American Weakness Invites Chinese Cyber Attacks


 

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So the last few days have seen overwhelming evidence that China is the origin point for an obscene number of sophisticated cyber attacks against targets in the US.  The fact that this is really nothing new begs the question why does China allow this to go on?  The answer is simple really.  First, it’s very lucrative for the Chinese to steal data that US companies have spent years researching.  Second, they keep doing it because they have made the cold calculation that what ever penalty they might incur (so far that has only amounted in some short-term bad press) is not a strong enough reason to stop.  In essence American weakness in the form of either no response or only complaining about it in the press has brought this problem from being one of an annoyance to the level of legitimate national security issue.  What should be of most concern to the average American is that the US defense establishment seems so in capable of handling this problem.  The fact that the US spends more money on defense than the next 10 nations combined (which if we get our money’s worth I’m generally in favor of) yet still hasn’t been able to craft a proper response to this issue should be of the gravest concern.  This is one of those situations in life where the bully (China) will not stop unless we punch them back in the nose.  With this in mind we should plan on our own massive cyber counter attack the next time the Chinese our caught red-handed for its pretty obvious that they won’t stop until they realize the that the cost is too high.

In closing, one other thing to keep in mind is that these cyber attacks are literally a dry run for what the opening phase of a stand-off with China would be like.  For the Chinese have not only been caught stealing information they have also been caught playing around with critical US infrastructure like our electrical grid.  There is only one reason to be doing something like that and that is to develop the capability to deliver a knock out blow if tensions ever heated up in the future.  With this in mind clearly the time for the US to address this challenge is now.  Because it is not just cyber attacks the Chinese have been perfecting.  They have also flooded the US military’s supply chain with inferior, counterfeit, Chinese parts, and developed new Chinese weapon systems like the “Carrier Killer Missile” it is obvious that the China is planning for a future confrontation with America.  The only question is whether or not America will even be up to the challenge.

http://hosted.ap.org/dynamic/stories/C/CHINA_HACKING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-02-19-19-28-03

World Military Spending — Global Issues

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Facebook To Make Over 1 Billion Dollars But Will Not Pay Any Federal Taxes


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In what can only be described as an injustice to the American tax payer Facebook has released its financial statement and has admitted that even though the company will make roughly 1.4 billion dollars  in pre tax profit they mysteriously will not owe the federal government anything.  How is this possible is the obvious question and the answer is of course accounting gimmicks.  Facebook appears to accomplish this in two ways.  First, the company is allowed to bank losses from prior years.  In other words, lets say Facebook hypothetically had a loss of 400 million in 2011.  Then the following year they made 1.4 billion.  They would then be able to subtract that loss in 2011 from their pre tax profit in 2012.  The second way is that Facebook does this is explained below.

” Companies like Facebook are allowed to treat the cost of non-cash compensation, such as stock options, as an expense that reduces profits, essentially the way they treat cash compensation such as salaries.

The difference is that Facebook—unlike, say, General Motors (GM)—relies heavily on stock options and restricted stock units as a form of compensation. It paid out a lot during its years as a private company that it must now recognize on its income statement and balance sheet”

The original story goes on to mention that Facebook will not only pay no federal tax on its billion dollar plus profit but will in fact receive over 4oo million dollars in tax refunds.  To say this is absurd is an understatement.  I guess this gives us an idea why our government is broke.  If you think this unfair hit the like button, lol.

http://www.businessweek.com/articles/2013-02-15/facebook-gets-a-multi-billion-dollar-tax-break