note), the defence budget of the US needs a new enemy to justify its continued expansion. But no one with sense would start an old-school land war these days (missions of liberation and the insurgencies they provoke are an entirely different category, of course), so what is there that merits a bit of saber-rattling?

“People we don’t like who also have nukes or are trying to get them” is a hardy perennial, but most of them have gathered enough friends (or mutual enemies-of-their-enemy) that it’s getting hard to make anyone care other than the lapdog allies over on Airstrip One. Something current, scary and poorly-understood would be ideal… something like the nebulous and poorly-defined notion of “cyberwarfare”, perhaps?

The Pentagon’s first formal cyber strategy, unclassified portions of which are expected to become public next month, represents an early attempt to grapple with a changing world in which a hacker could pose as significant a threat to U.S. nuclear reactors, subways or pipelines as a hostile country’s military.

In part, the Pentagon intends its plan as a warning to potential adversaries of the consequences of attacking the U.S. in this way. “If you shut down our power grid, maybe we will put a missile down one of your smokestacks,” said a military official.

Recent attacks on the Pentagon’s own systems—as well as the sabotaging of Iran’s nuclear program via the Stuxnet computer worm—have given new urgency to U.S. efforts to develop a more formalized approach to cyber attacks. A key moment occurred in 2008, when at least one U.S. military computer system was penetrated. This weekend Lockheed Martin, a major military contractor, acknowledged that it had been the victim of an infiltration, while playing down its impact.

The report will also spark a debate over a range of sensitive issues the Pentagon left unaddressed, including whether the U.S. can ever be certain about an attack’s origin, and how to define when computer sabotage is serious enough to constitute an act of war. These questions have already been a topic of dispute within the military.

I expect that open-endedness is a feature rather than a bug, because it offers a great opportunity to put the great economic enemy in the frame: if China’s consolidating the stranglehold on your economy which your own foreign and fiscal policies practically begged them to begin, it’s time to puff up your chest and get stern with them commies! Don’t take it from me, though – here’s Thomas P M Barnett with a plainly-titled post at TIME: “According to new Pentagon cyber strategy, state-of-war conditions now exist between the US and China“. Ouch.

In other words, if you, Country C, take down or just plain attack what we consider a crucial cyber network, we reserve the right to interpret that as an act of war justifying an immediately “equivalent” kinetic response (along with any cyber response, naturally). If this new strategy frightens you, then you just might be a rational actor.

Theoretically, this means if you, Country C, hack and disable the net of crucial US installation X, America can fire missiles at your equivalent civilian or military installation (C)X. Of course, by responding to your “act of war,” we are initiating our own war response, meaning we’d need presidential approval to start the fireworks. But the key point is, by hacking something that we consider to be national security-sensitive, you leave yourself open to a state-of-war response from the United States at the time of its choosing, so be forewarned.

Which facilities fall into this “eye for an eye (or ear or . . .)” category? Naturally, America shouldn’t say, so as to keep Country C in the dark (the essence of deterrence), but putting us in the dark (take-down of an electric grid) is an obvious one cited in the WSJ piece. Again, theoretically, almost anything can be described as crucial on some national security scale (e.g., hack Monsanto in just the right way and maybe you put US food security at risk), because the small damage that you, Country C, choose to create in our nets might easily cascade into something far larger, so virtually any hack emanating from your networks puts you at risk for a US war response.

(I wonder what the reaction would be to an equivalent policy elsewhere? Let’s say – strictly hypothetically, of course – that Big Nation-state A is revealed to have funded and built some sort of infrastructural sabotage virus with the strict intent of targetting the facilities of Nation-state B; will the US fully understand Nation-state B declaring war on A, or will that be considered a disproportionate act by a rogue state? Guess it’ll depend on which of the two the Pentagon is more interested in keeping on-side.)

Seriously, though: when a pro-intervention pro-globalisation type like Barnett thinks this is a bad play, it’s got to be a real dick move:

This is an destabilizing step sideways in our security relationship with China: Beijing is being warned that its current and ongoing behavior can – at any time – be loosely interpreted as an act of war. Whatever situations or crises ensue, that handy rationale is now always sitting in the Pentagon’s back pocket, because I guarantee you, whenever big-war enthusiasts want to play that card, the Defense Department will be able to muster – at a moment’s notice – a long list of Chinese hacking attacks over the previous X hours/days/weeks/months. So when the President asks, “Do we have evidence that the Chinese are targeting us at this time for cyber-sabotage?” The answer will always be yes.

