Category Archives: The Denise Simon Experience

Passionatepolka, TreasureMap and FLATLIQUID?

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I read one of his books several years ago….

The summary below is not classified material. The Intelligence Community  including the NSA has declassified a lot of material such as:

Chinese Cyber Espionage in the U.S.

August 10, 2015

China Read Emails of Top U.S. Officials – NBC News

NSA slide showing China hacking units

Commentary: The world’s best cyber army doesn’t belong to Russia

by: Bamford

Reuters: National attention is focused on Russian eavesdroppers’ possible targeting of U.S. presidential candidates and the Democratic Congressional Campaign Committee. Yet, leaked top-secret National Security Agency documents show that the Obama administration has long been involved in major bugging operations against the election campaigns — and the presidents — of even its closest allies.

The United States is, by far, the world’s most aggressive nation when it comes to cyberspying and cyberwarfare. The National Security Agency has been eavesdropping on foreign cities, politicians, elections and entire countries since it first turned on its receivers in 1952. Just as other countries, including Russia, attempt to do to the United States. What is new is a country leaking the intercepts back to the public of the target nation through a middleperson.

There is a strange irony in this. Russia, if it is actually involved in the hacking of the computers of the Democratic National Committee, could be attempting to influence a U.S. election by leaking to the American public the falsehoods of its leaders. This is a tactic Washington used against the Soviet Union and other countries during the Cold War.

In the 1950s, for example, President Harry S Truman created the Campaign of Truth to reveal to the Russian people the “Big Lies” of their government. Washington had often discovered these lies through eavesdropping and other espionage.

Today, the United States has morphed from a Cold War, and in some cases a hot war, into a cyberwar, with computer coding replacing bullets and bombs. Yet the American public manages to be “shocked, shocked” that a foreign country would attempt to conduct cyberespionage on the United States.

NSA operations have, for example, recently delved into elections in Mexico,  targeting its last presidential campaign. According to a top-secret PowerPoint presentation leaked by former NSA contract employee Edward Snowden, the operation involved a “surge effort against one of Mexico’s leading presidential candidates, Enrique Peña Nieto, and nine of his close associates.” Peña won that election and is now Mexico’s president.

The NSA identified Peña’s cellphone and those of his associates using advanced software that can filter out specific phones from the swarm around the candidate. These lines were then targeted. The technology, one NSA analyst noted, “might find a needle in a haystack.” The analyst described it as “a repeatable and efficient” process.

The eavesdroppers also succeeded in intercepting 85,489 text messages, a Der Spiegel article noted.

Another NSA operation, begun in May 2010 and codenamed FLATLIQUID, targeted Pena’s predecessor, President Felipe Calderon. The NSA, the documents revealed, was able “to gain first-ever access to President Felipe Calderon’s public email account.”

At the same time, members of a highly secret joint NSA/CIA organization, called the Special Collection Service, are based in the U.S. embassy in Mexico City and other U.S. embassies around the world. It targets local government communications, as well as foreign embassies nearby. For Mexico, additional eavesdropping, and much of the analysis, is conducted by NSA Texas, a large listening post in San Antonio that focuses on the Caribbean, Central America and South America.

Unlike the Defense Department’s Pentagon, the headquarters of the cyberspies fills an entire secret city. Located in Fort Meade, Maryland, halfway between Washington and Baltimore, Maryland, NSA’s headquarters consists of scores of heavily guarded buildings. The site even boasts its own police force and post office.

And it is about to grow considerably bigger, now that the NSA cyberspies have merged with the cyberwarriors of U.S. Cyber Command, which controls its own Cyber Army, Cyber Navy, Cyber Air Force and Cyber Marine Corps, all armed with state-of-the-art cyberweapons. In charge of it all is a four-star admiral, Michael S. Rogers.

