Category Archives: DOJ, DC and inside the Beltway

Obama’s Final Cyber Offense, Einstein?

Posted on by

Sheesh, just the name points to a misguided failure since 2008. Einstein has a price tag, $ 5 billion. There are other questions to be asked like what does the NSA have to offer or the countless cyber security professionals in the private sector?

From the White House, there has been a 12 point plan and it has not advanced at all.

In May 2009, the President accepted the recommendations of the resulting Cyberspace Policy Review, including the selection of an Executive Branch Cybersecurity Coordinator who will have regular access to the President.

Meanwhile, hacks are real, dangerous and coming at mach speed. Using old software language such as COBOL speaks volumes as to how antiquated protections are and how dysfunctional all agencies are in maintaining crack-proof.

The Department of Homeland Security appears to be the lead agency for Einstein compliance, what could go wrong and has? The fact sheet from DHS is here.

Obama makes final push to cement cyber legacy

TheHill: President Obama on Tuesday made what is likely his last major push to bolster the government’s digital defenses before leaving office.

As part of the annual White House budget proposal, the Obama administration rolled out a sweeping plan to inject billions of extra dollars into federal cybersecurity funding, establish a new senior federal cyber official and create a presidential commission on cyber that will establish a long-term road map.

The move is likely to complete Obama’s cyber legacy, which will include an historic attention to digital security, unprecedented executive orders on the topic, and shepherding through Congress the largest-ever cyber bill, as well as numerous bruising hacks at federal agencies and allegations that government networks were woefully outdated.

In a release, the White House called the plan “the capstone of more than seven years of determined effort.”

“[Obama] is the first president that is making a big cybersecurity push and I think that’s tremendously important,” Rep. Ted Lieu (D-Calif.), one of Congress’s most prominent cyber voices, told The Hill.

The proposal aims to inject more than $5 billion in new funding across the government to strengthen network defenses that have been repeatedly infiltrated by suspected foreign government spies.

The ask is a 35-percent increase over last year’s allotment of $14 billion, and would put overall federal cyber spending at over $19 billion.

The budget request earmarks $3.1 billion for an “Information Technology Modernization Fund” that the White House described as a “down payment on the comprehensive overhaul” of federal IT systems.

Lieu said this fund could help solve one of the inherent budgeting problems when it comes to defending interconnected networks from hackers.

“What’s important about [the fund] is it can go across agencies and upgrade systems that touch more than one agency,” said Lieu, who sits on both the House Budget and Oversight committees.

Currently, each agency has its own individual cybersecurity budget that can be spent on its network, but that cannot necessarily be expended on portions of the agency’s IT infrastructure at other agencies.

Hackers have exploited this balkanized budgeting process.

Over the summer, suspected Chinese cyber spies cracked into the Office of Personnel Management (OPM), pilfering over 22 million people’s personal information in two separate hacks. The initial intrusion — which exposed roughly 4.2 federal workers’ personnel files — occurred at an OPM database that was housed at the Interior Department.

The OPM hacks also exposed the antiquated legacy systems the government relied on to run its networks.

Congress bashed OPM officials for not fully encrypting all their sensitive data. But the agency’s systems were simply too old to even accept modern encryption, they repeatedly explained.

The network also relied on the dated COBOL programming language, which initially became popular in the 1960s and is now eschewed by younger programmers.

A new federal official will oversee much of these update efforts.

As part of its proposal, the White House is establishing a federal chief information security officer, or CISO. The official will be housed within the Office of Management and Budget (OMB) and report to federal chief information officer, Tony Scott, who oversees government technology.

“This is the first time that there will be a dedicated senior official who is solely focused on developing, managing, and coordinating cybersecurity strategy, policy and operations across the entire federal domain,” the White House said.

Centralizing cybersecurity oversight is an attempt to help overcome the lack of agency-to-agency communication on the subject.

“For a while, I’ve seen the argument that there are too many lines of authority in the federal government on cybersecurity,” said Lieu. “Sometimes it’s not clear who is responsible for what.”

