Dave Emory’s entire lifetime of work is available on a flash drive that can be obtained here. (The flash drive includes the anti-fascist books available on this site.)
COMMENT: We’ve covered Eddie “The Friendly Spook” Snowden’s exploits in numerous previous posts: Part I, Part II, Part III, Part IV, Part V, Part VI, Part VII, Part VIII, Part IX, Part X, Part XI.) Users of this website are emphatically encouraged to examine these posts in detail, as it is impossible to do justice to the arguments in those articles in the scope of this post.
(We will sum up and analyze some of the key aspects of this burgeoning line of inquiry in a future article.)
This post is directly supplemental to the previous article, so we will begin by quoting directly from the first part of this presentation.
“Suffice it to say, for our purposes here, that Snowden’s activities are–quite obviously–an intelligence operation directed at Barack Obama’s administration at one level and the United States and U.K. at another.
We note that the individuals and institutions involved with Snowden, as well as Fast Eddie himself, track back to the far right and elements and individuals involved with the Underground Reich. Again, PLEASE examine the previous posts on the subject, as there is no way to flesh out this line of inquiry in this post.
We have noted that Fast Eddie may be doubling for BND or some other element of German intelligence, possibly having been recruited when posted by CIA to Geneva, Switzerland. Snowden may also be acting at the instruction of elements in U.S.–perhaps Michael Morrell, perhaps an Underground Reich faction of NSA, perhaps elements from the Peter Thiel milieu.
A possibility that bears examination in the context of German and/or Underground Reich economic warfare against the U.S. involves L’Affaire Snowden as a gambit to undermine American internet dominance.”
In this regard we note that a Forbes article says that Snowden’s ride is indeed bad for U.S. internet business. (See text excerpt below.)
Comments by Neelie Kroes, Vice President of the European Commission, augur poorly for U.S. internet companies. (See text excerpt below.)
In a clarification of information presented in a Reuters story about Snowden by his “leaking journalist” of choice, Glenn Greenwald, Snowden stated that his purpose was to alert people that the software they are using is also spying on them. (See text excerpt below.)
Saint Edward’s professions of concern for the well-being of Mr. and Ms. Everyman cannot be taken at face value. Snowden is a fascist and cynic of the first order. His Presidential candidate of choice in 2012 was Ron Paul.
He is NOT doing this for altruistic reasons. He doesn’t have an altruistic bone in his body.
Snowden DOES have some serious nerve, however. Snowden has compared himself to someone acting in accordance with the Nuremberg statutes, comparing the NSA surveillance program to Nazi genocide. Aside from the obvious absurdity of this claim, it is grotesque for someone who supported a Nazi (Ron Paul) for President to be holding forth in this manner.
Such historical revisionism also plays to the advantage of Germany.
Not incidentally, Snowden’s Presidential candidate of choice–Ron Paul–has opined that we were on the wrong side in World War II. (See text excerpt below.)
Snowden’s partners in the WikiLeaks/Pirate Bay/Pirate Party milieu are birds of the same feather, with Julian Assange’s Holocaust-denying crony Joran Jermas (aka “Israel Shamir”) having guided WikiLeaks to the PRQ servers funded by fascist moneybags Carl Lundstrom. Like Paul and Jermas, Lundstrom is part of a political milieu that includes David Duke.
In a speculative note, it is interesting and possibly significant that Glenn Greenwald started a law firm that represented neo-Nazis. (See text excerpts below.)
In our next post on the subject, we will review and ruminate about this complex, vitally important inquiry.
In comments to this post, Spitfirelist contributor “Pterrafractyl” has noted some important points:
- In the first of those comments, he notes that Sweden’s Pirate Bay milieu continues to evolve and, in partnership with other European “Pirate outlets, appears to be angling to corral web business that will afford anonymity/security.
- Another comment notes that an organization in Sweden has won legal recognition of file sharing as a religious activity, which should facilitate the pirating of copyrighted video and music files.
