| August 23, 2013 | | | | |  | | | Latest War is a Defense Bureaucrat's Wet Dream | | | - A revealing tale of two airmen and general infantry insurance...
- The juicy details of a steamy wet dream that's become a reality...
- Plus, Josh Grasmick on the Pentagon's brand-new war, the "secret" of the attack on Pearl Harbor, the details buried in select government documents and plenty more!
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| | | | | | | Only 250 "Beta Tester" Spots Are Open...
If you want to learn how you could retire soon, I urge you to watch this video presentation before we have to pull it down. This secret proprietary strategy provides the tools you need to build real wealth in months or even weeks, instead of decades. | | | | | | | | Peter Coyne, field reporting from the front lines of the fifth domain of war...
 | | Peter Coyne | Two airmen, Jones and Davis, were assigned to the induction center, where they advised new recruits about their government benefits, especially their GI insurance. Airman Davis went right to it with an enthusiastic pitch.
"Could I have everyone from row three to row one stand up please?" he projected through the center. The men stood up.
"Men... the boys upstairs are sayin' one out of every five of us won't make it back home outside a wooden crate… that's everyone standing up in this room." There was silence.
"Do you have kids? A wife?
"You wanna go out there... into the fray, knowing if something happens to you, they'll have nothin'?
"Men, it's your duty… GI insurance will give you the peace of mind to go out there and get the job done right."
Capt. Smith, the supervisor, was impressed. The men were signing up... some of them were white as a bleached sheet. Airman Davis' success rate was 40%! The goal had been 30%
But Capt. Smith couldn't help by glance over at Airman Jones. He noticed Jones was having a staggeringly high success rate, selling insurance to nearly 100% of the recruits he advised.
Rather than ask Jones about it, the captain stood in the back of the room and listened to his sales pitch. Jones explained the basics of the GI insurance to the new recruits, and then said:
"Guys, look… If you have GI insurance and go into battle and are killed, the government has to pay $200,000 to your beneficiaries. If you don't have GI insurance and you go into battle and get killed, the government has to pay only $6,000.
"Now," he concluded, "which group do you think they are going to send into battle first?"
Hah.
And we bet that was before the spending cuts… Decisions, decisions.
The Pentagon is in a pickle. It has expensive tastes: war, tomorrow's gadgets, employing nearly half a million people and a first-rate military with all the bells, whistles and toys. It even likes its cost-cutting initiatives to be expensive...
But those things cost money, and there's no more moolah. So it's forced to prioritize.
Ugh. If only there were some newfangled type of warfare. Something cheaper, cleaner, less taboo… but that posed more of a threat than traditional types of warfare. Then the Pentagon could keep its funding... maybe even increase it.
It would be a DoD bureaucrat's wet dream.
Hrmm... huh?… What's this? "DCAF Horizon 2015 Working Paper on Cyberwarfare."
(Flips open the report's cover.)
Hmm… it says here:
"More frequently, cyberwar is presented as a new kind of war that is cheaper, cleaner, with less or no bloodshed, and less risky for an attacker than other forms of armed conflict. This seems to make cyberwar attractive."
No way.
Attractive war?
…Yahtzee!
"Welcome to the fifth domain of war" interjects our mil-tech maven Byron King.
"The latest battlefield after land, sea, air and space. War isn't strictly kinetic anymore. The limit of an army's reach is no longer the range of its biggest gun."
"Iran's conventional military doesn't rank in the world's top 10," says Byron. "Despite having more than a million men under arms and several thousand armored fighting vehicles and combat aircraft, it's doubtful that Iran could survive a conventional war."
But that's a moot point. According to Byron, a recent study by the Atlantic Council classified Iran as a tier-three cyber military. That means it can cause significant harm to civilian networks within the U.S., if not in the government.
Now some Iranian in his PJs on his laptop and jamming out to Spotify and sipping kashk, can wreak havoc stateside… it doesn't matter how mighty our warships are.
No wonder the Pentagon is soiling itself. We would be too if we were spending half a trillion dollars each year... only to wake up one day and find the rules had been rewritten.
The Pentagon is ready to throw a Hail Mary -- it will spend $16.1 billion implementing what's called "Project X." Byron says he uncovered it while sifting through recently declassified documents. In short, Byron's identified seven defense contractors that stand to score a boatload of this contract money... some as soon as Sept. 1.
