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Another Attack, On Law Firm Suing China

An anonymous reader writes "In the wake of the attack on Google, another company claims to be the victim of a similar attack. Gipson Hoffman & Pancione is a Los Angeles law firm whose client, CYBERsitter, is suing the government of China and several Chinese companies for using their intellectual property in the infamous Green Dam censorship filter. According to the firm, they have been targeted by a spear phishing attack from China." Relatedly, smartaleckkill writes with news that the US state department is to formally protest to China over the alleged cyber-attacks on Google, "likely early next week."

131 comments

  1. As far as lawsuits go by timbudtwo · · Score: 0, Interesting

    I am actually glad to see that lawsuits over software patents aren't being used for silly purposes to remove competition. Cyber sitter could have put together this lawsuit long ago, but they go in on the heels of the google hacking fiasco they got caught in.

    1. Re:As far as lawsuits go by Jah-Wren+Ryel · · Score: 5, Informative

      I am actually glad to see that lawsuits over software patents aren't being used for silly purposes to remove competition. Cyber sitter could have put together this lawsuit long ago, but they go in on the heels of the google hacking fiasco they got caught in.

      What do software patents have to do with anything? This is a copyright infringement and trade secret misappropriation lawsuit and it was filed BEFORE Google went public with their issues.

      --
      When information is power, privacy is freedom.
    2. Re:As far as lawsuits go by SimonTheSoundMan · · Score: 1

      Unsure where patents come in to this. If there was a software patent being copied, which there isn't, it would not be valid in the EU, let alone China.

    3. Re:As far as lawsuits go by Anonymous Coward · · Score: 0

      heil president weev

  2. That's right.... by Itninja · · Score: 3, Funny

    ...we are gonna open a big ol' can o' formal protest on all y'all! Take that beeotch!

    --
    I judt got a nre Kinesis keybiartf so please excusr ant egregiou typos.
    1. Re:That's right.... by Anonymous Coward · · Score: 5, Insightful

      Yeah. We have seen how much china cares about UN's protests. Why would they care the slightest when only a single nation of UN protests? A nation that is very much in debt to them at that. Not only does USA have a massive debt but even the soldiers' helmets have been made in China... As long as USA needs more money from there each year, all these protests are simply for the show and both nations know it.

    2. Re:That's right.... by Anonymous Coward · · Score: 0

      Lately you've been using the "can" jokes too much, it was funny at first, but now... just can it, ok?

    3. Re:That's right.... by Anonymous Coward · · Score: 2, Informative

      I've always wondered why people think the US is so indebted to China. Of the US debt, only 28% is held by foreigners, and only 23% of that is held by the Chinese (so 6% total). It's about $800 Billion, which is quit a bit, but only about 5% of the US's yearly GDP.

      Beyond that, why does it even matter? China would be hurt far, far worse than the US if there was a political breakdown between the two. 40% of the Chinese GDP comes from exports, so they'd suffer tremendously. The US imports the equivalent of about 2% of its GDP from China, so it'd about be like a mild recession. Probably not even that if Japan and Taiwan increased their exports.

      Obviously, China has one heck of an incentive to keep the US happy. Especially since there seems to be a growing anti-China sentiment in the US.

    4. Re:That's right.... by Anonymous Coward · · Score: 0

      Probably because everything we buy is made there (or somewhere else). What exactly is it that you think we will use to "buy" other essential raw materials in the future? Do you not understand that "money" is merely a mechanism to transact trade without having to trade objects directly. Exactly what object do we still make in this country that others might want? The only thing I can think of is Intel processors. Those AMD ones come from Germany now. I suspect some fab equip from Applied is still US made. Good luck feeding & "oiling" all of america with a couple of items.

    5. Re:That's right.... by Solandri · · Score: 3, Informative

      China only holds about $800 billion in U.S. Treasury Securities. U.S. GDP was about $14.2 trillion in 2008. U.S.imports from China were $338 billion in 2008. Exports around $70 billion, so trade with China accounted for 2.9% of U.S. GDP. If China were to exercise the "nuclear option" and suddenly dump all the U.S. treasury securities it owns onto the market, and stopped all trade with the U.S., its financial impact would be about 8.5% of U.S. GDP.

      China's 2008 GDP was about $4.4 trillion. Their trade with the U.S.at $338+$70 billion accounted for 9.3% of their GDP. So if China were to dump all the U.S. securities and stop all trade with the U.S., they would be hurting their economy more than they would be hurting the U.S. economy.

      China needs the U.S. more than the U.S. needs China.

    6. Re:That's right.... by jandersen · · Score: 1

      We have seen how much china cares about UN's protests

      About as much as anybody else, I'd say. Hasn't the US regularly ignored this kind of things in the past? The UN is not a global government or a police force, it is only a forum where national governments can go and rant about things; 'cause that's got to be better than starting a war.

  3. Just wait until the Chinese take over ECHELON by obarthelemy · · Score: 1

    the ensuing protests will be worth a laugh or two.

    --
    The Cloud - because you don't care if your apps and data are up in the air.
    1. Re:Just wait until the Chinese take over ECHELON by Anonymous Coward · · Score: 0

      Will they use the acquired information only for their national interest, or will they provide information to wikileaks to proof that the US themselves are using echelon not just to detect terrorists and for military purposes but also for industrial espionage? Only if applicable of course, and we all know that a the US' alignment is "lawful good" and thus would never do such a thing.

    2. Re:Just wait until the Chinese take over ECHELON by AHuxley · · Score: 1, Interesting

      The NSA does not run MS, they just know how to use it ;)
      Lots of countries run mini Echelon like systems.
      "The message, a fax sent by satellite transmission from Egypt's foreign ministry to its embassy in London, was intercepted on November 15 by Swiss intelligence, the newspaper reported. The Swiss defence ministry said it was investigating the leak of the document."
      fromhttp://www.guardian.co.uk/world/2006/jan/10/usa.mainsection
      China has in inward looking system, built by US/EU corps and telcos.
      What would an Echelon show? A huge worldwide capture system, beaming down to a few US bases for sorting.
      The resulting stream of wanted info is encrypted and sent back to the US after heavy sorting.
      The NSA sucks in all, the swallow is the hidden art.
      Best to look for UFO's via MS and perl on 56k modems.
      That seems to have been more creative than any sat/golfball trace.

