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Several Western Govts. Ban Lenovo Equipment From Sensitive Networks
renai42 writes "If you've been in the IT industry for a while, you'll know that Lenovo's ThinkPad brand has a strong reputation with large organisations for quality, dating back to the brand's pre-2005 ownership by IBM. However, all that may be set to change with the news that the defence agencies of key Western governments such as Australia, the US, Britain, Canada and New Zealand have banned Lenovo gear from being used in sensitive areas, because of concerns that the Chinese vendor has been leaving back doors in its devices for the Chinese Government. No evidence has yet been presented to back the claims, but Lenovo remains locked out of sensitive areas of these governments. Is it fearmongering? Or is there some legitimate basis for the ban?"
Thinkpads are very popular with people who need to do their own maintenance. They use them on the ISS for that very reason. Every part is replaceable and you can download a full service manual with excellent step-by-step illustrated instructions.
Sounds like fear of the boogyman and a bit of racism are really going to hurt the US in the long run.
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SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
So I wonder which manufacturer that doesn't use Chinese components they'll use instead?
The problem is the credible fear of a lifecycle attack is sufficient to require that such hardware be avoided. There is a reasonable fear that the chinese might try something using Lenovo kit, therefore the classified networks need to avoid it. Its the same reason why Huawei networking hardware is avoided in some circles.
Of course, with the NSA now clearly off the leash, US IT equipment is now in the same position. Microsoft clearly backdoored Skype to enable easy wiretapping, the NSA is reportedly hacking foreign networks to introduce monitoring (who knows, perhaps it was the NSA responsible for the Athens Affair?), and with any US Cloud service provider subject to PRISM-style requirements, US IT infrastructure is now in the same boat that the Chinese have been struggling with for years now.
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I'll make this one easy on you
Gee thanks. I'm really glad I have you to explain this to me since I merely have a master's degree in finance and am a certified accountant with 10 years experience in global sourcing. Good thing I have smart people like you to explain how currency trading works. [/sarcasm]
Defaulting on even a small amount of debt to China would collapse this system and US and world economy would not survive the fallout
The US doesn't have to default on the debt. That was the whole point. China will get paid in due time and they have very little leverage over the US regarding when and how. China bought that much US debt because they had to, not because they particularly wanted to. The notion that China now "owns" the US, or that they could take the US to some court over the matter is just nonsense. China (probably rightly) regards US debt as a safe investment but the China is in a much more precarious position than the US even without the exercise of some fiscal nuclear option.
Seriously people, take a little time to hop on over to the US Treasury site and learn a little about US debt instruments. It isn't hard, they'll explain it all, and even sell them to you directly if you want some.
So, this is not a loan shark situation, where the US goes to China and says "Please give us some money!" and China says "Ok you can have money, and at some point, you don't know when, I'll come and collect and you don't know how much for." Rather the US auctions off securities, bonds, notes, etc, and China chooses to buy some. They are sold to the highest bidder, which in this case means the entity that bids the interest rate down the lowest.
Now some things to note about them:
1) They pay out in US dollars. They are not denoted on foreign currency, they are in US dollars, meaning they have value only if the dollar does, and their value is dependant on the dollar.
2) They pay out only after a given period. There is no provision to call in the money early. They have a defined cycle depending on what you buy. Some t-bills have a maturity date as short as a couple weeks, some bonds a maturity date as long as 30 years. They pay out the principal only when they mature, not before (bonds pay out interest every 6 months). The only way to get money early is to sell them to someone else who wants them, for a price that group is willing to pay.
3) They aren't physical things you have, they are just entries in a computer at the treasury. They are completely under the control of the US government and if you did something that allowed them to seize your assets, there is fuck all you could do to stop it.
So no, China can't come "through the courts with a small army of debt collectors." Their case would be dismissed in summary judgement and they'd be charged court costs. You can't sue the government to try and get them to pay out their treasury securities early as it is EXPLICITLY stated that they pay out only at a given time. You can't demand they pay you in another currency, as they are sold in US dollars. You can't act as though they took your money without you knowing as you had to go and bid on them.
Seriously, none of this is a big secret or complex. Go look it up. Go participate in it, if you like. Treasurydirect is the government's site for individuals to buy securities. You can participate in the auctions and buy government debt for yourself, if you wish. Just don't think you can then run down to the court house and demand the government pay you. The terms of your payment are explicit up front. If you don't like it, don't buy.