Now under construction inside NSA’s secret city, Cyber Command’s new $3.2- billion headquarters is to include 14 buildings, 11 parking garages and an enormous cyberbrain — a 600,000-square-foot, $896.5-million supercomputer facility that will eat up an enormous amount of power, about 60 megawatts. This is enough electricity to power a city of more than 40,000 homes.

In 2014, for a cover story in Wired and a PBS documentary, I spent three days in Moscow with Snowden, whose last NSA job was as a contract cyberwarrior. I was also granted rare access to his archive of documents. “Cyber Command itself has always been branded in a sort of misleading way from its very inception,” Snowden told me. “It’s an attack agency. … It’s all about computer-network attack and computer-network exploitation at Cyber Command.”

The idea is to turn the Internet from a worldwide web of information into a global battlefield for war. “The next major conflict will start in cyberspace,” says one of the secret NSA documents. One key phrase within Cyber Command documents is “Information Dominance.”

The Cyber Navy, for example, calls itself the Information Dominance Corps. The Cyber Army is providing frontline troops with the option of requesting “cyberfire support” from Cyber Command, in much the same way it requests air and artillery support. And the Cyber Air Force is pledged to “dominate cyberspace” just as “today we dominate air and space.”

Among the tools at their disposal is one called Passionatepolka, designed to “remotely brick network cards.” “Bricking” a computer means destroying it – turning it into a brick.

One such situation took place in war-torn Syria in 2012, according to Snowden, when the NSA attempted to remotely and secretly install an “exploit,” or bug, into the computer system of a major Internet provider. This was expected to provide access to email and other Internet traffic across much of Syria. But something went wrong. Instead, the computers were bricked. It took down the Internet across the country for a period of time.

While Cyber Command executes attacks, the National Security Agency seems more interested in tracking virtually everyone connected to the Internet, according to the documents.

One top-secret operation, code-named TreasureMap, is designed to have a “capability for building a near real-time interactive map of the global Internet. … Any device, anywhere, all the time.” Another operation, codenamed Turbine, involves secretly placing “millions of implants” — malware — in computer systems worldwide for either spying or cyberattacks.

Yet, even as the U.S. government continues building robust eavesdropping and attack systems, it looks like there has been far less focus on security at home. One benefit of the cyber-theft of the Democratic National Committee emails might be that it helps open a public dialogue about the dangerous potential of cyberwarfare. This is long overdue. The possible security problems for the U.S. presidential election in November are already being discussed.

Yet there can never be a useful discussion on the topic if the Obama administration continues to point fingers at other countries without admitting that Washington is engaged heavily in cyberspying and cyberwarfare.

In fact, the United States is the only country ever to launch an actual cyberwar — when the Obama administration used a cyberattack to destroy thousands of centrifuges, used for nuclear enrichment, in Iran. This was an illegal act of war, according to the Defense Department’s own definition.

Given the news reports that many more DNC emails are waiting to be leaked as the presidential election draws closer, there will likely be many more reminders of the need for a public dialogue on cybersecurity and cyberwarfare before November.

 

(James Bamford is the author of The Shadow Factory: The Ultra-Secret NSA From 9/11 to the Eavesdropping on America. He is a columnist for Foreign Policy magazine.)

Russia IS in Ukraine and Planning Another Offensive

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Militants preparing offensive at Svitlodarsk bridgehead: Ukraine intelligence Militants are preparing for combat operations in the Donetsk and Slaviansk directions, the Main Directorate of Intelligence of Ukraine’s Defense Ministry wrote on Facebook.

Pro-Russian rebels in eastern Ukraine accuse government soldiers of launching a new offensive near a prized but obliterated airport in the separatists’ de facto capital of Donetsk.

“The intelligence service has detected signs of enemy preparations for combat operations in the Donetsk and Slaviansk directions (Svitlodarsk bridgehead). From August 4 to 8, there is threat of an intensified offensive or raid actions to expand controlled areas,” the report read.