      --
      Domestic spying is now "Benign Information Gathering"
    3. Re:Just wait until the Chinese take over ECHELON by Anonymous Coward · · Score: 0

      The NSA sucks in all, the swallow is the hidden art.

      The NSA is such a fscking joke after all the evidence of their intelligence failures leading up to 09/11/2001 and afterwards. You make the NSA sound like a porn star going down on the information pipes and swallowing hard.

    4. Re:Just wait until the Chinese take over ECHELON by AHuxley · · Score: 1

      What intelligence failures? They trained an army to take on the Soviets and win in the 1980s.
      They helped Iran and Iraq wipe each other out in the 1980's.
      They helped Bosnia and Kosovo gain freedom.
      They propped up dictators, arms dealers, private armies and drug dealers in the name of 'freedom' around the world.
      They got sweeping new internal and external powers after 9/11/2001.
      Great new offices and local legal telco support in the fly over states.
      So really its been win, win, win, decade in decade out, budget is up, Church report like laws are down, MS is in use around the world, chip speed and storage needs are been met, more and more telcos are touching US optical networks.
      The only real fscking joke the NSA faces is their budget, the people sniffing around the Fed.
      Off the books black operations could be exposed.

      --
      Domestic spying is now "Benign Information Gathering"
    5. Re:Just wait until the Chinese take over ECHELON by Anonymous Coward · · Score: 0

      Wasn't most of that done by the CIA?

    6. Re:Just wait until the Chinese take over ECHELON by DJCacophony · · Score: 1

      You're confusing the NSA with the CIA. The NSA does SIGINT, the CIA does HUMINT and subversive operations.

      --
      Slow Down, Cowboy! It's been 60 minutes since you last successfully posted a comment.
    7. Re:Just wait until the Chinese take over ECHELON by AHuxley · · Score: 1

      Everybody likes to make phone calls and use computers...
      To find, track and build a circle of world wide friends ... you need SIGINT.

      --
      Domestic spying is now "Benign Information Gathering"
  4. um... by TakeoffZebra · · Score: 3, Interesting

    what the hell does China care about a protest in California?

    1. Re:um... by Anonymous Coward · · Score: 0

      ... or even care about a protest in Beijing, where the government will just squash a few dozen protesters to make examples of and warn the rest of the population?

    2. Re:um... by Anonymous Coward · · Score: 0

      So obviously, they doing for show to US citizens.

    3. Re:um... by NonSequor · · Score: 4, Interesting

      It's probably these guys.

      Kind of a weird phenomenon. Makes me wonder if youthful rebellion manifests itself in a society like that.

      --
      My only political goal is to see to it that no political party achieves its goals.
    4. Re:um... by NonSequor · · Score: 1

      It's probably these guys.

      Kind of a weird phenomenon. Makes me wonder if youthful rebellion manifests itself oddly in a society like that.

      oops

      --
      My only political goal is to see to it that no political party achieves its goals.
    5. Re:um... by CodeBuster · · Score: 1

      Makes me wonder if youthful rebellion manifests itself in a society like that.

      When it does, the Chinese government simply machine guns the trouble makers and the rest fall into line. After all, they have millions of other youths (life is cheap in China) who will tow the party line; especially after the trouble makers, who conveniently gathered themselves together at the same place and time for a protest, are shot.

    6. Re:um... by NonSequor · · Score: 1

      Makes me wonder if youthful rebellion manifests itself in a society like that.

      When it does, the Chinese government simply machine guns the trouble makers and the rest fall into line. After all, they have millions of other youths (life is cheap in China) who will tow the party line; especially after the trouble makers, who conveniently gathered themselves together at the same place and time for a protest, are shot.

      I agree although I had meant to make a slightly different point. In the US, young people get angry and they tend to express it mostly with things like petty vandalism. It's a nuisance, but it isn't a huge problem. In China, there's this huge social pressure to not step out of line like that, so I'm wondering if ordinary youthful anger gets channeled into the more socially accepted statism. They feel the need to be aggressive toward something so they accuse their state of being too soft and lash out at countries they view as enemies.

      --
      My only political goal is to see to it that no political party achieves its goals.
  5. Technobabble has gone too far by Anonymous Coward · · Score: 0

    "Spear phishing"

    Really? Really?

    1. Re:Technobabble has gone too far by Anonymous Coward · · Score: 4, Interesting

      It gets worse. According to the linked Wikipedia article:

      "Several recent phishing attacks have been directed specifically at senior executives and other high profile targets within businesses, and the term whaling has been coined for these kinds of attacks."

      Presumably said senior executives tend to be fat and blubbery.

    2. Re:Technobabble has gone too far by Anonymous Coward · · Score: 0

      Might also come partly from casino lingo for a high-roller

    3. Re:Technobabble has gone too far by Arthur+Grumbine · · Score: 1

      It gets worse. According to the linked Wikipedia article:

      "Several recent phishing attacks have been directed specifically at senior executives and other high profile targets within businesses, and the term whaling has been coined for these kinds of attacks."

      Presumably said senior executives tend to be fat and blubbery.

      Also interesting (from your Wikipedia article), is a new phishing technique aimed at academia (presumably targeting those of higher intelligence). This new "dolphin phishing" along with all these "whaling" attempts appear to be originating solely from IP addresses in Japan.

      --
      Now that I think about it, I'm pretty sure everything I just said is completely wrong.
    4. Re:Technobabble has gone too far by Anonymous Coward · · Score: 0

      I'd imagine it's a play on the alternate name for a High Roller...

    5. Re:Technobabble has gone too far by Anonymous Coward · · Score: 0

      "Several recent phishing attacks have been directed specifically at senior executives and other high profile targets within businesses, and the term whaling has been coined for these kinds of attacks."

      Presumably said senior executives tend to be fat and blubbery.

      The real questions are... Are they an endangered species, is this being carried out in a scientific manner, and do they taste good?

