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Tuesday, June 28, 2011

The new anarchists - Are Hackers The 21st Century’s First Revolutionary Movement?






Hackers’ efforts to fight the power may lead to a backlash


Peter Steiner’s now famous cartoon for the New Yorker, “On the Internet, nobody knows you’re a dog,” first appeared in 1993 but didn’t, according to the artist, receive much attention until the Internet became more familiar to people. It was a rare instance of a cartoon doing what it’s not supposed to do, gaining relevance over time as people understand just how pithily it captured an essential truth. This, surely, elevates it to one of the most important cartoons in history (Steiner told the New York Times in 2000 that he felt a little like the person who invented the smiley face).

History has shown Steiner’s vision to be much too benign, and the cyber events of the past year — hacking and theft on the scale of 18th-century piracy — demand an update, perhaps along the lines of, “On the Internet, no one knows you’re China.” But even that may have been spoiled after the events of this week, which saw the appearance of an alliance between two groups of clandestine hackers, Anonymous and LulzSec, both of which have been implicated in numerous high profile security breaches.

In a statement announcing “Operation Anti-Security,” LulzSec declared that “the government and white hat security terrorists across the world continue to dominate and control our Internet ocean … we encourage any vessel, large or small, to open fire on any government or agency that crosses their path.”



This was accompanied by “an open letter to citizens of the United States of America” on Anonymous’ news site, which sounded uncannily tea party-ish in its call on Americans to “wake up” and take back their liberties from a corrupt government.

To judge from the reaction of some information security experts, the alliance was on the scale of Germany teaming up with Japan during World War II. Except by the end of the week, LulzSec was apparently calling it quits, alarmed, perhaps, by the arrest of an alleged member in Britain and the attempts by other hackers to expose their identities.

With subterfuge as the name of the info-war game, the virtual equivalent of smoke and mirrors makes it difficult to say what’s true and what might be misdirection, especially with organizations that are leaderless and decentralized. But here’s the upshot of this recent cycle of cyber shenanigans: On the Internet, one person’s freedom fighter is another’s terrorist.

Technological prowess has given hackers an extraordinary sense of political entitlement. It’s easy to theorize about how the world should work if your only engagement with it is through a computer and you’re in your teens or 20s. But weaponize your theories through hacking and you’re all but certain to lose the public, who will demand ever more stringent crackdowns and restrictive laws that, in turn, will push some hackers to even more extreme responses.

At the same time, the hacker collectives do possess a technological prowess that is beyond the imagining of most people, and with a deep understanding of how technology works, there is the privilege of insight. The explosive development of the Web raises serious, complex questions about ownership, privacy and freedom. And if these are ignored by politicians, or dominated by commercial interests, or dismissed by a mainstream media averse to complexity, then hacker frustrations will turn to direct action as a way of getting attention.

This is, after all, what non-governmental organizations and other advocacy groups do on a much more limited scale to promote their interests. (Still, it’s one thing to disrupt traffic with a protest march; it’s another to disrupt Internet traffic with a denial-of-service attack.)

The question is what kind of politics is this technology empowering? If you don’t acknowledge genuine concerns or even good faith in the info security community, if government is irredeemably corrupt, then you haven’t just abandoned politics, you’re anti-political; all that’s left is a war of attrition.

Oddly, the most useful insights on hacker culture may come from a re-engagement with the politics of anarchism, as noted in a review of new books on the subject in the summer issue of BookForum by Columbia historian Mark Mazower. While Mazower makes a mistake, in my view, in seeing revolutionary politics as still being mediated through academic leftism rather than through technology, his point — that the anarchist theories of the 19th century are more relevant than Marx to explain the present political conditions — is timely.

Anarchism’s combination of individual commitment, ethical universalism and deep suspicion of the state as a political actor mark it out as the ideology of our times,” writes Mazower, before ending his piece with the claim that “we are all anarchists now.”

But we’re not. We are disenfranchised because today’s anarchism belongs to the hackers — and they have the means to make much better bombs. Whether the alliance between LulzSec and Anonymous was ever real or not, it defines the new ideological reality of our times: the network as an emerging anarchic state actor. Whether we like it or not, this politics of technology forces us toward libertarianism, to maximal freedom, because the alternatives — anarchy and control — are dancing toward disaster.

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Monday, June 27, 2011

U.S. Debt Default Might Have ‘Catastrophic’ !






Pacific Investment Management Co. LLC Chief Executive Officer Mohamed El-Erian said a short-term default by the U.S. on its debt might have “catastrophic” legal consequences.


“We would be in the land of the unpredictable” if lawmakers fail to reach an agreement to raise the $14.3 trillion debt ceiling and the U.S. misses a payment “simply because of the technical linkages,” El-Erian said in an interview on CNN’s “Fareed Zakaria GPS” program, scheduled to air today.

U.S. lawmakers are seeking a path to increasing the debt limit and to cutting at least $1 trillion from the long-term deficit before an Aug. 2 deadline. President Barack Obama plans to hold separate meetings at the White House June 27 with Senate leaders Nevada Democrat Harry Reid and Kentucky Republican Mitch McConnell in an effort to break an impasse that scuttled a seven-week negotiating effort led by Vice President Joe Biden.

“My advice is please try and get together and solve this issue in the context of a medium-term reform package,” El-Erian said.

“If you can’t do that and you’re going to kick the can down the road, kick the can rather than face something that could be catastrophic in terms of legal contracts being triggered.”