The CISO will also help monitor the government’s digital defense spending, which has been knocked as cost-ineffective.

Recently, a federal watchdog report concluded that the government’s main cyber defense system, known as “Einstein,” was largely ineffectual at thwarting sophisticated hackers. The report echoed long-standing criticism from security experts who say the program is a much-delayed boondoggle that is already obsolete.

Federal officials insist the system is in its final phase of implementation and will soon serve as a platform to add on leading cyber tools.

This budget infusion and new federal CISO will with these technology updates, the White House said.

The proposal also includes a robust research and public awareness component.

In a bid to build a bridge to the next administration, Obama is launching a “Commission on Enhancing National Cybersecurity.”

The administration is directing a bipartisan group of lawmakers to appoint top industry representatives and leading technologists to the commission. The group will be tasked with taking the long view.

“The commission will make recommendations on actions that can be taken over the next decade to strengthen cybersecurity in both the public and private sectors while protecting privacy,” the White House said.

Security experts almost unanimously agree that one of these actions will be eliminating the traditional online password.

Since 2011, the White House has been trying to push people away from passwords. Tuesday’s plan includes a last bid to encourage stronger people to adopt stronger login practices.

The proposal creates a new public awareness campaign that includes leading tech firms such as Google, Facebook and Microsoft.

“By judiciously combining a strong password with additional factors, such as a fingerprint or a single-use code delivered in a text message, Americans can make their accounts even more secure,” the White House said.

The proposal is likely Obama’s concluding statement on cybersecurity.

During his presidency, cybersecurity has gone from a fringe issue to one that most leaders acknowledge is vital to national and economic security. The topic received an increasing amount of attention in all but Obama’s final State of the Union address.

In recent years, the U.S. has seen the dramatic rise of global cyber crime syndicates that have pillaged banks, department stores and hotels.

According to an October report from Hewlett Packard and the Ponemon Institute, cyber crime costs the average American firm $15.4 million annually, up 82 percent over the last six years. By 2019, it’s believed the cost of data breaches will reach $2.1 trillion globally.

Digital adversaries such as China, Russia, Iran and North Korea have also swooped in unexpectedly, plundering health insurers, airlines, nuclear plants, government agencies and, most memorably, a major movie studio.

Even terrorist groups such as the Islamic State in Iraq and Syria (ISIS) are causing fears by hijacking high-profile twitter accounts and digitally defacing websites around the world.

These trends are bound to continue after Obama leaves the White House, but this ultimate cyber thrust could help cement his reputation as the first president to actively address the digital security challenge.

“If we can get this through, the funding, I think that would be very positive for his legacy,” Lieu said. “This is not just a federal government problem, it’s endemic in the private sector.”

Official FBI letter on Hillary’s Server Investigation

Posted on by

Politico: Hillary and Bill Clinton are so dissatisfied with their campaign’s messaging and digital operations they are considering staffing and strategy changes after what’s expected to be a loss in Tuesday’s primary in New Hampshire, according to a half-dozen people with direct knowledge of the situation.

The Clintons — stung by her narrow victory in Iowa — had been planning to reassess staffing at the campaign’s Brooklyn headquarters after the first four primaries, but the Clintons have become increasingly caustic in their criticism of aides and demanded the reassessment sooner, a source told Politico. More here.

*** Perhaps the real reason for the shake-up is noted below and Michael Bloomberg is looming yet again. ”

Former New York City Mayor Michael Bloomberg said he is considering running for U.S. president in 2016, the Financial Times reported on Monday.

The billionaire media mogul said he was “looking at all the options” when asked whether he was considering a run, the newspaper said.”

 

TheHill: The FBI formally confirmed that its investigation connected to Hillary Clinton’s private email server remains ongoing in a letter released on Monday.

The letter from FBI general counsel James Baker comes one day before the New Hamshire primary.

