smellsofbikes writes: This week's New Yorker magazine has an investigative essay by Seymour Hersh about the USA and its part in cyber-warfare that makes for interesting reading. Hersh talks about the financial incentives behind many of the people currently pushing for increased US spending on supposed solutions to network vulnerabilities and the fine and largely ignored distinction between espionage and warfare. Two quotes that particularly stood out: one interviewee said "Current Chinese officials have told me that [they're] not going to attack Wall streat, because [they] basically own it", and Whitfield Diffie, on encryption, "I'm not convinced that lack of encryption is the primary problem [of vulnerability to network attack]. The problem with the Internet is that it's meant for communication among non-friends." The article also has some interesting details on the Chinese disassembly and reverse-engineering of a Lockheed P-3 Orion filled with espionage and eavesdropping hardware that was forced to land in China after a midair collision.