This is a first for us. And we're not sure where the lines are on this one. So due to the unclassified, but very delicate nature of the information, we have to ask you to sign a confidentiality agreement not to spread this information around.
We know, we know… it's very un-Daily Reckoning-like. But we hope you'll understand that we want to play it safe.
No personal info's required. Simply read the agreement that you'll keep the info hush-hush, type in your initials and we'll redirect you to Byron's research and seven picks. You can sign your confidentiality agreement right here.
In today's episode of The Daily Reckoning, our good friend and Tomorrow in Review editor Josh Grasmick retraces the ascent of the fifth domain of war. Josh deftly plucks one of America's most infamous military events to show you why the coming Pentagon spending spree could make you very rich (and sooner than you think).
Read on below...
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| | | | Declassified: The Fifth Domain of War | | | | by Josh Grasmick | | | Military technology funding is a modern human development. But it has a long enough history for us to clearly forecast how cyberwarfare will play out in the future.
Back in the old days, mil-tech came about through independent, craft-based work. Individuals would invent first and seek patronage later. For example, Galileo attempted to promote the telescope as a military instrument to the Republic of Venice. The venture proved unsuccessful, but the wealthy and powerful Medici family did support his efforts to use the revolutionary new technology for astronomical studies.
Gunpowder was used in seventh-century China in search for an elixir of immortality, but wouldn't be employed in Western warfare for seven more centuries. Gunpowder had little impact on how battles were waged. Then in the 15th-century, artillery, and in the 16th-century, firearms, reshaped the organization of troops on the field.
First were the feared Tercio formations of the Spanish Empire. Eventually, they were replaced by regiment formations. Armed regiments not only brought more fire to bear, but were less vulnerable to artillery.
Modern weapons like repeating rifles, smokeless powder, long-range artillery and explosives wouldn't become the norm until World War I. During the Great War, military-funded technology indisputably became an indispensable feature of conventional warfare.
Believe it or not, some armies actually used cavalry in the beginning of WWI (and WWII, for that matter). The advent of the machine gun made that unfashionable (not to mention deadly). Machine guns forced a reversal of the traditional advantage of swift-moving offensive tactics to the necessity of trench warfare.
Soon after, national militaries would turn to scientists and engineers for even newer technologies. Poison gas, nitrates and advanced explosives. WWI is remembered as "the chemists' war." The scientific method was applied to weapons development. It set opposing sides on a scientific race to develop more potent chemicals and device countermeasures. And by chance, it impacted many other fields, like wireless communications.
That's when the Air Force became an independent service branch from the Army. The Air Force established its own research and development system, becoming what is today one of the most technologically advanced organizations in the world.
Then came the Second World War. The science of WWI paled in comparison. Physics, electronics, radar, cryptography, meteorology, rocket science, aerospace engineering, materials science and biological sciences were all utilized. And let's not forget the secret nuclear research in the United States Manhattan Project that brought the war to an abrupt end. Ever since, technology has been the apple of military leaders' eyes. Advancing technology became the critical element for military success. It also sustained the Cold War and space race.
Today, we stand on the forefront of military technology cut from a different cloth. In 2009, a U.S. military command center for cyberspace operations was establishment. Its name is USCYBERCOM, and it's receiving heavy funding both on and off the radar.
 The 21st-century battlefield: USCYBERCOM
There's an important historical parallel.
The U.S. emerged from the Great Depression -- during which the military was so undersupplied that troops performed drills with toy guns and wooden tanks -- as a military superpower. The country was completely unprepared for World War II. The attack on Pearl Harbor forced U.S. military and private enterprise to scramble resources and cooperate en masse.
But by 1944, three years after Pearl Harbor, the country was producing 96,000 a year. As the "arsenal of democracy," the U.S. became a chief exporter of Allied weapons and war materials.
What happened?
Civilian employment jumped by 20%, and the gross national product — or all the goods and services produced in the country — doubled from 1939-1945. Simply put, well-positioned companies and individuals made fortunes. I believe the same fortune-making opportunity is staring us right in the face today.
Yes, in hindsight, we have 20/20 vision… but rest assured a modern-day mobilization is happening now, even if it's going unnoticed by most. More on that in a second...
| | | | | | | If You Own A Firearm, You Must See This
If you own a gun, have ever applied for a firearm license, or are thinking about purchasing a weapon… | | | | | |
In 2007, Estonia's financial system and government resources were incapacitated by Russian hackers. They used "enslaved" botnet computers from 175 countries to coordinate the attack.The damage lasted for nearly three weeks.