    6. Re:Technobabble has gone too far by Anonymous Coward · · Score: 0
  6. Another Attack, On Law Firm Suing China by Anonymous Coward · · Score: 0

    In the wake of the attack on Google, another company claims to be the victim of a similar attack. Gipson Hoffman & Pancione is a Los Angeles law firm whose client, CYBERsitter is suing the government of China

    Is, this some sort of, competition for most, confusing use of commas?

    ,

    1. Re:Another Attack, On Law Firm Suing China by selven · · Score: 1

      ,No

    2. Re:Another Attack, On Law Firm Suing China by steeviant · · Score: 1

      Captain Kirk, is that you?

  7. Re:Just business as usual. by VortexCortex · · Score: 1

    Whoops, wrong article. My multiple tab browsing privileges should have been revoked a long time ago.

  8. Tread softly by Dunbal · · Score: 0, Troll

    China now owns the US dollar, thanks to the Fed. But don't take my word for it. If I were the US I would invest in some lube and bend over quietly.

    --
    Seven puppies were harmed during the making of this post.
    1. Re:Tread softly by AHuxley · · Score: 1, Interesting

      The CIA could be shipping a digital "Lenin" into China.
      Google is the sealed train.
      What the CIA funds and sells to the world, they can also use to inject NGO's, cults, porn, MS based services, democracy, encryption and other harmful ideas.
      As for "origin of their traffic" who knows what they where fishing for. America is smart at tracing the net, You can send your ip's and data stash around the web a few times.
      Unless you pick it up in some huge pipe equiped EU/US low security walk in office next day with a drive and clip board, someone will keep on tracking.
      Someone wanted something bad or wanted the access to google backend in a more 24/7 way, like some of the US telcos and their outsourced billing systems 'gift' to distant parts of the world.
      Someone was not smart and slipped up.
      Google is not MS with best effort, shared time visa cents in the $ opps we did not backup adims, someone trained the google staff well.
      My feel is MS and yahoo rolled over long ago.
      Google had something neat going on, someone wanted a back door and learned not to mess with a NSA/CIA funded US telco front.

      --
      Domestic spying is now "Benign Information Gathering"
    2. Re:Tread softly by TapeCutter · · Score: 3, Informative

      ."China now owns the US dollar

      You don't need to understand anything about the global economy to realise that's bullshit. All you need to do is ask yourself if China could gain an advantage by using it's holdings to manipulate the value of the dollar then why has it not done so already? Surely your not suggesting that China is currently propping up the US out of the goodness of it's heart?

      The fact is that the Chinese and US economys are like two drunks leaning on each other, if one stumbles they both fall. I put it to you that your link is little more than an advert for something called "China Investment Corp".

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    3. Re:Tread softly by ifwm · · Score: 0

      "If I were the US I would invest in some lube and bend over quietly."

      Then let's thank whatever we thanks in circumstances like this that an ignorant punk bitch like you isn't the US.

    4. Re:Tread softly by Anonymous Coward · · Score: 0

      Hmm I'm not sure I get it, got a car analogy for me?

  9. Stop complaining if u want the big piece of pie. by Anonymous Coward · · Score: 0

    Dumb US firms! You know better to work with the Chinese Communists before you went over there and do business!

    Stop complaining if you want that 1.5 billion piece of pie.

  10. "spear phishing"? by Anonymous Coward · · Score: 3, Insightful

    What, is "targeted" too many letters for you?

  11. New law firm business model by mbstone · · Score: 1, Funny

    1. Set up honeypot and bogus law firm.
    2. File big lawsuit against China.
    3. Log sources and vectors during ensuing cyberattack.
    4. Sell results to DoD.
    5. Profit!!

  12. export 'em by mt1955 · · Score: 5, Funny

    Q: what do you call 80 tons of lawyers on a slow boat to China?

    A: a good start.

    Seriously though, if we really could figure out to export lawyers; it would balance the trade deficit, and just think what it would do for the quality of life domestically.

    1. Re:export 'em by Lloyd_Bryant · · Score: 1

      Seriously though, if we really could figure out to export lawyers; it would balance the trade deficit, and just think what it would do for the quality of life domestically.

      Sorry, but I'm pretty sure that would constitute an "Act of War".

      Besides - you really think someone would be stupid enough to *pay* us for them?

      --
      Don't tell me to get a life. I had one once. It sucked.
    2. Re:export 'em by cheros · · Score: 3, Funny

      "Besides - you really think someone would be stupid enough to *pay* us for them?"

      Dunno. How well do they burn? :-)

      --
      Insert .sig here. Send no money now. Owner may sue, contents will settle. Batteries not included.
    3. Re:export 'em by the+eric+conspiracy · · Score: 1

      We could pay them to take 'em and still come out ahead on net value.

    4. Re:export 'em by Anonymous Coward · · Score: 0

      Dunno. How well do they burn? :-)

      Hell is full of 'em and it's still burning mighty well.

    5. Re:export 'em by lag10 · · Score: 1

      Q: what do you call 80 tons of lawyers on a slow boat to China?

      A: a good start.

      Seriously though, if we really could figure out to export lawyers; it would balance the trade deficit, and just think what it would do for the quality of life domestically.

      Wouldn't the idea of exporting lawyers for the purpose of balancing the trade deficit imply that such lawyers actually have value?

    6. Re:export 'em by Anonymous Coward · · Score: 0

      Pretty well, I saw some green farms that burned manure for energy, so ...

  13. Re:Just business as usual. by mister_playboy · · Score: 1

    I try to keep the JavaScript horror confined to one tab at a time, so I never understood how people could comment in the wrong article.

    Thanks for clearing that up. :)

    --
    Do what thou wilt shall be the whole of the Law ::: Love is the law, love under will
  14. Propaganda Alert! by kiwioddBall · · Score: 0, Offtopic

    Don't be sucked in by the Propaganda!

    Why is this being treated like it is a big event? This sort of thing has been going on for years, probably more commonly from the US toward China.. How about some balanced reporting? Don't clog up Slashdot every time something technology related appears on the net!