The message does not offer new details about the probe, which the bureau has been reluctant to discuss. However, it represents the FBI’s formal notification to the State Department that it is investigating the issue.
Since last September, “in public statements and testimony, the Bureau has acknowledged generally that it is working on matters related to former Secretary Clinton’s use of a private e-mail server,” Baker wrote to the State Department.

“The FBI has not, however, publicly acknowledged the specific focus, scope, or potential targets of any such proceedings.

“Thus … we remain unable [to] provide [details about the case] without adversely affecting on-going law enforcement efforts,” he concluded.

The letter was sent on Feb. 2 but released on Monday as part of an ongoing lawsuit related to the disclosure of Clinton’s emails from conservative watchdog Judicial Watch.

FBI Director James Comey has previously referenced the FBI probe, which the bureau had previously declined to confirm or deny in court filings last year.

Key details about the probe remain unclear, such as whether it is tied to a possible criminal case or whether it has expanded beyond an initial security review.

Comey has previously said that bureau investigators “don’t give a rip about politics,” and would not be put off by the looming presidential campaign. Clinton, for her part, has downplayed the server issue.

“I am 100 percent confident [that the probe will not become criminal],” the former secretary of State said in a Democratic presidential debate last week. “This is a security review requested and carried out that will be resolved.”

The State Department has classified more than 1,500 emails from Clinton’s “homebrew” server before releasing them to the public, including 22 at the highest level of “top secret.” None of the messages were marked as classified at the time they were sent, the department has claimed.

 

show_temp by Julian Hattem

Was bin Ladin in the IRS Files for Obamacare?

Posted on by

I remember very well saying a few years ago that any foreigner, including Usama bin Ladin could get Obamacare benefits. Never understood how true my conclusions were. Further, there was a movement in the House to impeach the IRS Commissioner. Then we learned that more hard drives have been destroyed, others were found in storage and billions in refunds went to a handful of same mail address locations in obscure places outside the United States.

Not only is Obamacare a failure itself, but it really does not become full law until 2017 and it is a law we can no longer begin to afford when the IRS cant recover bogus subsidies to illegals.

Fasten your seat belt.

Senate report: Illegal immigrants benefited from up to $750M in ObamaCare subsidies

FNC: Illegal immigrants and individuals with unclear legal status wrongly benefited from up to $750 million in ObamaCare subsidies and the government is struggling to recoup the money, according to a new Senate report obtained by Fox News.

The report, produced by Republicans on the Senate Homeland Security and Governmental Affairs Committee, examined Affordable Care Act tax credits meant to defray the cost of insurance premiums. It found that as of June 2015, “the Administration awarded approximately $750 million in tax credits on behalf of individuals who were later determined to be ineligible because they failed to verify their citizenship, status as a national, or legal presence.”

The review found the credits went to more than 500,000 people – who are either illegal immigrants or whose legal status was unclear due to insufficient records.

The Centers for Medicare and Medicaid Services confirmed to FoxNews.com on Monday that 471,000 customers with 2015 coverage failed to produce proper documentation on their citizenship or immigration status on time – but stressed that this does not necessarily mean they’re ineligible.

“Lack of verification does not mean an individual is ineligible for financial assistance, but only that a Marketplace did not receive sufficient information to verify eligibility in the time period outlined in the law,” CMS spokesman Aaron Albright said.

The Senate report also accused the administration of lacking a solid plan to get that money back – and predicted that in the end, the IRS will be “unable to fully recoup the funds.”

“The information provided to the Committee by the IRS and HHS reveals a troubling lack of coordination between the two agencies … and demonstrates that the IRS and HHS neglected to consider how they would recover these wasteful payments,” the report says.

Under the law, the feds can dole out these payments on a temporary basis if a recipient’s legal status is unclear, but are supposed to cut off funding and coverage if the recipient does not later come up with the paperwork. Up to a half-million “ineligible” people, according to the report, applied in this way — with their credits paid in advance to the insurers. The IRS, though, is supposed to get overpayments back from the individuals themselves.