- A third comment notes how the Pirate Party–linked to the far-right, Nazi-linked WikiLeaks outfit–is deeply involved with the effort on behalf of Snowden, et al in the European Parliament. As we have surmised, the efforts by EU (read “Germany”) to alter European data protection regulations may lead to “a trade war.”
- In an additional comment, “Pterrafractyl” informs us that two encrypted e‑mail companies, one of them used by Snowden, have been closed, apparently due to government pressure. Let’s see how this plays into the hands of the GOP with their battle cry about Obama championing “big, repressive government” etc. etc. etc. It will be interesting to see how young, idealistic techies buy into this. It will also be interesting to see if the big Silicon Valley tech companies send their considerable financial resources to back the GOP.
- Another of Pterrafractyl’s comments informs us that the prognostications in this post are coming to pass. It turns out the German companies are offering encrypted e‑mail services, seeking–obviously–to undermine U.S. internet business. What is unclear is if the BND will be able to decipher the messages–a safe bet will be that they possess such capability. Whether they would share such information with NSA is unclear.
- Pterrafractyl also notes that the Chaos Computer Club in Germany opines that the encryption technology is outdated, permitting up-to-date interests to access the messages.
EXCERPT: Reddit general manager Erik Martin noticed something strange when he was at a conference in Latvia last month. There was a contest held, with a prize of one year’s free web-hosting for a small business — a decent value, a fairly normal prize. But when it came time to award it, nobody in the audience wanted it. It was from a U.S.-based company, and this was just days after Edward Snowden’s landmark leaks about the NSA’s PRISM program hit the press. With that hanging over them, people at the conference would have preferred to go with a different country.
There’s a general sense of unease about the U.S. government’s relationship to the internet right now, and it’s starting to affect how international consumers choose their web services. I talked with Christian Dawson, head of hosting company Servint and co-founder of the Internet Infrastructure Coalition, a group founded to inform the public and lawmakers about, as he puts it, how the internet works. He says that while it’s hard to put together any true statistics at this point, he’s heard a lot of anecdotal data about U.S.-based hosting and other web service companies losing business to overseas competitors since the Snowden leaks.
“We have a great fear that we are going to see a big exodus for US-based businesses over the information that’s been leaked,in part because there’s this tremendous lack of transparency, and lack of transparency is the absolute worst thing for these situations,” he says. “We’re competing on a global scale, and if people don’t have a reason to trust the host they’re using, they can go elsewhere in just a couple of clicks.”
Dawson stresses that the problem isn’t just with the program itself. He has little comment on what the government should or should not be doing to protect the country from terrorism. His problem is with the lack of open discussion surrounding these efforts. The U.S. may not have the most restrictive or the most repressive policies surrounding internet surveillance, but U.S. news is big news all over the world. According to Dawson, fear of the Patriot Act had already been dogging U.S. hosting companies for years, and the Snowden leaks just added fuel to the fire. In a global market as fluid as something like web hosting, a lot of consumers would just as soon prefer to take their business elsewhere.
“The lack of clear, intelligent language has put us at a tremendous marketing disadvantage,” he says. “These days, we’re finding that significant portion of our clientele values privacy. It is not simply the customer who has something to hide.” . . .
EXCERPT: . . . .But the Snowden revelations also have implications for you and me.
They tell us, for example, that no US-based internet company can be trusted to protect our privacy or data. The fact is that Google, Facebook, Yahoo, Amazon, Apple and Microsoft are all integral components of the US cyber-surveillance system. Nothing, but nothing, that is stored in their “cloud” services can be guaranteed to be safe from surveillance or from illicit downloading by employees of the consultancies employed by the NSA. That means that if you’re thinking of outsourcing your troublesome IT operations to, say, Google or Microsoft, then think again.
And if you think that that sounds like the paranoid fantasising of a newspaper columnist, then consider what Neelie Kroes, vice-president of the European Commission, had to say on the matter recently. “If businesses or governments think they might be spied on,” she said, “they will have less reason to trust the cloud, and it will be cloud providers who ultimately miss out. Why would you pay someone else to hold your commercial or other secrets, if you suspect or know they are being shared against your wishes? Front or back door – it doesn’t matter – any smart person doesn’t want the information shared at all. Customers will act rationally and providers will miss out on a great opportunity.” . . .