Read also: Donbas militants keep tanks, Grad launchers near Makiyivka, Donetsk – intel

The militants also continue to conduct reconnaissance. In particular, the intelligence service spotted a reconnaissance group of the 9th separate Assault Marine Regiment (Novoazovsk) of the 1st Armed Corps (Donetsk) of the Russian Armed Forces. Sabotage and reconnaissance groups are also scheduled to make an appearance in the following settlements: Maiorsk, Zaitseve, Avdiyivka and Opytne, as well as Pisky, Krasnohorivka and Maryinka. In addition, the intelligence service has reported the arrival of railway cargo from the territory of the Russian Federation to Ilovaisk, comprising two railcars filled with anti-tank and anti-personnel mines, six railcars with ammunition, one railcar with medicines and another one with the uniforms. More here. 
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Russia has been and is paying special attention to Ukraine. This was the case during tsarist and Soviet times. This is the case now. Consequently, Ukraine has been widely infiltrated by Russian agents, who help their “brotherly neighbors” direct the course of the Ukrainian state into the pro-Russian channel. These agents of influence are not only the Russian mass-media, like the Russian Vesti media conglomerate, the Opposition  Bloc Party, the Ukrainian Choice organization (pro-Russian group created by Putin’s crony Viktor Medvedchuk — Ed.), the numerous parishes of the Moscow Patriarchate, and the Russian business structures that continue to operate in Ukraine. Russian agents have even infiltrated the structures that display their pro-Ukrainian orientation.

Putin’s “Brusilov Offensive” is based on isolating Ukraine from the West on the one hand and destabilizing Ukraine on the other. He has already accomplished portions of the plan; he may yet accomplish others. But we alone will determine to what extent we will resist this “offensive” and if we have enough endurance and the ability to be guided by cold reason. Read more here.

Given the Debt, Venezuela is out of Money

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How bad is it? Hey Bernie, Hillary….what say you? Could there be yet another insurgency coming into the United States of refugees?

A new decree issued by the Venezuelan government that forces workers to take agricultural jobs has been denounced as “forced labor” by human rights organizations and unions.

The Nicolás Maduro administration made the controversial regulation public on July 22, saying it was an attempt to curb the country’s widespread shortages of food.

The decree said the Venezuelan government, through the Labor Ministry, can arbitrarily force public and private companies to “lend” them  employees for farm work.

In a statement on July 29, Amnesty International called the new system “forced labor.” More here.

 

Venezuelans carrying groceries cross the Simon Bolivar bridge from Cucuta in Colombia back to San Antonio de Tachira in Venezuela, on July 17, 2016 (AFP Photo/George Castellanos)

Fleeing the country

Bogota (AFP) – Venezuela’s economic crisis has sent a huge but largely ignored wave of people into Colombia, and many more could be on the way, a senior UN refugee official said.

“It’s a silent arrival of a lot of people who are crossing the border and staying illegally on the Colombian side,” said Martin Gottwald, the United Nations Refugee Agency’s representative in Colombia.

No exact figures are available, but the number of Venezuelans fleeing to Colombia is already “quite large,” and Colombia should prepare itself for more, Gottwald told AFP in an interview.

“The avalanche is probably going to increase, with or without the reopening of the border,” he said.

Venezuelan President Nicolas Maduro closed the countries’ border in August 2015 after an attack on an army patrol. He blamed right-wing paramilitaries from Colombia.

The leftist leader briefly reopened it last weekend to allow Venezuelans to stock up on food, medicine and other basic supplies amid severe shortages in Venezuela.

Gottwald said a sizeable number of Venezuelans who entered Colombia probably never returned.

Venezuela’s cash could run out ‘within a year’

Venezuela is running out of money and time.

CNN: The country’s central bank only has $11.9 billion in reserves, down sharply from $30 billion in 2011. A few large debt payments are coming due soon. Starting in October, Venezuela owes a total of $4.7 billion in a series of payments.