The Senate report, based on a review launched by committee Chairman Sen. Ron Johnson, R-Wis., derisively describes this approach as “pay and chase.”

In other words, the Centers for Medicare and Medicaid Services pays credits and subsidies to the insurance companies on behalf of the applicants – and the feds then “chase” after any overpayments to ineligible people once they are discovered.

“This ‘pay and chase’ model has potentially cost taxpayers approximately $750 million,” the report says. The 500,000 individuals in question have been removed from coverage, according to the findings, as the government seeks to get the money back.

The Senate report says the IRS and HHS initially failed to coordinate on a plan for recouping funds, and claimed that a subsequent plan from the IRS to recoup the money is still “ineffective and insufficient.”

In a July letter to Johnson, IRS Commissioner John Koskinen assured that the agency is “committed to identifying and efficiently addressing” improper payments. He reiterated that anyone “not lawfully present” who enrolls for ObamaCare coverage “must repay” the advance premium credit payments, and would be breaking the law if they don’t.

Obama Going for it All Including Moon Shot

Posted on by

There are organizations out there trying to get some great bills passed. Too bad they wont affect Obama himself. But when it comes to Congress wanting a pay raise, how about a Fiscal Responsibility Act first?

Obama’s go-for-broke budget

Congress has already dismissed the proposal, sight unseen.

Politico: President Barack Obama may be a lame duck, but his aggressively liberal final budget request coming Tuesday will show he’s far from a mute one.

Even as Hillary Clinton and Bernie Sanders quarrel over who’s a “progressive” and who’s not, the president will propose a sweepingly progressive policy agenda that includes a $10-a-barrel oil tax, an expensive Medicaid expansion, a $4 billion initiative to promote computer science in public schools and the first down payment on a “moon shot” research initiative to cure cancer led by Vice President Joe Biden.

Never mind that Congress, in a break with tradition, said it won’t even hold hearings on this year’s budget request. That’s because the request “will continue to focus on new spending proposals” instead of tackling “our $19 trillion in debt,” Senate Budget Committee Chairman Mike Enzi (R-Wyo.) said last week. Complete details on proposed total spending, projected deficits and other information will be released Tuesday morning.

Given Congress’ sight-unseen dismissal, the president’s go-for-broke strategy makes sense, said Peter Orszag, who was White House budget director during Obama’s first term and director of the Congressional Budget Office before that.

“If the document is legislatively irrelevant,” Orszag said, “you might as well use it to expand the policy dialogue and lay out sensible proposals even if they will not become law this year or next.” This year’s budget proposal “lays the groundwork for Democrats to refine and embrace a more ambitious legislative agenda over time.”

Lame-duck presidential budget requests nearly always receive catcalls from Congress, especially when it’s controlled by the opposite party.

In February 2008, then-Speaker Nancy Pelosi scored President George W. Bush’s “misguided” final budget for cuts in health care and energy assistance and a too-large budget deficit. The final product was a mashup from Congress, the outgoing Bush administration and the incoming Obama administration. It yielded a $1.4 trillion deficit — the largest in U.S. history, in large part because of the financial crisis. The current deficit is an estimated $544 billion.

President Bill Clinton’s final budget, submitted in February 2000, was less contentious, in part because it adhered to a 1997 agreement with the Republican-controlled Congress on debt reduction. Clinton had the opposite problem: His budget’s spending levels were judged too high, and its budget surplus — which ended up being $1.3 billion — drew sharp criticism from Republicans, including candidate Bush, who wanted to return it to the public in the form of tax cuts. The novel problem of a budget surplus proved short-lived; it vanished the following year, and hasn’t been heard from since.

Where Obama’s lame-duck policy agenda differs, suggests presidential historian Michael Beschloss, is in the scope of its ambition. “Modern presidents have tended to focus on a particular project” in their last year, Beschloss said — “for instance, Eisenhower and Reagan trying to wind down the Cold War, or Johnson trying to find peace in Vietnam.” But Obama is different. He’s “looking for ways in his final year to pursue an agenda on many fronts” in hopes not only of “getting something done” but also “nudging his successor to do certain things.”

