Asymmetrical

This is a term that may elude you. This is especially true when the term is applied to warfare. A definition of asymmetrical; “is the absence of, or a violation of, a symmetry”. In warfare it represents a disproportional result from a belligerent action. Israel has one of the most powerful militaries in the world with nuclear capability. But Israel has been stymied by asymmetrical actions. A single bomber or rocket can have the psychological effect of a major military operation. The World Trade Center action resulted in the death of a dozen people in its execution. It has precipitated billions of dollars of war expenses, culture change and a thousand soldier deaths for America.

In warfare asymmetrical actions can be devastating. This is particularly true for the very powerful. America is conducting a war on peer-to-peer technology. It is even enlisting its Allies. America has spent billions of dollars to create a worldwide communication monitoring capability beyond imagination. It is accomplished by tapping into the network backbones for communication. America has also automated this monitoring and analysis capability. In tapping several thousand items to monitor is manageable, several million short duration peer-to-peer connections is not.

Peer-to-peer works by establishing a connection between two computers through a third party machine. Once the connection is established, the third party drops out. America would have to identify and tap each individual peer-to-peer connection. The capability does not exist. So America is trying to keep peer-to-peer as a technology from greatly proliferating in the world. It is an asymmetrical threat. This means a couple of thousand dollars of computer equipment can thwart a hundred billion dollar capability.

It was reported that the Pentagon security was breeched and information about the latest jet in development was obtained. This attack was through the internet. It has also been reported that the electric grid and water works have been breeched. America is not saying who is behind these efforts. However, it is suspected that China is working on a cyber attack strategy. To America this would represent an asymmetrical capability.

America increasingly finds itself in asymmetrical situations in business and industry, infra-structure, education and warfare.

Capitalism Through the Looking Glass

All economist agree, and politicians sometimes give lip service, there is a market economy axiom of “creative destruction”. The concept is simple. In the marketplace businesses have life cycles. The death of a business occurs when its value is superseded by a paradigm shift or something superior.

In the American form of Capitalism the axiom has been violated. As businesses and industries got larger they gathered political power and crafted laws to prevent the natural laws of destruction. The enacted laws perpetuate business models that are dinosaurs. The biggest culprit is the “Digital Millennium Act”. The Act bars all incumbents in the digital media field proffering revolutionary business models. The legal case involving RealNetWorks is a prime example (Google it).

In the scheme of things the record industry business model would have died long ago, as well as that of Hollywood. They would have been replaced by new businesses with different business models that reflect technology and social changes. In today’s world VCRs technology would be a none starter. The industry incumbents would argue that the risk of illegal copying was too great. Their political muscle today would made VCRs against the law in America. They were successful in doing so with Digital Audio Tap (DAP). It was a digital technology for cassette tapes.

This issue of American Capitalism has national security ramifications. The lack of this creative destruction of moving incumbents aside will result in America slipping from being the marketplace innovation engine. We have already seen that with the diverse electronic penetrations in Asia that are either barred, or technologically not available here. We do not have bullet trains (speeds over 200 miles an hour) primarily because it is not in the interest of the airline industry. We do not have a wealth of broadband services common in much of the rest of the world because faster speeds are not in the interest of Hollywood and the Record Industry. We are actively trying to kill peer-to-peer technology in the world.

But the world is changing as America buries its head. The station “France vingt-quatre” [in English France 24], the French international news channel, had an interesting segment. The channel carries segments of daily news from countries around the world. The Tiawan segment made a brief statement and did not elaborate. The news anchor said Chinese leadership was shocked. As a result of the Financial Crisis they have surpassed America as the largest market. China had not expected to do so for many years in the future. American might in the world is its market for goods and services. The military power is merely a collorary. Sooner or later America will lose the ability to force its patent laws on the rest of the world. Especially as other markets move to the fore.

America is marking time with its Capitalism. The marketplace innovation engine is moving East.