[…]

Bottom line? Strangelove has re-entered the Building.

That last line implies Strangelove ever left the building; I suspect he’s been stored in boardroom cupboards against the appropriate moment.

Deliberate or otherwise, the daftest thing here is that the Pentagon can grok that “cyberwarfare” is a threat, but doesn’t seem to entirely grok the fact that cyberwarfare doesn’t need to be a function of nation-state level decision-making. Indeed, the real threat is from non-nation-state actors, wherever they may be based. NATO seems wise to this, though, with the General Rapporteur issuing dire warnings to Anonymous, Wikileaks and their ilk:

Describing the rise of the group from its beginnings on internet picture message board 4chan, via campaigns against the Church of Scientology and, more recently, in support of whistle-blowing website Wikileaks, the report continues: “Today, the ad hoc international group of hackers and activists is said to have thousands of operatives and has no set rules or membership.”

The report goes on to lay out a stark warning to the group’s nameless participants:

“It remains to be seen how much time Anonymous has for pursuing such paths. The longer these attacks persist the more likely countermeasures will be developed, implemented, the groups will be infiltrated and perpetrators persecuted.”

Well, good luck with that, folks. If you thought trying to tame countries full of warring factions whose only common ground was a desire to get shot of the meddling infidels was no picnic, declaring war on the fluid alliances and ad-hocracies of the intertubes is going to be a long and frustrating game of whack-a-mole which, I fully suspect, you have no chance of winning. After all, Anonymous doesn’t have anything you can aim a missile at, does it?

Staying with the big things that matter most: Climate

I’ve been talking a lot about media in this column lately. We’re seeing a lot of fast change in the amount of media available, the way we consume that media, and also in what that media says. One of the new media books I’ve been reading is Al Gore’s iPad app version of “Our Choice” about Climate Change. As I write this, it’s pouring rain and hail outside my window and ten degrees colder than normal. The city of Joplin has been almost leveled by a tornado, and at this very moment there is a tornado warning in effect in Northern California (which is not historically a place where many tornadoes touch down). So I decided to write about climate change. Continue reading Staying with the big things that matter most: Climate

How I Stopped Worrying And Learned To Love The Population Boom

Via MetaFilter, Foreign Policy points out that worrying about the environmental and economic effects of an increasing world population is a displacement activity that helps us Western developed-nation types avoid the real source of the shortages problems to come… namely ourselves.

Yes, threats to global sustainability are clear and present dangers. But the 10,760-fold increase in aluminum production reported by environmentalist Clive Ponting, or the 380-fold increase in oil production, or even the 24-fold increase in global GDP over the course of the last century isn’t driven by population growth. It is growing consumption per person that is the problem. And that, of course, is not the fault of Africans. The blame lies with wealthy countries that do nearly all of the consuming. The poorest 650 million people on the planet live on about 1 percent of the income of the richest 650 million. Each year, we add 1 percent or more to the incomes of those richest people – GDP per capita growth rates in wealthy countries are at least that high.  And that 1 percent growth has the same impact on global consumption as would doubling the number of people living on the income of that bottom 650 million of the world’s population. So, those people sitting in rich countries pontificating on unsustainable global populations might want to start off with the bit of that population they see in the mirror every morning.

And from the same MeFi post, the wonderfully-monikered Rick Bookstaber suggests that the consumption-per-person problem might be about to hit a paradigm shift:

The real paradigm shift, or more like a paradigm drift, because it is slowly enveloping us, is that we are moving toward preferences and lifestyle where we will simply consume less. A lot less. Like improvements in efficiency, changes in tastes and preferences are nothing new, but this time is different.

I have already discussed this in previous posts on life in the experience machine and the world of smaller scale. In The Accidental Egalitarian I make the point that with the increased focus on technology – where we spend more and more of our time on our cell phone, doing emails, watching DVDs and surfing the web – there is less of a difference between how the super rich and the reasonably well off spend their time hour by hour during their typical days. The point of that post is that in practical terms the income gap is not as large as it might seem; that several orders of magnitude differences in income don’t make all that much difference in what these people do with their time. The point here is a corollary: those activities do not require much in the way of material consumption, and therefore not much in terms of commodities.