“About the Reuters Article” by Glenn Greenwald; The Guardian; 7/13/2013.
EXCERPT: . . . .A: Snowden has enough information to cause more damage to the US government in a minute alone than anyone else has ever had in the history of the United States. But that’s not his goal. [His] objective is to expose software that people around the world use without knowing what they are exposing themselves without consciously agreeing to surrender their rights to privacy. [He] has a huge number of documents that would be very harmful to the US government if they were made public. . . .
EXCERPT: Along the way, Snowden framed his situation in striking new terms, citing the 1945–1946 Nuremberg trials that convicted several Nazi leaders of crimes against humanity. Here’s how he put it:
I believe in the principle declared at Nuremberg in 1945: “Individuals have international duties which transcend the national obligations of obedience. Therefore individual citizens have the duty to violate domestic laws to prevent crimes against peace and humanity from occurring.”
Accordingly, I did what I believed right and began a campaign to correct this wrongdoing. I did not seek to enrich myself. I did not seek to sell US secrets. I did not partner with any foreign government to guarantee my safety. Instead, I took what I knew to the public, so what affects all of us can be discussed by all of us in the light of day, and I asked the world for justice. . . .
Ron Paul: America’s Most Dangerous Nazi by Alan J. Weberman, p. 67.
EXCERPT: . . . . Paul betrayed his Nazism when he told Congress that America fought on the wrong side during World War II: “Any academic discussion questioning the wisdom of our policies surrounding World War II is met with shrill accusations of anti-Semitism and Nazi lover. No one is ever even permitted, without derision by the media, the university intellectuals and the politicians, to ask why the United States allied itself with the murdering Soviets and then turned over Eastern Europe to them while ushering in a 45-year saber-rattling, dangerous Cold War period.” America should have aligned itself with the Axis Powers? That is the implication here. [26]. . .
“How Glenn Greenwald Became Glenn Greenwald” by Jessica Testa; buzzfeed.com; 6/26/2013.
EXCERPT: . . . . Greenwald also spent roughly five years defending the First Amendment rights of neo-Nazis, including Matthew Hale, the “Pontifex Maximus” of the Illinois church formerly known as the World Church of the Creator, one of whose disciples went on a murderous spree in 1999.
“I almost always did it pro bono,” Greenwald said. “I was interested in defending political principles that I believed in. I didn’t even care about making money anymore.” . . .
“Glenn Greenwald: Life Beyond Borders” by Fred Bernstein; out.com; 4/18/2011.
EXCERPT: . . . .By the third year of law school, he was working for a large law firm. But realizing that representing Goldman Sachs would have destroyed him psychologically, he set up his own firm, which represented several neo-Nazis and other unpopular clients.
When he and his former boyfriend, Werner Achatz, an Austrian-born lawyer, tried to lease an apartment, they were told they couldn’t aggregate their incomes. “They said they only do that for married couples,” Greenwald recalls. “We said we were a married couple.” When that didn’t fly, Greenwald became his own lawyer, suing the landlord for sexual orientation and marital status discrimination.
By 2004 he had tired of litigating, and was also at the end of an 11-year relationship with Achatz. He rented an apartment in Rio de Janeiro, expecting to remain there for two months. Emotionally drained, he says, “The last thing I was looking for was another relationship. Especially in Rio.” But on his first day on the beach, he met Miranda. . . .