    1. Re:Propaganda Alert! by jlar · · Score: 1, Insightful

      And because it has been going on for years it is okay? No, USA and allies needs to retaliate and take the battle to China. Or to put it plainly wage a cyberwar against China until they understand that this kind of behaviour is not tolerable. Otherwise we are just asking for more.

      And of course USA and allies need to be careful to contain the conflict. And no, I am no war monger. But I do not believe that weakness is the path to lasting peace.

    2. Re:Propaganda Alert! by Anonymous Coward · · Score: 0

      Are you a Chinese "Agent Mike"?
      http://wikiality.wikia.com/Agent_Mike

    3. Re:Propaganda Alert! by Anonymous Coward · · Score: 0

      Of course it's not news that this goes on, but that's not the story here--the story is that google went public with it, and that the administration called it--publicly--as 'more than a commercial dispute'.

    4. Re:Propaganda Alert! by funwithBSD · · Score: 1

      If it was so common from US to China, it would have been nice if they blocked the import of poisoned pet food and Drywall made of industrial waste. (If we are not, it would be the first good use of spying!)

      Got give it to the Chinese some credit. When they found milk was tainted, they executed the guy in charge of food safety.

      Wish we could do that with a few incompetent bureaucrats here. Or at least they could sit on death row for the rest of their lives.

      --
      Never answer an anonymous letter. - Yogi Berra
    5. Re:Propaganda Alert! by s1lverl0rd · · Score: 0

      I for one do not believe war is the path to lasting peace.

  15. Sigh. This again by Sycraft-fu · · Score: 5, Insightful

    This "Oh China owns all the US's debt, the US has to do whatever they want!!" stuff is silly. It shows a lack of understanding of how money and debt work at an international level.

    So, what China owns are US securities. These are promises to pay a certain amount of US dollars on a certain date from the US government. How long that time frame is depends on the type of security. Also if they pay interest periodically or if it is a lump sum also depends. The treasury sells securities as short as a few days, to as long as 30 years. Now there's a couple important things to understand about these securities:

    1) They are payable in US dollars. What that means is that they are susceptible to devaluation by large amounts of inflation. If they US wanted to it could simply print the money to pay them and devalue the dollar. That has consequences for the US, but also for the holders of the securities. If the dollars your securities are paid in suddenly worth 10% of what they were when you bought them, your investment goes in the crapper.

    2) The securities are the equivalents of IOUs. There's no international agency that enforces their repayment or worth. The US just says that their full faith and credit backs them. This means the US could default on payment. That of course has serious consequences for the US, but again for the holder. Suddenly your notes are worth nothing. Countries have defaulted before, though it is rare (the US has never defaulted on payment).

    What this means is that you China can't simply call the debt due. They can't say "We want all our money now." It is paid out when it is paid out. Also, taking any drastic action with regards to their notes could lead to the notes losing a lot or all of their value. For example they could potentially try and dump the notes, sell them to other people. Doing so would undermine fail in US securities and make it extremely difficult for the US to sell new ones. However, it would also mean that because people were so worried, China would have to take a massive loss on the notes they sell.

    Further, something like that might even lead to a situation where they lose all their value and the US keeps its credit. Remember the credit of the US is all in what people believe. So suppose the US convinces its allies, particularly the European and Asian nations, that China is waging economic war. As such the US has to null all of China's treasury holdings. Not to worry, the US will still honour notes issued to all other countries, just not China. They pull that off, suddenly China is left with a bunch of worthless notes (well nothing actually, they are just accounting entries at the Department of Treasury) and they are in a world of hurt.

    What we really have with the US and China, and indeed much of the global economy, is an intertwined system of economic mutually assured destruction. China could create problems for the US economy because of the large amount of US debt they hold, but to do so would create massive problems for their economy.

    It is not at all a situation like a person faces, where you owe money in a currency you don't control, and they can come and take the items secured by the loan (like your house) if you fail to pay. Treasury notes are paid in US dollars, whatever a US dollar happens to be worth at that time, and only have value because the US says they do, there's no assets that can be seized in the event of non-payment.

    1. Re:Sigh. This again by Anonymous Coward · · Score: 0

      So what you're saying is... I should buy Yuan?

    2. Re:Sigh. This again by Anonymous Coward · · Score: 0

      See, this is, what I don't really understand: Why do other countries sell what they produce on credit to the US, where they might never see their money ?
      Does this system work this way that some people run away with the cash and the usual worker and tax payer gets cheated, because they supply other countries like the US with stuff, who then never pay for it ? The system seems somehow broken. I'd rather drive a car myself than selling it to someone, who wants to pay it with MY OWN credit card. lol. Guess the big guys somehow get rich by it on both sides, but not the little guys...
      Maybe someone can explain this system to me.

    3. Re:Sigh. This again by TapeCutter · · Score: 0, Offtopic

      Great post! I would just like to add that Point #1 has already happened to some extent.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    4. Re:Sigh. This again by Anonymous Coward · · Score: 3, Insightful

      Your post fails to mention one important aspect of the in debt to China argument, which is that the US runs at a deficit and needs to continuously issue securities to cover the shortfall. These securities are purchased by China.

      If China stopped purchasing these securities then there would be a serious financial issue for the US. So the issue of being in debt to China is not due to China owing many securities already, it is with requiring them to continue purchasing more.

    5. Re:Sigh. This again by wtbname · · Score: 1

      So we might be forced to balance our budget?

      Wow, you are right, that would be terrible.

    6. Re:Sigh. This again by Anonymous Coward · · Score: 0

      It is economic war. They are here to destroy us without firing a shot.

      Even now, they are pushing nations to count on their money as the common denominator because their argument is that we owe them so much. But we owe them so much because they keep their money tied to the dollar (7 RMB to 1 dollar) when economist say that it should be 1 for 1 or possible lower. If they get oil to switch to them, the dollar will plummet fast. And finally, china will switch from fixing their money to the dollar to the Euro and start with destroying them.