In The Technology-Driven Consumption Trap I argue that in the not-so-distant future the main items we will demand, beyond food, clothing and shelter, are “game systems” that approach the level of Nozick’s experience machine, allowing us to have the experience of being anyone we want, wherever we want (even in a world we have designed), accompanied by whomever we want, all in Realicta Immersion 3-D® with full sensory feedback.

Our demand for housing and transportation, two of the biggest commodity hogs, will be lower. McMansions will be totally passe. It should already be dawning on people that most all of our non-sleeping hours at home are spent in the kitchen and its adjacent family room. Living rooms and dining rooms are relics. When people internalize the fact that they spend most of their non-sleeping, non-bathroom, non-eating time in a ten by twelve foot space with their various experience machine prototypes, large homes will, by and large, go the way of cars with fins and chrome.

A rather market-Panglossian view of things, perhaps (especially coming from a guy who works for the Financial Stability Oversight Council at Washington – optimism must be more vital than oxygen in that office, I’m thinking), but I wouldn’t want to entirely discount the forces and pressures Bookstaber is talking about there, either. Perhaps the shift to a predominantly digital economy will change the way we define wealth… though as we continue down the path of urbanisation, excess living space is surely always going to remain a display for conspicuous consumption? (Insert Soylent Green reference here.)

US and China to have manufacturing costs parity by 2015?

I’m going to offer this with a large pinch of salt, given that it’s a press release from a consulting firm, but the boldness of the claim is pretty impressive [via NextBigFuture]:

Within the next five years, the United States is expected to experience a manufacturing renaissance as the wage gap with China shrinks and certain U.S. states become some of the cheapest locations for manufacturing in the developed world, according to a new analysis by The Boston Consulting Group (BCG).

[…]

After adjustments are made to account for American workers’ relatively higher productivity, wage rates in Chinese cities such as Shanghai and Tianjin are expected to be about only 30 percent cheaper than rates in low-cost U.S. states. And since wage rates account for 20 to 30 percent of a product’s total cost, manufacturing in China will be only 10 to 15 percent cheaper than in the U.S.—even before inventory and shipping costs are considered. After those costs are factored in, the total cost advantage will drop to single digits or be erased entirely, Sirkin said.

Products that require less labor and are churned out in modest volumes, such as household appliances and construction equipment, are most likely to shift to U.S. production. Goods that are labor-intensive and produced in high volumes, such as textiles, apparel, and TVs, will likely continue to be made overseas.

Talk about a mixed bag of news. The prospect of working-class jobs returning to American shores must be something of a relief, but implicit in that return is the socioeconomic status of those “certain U.S. states” (and I think we can all guess which ones) as equivalent with China, the great economic enemy and exemplar of all things unAmerican. And it puts the lie to the notion of the unity of the US, too; sure, the top 1% of the country is rolling in money, but the bottom layer of the population pyramid is competing with China for the chance to make tchotchkes. Kinda puts the whole “USA! USA!” chanting from last week into perspective, doesn’t it? If this is a victory condition, I’d hate to be losing the game. (Note use of sarcasm as a way to blunt the pain; things over here on Airstrip One are looking grimmer by the day, too.)

Also implicit in the consultant’s outlook there is that the methodology of manufacture will remain essentially the same. Four years doesn’t look like a long time, but things move fast these days, and the 3D printing and fabbing industry is edging closer and closer to the point where it becomes a big grenade in the labour punchbowl. Still, I guess someone’s gonna have to make the 3d printers… up until the point where they can reliably self-replicate, anyway. (Shorter version: economics of mass production looking pretty screwed in the long term with respect to job creation. Profitability looking much better, but the 0.01% of the population who’ll benefit from it don’t need me to tell them that, I expect.)

Three Pillars of Writing Success for Any Publishing Environment

Lately I’ve been looking, for the sake of my sanity, for some principles of writerly success that I can really depend on. These are a tad elusive when the publishing world is being shaken up by the complete redefinition of self-publishing and the whole eBook thing. I don’t know about you, but I look at all this and say “Hey, how am I going to make a living as a writer in this mess–or even just find a readership–when we don’t even know what the publishing world will consist of in five years?”

Uncertainty is a terrible motivator. Continue reading Three Pillars of Writing Success for Any Publishing Environment