Regarding the possibility of web services shifting towards placing like Sweden, here’s a story from 2010 about Sweden’s Pirate Party starting its own Pirate-friendly ISP that gets around law-enforcement data-sharing laws by never actually storing client information:
Note that the EU Court of Justice fined Sweden this year for its delays in implementing the EU data retention law so it sounds like the Pirate Party’s plans for providing anonymous wwebhosting services is in some sort of legal limbo. Although PRQ, the web hosting company that used to host The far-right owned Pirate Bay and is currently one of the Wikileaks servers, was raided and temporarily shut own last October by Sweden’s police. The reasons for the raid are unclear:
Also note that, while PRQ claimed that it was no longer hosting The Pirate Bay at the time of the raid last October, observers were puzzled when they noticed that both PRQ and The Pirate Bay went down at the same time as the raid and then both came online again at the same time a couple of days later:
So yeah, while we don’t know who is currently hosting The Pirate Bay (sure we don’t *wink* *wink*), it appears that The Pirate Bay and PRQ are able to operate pretty much legally. And it also appears that Sweden’s Pirate Party ISP, Serious Tubes, might have been warranting a raid too:
A week after the threat of the lawsuit, the Swedish Pirate Party stopped hosting The Pirate Bay and has reportedly left Sweden altogether, with servers remaining in places like Norway and Spain:
And as we saw with The Pirate Bay’s conversion to the “Hydra Bay”, there’s no shortage of locals in the EU that will provide similar services. So it will be very interesting to how successful the Pirate Party movement will be at leveraging the fallout of the Snowden affair. It will also be interesting to see if Sweden’s cash-for-anonymity web-hosting sector experiences a surge in business this year. The partnering of businesses concerned over loss of intellectual property with web-hosting companies owned by people ideologically opposed to patent law should be a sight to see. Strange days.
Move over Scientology...:
We learning more about that those thousands of documents Snowden took are part of a “dead-man’s switch” that Snowden is using to protect himself against “extremely rogue behavior” by the US. Greenwald describes the documents as containing detailed “blueprints” on how the NSA’s eavesdropping systems work that would enable readers to evade detection or replicate it. According to Greenwald, Snowden doesn’t want the documents released. So it seems like a reasonable assumption that WikiLeaks and who knows who else has an NSA how-to manual that might be released at some point in the future or kept for private consumption:
Here’s an article on the impact the Snowden affair is having on WikiLeaks’s finances. So far, it hasn’t been especially helpful:
While it’s looking like Snowden could stay in Russia for the foreseeable future, former GOP Senator Gordon Humphrey is publicly recommending that Sweden grant Snowden asylum:
You have to wonder if the anonymous third parties (presumably WikiLeaks) that are currently holding the document treasure-trove as part of Snowden’s “Dead Man’s Switch” threat also share his willingness to be tortured before they’d be willing to divulge the secrets of the NSA. Probably not:
It looks like we can add “cracking all the publicly released ‘uncrackable’ encrypted blackmail files” to the list of future fun things to do with quantum computing.
Snowden to testify before the EU?
It’s also worth noting that Jan Albrecht, the German Green Party MEP with close ties to the Pirate Pary that is leading the calls for an investigation into NSA surveillance, has been sprearheading the effort for a major EU overhaul in EU online data protection laws that Albrecht said would primarily impact the webservices and business models of US firms operating in the EU. And US firms have reportedly engaged in an unprecedented lobbying effort to stop the changes. Those digital privacy reform efforts, and the Pirate Party in general, could get a big boost form the Snowden Affair:
Hezbollah is now offering Snowden their “protection”.
This is via Google Translate:
http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF‑8&u=http%3A%2F%2Fwww.almadapress.com%2Far%2Fnews%2F15208%2F%25D9%2583%25D8%25AA%25D8%25A7%25D8%25A6%25D8%25A8-%25D8%25AD%25D8%25B2%25D8%25A8-%25D8%25A7%25D9%2584%25D9%2584%25D9%2587-%25D8%25AA%25D8%25A8%25D8%25AF%25D9%258A-%25D8%25A7%25D8%25B3%25D8%25AA%25D8%25B9%25D8%25AF%25D8%25A7%25D8%25AF%25D8%25A7%25D9%2587%25D8%25A7-%25D9%2584%25D8%25AD%25D9%2585%25D8%25A7
Hezbollah Brigades show Astaadadaha to protect U.S. intelligence officer accused of “spying”
Author: MJM
Editor: HA, HH
17/07/2013 11:53
Range Press / Baghdad
She Book Hezbollah in Iraq, on Wednesday, its willingness to protect intelligence officer, American Yalsabak Edward Snowden accused of spying and harboring of “claws” CIA, and with an eye to the possibility of investment information possessed to protect the “oppressed”, while indicated that they have the expertise that make It’s hard to be exposed to Snowden.