    7. Re:Sigh. This again by 140Mandak262Jamuna · · Score: 3, Insightful

      To do that other countries must trust China. Despite all the hatred for the Great Satan vocalized by the Arab nations and leaders, they know USA has played by a strict set of rules and has never defaulted on its loans. The track record of China is short, and its political leaders and its system does not have the credibility yet. With its huge army and an overland connection to their oil fields to China, these oil produces are scared of China. They won't switch to renmembi anytime soon. Euro? May be. There is a growing islamic population in Europe and they might think, demographically they might be in charge of Euro in some 30 years.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    8. Re:Sigh. This again by Eponymous+Coward · · Score: 1

      Read the parent again. Other countries aren't selling what they produce on credit to the US. Chinese firms are selling goods they produce to US firms (and sometimes to the government). Often on short term credit terms, but that's pretty normal.

      China-the-country is buying securities (IOU's) from the US. They are investing here because, like the parent said, the US has never defaulted. Using history as a guide, it's about the safest bet out there.

      I think you might be thinking of trade deficits and balance of trade issues.

    9. Re:Sigh. This again by Anonymous Coward · · Score: 0

      Well put.

    10. Re:Sigh. This again by m0s3m8n · · Score: 4, Insightful

      Owe the back $100,000 and the Bank OWNS YOU owe the bank $8,000,000,000,000 and YOU OWN THE BANK.

      --
      Conservative, mod down for violating /. political norms.
    11. Re:Sigh. This again by Spatial · · Score: 1

      Pretty sure he addressed your analogy in the final paragraph. Valid in dealing with people. Not valid in dealing with countries.

    12. Re:Sigh. This again by Anonymous Coward · · Score: 0

      So we might be forced to balance our budget?

      Wow, you are right, that would be terrible.

      Except the probability of that ever happening is zero.

    13. Re:Sigh. This again by Ihmhi · · Score: 2, Insightful

      I'm sure if China didn't buy them, someone else would.

      I wonder, are securities issued in a limited lot or something? Like, "500 30-year securities at $10,000 apiece are available, first come, first served" or can someone just buy 'em anytime they want?

      If it's the former situation, then if China doesn't snap 'em up I'm sure someone else will. If it's the latter situation, then I suppose we'd have to tighten our belts (perhaps around our necks..).

    14. Re:Sigh. This again by QuoteMstr · · Score: 4, Informative

      Yes, T-bills are auctioned off in lots. That's how their price is set, actually: the US government actions off a batch of notes to paid off at a particular price after a particular time, (say, $1,000,000 after 30 years). Investors bid against each other, and the one willing to pay the highest price for the note wins.

      Of course, the price paid for a treasury ends up being slightly below the face value of the note. That's mathematically equivalent to the government paying interest on the loan when it's repaid. (Of course, individual investors usually don't hold treasuries to term themselves, but instead sell them to others.)

      That's where the interest rate on the US debt comes from: the higher the demand for US treasury securities, the higher the price, and the lower the government's effective interest rate.

      Since US treasuries are considered the safest securities around, because the US has never defaulted, demand for treasuries is usually high, and especially high in times of economic sluggishness like the present. During the worst of the financial crisis, the prices paid for treasuries exceeded their face value, which meant investors were literally paying the US government to hold onto their money.

      All this means that the US government can borrow very cheaply and in massive quantities. If China were to stop participating in treasury auctions, there are plenty of investors who would sake up the slack. The only effect would be that due to a reduction in competition, the bid price would be slightly lower, which would correspond to a slightly higher interest rate.

      No big deal.

    15. Re:Sigh. This again by Johnny+Mnemonic · · Score: 3, Interesting

      It's worth pointing out specifically that our debt wih China is one of the largest weapons in our peace arsenal. If China takes a warlike action (ie invades Taiwan) one of the first things we would do is cancel our debt obligations.

      It is at least partially due to this fear that China has not yet declared open hostilities. When they start selling that debt, or stop taking on new debt, watch out.

      I do not think that the current issue with Google rises to the level that we could do that and preserve our credibility. But it does start painting a picture, and combined with the jailing of those steel execs last summer its not going in a positive direction.

      I'd love to know the other 20 companies that were hacked at the same time as Google. We'd have a clearer knowledge of China's intentions and the threat she poses. But you can believe that the State Department knows.

      When does China come up for the MFN vote again? Expect to hear this then again, and maybe more details too.

      --

      --
      $tar -xvf .sig.tar
    16. Re:Sigh. This again by Courageous · · Score: 1

      I'm not a Constitutional scholar by any means, but I am curious how you think the U.S. could unilaterally cancel a debt, considering Amendment 14, Article 4.

      Joe.

    17. Re:Sigh. This again by winwar · · Score: 1

      "...but I am curious how you think the U.S. could unilaterally cancel a debt, considering Amendment 14, Article 4."

      For the same reason we could ignore any other part of the Constitution: Because we WANT to. Ultimately the Constitution (or any other set of laws/values/etc) has power because we give it power. If we are not willing to enforce the provisions in the document it doesn't matter what they are, it becomes just a piece of paper. Two data points (among many): 1. The Soviet Constitution provided far more rights to its citizens than did the US Constitution on paper. The reality was quite different. 2. Andrew Jackson violated an 1831 Supreme Court ruling. He correctly noted that the court had no means of enforcing the ruling. Congress certainly wasn't going to impeach him.

      More to your point, based on recent legal "reasoning" by the executive branch they could say: We are at war, as commander in chief, I am authorized to cancel such debt. I doubt Congress would challenge the act since they seem to lack a spine. And the Courts would probably consider it a political question (we don't like controversy or work). It's only illegal if a court says so. And we all know how this country never does anything illegal.

    18. Re:Sigh. This again by Sycraft-fu · · Score: 1

      No, the US would have multiple options. It could exercise one of them, or more likely a combination of them:

      1) As I mentioned, they can simply print money to cover their obligations. They devalue their currency and cover their debt that way, since their debt is all payable in US dollars.

      2) As others mentioned, they increase the interest rates on their securities. For some this is done directly (the rate is set and you buy them at that rate) for others it is by auction and so happens automatically. The US is still able to borrow money, they simply pay more interest for it.

      3) They raise taxes. By increasing their income, they can deal with their obligations.

      4) They cut spending. Spend less on other areas, have more to cover your obligations.

      Any one of these four could be done, or more likely a combination of all of them.

