Things are so bad in China that its gross domestic product growth rate may fall from double digits to the dowdy level of 8%. Eight percent, by the way, is a level at which the United States is unlikely to ever grow again. It can't. Our economy is simply fully developed. Thus the sobriquet "developed economy." I know, not exactly catchy.

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All of the headlines show China sitting at a crossroads. But the reason I have faith in China is that it has historical proxies. Since 1970, with the exception of a few OPEC members, only four economies have made the transition from emerging to developed markets (meaning their per-capita incomes exceed $15,000 per year): Taiwan, Singapore, Hong Kong, and South Korea.

These four economies have two things in common. First, they have few natural resources; and second, they are dominated by Chinese values and the traditional Chinese work ethic. Mainland China is different only because it got a later start.

“When I wrote the book, I thought I was writing about the future. When it was going to press, I thought it was about current affairs. Now I wish it was about history.”

This part below reminds me a lot of 1995 security architectures used to defend 2008 integrated applications

The present crisis had been triggered because the international financial system had undertaken activities that had “far outpaced the ability of the infrastructure to sustain them”, said El-Erian.

And it was not just the markets that could not cope with their own changes, but governments as well. Significant weaknesses had been exposed “from the firms, to the regulatory agencies, to governments, to multilateral oversight”.

“Turbocharge that with financial innovations, which history tells us we tend to overproduce and overconsume, and it’s inevitable that you will get a series of market accidents,” he said.

This is just ridiculous. Of course the bad guys will use all the communications tools available to the rest of us. They have to communicate, after all. They'll also use cars, water faucets, and all-you-can-eat buffet lunches. So what?

This commentary is dead on:

Steven Aftergood, a veteran intelligence analyst at the Federation of the American Scientists, doesn't dismiss the Army presentation out of hand. But nor does he think it's tackling a terribly seriously threat. "Red-teaming exercises to anticipate adversary operations are fundamental. But they need to be informed by a sense of what's realistic and important and what's not," he tells Danger Room. "If we have time to worry about 'Twitter threats' then we're in good shape. I mean, it's important to keep some sense of proportion."

It’s still predominantly made up of an army of skilled hackers focused on better ways to break systems apart and find new ways to exploit vulnerabilities than “security architects” who are designing secure components, protocols and ultimately secure systems. If you don’t believe me go have a conversation with a  so called application security  consultant about SAML or security issues in Enterprise Message Buses and you’ll almost definitely draw blank stares. Ask application security consultants if they know about the latest HTTP or HTML spec and they’ll likely say yes (and want to demonstrate the latest issues) but if you ask them about the latest WS-x spec you’ll likely draw more blank stares.  When was the last time you saw an attack drawn out as a UML sequence diagram? This is worrying and somewhat sad. I don’t think we are culturing, encouraging and nurturing people with the right skills to make a positive difference. 

In a presentation late last week at the Director of National Intelligence Open Source Conference in Washington, Dr. Dwight Toavs, a professor at the Pentagon-funded National Defense University, gave a bit of a primer on virtual worlds to an audience largely ignorant about what happens in these online spaces. Then he launched into a scenario, to demonstrate how a meatspace plot might be hidden by in-game chatter.

In it, two World of Warcraft players discuss a raid on the "White Keep" inside the "Stonetalon Mountains." The major objective is to set off a "Dragon Fire spell" inside, and make off with "110 Gold and 234 Silver" in treasure. "No one will dance there for a hundred years after this spell is cast," one player, "war_monger," crows.

Except, in this case, the White Keep is at 1600 Pennsylvania Avenue. "Dragon Fire" is an unconventional weapon. And "110 Gold and 234 Silver" tells the plotters how to align the game's map with one of Washington, D.C.

I don't know why he thinks that the terrorists will use World of Warcraft and not some other online world. Or Facebook. Or Usenet. Or a chat room. Or e-mail. Or the telephone. I don't even know why the particular form of communication is in any way important.

The article ends with this nice paragraph:

Steven Aftergood, the Federation of the American Scientists analyst who's been following the intelligence community for years, wonders how realistic these sorts of scenarios are, really. "This concern is out there. But it has to be viewed in context. It's the job of intelligence agencies to anticipate threats and counter them. With that orientation, they're always going to give more weight to a particular scenario than an objective analysis would allow," he tells Danger Room. "Could terrorists use Second Life? Sure, they can use anything. But is it a significant augmentation? That's not obvious. It's a scenario that an intelligence officer is duty-bound to consider. That's all."