Said a senior leader of (the Islamic Resistance) Hezbollah Brigades in Iraq, in an interview with the official website of the battalions and seen (range Press), he said that “Hezbollah Brigades is ready to house the former intelligence officer Edward Snowden in more than one place offers a safe living and can also be interact with him for investment information to protect the largest number of the oppressed. ”
The leader, who did not mention the site name to “they can protect Snowden from the claws of the CIA and the large experience that we have all of these methods, as well as power resources in our hands as it is known to make it difficult for Americans to hurt him a in Knva”.
And Edward Snowden is an American and contractor technical and client employee of the Central Intelligence Agency, he worked as a contractor with the National Security Agency before leaking details of the spying program secret classified as highly confidential to the press in June 2013, and June 21, 2013 sent him the U.S. judiciary formally charged with espionage and theft of property government and the transfer of information relating to national defense without permission and the deliberate transfer of classified intelligence information to a person not allowed him to see it.
Snowden was able to escape to Russia, before they ask the United States on 24 June 2013, from Russia delivered Snowden, while Russia replied simply stop and will follow them to Cuba Valocuador which granted him political asylum on its territory. On 16 July 2013, Snowden made a formal request for temporary asylum in Russia.
Another shoe about to drop?
Perhaps?
More on the potential fallout from the Snowden affair: instead of shutting down mass surveillance, now governments around the world might demand increased access to the collected data instead:
Former Senator and Snowden-pen pal Gordon Humphreys reiterated his call for Sweden to grant Snowen asylum while also expressing a new fear that Snowden’s claims of being torture-proof don’t translate into being drug-proof:
The encrypted email service used by Snowden, Lavabit, suddenly shut down today. The owner cited congressional pressure that he wasn’t legally allowed to discuss. He’s now recommended that people avoid using services with physical ties to the US with their private data:
Silent Circle, another company offering email encryption services, also shut down their email services today, citing “the writing on the wall”.
Adding to the preemptive closure of two US-based email encryption services, we now are learning that Germany’s three largest email providers are going to start encrypting all emails to address growing privacy concerns. It sounds like it will include encrypting the indentities of the sender and receiver so presumably meta-data collection will also be prevented by anyone sniffing the traffic over the internet. The traffic wars are heating up:
Note that it’s not clear from the announcement if German security services will have the encryption keys. It also sounds like the encyption will initially only be secure between customes of Deutsche Telekom’s and United Internet’s webservices. Maybe limiting it to just those services might be due to the technical requirements of encrypting even the meta-data (where both the sender and receiver need to be using the same encryption/decryption methods)? That make explain a technical need for the talk of in the above article about ‘widening the alliance’:
It’ll be interesting to see how much the German public end up trusting the BND not to hack their emails and send it to the NSA anyways following this latest move.
More on the new German email encryption scheme: According to Germany’s Chaos Computer Club it’s a publicity stunt using outdated encryption technology:
@Pterrafractyl–
Several things to consider: suppose the BND DOESN’T share info with NSA?
Note that Deutsche Telekom is the parent company of T‑Mobile and (now)Metro PCS.
I wonder if American mobile users will gravitate toward the German services?
It’s a safe bet that BND will be accessing all information on those networks.
Also: it’ll be interesting to see if BND tries to supplant GCHQ as the primary NSA foreign partner.
In addition, watch the Muslim Brotherhood front heating up, with Obama on both sides of “the Deutsche Coin Flip”–heads they win, tails you lose. (“COINtelpro?”)
Wonder if they will use German-based ops against U.S. in the future.