    19. Re:Sigh. This again by bartwol · · Score: 1

      While some of the points are informative, your question (and intimation) is a good one. While it is plausible that the U.S. can summon the political will and make some excuse to "cancel" its debt to China, there's a foolishly idealistic assumption that we could do so while containing the devaluation to only "Chinese-held" securities. There are a lot of reasons why that is implausible. First, I defy people to sufficiently define a "China-owned T-Bill" such that, when said T-Bill is submitted for redemption, we declare it worthless (hint: what if said T-Bill is presented for redemption by a British bank? remember...these are globally marketable securities). Second, the sanctity of debt and capital have historically transcended politics, i.e. IOU means "I OWE YOU", not "I OWE YOU EXCEPT ______ (fill in the blank)". Posters here are foolish to think we can move from such sanctity of debt to sanctity "excepting China", tell our European "partners" (who are also "partners" with China) that this is a China-only issue, and to believe that Europeans (or anybody else) are foolish enough to ignore that this shift rips the underpinnings of international finance and raises serious questions as to the trustworthiness of U.S. debt commitments. All parties should properly infer that today the U.S. comes to screw China, and tomorrow it comes to screw whom?

      On can do no screwing without one getting screwed. THAT is the force and effect of global finance today.

    20. Re:Sigh. This again by jandersen · · Score: 1

      There is a growing islamic population in Europe and they might think, demographically they might be in charge of Euro in some 30 years

      Good ol' islamophobia, here we go again.

      That stupid lie, "the islamists will be in charge in 30 years" gets rolled again and again; that doesn't make it more true. It's no more valid than "the commies are out to get us" or "the Catholics breed like rats and will be in charge in, what was it - 30 years". To hell with that.

      America plays by the rules, mostly, although there have been some serious breaches of trust from time to time, not least over the Iraq war. China is playing by the rules too and we have no reason to expect that they won't keep doing it; none except that "they are yellow", or are they "red"? Perhaps that makes them orange, then, but whichever colour, they seem to be no worse than the rest of the world.

    21. Re:Sigh. This again by Courageous · · Score: 1

      I suspect that in a dispute over such things, the US Supreme Court would have original jurisdiction.

      In the matter of a war, all bets are off, because there is no way SCOTUS would hear a case from an active enemy, and as the winner we would dictate terms as pert the armistice, and as the loser, vice versa.

      If the matter weren't a war, SCOTUS might not hear just based on their whim.

    22. Re:Sigh. This again by ifwm · · Score: 1

      Hey, you're that loser who was completely wrong about Article 14, 4 and got pissed at me when I pointed out your ignorance.

      Why are you at it again when it's been proven to you that you don't know a fucking thing about the Constitution and cry like a bitch when it's pointed out to you?

      I mean seriously, I've proven yourself a total ignoramus on the subject, why are you embarrassing yourself by pretending your opinion on the subject isn't worthless?

    23. Re:Sigh. This again by Ihmhi · · Score: 1

      Thank you. That's actually quite relieving to hear. I was never really worried about China bankrupting us, but I was rather worried about hearing people keep repeating that same inane argument. Many thanks for the knowledge!

    24. Re:Sigh. This again by ibsteve2u · · Score: 1

      Investors bid against each other

      Thank heavens for the taxpayers' sakes that - given the historical lack of examples of collusion or insider trading among those who dabble in high finance in America - it is safe to assume the word "against", eh?

      --
      Orwell: "In a Time of Universal Deceit, telling the Truth is a Revolutionary Act"
    25. Re:Sigh. This again by Anonymous Coward · · Score: 0

      > They are investing here because, like the parent said, the US has never defaulted.
      > Using history as a guide, it's about the safest bet out there.

      US debt has never been this big though.  It's freaking huge.  I'm waiting for our country to collapse... with all the debts and interests to pay, how can we still afford things like education and health care?

      By borrowing more?

      That's destructive at personal level and business level, so why would it work for the government?

    26. Re:Sigh. This again by Anonymous Coward · · Score: 0

      > If China takes a warlike action (ie invades Taiwan) one of the first things
      > we would do is cancel our debt obligations.

      I don't think so.  Nobody would take US Bonds anymore if we wouldn't pay our debts.  It'd raise interests considerably.  Under current circumstances, we *need* to be able to borrow money cheaply.

    27. Re:Sigh. This again by Eponymous+Coward · · Score: 1

      Well, the government can pretty much just flush away any debts by printing money. As someone who owns a house, a little bit of hyperinflation wouldn't necessarily be a bad thing. They could instantly flush away 90 percent of everybody's debts by just printing 10x as much money.

      It would wreak havoc in the short term, but it isn't so clear what the longer term effects would be.

  16. The US State Department will fix it all for us! by gavron · · Score: 1
    I'm so excited the US DoS is going to protest. That's gotta go down in history as the most effective...

    Who am I kidding.

    E

  17. Can Airbus Sue the US now? by Anonymous Coward · · Score: 2, Interesting

    Can Airbus Sue the US now? After all, if hacking into communications is now a lawsuit offence that can be persued against a government, the US interception of Airbus negotiations to land a sale so that this could be leaked to Boeing and then let Boeing win the contract should likewise be open to lawsuit.

    Will the US agree?

    Or is it only bad when China does it?

    1. Re:Can Airbus Sue the US now? by Anonymous Coward · · Score: 0

      Please give us evidence of such.

    2. Re:Can Airbus Sue the US now? by Svartalf · · Score: 1

      How about this little investigation into the subject by the EU Parliment?

      It happens quite a bit, apparently, if you read into the middle or so of the document.

      --
      I am not merely a "consumer" or a "taxpayer". I am a Citizen of the State of Texas
    3. Re:Can Airbus Sue the US now? by WindBourne · · Score: 1

      Having the ability to do so, is not the same thing as having proof that it occurred. If I own a Smith Wesson 9mm pistol, or a parker 12 gauge shotgun, or even a J.A. Henkel butcher knife, does that mean that I have murder somebody? Nope.

      --
      I prefer the "u" in honour as it seems to be missing these days.
  18. How the mighty have fallen by EvilDrMike · · Score: 0

    I remember the good old days. America did not complain and write letters or stamp feet. I sent solders planes and bombs. Ah well I guess the recession really has hit the US hard.

