Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
In the same category

Catalyst Watch, Part 1: CyberWar

IMG Auteur
Published : February 14th, 2013
743 words - Reading time : 1 - 2 minutes
( 2 votes, 4/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Editorials

When the technology of warfare changes, so does everything else. State-of-the-art roads and siege engines gave the Roman Empire control of the western world two millennia ago. The long bow won some notable battles for England in the Hundred-Year War. Machine guns opened pretty much the whole world to European imperialists in the 1800s. And so it has gone, through tanks, jet fighters, and nuclear weapons.

But where previous breakthroughs made it easier to destroy things and kill people, the newest super-weapons don't blow things up, at least not directly. They disrupt information systems, without warning and frequently without betraying the source of the attack. Drawing on recent news accounts along with America the Vulnerable, a terrifying book written by former National Security Agency official Joel Brenner, here's the cyberwar story in a nutshell:

Over the past couple of decades, humanity has grafted its most important systems onto the backbone of the Internet, which was originally designed for scientists to share data easily - that is, with convenience taking precedence over security. So our banking, military, energy and corporate data networks now make critical information available to lots of people using lots of sign-in credentials from lots of different places. As a result, these systems are easy pickings for thieves, vandals, and enemies.

Meanwhile, teenage hackers have been replaced as top predators in this ecosystem by sophisticated organized crime groups and even more sophisticated branches of foreign military/intelligence services. Since it's easier to penetrate critical systems than it is to prevent or detect penetration, it's safe to assume that major military networks, multinational corporations, and top-tier banks have been - and are being - hacked.

This matters because once a hacker is inside a system they can do pretty much anything an authorized user can do, from withdrawing money, to stealing critical data, to crashing the whole system. It is now possible for hackers to: remotely change the operating parameters of power generators to make them blow up, in the process taking down regional power grids; move so much money out of bank/brokerage customer accounts that the institutions fail; and crash the clearing mechanism of a country's banking system. And that's just the obvious stuff. Attacks that we can't currently conceive of are no doubt being contemplated and/or planned by governments and mafias around the world.

All of which explains why cyber-conflict has become front page news. Here's a more-or-less random sampling of recent headlines:

The world's first cyberwar has started

Your password isn't enough to keep your info secure on the internet

Norway preparing for cyber war

Cyber war: mutually assured disruption

Scott Knight: preparing for cyber-war

Obama declares global cyberwar

Federal Reserve gets hacked!

US in growing cyber war with China?

Cybersecurity: how preemptive cyberwar is entering the nation's arsenal

Obama granted cyberwar powers

Why is cyberwar a topic for a site like DollarCollapse? Because assuming - as we should - that the global financial system is now so complex, leveraged, interdependent and fragile that a disruption in one part can easily spread to the rest, the only remaining question is which catalyst will be first to set off the avalanche. A major cyber-attack is a pretty good candidate.

How likely is such an event? Well, based on what the world's governments and corporations are willing to admit (almost certainly the least serious tip of the iceberg), big things are already happening, and the threat of massive retaliation and/or preemptive strike looks both real and imminent. The Japan/China conflict in the China Sea, for instance, could easily pull the US into a cyber-battle, if not war. Because this is uncharted territory, there's no way to predict the impact on the financial markets.

Meanwhile, the cyber-powers now being granted to governments to fight the next war are eviscerating Constitutional protections of personal privacy and liberty. So the ability to fight a cyberwar is also the ability to create a high-tech police state.

Seen this way, cyberwar is yet another reason to avoid keeping a lot of capital tied up in financial assets. If the banks, brokers and insurance companies holding those assets are hacked and maybe disrupted, what happens to your stocks and bonds? Again, this is uncharted territory, which adds to the appeal of real assets held out of the mainstream financial system. The only thing that can be said with certainty is that in a cyberwar your gold coins and farmland will still be there when the virtual dust clears.

Companies Mentionned : Catalyst | Energy X X I |
Data and Statistics for these countries : China | Japan | Norway | All
Gold and Silver Prices for these countries : China | Japan | Norway | All
<< Previous article
Rate : Average note :4 (2 votes)
>> Next article
John Rubino is the author of The Coming Collapse of the Dollar (co-written with James Turk), How to Profit From the Coming Real Estate Bust (Rodale, 2003), and Main Street, Not Wall Street (William Morrow, 1998). A former Wall Street financial analyst and columnist with theStreet.com, he currently writes for Fidelity Magazine and CFA Magazine He lives in Moscow, Idaho
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
First Report since April, 2014
05 FebAndy_K1
Jason, One of your articles written way back is one of the reasons I started paying attention to silver and shortly thereafter started to ...
Something has Changed in Gold St...
06 Febneville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.1
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
LBMA Silver “Price”: A Perfect S...
03 FebS W.
There is no doubt that the Comex can be used as a casino for those who want to trade Silver up/or down or maybe some just wish to take a small punt...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
Bron refuses to EVER admit this market is a Casino and the disconnect between Paper and Physical is a big clue to this
LBMA Silver “Price”: A Perfect S...
30 JanS W.
Usually I enjoy Bron's take on things,but to be perfectly honest, I can't understand 95% of what he his on about here. I get the feeling that h...
ANOTHER NAIL IN THE U.S. EMPIRE ...
30 JanDemosthenes0
Very naive and pretentious article! The author thinks he knows everything and yet knows next to nothing. Shale gas producers are neither stupid n...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.32+0.00%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 52.69-0.77%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 19.67-9.06%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 6.77-4.38%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 52.69-0.77%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 52.69-0.77%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 19.67-9.06%Trend Power :
Corporate news
Comments closed