It is the policy, perhaps, of a departing president who — given this year’s unusually chaotic GOP primary race — feels more confident than most that his party will keep the White House.

The boldest of all the budget proposals is the $10-a-barrel crude oil tax. Energy taxes are always a hard sell — nobody’s raised the federal gasoline tax, for instance, since 1993 — and although consumers may be less resistant because of low pump prices, oil companies will be more so because falling gas prices have them reducing exploration and laying off workers.

The revenues would go not toward deficit reduction, but toward more green forms of transportation such as subways, buses and light rail. House Ways and Means Chairman Kevin Brady immediately denounced the plan as a “horrible idea” and a “waste of time,” and even some congressional Democrats will likely oppose it. But environmentalists are greeting it as an overdue down payment on reducing emissions that contribute to climate change. Sierra Club Executive Director Michael Brune said it “underscores the inevitable transition away from oil.”

The president’s proposed Medicaid expansion would extend the Affordable Care Act’s promise of three years’ full federal funding for ACA-created Medicaid coverage, which expires this year. The proposal is an inducement to the 19 states that continue not to participate in the program, which was created for families whose incomes were too low to qualify for federal subsidies to purchase private insurance plans through Obamacare exchanges.

Under the budget proposal, states would still get only three years’ full federal funding, after which they would gradually have to pick up 10 percent of program costs. The carrot is that they would no longer have to act by the end of 2016. A stick originally envisioned by the ACA’s authors — that states could not refuse the ACA Medicaid expansion without withdrawing from Medicaid entirely — was itself swatted away in the Supreme Court’s 2012 ruling that otherwise upheld Obamacare. The new extension is a rebuke of sorts to House Republicans who have voted repeatedly to repeal Obamacare and who last month sent to the White House a repeal bill that for the first time passed both the House and Senate — which the president promptly vetoed.

The budget’s new K-12 computer science program isn’t intrinsically partisan — both Democrats and Republicans favor enhancing school kids’ computer skills, not to mention big tech companies like Microsoft. But its $4 billion price tag raises GOP hackles, as does the notion of attaching more strings to federal aid to schools. “Rather than calling for additional federal programs or new funding streams,” an aide to Health Education Labor and Pensions Committee Chairman Lamar Alexander (R-Tenn.) complained, “the president can help students by using his bully pulpit to highlight states working in innovative ways to help their children succeed.”

The “cancer moon shot” is similarly uncontroversial in theory; after all, it was President Richard Nixon, a Republican, who proposed waging a federal “war on cancer” back in 1971. But the down payment of nearly $1 billion that the White House seeks is high, and congressional Republicans won’t like that the plan would largely bypass the appropriations process and give Vice President Joe Biden a relatively free hand in allocating some of the funds. In addition, the plan would compel medical researchers to quicken the pace at which they share data, an idea that is already receiving considerable pushback in academia. Jeffrey Dazen, editor of the esteemed New England Journal of Medicine, publicly decried the use of medical research by “data parasites.”

The likelihood of legislative action on any of these agenda items is virtually nil.

Still, observes Rutgers historian David Greenberg, author of a new book about presidential spin: “No one wants to admit that the last year will be an uneventful one.”

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbtYLPAO

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbtQUHcX

 

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbtHTeC9

 

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbt9O7NB

 

Read more: http://www.politico.com/story/2016/02/obamas-radical-final-budget-218944#ixzz3zbt2eChp

Watch Out America, Venezuela a Failed State

Posted on by

Venezuela Is About to Go Bust

Nagel/ForeignPolicy: Venezuela’s economy is facing a tsunami of bad news. The country is suffering from the world’s deepest recession, highest inflation rate, and highest credit risk — all problems aggravated by plunging oil prices. Despite all its troubles, though, until now Venezuela has kept making payments on its $100-billion-plus foreign debt.