    -EDM

    For the humor impaired the above is not serious. It was just my first thought when I saw the title.

  19. China seems to have a serious issue with..... by 3seas · · Score: 1

    .... the communication media of the internet.

    I discovered I had a whole and large website installed within my own web site a couple years ago and from this I was able to determine that many otehr sites including many found on sourceforge to as well have had such hidden websites installed.

    I was able to determine it was from china that this was happening.

    Many of these hidden site installations are probably still existing today. I'd advize everyone with a site, individual to corporate to government to do a full inventory of their site directory and files.

    What does that have to do with this story?

    Its really quite simple, China persist with efforts to overrun and control the internet.
    Do I believe its the people of china doing this or organized effort supported by their government?

    The general population has their lives to live and could care less about such things as internet control, as is the case with over 99% of the worlds population of near 7 billion people.

    So how is it that such a fraction of 1% of the population has such pain in the ass influence in screwing the rest of us up?

    So here is the solution to the china effort to over run the internet and its open communication media, which BTW is needed in order to put out of business the fraction of 1% PITA power/control mongers.

    Identify them down to the organizations and individuals, publish this information and turn their own practice on them, make their efforts backfire, censor them via public listing and filtering (we have spam and virus filters, we now need filters for these). Wide scope Public Exposure is a wonderful thing and is what the internet can achieve.

  20. THe real problem is what China is doing .... by WindBourne · · Score: 4, Interesting

    with the money. THey invest it in Western companies, but they are using multiple proxies. What is interesting is that a number of the investment companies are actually quiet fronts for China money. Then the VCs INSIST that the production moves to china saying that it is the lowest costs. It is thought that many more of the investment companies are owned by CHina, even though they are suppose to declare it as such.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  21. What do you expect when you give china source code by Anonymous Coward · · Score: 3, Informative

    Are all of these attacks really a surprise? Remember that Microsoft gave China access to the Windows source code years ago. http://solarislackware.blogspot.com/2010/01/china-microsoft-and-why-you-should-be.html

  22. Not a serious security problem. by Anonymous Coward · · Score: 0

    These kind of attacks usually are only deployed against one country (namely, the US).

    It's not like every country is being attacked by every other spying party.

    As this affects just one country, it cannot be considered a general breach.

    Windblows and Internets Exploder continue to be the dominant players.

    Thank you.

    @ ... free sarcasm sign (inverted)

    1. Re:Not a serious security problem. by WindBourne · · Score: 2, Interesting

      Actually, it is not. China is after every western country. Many a company and countries have gripped that they are seeing massive hits on their systems by CHina. And all are being spied on.

      --
      I prefer the "u" in honour as it seems to be missing these days.
  23. I don't think there was anything unusual by EvilRyry · · Score: 4, Interesting

    "There are attacks every day. I don't think there was anything unusual," Mr Ballmer added.

    Seriously, Ballmer? Have you read the part where the Chinese government has been labelled as the attacker of over 30 international companies by Verisign? Not just some guy in China, but the Chinese government. I would consider that pretty damn unusual.

  24. This is cyber terrorism. by Anonymous Coward · · Score: 0

    This is cyber terrorism.

  25. Pointless by Anonymous Coward · · Score: 0

    We love been able to buy all sorts of widgets for cheap because they were built in China. We don't care if the workers are being explored, if the companies are polluting, if their government is a vicious dictatorship with a poor human rights record. We don't care about any of that. If we did, we would have already embargoed China. Don't we have an embargo on Cuba? But no... we don't do that. Just keep those cheap goods coming and we will be happy. We have blood in our hands as well.

  26. Why is this different than military attack? by HockeyPuck · · Score: 1

    If China invaded Hawaii, California or Alaska, but did not kill any US citizens we would treat this very differently as the Fed would take this very seriously rather than saying, Yeah, cyber attacks, they happen every day, nobody got hurt etc etc.. Maybe if the Fed realized that when China steals intellectual property, it might not hurt the US today, but it enables China to get a free pass on research for which we had to invest our own time and money into.

    During WWII there were many Germans immigrants that didn't support the Third Reich and many Japanese immigrants that didn't support what Japan was doing in the Pacific. I wish the US Gov't would grow a pair instead of saying, "Stop or I'll say stop again!" mentality. When did the gov't become a bunch of pussies when it came down to this? The US employs millions of people associated with the protection of property, both physical and intellectual. Yet this is like the equivalent of some guy ignoring it when his boss gropes his wife because his boss signs his paychecks.

     

    1. Re:Why is this different than military attack? by Courageous · · Score: 2, Insightful

      What precisely do propose we actually do about it?

      Spying has not traditionally been accepted as casus belli in the historical record, and there's the little matter of the fact that escalated military engagements with China are just a bad idea.

      C//

    2. Re:Why is this different than military attack? by kevinNCSU · · Score: 2, Insightful

      Because looking a nineteen year old kid in the eye and asking him to go kill and die for his country because some malicious packets got through a routers firewall at a private company and now China might be able build a better search engine is different then asking him to do it because foreigners with guns just landed on the beach where he played as a kid and claimed it as their own. Any more ridiculous questions?

    3. Re:Why is this different than military attack? by Anonymous Coward · · Score: 0

      "Spying has not traditionally been accepted as casus belli in the historical record"

      Jesus, how many things can you be wrong about?

      It's like you're intentionally attempting to prove you're an idiot by posting as much wrong bullshit as possible.

      Have you considered suicide? You should, the world won't be losing anything.

  27. Played by WHAT rules??? by Anonymous Coward · · Score: 0

    Played by WHAT rules??? "they know USA has played by a strict set of rules", until they don't like playing by those rules.

    See, for example, early copyright (Dickens), Canadian Softwoods and more recently, home vs foreign betting.

    THIS is why the US won't get anywhere with a UN or WTO censure: the US is in as deep or even deeper water with world trade and the United Nations than China is.