Venezuela is in the midst of a deep economic, political and humanitarian crisis. Its citizens are suffering from massive food shortages and hospitals lack basic medicine and equipment. Experts say Venezuela has prioritized paying the debt over dealing with the shortages.

“Within a year they’re going to run out of money,” says Russ Dallen, an expert on Venezuela’s debt and managing partner at Caracas Capital, an investing firm in Miami. Dallen pointed out that the country has been almost “suicidal” in its focus on making debt payments.

Related: Venezuela is selling oil for food to Jamaica

Experts’ guesses vary over exactly how much time Venezuela has before it runs out of cash. But all agree that at this rate, Venezuela does not have enough reserves to make all its payments for the next two years.

Much of Venezuela’s reserves are in gold, some of which the country has shipped to Switzerland this year to help repay its debts. As of May, Venezuela had $7.4 billion of its reserves in gold. However, it sent more gold in June, Swiss data shows.

“It doesn’t seem that Venezuela is going to be able to make all payments for next year,” says Mauro Roca, a Latin American economist at Goldman Sachs (GS). “The probability for default is much higher for next year than this year.”

Related: What went wrong in Venezuela

It is a dire situation and ironic for a country that sits on the world’s largest oil reserves. It’s true that oil prices have dropped dramatically and Venezuela hasn’t been able to earn enough money for its oil. But whatever money Venezuela earns from its oil is going to pay down its debts to lenders like China, bondholders, oil drilling companies and importers.

Even oil drilling companies are starting to cut business in Venezuela. For instance, in April, Schlumberger said it would reduce operations in Venezuela due to unpaid bills. It’s also one of the key reasons why the country’s oil production has plunged to 13-year lows.

Related: Why Venezuela’s oil production plunged to a 13-year low

According to Bank of America (BAC), Venezuela’s imports — which include food and medicine — declined between 40% and 45% in the first five months this year compared to the same time a year ago. (There isn’t reliable government data on imports).

“It’s a dramatic cut…they’re making a big effort to pay the debt,” says Sebastian Rondeau, an economist at Bank of America. He estimates that Venezuela can make debt payments until April of next year. “Then the second half of next year is going to be very complicated.”

There is still a chance that Venezuela could default this year. Venezuelan officials are currently working with bondholders of the country’s state-run oil company, PDVSA, to exchange short-term debt, which is due in October and November, with longer-term debt. If bondholders don’t agree, it could be a problem.

“It would just kick the can further down the road…we still think the government is highly likely to default over the next two years, if not in the next six months,” says Edward Glossop, an economist at Capital Economics, a research firm.

But China may be coming to Venezuela’s rescue. China is reportedly in talks to give Venezuela a one-year grace period on repaying its debt and only make interest payments. Since 2007, China has loaned Venezuela $65 billion and Venezuela has been slowly repaying that via oil shipments.

Last year, Venezuela shipped 579,000 barrels of oil per day on average to China, an audited financial statement from the country’s oil company shows. It appears China may now cut Venezuela some slack, so it can sell oil to bring in some money.

Regardless of a new debt deal or temporary relief from China, experts say Venezuela’s current path isn’t sustainable.

“It’s like saying how long can you hold your breath under water?” says Dallen.

The Pen and Phone Just Commuted Another 214 Criminals

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Obama Commutes Sentences For 214 Federal Prisoners

President Obama on Wednesday cut short the sentences of 214 federal inmates, including 67 life sentences, in what the White House called the largest batch of commutations on a single day in more than a century.

Almost all the prisoners were serving time for nonviolent crimes related to cocaine, methamphetamine or other drugs, although a few were charged with firearms violations related to their drug activities. Almost all are men, though they represent a diverse cross-section of America geographically.

Obama’s push to lessen the burden on nonviolent drug offenders reflects his long-stated view that the U.S. needs to remedy the consequences of decades of onerous sentencing requirements that put tens of thousands behind bars for far too long. Obama has used the aggressive pace of his commutations to increase pressure on Congress to pass a broader fix and to call more attention to the issue.