My guess is still that some clever Pentagon researchers have figured out how to play World of Warcraft on the job, and they're not giving that perk up anytime soon.

A United Nations agency is quietly drafting technical standards, proposed by the Chinese government, to define methods of tracing the original source of Internet communications and potentially curbing the ability of users to remain anonymous.

The U.S. National Security Agency is also participating in the "IP Traceback" drafting group, named Q6/17, which is meeting next week in Geneva to work on the traceback proposal. Members of Q6/17 have declined to release key documents, and meetings are closed to the public.

[...]

A second, apparently leaked ITU document offers surveillance and monitoring justifications that seem well-suited to repressive regimes:

A political opponent to a government publishes articles putting the government in an unfavorable light. The government, having a law against any opposition, tries to identify the source of the negative articles but the articles having been published via a proxy server, is unable to do so protecting the anonymity of the author.

This is being sold as a way to go after the bad guys, but it won't help. Here's Steve Bellovin on that issue:

First, very few attacks these days use spoofed source addresses; the real IP address already tells you where the attack is coming from. Second, in case of a DDoS attack, there are too many sources; you can't do anything with the information. Third, the machine attacking you is almost certainly someone else's hacked machine and tracking them down (and getting them to clean it up) is itself time-consuming.

TraceBack is most useful in monitoring the activities of large masses of people. But of course, that's why the Chinese and the NSA are so interested in this proposal in the first place.

It's hard to figure out what the endgame is; the U.N. doesn't have the authority to impose Internet standards on anyone. In any case, this idea is counter to the U.N. Universal Declaration of Human Rights, Article 19: "Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers." In the U.S., it's counter to the First Amendment, which has long permitted anonymous speech. On the other hand, basic human and constitutional rights have been jettisoned left and right in the years after 9/11; why should this be any different?

But when the Chinese government and the NSA get together to enhance their ability to spy on the world, you have to wonder what's gone wrong with the world.

From the Consumerist:

Last week, “This American Life” featured a 30-minute piece on people who scam the scammers—in this case, three guys who prey upon small-time Nigerian con men and try to trick them into placing themselves in mortal danger. “This American Life” tells how they almost got a guy to enter a Western Union office in Chad carrying an anti-Muslim/pro-Bush note that announces his intention to rob the place. Whether you think these stunts are funny probably depends on your level of empathy even for criminals, and whether you think the avengers ever fully succeed. But c’mon, getting someone in another country to hold up a sign that’s offensive in your language is pretty much always funny

Listen to the episode over at this American Life.

Today's announcement sees Meraki nicely footing the bill for extending their service into neighborhood affordable housing, municipal-speak for low-income housing that's subsidized typically through government efforts and funds. Meraki will install networks at 12 buildings in the Tenderloin, known as San Francisco's roughest neighborhood, now going on many decades with that designation.

Meraki claims a "presence" in 42 of 52 major neighborhoods in the city, although their map tells a very different story about how usage is clustered in areas in which it would make perfect sense that usage was seen.

Meraki has engaged in a very interesting public project, and likes the imprimatur of San Francisco, even as they don't really need the city; the city, in contrast, needs them (or Newsom particularly) to salvage something from years of planning that blew up in their faces.

Anyway, SF's EarthLink network would never have been built; or, having been underway, would never have been completed.

Forgive my snark tone and cynicism: Meraki has put a lot of resources into building a publicly accessible network across a hunk of SF that wouldn't otherwise exist.

He explains all the district's hydrants, including those in Alexander Ranch, have had their water turned off since just after 9/11 -- something a trade association spokesman tells us is common practice for rural systems.

"These hydrants need to be cut off in a way to prevent vandalism or any kind of terrorist activity, including something in the water lines," Hodges said.

But Hodges says fire departments know, or should have known, the water valves can be turned back on with a tool.

One, fires are much more common than terrorism -- keeping fire hydrants on makes much more sense than turning them off. Two, what sort of terrorism is possible using working fire hydrants? Three, if the water valves can be "turned back on with a tool," how does turning them off prevent fire-hydrant-related terrorism?

More and more, it seems as if public officials in this country have simply gone insane.