-----Original Message-----
From: dewayne-...@warpspeed.com [mailto:dewayne-...@warpspeed.com] On Behalf
Of Dewayne Hendricks
Sent: Friday, August 30, 2013 4:30 AM
To: Multiple recipients of Dewayne-Net
Subject: [Dewayne-Net] New Snowden Leak Reports 'Groundbreaking' N

New Snowden Leak Reports 'Groundbreaking' NSA Crypto-Cracking By KEVIN
POULSEN
08.29.13
<http://www.wired.com/threatlevel/2013/08/black-budget/>

The latest published leak from NSA whistleblower Edward Snowden lays bare
classified details of the U.S. government's $52.6 billion intelligence
budget, and makes the first reference in any of the Snowden documents to a
"groundbreaking" U.S. encryption-breaking effort targeted squarely at
internet traffic.

Snowden, currently living in Russia under a one-year grant of asylum, passed
The Washington Postthe 178-page intelligence community budget request for
fiscal year 2013. Among the surprises reported by Post writers Barton
Gellman and Greg Miller is that the CIA receives more money than the NSA:
$14.7 billion for the CIA, versus $10.8 billion for the NSA. Until this
morning it's generally been believed that the geeky NSA, with its basements
full of supercomputers, dwarfed its human-oriented counterparts.

The Post published only 43 pages from the document, consisting of charts,
tables and a 5-page summary written by Director of National Intelligence
James Clapper. The Post said it withheld the rest, and kept some information
out of its reporting, in consultation with the Obama administration to
protect U.S. intelligence sources and methods.

One of those methods, though, is hinted at in the Clapper summary - and it's
interesting. Clapper briefly notes some programs the intelligence agencies
are closing or scaling back, as well as those they're pouring additional
funds into. Overhead imagery captured by spy satellites was slated for
reduction, for example, while SIGINT, the electronic spying that's been the
focus of the Snowden leaks, got a fresh infusion.

"Also," Clapper writes in a line marked "top secret," "we are investing in
groundbreaking cryptanalytic capabilities to defeat adversarial cryptography
and exploit internet traffic."

The Post's article doesn't detail the "groundbreaking cryptanalytic
capabilities" Clapper mentions, and there's no elaboration in the portion of
the document published by the paper. But the document shows that 21 percent
of the intelligence budget - around $11 billion - is dedicated to the
Consolidated Cryptologic Program that staffs 35,000 employees in the NSA and
the armed forces.

In a WIRED story in March of last year - the pre-Snowden era of NSA
reporting - James Bamford reported that the NSA secretly made some sort of
"enormous breakthrough" in cryptanalysis several years earlier.

Previous Snowden leaks have documented the NSA and British intelligence's
sniffing of raw internet traffic. But information on the NSA's efforts to
crack the encrypted portion of that traffic - which would include much of
the email bouncing around the net - has remained absent; conspicuously so,
given the NSA's history as world-class codebreakers. The leaked budget
document is the first published Snowden leak to touch upon the question of
how safe routinely encrypted traffic is from cutting-edge nation-state
spying.

[snip]

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