All told, Obama has commuted 562 sentences during his presidency — more than the past nine presidents combined, the White House said. Almost 200 of those who have benefited were serving life sentences.

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FNC: “We are not done yet,” Deputy Attorney General Sally Yates said. “We expect that many more men and women will be given a second chance through the clemency initiative.”

Most of those receiving commutations Wednesday will be released December 1.

Though there’s broad bipartisan support for a criminal justice overhaul, what had looked like a promising legislative opportunity for Obama’s final year has mostly fizzled. As with Obama’s other priorities, the intensely political climate of the presidential election year has confounded efforts by Republicans and Democratic in Congress to find consensus.

Obama has long called for phasing out strict sentences for drug offenses, arguing they lead to excessive punishment and incarceration rates unseen in other developed countries. With Obama’s support, the Justice Department in recent years has directed prosecutors to rein in the use of harsh mandatory minimums.

The Obama administration has also expanded criteria for inmates applying for clemency, prioritizing nonviolent offenders who have behaved well in prison, aren’t closely tied to gangs and would have received shorter sentences if they had been convicted a few years later.

Civil liberties groups praised that policy change but have pushed the Obama administration to grant commutations at a faster pace. The Clemency Resource Center, part of NYU School of Law, said more than 11,000 petitions are pending at the Justice Department and that the group believes 1,500 of them meet the administration’s criteria to be granted.

But the calls for greater clemency have sometimes sparked accusations from Obama’s opponents that he’s too soft on crime, an argument that is particularly resonant this year as presidential candidates Donald Trump and Hillary Clinton trade claims about who is best positioned to keep the country safe.

“Many people will use words today like leniency and mercy,” said Kevin Ring of the group Families Against Mandatory Minimums. “But what really happened is that a group of fellow citizens finally got the punishment they deserved. Not less, but at long last, not more.”

$400M is but One Payment to Iran, from a 1996 Legal Case

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It is not ransom, it is not ransom…okay…well let’s go further shall we?

Justice Department Officials Raised Objections on U.S. Cash Payment to Iran

Some officials worried about message being sent, but were overruled, WSJ

Then, Obama violated his own Executive Order as noted here and dated February 5, 2012.

Why did we convert to cash in various currencies and not just wire the money into designated Iranian banks? Well the excuse is sanctions. And Iran demanded cash such that later purchases or transactions could not be monitored, so John Kerry was cool with that. The result was smuggling $400 million on pallets on an unmarked cargo plane that landed in the middle of the night. Smuggling?

What is bulk cash smuggling?

Bulk Cash Smuggling is a reporting offense under the Bank Secrecy Act, and is part of the United States Code (U.S.C.). The code stipulates:

Whoever, with the intent to evade a currency reporting requirement, knowingly conceals more than $10,000 in currency or other monetary instruments on the person of such individual or in any conveyance, article of luggage, merchandise, or other container, and transports or transfers or attempts to transport or transfer such currency or monetary instruments from a place within the United States to a place outside of the United States, or from a place outside the United States to a place within the United States, shall be guilty of a currency smuggling offense.

What authorities govern bulk cash smuggling offenses?

Title 31 U.S.C. § 5332 (Bulk Cash Smuggling) makes it a crime to smuggle or attempt to smuggle more than $10,000 in currency or monetary instruments into or out of the United States, with the specific intent to evade the U.S. currency reporting requirements codified in Title 31 U.S.C. §§ 5316 and 5317.

ICE HSI relies on other financial authorities granted under Title 31 U.S.C. (Money and Finance), specifically those related to violations of reporting requirements and structuring financial transactions, as well as criminal authorities, such as Title 18 U.S.C. § 1960 (Unlicensed Money Transporter/Transmitter), Title 18 U.S.C. § 1952 (Interstate and Foreign Travel or Transportation in Aid of Racketeering Enterprises) and Title 18 U.S.C. § 1956 (Money Laundering). These authorities allow ICE HSI to disrupt and dismantle criminal networks that move bulk cash, wherever they may operate.