This cyberattack not only turned Estonia's entire IT industry into the country's digital militia, but it also made developed nations sit up and take notice. Of course, it's easy to think that Estonia's infrastructure is easy pickings. America easily has the resources to deter a cyberattack, right? Well, no. That's not necessarily the case.
The U.S. is no stranger to waging cyberwar. The U.S. and Israel created the Stuxnet worm, the most sophisticated piece of malware ever designed. Its reported purpose was to deter Iran from progressing in their nuclear capabilities.
Unfortunately, Stuxnet has experienced blowback. The software was designed to propagate virally and spread beyond its intended target and across the Internet at large. But the computer worm broke out of Iran's nuclear facilities, perhaps through an infected laptop that was connected to the Internet. Since then, it's infected private computers and networks. It's also spawned imitators who have exploited its code base to design new attacks.
Our resident technology expert Byron King calls this new cyberwar front the "fifth domain of war." The largest target of this new war is U.S. itself, and because this war is waged through computers, the playing field is leveled. The laptop is mightier than the army, you could say.
In May, U.S. intelligence sources confirmed a cyberintrusion into one of the most sensitive databases of the nation's physical infrastructure — the U.S. Army Corps of Engineers' National Inventory of Dams (NID).
This database details all the vulnerabilities of every major dam in the country — about 8,100 dams across our nation's waterways. Imagine for a minute a cyberattack on the network of a single major dam. Then malicious code could be planted inside — code that could later open the floodgates or lock them in place. Within minutes, the valley below could flood, with unimaginable consequences, including loss of property and life.
Here's the rub. The intrusion at the NID was discovered in May, but intelligence reports show that the database was actually penetrated in January, five months before it was discovered. Further investigation suggests that this intrusion came from unauthorized users based in China. Of course, this raises new fears, some real and some imagined. Both of which require lots and lots of Pentagon funding. For example, officials are now concerned that China may be preparing to conduct a future cyberattack on the national electrical power grid.
President Obama's former cybersecurity coordinator, Howard Schmidt, said there was evidence that foreign governments were taking kickbacks from local cybercriminals that target U.S. corporations. It's a "quid pro pro for letting them operate."
These are bogeymen the Congress can't ignore. What politician wants to be responsible for the first cyberdisaster on American soil? The gravy train is about to leave the station.
So what's your investment angle? Well, don't load up on any old company that's involved in cybersecurity technology. Many players in this space know that D.C.'s about to start a spending frenzy -- $23 billion, to be exact. They just want to take a quick bite out of it.
Let them. If you keep a cool head and get in on one of the movers and shakers before they become titan-sized federal contractors, you can walk away with a small fortune.
For starters, try to pin down the big players. Our inside man Byron King has a short list of plays that fit the bill. Here's the play. The Pentagon has created what it calls "Project X" (something out of James Bond, I know…). The mission is to create a cyberwarfare division that's second to none. And in order to accomplish it, a select few private contractors are going to be showered in contract money.
If you know where to look (Byron does), the most important details on where that money is are buried deep in government documents. Here's Byron's takeaway: For every $1 invested, you have the chance to make $550.
I was skeptical at first. But then I saw where he got the numbers from and I was amazed. But we hope you'll understand that we're handling sensitive information here. Byron doesn't want to burn his contacts. So just to play it safe, Byron asked us to have you to sign a confidentiality agreement before you review his research.
The form doesn't obligate you to do a thing -- simply agree to keep the info under your hat and enter your initials and you'll be taken to a Web page where Byron will share his research -- including the seven companies he expects to skyrocket, perhaps as soon as the first wave of "Plan X" contracts is issued on Sept. 1. Simply initial the agreement right here to get started.
Regards,
Josh Grasmick
for The Daily Reckoning
Note to PRO Subscribers: Read below for our own Ryan O'Connor's perfect play to leverage the fifth domain of war as it heats up. Ryan's PRO stock pick is set to pop from the coming flow of Pentagon contract money. And in the meantime, it pays you a 3% dividend. Read on below...
| | | | | | |  Josh Grasmick is managing editor of Tomorrow in Review and associate editor of Technology Profits Confidential and Breakthrough Technology Alert. | | | | | | | | | BE SURE TO ADD dr@dailyreckoning.com to your address book.
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