That is about to end. In recent days a consensus has emerged among market analysts:

Venezuela will have to default. The only question is when.

Venezuela will have to default. The only question is when.

A Venezuela meltdown could rock financial markets, and people around the world will lose a lot of money. But we should all save our collective sympathy — both the government in Caracas and the investors who enabled it had it coming.

In the last few years, the Venezuelan government has been steadfast about staying in good graces with its lenders. It has paid arrears on its debt religiously, and has constantly asserted that it will continue paying.

But it has neglected to implement the reforms Venezuela would need to improve the fundamentals of its economy. Its commitment to socialist “populism” and the complicated internal dynamics within the governing coalition have paralyzed the government. It has repeatedly postponed important reforms like eliminating its absurd exchange rate controls (the country has at least four exchange rates) or raising the domestic price of gasoline (the cheapest in the world by far). Instead, the government has “adjusted” by shutting off imports, leaving store shelves all over the country barren.

This strategy now seems unsustainable. According to various estimates, in 2015 Venezuela imported about $32 billion worth of goods. This was a marked drop from the previous year. This year, given current oil prices and dwindling foreign reserves, if Venezuela were to pay off its obligations — at least $10 billion — and maintain government spending, it would have to import close to nothing. In a country that imports most of what it consumes, this would ensure mayhem. That is why all analysts predict default in the coming months.

The Economist has joined the chorus, saying that “the government has run out of dollars.” In the words of Harvard professor Ricardo Hausmann, this will be “the largest and messiest emerging market sovereign default since the Argentine crisis of 2001.”

One of the reasons the coming default will be so messy is the many instruments involved, all issued under widely varying conditions. Part of the stock of debt was issued by PDVSA, Venezuela’s state-owned oil company, which owns significant assets overseas (For example, Citgo is 100 percent owned by the Venezuelan government). Another part of the debt was issued by the national government directly, while another big chunk is owed to China, under secretive terms.

The Chinese issue looms large. China’s loans to Venezuela — close to about $18 billion, according to Barclay’s – consist of short-term financing payable via oil shipments. As the price of oil collapses, Venezuela needs to ship more oil to China in order to pay them back. Barclay’s estimates that right now this is close to 800,000 barrels per day, leaving little more than a million barrels per day Venezuela can sell for cash.

A default will send ripples beyond Wall Street. Many people have been buying high-risk, high-return Venezuelan debt for years — from pension funds in far-off countries to small banks in developing ones. Most stand to lose their shirts. Yet the signs that this was unsustainable were there for all to see.

For years, Venezuela has had a massive budget deficit, sustained only by exorbitant oil prices. For years, analysts have been warning that the Venezuelan government would rather chew nails that allow the private sector to grow. And yes, a lot of that borrowed money was used to help establish a narco-military kleptocracy.

It is impossible to untangle the ethical implications of all of this. Lending Venezuela money is what business ethics professors talk about when they question “winning at someone else’s expense.” Losing money from investing in Venezuela is akin to losing it from, say, funding a company that engages in morally reprehensible acts. (Insert the name of your favorite evil corporate villain here).

Investors in companies with “tainted profits” from, say, engaging in child labor or violating human rights should not get the world’s sympathy, nor should they be bailed out. Similarly, investors in Venezuelan debt have only their hubris to blame.

In a few months, once the rubble of the Bolivarian revolution is cleared, the discussion will turn to how Venezuela can be helped. It would be smart to remember that aid should come to the Venezuelan people first. As the scarcity of food and medicine grows,

Venezuela may become the first petro-state to face a humanitarian disaster.

Venezuela may become the first petro-state to face a humanitarian disaster.

If and when a responsible government in Caracas asks for foreign assistance, solving this urgent issue should be at the top of the agenda. Conditions on financial assistance should privilege the interests of Venezuelans caught in the debacle above the interests of angry hedge fun managers or international bankers.

In other words, the Venezuelan people should come first. The folks who enabled this catastrophe? They can wait.