What are monetary instruments?

Monetary instruments are financial instruments that can be used similarly to cash. Specifically, monetary instruments are defined on the second or reverse side of the FinCEN Form 105:

  1. Coin or currency of the United States or of any other country.
  2. Traveler’s checks in any form.
  3. Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title thereto passes upon delivery.
  4. Incomplete instruments (including checks, promissory notes, and money orders) that are signed but on which the name of the payee has been omitted.
  5. Securities or stock in bearer form or otherwise in such form that title thereto passes upon delivery.

Monetary instruments do not include the following:

  • Checks or money orders made payable to the order of a named person which have not been endorsed or which bear restrictive endorsements.
  • Warehouse receipts
  • Bills of lading.   More here.

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Remember the plane was delayed for reasons no one was willing to declare but then John Kerry blamed it on a glitch with the passenger list.

There had been expectations that they would leave on Saturday, while the final round of talks on sanctions were taking place. But the Swiss plane carrying Jason Rezaian, the Washington Post’s Tehran bureau chief, Saeed Abedini, a pastor from Idaho and Amir Hekmati, a former Marine from Flint, Michigan as well as some of their family members did not leave until Sunday morning.

It had been reported when the plane took off that Nosratollah Khosravi-Roodsari, about whom little is known, was on board. But a senior U.S. official later said he was not traveling with the other released prisoners. More here.

It is also important to remember as Iran released 4 prisoners, the United States released 7. It is also important to remember that Obama had to issue a pardon for those 7 to be released.

Iran’s official state news agency, IRNA, named the Iranians set for release as Nader Modanlou, Bahram Mechanic, Khosrow Afghahi, Arash Ghahraman, Tooraj Faridi, Nima Golestaneh and Ali Saboonchi. Mechanic’s lawyer told Reuters that Mechanic, Faridi and Afghahi had been pardoned, but Mechanic and Faridi had not yet been freed from custody as their release was contingent on the four American prisoners leaving Iran. The U.S. government has yet to confirm the identities of the Iranians to be freed. All seven have the option of staying in the U.S. rather than returning to Iran. The U.S. State Department also dropped an international request to detain 14 Iranians on trade violations on Saturday, saying the extradition requests were unlikely to be successful. More here.

Okay, so with all of that, what about the rest of the money allegedly owed to Iran?

Well it seems someone needs to look at the lawsuit in clear detail as it was not filed until 1996. The U.S. response to the lawsuit is here in .pdf.

On August 12, 1996, the Islamic Republic of Iran filed aStatement of Claim (Doc . 1) in a new interpretive dispute againstthe United States, Case No . A/30, alleging that the United Stateshas violated its commitments under the Algiers Accords byinterfering in Iran’s internal affairs and implementing economicsanctions against Iran.

The Government of Iran, which has a long record of using terrorism and lethal force as an instrument of state policy, isseeking a ruling from the Tribunal that the United States hasviolated the Algiers Accords by intervening in Iran’s internalaffairs and enacting economic sanctions against it . Iran assertsthat the United States has violated two obligations under theAlgiers Accords : the pledge in Paragraph 1 of the GeneralDeclaration that it is and will be the policy of the UnitedStates not to intervene in Iran’s internal affairs, and therequirement in Paragraph 10 of the General Declaration to revokeall trade sanctions imposed in response to Iran’s seizing the

U.S . Embassy and taking 52 American hostages on November 4, 1979.

To hear the State Department spokesperson, Admiral Kirby (ret), John Kerry and the White House spokesperson Josh Earnest tell it, the U.S. was about to be rendered a decision by The Hague that we lost the case. Really when it began over kidnapping, hostages and terrorism? C’mon….