    1. Re:Played by WHAT rules??? by 140Mandak262Jamuna · · Score: 1

      The Arab nationas bought US Bonds. And they provided value and stability. In the Bond market US has played by a very strict set of rules, and no matter what the political turmoil or whatever is going on, US Treasury has been very fair to them. The ministers are actually shocked that they could mouth off USA so badly and have very tough acrimonious talks with the ambassadors and play hard ball. But the interest payments on the coupons arrived on the dot. Never any doubt or linkage between the two. This is the kind of credibility that is very difficult to build in the international arena. There is not a single non Western government that is trusted by the Arabs, Indians, Chinese, Communist bloc, and the third world.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    2. Re:Played by WHAT rules??? by KudyardRipling · · Score: 0

      Why has the USA never defaulted on its obligations? Here is the answer; the Internal Revenue Service are the thugs that they ar[Pwwwrt!THuD!]
      NO CARRIER

      --
      Submission as evidence constitutes plaintiff and/or prosecutorial misconduct.
  28. Why on a slow boat? by WindBourne · · Score: 1

    I want them there. Fast. Now.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  29. Give China a computer.... by vettemph · · Score: 1

    and they will send you a spam.

    Give China your entire manufacturing base
    and they will crush your entire empty shell of a country.

    --
    The government which is strong enough to protect you from everything is strong enough to take everything from you.
  30. Letters of Marque by R2.0 · · Score: 1

    It's time for Congress to exercise one of their little known powers and issue a letter of marque to Google, authorizing them to take action against Chinese nationals via the internet. We are effectively in a state of conflict with China, with them attacking US interests via "private" proxies. Google and other organizations could be allowed to exercise some self help and go on the offensive.

    And it would make "Talk like a Pirate Day" really mean something.

    --
    "As God is my witness, I thought turkeys could fly." A. Carlson
  31. Suing a *country*?? by Hurricane78 · · Score: 1

    Are they drunk? How do you sue a country??

    Which common law do they think both entities (China and CyberSitter) exist in and are forced to adhere to?
    I don’t see any multinational organization with the power of enforcing shit on China.
    But I can see China’s agents shooting the CyberSitter boss in the head on his next voyage to some small/shady country.

    Dumb move. It’s like taunting the USA to “come get me, suckers”! Basically, you’re fucked. ;)

    There should be a Bad Idea Jeans advertisement with that story. :D

    --
    Any sufficiently advanced intelligence is indistinguishable from stupidity.
  32. You seem to have missed this part by ifwm · · Score: 0

    "But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States"

    That answers your question clearly and totally, yet you seem to have missed it while simultaneously citing it.

    Or, if you don't like a direct and obvious answer

    "The Congress shall have power to enforce, by appropriate legislation, the provisions of this article."

    Congress could cancel it.

    You're right, you aren't a constitutional scholar.

    1. Re:You seem to have missed this part by billstewart · · Score: 1

      No - that part means that the US and the southern states have no requirements to pay back Confederate debts, so anybody who lent money to the Confederacy loses. Congress still isn't allowed to cancel debts made by the US itself.

      And if it did, because we didn't have enough tax base to pay the government's debts, fat chance on borrowing more money from the still-solvent parts of the world. Unfortunately, given the spending habits of the US government from Reagan on, borrowing money instead of saving it while spending the Social Security surplus when the Baby Boom and post-boom birthrate declines are setting us up for a workers-to-retirees ratio that can't sustain itself, we may get to find that out a few years after I retire.

      --

      Bill Stewart
      New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
    2. Re:You seem to have missed this part by Courageous · · Score: 1

      Your response was pretty retarded, equating the definitions of insurrection or rebellion with something other than the matter being discussed. To answer your taunt, it would appear that my lack of constitutional scholarship is topped by your lack of reading comprehension. I guess expecting intelligent conversation on Slash was a bit delusional on my part.

    3. Re:You seem to have missed this part by ifwm · · Score: 1

      "Your response was pretty retarded"

      And yet, you did nothing to prove it wrong or refute it apart form call names.

      More to the point, you illiterate cunt, you ignored the part about congress, which is totally unrelated to YOUR taunt and COMPLETELY answers your question.

      YOU'RE WRONG, eat my asshole while you cry about it bitch.

    4. Re:You seem to have missed this part by Courageous · · Score: 1

      From your over the top response of crawling over all my threads and spamming with profanity, this apparently stung you pretty deep. You would be able to easily avoid the emotional pain you just experienced by avoiding the taunt in the first place, you know. Are you aware how your lack of self-control is resulting in self disgrace?

  33. US alignment by billstewart · · Score: 1

    Actually, the Bush/Cheney administration were "chaotic evil"... just because they talked about "the Rule of Law" in accents resembling Bismark talking about "Blood and Iron" doesn't mean they intended it to apply to themselves.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  34. China or Slashdot by Dan541 · · Score: 1

    How do we know they didn't just get /.ed? With all the publicity it's not that far fetched.

    --
    An SQL query goes to a bar, walks up to a table and asks, "Mind if I join you?"
  35. The most effective weapon by ThatsNotPudding · · Score: 1

    Would be Google dropping all Chinese and China-related websites from their search results (including AdSense if they really want to talk the talk). They could easily justify such actions by pointing to the attacks they suffered from China and declare it a lawless no-commerce zone where no one can be trusted.

  36. Nope you're wrong by ifwm · · Score: 1

    "No - that part means that the US and the southern states have no requirements to pay back Confederate debts"

    No, actually, you're totally wrong.

    "And if it did"

    It DOES.

    The fact that you don't know that, and admit as much when you say "if it did" tells me you're relying on your READING of the wording, which means exactly fuck all since your reading of it sucks.

    1. Re:Nope you're wrong by billstewart · · Score: 1

      If I'm reading your comment correctly, you're misreading what I was referring to with "And if it did" (which I'll admit may not be entirely clear even with context, much less without.) The "if it did" refers to "if Congress did cancel the US's debt", not "if the phrase in the Constitution meant _x_". Congress has not yet canceled the US's debts, and if it did, they'd have serious trouble borrowing more.

      Are you contending that the US government and the Southern States had the legal obligation to pay back Confederate debts?

      --

      Bill Stewart
      New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks