Craig was on with Jim Polito. Today, they discussed the latest goings on with Huawei and China tech manufacturing, the unprecedented actions by the NSA about the latest Microsoft vulnerability and Russia hacking and our response.
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Week After Week Vulnerability After Vulnerability
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Do you have a Chinese smartphone? Huawei is the 2nd largest smartphone manufacturer in the world, but they rely heavily on U.S. tech for their production. President Trump said enough.
Below is a rush transcript of this segment, it might contain errors.
Airing date: 06/18/2019
Security Summer, NSA Warning on Microsoft Vulnerability, Russia Hackers, China technology issues
Craig Peterson Hey, good morning, everybody. Craig Peterson here, I guess I'm committed now. Yes, I am going to do a summer security summit. You're going to hear why the security summer summit is essential. We're getting closer to having to do it, now. I was on with Jim Polito this morning. We discussed some of the problems currently inherent in our relationship with China, and what does that mean to our military to our defense. What's China doing right now? What's Russia doing right now? I also talked about real-world stats from this week that I have seen. And what those mean? So, you know, you can listen, and you can hear it, I think this is one of the best segments I've ever done. So, if you've ever liked my show, you're going to love this today. We're going to solve a few of your problems as well. So, here we go with Jim Polito.
Jim Polito He is the man the myth, the legend, the Tech Talk guru and our good friend Craig Peterson. Good morning, sir.
Craig Peterson Good morning, man. Have you seen Huawei stuff? Are they in trouble or what?
Jim Polito I love that you say why way. And no one knows how to spell it. Being the massive Chinese communications company, Huawei? And it's spelled with an A. Don't ask me why. Yes, I have. And I'm anxious. I just read that. Is it the F 35. fighter, Jeff? That had one of the circuit boards in it made by a Chinese company? I don't think I like that.
Craig Peterson Yeah, we've had some issues with those before. Yeah, we have the F 35? A, B and C are amazing aircraft, by the way, they kind of nailed it. Did you see, by the way, Turkey, it looks like we're not going to ship them any more military gear? And Poland wants some of our f 35's. There is some very cool stuff, Right? Yeah. Here's the problem and we've had them before, we had some upgrades made to some of our older fighter jets. And they required a new processor board. So, the software was mainly the same. They just wanted the more modern, faster chips. It's like, you might be running a new version of a piece of hardware and still running Windows 10, or Mac OS, for instance. We got these boards in, and thank goodness, we did some in-depth testing on them. Why? Well, it turned out that China manufactured them and the chips had some designed and embedded software to allow a third party, get some information and possibly even take over our fighter jets. So I'm glad that this whole thing is going on with President Trump and China, where we're now putting these tariffs on. We now have manufacturers, U.S. manufacturers who have already moved some of their manufacturing out of China, China. Yeah. Some of its back in the states and Apple is beginning to make some of their gear now in Texas, from soup to nuts.
Jim Polito I don't have any problem with that. So, what's Huawei doing now?
Craig Peterson Well, Huawei, of course, came out and said, Hey, listen, there's no link between the Chinese government and us. Just because we're socialists and the government owns us, and we're part of the People's Liberation Army, that doesn't mean you shouldn't like us. So, they're saying there's no link. Well, you know we have banned, Huawei from getting access to any U.S. technology. Google's cut them off from Android, chip manufacturers have cut them off from their chips, etc., etc. Now they are admitting, Well, maybe just maybe, our revenues are going to be down a bit, perhaps $4 billion. This year?
Jim Polito Couldn't happen to a more helpful bunch of guys. No, look, Here's the deal. I don't mind trading with anyone. Part of the reason that we keep our automobile industry, alive and well in this country, is that during World War Two, and we had to mass produce, aircraft, tanks, all those other vehicles. We took all those car factories, and you ask anybody who's a serious car collector, and say, hey, yeah, I want a car. I want a G.M. from 1943. Sorry, no such thing. That's because they were putting out B-17 or something else in that plant. Same thing with Ford. But I worry that Craig, you know, we do a lot of that production for electronics and gadgets overseas. Isn't that going to be the same and the next war as a factory that built cars in World War Two?
Craig Peterson Well, there are a couple of interesting points here. One, you're right. And here's why. We've got for instance, of you know, the whole Clinton selling our uranium to Russia, right? If we go to war, forget about it. We're not there. We're going to seize that just like we if you buy a Bayer aspirin, right. The whole Bayer company was taken over by the United States in World War Two. TaDa it is a U.S. company right, so there's that side of it. On the other hand, when it comes to making chips, you have foundries that have to grow these crystals. It's a fantastically exciting process. Right, here in the northeast, right where we're at right now, digital equipment corporation used to have a foundry, here. A bunch of Texas Instruments, a bunch of different companies all had foundry plants, and they were growing and making their chips. What came of those them when those buildings went for sale? They destroyed them before the premises got sold. We didn't want someone else to get a hold of the technology on how they grew the chips and how they did all of this, right? We have almost nothing left here in the United States. Intel, yes, they're making some stuff here. AMD is making some here, and other people are. If, for instance, we went to war, would we need to wonder if our f35 has the U.S. made in control technology? We could, but the problem is kind of what you just outlined. You won't be able to find a chip to put into your computers like you couldn't find your G.M. car during the war. You won't be able to get chips for consumer use, etc. We have a limited capacity to make these things and what capability we do have, would go entirely towards the war effort. But remember what Putin said, he said, the next war is going to be over ones and zeros. Yeah, it is going to be a cyber war. What is one of the best ways for cyberwar, then to maybe infiltrate my boot block with an infiltrated Chinese plan. Or, of course, China is already doing things against us coming against us and sending us poorly designed circuit boards. Boards that are guaranteed to fail. Boards that are designed to collapse once the jet takes a hit from a microwave beam, let's say, it's enough for that chip to fail, as it isn't adequately protected. They design these things that way. Anyway, we have got some issues here. But I've got to say good news. Apple is very upset with our friends at Intel because they've messed up some of Apple's production abilities, they want to come up with new equipment, Intel's been slow, everybody else is faster now. I predict by the end of this year that Apple is going to have a low-end laptop that does not rely on anything except U.S. designed and produced Apple chips, entirely, including the central processing unit. Excellent news, I think overall, for the U.S. and our economy and, and for our, hopefully never, future war footing.
