When I moved to Charlottesville (VA), I found out that I was wrong about a whole bunch of things.  No, not about Southern mentality, as it radically differs from that of Northerners. (But, I’m not making light of that at all!) Instead, it was that I found out that Thomas Jefferson was not dead- instead, he was alive and still the mayor of the place!

Everything went through the filter of “What would Tom do?”.  So, by now- having lived in that area for more than a decade, I’m used to it- even though I’ve been gone for nigh a quarter-century.  And, I am appalled that our country is not considering those concepts right now- What would Tom do?

Thomas Jefferson first considered the Barbary “states” piracy when he was the Ambassador to France (long before there was any American President).  And, when these terrorists confronted his presidency, he refused to pay the stipulated bribe of 10% of the US Budget ($ 1 million).  We still recall his policy “millions for defense, not one cent for tribute”.  We glorify the actions he approved with the Marine Hymn, “From the Halls of Montezuma to the shores of Tripoli”.

But, we are still beholden to piracy.  And, I’m extending it way beyond those who use the failed states of Yemen, Somalia, et. al. to threaten the open seas.  Because it’s more than our oil shipments and cargo ships that traverse the open seas.  Our commerce today relies upon the Internet, the “open seas” of eMail, document transfer, websites, and the like. And, just like no private company in the 1800’s could take on the Barbary pirates, we still have no private company that can tackle the internet piracy that flourishes today.

I’ve written that our power grid, transportation network, and back-rooms of Wall Street are at risk.  Leon Panetta, the outgoing (anytime, now) Secretary of Defense used the term “cyber Pearl Harbor”.  Because, we know that Google, Yahoo, Lockheed Martin, Northrop Grumman, the Pentagon, Aramco, the New York Times, the Wall Street Journal, the US Chamber of Commerce, and our firm (at least we are in good- or bad- company) have been attacked by cyber-piracy.

Russia wages cyberwar against Estonia and Georgia.  Someone (US? Israel?) wages war against the nuclear forays of Iran.

The National Intelligence Estimate identifies Russia, Israel, France, and China as hackers seeking economic intelligence.  It’s no longer the James Bonds or the KGB  that are eliciting such actions.  No, most often when America is the target, it’s China that is permeating our networks, seeking out data for its economic gain (and to stifle political opposition).

Oh, China denies it.  Like any good spy.  Mandiant Intelligence published a 60 page report detailing how the Chinese Army is attacking, penetrating, and devouring our data systems.

But, this is not new.  Since the early 80’s (last century) China has been employing means (any means, by the way) to acquire Western Technology.  And, it’s not just the government  intelligence services or armed forces, but private companies, that exploit family ties to China or the need for cash to have folks yield insider access to American corporations.  Via eMail, USB (thumb) drives, or direct transfer.  (US Report here.)

Admittedly, most of the efforts by China were aimed at military hardware and software.  But, they’ve been branching out, as you can see by the laundry list quoted above. And, we are not talking about chump change- cyberwar/espionage is costing us between $ 25 and $ 100 billions- about 0.1-0.5% of our gross domestic product (GDP) at a minimum- and growing.

But, Congress refused to pass laws mandating security procedures.  (Are you surprised?)  Because it would cost too much money. Instead, they (it was almost completely the Republican party members) want litigation waivers, when a company acknowledges it has been hacked.  (See a pattern there yet?)

Which is why President Obama issued an executive order- for voluntary standards that cover critical private-sector computer systems (those grids I mentioned above).  No regulations were part of that authority.  No regulatory or “police-type” authorities.  Instead, we hope that the Commerce Department can create a “framework” of standards within the year. And, only apply these new rules to those industry sectors that are under federal regulation- electrical power grids, banking entities, etc. And, only the critical functions- that means trading systems and not the consumer banking websites (like the ones at Capital One, PNC Bank, BBT) that were taken down by hackers.

I’m sure the cyber-pirates are shaking in their boots!

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