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Update on Eddie the Friendly Spook’s Economic Warfare against the U.S.

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COMMENT: In a previous post, we updated The Adventures of Eddie the Friendly Spook. In that post we took note of an Atlantic article which highlights a joint Brazilian/EU effort to build a Transatlantic fiber-optic cable to thwart U.S. surveillance, as well as Merkel’s plans to create a data-secure EU internet structure. All of this supposedly in response to Snowden’s “disclosures.” As we have noted in the past, this is sheer nonsense. Germany, EU countries and other major intelligence services do the same thing. Germany, Brazil and the EU have known of the NSA’s activities for years. Germany has been a long-standing partner with NSA.

Snowden–whom we think is being directed by BND (as well as by an element of CIA)–engaged in his “op” in order to justify a pre-arranged economic offensive against the American IT sectorThe article also notes that the invention of the Internet was a huge boon to the U.S. economy. As we noted in our series on Eddie the Friendly Spook, the Snowden “op” is an act of economic and political warfare against the United States.

Now, we note an article that chronicles serious damage to the U.S. high-tech economy as a result of Snowden’s “op.”

We told you so!

“New Report Snows Edward Snowden’s Revelations Are Seriously Damaging U.S. Tech Firms” by Eugene Kim; Business Insider; 7/30/014.

 The nonprofit New America Foundation released a new report this week that summarizes the impact of Edward Snowden’s NSA revelation on U.S. tech firms.
Within weeks of the first NSA revelation last year, companies like Dropbox and Amazon Web Services reported immediate drops in their sales, the report said. Citing a previous report, it said the NSA’s PRISM program could cost cloud-computing companies from $22 billion to $180 billion over the next there years.

“This erosion in trust threatens to do the most immediate damage to the cloud computing industry, which would lose billions of dollars in the next three to five years as a result,” it said.

In particular, U.S. tech firms are being severely hit in overseas markets, the report said. Companies such as Cisco, Qualcomm, IBM, Microsoft, and HP have all reported declines in sales in China following the NSA revelations. In fact, according to The Wall Street Journal, Cisco said it’s expecting roughly a 10% loss in quarterly revenue because of the “Snowden effect.” A web-hosting company called Servint reportedly lost more than half of its overseas clients following the revelation.

American firms are also losing the trust of foreign governments because of this. The German government said it would end its contract with Verizon last month, while Brazil picked Swedish firm Saab over Boeing for a deal to replace its fighter jets, according to the report. It said more and more foreign competitors are benefiting from the perceived image of being “NSA-proof” or “safer” than U.S. firms.

As a result, countries like Germany, Brazil, and India are close to enacting a new law that would require companies to use local data centers. For example, German Chancellor Angela Merkel, after refusing to visit the U.S. for months after the NSA disclosures, has called for data localization laws. Brazil and India are proposing IT companies to either set up or keep their data centers within local boundaries, while Greece, Brunei, and Vietnam are following suit with similar measures, the report said.

All of this could slow the growth of the U.S. tech industry by as much as 4% and seriously undermine America’s credibility around the world, the report concluded.


2 comments for “Update on Eddie the Friendly Spook’s Economic Warfare against the U.S.”

  1. This story presents a narrative (and a speculative one at best, note all the qualifying “could cost” clauses) which paints U.S. corporate interests as “victims” in this affair.

    The reality is that the surveillance state is largely run and directed by the private sector: the defense industry and hi-tech. The NSA is an appendage of a much larger, and far more invasive, data broker industry.


    Snowden’s leaks demonstrate that these programs directly benefit the corporate elite via the NSA/CIA’s economic espionage, diplomatic manipulation, and social control. Counter terrorism is a cover story.

    The long trail of revelations isn’t intended as an attack on corporate America. Instead they reveal the destruction of the U.S. republic from the inside by deep sources of power outside of government. The top of the economic spectrum has achieved state capture and is now moving to acquire greater control as it hollows out the middle class and fights against opposing centers of foreign power.

    The Deep State is run by a corporate empire and the intelligence agencies are the praetorian guard of this empire.

    Posted by Rick James | August 3, 2014, 9:20 am
  2. @Rick James–

    It doesn’t appear that you have taken the time to examine the admittedly lengthy “Eddie the Friendly Spook” series to any serious extent.

    This article glosses over the critical facts that: what NSA/GCHQ does is standard operating procedure for all major intelligence services; far from being “shocked, shocked” at Snowden’s “disclosures” (the core of which have been public record for many years), Merkel and the rest of the Euro-hypocrites are instituting their own, accelerated programs to do the same thing; Merkel, far from disapproving, wants “in” on the Five Eyes spying club; Germany, the EU and Brazil are ramping up their IT sectors (supposedly in “response” to the Snowden material)–a decision certainly arrived at well in advance; Snowden is almost certainly operating on their behalf; Snowden is a hard-core fascist (as is Assange) with all of the relevant political affiliations going to the far right.

    You appear to have fundamentally missed the point, perhaps understandable in light of the length and complexity of the “Eddie the Friendly Spook” series.



    Posted by Dave Emory | August 3, 2014, 10:31 am

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