Jim Polito We're talking with our good friend, Craig Peterson, at the end of this segment, we're going to give you a number. And that number. Will, if you text my name to it will connect you with Craig. You'll be able to get this information. A lot of other excellent information. Standard data and text rates apply. Craig, I want to ask you, It came out this week, that there that the United States was hacking into Russian power grids. And you know, there were those, the Trump administration rather upset that some of this news got out. Then that, you know, became the story? Well, maybe Trump wasn't told because they didn't want him to know, we might have shared that information. Hey, the bottom line is, Craig, from your perspective, I bet we should be hacking into their power grid because they're breaking into ours. We need to be able to show them just like we did during the Cold War, that there's mutually assured destruction. If you knock out our power grid, we will immediately knock out yours. It'll be just like we fired missiles at each other, which actually, is what prevented us from firing missiles each other, the MAD doctrine or mutually assured destruction.
Craig Peterson Yeah, this is such an interesting question. And unfortunately, only we've got a couple of minutes here. Here's how I look at this. Let me give you a statistic, a personal statistic, you know, already that what I do is I help businesses, large and small with their security. I help multinational corporations down through little doctors and dentists and distributors and manufacturers, right. So, I've been in the middle of this now for about 30 years, and just this week, I was looking at a firewall for a small company, and I was looking at their website and saw as many as five hack attempts against their website, per second. Wow. That is per a second, okay. If I can extrapolate numbers here, we're talking about Russia billions of times throughout a week or a month, trying to get into our U.S. controlled systems. And, you know, in answer to your MAD question, I think you're right. President Trump authorized our Cyber Command to start offensive operations. And that means our Cyber Command is now doing what everybody else has been doing for 10-plus years, look at what happened with Sony and North Korean hacking. We were sitting on the sideline. I'm glad to hear we're getting offensive. I'm not surprised in the least that we were into the Russian power grid. Poor little Putin over there. I am getting a little teared up, you know, heaven forbid, he's getting hacked. I have seen evidence of this forever, China and Russia. But I have to tell you this, looking at these stats, with my customers getting nailed, with millions of attacks. Russia and Putin are actively coming after us, actively pounding us, looking for ways to get in. Think of that, people, they are beating everything all the way around, not just as a gate, but on all the walls, looking for doors, the windows, everything,
Craig Peterson That's what they're doing right now. And I, and I must remind everyone, that is is okay, it's fine. If you don't use me as your computer security company. I get it. Okay. The NSA did something unprecedented. They warned us, the National Security Agency - our hackers in chief, if you will, that there is another major, huge, huge security hole in Windows, I mean, huge. We could see the whole world's computers go down again, as we did a year and a half ago, almost two years ago. The reason that that could happen is that people and businesses haven't patched their systems. It's that simple. We're ignorant. We've got people who are saying, Well, you know, I'm scared, it didn't work last time. I don't know what to do. It's too confusing, etc., etc.
Jim, I'll tell you what I'll do for the audience here. I'm going to have a security summer summit, and It is going to be free, 100% free. We're going to get back to the brass tacks because I am seeing every one of my clients getting nailed, something awful. (not successfully but attacked none the less) I don't want that to happen to anybody here. I get texts from the audience almost every day with questions and problems. I get emails nearly every day. I don't want this to happen to anybody out there listening. Those who are listening here, you care. You're trying to do something. However, your vendors aren't taking care of you. I'm going to show you how to do it yourself. I guarantee it. I'm going to do that. Give me a few weeks to get something together. But that's going to happen this summer because we are under attack like we have never been before. All right.
Jim Polito It is why we have our tech talk guru here. Now look, text, my name to this number 855-385-5553 just text Jim, to 855-385-5553 standard data and text rates apply. You'll get all this great information. When there's valuable information like he just discussed, it'll get to you. He will not sell your name. He will not try to sell you anything. And it's an excellent service that our friend Craig Peterson offers to our listeners. Craig, thank you so much for the time, buddy. We'll talk to you next week.
Craig Peterson Take care, Jim, thank you.
Jim Polito Great session with Craig Peterson. A final word when we return. You're listening to the Jim Polito show, your safe space
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