Pimco, the world’s biggest manager of bond funds, sees more value in non-U.S. government bonds than U.S. Treasuries as the Federal Reserve prepares to end its $600 billion bond-repurchase program this month, El-Erian said. Pimco, of Newport Beach, California, is a unit of the Munich-based insurer Allianz SE. (ALV)
 
“A basic rule as an investor is don’t buy something unless you know who else is going to be buying,” he said. “So when we look at Treasuries, we see the big buyer stepping away from the market, for certain. And we ask the question, who else is going to be buying at these levels, and we can’t identify another buyer of the size of the Fed.”

El-Erian said the U.S. fiscal problems are dwarfed by those of Greece, whose debt reached 143 percent of gross domestic product last year.

“It is inevitable that Greece would have to restructure its debt,” he said. “Greece has two problems: it has too much debt and it cannot grow. And until these problems are solved, more and more of Europe is going to become contaminated.”

Europe has been treating Greece “not as a solvency issue, but as a liquidity problem,” El-Erian said. “We had a massive bailout a year ago in Greece, massive. A year later, every single indicator in Greece is worse off.”

-- With assistance from Heidi Przybyla, Julianna Goldman, Cheyenne Hopkins and Ian Katz in Washington. Editors: Ann Hughey, Christian Thompson.

Sunday, June 26, 2011

Technology can work both ways, problems and solutions





Contradictheory By Dzof Azmi

TECHNOLOGY is about making things easy. You want to send a message, click – that’s it. You want to download a song, click, click, click. A bit more difficult, but that’s it. You want to attack a website – well, that’s several clicks away, too.

In fact, attacking a website is now as easy as downloading a script and clicking on it. During the recent cyber attacks on 51 Malaysian Government websites, it was suggested that most of them were victims of such “script kiddies”.

The raids on the government websites were said to be in response to the blocking of 10 file-sharing sites on the Internet. The Malaysian Communications and Multimedia Commission (MCMC), which blocked the websites, alleged that it did so because the websites were violating the Copyright Act. They made available content which had been copied without permission, for download for free.

I have written on the subject of downloading content for free from the Internet before. My conclusion then was that if it’s Malaysian entertainment content, it is good if more people can access it as easily as possible.

Admittedly, if you have to do so by breaking the law, that is another thing altogether.

Yet, I believe the steps taken by the MCMC in response to pleas by copyright content owners is a misstep. If you are trying to prevent piracy, trying to block the hosepipe that is the Internet drop by drop is not likely to succeed.

It’s a problem of supply and demand. For music, movies and TV shows, the demand for cheap or free access is high. As a result people will resort to many difficult things, including paying RM150 a month for Internet access and learning how to download content for free. Well, as I said, the Internet makes the difficult easy.

The reasoning behind blocking the websites is that it will stem supply. However, because the Internet is intrinsically designed to provide access that’s as easy and reliable as possible to content that resides on it, blocking one website will only lead people to look for another. And blocking 10 will result in 10 others taking their place.



Even if you could block all the websites, the open nature of the Net will most probably result in alternative routes. There was a time when file-sharing programmes such as Kazaa and Napster ruled the wires. When they were unceremoniously blocked and banned, people just moved on to alternatives.

The problem is that the demand is too high. So, instead of restricting supply, perhaps we should just admit the real solution lies in satisfying demand.

Although it’s a rather simplistic way of looking at the problem, this paradigm shift has proven to succeed in another, seemingly unrelated field – the war on drugs.

In the late 1980s, Switzerland’s problem with drugs was similar to that in many other countries in the world. The problem extended beyond the existence of addicts; it brought with it additional crime, be it in the form of drug pushers who looked to sell their goods illegally, or users who burgled to pay for their addiction.

This prompted the Swiss Government to embark on an aggressive programme against drugs. But instead of just trying to lock up more drug dealers, they also looked at the users. In particular, they realised that not all addicts responded well to treatment, and that their demand for “hard” drugs would remain.

So, the Swiss did the next best thing – they tried to reduce demand of illegal drugs by prescribing heroin.

In 1994, the Medical Prescription of Narcotics Programme set up clinics around Switzerland and identified hard-core users, who were then given injections of pharmaceutical-quality heroin daily, combined with medical, psychiatric, and social monitoring.

For this, the addicts paid 15 Swiss Francs or approximately US$8.50 (RM26.30) per day.

After three years, not only were participants’ health more stable, the use of illicit heroin and cocaine had dropped. And, they were more likely to have a home and get a job. Income from illegal activities dropped from 69% to 10%, and the number of offenders and offences decreased by about 60% in the first six months of treatment.

A 2004 World Health Organisation report concluded that for every dollar invested in the programme, US$12 (RM36) was saved on law enforcement, judicial and health costs. The programme is recognised to be so successful that in a 2008 referendum more than 68% of Swiss voters chose to keep it.

How does this work for illegal downloads? I’m not suggesting we have free cinemas for hard-core download addicts, but I believe that if you make it easier and cheaper to access legitimate content, it will reduce the number of illegal downloads. In short, satisfy the demand and people will not abuse the supply.

Right now, Malaysian-made movies are available almost on-demand via products like Astro First and HyppTV. For only RM15 you can watch a movie that has premiered relatively recently.

It’s a low price, but still not low enough to deter piracy. The good news is that I think the price can go down further.

In the United States, a company called Netflix allows people to view all the movies they like, whenever they want, at US$7.99 (RM24) a month. Not only is their selection wider than what our local providers are offering, the cost also works out to be lower in the long run if you are a serious movie addict.

At the end of the day, technology is just a tool that can work both ways. Instead of just using it to make it hard for lawbreakers to commit crimes, shouldn’t we also make it easy for law-abiders to get what they want?

Logic is the antithesis of emotion but mathematician-turned-scriptwriter Dzof Azmi’s theory is that people need both to make sense of life’s vagaries and contradictions.