Chinese and Russian espionage? (Updated)

In the news today,  intelligence officials seem to have found evidence of Chinese/Russians mapping US infrastructure:

“The Chinese have attempted to map our infrastructure, such as the electrical grid,” a senior intelligence official told the Journal. “So have the Russians.”

The espionage appeared pervasive across the United States and does not target a particular company or region, said a former Department of Homeland Security official.

“There are intrusions, and they are growing,” the former official told the paper, referring to electrical systems. “There were a lot last year.”

The administration of U.S. President Barack Obama was not immediately available for comment on the newspaper report.

Authorities investigating the intrusions have found software tools left behind that could be used to destroy infrastructure components, the senior intelligence official said. He added, “If we go to war with them, they will try to turn them on.”

Officials said water, sewage and other infrastructure systems also were at risk.

Protecting the electrical grid and other infrastructure is a key part of the Obama administration’s cybersecurity review, which is to be completed next week.

The sophistication of the U.S. intrusions, which extend beyond electric to other key infrastructure systems, suggests that China and Russia are mainly responsible, according to intelligence officials and cybersecurity specialists…..”

More here at Reuters.

My Comment

I am not sure what these “software tools” left behind  were……and where they were left behind.

Since Homeland Security is a pervasive umbrella bureaucracy, it could refer to any part of government at any level.

Now, which companies are responsible for Homeland Security software and intelligence gathering?  See below for information on CACI.

Notice also that intelligence is no longer afraid of any terrorists being behind this threat. They wouldn’t have the sophistication, say officials.

Oh really? But we’ve been orange and red-alerted for the past eight years about just that threat, haven’t we? And somehow, these same not competent terrorists managed to pull off 9-11, didn’t they? And elude  the mighty forces of the US for years….despite our  dominance in global electronic surveillance technology…

But now, suddenly, officials know right off the bat that terrorist couldn’t be behind this.  Anyone else find that reasoning a bit suspect?

Please note, the officials who gave this information are not named in the piece.  Would help if we could find out who these unnamed intelligence people and cyber-security experts are.


One of the most important, if not the most important, company involved in Homeland Security is CACI, a company I wrote about in LOE (it’s in the section that was cut out).

CACI’s chairman, Jack London, recently (March 24, 2009) addressed a symposium on asymmetric threats to US and Global Security in Arlington Virginia. His remarks included the following useful reference:

“Harvard professor, Joseph Nye, the man behind the term “soft power,” along with former deputy Secretary of State – and former CACI board member – Richard Armitage, told the Senate Foreign Relations Committee last year: “Smart Power is a framework for guiding the development of an integrated strategy, resource base and tool kit to achieve U.S. objectives, drawing on both hard and soft power.”

From the section cut out of LOE (this part completed around early 2005)

“We can monitor the entire globe,” says CACI’s CEO Jack London (21)

The depth of this penetration of government is not limited to telecommunications and intelligence. CACI also handles the Federal Aviation Administration’s global administrative-data network and runs a system for the Justice Department that lets lawyers pick through millions of documents for what they need. In July 2004 Transportation Services Administration, the villain of the pat-down searches abuse and an agency of Homeland Security, also became a new client. CACI’s  “Knowledge Management” systems capture and convert data to digital format, publish on the internet, manage the Freedom of Information Act process and declassification, electronic information distribution, and related services for the entire Department of Justice (including the FBI, Tax, Drug Enforcement, and Immigration & Naturalization) Defense, Transportation, DHS Customs and Border Protection, and the Environmental Protection Agency, computer and interrogation services to the Defense Department, and other agencies. (22)

CACI is thus at the heart not only of military intelligence, but of internal security, internet technology, air transportation, and law enforcement at home. It encompasses the most vital powers of the state in an octopus-like penetration of populations abroad and at home.

The nerve center of this octopus coincides with power centers and power brokers in Tel Aviv and Washington….”

See also, this piece from December 2005, on CACI’s involvement in disinformation and what’s been called Defense Support for Public Diplomacy, a blending of diplomacy, information ops and psyops.

Now, from my previous posts, you know I believe that our dear leaders are cornered and that the end game is about to roll out. What could that be? Keep temporizing while grabbing more power, use the power to hide how much has been lost and by whom, whistle cheerfully and twist as many arms as possible to keep the vaudeville act going, meanwhile start fanning public anger against everyone possible, from random rich people, CEO’s, bonus recipients, immigrants, China, Russia, terrorists, socialists, communists, anyone in fact other than the specific group of financiers, regulators and politicians whose finger prints are on this mess.  At some point, should things get bad enough, war  will be declared. For further support for this take, check Jake Towne’s very detailed analysis of why the stimulus money just isn’t enough to do anything (with which I agree, in the sense that this isn’t a problem that can be fixed…however, I disagree that it won’t cause inflation – it will, eventually) and why war might be the avenue out.

5 thoughts on “Chinese and Russian espionage? (Updated)

  1. Hi, Lila:
    I wouldn’t worry if I were you. The Intelligence is in shambles all over the world. Unfortunately, that also includes the West. It’s easier to be caught online if you’re a spy than the other way around. Most of it ends up in being a game of chance.
    I’m reading your (and William B., of course) latest book and it seems to me we think alike in many ways. So, I’ll be coming back to your site often. My best regards to your partner too. I’ve also read Empire of Debt and loved it. Both feel free to contact me by e-mail anytime.
    Regards: D.

  2. Hi Dionysia –

    Thanks for your comments and appreciation. Feel free to stop by anytime.

    Just to let you know, I don’t work for my co-author and only worked with him from November 2005 – October 2007 as an editor, writer, and investment/finance researcher. I left once the book was released in 2007.

    I can’t endorse either their political positions (outside the book) or their other activities.

    Lila R

  3. The Chinese scare me. They have installed sophisticated bugs in credit card reading machines that steal information and transmit it to servers in China and Pakistan. They hacked into computers of defense personnel of several countries. Their spyware actually turns on the microphone and webcam. And now they are hacking into US electricity grids.

    I guess it’s payback for borrowing so heavily from them and spitting in their faces by debasing the currency.

  4. Yes – no denying that the Chinese have their own agendas and won’t take kindly to having their dollar supplies eroded.

    But that’s why I worry about Homeland Security’s contractors with strong affiliations to Israel.
    Israel is an ally, so perhaps that is OK.

    But what kind of ally, when its zealots have a rather obvious disdain for the religious beliefs, convictions and way of life of vast numbers of ordinary Americans. Sorry to be so blunt.

    If you are rich enough to be making money out of war, you are rich enough to live where it won’t affect you….
    Takes away any incentive to prevent war

  5. We totally underestimate the Ruskies, intelligence no exception, we only look to our belly button and many times the danger comes from them. They’re our adversaries, when not enemies, and nothing changed since the Cold War, because they’re all over the place. When an American is in trouble and a Ruskie looks friendly it’s like Greece and Troy – there’s a trojan horse on it. Remember Virgil: Beware of the Greeks bearing gifts.

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