Also: in response to GOP moves against Russia–note how they are playing the Egypt card.
Obama stuck on the Arab Spring pitchfork, as I predicted.
It also brings to mind Grover Norquist’s prediction that the GOP would make it impossible to govern as a Democrat.
They are doing a pretty good job.
Best,
Dave
@Dave: It’s also interesting to note that there the reporting on this so far leaves a major question largely unanswered or unasked: how much access do the foreign intelligence agencies that are supplying the NSA with data have to the giant pool of raw intelligence? The global spying system described is constantly framed as as system where the NSA sweeps up data from all over the world, analyzes it, and then doles out terror tips or whatever to its allies. But early on it was reported that GSHQ received access to the unedited metadata on phone records back in 2010, and we know about the “Five Eyes” agreement where the US, the UK, Canada, New Zealand, and Australia have all had an agreement for the free-flow of intelligence between nations since 1943. So do similar secret arrangements exist between the “Five Eyes” and Germany and France?
And what about Brazil? It was reported that the NSA and CIA had listening stations in Brazil until at least 2002, a “privilege” shared by just 15 other countries around the world. And at this point we simply don’t know if such facility still exists. Merkel’s government has already been caught blatanly lying to German voters about her knowledge of these programs. So are we supposed to actually believe the Brazillian government when they deny a similar relationship exists today? It’s not a trivial question because any global solution to the issue of privacy rights is going to be dependent on governments all over the world that have so far demonstrated a capacity to just keep lying to their citizens on this topic. The issue of trust has been central to the response to this scandal, but it’s curiously focused only on trusting US agencies and corporations instead of the inability to trust virtually all governments and major corporations around the planet.
The other reason it’s kind of vital that we learn more about the nature of the data sharing arrangement is because of what John Loftus revealed decades ago about the manner in which foreign intelligence sharing arrangements are used by governments to spy on their own citizens. When we learned that the NSA has been secretly sending tips to the DEA for use in routine drug busts and that other US agencies are clamoring for access to that data it raises the question of whether or not the BND or GSHQ are also sending tips on US citizens to US federal agencies and vice versa because, hey, why not? Nothing we’ve seen suggests that it couldn’t or wouldn’t be the case.
So it’ll be interesting to see if are we going to learn more about those data-sharing agreements. Right now there are a lot of interests that would love to keep this as an “NSA vs the world” situation INSTEAD of the “NSA as the coordinator of a global spying ring” situation that it really appears to be.
With the Snowden affair taking continuing to hold the center stage in Germany’s elections, we’re now seeing Merkel’s administration call for negotiations this month with the US for creating new rules that restrict the US and Germany from spying on each other:
Note that the reference to three to four attacks per week against German soldiers in Afghanistan that are averted each week that Merkel’s spokesman referred to was, somewhat ironically, probably a reference to the same PRISM system Merkel’s government denied knowing anything about. Ok, maybe it wasn’t the same PRISM program. Maybe it was the other PRISM program. Or the other other PRISM program:
Something to think about regarding the BND’s claims that it’s only allowed by law to scan up to 20% of Germany internet traffic and only currently scanning 5%: 5% is much more than is necessary:
@Pterrafractyl–
The “One PRISM” vs. “Two PRISMs” debate couldn’t be easier to resolve.
Take it from someone based in the Silicon Valley for decades–had ANY company come up with a software performing functions similar or identical to PRISM and TRIED to use the same name, they would have been sued from hell to breakfast.
The big tech firms are NOTHING if not litigious and Peter Thiel has plenty of money!
Best,
Dave
And with the closing of Lavabit and Silent Circle, Kim Dotcom just declared that his company is developing ‘cutting edge’ encryption software for the purpose of offering completely encrypted emails services where even the data on the email server is encrypted. It sounds like this will necessarily involve the development of newer, faster encryption/decryption technology to allow the email server to keep everything encrypted while still provided real-time functionality like looking through your inbox.
In related news, Mr. Dotcom might need to start investing in quantum computing research:
http://www.spiegel.de/international/business/germany-declares-bitcoins-to-be-a-unit-of-account-a-917525.html
‘Private Money’: Bitcoins Gain Ground in Germany
What exactly is the legal status of bitcoins?
Bitcoins have rapidly gained popularity, but what is the currency’s legal status? This week Germany revealed that it sees the virtual payment method as “private money,” but its tax status remains unclear.
The value of bitcoins has become widely accepted. The virtual, Internet-based currency can currently be traded in for about $120 each, according to Mt. Gox, a popular bitcoin exchange.
But now they are also gaining a legal footing — at least in Germany, where the Finance Ministry has declared bitcoins to be a “unit of account.” The designation stops well short of treating bitcoins as currency or even e‑money, but it does classify the virtual currency as a kind of “private money.” This comes as a result of a parliamentary inquiry made by Frank Schäffler, a member of the Bundestag with the business-friendly Free Democrats, Chancellor Angela Merkel’s junior coalition partners.
Bitcoins have been in the headlines recently due to the massive volatility of their exchange rate. When they were first introduced in 2009, they were essentially worthless, trading for just five cents per bitcoin in July 2010. This year, however, they rocketed up in value to a high of $230 per bitcoin in April before plunging back to their current rate of exchange. Some have attributed the rise to concerns about the ongoing euro crisis in Europe.
Governments have been uncertain of how to approach the bitcoin, though. In late July, Thailand banned bitcoin transactions out of concern that the state could lose control over money flow. In the US, meanwhile, state officials in New York and federal officials recently opened an investigation into the virtual currency. The aim, according to a letter sent to financial regulators by the Senate Committee on Homeland Security, was to determine the “threats and risks related to virtual currency.” New York state has subpoenaed 22 companies involved with bitcoin transactions, according to The New York Times.
A First Step
The implications of Germany’s new designation remain uncertain. In June, the Finance Ministry declared that profits on bitcoin investments are tax free after a year. But now it appears that some transactions involving bitcoins could be taxed after all. A tax advisor told the Berlin-based daily Die Welt that VAT would only have to be paid by people who use bitcoins commercially.
Oliver Flaskämper, head of the leading German bitcoin market, bitcoin.de, told Die Welt that “from our perspective, our customers are engaged in private portfolio management from a tax point of few.” That would mean that transactions would be tax free.
Still, the question of how bitcoins should be taxed remains pertinent. Some 7,500 shops and restaurants worldwide accept payment by bitcoin, according to the site Bitpay.com. Ultimately, rules will have to be established for taxing transactions with those places of business. Germany has taken a first step.
In one of the more confusing NSA-related stories to come out in the last week, there was report in the German tabloid Zeit about German government documents warning Federal agencies to avoid using Windows 8 over concerns that the “Trusted Platform Module” (TPM) chip found in Windows machines might provide the NSA backdoor access to the machine. The German government then issued a statement denying that such a recommendation was ever made. Microsoft, of course, denies such a backdoor exists at all:
Something to keep in mind regarding the sudden interest by Russia and Germany in hidden microchip backdoors is how long it’s taken for this to become a perceived national security issue. For instance, the Pentagon was investigating Chinese kill switches getting embedded into chips used for the US military back in 2008 and Germany and Russia are the second and third biggest arms exporters in the world and their defense industries presumably suffer from very similar risks all these years:
This is a hot issue now so it will be interesting to see how the global semiconductor industry changes in coming years. The global trade in weapons or other products that could be considered to have national security implications is rather massive. Something like a modern computer can be constructed from components designed and built in different nations all over the world so if there’s a breakdown in transnational trust (where a nation can only trust domestic manufacturers for high-tech national security-related products) we might end up seeing a strange breakdown in global high-tech supply chains. For instance, if governments suddenly decided that foreign TPM chips manufacturers coudn’t be trusted with any machines runnging Windows 8, the already ailing Germany microchip sector might take an even bigger hit to global demand:
If the challenges of trustworthy technology in the age of the internet seem overwhelming just wait until the biometric revolution.